Spot gold prices are up by 1.2% to $1,121 per ounce on the COMEX today.
U.S. gold futures are rising in response to China's unexpected announcement yesterday that it was devaluing the yuan in an effort to stem the pace of the decline of its currency.
The U.S. dollar and European equities fell in response to China's announcement.
Earlier today, China set its currency's midpoint reference rate lower than yesterday's 2% devaluation, according to Reuters.
Such volatility in the currency market has prompted investors to seek stability in assets that are considered safer, such as gold, which is causing prices to increase.
The dollar is down 1.01% against a basket of currencies in trading today.
Separately, TheStreet Ratings team rates HECLA MINING CO as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate HECLA MINING CO (HL) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 41.05%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 75.00% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 86.0% when compared to the same quarter one year ago, falling from -$14.40 million to -$26.78 million.
- HECLA MINING CO has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, HECLA MINING CO turned its bottom line around by earning $0.05 versus -$0.08 in the prior year. For the next year, the market is expecting a contraction of 190.0% in earnings (-$0.05 versus $0.05).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, HECLA MINING CO underperformed against that of the industry average and is significantly less than that of the S&P 500.
- 35.29% is the gross profit margin for HECLA MINING CO which we consider to be strong. Regardless of HL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HL's net profit margin of -25.70% significantly underperformed when compared to the industry average.
- You can view the full analysis from the report here: HL Ratings Report