Why Hecla Mining Stock Rose 15% in February
Shares of silver and gold miner Hecla Mining (NYSE: HL) rose just shy of 15% in February according to data from S&P Global Market Intelligence. The price increase wasn't smooth, with big spikes toward the beginning and end of the month that were followed by a drop-off in the share price. The notable monthly gain was largely the result of the second big price spike, which occurred toward the end of February.
At a base level, Hecla's top and bottom lines are driven by the price of the commodities it produces. And since precious-metals miners' results are leveraged to these commodity prices, their stocks tend to rise more than the metals they produce (and can fall more, as well). So, in some ways, Hecla's price moves this month were really driven by the price moves of silver, which is an important piece of its production mix. Silver prices jumped early in the month and again late in the month. Hecla's stock followed that trend, but with a more pronounced price increase. Although both the metal and Hecla's stock quickly turned around after each price spike, the second uptick was at the end of the month. February basically ended while the price was still materially higher, even though it was off its peak. The stock continued to trace the gain in early March.
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Source Fool.com
