Pomerantz LLP is investigating claims on behalf of investors of Hecla Mining Company (“Hecla” or the “Company”) (HL). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org 888-476-6529, ext. 9980.
The investigation concerns whether Hecla and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On May 9, 2019, pre-market, Hecla announced its financial and operating results for the first quarter of 2019. Hecla disclosed a “comprehensive review” of its Nevada operations that it characterized during a subsequent conference call as “really just asking the question, are we going to get the return for the investment we’re making.” Hecla disclosed that its Nevada operations suffered from negative cash flow and other negative operating metrics, that it was unclear whether Hecla would ever get a positive return on its investment in the Nevada operations, and that Hecla might write off the Nevada operations. Additionally, Hecla reported a net loss of over $25 million for the first quarter of 2019 based in large part on a gross loss of $13.8 million from its Nevada operations.
Following these disclosures, Hecla’s stock price fell $0.48 per share, or roughly 23.5%, over the following two trading days, closing at $1.56 per share on May 10, 2019.