Top Stories for Jan. 11, 2024:
1. Financial consultant Vincent Anderson, representing Stifel, sustained a Buy rating on Compass Minerals Intl. CMP while trimming his price target from $75 to $60.
2. Commercial Metals Company CMC revealed its Board of Directors approved a $500 million extension to its share buyback initiative, bringing the total to $850 million. Since October 2021, the corporation has already reclaimed $310 million of its common stock.
Commenting on this development, President and Chief Executive Officer Peter R. Matt stated, “Today’s announcement reflects a well-balanced capital allocation strategy that is supported by CMC’s strong earnings capability and cash flow profile… Our Company’s excellent financial position provides the ability to continue to fund value-accretive growth, while returning a meaningful portion of CMC’s free cash flow to shareholders.”
3. Hecla Mining Company HL disclosed its preliminary silver and gold production for the fourth quarter and full year 2023.
In spite of the Lucky Friday mine’s brief closure, silver production rose marginally to 14.3 million ounces in 2023, while annual gold production dropped by 14% due to the transition of Casa Berardi to an open pit mine.
The Lucky Friday mine also initiated its restart and is anticipated to achieve full production in the first quarter. Additionally, Keno Hill generated 1.5 million ounces, with the Bermingham deposit yielding the highest tonnage in December.
Phillips S. Baker, President and CEO of Hecla, further remarked, “Hecla faced multiple challenges in 2023 with the fire at the Lucky Friday mine and improving the safety culture at Keno Hill, but despite these challenges, silver production exceeded last year as Greens Creek delivered another strong year, Lucky Friday’s production through July with our patented UCB method produced more silver than the mine typically produced in a full year with the old mining method and the roughly half year of production at Keno Hill shows its potential to be a meaningful producer.”
Baker also expressed optimism about the company’s prospects in the ensuing year, stating, “We look forward to a strong year in 2024 as we execute our growth strategy to deliver up to 20 million ounces of silver production by 2025. With silver’s critical role in energy transition and its application in solar electricity generation, Hecla will play an important role in producing silver as the world’s fastest-growing established silver producer and the dominant producer of silver in the U.S. and soon Canada.”
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