Shares of Hecla Mining have taken a hit after the company announced a fall of ground at its Lucky Friday mine in Idaho, causing potential disruptions to production and increased costs.
The stock price has decreased by 8.6% to $4.18 in morning trading. Despite this setback, shares have still witnessed a 3% increase over the past year.
Based in Coeur d’Alene, Idaho, Hecla Mining specializes in the extraction of silver and other precious metals. According to the company, the collapse occurred in the #2 shaft of the Lucky Friday mine, specifically at an unused station undergoing repairs. Preliminary investigations indicate that a fire caused the collapse, which Hecla Mining assures is contained and under control.
Hecla Mining is responsible for more than 45% of silver mining in the United States and currently operates four mines. Lucky Friday mine, fully owned by Hecla Mining, focuses on the underground extraction of silver, lead, and zinc.
Fortunately, no personnel were present at the time of the incident. Hecla Mining is actively developing a plan to resume production and will provide further updates on its annual guidance once the plan is finalized. The Mine Safety and Health Administration has also been notified of the situation. Notably, the collapse occurred approximately 500 feet away from the bottom of the shaft’s active section.