Hecla Mining (NYSE:HL) Explodes as Silver Ready to Shine

Silver has been lagging the price movement of gold for some time, but that has started to change lately, and silver miners like Hecla Mining Company (NYSE:HL) are starting to move up with silver prices, as gold investors look to alternatives as gold prices soar to record levels on consistent basis.

Historically when gold reaches certain levels, investors tend to migrate to silver because it will usually outperform gold at certain price points, and that seems to be approaching now, although both are excellent investments at this time.

Over the last five trading days Hecla seems to be making a major move, and today are surged to $8.75 a share, gaining $0.82, or 10.34 percent at 2:28 PM EST.

Once more investors see this trend developing, we will probably see an entire market sector push up again, with silver miners outperforming gold miners in many cases.

Either way, it's doubtful investors will lose one way or the other, but silver will probably become the better play in most cases, although there are some gold miners which could do as well going forward.

Silver Wheaton (TSE:SLW) Amends Goldcorp (TSE:G) Silver Agreement after San Dimas Deal

Silver Wheaton (TSE:SLW) (NYSE:SLW) has amended its agreement which they had with Goldcorp (TSE:G) (NYSE:GG) before they sold the San Dimas gold-silver mine to Mala Noche Resources (VAN:MLA).

The prior agreement, or the existing one before the company changes hands, allowed Silver Wheaton to acquire all the silver produced there.

That came to 5.1 million ounces of silver produced at the mine in 2009, which they sold at about $4 an ounce.

The new agreement includes the below:

As part of the amended agreement, during the first four years following closing of the transaction, Mala Noche will deliver to Silver Wheaton a per annum amount equal to the first 3.5 million ounces of payable silver produced at San Dimas and 50% of any excess, plus Silver Wheaton will receive an additional 1.5 million ounces of silver per annum to be delivered by Goldcorp for approximately $4.00 per ounce. Beginning in the fifth year after closing, Mala Noche will deliver to Silver Wheaton a per annum amount equal to the first six million ounces of payable silver produced at San Dimas and 50% of any excess.

Hecla Mining (NYSE:HL) Declares Quarterly Dividend

Hecla Mining Company (NYSE:HL) announced their Board of Directors has declared a regular quarterly dividend for their Series B Cumulative Convertible Preferred Stock.

For each share of those shares, the owner will receive $0.875, equivalent to about $138,000.

Shareholders of record as of June 15, 2010 will be paid on July 1, 2010.

Total shares outstanding of Preferred B Stock is 157,816.

Also declared was the regularly quarterly dividend on the outstanding 6.5 percent Mandatory Convertible Preferred Stock. That amount will be $1.625 a share, which the dividend will be paid in common stock of Hecla. That comes to about $3.27 million, in addition to cash for fractional shares.

Hecla has a 52-week range of $2.26 - $7.47 a share, and recently plunged, as did most mining stocks, with the correction in gold and metals emerging last week.