UPDATE 2-Hecla Q1 profit lags Street as gold production dips

(Recasts; adds analyst comments, conference call details, background, share movement)

By Shradhha Sharma

BANGALORE, May 12 (Reuters) - Precious metals company Hecla Mining Co (HL.N: Quote, Profile, Research) reported lower first-quarter earnings, trailing market estimates, as delays in metal-concentrate shipments due to overcrowded Asian ports reduced gold production, sending its shares down 6 percent.

"You are starting to hear that from a bunch of mining companies -- that port congestion is actually slowing down production," analyst Bill Selesky with Argus Research Co said.

Production of gold and silver fell 40 percent and 18 percent to 21,940 ounces and 1.3 million ounces, respectively, compared with the year-ago quarter, the company said in a statement.

The shipment delays have added to other production problems the company has been facing. Earlier this month in Venezuela, workers halted operations at Hecla's Isidora gold mine on demands that the government of President Hugo Chavez take over the mine.

The stoppage follows a renewed wave of nationalizations this year affecting the cement and steel sectors, and comes just days after other companies said Venezuela denied exploration permits to two gold miners operating in the same region.

"Operating efforts continue to be challenging in Venezuela, due to the difficult labor and political environments," Hecla said.

The largest gold miner in Venezuela added that the Isidora mine's frequent and often lengthy work stoppages have been factored into annual production estimates.