Hecla Mining Company · NYSE:HL
Hecla Mining — Q4 2023 Earnings Presentation
39 slides from Hecla Mining's earnings presentation, Feb 15, 2024
Slide 1: Fourth Quarter and Full Year 2023 Conference Call
Largest U.S. silver producer, soon-to-be largest Canadian silver producer FOURTH QUARTER and FULL YEAR 2023 Conference Call RESPONSIBLE. SAFE. INNOVATIVE.
Slide 2: Cautionary Statements
HECLA MINING COMPANY NYSE: HL CAUTIONARY STATEMENTS FOURTH QUARTER AND FULL YEAR 2023 Cautionary Statement Regarding Forward-Looking Statements resources.” Mineral resources that are not mineral reserves do not have demonstrated economic viability. You should not assume that all or any part of measu
Slide 3: 2023 Highlights: Successes Despite Challenges
HECLA MINING COMPANY NYSE: HL 2023 HIGHLIGHTS: SUCCESSES DESPITE CHALLENGES FOURTH QUARTER AND FULL YEAR 2023 Solid foundation of long reserve lives, high-margin silver mines Operational Financial ESG 2nd highest silver reserves, 11% 2nd highest revenues Patented the Underhand Closed increase
Slide 4: Financial Review
FINANCIAL REVIEW RESPONSIBLE. SAFE. INNOVATIVE. 4
Slide 5: 2023 Financial Highlights
HECLA MINING COMPANY NYSE: HL 2023 FINANCIAL HIGHLIGHTS FOURTH QUARTER AND FULL YEAR 2023 2023 Revenues By Metal Strong Silver Margins Net Debt to Adjusted EBITDA ($/silver ounce) ($ Millions) 2nd highest revenues in history Margins are 50% of silver price 2024: Achieve target of < 2x Realized Price
Slide 6: 2024 Focus: Positioned to Maintain Financial Flexibility
HECLA MINING COMPANY NYSE: HL 2024 FOCUS: POSITIONED TO MAINTAIN FINANCIAL FLEXIBILITY FOURTH QUARTER AND FULL YEAR 2023 2023 Highlights 2024 Priorities $222M Cash flow from operations Capital investment drives 15-20% Reinvesting in and $155M Free cash flow(2) from production growth in 2024, 30% b
Slide 7: Keno Hill Technical Report Highlights
HECLA MINING COMPANY NYSE: HL KENO HILL TECHNICAL REPORT HIGHLIGHTS FOURTH QUARTER AND FULL YEAR 2023 Technical Report S-K 1300 Highlights Mine life, based on reserve plan years 11 Ore Tons Processed Tons (000) 2,069 Silver Grade Opt 26.6 Silver Recovery % 96.0 Total Silver Produced oz (000) 52,865
Slide 8: Casa Berardi Technical Report Highlights
HECLA MINING COMPANY NYSE: HL CASA BERARDI TECHNICAL REPORT HIGHLIGHTS FOURTH QUARTER AND FULL YEAR 2023 Technical Report S-K 1300 Highlights Mine life, based on reserve plan years 14 Ore Milled Tons (M) 15.8 Gold Grade (mined) – Open pit** Opt 0.08 Gold Grade (mined) – Opt 0.14 Underground** Gold G
Slide 9: Operational Review
OPERATIONAL REVIEW RESPONSIBLE. SAFE. INNOVATIVE. 9
Slide 10: Greens Creek: Foundation of Hecla's Future
HECLA MINING COMPANY NYSE: HL GREENS CREEK: FOUNDATION OF HECLA’S FUTURE GREENS FOURTH QUARTER AND FULLCREEK YEAR 2023 Solid 2023, Poised for another strong year All injury frequency rate lowest in operations history at 0.29 2023 Cash flow from operations $157M, Free Cash Flow: $122M Silver pr
Slide 11: Greens Creek: 2023 Exploration Expands Mineralization in Multiple Zones
GREENS CREEK: 2023 EXPLORATION HECLA MINING COMPANY NYSE: HL EXPANDS MINERALIZATION IN MULTIPLE ZONES FOURTH QUARTER AND GREENS CREEK FULL YEAR 2023 Positive Results at 9a, West, 200 South, East, Gallagher, and Upper Plate Zones 2023 Drilling Results 2024 Underground 2024 Surface Expanding high-gr
Slide 12: Lucky Friday: Innovation Driven Growth
HECLA MINING COMPANY NYSE: HL LUCKY FRIDAY: INNOVATION DRIVEN GROWTH LUCKY FOURTH QUARTER FRIDAY AND FULL YEAR 2023 Mitigation Plans Complete, Full ramp up in Q1/2024 All injury frequency rate lowest in operations history at 0.66 Restart plans completed on schedule and estimated costs ($12M) F
Slide 13: Keno Hill: Largest Primary Silver Reserves in Canada
HECLA MINING COMPANY NYSE: HL KENO HILL: LARGEST PRIMARY SILVER RESERVES IN CANADA KENO FOURTH QUARTER AND FULL HILL YEAR 2023 Focusing on safety while ramping up production Technical Report confirms 11-year reserve mine plan, with NPV (5%) of $305 million at $22/oz silver Silver reserves increa
Slide 14: Keno Hill Exploration Drilling Confirms Significant Potential
KENO HILL EXPLORATION DRILLING CONFIRMS SIGNIFICANT HECLA MINING COMPANY NYSE: HL POTENTIAL KENO FOURTH QUARTER AND FULL HILL YEAR 2023 Multiple intercepts significantly extend wider and high-grade mineralization internal to and at depth below current planned mining Three veins in Bermingham depos
Slide 15: Casa Berardi: Executing on Transition Plan
HECLA MINING COMPANY NYSE: HL CASA BERARDI: EXECUTING ON TRANSITION PLAN CASA FOURTH QUARTER BERARDI AND FULL YEAR 2023 14-year reserve mine plan, NPV (5%) of $347 million in Technical Report* Executing on strategic transition to surface only operation Achieved 2023 gold production and cost guid
Slide 16: Guidance – Strong Silver Production Growth
HECLA MINING COMPANY NYSE: HL GUIDANCE – STRONG SILVER PRODUCTION GROWTH FOURTH QUARTER AND FULL YEAR 2023 15-20% Silver production growth in 2024, 30% by 2026 Silver Production (Moz) Gold Production (Koz) Silver Equivalent (Moz) Gold Equivalent (Koz) Consolidated 2024 Total 16.5 - 17.5 121.0 – 133.
Slide 17: 2023: Silver and Solar in Numbers
HECLA MINING COMPANY NYSE: HL 2023: SILVER AND SOLAR IN NUMBERS FOURTH QUARTER AND FULL YEAR 2023 22 Years Number of years in a row of a new record for renewable capacity 75% Solar’s share of renewable capacity additions worldwide* 50 Moz Expected increase in silver demand for solar in 2023, an incr
Slide 18: Appendix
APPENDIX End Notes and GAAP reconciliations RESPONSIBLE. SAFE. INNOVATIVE. 18
Slide 19: End Notes
HECLA MINING COMPANY NYSE: HL END NOTES FOURTH QUARTER AND FULL YEAR 2023 1. Net debt to adjusted EBITDA is a non-GAAP measurement, a reconciliation of adjusted EBITDA and net debt to the closest GAAP measurements of net income (loss) and debt can be found in the appendix. It is an important measure
Slide 20: Guidance – Production and Costs by Operation
HECLA MINING COMPANY NYSE: HL GUIDANCE – PRODUCTION AND COSTS BY OPERATION FOURTH QUARTER AND FULL YEAR 2023 Silver Production (Moz) Gold Production (Koz) Silver Equivalent (Moz)6 Gold Equivalent (Koz)6 2024 Production Greens Creek * 8.8 – 9.2 46.0 - 51.0 21.0 – 21.5 235 – 245 Lucky Friday * 5.0 – 5
Slide 21: GAAP Reconciliations
GAAP RECONCILIATIONS RESPONSIBLE. SAFE. INNOVATIVE. 21
Slide 22: Adjusted EBITDA Reconciliation to GAAP
HECLA MINING COMPANY NYSE: HL ADJUSTED EBITDA RECONCILIATION TO GAAP FOURTH QUARTER AND FULL YEAR 2023 Reconciliation of Net Loss (GAAP) to Adjusted EBITDA (non-GAAP) Last Twelve Months Q4 2023 Q3 2023 Dollars in thousands (USD) Net loss $ (84,217) $ (45,734) Interest expense 43,319 42,194 Income an
Slide 23: Cash Cost and AISC Reconciliation to GAAP
HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP FOURTH QUARTER AND FULL YEAR 2023 Silver Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Costs, Before By-product Credits, per Ounce and
Slide 24: Cash Cost and AISC Reconciliation to GAAP
HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP FOURTH QUARTER AND FULL YEAR 2023 Greens Creek Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Costs, Before By-product Credits, per Oun
Slide 25: Cash Cost and AISC Reconciliation to GAAP
HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP FOURTH QUARTER AND FULL YEAR 2023 Lucky Friday Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Costs, Before By-product Credits, per Oun
Slide 26: Cash Cost and AISC Reconciliation to GAAP
HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP FOURTH QUARTER AND FULL YEAR 2023 Casa Berardi Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Costs, Before By-product Credits, per Oun
Slide 27: Cash Cost and AISC Reconciliation to GAAP
HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP FOURTH QUARTER AND FULL YEAR 2023 2024 Silver and Gold Estimates Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Costs
Slide 28: Free Cash Flow (Non-GAAP) Reconciliation
HECLA MINING COMPANY NYSE: HL FREE CASH FLOW (NON-GAAP) RECONCILIATION FOURTH QUARTER AND FULL YEAR 2023 Reconciliation of cash provided by operating activities (GAAP) to Free Cash Flow (non-GAAP) for Greens Creek, Lucky Friday and Casa Berardi 2018 to 2023 Greens Total Lucky Friday Casa Berardi Cre
Slide 29: Free Cash Flow (Non-GAAP) Reconciliation
HECLA MINING COMPANY NYSE: HL FREE CASH FLOW (NON-GAAP) RECONCILIATION FOURTH QUARTER AND FULL YEAR 2023 Greens Creek reconciliation of cash provided by operating activities (GAAP) to free cash flow (non-GAAP) TOTAL 2023 2022 2021 2020 in millions Cash provided by operating activities 694 157 151 17
Slide 30: Mineral Reserves and Resources
MINERAL RESERVES AND RESOURCES RESPONSIBLE. SAFE. INNOVATIVE. 30
Slide 31: Mineral Reserves - 12/31/2023 (1/2)
HECLA MINING COMPANY NYSE: HL Hecla Mining Company - Mineral Reserves - 12/31/2023 (1) (1/2) FOURTH QUARTER AND FULL YEAR 2023 Proven Reserves (1) Silver Gold Lead Zinc Silver Gold Lead Zinc Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % (000 oz) (000 oz) (Tons) (Tons) Greens Creek (2,3)
Slide 32: Mineral Reserves - 12/31/2023 (2/2)
HECLA MINING COMPANY NYSE: HL Hecla Mining Company - Mineral Reserves - 12/31/2023 (1) (2/2) FOURTH QUARTER AND FULL YEAR 2023 Proven & Probable Reserves Silver Gold Lead Zinc Silver Gold Lead Zinc Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % (000 oz) (000 oz) (Tons) (Tons) Greens Creek
Slide 33: Mineral Resources - 12/31/2023 (1/4)
HECLA MINING COMPANY NYSE: HL Hecla Mining Company - Mineral Resources - 12/31/2023 (8) (1/4) FOURTH QUARTER AND FULL YEAR 2023 Measured Resources (9) Silver Gold Lead Zinc Copper Silver Gold Lead Zinc Copper Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % % (000 oz) (000 oz) (Tons) (Tons)
Slide 34: Mineral Resources - 12/31/2023 (2/4)
HECLA MINING COMPANY NYSE: HL Hecla Mining Company - Mineral Resources - 12/31/2023 (8) (2/4) FOURTH QUARTER AND FULL YEAR 2023 Indicated Resources (10) Silver Gold Lead Zinc Copper Silver Gold Lead Zinc Copper Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % % (000 oz) (000 oz) (Tons) (Ton
Slide 35: Mineral Resources - 12/31/2023 (3/4)
HECLA MINING COMPANY NYSE: HL Hecla Mining Company - Mineral Resources - 12/31/2023 (8) (3/4) FOURTH QUARTER AND FULL YEAR 2023 Measured & Indicated Resources Silver Gold Lead Zinc Copper Silver Gold Lead Zinc Copper Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % % (000 oz) (000 oz) (Tons
Slide 36: Mineral Resources - 12/31/2023 (4/4)
HECLA MINING COMPANY NYSE: HL Hecla Mining Company - Mineral Resources - 12/31/2023 (8) (4/4) FOURTH QUARTER AND FULL YEAR 2023 Inferred Resources (11) Silver Gold Lead Zinc Copper Silver Gold Lead Zinc Copper Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % % (000 oz) (000 oz) (Tons) (Tons
Slide 37: Mineral Reserves and Resources Footnotes
HECLA MINING COMPANY NYSE: HL MINERAL RESERVES AND RESOURCES FOOTNOTES FOURTH QUARTER AND FULL YEAR 2023 Note: All estimates are in-situ except for the proven reserves at Greens Creek which are in surface stockpiles. Mineral resources are exclusive of reserves. 1. The term “reserve” means an estimat
Slide 38: Mineral Reserves and Resources Footnotes
HECLA MINING COMPANY NYSE: HL MINERAL RESERVES AND RESOURCES FOOTNOTES FOURTH QUARTER AND FULL YEAR 2023 17. Indicated resources for most zones at San Sebastian based on $1,500/oz gold, $21/oz silver, $1.15/lb lead, $1.35/lb zinc and $3.00/lb copper using a cut-off grade of $90.72/ton ($100/tonne);
Slide 39: Thank You
THANK YOU RESPONSIBLE. SAFE. INNOVATIVE.