Hecla Mining Company · NYSE:HL
Hecla Mining — HCW Spring Mining Conference 2021
16 slides from Hecla Mining's conference presentation, Apr 20, 2021
Slide 1: HCW Spring Mining Conference
HCW SPRING MINING CONFERENCE United States’ Leading Silver Producer April 20, 2021 RESPONSIBLE. SAFE. INNOVATIVE. NYSE: HL
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS Cautionary Statement Regarding Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended
Slide 3: Cautionary Statements (cont'd)
CAUTIONARY STATEMENTS (cont’d) Cautionary Statement Regarding Forward Looking Statements (Cont’d) In addition, material risks that could cause actual results to differ from forward-looking statements include, but are not limited to: (i) gold, silver and other metals price volatility; (ii) operating
Slide 4: Hecla: Unique Precious Metals Miner
Hecla: Unique Precious Metals Miner NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 4
Slide 5: Why Invest in Hecla?
WHY INVEST IN HECLA? Hecla is unique to other silver miners, ETFs and physical silver Primarily U.S based operations – the right jurisdiction for risk and ESG Two of the largest and highest-grade silver mines in the world Silver dominates reserves and cash flow Long-lived mines with decades
Slide 6: ESG Is Built in Our Culture But Is Still Improving
ESG IS BUILT IN OUR CULTURE BUT IS STILL IMPROVING Primary operations in the U.S. and Canada provides the strongest ESG commitment Best Jurisdiction To Protect The Environment • Completed reclamation of 97% of the Troy Tailings Facility returning lands to productive uses such as wildlife habitat • S
Slide 7: ESG Is Built in Our Culture But Is Still Improving
ESG IS BUILT IN OUR CULTURE BUT IS STILL IMPROVING Primary operations in the US and Canada provides the strongest ESG commitment Best Jurisdictions For A Collaborative Social Engagement • Signed Collaboration Agreement with Pikogan First Nation at Casa Berardi Mine • Initiated a buy local voucher pr
Slide 8: Hecla Mines a Third of All Silver Produced in the USA
HECLA MINES A THIRD OF ALL SILVER PRODUCED IN THE USA Half of the world’s production is from Mexico, Peru and China; U.S. production is scarce 2020 U.S. Silver Production) Hecla’s Share of U.S. Production (Moz) 13.5 34.0% 66.0% Hecla Other 7.1 3 Countries . Produce 50% of World Production U.S. Produ
Slide 9: High-Grade Silver Mines of Size Are Scarce
HIGH-GRADE SILVER MINES OF SIZE ARE SCARCE Hecla’s world’s second and seventh largest silver mines have the highest silver equivalent grade 400 AgEq* AgEq Grade 40 (Moz) (opt) 350 35 300 30 250 25 200 20 150 15 100 10 50 5 0 0 Cannington Greens Creek Fresnillo Saucito Rochester Ying Lucky Friday La
Slide 10: Hecla Is Increasing Silver Production
HECLA IS INCREASING SILVER PRODUCTION Lucky Friday production tripled over last year, expected to be 75% more in 2021 and 5 million ounces by 2023, 2.5 times 2020 production 30 Vein - *AgEq Grade (opt) 20 Years Past Mining < 10 10 - 20 Almost 20 - 30 6500 Level 30 - 35 1000 feet > 35 @ +35 Oct. 12,
Slide 11: Dividend Yield Increases with Silver Prices
DIVIDEND YIELD INCREASES WITH SILVER PRICES More cash returned to shareholders as dividend yield increases synchronously with silver prices An implied dividend $9.0 yield of 5.7% of 20.00% silver price 16.5% $8.0 18.00% $7.0 14.2% 16.00% 14.00% $6.0 11.3% 12.00% $5.0 10.00% $4.0 7.6% 5.7% 8.00% $3.0
Slide 12: Reddit Silver Squeeze Demonstrated Brand Value
REDDIT SILVER SQUEEZE DEMONSTRATED BRAND VALUE Highest performer with a small short position and continued outperformance Share Price Performance on February 1st & Share Price Performance on January 29th – April 6th Shares Short as a % of Total Float* 30% 30% 28% 25.0% 25% 26% 25% 20% 21.8% 23% 20.0
Slide 13: A Very Short History of Silver Demand
A VERY SHORT HISTORY OF SILVER DEMAND Despite declining photography demand, silver industrial and investment demand has been in a secular bull market since 2000 and is stronger in 2021 and the future Five distinct periods of silver demand, three that are strengthening • Monetary by governments (2000
Slide 14: Silver – Widening Gap Between Supply & Demand
SILVER – WIDENING GAP BETWEEN SUPPLY & DEMAND Gap expected to increase with conservative demand assumptions • 2019 saw a total supply of 1,023 Moz and total demand of 1,074 Moz • This supply shortfall of 50 Moz of silver was filled by above ground stocks • Silver’s total demand in 2030 is expected t
Slide 15: 1Q21 Production and Cash Position
1Q21 PRODUCTION AND CASH POSITION As planned or better • Silver, lead and zinc production grew reflecting Lucky Friday at full production Production • Gold production declined as less profitable production is wound down • Nevada production will be completed in 2Q – guidance unchanged • Cash position
Slide 16: HCW Spring Mining Conference – End
HCW SPRING MINING CONFERENCE END April 20, 2021 RESPONSIBLE. SAFE. INNOVATIVE. NYSE: HL
Hecla Mining Company — HCW Spring Mining Conference 2021 on 6ix