Hecla Mining Company · NYSE:HL
Hecla Mining — CIBC Institutional Investor Conference 2018
17 slides from Hecla Mining's conference presentation, Jan 24, 2018
Slide 1: Silver and Gold (and Base Metals Too!) Creating Short and Long Term Value
January 2018 NYSE:HL Silver and Gold (and Base Metals Too!) Creating Short and Long Term Value
Slide 2: Cautionary Statements
Cautionary Statements NYSE:HL 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
Slide 3: Hecla's Long-Term Exposure to Metals
Hecla’s Long-Term Exposure to Metals NYSE:HL 126 years: silver, lead, zinc 49 years: gold A history of long-lived silver assets: Lucky Friday 75 years & counting Greens Creek 30 years & counting Star 90 years Known/branded as a Silver company – which we like -3-
Slide 4: Strong Exposure to Metals
Strong Exposure to 5 Metals Diversifies Revenue, Reduces Risk NYSE:HL Total Metal Exposure 2017 Lead 11% Production Gold 26% Zinc 11% Silver 12.5 Moz Gold 232 koz Copper 22% Zinc 55 ktons Silver 30% Lead 23 ktons Lead Zinc Copper Silver Gold -4-
Slide 5: Diversified Revenue Stream Q3/2017
Diversified Revenue Stream Q3/2017 Mitigates risk and enhances economics NYSE:HL #1 Silver and #3 Lead and Zinc Producer in the U.S. #4 Gold Producer in Quebec, Canada Greens Creek 43% of Zinc Production: 14.5 ktons Silver Production: 3.3 Moz Realized Price: $1.44/lb Total Revenue Cash Costs, after
Slide 6: Creating Value
A SILVER, Gold & Base Metals Company Focused on Creating Value NYSE:HL Productivity Improvements Reducing Costs Creating Value New Mines New Discoveries -6-
Slide 7: Labor is Largest Direct Production Cost
Labor is Largest Direct Production Cost Increasing productivity has highest impact on the bottom line NYSE:HL Estimated annual cost breakdown -7-
Slide 8: High Quality North American Portfolio
High Quality North American Portfolio Lower political risk than many peers NYSE:HL –8–
Slide 9: First We WIFI the Mines
First We WIFI the Mines The key to increased safety & productivity NYSE:HL Improving Mining Based On Data Ventilation on Demand Undergoing Testing -9-
Slide 10: Teleremote LHD & Jumbo Drill Increase Productivity
Teleremote LHD & Jumbo Drill Increase Productivity NYSE:HL –10–
Slide 11: Significantly Improved Silver Recoveries
Significantly Improved Recoveries Expect further improvements from Woodgrove SFR flotation cells NYSE:HL Increases payable silver and gold by having it report to bulk con instead of the zinc con Cost approx. $1.3 million Payback expected in 6-12 months IRR in excess of 100% Commissioned in
Slide 12: Testing Battery Powered LHD
Testing Battery Powered LHD Could reduce ventilation needs versus diesel NYSE:HL -12-
Slide 13: Continuous Mechanical Cutting To Eliminate Drill/Blast
Continuous Mechanical Cutting To Eliminate Drill/Blast A 5-Year investment that could revolutionize the Lucky Friday NYSE:HL Could Improve Safety and Productivity Atlas Copco Test Mine 2016 -13-
Slide 14: Drift Haulage Under Construction
985 Drift Haulage Under Construction First automated truck now on site: Should result in cost savings NYSE:HL Optical scanner & camera Surface control room 40 tonne Sandvik truck -14-
Slide 15: Appendix
MINING COMPANY NYSE:HL Appendix -15-
Slide 16: Endnotes
Endnotes NYSE:HL 1. Cash cost, after by-product credits, per silver and gold ounce represents a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization (sometimes referred to as "cost of sales" in this release),
Slide 17: Cash Cost Reconciliation to GAAP
Cash Cost Reconciliation to GAAP Silver Operations and Casa Berardi NYSE:HL Reconciliation of Cost of Sales and Other Direct Production Reconciliation of Cost of Sales and Other Direct Production Costs Costs and Depreciation, Depletion and Amortization, the most and Depreciation, Depletion and Amort
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