Hecla Mining Company · NYSE:HL
Hecla Mining — Denver Gold Forum 2015
18 slides from Hecla Mining's conference presentation, Sep 21, 2015
Slide 1: San Sebastian: Hecla’s Next Mine
San Sebastian: Hecla’s Next Mine Denver Gold Forum September 21, 2015
Slide 2: Cautionary Statements
Cautionary Statements Cautionary Statement Regarding Forward Looking Statements, Statements made or information provided in this presentation that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and "forward-looking
Slide 3: A Leading Silver, Gold, Base Metals Producer
A Leading Silver, Gold, Base Metals Producer Three producing mines in North America Quality mining assets Strong margins in both silver and gold Diversified, long-life revenue streams $56.7M free cash flow1 from mines in past Generates cash flow 4 quarters after invested $116M in capital R
Slide 4: Our Mission and Strategy
Our Mission To Create long-term value for shareholders from mining silver, gold and associated base metals Our Strategy Consistent, Long-Lived Production That Increases and Improves Over Time Long Life Assets Operating To Profit From Strong Geologic Knowledge To Higher Metal Understanding Reduce Cos
Slide 5: North American Focused Asset Portfolio
North American Focused Asset Portfolio Operations in Low-Risk + Mining-Friendly Jurisdictions Corporate Offices Operating mines Pre-development Exploration project –5–
Slide 6: San Sebastian: Hecla’s Next Mine…A History
San Sebastian: Hecla’s Next Mine…A History 1999 Acquired (Monarch Resource Investments) 40,324 ha of 31 contiguous mining concessions in Durango, Mexico 2001 – 2005 Mined 11.6 M oz Ag and 177,541 oz Au 2006-2012 General exploration 2014 Faulted offset of Francine Vein discovered 2014 Ind
Slide 7: PEA Targets Only 10% of a Growing Resource
PEA Targets Only 10% of a Growing Resource 2014 Resource (AgEq) Indicated 2.4 Mtons @15.6 oz/ton= 37.7 Moz Potential 100 Moz Inferred 3.7 Mtons AgEq @9.38 oz/ton=34.9 Moz Resource Current mine plan (PEA) based on 273 Ktons at a grade of 29.8 AgEq oz/t, or 8.1 Moz AgEq –7–
Slide 8: Our Strategy At San Sebastian
Our Strategy At San Sebastian Minimize capital to quickly generate exceptional returns in low price environment, providing growth while protecting the balance sheet Shallow Pits Rented Mill Targeting High- Contract Miners Grade Material –8–
Slide 9: PEA Shows Robust Cash Flow and IRR
PEA Shows Robust Cash Flow and IRR Shallow, high-grade open pits beginning year end 2015 Silver equivalent production (18 months) 8,138,740 ounces Capital (rented mill) $5.8 million Cash cost, after by-product credits, per silver ounce $5.49 Total after tax cash flow (5% discount) $43 million IRR 40
Slide 10: Production Decision On PEA Results
Production Decision On PEA Results We have mined these veins before (2001-2005) Was the highest grade mine in Mexico at the time Have operated the Velardeña mill previously Have relationships with local landowners Low capital requirement expected $5.8 Million High-grade material leads
Slide 11: Renting Velardeña Mill Lowers Requirement for Capital
Renting Velardeña Mill Lowers Requirement for Capital Hecla previously owned and operated the Velardeña mill Eliminates need to build new mill 18 month rental, could extend up to another 12 months Located 100 miles away, transportation costs reasonable Low risk: Hecla has experience operatin
Slide 12: Significant Discoveries
Significant Discoveries –12–
Slide 13: Preliminary Mine Layout
Preliminary Mine Layout Plan View Topsoil 621250 622500 stockpile Topsoil Dump stockpile Dump North pit Middle pit Topsoil stockpile 2701250 Topsoil 2701250 stockpile Dump Ore Topsoil stockpile stockpile East Francine pit Dump Topsoil stockpile 621250 622500 –13–
Slide 14: Upside Potential Beyond PEA
Upside Potential Beyond PEA 2015 exploration drilling continues to identify vein extensions 2015 in-fill drilling increasing some vein widths and grade Potential to secure additional third-party mill capacity Expect to increase resource at year end; potential to extend mine life Strong con
Slide 15: Upside at Middle Vein
Upside at Middle Vein MIDDLE VEIN LONGITUDINAL SECTION (Looking NE) AMC PIT SHELL –15–
Slide 16: Upside at North Vein
Upside at North Vein NORTH VEIN LONGITUDINAL SECTION (Looking NE) AMC PIT SHELL –16–
Slide 17: Upside at East Francine Vein
Upside at East Francine Vein EAST FRANCINE VEIN LONGITUDINAL SECTION (Looking North) AMC PIT SHELL –17–
Slide 18: Thank you
Thank you Hecla Celebrates 50 Years on the NYSE – March 25, 2015 –18–