Hecla Mining Company · NYSE:HL
Hecla Mining — Q1 2024 Earnings Presentation
28 slides from Hecla Mining's earnings presentation, May 9, 2024
Slide 1: First Quarter 2024 Conference Call
Largest U.S. silver producer, soon-to-be largest Canadian silver producer FIRST QUARTER 2024 Conference Call RESPONSIBLE. SAFE. INNOVATIVE.
Slide 2: Cautionary Statements
HECLA MINING COMPANY NYSE: HL CAUTIONARY STATEMENTS FIRST QUARTER 2024 CONFERENCE CALL Cautionary Statement Regarding Forward-Looking Statements great amount of uncertainty as to their existence and as to whether they can be mined legally or economically, and an inferred mineral resource may not be
Slide 3: Silver and Solar in Numbers
HECLA MINING COMPANY NYSE: HL SILVER AND SOLAR IN NUMBERS FIRST QUARTER 2024 CONFERENCE CALL $393 Billion Solar investment in 2023, 12% increase over 2022* 17% 5-year annual growth rate of Silver demand in Solar, Solar is now 16% of total demand or 194 Moz** 40 Moz Expected increase in silver demand
Slide 4: Indian Silver Demand by Numbers
HECLA MINING COMPANY NYSE: HL INDIAN SILVER DEMAND BY NUMBERS FIRST QUARTER 2024 CONFERENCE CALL 77 Moz India’s silver imports in February 2024, a new record 19% India’s share of global silver demand, Solar and India are 35% of world silver demand Silver price in Indian rupees set an all-time high i
Slide 5: Fastest Growing Established Silver Miner
HECLA MINING COMPANY NYSE: HL FASTEST GROWING ESTABLISHED SILVER MINER FIRST QUARTER 2024 CONFERENCE CALL Silver Reserves: 2007 - 2023 Average Silver Production: 2008- 2026E Moz Moz 20.0 ~5x Reserve 18.5 Growth 17.5 18.0 ~2x Production 17.0 16.5 Growth 12.7 9.2 52 132 140 142 148 150 170 173 175 172
Slide 6: First Quarter Highlights: Solid Start to the Year
HECLA MINING COMPANY NYSE: HL FIRST QUARTER HIGHLIGHTS: SOLID START TO THE YEAR FIRST QUARTER 2024 CONFERENCE CALL Strong Operational and Financial Performance Greens Creek: Strong, consistent quarter Lucky Friday: Achieved full ramp-up Keno Hill: Ongoing ramp-up Increasing throughput, improv
Slide 7: Financial Review
FINANCIAL REVIEW RESPONSIBLE. SAFE. INNOVATIVE. 7
Slide 8: First Quarter Financial Highlights
HECLA MINING COMPANY NYSE: HL FIRST QUARTER FINANCIAL HIGHLIGHTS FIRST QUARTER 2024 CONFERENCE CALL Q1/24 Revenues By Metal Strong Silver Margins Net Debt to Adjusted EBITDA ($/silver ounce) ($ Millions) Silver’s share of revenues is Margins are ~50% of silver price 2024: Achieve target of < 2x incr
Slide 9: 2024 Focus: Maintain Financial Flexibility
HECLA MINING COMPANY NYSE: HL 2024 FOCUS: MAINTAIN FINANCIAL FLEXIBILITY FIRST QUARTER 2024 CONFERENCE CALL 2024 Priorities: Free Cash Flow: Greens Creek, Lucky Friday ($ Million) Invest in Keno Hill ramp-up Free Cash Flow (2) Target Net Debt to Adjusted EBITDA of < 2x 2020 – Q1/2024: Expect in
Slide 10: Operational Review
OPERATIONAL REVIEW RESPONSIBLE. SAFE. INNOVATIVE. 10
Slide 11: Greens Creek: Strong, Consistent Performance
HECLA MINING COMPANY NYSE: HL GREENS CREEK: STRONG, CONSISTENT PERFORMANCE FIRST QUARTER 2024 GREENS CREEK CONFERENCE CALL Solid quarter, on track to achieve guidance Throughput of 2,552 tons per day (tpd), higher silver grades compared to plan Cost performance in line with plan, Capital spend l
Slide 12: Lucky Friday: On Track to Exceed 5Moz in 2024
HECLA MINING COMPANY NYSE: HL LUCKY FRIDAY: ON TRACK TO EXCEED 5MOZ IN 2024 LUCKY FIRST QUARTER 2024 FRIDAY CONFERENCE CALL Achieved full ramp up in Q1/2024 Achieved 1,000 days of no lost time injury Achieved record mill throughput over multiple days in March, exceeding 1,300 tpd Received $17.
Slide 13: Keno Hill: Largest Silver Producer in Canada
HECLA MINING COMPANY NYSE: HL KENO HILL: LARGEST SILVER PRODUCER IN CANADA KENO FIRST QUARTER 2024 HILLCALL CONFERENCE Focusing on safety and environment, creating predictability to ramp up production 41% reduction in All-Injury Frequency Rate (AIFR) over 2023 Two-pronged approach: behavior and
Slide 14: Keno Hill – Strong Results from Bermingham Underground Infill Drilling
HECLA MINING COMPANY KENO HILL – STRONG RESULTS FROM BERMINGHAM UNDERGROUND NYSE: HL INFILL DRILLING – FOOTWALL VEIN FIRST QUARTER 2024 CONFERENCE CALL Footwall Vein: Grade and Width of Mineralization Continues to Exceed Model Expectations with Two Additional Intercepts: 55.4 oz/ton silver over 40.7
Slide 15: Casa Berardi: Executing on Transition Plan
HECLA MINING COMPANY NYSE: HL CASA BERARDI: EXECUTING ON TRANSITION PLAN CASA FIRST QUARTER 2024 BERARDI CONFERENCE CALL Long-term value creation with 14-year reserve mine plan Focus prioritizes safety of workforce and environment Predictability of costs have improved, and remain key Stope-by-
Slide 16: Guidance – Strong Silver Production Growth
HECLA MINING COMPANY NYSE: HL GUIDANCE – STRONG SILVER PRODUCTION GROWTH FIRST QUARTER 2024 CONFERENCE CALL 15-20% Silver production growth in 2024, 30% by 2026 Silver Production Gold Production (Koz) Silver Equivalent (Moz) Gold Equivalent (Koz) (Moz) Consolidated Production 2024 Total 16.5 - 17.5
Slide 17: Appendix
APPENDIX End Notes and GAAP reconciliations RESPONSIBLE. SAFE. INNOVATIVE. 17
Slide 18: End Notes
HECLA MINING COMPANY NYSE: HL END NOTES FIRST QUARTER 2024 CONFERENCE CALL 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 measur
Slide 19: Guidance – 2024 Production and Costs by Operation
HECLA MINING COMPANY NYSE: HL GUIDANCE – 2024 PRODUCTION AND COSTS BY OPERATION FIRST QUARTER 2024 CONFERENCE CALL 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
Slide 20: GAAP Reconciliations
GAAP RECONCILIATIONS RESPONSIBLE. SAFE. INNOVATIVE. 20
Slide 21: Adjusted EBITDA Reconciliation to GAAP
HECLA MINING COMPANY NYSE: HL ADJUSTED EBITDA RECONCILIATION TO GAAP FIRST QUARTER 2024 CONFERENCE CALL Reconciliation of Net Loss (GAAP) to Adjusted EBITDA (non-GAAP) Last Twelve Months Q1 2024 Q4 2023 Dollars in thousands (USD) Net loss $ (86,797) $ (84,217) Interest expense 45,798 43,319 Income a
Slide 22: Cash Cost and AISC Reconciliation to GAAP
HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP FIRST QUARTER 2024 CONFERENCE CALL 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 an
Slide 23: Cash Cost and AISC Reconciliation to GAAP
HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP FIRST QUARTER 2024 CONFERENCE CALL 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 Ou
Slide 24: Cash Cost and AISC Reconciliation to GAAP
HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP FIRST QUARTER 2024 CONFERENCE CALL 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 Ou
Slide 25: Cash Cost and AISC Reconciliation to GAAP
HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP FIRST QUARTER 2024 CONFERENCE CALL Casa Berardi and Total Gold 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
Slide 26: Free Cash Flow (Non-GAAP) Reconciliation
HECLA MINING COMPANY NYSE: HL FREE CASH FLOW (NON-GAAP) RECONCILIATION FIRST QUARTER 2024 CONFERENCE CALL Reconciliation of cash provided by operating activities (GAAP) to Free Cash Flow (non-GAAP) for Greens Creek and Lucky Friday 2020 to Q1 2024 TOTAL Q1 2024 2023 2022 2021 2020 in millions Cash p
Slide 27: Free Cash Flow (Non-GAAP) Reconciliation
HECLA MINING COMPANY NYSE: HL FREE CASH FLOW (NON-GAAP) RECONCILIATION FIRST QUARTER 2024 CONFERENCE CALL Greens Creek reconciliation of cash provided by operating activities (GAAP) to free cash flow (non-GAAP) TOTAL Q1 2024 2023 2022 2021 2020 in millions Cash provided by operating activities 723 2
Slide 28: Thank You
THANK YOU RESPONSIBLE. SAFE. INNOVATIVE.