Slide 1: Free Writing Prospectus
Free Writing Prospectus Filed Pursuant to Rule 433 Registration No. 333-145919 December 12, 2007 HL:NYSE
Slide 2: Cautionary Note Regarding Forward Looking Statements
Cautionary Note Regarding Forward Looking Statements Statements made which are not historical facts, such as anticipated payments, litigation outcome, production, sales of assets, exploration results and plans, costs, and prices or sales performance are “forward-looking statements” within the meanin
Slide 3: Offering Summary
Offering Summary Offering Summary Security: Mandatory Convertible Preferred Shares Size: $175 Million (+15% Over-Allotment Option) Payment Rate: 6.25% +/- 0.25% Conversion Premium: 20.0% +/- 2.0% Maturity: 3 Years Use of Proceeds: General corporate purposes, including acquisitions Bookrunners: Merri
Slide 4: Low Cost, Low Risk, High Potential
Low Cost, Low Risk, Low Cost, Low Risk, High Potential High Potential Low Cost Silver $(4.91) cash cost per ounce of silver* Low Risk Silver Geo-politically stable locations Long life, low cost silver operations $195 million cash, no debt, unhedged High Potential Exploration success and future poten
Slide 5: Growing Hecla
Greens Creek Lucky Friday New Vancouver office Focused on internal growth and acquisitions: Mexico, Silver Valley, the world $195 million on hand, no debt $23 million exploration program San Sebastian Growing Hecla Growing Hecla La Camorra Coeur d’Alene Vancouver Operations Exploration Corporate Off
Slide 6: Mining Silver & Gold
Mining Silver & Gold Mining Silver & Gold ( For 116 Years!) 2007 Estimates Approx. 6 million ounces of silver Approx. 110,000- 115,000 ounces of gold 25,000 tons of zinc 24,000 tons of lead
Slide 7: Lucky Friday
Lucky Friday Lucky Friday Lucky Friday Location: Mullan, Idaho 2007 Estimate : 3.2 million ounces silver 18,000 tons lead 7,000 tons zinc Longest operating mine (nearly 60 years)
Slide 8: Lucky Friday Expansion Potential
Lucky Friday Lucky Friday Expansion Potential Expansion Potential
Slide 9: Lucky Friday: Vein & Intermediate Veins
Lucky Friday: 30 Vein Lucky Friday: 30 Vein & Intermediate Veins & Intermediate Veins
Slide 10: Lucky Friday: Going Deeper
8.4/4.4/0.2 4050 Level 4900 Level 5900 Level 6900 Level 7900 Level Conceptual layout #4 Shaft 17.6/11.4/0.9 18.3/11.4/11.9 26.3/28.8/7.8 3.8/4.5/0.3 Lucky Friday: Lucky Friday: Going Deeper Going Deeper Drill Holes Silver opt/Lead%/Zinc%
Slide 11: Silver Valley Production & Potential
Silver Valley Silver Valley Production & Potential Production & Potential Location: North Idaho Historic World Silver Producer: 1.2 Billion Oz. 300 million oz Silver from Hecla’s land position 25 square miles Very little modern exploration Hecla Land Position
Slide 12: Silver Valley Expansion Potential
Silver Valley Silver Valley Expansion Potential Expansion Potential
Slide 13: Greens Creek
Greens Creek Greens Creek Greens Creek Location: Admiralty Island, Alaska 29.73% joint venture with Rio Tinto 2007 Estimate: 2.7 million ounces silver 19,000 ounces gold 18,000 tons zinc 6,000 tons lead
Slide 14: MINING COMPANY
MINING COMPANY Sa Mr Greens Creek : 3 “ ~-—-Mine Site Image © 2006 MDA Earthgat Image © 2006'DigitalGlobs
Slide 15: Mining Company
MINING COMPANY
Slide 16: Slide 16
Slide 17: Mexican Silver Belt
Mexican Silver Belt Mexican Silver Belt Santa Eulalia Batopilas Parral San Dimas Fresnillo Zacatecas Real de Angeles Pachuca Guanajuato Taxco Real de Catorce Concepcion del Oro MEXICAN SILVER BELT 10.2 Billion Ounces of Historical Silver Production SAN SEBASTIAN
Slide 18: San Sebastian Exploration Targets
San Sebastian San Sebastian Exploration Targets Exploration Targets
Slide 19: Rio Grande Project: Exciting Early Results
Sacramento Sacramento vein vein Concepcion Concepcion vein vein (7.7 opt Ag, (7.7 opt Ag, 7.2 opt Ag) 7.2 opt Ag) La Soledad La Soledad vein and mine vein and mine (8.6 opt (8.6 opt Ag) Arcangeles Arcangeles vein vein San Martin San Martin vein vein (178 opt Ag) (178 opt Ag) El Leon El Leon vein vei
Slide 20: Hecla's Value is Silver
Hecla’s Value is Silver Hecla’s Value is Silver % of Hecla Value Gross profit 100% 0% Revenue 68% 32% * * * Quarter ended 9/30/07 Silver Operations Gold Operations
Slide 21: Consistently Low Silver Cash Costs
Consistently Low Consistently Low Silver Cash Costs Silver Cash Costs Hecla Hecla Silver Wheaton * Coeur * Pan American * Includes third-party production Weighted Average Silver Cash Costs Per Ounce 2003 – Qtr 2007 $1 $2 $3 $4
Slide 22: Lowest-Risk Silver
Lowest-Risk Silver Lowest-Risk Silver Reserves Reserves 0% 20% 40% 60% 80% 100% Location of Hecla’s Silver North America 100%
Slide 23: Exploration
Exploration Exploration 2007E United States $ 6.8 Mexico 7.7 Venezuela 3.7 Unallocated/Other* 4.3 Total Exploration $ 22.5 (in millions) * Includes Vancouver Office and Corporate Development
Slide 24: Project Pipeline
Project Pipeline Project Pipeline IDAHO Silver Valley 3D compilation 25-square-mile target area Lucky Friday ‘Gap’ area and deep underground drilling Lucky Friday mill upgrade Lucky Friday 4 Shaft & Expansion Prefeasibility MEXICO 340-square-mile target area: multiple targets Hugh Zone Rio Grande AL
Slide 25: Catalysts for Growth in Value
Catalysts for Growth Catalysts for Growth in Value in Value Additional value at Lucky Friday, San Sebastian and Greens Creek Prefeasibility milestones for increased production at Lucky Friday Generating new targets in the Silver Valley Advance San Sebastian “targets” to “discoveries” Merger and/or a
Slide 26: Poised for Growth
Poised for Growth Poised for Growth Opportunities Opportunities Potential $100+ million cash flow from producing properties Approximately $195 million cash and short-term investments $30 million credit facility Debt free Shelf Registrations in place Tax benefit from NOLs* *Net Operating Losses
Slide 27: Well-Staffed, Loyal & Experienced Team
Well-Staffed, Loyal Well-Staffed, Loyal & Experienced Team & Experienced Team 8 Executive Officers 179 years mining industry experience Technical Team 23 engineers 26 geologists 4 metallurgists (As of September 2007)
Slide 28: Silver Price Shines
Silver Price Shines Silver Price Shines Strong Demand Flat Supply Declining Inventories Rising Silver Price
Slide 29: GAAP Reconciliation to Cash Costs Per Ounce
GAAP Reconciliation to Cash Costs GAAP Reconciliation to Cash Costs Per Ounce Per Ounce HECLA MINING COMPANY Reconciliation of Cash Costs per Ounce to Generally Accepted Accounting Principles (GAAP)(1) (dollars and ounces in thousands, except per ounce – unaudited) Three Months Ended Nine Months End
Slide 30: GAAP Reconciliation to Cash Costs Per Ounce
GAAP Reconciliation to Cash Costs GAAP Reconciliation to Cash Costs Per Ounce Per Ounce HECLA MINING COMPANY Reconciliation of Cash Costs per Ounce to Generally Accepted Accounting Principles (GAAP)(1) (dollars and ounces in thousands, except per ounce – unaudited) Three Months Ended Nine Months End
Slide 31: GAAP Reconciliation to Cash Costs Per Ounce
GAAP Reconciliation to Cash Costs GAAP Reconciliation to Cash Costs Per Ounce Per Ounce HECLA MINING COMPANY Reconciliation of Cash Costs per Ounce to Generally Accepted Accounting Principles (GAAP)(1) (dollars and ounces in thousands, except per ounce – unaudited) Three Months Ended Nine Months End
Slide 32: Mining Company
= MINING COMPANY
Slide 33: Appendix: Industry Fundamentals
APPENDIX Industry Fundamentals
Slide 34: The Silver Price US$/oz
Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 average year-on- intra- year year 2006 $11.55 58.0% 42.7% Jan-Oct 2007 $13.16 17.1% 10.1% Source: GFMS Ltd. The Silver Price – The Silver Price – US$/oz US$/oz
Slide 35: Silver, Gold and Base Metals Prices
Jan-07 Apr-07 Jul-07 Oct-07 Silver, Gold and Base Silver, Gold and Base Metals Prices Metals Prices Nickel Copper Silver Zinc Tin Gold Source: GFMS Ltd.
Slide 36: World Silver Demand
Industrial 47% Photography 16% Jewelry & Silverware 25% Coins 4% Investment 7% De-Hedging 1% Industrial 51% Photography 15% Jewelry & Silverware 25% Coins 4% Investment 5% World Silver Demand World Silver Demand 2006 Actual 2007 Forecast Source: GFMS Ltd.
Slide 37: World Silver Supply
Mine Production 70% Scrap 21% Government Sales 9% Mine Production 74% Scrap 20% Hedging 2% Government Sales 4% World Silver Supply World Silver Supply Source : GFMS Ltd. Source : GFMS Ltd. : GFMS Ltd. 2006 Actual 2007 Forecast
Slide 38: Appendix: Supplemental Hecla Mining Information
APPENDIX Supplemental Hecla Mining Information
Slide 39: 2006 Financial Highlights
2006 2005 Revenue $217.4 $110.2 Gross Profit $ 73.4 $ 14.5 Net Income (Loss) $ 69.1 $ (25.4) Per share $ 0.57 $ (0.22) Cash Flow Provided by Operations (before exploration and pre-development) $ 89.9 $ 20.3 Exploration and pre-development $ 28.2 $ 27.1 Cash Flow Provided by (Used in) Operations $ 61
Slide 40: Hollister Block Sold
Hollister Block Sold Hollister Block Sold Hollister sold to Great Basin Gold on April 19, 2007 $45 million cash and $18.6 million in GBG stock Hecla’s investment $30 million Booked a gain in second quarter of $63 million
Slide 41: Capital Expenditures
2006 2007E Lucky Friday $ 9 $ 28 La Camorra Greens Creek (29.73%) 8 Total $ 27 $ 45 Capital Expenditures Capital Expenditures (in millions)
Slide 42: Acquisitions: Hecla has an Advantage
14-year history in the heart of Mexico’s silver district. Good presence, established team. Underground expertise – a strategic advantage in adding value to maintain low-cost profile More $ for silver exploration overall = more opportunities for Hecla -Gold acquisition advantage: a smaller threshold
Slide 43: La Camorra Unit
La Camorra Unit La Camorra Unit Location: Bolivar State, Venezuela 2007 Estimate: 90,000-100,000 ounces gold C arac as P uerto Orda z La Camorra
Slide 44: Venezuela Property Position
Venezuela Property Venezuela Property Position Position Carac as PuertoOrdaz MAP AREA
Slide 45: Mining Company
= MINING COMPANY