Hecla Mining Company · NYSE:HL
Hecla Mining — RBC Global Mining & Materials Conference 2017
95 slides from Hecla Mining's conference presentation, Jun 13, 2017
Slide 1: Corporate Update
June 2017 NYSE:HL Corporate Update Improving Productivity and Safety With Innovation
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: Why Invest in Hecla?
Why Invest in Hecla? Consistent strategy creates value NYSE:HL 1. N.A. Silver & Gold Exposure 2. Strong 2016; Better margins in 2017 Silver reserves 172.3 Moz Record $646 M Revenue Gold reserves 2 Moz Record 46.1 Moz AgEq1 Production Significant zinc and lead exposure All 4 mines perform
Slide 4: Strategy Created Per Share Value In 2016
Strategy Created Per Share Value In 2016 2017 focus is on improving productivity through innovation NYSE:HL Growth Captive Extend Price Cycles Mine Life Production Reserves & Cash-Flow Resources Long-Lived Capture Price Cycles Low-Cost Mines Improve High Productivity High Return Investment
Slide 5: Hecla Advancing Innovation Quickly
Hecla Advancing Innovation Quickly Partial implementation has meaningful value creation for Hecla NYSE:HL ORE SORTING AT SURFACE INITIAL TEST IMPLEMENTATION ELECTRIC VEHICLES UNDERGROUND IN PROGRESS ORE SORTING CONTINUOUS MUCKING NOT STARTED ELECTRIC MINE SMART ELECTRIC U/G MINING FULLY MECHANICAL C
Slide 6: Innovation: A Key to Maximizing Value
Innovation: A Key to Maximizing Value Is the industry at a tipping point like the late ‘70’s? NYSE:HL Those who innovate will realize: Lower costs and higher margins Increased reserves Longer mine lives Better environmental/safety records The rest will struggle to An expanded horizon of ma
Slide 7: Added Moz of Reserves Over Past Years
Added 299 Moz of Reserves Over Past 10 Years Unchanged reserve despite replacing record production and lowest exploration budget NYSE:HL since 2009 250 200 Reserve Additions 172 Moz 150 100 Silver Ounces (millions) 299 Million Ounces 50 - (50) (100) Cumulative Production 127 M oz (150) (200) 2007 20
Slide 8: Gold & Silver 2016 Reserve Prices
Gold & Silver 2016 Reserve Prices Hecla’s price assumption assures high margin ounces NYSE:HL HL Reserve $20.00 Year $18.50 Prices $17.50 $18.00 $18.00 $18.00 $16.29 $16.50 2012 $26.50 $14.50 $15.00 2013 $20.00 2014 $17.25 2015 $14.50 2016 $14.50 Hecla Fresnillo Endeavour Agnico Coeur Silver Goldcor
Slide 9: Two Of The Ten Highest Grade Mines In The World
Two Of The Ten Highest Grade Mines In The World Lucky Friday not far behind NYSE:HL 6. 10. –9–
Slide 10: Higher Grade Mines Than Peers
Higher Grade Mines Than Peers BMO silver coverage, silver equiv. reserves vs. grade NYSE:HL 1,600 800 Higher Grades Silver Eq. Reserves (Moz) 1,200 600 Reserve Grade (g/t) 800 400 400 200 0 0 FRES THO BCM PAAS* HL* CDE* SSRI* FVI HOC FR EDR* MAG Silver Other Metals Silver Eq Grade *Reserve and resou
Slide 11: Significant Resource Growth
Significant Resource Growth 28% growth in inferred silver ounces positions Hecla for strong future reserve growth NYSE:HL Silver Gold Million Oz Million Oz 463.9 4.9 4.7 362 161.3 171.6 1.7 1.8 M&I Inferred M&I Inferred 2015 2016 2015 2016 Zinc Lead Copper 1,044 739 1,008 1,433 667 538 572 1,029 580
Slide 12: Captured Higher Prices with Growing Production
Captured Higher Prices with Growing Production Base metals in 2nd half of 2016 and possibly 2017 NYSE:HL Silver Price Gold Price $22.00 $1,400 $20.00 $1,300 $18.00 $1,200 $16.00 $1,100 $14.00 $12.00 $1,000 Zinc Price Lead Price $1.40 $1.20 $1.30 $1.10 $1.20 $1.00 $1.10 $1.00 $0.90 $0.90 $0.80 $0.80
Slide 13: Strong Financial Performance
Strong Financial Performance NYSE:HL Net Income Adjusted EBITDA2 $27 M $54 M $47 M +$27 M +16% -$1 M Q1/2016 Q1/2017 Q1/2016 Q1/2017 Outperformed Peer Share Prices Increasing Liquidity & Decreasing Debt Metrics 300% Hecla $313 M 250% Peer Average 1.1x 200% +188% $100 M +59% (63%) 150% 100% +85% $213
Slide 14: Diversified Revenue Stream Q1/2017
Diversified Revenue Stream Q1/2017 Mitigates risk and enhances economics NYSE:HL #1 Silver and #3 Lead and Zinc Producer in the U.S. Greens Creek 37% 37% 41% of Total Revenue Silver Production: 3.4 Moz Cash Costs, after by-product 8% Zinc Production: 15.5 Ktons 18% Realized Price: $1.26/oz credits:
Slide 15: Strong Silver and Gold Margins
Strong Silver and Gold Margins 95% silver cash margin is one of the industry’s highest NYSE:HL Silver Margins Gold Margins 52% 78% 81% 82% 95% 32% 27% 79% 34% 33% 4 4 -15-
Slide 16: Q1 2017 Mine Cash Flow Generation
Q1 2017 Mine Cash Flow Generation San Sebastian and Greens Creek major contributors NYSE:HL Combined Hecla’s Four Operating Mines Generated $38.3 M in Operating Cash Flow and $16.6 in Free Cash Flow5 $38.3 43% Conversion to Free Cash Flow5 $16.6 $(21.7) Operating Cash Flow Capex Free Cash Flow Numbe
Slide 17: Improving Debt Metrics
Improving Debt Metrics Q1 2017 NYSE:HL LTM* Adjusted EBITDA2 Net Debt/LTM Adjusted EBITDA3 $265 M $272 M $234 M 2.0x $177 M 1.4x 1.2x 1.1x LTM Q2 2016 LTM Q3 2016 LTM Q4 2016 LTM Q1 2017 LTM Q2 2016 LTM Q3 2016 LTM Q4 2016 LTM Q1 2017 Total liquidity ~$313 m $506 M high yield notes due 2021 Ne
Slide 18: Strategy Has Grown Per Share Metrics
Strategy Has Grown Per Share Metrics Strong operations combined with disciplined share issuance NYSE:HL Silver Equivalent Production Per Share Operating Cash Flow Per Share 2012-2016 CAGR 2012-2016 CAGR Hecla Hecla Peer Group Peer Group Average Average 0% +21% +33% -6% Peer group includes Silver Sta
Slide 19: North American Focused Asset Portfolio
North American Focused Asset Portfolio Operations in low-risk & mining-friendly jurisdictions NYSE:HL –19–
Slide 20: A Roadmap for Further Value and Growth Creation
A Roadmap for Further Value and Growth Creation NYSE:HL A Strong Immediate Securing The Foundation Growth Long-Term Future Greens Creek Productivity Existing Mines Greens Creek Lucky Friday #4 Shaft Lucky Friday Rock Creek Casa Berardi Casa Berardi EMCP pit Montanore San Sebastian Exploration Drilli
Slide 21: Greens Creek
Greens Creek Consistent low-cost production in a wilderness area / National Monument NYSE:HL 2016 Q1 2016 Q1 2017 2017E Silver Production (Moz) 9.3 2.5 1.9 7.4 - 8.0 Gold Production (koz) 54 16 14 54 – 60 Cost of Sales $191.3 M $44.9 M $44.0 M $228 M Cash cost, after by-product $3.84/oz $3.96/oz $0.
Slide 22: Connectivity Is Key To Increased Safety & Productivity
Connectivity Is Key To Increased Safety & Productivity NYSE:HL Improving Mining Based On Data Ventilation on Demand Will Be Fully Functioning in 2017 -22-
Slide 23: Creating Value During The Shift Change
Creating Value During The Shift Change Automated LHD operates during shift change/blasting increasing productivity NYSE:HL Blasting & Blasting & Shift Change Shift Change Utilization Operating Operating Operating Hours in the Day -23-
Slide 24: Automated LHD Already At Work
Automated LHD Already At Work Purchased the MINExpo demo unit NYSE:HL –24–
Slide 25: Hecla Has Significantly Improved Recoveries
Hecla Has 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% Compl
Slide 26: Resource Conversion to Reserves
Resource Conversion to Reserves 80% historic resource conversion rate to reserves NYSE:HL Indicated: 510,100 silver East Ore Resource Main Ramps ounces and 5,500 gold ounces Mined Stopes Inferred: 12.6 million silver ounces and 112,000 gold Reserve Plan ounces Measured Resource Indicated Resource In
Slide 27: Three Trends In Three Fault Blocks
Three Trends In Three Fault Blocks Targets up and down plunge and in the 3rd fault block NYSE:HL -27-
Slide 28: Greens Creek Drilling
Greens Creek Drilling Adding shallow reserves near mine portal NYSE:HL -28-
Slide 29: Lucky Friday
Lucky Friday Positioning for growth and longevity NYSE:HL 2016 Q1 2016 Q1 2017 2017E Silver Production (Moz) 3.6 .977 .681 TBD Cost of Sales $76.2 M $18.5 M $14.5 M TBD Cash cost, after by-product $8.89/oz $9.05/oz $5.93/oz TBD credits, per silver oz4 AISC, after by-product $20.66/oz $21.78/oz $12.0
Slide 30: Activities During the Strike
Activities During the Strike Upgrading infrastructure in preparation for resolution of strike NYSE:HL Completed a necessary ventilation change on the new 6500 level Added a pumping connection between the #4 Shaft and Silver Shaft Additional development and limited production are planned, shoul
Slide 31: Lucky Friday Grade Improving With Depth
Lucky Friday Grade Improving With Depth Trend expected to continue in the future NYSE:HL Trendline -31-
Slide 32: #4 Shaft
#4 Shaft Increasing grade with depth NYSE:HL Shaft is now operational Production growth expected from higher-grade ore at depth Silver Shaft 4050 Level #4 Shaft ORE GRADE VALUES *AgEq Grade (opt) 4900 Level Mining Activity > 24 5900 Level 18 - 24 12 - 18 5900 Level 6 - 12 6500 Level <6 Dec. 31,
Slide 33: #4 Shaft Gives Access to the High Grade Zone
#4 Shaft Gives Access to the High Grade Zone Reserve grade 4 ounces higher than 2013, production grade increasing 0.5oz/yr NYSE:HL 20 Years Past Mining ORE GRADE VALUES *AgEq Grade (opt) Mine Face (Galena) > 24 97.2 opt Silver 18 - 24 6500 Level 47.5% Lead 12 - 18 6 - 12 <6 7500 Level 900’@ +24 opt
Slide 34: #4 Shaft Is Fully Operational
#4 Shaft Is Fully Operational Waste being moved off 6500, ore later this year NYSE:HL –34–
Slide 35: Lucky Friday - New Mining Technique
Lucky Friday - New Mining Technique Increase cash flows, lower development NYSE:HL Standard LFUL: Current approach 5 cuts per ramp Optimized LFUL: New approach 10 cuts per ramp Lower development expenditure Stopes turn around faster –35–
Slide 36: Continuing Testing Battery Powered LHD
Continuing Testing Battery Powered LHD Technology could reduce ventilation needs vs diesel NYSE:HL -36-
Slide 37: Continuous Mechanical Cutting To Eliminate Drill/Blast
Continuous Mechanical Cutting To Eliminate Drill/Blast A 5-year investment that could revolutionize some mines NYSE:HL Could Improve Safety and Productivity Atlas Copco Test Mine 2016 -37-
Slide 38: Casa Berardi
Casa Berardi Making a good mine great NYSE:HL 2016 Q1 2016 Q1 2017 2017E Gold Production (koz) 146 30.4 36 150 – 165 Cost of Sales $155.7 M $29.2 M $42.5 M $170 M Cash cost, after by- product credits, per gold $764/oz $781/oz $886/oz $800/oz oz4 AISC, after by-product $1,244/oz $1,322/oz $1,256/oz $
Slide 39: Casa Berardi
Casa Berardi Increased throughput more than 100% NYSE:HL Trendline -39-
Slide 40: EMCP Pit is Transforming Casa Berardi
EMCP Pit is Transforming Casa Berardi Creating value NYSE:HL Optimizing the mill: ~2,300 tpd (2015A) to ~3,400 tpd (2017E), adds 5,000 Au oz (2016E) and 30,000 Au oz (2017E) Increasing operating flexibility: More consistent operations Strong Returns: IRR of 90%* Location of EMCP Pit *Report pr
Slide 41: EMCP Continues to Expand
EMCP Continues to Expand 2016 to today shows how the pit has expanded NYSE:HL April 2016 April 2017 -41-
Slide 42: Investing in Productivity Improvements
Investing in Productivity Improvements NYSE:HL Automated Shaft and Jumbo/Stope Drill Rock Breakers Automation: Drilling During Shift Change $200K investment Adds 15M/day Internally sourced Increased drilling Increases efficiency accuracy 2 automated drills in operation 1 stope drill Tr
Slide 43: 985 Automation in 2017
985 Automation in 2017 Two 40 tonne Sandvik trucks should save $5M, lessons for other operations NYSE:HL 123 & 118 Lower 985 Automated Drift -43-
Slide 44: First Automated Truck Arrives in 2017
First Automated Truck Arrives in 2017 Modeled after the Williams operation NYSE:HL Surface control center Optical scanner & camera Safety gated area -44-
Slide 45: Automated trucking level: Autonomous Navigation System
Automated trucking level: No surface operation required, fully autonomous NYSE:HL 985 Automated haulage level DUMP POINTS CHUTE 1 FIXED BARRIERS ACCESS BARRIER Zone 118 CHUTE 2 Autonomous Navigation System CHUTE 3 Zone 123 CHUTE 4 ACCESS BARRIER -45-
Slide 46: Twelve Drills For Surface and Underground Targets
Twelve Drills For Surface and Underground Targets $5 million of exploration planned in 2017 NYSE:HL -46-
Slide 47: Casa Berardi Plan View
Casa Berardi Plan View Surface view showing potential series of open pits NYSE:HL -47-
Slide 48: Casa Berardi
Casa Berardi Drilling the west extensions of the Casa Berardi fault and splays NYSE:HL -48-
Slide 49: San Sebastian
San Sebastian Just-in-time mining; looking to make it a long-term mine NYSE:HL 2016 Q1 2016 Q1 2017 2017E Silver Production (Moz) 4.3 1.2 751 koz 3.0 – 3.4 Gold Production (koz) 34 9.3 6.3 21 – 25 Cost of Sales $31.2 M $7.7 M $6.6 M $36 M Cash cost, after by-product $(3.35)/oz $(3.26)/oz $(3.27)/oz
Slide 50: San Sebastian
San Sebastian Current open pits and mine life extensions NYSE:HL -50-
Slide 51: Mining Underground By The End of 2017
Mining Underground By The End of 2017 Access development is underway NYSE:HL North Portal CURRENT MIDDLE VEIN RESOURCE WEST MIDDLE VEIN EXPLORATION EAST MIDDLE VEIN DRILLING EXPLORATION DRILLNG North Ramp Under Construction Existing Workings -51-
Slide 52: San Sebastian Plan View
San Sebastian Plan View: Current open pits, development and exploration advances NYSE:HL RC DRILLING N TRACE OF NEW UG RAMP (IN PROGRESS) EAST MIDDLE VEIN EXPLORATION DRILLING MIDDLE VEIN EXPLORATION DRILLING MIDDLE VEIN INFILL DRILLING EXPLANATION EAST FRANCINE Q1 2017 Drilling Area EXPLORATION Vei
Slide 53: Middle Vein 1.5 Miles of Continuous Mineralization
Middle Vein 1.5 Miles of Continuous Mineralization Underground growing, deeper mineralization similar to Hugh Zone NYSE:HL MIDDLE VEIN LONGITUDINAL SECTION Mineralization (Looking NE) trends TRACE OF NEW UG RAMP MIDDLE VEIN Underground (IN PROGRESS) OPEN PIT Reserve 0.35 oz/ton gold, 0.05 oz/ton gol
Slide 54: East Francine
East Francine Expanding resources to the East NYSE:HL EAST FRANCINE VEIN LONGITUDINAL SECTION UNDERGROUND (Looking North) MINE EAST WORKINGS FRANCINE PIT Q1 EXPLORATION DRILLING AREA 0.03 oz/ton gold and 12.4 oz/ton silver over 7.0 feet 0.18 oz/ton gold and 12.2 oz/ton silver Mineralization over 4.3
Slide 55: How Else Does San Sebastian Become Sustainable?
How Else Does San Sebastian Become Sustainable? Ore sorting is a potential way of upgrading the ore NYSE:HL Ag Grade vs Recovery Initial results indicate a reduction of 100% Average Grade (ppm) Cumulative Recovery 6600 mass by 60% while maintaining 90% 80% 5600 of the silver and 93% of the gold 60
Slide 56: New Exploration Technology
New Exploration Technology Raman Spectroscopy – quicker, cheaper, and sufficient accuracy NYSE:HL Advantages Quick to analyze and interpret (Days) Vein stratigraphy not required Less expensive Disadvantages Less precise than Fluid Inclusions Measuring wall rock (indirect measurement of vei
Slide 57: Rock Creek & Montanore
Rock Creek & Montanore Final stages of permitting, expecting to advance in 2018 NYSE:HL Rock Creek Montanore Potential Mine Life 20-30 years each Hecla stock acquisition cost $19 M $54 M 148.1 Moz Ag / 183.4 Moz Ag / Big potential 1.3 Blbs Cu 1.5 Blbs Cu Advanced permitting SEIS Final EIS, RODs** We
Slide 58: Rock Creek & Montanore Silver Resources
Rock Creek & Montanore Silver Resources Larger than Hecla’s silver reserves NYSE:HL Total Hecla Rock Creek Montanore (proven & probable) (inferred resource) (inferred resource) 172.3 million oz. Silver 148.1 million oz. Silver 183.4 million oz. Silver 1.3 billion lbs. Copper 1.5 billion lbs. Copper
Slide 59: Interior Secretary Has Unique Experience
Interior Secretary Has Unique Experience Former Montana Congressman, geologist, knows the project NYSE:HL Ryan Zinke US Representative for Montana since 2015 (former state Senator) Geologist from Whitefish, Montana Has visited our sites Strong supporter of economic development in NW Montana
Slide 60: Rock Creek & Montanore
Rock Creek & Montanore: 2017 activities focused on advancing permitting NYSE:HL Rock Creek Montanore Project Schedule Project Schedule Mine Plan Mine Plan Project Cost Estimating and Financial Project Cost Estimating and Financial Modeling Modeling Continued Environmental Monitoring
Slide 61: Resources Are As Much As Hecla's Reserves
Resources Are As Much As Hecla’s Reserves Together are 40% the metal of Donlin Creek – significant unrealized value NYSE:HL Donlin Creek Rock Creek Montanore Average Analyst Value Average Analyst Value Nominal = $1.0 B3 1. Silver equivalent calculated using average prices for 2016 2. Resources inclu
Slide 62: 2017 Expectations
2017 Expectations Expectations will be updated once Lucky Friday strike has ended NYSE:HL Production Outlook Silver Production (Moz) Gold Production (Koz) Silver Equivalent (Moz)1 Gold Equivalent (koz)1 Greens Creek 7.4 – 8.0 54 - 60 22.8 – 23.9 322 - 336 Lucky Friday TBD - TBD TBD San Sebastian 3.0
Slide 63: Continuing to Execute the Strategy
Continuing to Execute the Strategy Expect good per share results NYSE:HL Growth Captive Extend Price Cycles Mine Life Production Reserves & Cash-Flow Resources Long-Lived Capture Price Cycles Low-Cost Mines Improve High Productivity High Return Investments Return Investments LONG TERM GO
Slide 64: Appendix
MINING COMPANY NYSE:HL Appendix -64-
Slide 65: Safety First
Safety First First hardrock mining company to complete NMA CORESafety program NYSE:HL Hecla All Injury Frequency Rate (AIFR) 7 6.06 6 5.35 5.41 5 4.57 Incident Rate 4 3.42 3 2 1 0 2012 2013 2014 2015 2016 -65-
Slide 66: Endnotes
Endnotes NYSE:HL 1. Silver equivalent is calculated using the average market prices for the time period noted. 2. This presentation refers to a non-GAAP measure of adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), which is a measure of our operating perform
Slide 67: Items of Note
Items of Note NYSE:HL Expect to begin depreciating the #4 Shaft in Q2 ▸ Total depreciation for 2017 estimated to be $143 million G&A increased in 2016 due to accrual for the Annual Incentive Plan and Long Term Incentive Plan based on strong performance against long-term goals and against peers
Slide 68: Silver and Gold Margin Expansion
Silver and Gold Margin Expansion NYSE:HL Silver Margin Gold Margin $21.28 $18.46 $17.16 $1,317 $15.57 $1,262 $1,245 $1,150 82% $366 28% $14.44 $436 35% 68% 74% $378 33% $481 39% 62% $13.65 $9.72 $14.06 $951 $826 $772 $764 $6.84 $5.85 $4.81 $3.10 2013 2014 2015 2016 2013 2014 2015 2016 Cash Margin Ca
Slide 69: RCT Truck Guidance
RCT Truck Guidance NYSE:HL Guidance Install Progress ▸ Fully installed on truck 4213 ▸ Commissioning of system complete ▸ Training of operators to start soon ▸ Able to run in mainline and ramps Operator assist system ▸ Not Autonomous ▸ System controls throttle, brakes, and steering ▸ Utilizes fo
Slide 70: Increasing Share of Modern Demand
Increasing Share of Modern Demand NYSE:HL Modern demand increased from 260 Moz in 1992 to 544 Moz in 2014, an increase of 109%, and an annualized increase of 4.0% 0% 5% 43% 36% 29% 30% Modern Modern 24% 29% 4% 1992 2015E Modern Investment Jewelry & Silverware Photography Coins & Medals Source - GFMS
Slide 71: Silver Consumption per Capita Increases
Silver Consumption per Capita Increases NYSE:HL Increasing Silver Consumption Per Person in China and India 0.80 0.80 Japan 0.70 0.70 South Korea 0.60 0.60 Silver Ounce Per Capita Silver Ounce Per Capita 0.50 0.50 United Japan 0.40 0.40 States Germany 0.30 0.30 United 0.20 States 0.20 Germany South
Slide 72: Advancing Quebec Exploration Projects
Advancing Quebec Exploration Projects NYSE:HL PROPERTY COMMENTS CASA BERARDI JV 50:50 Joint Venture with Lake Shore Gold Corp. OPINACA CDN$0.7 M to spend by Nov 2017 for earning a 50% interest from Everton Resources Inc. and Azimut Exploration Inc. WILDCAT 100% Hecla Québec. 1.0% NSR to Everton on 2
Slide 73: Heva-Hosco on the Famous Cadillac Break
Heva-Hosco on the Famous Cadillac Break Exploring for the deeper trend mineralization NYSE:HL Lapa Mine Projected 1.08M oz Au -73-
Slide 74: Opinaca/Wildcat
Opinaca/Wildcat In the shadow of Eleonore NYSE:HL -74-
Slide 75: Focusing on Potential High-Grade Underground Zones
Focusing on Potential High-Grade Underground Zones NYSE:HL –75–
Slide 76: Proven & Probable Mineral Reserves
Proven & Probable Mineral Reserves (on Dec. 31, 2016 unless otherwise noted) NYSE:HL (a) Mineral reserves are based on $1200 gold, $14.50 silver, $0.90 lead, $1.05 zinc, unless otherwise stated. (1) Mineral reserves are based on $1200 gold and a US$/CAN$ exchange rate of 1:1.4 Reserve diluted to an
Slide 77: Measured and Indicated Mineral Resources
Measured and Indicated Mineral Resources (on Dec. 31, 2016 unless otherwise noted) NYSE:HL -77-
Slide 78: Inferred Mineral Resources
Inferred Mineral Resources (on Dec. 31, 2016 unless otherwise noted) NYSE:HL (b) Mineral resources are based on $1350 gold, $21 silver, $0.95 lead, $1.10 zinc and $3.00 copper, unless otherwise stated. (2) Measured and indicated resources from Gold Hunter and Lucky Friday vein systems are diluted an
Slide 79: 2006 – 2015 Reserve Table
2006 – 2015 Reserve Table NYSE:HL Silver Silver Gold Silver Gold Proven Reserves Tons (oz/ton) Gold (oz/ton) (ounces) (ounces) 2011 Proven Reserves Tons (oz/ton) Gold (oz/ton) Silver (ounces) (ounces) 2006 Proven Reserves Greens Creek - - - - - Greens Creek (29.73%) - - - - - Lucky Friday 2,345,500
Slide 80: AISC Reconciliation
AISC Reconciliation Expecting lower AISC in 2017 NYSE:HL Total Silver Properties and Corporate Year Ended In thousands (except per ounce amounts) December 31, Estimate for 2016 2017 Cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) $ 298,740 $ 357,40
Slide 81: Cash Cost Reconciliation to GAAP
Cash Cost Reconciliation to GAAP Silver Operations NYSE:HL Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization, the most comparable GAAP measurement, After By-product Credits, per Silver Ounce for Greens Creek, Lucky Friday and San Sebastian
Slide 82: AISC Reconciliation to GAAP
AISC Reconciliation to GAAP Silver Operations NYSE:HL Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to All- In Sustaining Costs, Before By-product Credits, per Ounce and All-In Sustaining Costs, After By-product Credits, per Oun
Slide 83: Cash Cost Reconciliation to GAAP
Cash Cost Reconciliation to GAAP Greens Creek NYSE:HL Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to All- In Sustaining Costs, Before By-product Credits, per Ounce and All-In Sustaining Costs, After By-product Credits, per Oun
Slide 84: AISC Reconciliation to GAAP
AISC Reconciliation to GAAP Greens Creek NYSE:HL Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to All- In Sustaining Costs, Before By-product Credits, per Ounce and All-In Sustaining Costs, After By-product Credits, per Ounce (n
Slide 85: Cash Cost Reconciliation to GAAP
Cash Cost Reconciliation to GAAP Lucky Friday NYSE:HL Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to All- In Sustaining Costs, Before By-product Credits, per Ounce and All-In Sustaining Costs, After By-product Credits, per Oun
Slide 86: AISC Reconciliation to GAAP
AISC Reconciliation to GAAP Lucky Friday NYSE:HL Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to All- In Sustaining Costs, Before By-product Credits, per Ounce and All-In Sustaining Costs, After By-product Credits, per Ounce (n
Slide 87: Cash Cost Reconciliation to GAAP
Cash Cost Reconciliation to GAAP San Sebastian NYSE:HL Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to All- In Sustaining Costs, Before By-product Credits, per Ounce and All-In Sustaining Costs, After By-product Credits, per Ou
Slide 88: AISC Reconciliation to GAAP
AISC Reconciliation to GAAP San Sebastian NYSE:HL Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to All- In Sustaining Costs, Before By-product Credits, per Ounce and All-In Sustaining Costs, After By-product Credits, per Ounce (
Slide 89: Cash Cost Reconciliation to GAAP
Cash Cost Reconciliation to GAAP Casa Berardi NYSE:HL Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to All- In Sustaining Costs, Before By-product Credits, per Ounce and All-In Sustaining Costs, After By-product Credits, per Oun
Slide 90: AISC Reconciliation to GAAP
AISC Reconciliation to GAAP Casa Berardi NYSE:HL Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to All- In Sustaining Costs, Before By-product Credits, per Ounce and All-In Sustaining Costs, After By-product Credits, per Ounce (n
Slide 91: Cash Cost GAAP Reconciliation
Cash Cost GAAP Reconciliation Silver Operations NYSE:HL Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization, the most comparable GAAP measurement to Cash Costs, After By-Product Credits, per Silver Ounce, for Greens Creek, Lucky Friday & San
Slide 92: Cash Cost GAAP Reconciliation
Cash Cost GAAP Reconciliation Casa Berardi NYSE:HL Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization, the most comparable GAAP measurement to Cash Costs, After By-Product Credits, per Gold Ounce, for Casa Berardi1 (dollars in thousands, ex
Slide 93: Adjusted EBITDA Reconciliation and Net Debt Reconciliation to GAAP
Adjusted EBITDA Reconciliation and Net Debt Reconciliation to GAAP NYSE:HL Numbers in thousands (USD) Reconciliation of Net Income (Loss) (GAAP) to Adjusted EBITDA (non-GAAP) For the Twelve Months Ended 31-Mar-17 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 Net Income (Loss) $ 96,999 $ 69,547 $ (13,676)
Slide 94: Reconciliation Cash Provided by Operating Activities to Free Cash Flow
Reconciliation Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP) NYSE:HL Dollars are in thousands Three Months Ended March 31, 2017 2016 Cash provided by operating activities $ 38,285 $ 18,748 Less: Additions to properties, plants equipment and mineral (21,658) (34,654) inter
Slide 95: Greens Creek Free Cash Flow Reconciliation
Greens Creek Free Cash Flow Reconciliation NYSE:HL 1987-2016 Dollars are in thousands Performance Gross Revenues $4,961,131 Treatment Charges (958,927) Net Revenues 4,002,204 Freight & Selling Expense (195,474) Net Smelter Return 3,806,730 Cost of Goods Sold (1,775,194) NonCash Costs (612,052) Explo
Hecla Mining Company — RBC Global Mining & Materials Conference 2017 on 6ix