Hecla Mining Company · NYSE:HL
Hecla Mining — Merger or Acquisition (July 2022)
17 slides from Hecla Mining's merger presentation, Jul 5, 2022
Slide 1: Alexco Acquisition: America's Largest Silver Miner To Become Canada's Largest
ALEXCO ACQUISITION America’s Largest Silver Miner To Become Canada’s Largest July 5, 2022 RESPONSIBLE. SAFE. INNOVATIVE. NYSE: HL
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS 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 intended
Slide 3: Cautionary Statements (cont'd)
CAUTIONARY STATEMENTS (cont’d) Information About Each Company Information in this news release about Hecla has been provided by, and is the responsibility of, Hecla. For further information about Hecla, please refer to Hecla’s SEC filings, including its Annual Report on Form 10-K filed on February 2
Slide 4: Acquisition Consistent With Strategic Drivers
ACQUISITION CONSISTENT WITH STRATEGIC DRIVERS Achieves the 8 key factors that Hecla considers for internal and external investments Highly Prospective and Top-Rated Mining Jurisdiction Among the World’s Highest-Grade Silver Deposits ALEXCO KENO HILL Long Mine Life SILVER DISTRICT Increase Throughput
Slide 5: Transaction Summary
TRANSACTION SUMMARY • Acquisition by Plan of Arrangement Transaction Structure • Unanimous approval by Alexco’s Special Committee and Board of Directors • Alexco shareholders to receive 0.116 of one Hecla common share for each Alexco common share Consideration • A 23% premium over the 5-day volume w
Slide 6: Benefits for Alexco Shareholders
BENEFITS FOR ALEXCO SHAREHOLDERS Acquisition enhances the future potential for Keno Hill • Hecla’s technical expertise in high-grade Benefits for Alexco Shareholders narrow vein silver mining positions Keno Hill to achieve its full potential ✓ Immediate up-front premium • Hecla’s organizational stre
Slide 7: Hecla's Ability to Unlock Value
HECLA’S ABILITY TO UNLOCK VALUE Hecla has shown innovation and continuous investment with its assets Greens Creek Lucky Friday • Since the acquisition of Greens Creek in 2008, Hecla • Lucky Friday’s continuous improvement in reserves and has increased throughput by 15%, continued to production exemp
Slide 8: Keno Hill Silver District Overview
KENO HILL SILVER DISTRICT OVERVIEW Historical Production of over 200 million ounces of silver at 40 oz Ag per ton • Property contains excellent exploration potential to host deposits similar in size and grade to the Hector-Calumet, Bermingham, or Flame and Moth deposits • Numerous untested or poorly
Slide 9: Strong History of Resource Growth at Keno Hill
STRONG HISTORY OF RESOURCE GROWTH AT KENO HILL Hecla’s reserves and resources have grown 4 times since 2004 Increase of Alexco’s Resources (2009 – 2021) Hecla: Silver Reserves, Measured & Indicated Resources Indicated Ag (Moz) Inferred Ag (Moz) 250 140 120 200 Ag Ounces (Moz) 100 150 80 60 100 40 50
Slide 10: Acquisition Highlights
ACQUISITION HIGHLIGHTS Consistent with strategy and expertise Among the World’s Highest-Grade Silver Deposits Highly Prospective and Top-Rated Mining Jurisdiction Aligned on Community and Environmental Stewardship Poised to Unlock Value at Keno Hill Significant Exploration Upside Ideal Portfolio Fit
Slide 11: Appendix
Appendix NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 11
Slide 12: Alexco Reserves & Resource Summary
ALEXCO RESERVES & RESOURCE SUMMARY MINERAL RESERVES Contained Metal (000 Contained Metal Contained Metal Contained Metal Deposit Category Tonnes Ag (g/t) Pb %) Zn (%) Au (g/t) oz Ag) (000 oz Au) (M Ibs Pb) (M Ibs Zn) Bellekeno Probable 12,809 936 13.0 7.3 0 385 0 4 2 Bellekeno Surface Stockpile Prob
Slide 13: Proven & Probable Mineral Reserves
PROVEN & PROBABLE MINERAL RESERVES(1) (On December 31, 2021 unless otherwise noted) Investors are cautioned that Reserves and Resources are as of December 31, 2021, and are dynamic during the year due to mining depletion, changing metal prices, changing costs or project NYSE: HL economics, and new d
Slide 14: Measured and Indicated Mineral Resources
MEASURED AND INDICATED MINERAL RESOURCES (On December 31, 2021 unless otherwise noted) Measured Resources (8) Silver Gold Lead Zinc Copper Silver Gold Lead Zinc Copper Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % % (000 oz) (000 oz) (Tons) (Tons) Tons Greens Creek (11,12) United States
Slide 15: Inferred Mineral Resources
INFERRED MINERAL RESOURCES (On December 31, 2021 unless otherwise noted) Inferred Resources (10) Silver Gold Lead Zinc Copper Silver Gold Lead Zinc Copper Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % % (000 oz) (000 oz) (Tons) (Tons) Tons Greens Creek (11,12) United States 100.0% 2,152
Slide 16: Mineral Resources Footnotes
MINERAL RESOURCES FOOTNOTES (7) The term "mineral resources" means a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable es
Slide 17: 2010 – 2020 Reserve Table
2010 – 2020 RESERVE TABLE Tons Silver Gold Silver Gold Tons Silver Gold Silver Gold 2010 Proven Reserves (000) (oz/ton) (oz/ton) (000 oz) (000 oz) 2017 Proven Reserves (000) (oz/ton) (oz/ton) (000 oz) (000 oz) Greens Creek - - - - - Greens Creek 7 12.2 0.09 89 1 Lucky Friday 1,642 12.4 - 20,388 - Lu
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