Hecla Mining Company · NYSE:HL
Hecla Mining — Q3 2024 Earnings Presentation
26 slides from Hecla Mining's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Conference Call
Largest Silver Producer in U.S. and Canada THIRD QUARTER 2024 Conference Call RESPONSIBLE. SAFE. INNOVATIVE.
Slide 2: Cautionary Statements
HECLA MINING COMPANY NYSE: HL CAUTIONARY STATEMENTS THIRD QUARTER 2024 CONFERENCE CALL Cautionary Statement Regarding Forward-Looking Statements Kurt D. Allen, MSc., CPG, VP - Exploration of Hecla Mining Company and Keith Blair, MSc., CPG, Chief Geologist of Hecla Limited, who serve as a Qualified P
Slide 3: Leading Silver Producer in the World's Best Mining Jurisdictions
HECLA MINING COMPANY NYSE: HL 133 YEARS OF TIME-TESTED SUCCESS THIRD QUARTER 2024 CONFERENCE CALL Leading Silver Producer in the World’s Best Mining Jurisdictions Largest U.S. and Canadian silver producer, 3rd largest Best In Class Silver Portfolio primary silver producer globally High-Quality Portf
Slide 4: Financial Review
FINANCIAL REVIEW RESPONSIBLE. SAFE. INNOVATIVE. 4
Slide 5: 2024 Focus: Deleveraging and Organic Investment
HECLA MINING COMPANY NYSE: HL 2024 FOCUS: DELEVERAGING AND ORGANIC INVESTMENT THIRD QUARTER 2024 CONFERENCE CALL 2024 Capital Allocation Priorities: Free Cash Flow: Continued Significant progress Greens Creek, Lucky Friday ($ Million) Invest in Keno Hill Free Cash Flow (2) Mined 2.5 Moz, produce
Slide 6: Free Cash Flow Generation Drives Investment
HECLA MINING COMPANY NYSE: HL FREE CASH FLOW GENERATION DRIVES INVESTMENT THIRD QUARTER 2024 CONFERENCE CALL Q3/2024 Cash Flows ($ Million) Cash flow from operations ATM opportunistically invested in capital, organic targeted to de-lever growth from the revolver 55.0 57.3 Includes Includes revolver
Slide 7: Third Quarter Financial Highlights
HECLA MINING COMPANY NYSE: HL THIRD QUARTER FINANCIAL HIGHLIGHTS THIRD QUARTER 2024 CONFERENCE CALL Q3/24 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 Achieved target of < 2x increasin
Slide 8: Operational Review
OPERATIONAL REVIEW RESPONSIBLE. SAFE. INNOVATIVE. 8
Slide 9: Greens Creek: Flagship Mine, Strong Free Cash Flow Generation
GREENS CREEK: FLAGSHIP MINE, STRONG FREE CASH FLOW HECLA MINING COMPANY NYSE: HL GENERATION THIRD QUARTER 2024 GREENS CREEK CONFERENCE CALL Production of 1.9Moz, five days of unplanned mill maintenance in Q3/24 resulted in lower throughput of 2,314 tons per day (“tpd”), lower silver production Mi
Slide 10: Lucky Friday: Innovation Driven Growth
HECLA MINING COMPANY NYSE: HL LUCKY FRIDAY: INNOVATION DRIVEN GROWTH THIRD QUARTER 2024 LUCKY FRIDAY CONFERENCE CALL Second highest mill quarterly throughput at 1,133 tpd. 1.2Moz of silver production due to lower milled grades Lower mill throughput due to installation and commissioning of new cyc
Slide 11: Casa Berardi: Executing on Surface Transition Plan
HECLA MINING COMPANY NYSE: HL CASA BERARDI: EXECUTING ON SURFACE TRANSITION PLAN CASA THIRD QUARTER 2024 BERARDI CONFERENCE CALL Long-term value creation with 14-year reserve mine plan Continued focus on cost containment Mining higher margin stopes of west underground mine, expected until mid-20
Slide 12: Keno Hill: Largest Silver Producer in Canada
HECLA MINING COMPANY NYSE: HL KENO HILL: LARGEST SILVER PRODUCER IN CANADA THIRD QUARTER 2024 KENO HILLCALL CONFERENCE On track to achieve production guidance For 2024: 2.5Moz silver mined (as of October 26), 2.1Moz produced Lower milled throughput in Q3/2024 related to delays in receiving autho
Slide 13: Underground Drilling Continues to Identify Opportunity at Bermingham and Flame & Moth
HECLA MINING COMPANY UNDERGROUND DRILLING CONTINUES TO IDENTIFY OPPORTUNITY WITHIN NYSE: HL THE BERMINGHAM AND FLAME & MOTH MINES THIRD QUARTER 2024 KENO HILLCALL CONFERENCE Continued Strong Results from Underground Infill Drilling; 2024 Surface Exploration Drilling In Progress Underground Drilling
Slide 14: Underground Drilling: Bermingham and Flame & Moth Long Sections
HECLA MINING COMPANY UNDERGROUND DRILLING CONTINUES TO IDENTIFY OPPORTUNITY WITHIN NYSE: HL THE BERMINGHAM AND FLAME & MOTH MINES THIRD QUARTER 2024 KENO HILLCALL CONFERENCE Strong Results from Underground Infill Drilling at Both Bermingham and Flame & Moth Veins Bermingham Footwall Vein Longitudina
Slide 15: Guidance – Strong Silver Margins and Production
HECLA MINING COMPANY NYSE: HL GUIDANCE – STRONG SILVER MARGINS AND PRODUCTION THIRD QUARTER 2024 CONFERENCE CALL Silver Production (Moz) Gold Production (Koz) Silver Equivalent (Moz)6 Gold Equivalent (Koz)6 Previous Current Previous Current Previous Current Previous Current 2024 Greens Creek * 8.8 –
Slide 16: Appendix
APPENDIX End Notes and GAAP reconciliations RESPONSIBLE. SAFE. INNOVATIVE. 16
Slide 17: End Notes
HECLA MINING COMPANY NYSE: HL END NOTES THIRD 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 18: GAAP Reconciliations
GAAP RECONCILIATIONS RESPONSIBLE. SAFE. INNOVATIVE. 18
Slide 19: Last Twelve Months Adjusted EBITDA
HECLA MINING COMPANY NYSE: HL LAST TWLEVE MONTHS ADJUSTED EBITDA THIRD QUARTER 2024 CONFERENCE CALL Reconciliation of Net Loss (GAAP) to Adjusted EBITDA (non-GAAP) Last Twelve Months Q3 2024 Q2 2024 Dollars in thousands (USD) Net loss $ (19,057) $ (43,233) Interest expense 48,183 47,992 Income and m
Slide 20: Cash Cost and AISC Reconciliation to GAAP: Silver
HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP THIRD 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 21: Cash Cost and AISC Reconciliation to GAAP: Greens Creek
HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP THIRD 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 22: Cash Cost and AISC Reconciliation to GAAP: Lucky Friday
HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP THIRD 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 23: Cash Cost and AISC Reconciliation to GAAP: Casa Berardi
HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP THIRD QUARTER 2024 CONFERENCE CALL Casa Berardi 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: Free Cash Flow (Non-GAAP) Reconciliation
HECLA MINING COMPANY NYSE: HL FREE CASH FLOW (NON-GAAP) RECONCILIATION THIRD 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 YTD 2024 TOTAL YTD 2024 2023 2022 2021 2020 in millions Cash
Slide 25: Free Cash Flow (Non-GAAP) Reconciliation by Mine
HECLA MINING COMPANY NYSE: HL FREE CASH FLOW (NON-GAAP) RECONCILIATION THIRD QUARTER 2024 CONFERENCE CALL Greens Creek reconciliation of cash provided by operating activities (GAAP) to free cash flow (non-GAAP) TOTAL YTD 2024 2023 2022 2021 2020 in millions Cash provided by operating activities 820
Slide 26: Thank You
THANK YOU RESPONSIBLE. SAFE. INNOVATIVE.