Hecla Mining Company · NYSE:HL
Hecla Mining — Shareholder Meeting (May 2017)
34 slides from Hecla Mining's shareholder meeting presentation, May 25, 2017
Slide 1: Focus on Innovation for Greater Safety and Productivity
May 25, 2017 NYSE:HL Focus on Innovation for Greater Safety and Productivity Annual Meeting of Shareholders Vancouver, BC
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: 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 -3-
Slide 4: Right Culture, Right Strategy, Well-Executed Creates Value
Right Culture, Right Strategy, Well-Executed Creates Value Focus On Technology & Innovation For Productivity To Create Future Value NYSE:HL Stock Performance of Some Well Known Mining Companies March 30, 2001 – May 22, 2017 800% 713% 700% 602% 600% 538% 500% 400% 343% 300% 200% 110% 100% 17% 0% Barr
Slide 5: Strategy Created Per Share Value In 2016
Strategy Created Per Share Value In 2016 2017 Focus Is On Improving Productivity 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 Investment
Slide 6: Hecla Advancing Innovation Quickly
Hecla Advancing Innovation Quickly Partial Implementation Has Meaningful Value Creation For Hecla NYSE:HL ORE SORTING AT SURFACE INITIAL TEST ELECTRIC IMPLEMENTATION VEHICLES UNDERGROUND ORE SORTING IN PROGRESS CONTINUOUS MUCKING ELECTRIC MINE – NO DIESEL IN NOT STARTED U/G SMART ELECTRIC U/G MINING
Slide 7: 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 8: Hecla's Mines Are Improving Productivity
Hecla’s Mines Are Improving Productivity Culture + Mine Life + Cost Structure = Mine Site Led Improvements NYSE:HL –8–
Slide 9: Measuring Productivity: A Step Toward Improvement
Measuring Productivity: A Step Toward Improvement We Are Increasing The Data And Analysis NYSE:HL Greens Creek example –9–
Slide 10: 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 -10-
Slide 11: 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 -11-
Slide 12: Automated LHD Already At Work
Automated LHD Already At Work Purchased The MINExpo Demo Unit NYSE:HL –12–
Slide 13: Autonomous Trucking/Tele-remote Mucking
Autonomous Trucking/Tele-remote Mucking NYSE:HL
Slide 14: 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 15: Jumbo Drill "Aiming System"
Jumbo Drill “Aiming System” Improving Greens Creek Drilling by 2018 NYSE:HL Plan to purchase a jumbo drill “aiming system” in 2017; benefits include increase drilled hole accuracy reduce powder factor and explosives expense reduce overbreak (improve face advance and ground support effectivenes
Slide 16: Lucky Friday #4 Shaft Is Operational
Lucky Friday #4 Shaft Is Operational Long-Term Low-Return Investment That Sets Up Triple Digit Returns NYSE:HL –16–
Slide 17: Continuing Testing Battery Powered LHD
Continuing Testing Battery Powered LHD Technology Could Reduce Ventilation Needs Versus Diesel NYSE:HL -17-
Slide 18: Battery LHD Operating at Lucky Friday
Battery LHD Operating at Lucky Friday Electric Power Brings Higher Torque, Strong Performance NYSE:HL 18
Slide 19: 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 -19-
Slide 20: Increasing Mill Throughput Increases Productivity
Increasing Mill Throughput Increases Productivity High Returns Because Of Existing Capacity NYSE:HL Trendline -20-
Slide 21: Open Pit Mining is Transforming Casa Berardi
Open Pit Mining is Transforming Casa Berardi Creates Value NYSE:HL Optimizing the mill: ~2,300 tpd (2015A) to ~3,400 tpd (2017E), adds ~30,000 Au oz (2017E) Increasing operating flexibility: More consistent operations Strong Returns: IRR of 90%1 Location of EMCP Pit Report prepared for the Com
Slide 22: Surface Mining Continues to Expand
Surface Mining Continues to Expand A Long-Life & Multiple Pits Are Expected NYSE:HL April 2016 April 2017 -22-
Slide 23: Automated Hoisting & Remote Rock Breaking
Automated Hoisting & Remote Rock Breaking Small But High Return Investments NYSE:HL Rock is loaded, hoisted, and dumped automatically The hoistman hoists men and runs three rock breaking facilities from surface -23-
Slide 24: Stope Drilling Is Becoming Automated
Stope Drilling Is Becoming Automated Adds 15 Meters Per Day NYSE:HL Allows drilling between shifts and during lunch time (no operator) 1 automated production drill in operation –24–
Slide 25: Casa's Jumbo Aiming System In Place
Casa’s Jumbo Aiming System In Place Another Small Investment Potentially Big Return Investment NYSE:HL Increases drilling accuracy Reduce overbreak by 5% Better advancement rate 2 automated development drills in operation –25–
Slide 26: Innovation Doesn't Have To Be Hi-tech
Innovation Doesn’t Have To Be Hi-tech Change to Crusher Feed Chute Design Increases Flow 10-15 TPD NYSE:HL Lab test demonstrates how a small change in the design of the crusher feed chute makes a big impact -26-
Slide 27: Optimization Continuing at Casa Berardi
Optimization Continuing at Casa Berardi Ongoing Technology Projects NYSE:HL Mine Improvement Table – March 2017 Project Due Date Advancement Automated drill in longhole stope September 30, 2017 100% Leaky feeder upgrade March 30, 2017 100% Mobile equipment monitoring‐ Telemetry November 30, 2017 80%
Slide 28: Automation in 2017
985 Automation in 2017 Two 40 Tonne Sandvik Trucks Should Save $5M, Lessons For Other Operations NYSE:HL 985 Automated Drift -28-
Slide 29: First Truck Arrives in 2017
First Truck Arrives in 2017 Modeled After The Williams Operation NYSE:HL Surface control center Optical scanner & camera Safety gated area -29-
Slide 30: Level Development Built For Autonomous Trucks
Level Development Built For Autonomous Trucks Continuous 24-Hour Operation Increases Productivity, Decreases Cost NYSE:HL 985 Automated haulage level DUMP POINTS CHUTE 1 FIXED BARRIERS ACCESS BARRIER Zone 118 Autonomous Navigation System CHUTE 2 CHUTE 3 Zone 123 CHUTE 4 ACCESS BARRIER -30-
Slide 31: Ore Sorting Tests On Both San Sebastian & Hosco
Ore Sorting Tests On Both San Sebastian & Hosco Reducing Tons & Increasing Grade NYSE:HL Ag Grade vs Recovery 100% 6600 80% Average Grade (ppm) 5600 Cumulative Recovery 60% 4600 Cum. Recovery 3600 Ag Grade 40% 2600 20% 1600 0% 600 0 20 40 60 80 100 Mass Pull (%) -31-
Slide 32: 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 33: 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 34: Appendix
MINING COMPANY NYSE:HL Appendix -34-
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