Hecla Mining Company · NYSE:HL

Hecla Mining — J.P. Morgan Global High Yield and Leveraged Finance Conference 2024

49 slides from Hecla Mining's conference presentation, Feb 27, 2024

  1. Slide 1: J.P. Morgan Global High Yield and Leveraged Finance Conference

    Largest U.S. silver producer, soon-to-be largest Canadian silver producer J.P. Morgan Global High Yield and Leveraged Finance Conference February 27, 2024 RESPONSIBLE. SAFE. INNOVATIVE.

  2. Slide 2: Cautionary Statements

    HECLA MINING COMPANY NYSE: HL CAUTIONARY STATEMENTS FEBRUARY 2024 UPDATE Cautionary Statement Regarding Forward-Looking Statements resources.” Mineral resources that are not mineral reserves do not have demonstrated economic viability. You should not assume that all or any part of measured or indica

  3. Slide 3: What Makes Hecla the Premier Silver Investment

    HECLA MINING COMPANY NYSE: HL WHAT MAKES HECLA THE PREMIER SILVER INVESTMENT J.P. Morgan Global High Yield and Leveraged Finance Conference Best In Class Silver Portfolio  Leading Silver Producer in the World’s Best Mining Jurisdictions  Largest U.S silver producer (45%)*, Canada’s by 2024, 3rd la

  4. Slide 4: Safe and Sustainable Mining

    HECLA MINING COMPANY NYSE: HL SAFE AND SUSTAINABLE MINING J.P. Morgan Global High Yield and Leveraged Finance Conference All-Injury Frequency Rate of 1.45 (*)  16% lower than the U.S. average  Reduced by 76% since 2012 ~40,500 hours of safety and health training  Greens Creek (0.29) and Lucky Fri

  5. Slide 5: Largest Silver Producer in the U.S. & Soon, Canada

    HECLA MINING COMPANY NYSE: HL LARGEST SILVER PRODUCER IN THE U.S. & SOON, CANADA J.P. Morgan Global High Yield and Leveraged Finance Conference World Production of Silver 2022 U.S. Silver Production (Moz) 24% Mexico Three countries Peru 14.2 Hecla is the largest silver produce ~51% of 45% China prod

  6. Slide 6: Largest U.S./Canada Reserve Base with Highest Grades

    HECLA MINING COMPANY NYSE: HL LARGEST U.S./CANADA RESERVE BASE WITH HIGHEST GRADES J.P. Morgan Global High Yield and Leveraged Finance Conference Silver Reserves and Reserve Grade* Silver Reserves (Moz) Silver Grade (g/t) Silver Reserves (Moz) in U.S. and Canada 577 455 445 313 244 238 217 205 169 1

  7. Slide 7: Low-Cost Profile Silver Assets

    HECLA MINING COMPANY NYSE: HL LOW-COST PROFILE SILVER ASSETS J.P. Morgan Global High Yield and Leveraged Finance Conference Silver AISC Curve of Hecla and Silver Peers*– 12 Months Ended December 31, 2022 US$/oz AISC Hecla Silver Peers* 15.60 16.50 20.00 13.10 19.70 16.30 11.30 11.50 - 20,000 40,000

  8. Slide 8: World's 11th Largest Silver Mine: Greens Creek

    HECLA MINING COMPANY NYSE: HL WORLD’S 11th LARGEST SILVER MINE J.P. Morgan Global High GREENS CREEK Yield and Leveraged Finance Conference Since 1987, Greens Creek has: Mined more than -  20.9 million tons, containing 354.7Moz Silver, 2.9Moz, Gold, 4.1Blbs Zinc, 1.6Blbs Lead Generated more than - 

  9. Slide 9: Continuous Improvement Since Acquisition: Greens Creek

    HECLA MINING COMPANY NYSE: HL CONTINUOUS IMPROVEMENT SINCE ACQUISITION J.P. Morgan Global High GREENS CREEK Yield and Leveraged Finance Conference Mill Throughput, 2008 – 2023 Silver Mill Recoveries, 2008 - 2023 Tons per Day % 25% increase in 7% Increase in silver throughput since 2008 recoveries si

  10. Slide 10: Consistency & Innovation: Free Cash Flow Engine

    HECLA MINING COMPANY NYSE: HL CONSISTENCY & INNOVATION  FREE CASH FLOW ENGINE J.P. Morgan Global High GREENS CREEK Yield and Leveraged Finance Conference Cumulative Cash Flow from Operations, Free Cash Flow* ($ Million) Free Cash Flow 3,026 Cash Flow from Operations Low-cost structure, high 2,857 2

  11. Slide 11: Innovation Driven Growth: Lucky Friday

    HECLA MINING COMPANY NYSE: HL INNOVATION DRIVEN GROWTH J.P. Morgan Global High LUCKY FRIDAY Yield and Leveraged Finance Conference 2nd Cornerstone Asset, Mine plan of 19 Years  Poised to be a 5Moz silver producer  H1/2023 - Generated $65M in cash flow from operations and $34M in free cash flow(2)

  12. Slide 12: Strong Labor Relations

    HECLA MINING COMPANY NYSE: HL STRONG LABOR RELATIONS J.P. Morgan Global High LUCKY FRIDAY Yield and Leveraged Finance Conference Union ratification of labor contract in January 2023 solidifies Lucky Friday’s growth  No material changes; work rules are largely unchanged Key terms  Term of agreement

  13. Slide 13: Potential for Growth at Depth

    HECLA MINING COMPANY POTENTIAL FOR GROWTH AT DEPTH NYSE: HL J.P. Morgan Global High Yield and Leveraged Finance Conference Lucky Friday 30 Vein Long Section Exploration Program A A’ Eastern Definition Program:  10 Drill holes, 14,000 feet AgEq OPT: AgEq OPT: Vein Only Diluted Reserves  Potential f

  14. Slide 14: Underhand Closed Bench Method

    HECLA MINING COMPANY NYSE: HL UNDERHAND CLOSED BENCH METHOD J.P. Morgan Global High LUCKY FRIDAY Yield and Leveraged Finance Conference UCB mining method: large-scale blasting proactively manages seismic risk and increases throughput Is safer: miners Uses advanced drilling work below and blasting te

  15. Slide 15: Best Decade in 80 Year History Is Ahead

    HECLA MINING COMPANY NYSE: HL BEST DECADE IN 80 YEAR HISTORY IS AHEAD J.P. Morgan Global High LUCKY FRIDAY Yield and Leveraged Finance Conference Silver Production by Decade* (Million oz) UCB method’s success and higher grades mined at depth ~2x 50 position Lucky Friday to be a 5Moz producer for 10+

  16. Slide 16: Building a Strong Foundation: Keno Hill

    HECLA MINING COMPANY NYSE: HL BUILDING A STRONG FOUNDATION J.P. Morgan Global High KENO HILL Yield and Leveraged Finance Conference Positioned to be Canada’s largest silver producer  Largest primary silver reserves in Canada  Since acquisition, 45% increase in silver reserves to ~55Moz at 26.6 opt

  17. Slide 17: Exploration Drilling Confirms Significant Potential

    HECLA MINING COMPANY NYSE: HL EXPLORATION DRILLING CONFIRMS SIGNIFICANT POTENTIAL J.P. Morgan Global High KENO HILL Yield and Leveraged Finance Conference Multiple intercepts significantly extend wider and high-grade mineralization internal to and at depth below current planned mining  Three veins

  18. Slide 18: Keno Hill Technical Report Highlights

    HECLA MINING COMPANY NYSE: HL KENO HILL TECHNICAL REPORT HIGHLIGHTS J.P. Morgan Global High KENO HILL Yield and Leveraged Finance Conference Technical Report S-K 1300 Highlights Mine life, based on reserve plan years 11 Ore Tons Processed Tons (000) 2,069 Silver Grade Opt 26.6 Silver Recovery % 96.0

  19. Slide 19: Casa Berardi: Executing on Surface Transition Plan

    HECLA MINING COMPANY NYSE: HL CASA BERARDI: EXECUTING ON SURFACE TRANSITION PLAN J.P. Morgan Global High CASA YieldBERARDI and Leveraged Finance Conference Technical report demonstrates long- term value in pits with a 14-year reserve mine plan  Transition to complete surface operation by mid-2024 i

  20. Slide 20: Casa Berardi Technical Report Highlights

    HECLA MINING COMPANY NYSE: HL CASA BERARDI TECHNICAL REPORT HIGHLIGHTS J.P. Morgan Global High CASA YieldBERARDI and Leveraged Finance Conference Technical Report S-K 1300 Highlights Mine life, based on reserve plan years 14 Ore Milled Tons (M) 15.8 Gold Grade (mined) – Open pit** Opt 0.08 Gold Grad

  21. Slide 21: Montana Assets: 3rd Largest Undeveloped Copper Deposit in the U.S.

    MONTANA ASSETS: 3rd LARGEST UNDEVELOPED COPPER DEPOSIT IN HECLA MINING COMPANY NYSE: HL THE U.S. J.P. Morgan Global High Yield and Leveraged Finance Conference Located 50 miles from Lucky Friday Working to advance underground data with great exploration potential collection and permitting Permitting

  22. Slide 22: 2023 Financial Highlights

    HECLA MINING COMPANY NYSE: HL 2023 FINANCIAL HIGHLIGHTS J.P. Morgan Global High Yield and Leveraged Finance Conference 2023 Revenues By Metal Strong Silver Margins Net Debt to Adjusted EBITDA ($/silver ounce) ($ Million) 2nd highest revenues in history Margins are 50% of silver price 2024: Achieve t

  23. Slide 23: Investing for Production Growth

    HECLA MINING COMPANY NYSE: HL INVESTING FOR PRODUCTION GROWTH J.P. Morgan Global High Yield and Leveraged Finance Conference Strong free cash flow generation from Free Cash Flow: Greens Creek, Lucky Friday silver operations invested in production ($ Million) growth  Capital investment drives 15-20%

  24. Slide 24: Guidance – Strong Silver Production Growth

    HECLA MINING COMPANY NYSE: HL GUIDANCE – STRONG SILVER PRODUCTION GROWTH J.P. Morgan Global High Yield and Leveraged Finance Conference 15-20% Silver production growth in 2024, 30% by 2026 Silver Production (Moz) Gold Production (Koz) Silver Equivalent (Moz) Gold Equivalent (Koz) Consolidated 2024 T

  25. Slide 25: Photovoltaic (PV) Demand for Silver Is Growing

    HECLA MINING COMPANY NYSE: HL PHOTOVOLTAIC (PV) DEMAND FOR SILVER IS GROWING J.P. Morgan Global High Yield and Leveraged Finance Conference PV Installations (Gigawatts) and Silver Silver Used in PVs, 2013-2024F** Loadings*,** PV Installations Ag Loading Moz PV Installations Silver Loading Gigawatts

  26. Slide 26: Appendix

    APPENDIX End Notes and GAAP reconciliations RESPONSIBLE. SAFE. INNOVATIVE. 26

  27. Slide 27: End Notes

    HECLA MINING COMPANY NYSE: HL END NOTES J.P. Morgan Global High Yield and Leveraged Finance Conference 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 appendi

  28. Slide 28: Guidance – 2024 Production and Costs by Operation

    HECLA MINING COMPANY NYSE: HL GUIDANCE – 2024 PRODUCTION AND COSTS BY OPERATION J.P. Morgan Global High Yield and Leveraged Finance Conference Silver Production (Moz) Gold Production (Koz) Silver Equivalent (Moz)6 Gold Equivalent (Koz)6 2024 Production Greens Creek * 8.8 – 9.2 46.0 - 51.0 21.0 – 21.

  29. Slide 29: GAAP Reconciliations

    GAAP RECONCILIATIONS RESPONSIBLE. SAFE. INNOVATIVE. 29

  30. Slide 30: Adjusted EBITDA Reconciliation to GAAP

    HECLA MINING COMPANY NYSE: HL ADJUSTED EBITDA RECONCILIATION TO GAAP J.P. Morgan Global High Yield and Leveraged Finance Conference Reconciliation of Net Loss (GAAP) to Adjusted EBITDA (non-GAAP) Last Twelve Months Q4 2023 Q3 2023 Dollars in thousands (USD) Net loss $ (84,217) $ (45,734) Interest ex

  31. Slide 31: Cash Cost and AISC Reconciliation to GAAP

    HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP J.P. Morgan Global High Yield and Leveraged Finance Conference 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-p

  32. Slide 32: Cash Cost and AISC Reconciliation to GAAP

    HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP J.P. Morgan Global High Yield and Leveraged Finance Conference 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, Befor

  33. Slide 33: Cash Cost and AISC Reconciliation to GAAP

    HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP J.P. Morgan Global High Yield and Leveraged Finance Conference 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, Befor

  34. Slide 34: Cash Cost and AISC Reconciliation to GAAP

    HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP J.P. Morgan Global High Yield and Leveraged Finance Conference 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, Befor

  35. Slide 35: Cash Cost and AISC Reconciliation to GAAP

    HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP J.P. Morgan Global High Yield and Leveraged Finance Conference 2024 Silver and Gold Estimates Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP

  36. Slide 36: Free Cash Flow (Non-GAAP) Reconciliation

    HECLA MINING COMPANY NYSE: HL FREE CASH FLOW (NON-GAAP) RECONCILIATION J.P. Morgan Global High Yield and Leveraged Finance Conference Reconciliation of cash provided by operating activities (GAAP) to Free Cash Flow (non-GAAP) for Greens Creek, Lucky Friday and Casa Berardi 2018 to 2023 Greens Total

  37. Slide 37: Free Cash Flow (Non-GAAP) Reconciliation

    HECLA MINING COMPANY NYSE: HL FREE CASH FLOW (NON-GAAP) RECONCILIATION J.P. Morgan Global High Yield and Leveraged Finance Conference Greens Creek reconciliation of cash provided by operating activities (GAAP) to free cash flow (non-GAAP) TOTAL 2023 2022 2021 2020 in millions Cash provided by operat

  38. Slide 38: Free Cash Flow (Non-GAAP) Reconciliation

    HECLA MINING COMPANY NYSE: HL FREE CASH FLOW (NON-GAAP) RECONCILIATION J.P. Morgan Global High Yield and Leveraged Finance Conference Reconciliation of cash provided by operating activities (GAAP) to Free Cash Flow (non-GAAP) for Greens Creek, Lucky Friday and Casa Berardi 2018 to 2023 Total Greens

  39. Slide 39: Free Cash Flow (Non-GAAP) Reconciliation

    HECLA MINING COMPANY NYSE: HL FREE CASH FLOW (NON-GAAP) RECONCILIATION J.P. Morgan Global High Yield and Leveraged Finance Conference Greens Creek reconciliation of cash provided by operating activities (GAAP) to free cash flow (non-GAAP) TOTAL YTD 2023 2022 2021 2020 in millions Cash provided by op

  40. Slide 40: Mineral Reserves and Resources

    MINERAL RESERVES AND RESOURCES RESPONSIBLE. SAFE. INNOVATIVE. 40

  41. Slide 41: Mineral Reserves - 12/31/2023 (1/2)

    HECLA MINING COMPANY NYSE: HL Hecla Mining Company - Mineral Reserves - 12/31/2023 (1) (1/2) J.P. Morgan Global High Yield and Leveraged Finance Conference Proven Reserves (1) Silver Gold Lead Zinc Silver Gold Lead Zinc Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % (000 oz) (000 oz) (Ton

  42. Slide 42: Mineral Reserves - 12/31/2023 (2/2)

    HECLA MINING COMPANY NYSE: HL Hecla Mining Company - Mineral Reserves - 12/31/2023 (1) (2/2) J.P. Morgan Global High Yield and Leveraged Finance Conference Proven & Probable Reserves Silver Gold Lead Zinc Silver Gold Lead Zinc Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % (000 oz) (000 o

  43. Slide 43: Mineral Resources - 12/31/2023 (1/4)

    HECLA MINING COMPANY NYSE: HL Hecla Mining Company - Mineral Resources - 12/31/2023 (8) (1/4) J.P. Morgan Global High Yield and Leveraged Finance Conference Measured Resources (9) Silver Gold Lead Zinc Copper Silver Gold Lead Zinc Copper Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % % (0

  44. Slide 44: Mineral Resources - 12/31/2023 (2/4)

    HECLA MINING COMPANY NYSE: HL Hecla Mining Company - Mineral Resources - 12/31/2023 (8) (2/4) J.P. Morgan Global High Yield and Leveraged Finance Conference Indicated Resources (10) Silver Gold Lead Zinc Copper Silver Gold Lead Zinc Copper Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % %

  45. Slide 45: Mineral Resources - 12/31/2023 (3/4)

    HECLA MINING COMPANY NYSE: HL Hecla Mining Company - Mineral Resources - 12/31/2023 (8) (3/4) J.P. Morgan Global High Yield and Leveraged Finance Conference Measured & Indicated Resources Silver Gold Lead Zinc Copper Silver Gold Lead Zinc Copper Asset Location Ownership Tons (000) (oz/ton) (oz/ton)

  46. Slide 46: Mineral Resources - 12/31/2023 (4/4)

    HECLA MINING COMPANY NYSE: HL Hecla Mining Company - Mineral Resources - 12/31/2023 (8) (4/4) J.P. Morgan Global High Yield and Leveraged Finance Conference Inferred Resources (11) Silver Gold Lead Zinc Copper Silver Gold Lead Zinc Copper Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % % (

  47. Slide 47: Mineral Reserves and Resources Footnotes

    HECLA MINING COMPANY NYSE: HL MINERAL RESERVES AND RESOURCES FOOTNOTES J.P. Morgan Global High Yield and Leveraged Finance Conference Note: All estimates are in-situ except for the proven reserves at Greens Creek which are in surface stockpiles. Mineral resources are exclusive of reserves. 1. The te

  48. Slide 48: Mineral Reserves and Resources Footnotes

    HECLA MINING COMPANY NYSE: HL MINERAL RESERVES AND RESOURCES FOOTNOTES J.P. Morgan Global High Yield and Leveraged Finance Conference 17. Indicated resources for most zones at San Sebastian based on $1,500/oz gold, $21/oz silver, $1.15/lb lead, $1.35/lb zinc and $3.00/lb copper using a cut-off grade

  49. Slide 49: Thank You

    THANK YOU RESPONSIBLE. SAFE. INNOVATIVE.

Hecla Mining Company — J.P. Morgan Global High Yield and Leveraged Finance Conference 2024 on 6ix