Hecla Mining Company · NYSE:HL
Hecla Mining — BMO Global Metals, Mining & Critical Minerals Conference 2023
16 slides from Hecla Mining's conference presentation, February 2023
Slide 1: Hecla Mining Company
HECLA MINING COMPANY United States’ Largest Silver Producer and Soon To Be Canada’s BMO Global Metals & Mining Conference, February 2023 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) Notice Regarding Reserves and Resources Unless otherwise stated herein, the reserves stated in this release represent estimates at December 31, 2022, which could be economically and legally extracted or produced at the time of the reserve determination. Estimates of pr
Slide 4: Hecla Is the Fastest Growing Silver Miner
HECLA IS THE FASTEST GROWING SILVER MINER 17Moz silver production in USA and Canada in 2023, 20Moz by 2025 Largest U.S. Silver Producer • Produces 40% of U.S. Silver • On track to be Canada’s largest silver producer by 2024 • Largest silver reserve base in the U.S.; largest and highest primary silve
Slide 5: Production Growth Is Sustained Through the Decade
PRODUCTION GROWTH IS SUSTAINED THROUGH THE DECADE Since 2008, Silver reserves have increased 5x, Silver production expected to increase 2x Silver Reserves: 2008-2022 Average Silver Production: 2008-2025E Moz Moz 18.0 ~5x Reserve Growth ~2x Production Growth 12.5 9.2 52 132 140 142 148 150 170 173 17
Slide 6: Hecla Mines 40% of All Silver Produced in the USA
HECLA MINES 40% OF ALL SILVER PRODUCED IN THE USA Half of the world’s production is from Mexico, Peru and China; U.S./Canadian production is scarce 2022 U.S. Silver Production*, (Moz) Hecla’s Share of U.S. Production** 14.2 Hecla, 40% Other, 60% 7.2 3 Countries Produce ~50% of World Production U.S.
Slide 7: Greens Creek: Flagship Mine
GREENS CREEK: FLAGSHIP MINE Consistent performance, low costs drive robust free cash flow generation Since 1987, Greens Creek has: Reserve Life: 13 Years Mined more than Generated more than • 20MTons, containing • $2.8 billion in cash flow from • 345Moz Silver operations • 2.8Moz Gold • $1.9 billion
Slide 8: Lucky Friday: 2022 Record Operational Year
LUCKY FRIDAY: 2022 RECORD OPERATIONAL YEAR Recognized for innovation by Society for Mining, Metallurgy and Exploration (SME) Record year in throughput, highest silver production in the past 20 years Reserve Life: 17 Years Ratified 6-year contract with the Union Underhand Closed Bench (UCB) mining me
Slide 9: Lucky Friday: Best Decade in 80 Year History Is Ahead
LUCKY FRIDAY: BEST DECADE IN 80 YEAR HISTORY IS AHEAD UCB is contributing to productivity and safety improvements UCB method’s success and higher grades mined at depth position Lucky Friday to be a flagship asset for the next decade Lucky Friday: Silver Production by Decade* (Moz) ~2x 50 30 28 28 27
Slide 10: Keno Hill: Largest Primary Silver Reserves in Canada
KENO HILL: LARGEST PRIMARY SILVER RESERVES IN CANADA 2023 Silver production to exceed 2.5Moz 33% increase in silver reserves to nearly 50Moz at 22.5 oz/ton Reserve Life: 8+ Years Full production to 440 tons per day by year-end, Up to 4Moz silver production next year Exploration drilling in 2022 conf
Slide 11: Committed to a Strong Balance Sheet
COMMITTED TO A STRONG BALANCE SHEET Investing free cash flow in operations, positioned for production growth 2022: Free cash flow from three Net debt to adjusted EBITDA of Cash and equivalents of $105 operations is $109 million(2) 1.9, in line with our target of 2.0(1) million, liquidity in excess o
Slide 12: 2022: Tipping Point in Energy Transition to Renewables
2022: TIPPING POINT IN ENERGY TRANSITION TO RENEWABLES Balance is shifting to investment in renewables from fossils US$ 1.1 Trillion Investment Investment in Energy in fossils transition 2022 NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 12
Slide 13: U.S. Electricity Generation Trends by 2050
U.S. ELECTRICITY GENERATION TRENDS BY 2050 Renewable electricity generation increases more rapidly than other sources of electricity generation Solar is projected to be the largest beneficiary in electricity generation, accounts for 75% of renewable energy generation by 2050 U.S. Electricity Generat
Slide 14: Photovoltaic (PV) Demand Is Growing
PHOTOVOLTAIC (PV) DEMAND IS GROWING Compounded growth rate of >14% from 2011 to 2024F PV Installations (Gigawatts) and Silver Loadings* Silver used in PVs, 2011 - 2024F** Index 2010 = 100 PV Installations Ag Loading Moz 200 190 120 200 180 175 100 160 160 Compounded Growth Rate: 80 140 14.6% 120 120
Slide 15: Guidance – 18% Production Increase in 2023 to ~17Moz
GUIDANCE – 18% PRODUCTION INCREASE IN 2023 TO ~17Moz Strong margins and free cash flow generation at silver operations Silver Production (Moz) Gold Production (Koz) Silver Equivalent (Moz)6 Gold Equivalent (Koz)6 2023 Total 16.0 – 17.5 160 - 170 41.5 – 44.0 505 – 535 Consolidated 2024 Total 17.5 – 1
Slide 16: Endnotes
ENDNOTES 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 measure for management to measure relative indebtedness and the ability
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