Hecla Mining Company · NYSE:HL
Hecla Mining — Bank of America Merrill Lynch Global Metals, Mining & Steel Conference 2018
18 slides from Hecla Mining's conference presentation, May 16, 2018
Slide 1: Adding High-Grade Nevada Gold Mines
May 2018 NYSE:HL Adding High-Grade Nevada Gold Mines The Acquisition of Klondex Mines Ltd.
Slide 2: Cautionary Statements
Cautionary Statements NYSE:HL Cautionary Statement Regarding Forward Looking Statements, Statements made or information provided in this presentation that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and "forward
Slide 3: Cautionary Statements
Cautionary Statements NYSE:HL Additional Information About the Transaction and Where to Find It This material relates to Hecla’s proposed acquisition (the “Transaction”) of Klondex. Shares of Hecla’s common stock (the “Hecla Shares”) issued in connection with the proposed Transaction may be register
Slide 4: Adding Nevada to a Strong Portfolio
Adding Nevada to a Strong Portfolio Large land packages in five of the world’s best mining districts NYSE:HL Nevada “Heart of the Nevada gold district” Midas N Hollister Fire Creek –4– Source: Company disclosures.
Slide 5: The Leading Intermediate Precious Metals Producer
The Leading Intermediate Precious Metals Producer Peer leading production, with diversified revenue and NAV exposures NYSE:HL Strongest production base among peer group (2017A Production1) AuEq Production (koz) AgEq Production (Moz) 755 762 2 711 2 663 596 600 607 554 571 524 361 224 241 123 8.7 15.
Slide 6: Hecla Retains Significant Focus on Silver
Hecla Retains Significant Focus on Silver Transaction increases Hecla’s exposure to precious metals by 6% NYSE:HL Standalone Hecla1,2 Hecla Pro Forma1,2 Hecla Long Term 20% 15% 5% 30% Silver exposure 35% 6% expected to increase through development of Rock Creek and 39% 50% Montanore Silver Gold Lead
Slide 7: Increasing Cash Flow and Improved Credit Metrics
Increasing Cash Flow and Improved Credit Metrics Transaction improves financial flexibility, moving towards credit upgrade NYSE:HL Transaction additive to operating cash … taking Hecla’s already strong credit flow1 … metrics (2017A Operating Cash Flow US$ million) Ratio Moody’s Moody’s Hecla “B” “Ba
Slide 8: Thank you
Thank you NYSE:HL Midas San Sebastian Greens Creek Lucky Friday Fire Creek Hollister Casa Berardi –8–
Slide 9: Endnotes
Endnotes NYSE:HL 1. Hecla’s cost of sales include all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs, royalties and mi
Slide 10: Production Cash Cost per GEO Sold Reconciliation to GAAP
Production Cash Cost per GEO Sold Reconciliation to GAAP NYSE:HL Fire Creek Years ended December 31, All amounts in thousands except per ounce amounts 2015 2016 2017 Average realized price per gold ounce sold $1,156 $1,250 $1,261 Average realized price per silver ounce sold $15.77 $17.00 $17.15 Silv
Slide 11: Production Cash Cost per GEO Sold Reconciliation to GAAP
Production Cash Cost per GEO Sold Reconciliation to GAAP NYSE:HL Midas Years ended December 31, All amounts in thousands except per ounce amounts 2016 2017 Average realized price per gold ounce sold $1,252 $1,260 Average realized price per silver ounce sold $17.48 $17.30 Silver ounces equivalent to
Slide 12: Production Cash Cost per GEO Sold Reconciliation to GAAP
Production Cash Cost per GEO Sold Reconciliation to GAAP NYSE:HL Hollister Years ended December 31, All amounts in thousands except per ounce amounts 2017 Average realized price per gold ounce sold $1,273 Average realized price per silver ounce sold $16.69 Silver ounces equivalent to revenue from on
Slide 13: Cash Cost Reconciliation to GAAP
Cash Cost Reconciliation to GAAP NYSE:HL Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to Cash Cost, After By-product Credits (non-GAAP) Lucky Friday All amounts are in thousands (USD) except per ounce amounts For the Twelve Mon
Slide 14: Cash Cost Reconciliation to GAAP
Cash Cost Reconciliation to GAAP NYSE:HL Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to Cash Cost, After By-product Credits (non-GAAP) Greens Creek All amounts are in thousands (USD) except per ounce amounts For the Twelve Mon
Slide 15: Cash Cost Reconciliation to GAAP
Cash Cost Reconciliation to GAAP NYSE:HL Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to Cash Cost, After By-product Credits (non-GAAP) Casa Berrardi (Gold Operations) All amounts are in thousands (USD) except per ounce amounts
Slide 16: Cash Cost Reconciliation to GAAP
Cash Cost Reconciliation to GAAP NYSE:HL Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to Cash Cost, After By-product Credits (non-GAAP) San Sebastian All amounts are in thousands (USD) except per ounce amounts For the Twelve Mo
Slide 17: Proven & Probable Mineral Reserves
Proven & Probable Mineral Reserves (on Dec. 31, 2017 unless otherwise noted) NYSE:HL –17–
Slide 18: Klondex Proven & Probable Mineral Reserves
Klondex Proven & Probable Mineral Reserves NYSE:HL Reserves 11/30/2017 Proven Reserves Asset Tons (000) Gold (oz/ton) Gold (g/tonne) Silver (oz/ton) Silver (g/tonne) Gold Equiv. (oz/ton) Gold Equiv. (g/tonne) Gold (000 oz) Silver (000 oz) Gold Equiv. (000 oz) Midas 141 0.261 8.95 9.18 314.8 0.388 13