Hecla Mining Company · NYSE:HL
Hecla Mining — Shareholder Meeting (May 2021)
25 slides from Hecla Mining's shareholder meeting presentation, May 19, 2021
Slide 1: Hecla - A Sustainable Company
HECLA - A SUSTAINABLE COMPANY Annual Meeting of Shareholders May 19, 2021 RESPONSIBLE. SAFE. INNOVATIVE. NYSE: HL
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Cautionary Statement Regarding Forward Looking Statements Statements made in this presentation which are not historical facts, such as strategies, plans, anticipated payments, litigation outcome (including settlement negotiations), production, sales of assets, exploration result
Slide 3: Small Footprint – Large Benefit
SMALL FOOTPRINT – LARGE BENEFIT Environmental & Social Sustainability RESPONSIBLE. SAFE. INNOVATIVE. NYSE: HL
Slide 4: Hecla Has a Small Footprint
HECLA HAS A SMALL FOOTPRINT Small geographic, environmental & safety risk footprint Less than 3,900 acres = less than one large open pit mine in Nevada • Very low energy use and greenhouse gas emissions • Total energy use = 1800 bitcoins (18.7 M in circulation) • GHG emissions = 9,500 cars (280M car
Slide 5: Mining Industry Is a Safe Industry
MINING INDUSTRY IS A SAFE INDUSTRY Industry’s safety issues of the past create an inaccurate perception • Least fatalities of 10 major industry categories in last 10 years • Construction – most workplace deaths • Government – most nonfatal injuries and illnesses – days away from work • Agriculture,
Slide 6: Hecla Is Among the Safest of Mining Companies
HECLA IS AMONG THE SAFEST OF MINING COMPANIES Hecla’s commitment and NMA CORESafety started in 2012, moved from underperformance to industry leader • Reduced AIFR by 24%, the lowest in company history • Reduced AIFR by 80% since 2012 • Hecla 1.22 rate in 2020 nearly 50% better than national average
Slide 7: Hecla Has Small Energy and GHG Emissions Footprint
HECLA HAS SMALL ENERGY AND GHG EMISSIONS FOOTPRINT Hecla lowering our emissions per ton milled • Achieved more than our multi-year 5% energy reduction goal • Low Greenhouse Gas (GHG) Emissions • Achieved a 36% reduction in GHG emissions from 2019 • 32% of Total GHG Emissions from Line Power • 75% fr
Slide 8: What Should Be Measured – GHG of What You Sell
WHAT SHOULD BE MEASURED – GHG OF WHAT YOU SELL Hecla produces 2 to 3 times more metal per ton of GHG Silver-equivalent ounces /Ton GHG Gold-equivalent ounces/Ton GHG 500 450 6 400 350 5 300 4 250 200 3 150 2 100 1 50 0 0 Hecla Coeur Pan American First Majestic Newmont Hecla Coeur Pan American First
Slide 9: Quality of the Ore Body Drives GHG Emissions
QUALITY OF THE ORE BODY DRIVES GHG EMISSIONS Hecla is the second and seventh largest silver mines and have the highest silver equivalent grade 400 AgEq* AgEq Grade 40 (Moz) (opt) 350 35 300 30 250 25 200 20 150 15 100 10 50 5 0 0 Cannington Greens Creek Fresnillo Saucito Rochester Ying Lucky Friday
Slide 10: Hecla Provides Oversized Benefits
HECLA PROVIDES OVERSIZED BENEFITS Contributions to our world, country, communities and employees • Metals America needs • Silver, copper, zinc, lead, gold • Embrace families • Good paying jobs and “uncommon” benefits • Multi-generations work for the company • Active community partner • Develop innov
Slide 11: America Needs to Produce the Metals at Home
AMERICA NEEDS TO PRODUCE THE METALS AT HOME If copper is the “new oil” - silver is like the spark • Biden Administration’s Build Back Better counts on shorter supply chain • Hecla metals are the foundation of a low carbon future • Silver, copper, and other metals are essential for wind, solar, batte
Slide 12: Hecla Changes Lives
HECLA CHANGES LIVES Largest employer with jobs and benefits that last a lifetime and charity too • Direct economic impact of $550+ million annually in 3 small communities • More than a living wage – longevity, benefits • Each Hecla job creates more jobs - 3,000+ • Support for communities during COVI
Slide 13: Innovation That Improves Mines and Society
INNOVATION THAT IMPROVES MINES AND SOCIETY Lead the way for dry stack tailings, tier IV engines improved air quality for all, and better-safer jobs • Pioneered dry stack tailings management at Greens Creek is industry “best practice” today 2 • Hecla established internal tailings standard in 2014 and
Slide 14: Environmental Stewardship from Beginning to End
ENVIRONMENTAL STEWARDSHIP FROM BEGINNING TO END Troy tailings reclamation considered “gold standard” in Montana • Troy Tailings Storage Facility reclamation completed (300 acres). Nearly $8 million in 2017 financial assurance released by state • More than 200,000 shrubs and trees planted at Troy; la
Slide 15: From Acquisition to Discovery to Resource to Reserve
FROM ACQUISITION TO DISCOVERY TO RESOURCE TO RESERVE Geologic Sustainability RESPONSIBLE. SAFE. INNOVATIVE. NYSE: HL
Slide 16: Adding Reserves from Discoveries, Extensions
ADDING RESERVES FROM DISCOVERIES, EXTENSIONS 224 million silver reserve ounces added since 2008; <1% from acquisitions 250 188 Moz Gain in Reserve oz 200 Reserves 150 (Total Gain 224 Moz) 100 Silver Ounces (millions) 50 ‐ Production (50) (100) Cumulative (150) Production 168 Moz (200) 2008 2009 2010
Slide 17: Hecla's Exploration and Development Assets
HECLA’S EXPLORATION AND DEVELOPMENT ASSETS NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 17
Slide 18: Midas: A 100-Year History of Discovery and Mining
MIDAS: A 100-YEAR HISTORY OF DISCOVERY AND MINING Green Racer Sinter is the newest discovery – first modern exploration on the East Graben Corridor NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 18
Slide 19: Green Racer Sinter Longitudinal Section
GREEN RACER SINTER LONGITUDINAL SECTION High-grade mineralization open for expansion along strike and at depth 5000 ft 4000 ft NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 19
Slide 20: Midas Exploration Is Just Starting
MIDAS EXPLORATION IS JUST STARTING Continue to advance Green Racer Sinter discovery and additional East Graben Corridor targets Target Areas Green Racer Sinter Discovery Extensions • On strike extensions to the northwest and southeast from currently known mineralization CSAMT – Sinter Target • Inter
Slide 21: San Sebastian: 20 Years of Exploration, 10 Years of Mining
SAN SEBASTIAN: 20 YEARS OF EXPLORATION, 10 YEARS OF MINING, DISCOVERING COMPLETELY NEW DEPOSITS High-grade results at El Bronco, focusing in on favorable horizon at El Tigre NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 21
Slide 22: El Bronco Vein – Silver Equivalent Grade Contours
EL BRONCO VEIN – SILVER EQUIVALENT GRADE CONTOURS Grades and widths not previously seen NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 22
Slide 23: Greens Creek: Still Exploring and Adding Reserves
GREENS CREEK: OVER 30 YEARS AND STILL EXPLORING AND ADDING RESERVES Upgrading Resources in the Upper Plate, 9A, and East Ore Zones – exploring Gallagher From 1989 to 2020, Greens Creek has mined 20 million tons containing: • 322 million ounces of Silver • 2.7 million ounces of Gold • 4 billion pound
Slide 24: Casa Berardi Acquired in 2013 – Exploration Is Still New
CASA BERARDI ACQUIRED IN 2013 – EXPLORATION IS STILL NEW Positive drilling results in the West, Principal, and East Mine areas Positive Drilling Results C’ WMCP C • Extending mineralization up dip A’ towards the Overburden-Bedrock surface. A 123 Zone • Expanding mineralization up and down dip 148 Zo
Slide 25: Hecla - A Sustainable Company
HECLA - A SUSTAINABLE COMPANY RESPONSIBLE. SAFE. INNOVATIVE. NYSE: HL
Hecla Mining Company — Shareholder Meeting (May 2021) on 6ix