Hecla Mining Company · NYSE:HL
Hecla Mining — B. Riley Annual Institutional Investor Conference 2022
84 slides from Hecla Mining's conference presentation, May 25, 2022
Slide 1: Hecla Mining Company: United States' Largest Silver Producer
HECLA MINING COMPANY United States’ Largest Silver Producer B. Riley Annual Institutional Investor Conference May 2022 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) Cautionary Note Regarding Reserves and Resources This presentation uses the terms “mineral resources,” “measured mineral resources,” “indicated mineral resources” and “inferred mineral resources.” Mineral resources that are not mineral reserves do not have demonstrated
Slide 4: 130 Years of Time-Tested Success
130 YEARS OF TIME-TESTED SUCCESS High-grade, low-cost silver mines: Foundations of a solid present and a strong future • Mining in the best countries, states, and provinces* Low Risk • Prior capital investments allow for low future capital Operating needs Portfolio • Lucky Friday’s new mining method
Slide 5: 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. production is scarce 2021 U.S. Silver Production Hecla’s Share of U.S. Production* (Moz) 12.9 Hecla 40% Other 60% 6.5 3 Countries. Produce ~50% of World Production U.S. Produces 4%*
Slide 6: Low-Cost Profile Silver Assets
LOW-COST PROFILE SILVER ASSETS Greens Creek in the best 20th percentile, Lucky Friday expected to be in best 30th percentile of primary silver mines in 2022 Silver AISC Curve of Primary Silver Mines – 12 Months Ended December 31, 2021 US$/oz 40 30 20 10 0 -10 -20 -30 0 Greens Creek 25 Lucky Friday 5
Slide 7: Financial Strength and Flexibility
FINANCIAL STRENGTH AND FLEXIBILITY Q1 ‘22: Solid operational performance delivers free cash flows and strong balance sheet • Revenues of $186.5 million, +1% over prior quarter • Consistent capital spend, averaging $114 million from 2019 to 2022** • Cash flow from operations $37.9 million, free cash
Slide 8: Cost Inflation Tied to Labor and Materials
COST INFLATION TIED TO LABOR AND MATERIALS Higher lead and zinc by-product credits offset inflationary pressure Changes in key inputs: Q1/2022: Labor Costs as % of Total Q1/2022 vs. Q1/2021 Production Costs** % Increase Diesel* $/gallon +56% Ground Support* $/ton +41% Labor $/lb. 38% Cyanide* +24% O
Slide 9: Leading Dividend Policy
LEADING DIVIDEND POLICY More cash returned to shareholders as dividend yield increases synchronously with silver prices Industry’s only silver-linked dividend policy pays an annual normal dividend (15 cents per share) plus a silver price-linked dividend that starts at $20/oz silver price. $9.0 At $2
Slide 10: Greens Creek: Solid First Quarter
GREENS CREEK: SOLID FIRST QUARTER Stable operating and capital costs, along with high grades drive free cash flow generation • Generated $2.6 billion in cash flow from operations and $1.7 billion in free cash flow since 1987 • $185 million in free cash flow in 2021 • Reserve life of 14 years, had a
Slide 11: Lucky Friday: On Track to Be 5 Moz/Yr Producer
LUCKY FRIDAY: ON TRACK TO BE 5 Moz/YR PRODUCER Production expected to exceed 1 million ounces for the next three quarters • 6th quarter of positive free cash flow generation • 5 million ounces/year average is 2x the best average production rate of the last 80 years • Underhand Closed Bench (UCB) min
Slide 12: Lucky Friday to Produce 5 Moz/Yr Due to Grade
LUCKY FRIDAY TO PRODUCE 5 Moz/YR DUE TO GRADE Improving grades at depth, UCB method improves safety and productivity LONG SECTION – 30 VEIN Underhand Closed Bench (UCB) MINED 1997 – 2021 6500 LEVEL ~1,000 FEET @ > 35 AgEq 7500 LEVEL < 10 10 - 20 #4 SHAFT 30 Vein – *AgEq Grade 20 - 30 (opt) 30 - 35 >
Slide 13: Casa Berardi: Production Per Plan, Costs in Focus
CASA BERARDI: PRODUCTION PER PLAN, COSTS IN FOCUS Strong mill performance, focus on mitigating inflationary cost pressures • Reserve mine life of 14 years, an additional 1.8 million ounces in M&I and Inferred resources • Innovation in action - • Mill throughput has increased by 40% since acquisition
Slide 14: A Very Short History on Silver Demand
A VERY SHORT HISTORY ON SILVER DEMAND Despite declining photography demand, industrial and investment demand in a secular bull market since 2000, even stronger in 2021 and the future Five distinct periods of silver demand, three that are strengthening • Monetary by governments (2000 BC to 1800 AD) •
Slide 15: Solar Projected for the Largest Growth
SOLAR PROJECTED FOR THE LARGEST GROWTH Silver is a key component of solar panels • In the U.S., renewable energy projected to double from 21% in 2020 to 42% by 2050 • Solar energy generation as a percentage of renewable energy forecast to increase 3x by 2050 from 16% to 47% • Silver paste used in ph
Slide 16: Silver – Widening Gap Between Supply & Demand
SILVER – WIDENING GAP BETWEEN SUPPLY & DEMAND Hecla is poised as a leader on U.S. mineral production Silver Supply and Demand* • Pandemic and Ukraine war have highlighted our supply chain vulnerability (Million Ounces) • US Senate leaders see mineral production as 1,102 The Opportunity fundamental t
Slide 17: Why Invest in Hecla?
WHY INVEST IN HECLA? The largest U.S. silver producer with the largest U.S. reserve base from high margin best in class silver assets We mine: • Silver, metal for renewable energy The Right • Zinc, strategic metal, 3rd largest U.S. Metals producer • Copper, 3rd largest undeveloped project • Mines in
Slide 18: Appendix
Appendix NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 18
Slide 19: Guidance
Guidance NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 19
Slide 20: Guidance: Growing Silver & Gold Production
GUIDANCE: GROWING SILVER & GOLD PRODUCTION High silver margins projected despite COVID-19 and inflation costs Silver Production Gold Production Silver Equivalent Consolidated Production Outlook* (Moz) (Koz) (Moz)8 Gold Equivalent (Koz)8 2022 Total 12.9 – 13.5 165 - 175 39.3 – 40.7 509 – 527 2023 Tot
Slide 21: Financial
Financial NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 21
Slide 22: 2021: Record Revenues, 2nd Highest Silver Reserves
2021: RECORD REVENUES, 2nd HIGHEST SILVER RESERVES Record Year ESG Focus Financial Strength • Developed Underhand • Strong safety performance, • 2021 cash balance of $210 Closed Bench (UCB) All- Injury Frequency Rate million, total liquidity of mining method at Lucky of 1.45, 40% lower than $443 mil
Slide 23: 2021 Revenue, Production and Cost Highlights
2021 REVENUE, PRODUCTION AND COST HIGHLIGHTS Largest silver producer, #3 lead and zinc producer in the U.S. Silver Gold Lead Zinc Silver Production: 12.9 Moz Cost of Sales(3): $314 M Cash Costs, after by-product credits(5): $1.37/oz AISC, after by-product credits(4): $9.19/oz 15% Realized Price: $25
Slide 24: Robust Free Cash Flow Generation
ROBUST FREE CASH FLOW GENERATION Low-cost silver mines generate margins even at low silver prices • High-grade, low-cost silver mines drive margins and free cash flow generation even at low silver prices • 8th consecutive quarter of free cash flow generation, 2.8x increase in cash since Q2/2020 Silv
Slide 25: Low-Capital Profile
LOW-CAPITAL PROFILE Impact from inflation is relatively low due to low tonnage, high-grade mines • Increase in silver production at Lucky Friday not tied to any significant increase in capital • Stable capital costs with no planned large construction projects 2019 – 2022E: Capital Spend Hecla vs. Pe
Slide 26: Greens Creek S-K 1300 Technical Report Highlights
GREENS CREEK S-K 1300 TECHNICAL REPORT HIGHLIGHTS Tier 1 asset that will maintain production and solid free cash flow generation profile Technical Report S-K 1300 Highlights* Mine life, based on reserve plan years 14 Ore Tons Processed ktons 12,700 Silver Grade** opt 11.3 Silver Recovery** % 76.5 To
Slide 27: Lucky Friday Technical Report Highlights
LUCKY FRIDAY TECHNICAL REPORT HIGHLIGHTS Positioned for long-term value with strong free cash flow generation in the next decade Technical Report S-K 1300 Highlights Mine life, based on reserve plan years 17 Ore Tons Processed ktons 5,456 Silver Grade opt 13.7 Silver Recovery % 96.4 Total Silver Pro
Slide 28: Casa Berardi S-K 1300 Technical Report Highlights
CASA BERARDI S-K 1300 TECHNICAL REPORT HIGHLIGHTS Solid asset with consistent free cash flow generation Technical Report S-K 1300 Highlights* Mine life, based on reserve plan years 14 Ore Milled Mtonnes 20.9 Gold Grade – Open pit** g/t 2.61 Gold Grade – Underground** g/t 5.27 Gold Recovery** % 83.5
Slide 29: Hecla's Tax Characteristics Are Not Recognized
HECLA’S TAX CHARACTERISTICS ARE NOT RECOGNIZED Tax expense and paid taxes amongst the lowest and an unrecognized tax asset Current Tax Expense: Hecla & Peers 2019-2021 ($ millions) Fresnillo Pan American Silver Coeur Hecla SSR Mining First Majestic Silver Fortuna Silver (13) (16) (12) (14) (10) (16)
Slide 30: Silver Market
Silver Market NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 30
Slide 31: Silver Supply Comes from Mine Production & Recycling
SILVER SUPPLY COMES FROM MINE PRODUCTION & RECYCLING Mine production accounts for more than 80% of supply • 2021 saw an increase in mined silver as COVID-19 disruptions from 2020 recovered Million oz 1,047 1,012 1,000 1,000 997 953 146 147 149 148 173 162 900 864 850 836 823 781 2016 2017 2018 2019
Slide 32: Silver Mine Supply Dependent on Other Metals
SILVER MINE SUPPLY DEPENDENT ON OTHER METALS Over half of supply is a by-product of copper, lead and zinc mines 29% 29% 30% 31% 32% 32% 31% Lead/Zinc 21% 23% Copper 23% 23% 25% 23% 25% 17% 15% 15% 16% 16% 16% Gold 16% 33% 33% 31% 29% 29% 27% 28% Primary Silver 2015 2016 2017 2018 2019 2020 2021 Sour
Slide 33: Mine Supply Expected to Increase in 2022
MINE SUPPLY EXPECTED TO INCREASE IN 2022 Increase is largely driven by higher output mines in Mexico • U.S. production of silver expected to remain similar to 2021 levels Mined Silver Supply* Million Ounces 1.2 1.2 2.1 2.7 19.9 843.1 (2.4) (4.2) 822.6 2021 N. America Asia CIS Africa Oceania Europe C
Slide 34: Silver Demand Has Three Main Components
SILVER DEMAND HAS THREE MAIN COMPONENTS Green energy demand is new and growing – bolstered by photovoltaics and EVs Silver Demand Consumer Products/Industrial Million oz Million oz 4.5% CAGR over 5 Other years 35 Brazing 6% Jewelry & Alloys Silverware 48 Photovoltaics 255 9% 127 23% 24% Industrial 5
Slide 35: U.S. Current Electricity Consumption Trends
U.S. CURRENT ELECTRICITY CONSUMPTION TRENDS Solar is projected to be the largest beneficiary, currently accounts for 1.3% of total U.S. energy consumption NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 35
Slide 36: Inflation on the Rise
INFLATION ON THE RISE Measures of core inflation, yoy% Source: Reuters Eikon, Incrementum AG NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 36
Slide 37: Rising Inflation Is Negative for Most Asset Classes
RISING INFLATION IS NEGATIVE FOR MOST ASSET CLASSES Gold and mining shares are among the best performers in inflation regimes Compound annual growth rates of different asset classes in different inflation regimes Source: Wellington Asset Management, Incrementum AG NYSE: HL RESPONSIBLE. SAFE. INNOVAT
Slide 38: Assets That Work in a Stagflationary Environment
ASSETS THAT WORK IN A STAGFLATIONARY ENVIRONMENT Historical asset class performance during periods of stagflation Source: Incrementum AG, Bloomgerg NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 38
Slide 39: ESG
ESG NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 39
Slide 40: ESG: Small Footprint, Large Benefit
ESG: SMALL FOOTPRINT, LARGE BENEFIT Environment, Community and Safety are three pillars of our ESG program Safety Small Environmental Large Community Benefit Footprint • Well-established safety culture • Net zero on emissions in 2021* • Support >2,300 families • Casa Berardi awarded the John T. Ryan
Slide 41: 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 76% reduction since SHMS inception • Reduced AIFR by 24%, the lowest in company history • Reduced AIFR by 76% since 2012 • Hecla 1.45 rate in 2021 is 30
Slide 42: Green House Gas Intensity
GREEN HOUSE GAS INTENSITY Hecla’s Scope 1 and 2 emissions are among the lowest in the industry Hecla produced 168 silver ounces per tonne of GHG, 470 silver-equivalent ounces per tonne of GHG, or 6.9 gold equivalent ounces per tonne of GHG Source: BMO Capital Markets NYSE: HL RESPONSIBLE. SAFE. INNO
Slide 43: ESG: Environmental Intensity Measures 2020
ESG: ENVIRONMENTAL INTENSITY MEASURES 2020 Hecla’s “Small footprint, large benefit” illustrated within industry peer group KPI’s GHG Intensity Water Intensity (tonnes GHG/US$M (H20 M3/US$ M Sales) Sales) HECLA MINING CO 109 YAMANA GOLD INC 2,978 YAMANA GOLD INC 115 COEUR MINING INC 9,759 AGNICO EAGL
Slide 44: 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 45: Hecla Changes Lives
HECLA CHANGES LIVES Largest employer with jobs and benefits that last a lifetime and an active participant in the local communities • Direct economic impact of $700 million in 2021 • More than a living wage – longevity, benefits • Each Hecla job creates more jobs - 3,000+ • Support for communities d
Slide 46: Innovation That Improves Mines and Society
INNOVATION THAT IMPROVES MINES AND SOCIETY Led the way in dry-stack tailings development, 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 an internal tailings standa
Slide 47: 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 the state • More than 200,000 shrubs and trees planted at Troy
Slide 48: Operations/Exploration/Pre-development
Operations/Exploration/Pre-development NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 48
Slide 49: Operational Review
OPERATIONAL REVIEW NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 49
Slide 50: Diverse Asset Portfolio in Mining Friendly Jurisdictions
DIVERSE ASSET PORTFOLIO IN MINING FRIENDLY JURISDICTIONS Low cost, high margin, low tonnage assets in best jurisdictions Fundamental Operations Greens Creek Casa Berardi Lucky Friday Location/Fraser Rank ing 1 4 - Alaska, USA 6 - Quebec, Canada 7 - Idaho, USA Prim ary Product Silver Gold Silver 2021
Slide 51: High-Grade Silver Mines of Size Are Scarce
HIGH-GRADE SILVER MINES OF SIZE ARE SCARCE Hecla owns the world’s second and seventh largest silver mines which 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 Luc
Slide 52: Reserves: Investing in Our Future
RESERVES: INVESTING IN OUR FUTURE 2nd highest silver and gold reserves, mining depletion replaced by increased reserves • Greens Creek silver reserves up +12%, second highest since 2002 • Company wide measured & indicated resources declined due to conversion to reserves • Inferred resources increase
Slide 53: Increasing Silver Reserves and Resources
INCREASING SILVER RESERVES AND RESOURCES 4x for reserves and M&I, almost 10x for inferred Silver Reserves and Measured & Indicated Resources Silver Inferred Resources Million Ounces Million Ounces 250 500 450 200 400 350 150 300 250 100 200 150 50 100 0 50 - Reserves Measured & Indicated NYSE: HL RE
Slide 54: Hecla's 2022 Exploration
HECLA’S 2022 EXPLORATION 19 drill rigs company wide focused on expanding and discovery of resources Nevada • Drilling ongoing at Midas • Development of Hatter Graben drift and exploration drilling suspended due to high water inflows • Drilling at Aurora later this year Greens Creek • Drilling to exp
Slide 55: Casa Berardi Drilling Focused on Expanding Resources
CASA BERARDI DRILLING FOCUSED ON EXPANDING RESOURCES Positive drilling results in the West, Principal, and East Mine areas Positive Drilling Results 113 Zone • Confirming Mineralization and new intersection north of the Casa Berardi fault 124 Zone • Positive near surface assay results potentially ex
Slide 56: Midas - Green Racer Sinter Discovery Location
MIDAS - GREEN RACER SINTER DISCOVER LOCATION 2 core drills focused on expanding high-grade mineralization and drill testing additional targets NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 56
Slide 57: Midas - Green Racer Sinter Longitudinal Section
MIDAS - GREEN RACER SINTER LONGITUDINAL SECTION 2022 exploration drilling to test 1.7 miles of strike length on the Racer Structure 0.25 oz/t gold, 63.9 oz/t silver over 1.2 ft (0.9 feet est. true width) 0.02 oz/t gold, 12.6 oz/t silver over 2.1 ft (1.7 feet est. true width) NYSE: HL RESPONSIBLE. SA
Slide 58: Midas - Green Racer Sinter Longitudinal Section
MIDAS - GREEN RACER SINTER LONGITUDINAL SECTION 2022 exploration drilling to test 1.7 miles of strike length on the Racer Structure 0.84 oz/t gold, 0.6 oz/t silver over 2.2 ft (1.9 feet est. true width) NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 58
Slide 59: NV Exploration - Hollister Underground Exploration
NV EXPLORATION - HOLLISTER UNDERGROUND EXPLORATION Drift development and exploration drilling advancing N Drillholes Planned Completed 1000 Feet NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 59
Slide 60: Hollister – Hatter Graben Drillhole HUC-111 Significant Intercepts
HOLLISTER – HATTER GRABEN DRILLHOLE HUC-111 SIGNIFICANT INTERCEPTS A Cross Section Looking Northeast A’ 0.12 oz/ton gold and 12.7 1.27 oz/ton gold and oz/ton silver over 0.4 feet 1.1 oz/ton silver over 0.9 feet V805 V795 V790 V780 V770 V760 V750 V740 5,000 ft V700 0.30 oz/ton gold and 3.2 Rhyolite o
Slide 61: San Sebastian - Exploring for Larger Zones of Mineralization
SAN SEBASTIAN - EXPLORING FOR LARGER ZONES OF MINERALIZATION 2022 drilling in progress at La Roca and San Sebastian Mine Middle Vein NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 61
Slide 62: Aurora, Creede, and Republic - Advancing Historic Mining Districts
AURORA, CREEDE, AND REPUBLIC - ADVANCING HISTORIC MINING DISTRICTS 2022 exploration drilling marks first drilling activities in many years NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 62
Slide 63: Montana Assets
MONTANA ASSETS Working to advance underground data collection and permitting Permitting Strategy – Taking a reset Site Overview • Executing strategy to expedite authorization for underground evaluation and data collection via existing infrastructure. • Focus on permitting additional underground eval
Slide 64: Greens Creek: Over 30 Years and Still Exploring and Adding Reserves
GREENS CREEK: OVER 30 YEARS AND STILL EXPLORING AND ADDING RESERVES Upgrading Resources (Upper Plate, 9A, and East Ore), Exploring (Gallagher and Lil’Sore) From 1989 to 2021, Greens Creek has mined more than 20 million tons containing: • 330m ounces of silver • 2.7m ounces of gold • 4b pounds of zin
Slide 65: Greens Creek – District and Near Mine Growth Potential
GREENS CREEK – DISTRICT AND NEAR MINE GROWTH POTENTIAL In-mine mineralization open for expansion and district potential for new deposits Continuation of resource expansion along mineralized trends • Ore tons have doubled in the past 15 years • Pace is driven by development access • 5250 exploration
Slide 66: Lucky Friday on Track to Be 5 Moz/Yr Producer
LUCKY FRIDAY ON TRACK TO BE 5 Moz/YR YEAR PRODUCER Higher grades at depth are supported by success of UCB mining method 30 Vein – *AgEq Grade (opt) < 10 10 - 20 MINED 20 - 30 1997 – 2021 30 - 35 > 35 December 31, 2021 6500 LEVEL *Ag Equivalent Values Based on metal prices of $17/oz Ag, $0.90/lb Pb,
Slide 67: 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
Slide 68: 2022 Guidance: Production and Costs
2022 GUIDANCE: PRODUCTION AND COSTS 2022 Production Outlook Silver Production Gold Production Silver Equivalent Gold Equivalent (Koz)6 (Moz) (Koz) (Moz)6 Greens Creek* 8.6 – 8.9 40 – 43 20.7 – 21.2 268 – 275 Lucky Friday* 4.3 – 4.6 N/A 8.9 – 9.3 116 – 120 Casa Berardi N/A 125 - 132 9.7 – 10.2 125 -
Slide 69: Adjusted EBITDA Reconciliation to GAAP
ADJUSTED EBITDA RECONCILIATION TO GAAP Reconciliation of Net Income (GAAP) to Adjusted EBITDA (non-GAAP) Dollars in thousands (USD) Twelve Months Ended Q1 2022 Q1 2021 Net income $ 17,797 $ 19,366 Plus: Interest expense 41,607 44,002 Plus/(Less): Income and mining tax provision (benefit) (28,681) 5,
Slide 70: Cash Cost and AISC Reconciliation to GAAP
CASH COST AND AISC RECONCILIATION TO GAAP 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-product Credits, per Ounce and All-In Sustaining Costs, After By-product Credits, per Ounce (n
Slide 71: Cash Cost and AISC Reconciliation to GAAP
CASH COST AND AISC RECONCILIATION TO GAAP Gold Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to Cash Cost, Before By- product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Costs, Before By-prod
Slide 72: Free Cash Flow (Non-GAAP) Reconciliation
FREE CASH FLOW (NON-GAAP) RECONCILIATON Consolidated Reconciliation of Cash provided by operating activities (GAAP) to Free Cash Flow (non-GAAP) in millions Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Cash provided by operating activities $ 37.5 $ 73.4 $ 64.9 $ 37.9 $ 86.3 $ 42.7
Slide 73: Free Cash Flow (Non-GAAP) Reconciliation
FREE CASH FLOW (NON-GAAP) RECONCILIATON Greens Creek, Lucky Friday, and Casa Berardi Reconciliation of Cash provided by operating activities (GAAP) to Free Cash Flow (non-GAAP) Three Months Ended in thousands Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Greens Creek Cash provided (used) by operating acti
Slide 74: Free Cash Flow (Non-GAAP) Reconciliation
FREE CASH FLOW (NON-GAAP) RECONCILIATON Greens Creek and Casa Berardi Reconciliation of Cash provided by operating activities (GAAP) to Free Cash Flow (non-GAAP) 2021 2020 2019 Greens Creek Casa Berardi Greens Creek Casa Berardi Greens Creek Casa Berardi Cash provided by operating activities $ 204,1
Slide 75: Cash Cost and AISC Reconciliation to GAAP
CASH COST AND AISC RECONCILIATION TO GAAP 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, Before By-product Credits, per Ounce and All-In Sustaining Costs, After By-product Credits, per Ou
Slide 76: Cash Cost and AISC Reconciliation to GAAP
CASH COST AND AISC RECONCILIATION TO GAAP 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, Before By-product Credits, per Ounce and All-In Sustaining Costs, After By-product Credits, per Ou
Slide 77: Cash Cost and AISC Reconciliation to GAAP
CASH COST AND AISC RECONCILIATION TO GAAP 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, Before By-product Credits, per Ounce and All-In Sustaining Costs, After By-product Credits, per Ou
Slide 78: Cash Cost and AISC Reconciliation to GAAP
CASH COST AND AISC RECONCILIATION TO GAAP 2022 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) and All-In Sustaining Costs, Before By-product Credits, per Ounce and All-In Sustaining Co
Slide 79: Proven & Probable Mineral Reserves
PROVEN & PROBABLE MINERAL RESERVES(1) (On December 31, 2021 unless otherwise noted) Investors are cautioned that Reserves and Resources are as of December 31, 2021, and are dynamic during the year due to mining depletion, changing metal prices, changing costs or project NYSE: HL economics, and new d
Slide 80: Measured and Indicated Mineral Resources
MEASURED AND INDICATED MINERAL RESOURCES On December 31, 2021 unless otherwise noted) Measured Resources (8) Silver Gold Lead Zinc Copper Silver Gold Lead Zinc Copper Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % % (000 oz) (000 oz) (Tons) (Tons) Tons (11,12) Greens Creek United States 1
Slide 81: Inferred Mineral Resources
INFERRED MINERAL RESOURCES (On December 31, 2021 unless otherwise noted) Inferred Resources (10) Silver Gold Lead Zinc Copper Silver Gold Lead Zinc Copper Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % % (000 oz) (000 oz) (Tons) (Tons) Tons Greens Creek (11,12) United States 100.0% 2,152
Slide 82: Mineral Resources Footnotes
MINERAL RESOURCES FOOTNOTES (7) The term "mineral resources" means a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable es
Slide 83: 2010 – 2020 Reserve Table
2010 – 2020 RESERVE TABLE Tons Silver Gold Silver Gold Tons Silver Gold Silver Gold 2010 Proven Reserves (000) (oz/ton) (oz/ton) (000 oz) (000 oz) 2017 Proven Reserves (000) (oz/ton) (oz/ton) (000 oz) (000 oz) Greens Creek - - - - - Greens Creek 7 12.2 0.09 89 1 Lucky Friday 1,642 12.4 - 20,388 - Lu
Slide 84: Hecla Mining Company
HECLA MINING COMPANY United States’ Largest Silver Producer Bank of America Conference May 2022 RESPONSIBLE. SAFE. INNOVATIVE. NYSE: HL
Hecla Mining Company — B. Riley Annual Institutional Investor Conference 2022 on 6ix