Hecla Mining Company · NYSE:HL
Hecla Mining — Q2 2024 Earnings Presentation
26 slides from Hecla Mining's earnings presentation, Aug 7, 2024
Slide 1: Second Quarter 2024 Conference Call
Largest U.S. silver producer, soon-to-be largest Canadian silver producer SECOND QUARTER 2024 Conference Call RESPONSIBLE. SAFE. INNOVATIVE.
Slide 2: Cautionary Statements
HECLA MINING COMPANY NYSE: HL CAUTIONARY STATEMENTS SECOND QUARTER 2024 CONFERENCE CALL Cautionary Statement Regarding Forward-Looking Statements Qualified Person (QP) This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as Kurt D.
Slide 3: 133 Years of Time-Tested Success
HECLA MINING COMPANY NYSE: HL 133 YEARS OF TIME-TESTED SUCCESS SECOND QUARTER 2024 CONFERENCE CALL • Mines in the U.S. and Canada Silver Production • Projected silver production growth of 19% at 17Moz Growth in the Best in 2024, 40% up to 20Moz by 2026 (compared to Jurisdictions 2023) • Long reserve
Slide 4: Financial Review
FINANCIAL REVIEW RESPONSIBLE. SAFE. INNOVATIVE. 4
Slide 5: 2024 Focus: Deleveraging and Investment
HECLA MINING COMPANY NYSE: HL 2024 FOCUS: DELEVERAGING AND INVESTMENT SECOND QUARTER 2024 CONFERENCE CALL 2024 Capital Allocation Priorities: Significant Free Cash Flow: Greens Creek, Lucky Friday progress ($ Million) Invest in Keno Hill ramp-up Free Cash Flow (2) Record production in Q2/24, thr
Slide 6: Free Cash Flow Generation Drives Deleveraging
HECLA MINING COMPANY NYSE: HL FREE CASH FLOW GENERATION DRIVES DELEVERAGING SECOND QUARTER 2024 CONFERENCE CALL Q2/2024 Cash Flows: $28.3M in free cash flow generation(2) ($ Million) 17.8 60.9 (24.1) 80.2 (26.3) 24.6 (78.0) (4.0) (1.9) Cash and Cash flow from Insurance Sustaining Growth Capital Net
Slide 7: Second Quarter Financial Highlights
HECLA MINING COMPANY NYSE: HL SECOND QUARTER FINANCIAL HIGHLIGHTS SECOND QUARTER 2024 CONFERENCE CALL Q2/24 Revenues By Metal Strong Silver Margins Net Debt to Adjusted EBITDA ($/silver ounce) ($ Millions) Silver’s share of revenues is Margins are ~50% of silver price 2024 Goal: Achieve target of <
Slide 8: Operational Review
OPERATIONAL REVIEW RESPONSIBLE. SAFE. INNOVATIVE. 8
Slide 9: Greens Creek: Flagship Mine, Consistent Performance
HECLA MINING COMPANY NYSE: HL GREENS CREEK: FLAGSHIP MINE, CONSISTENT PERFORMANCE SECOND QUARTER 2024 GREENS CREEK CONFERENCE CALL Strong operational quarter drives solid free cash flow generation Average throughput of 2,481 tons per day, Silver grades of 12.6 ounce per ton as grades reverted to m
Slide 10: Lucky Friday: On Track to Achieve 5Moz in 2024
HECLA MINING COMPANY NYSE: HL LUCKY FRIDAY: ON TRACK TO ACHIEVE 5MOZ IN 2024 SECOND QUARTER 2024 LUCKY FRIDAY CONFERENCE CALL Investment, Underhand Closed Bench drive record throughput Record silver production and throughput at 1,181 tons per day Received $17.8M in insurance payments; YTD: $35.2
Slide 11: Casa Berardi: Executing on Surface Transition Plan
HECLA MINING COMPANY NYSE: HL CASA BERARDI: EXECUTING ON SURFACE TRANSITION PLAN SECOND QUARTER 2024 CASA BERARDI CONFERENCE CALL Long-term value creation with 14-year reserve mine plan Continued focus on costs with underground extension to end of 2024 Q2/24: Cash flow from operations of $17.8M,
Slide 12: Keno Hill: Largest Silver Producer in Canada
HECLA MINING COMPANY NYSE: HL KENO HILL: LARGEST SILVER PRODUCER IN CANADA SECOND QUARTER 2024 KENO HILL CONFERENCE CALL Record production, throughput increase to 406 tons per day 12% reduction in All-Injury Frequency Rate over Q1/24 Focus on safety, environmental, mining practices to mitigate r
Slide 13: Underground Drilling Continues to Identify Opportunity at Bermingham and Flame & Moth
HECLA MINING COMPANY UNDERGROUND DRILLING CONTINUES TO IDENTIFY OPPORTUNITY WITHIN NYSE: HL THE BERMINGHAM AND FLAME & MOTH MINES SECOND QUARTER 2024 KENO HILL CONFERENCE CALL Strong Results from Underground Infill Drilling; 2024 Surface Exploration Drilling In Progress Underground Drilling Surface
Slide 14: Guidance – Strong Silver Margins and Production
HECLA MINING COMPANY NYSE: HL GUIDANCE – STRONG SILVER MARGINS AND PRODUCTION SECOND QUARTER 2024 CONFERENCE CALL Silver Production Gold Production (Koz) Silver Equivalent (Moz)6 Gold Equivalent (Koz)6 (Moz) Current Previous Current Previous Current Previous Current 2024 Production 2024 Greens Creek
Slide 15: Silver and Solar in Numbers
HECLA MINING COMPANY NYSE: HL SILVER AND SOLAR IN NUMBERS SECOND QUARTER 2024 CONFERENCE CALL 35% Share of renewables in global electricity supply in 2024: Solar is expected to meet half of this growth*. 40 Moz Expected increase in silver demand for solar in 2024, an increase of 20% over 2023**. * I
Slide 16: Appendix
APPENDIX End Notes and GAAP reconciliations RESPONSIBLE. SAFE. INNOVATIVE. 16
Slide 17: End Notes
HECLA MINING COMPANY NYSE: HL END NOTES SECOND QUARTER 2024 CONFERENCE CALL 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 measu
Slide 18: GAAP Reconciliations
GAAP RECONCILIATIONS RESPONSIBLE. SAFE. INNOVATIVE. 18
Slide 19: Adjusted EBITDA Reconciliation to GAAP
HECLA MINING COMPANY NYSE: HL ADJUSTED EBITDA RECONCILIATION TO GAAP SECOND QUARTER 2024 CONFERENCE CALL Reconciliation of Net Loss (GAAP) to Adjusted EBITDA (non-GAAP) Last Twelve Months Q2 2024 Q1 2024 Dollars in thousands (USD) Net loss $ (43,233) $ (86,797) Interest expense 47,992 45,798 Income
Slide 20: Cash Cost and AISC Reconciliation to GAAP
HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP SECOND QUARTER 2024 CONFERENCE CALL 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 a
Slide 21: Cash Cost and AISC Reconciliation to GAAP
HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP SECOND QUARTER 2024 CONFERENCE CALL 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 O
Slide 22: Cash Cost and AISC Reconciliation to GAAP
HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP SECOND QUARTER 2024 CONFERENCE CALL 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 O
Slide 23: Cash Cost and AISC Reconciliation to GAAP
HECLA MINING COMPANY NYSE: HL CASH COST AND AISC RECONCILIATION TO GAAP SECOND QUARTER 2024 CONFERENCE CALL Casa Berardi and Total Gold 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
Slide 24: Free Cash Flow (Non-GAAP) Reconciliation
HECLA MINING COMPANY NYSE: HL FREE CASH FLOW (NON-GAAP) RECONCILIATION SECOND QUARTER 2024 CONFERENCE CALL Reconciliation of cash provided by operating activities (GAAP) to Free Cash Flow (non-GAAP) for Greens Creek and Lucky Friday 2020 to YTD 2024 TOTAL YTD 2024 2023 2022 2021 2020 in millions Cas
Slide 25: Free Cash Flow (Non-GAAP) Reconciliation
HECLA MINING COMPANY NYSE: HL FREE CASH FLOW (NON-GAAP) RECONCILIATION SECOND QUARTER 2024 CONFERENCE CALL Greens Creek reconciliation of cash provided by operating activities (GAAP) to free cash flow (non-GAAP) TOTAL YTD 2024 2023 2022 2021 2020 in millions Cash provided by operating activities 766
Slide 26: Thank You
THANK YOU RESPONSIBLE. SAFE. INNOVATIVE.