Hecla Mining Company · NYSE:HL
Hecla Mining — Shareholder Meeting (May 2018)
33 slides from Hecla Mining's shareholder meeting presentation, May 24, 2018
Slide 1: Annual Meeting of Shareholders
May 24, 2018 NYSE:HL Annual Meeting of Shareholders Creating Value Through Innovative Mining
Slide 2: Cautionary Statements
Cautionary Statements NYSE:HL 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
Slide 3: 127 Years of Mining History
127 Years of Mining History A leader in creating value through innovative mining NYSE:HL Founded in 1891. Largest primary silver producer in the US, third largest lead and zinc. Gold producer for 40 years. Our strategy is to operate long-lived, low-cost assets with large land packages in favorable
Slide 4: 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 5: 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 –5– Source: Company disclosures.
Slide 6: Safety First
Safety First First hardrock mining company to complete NMA CORESafety Program NYSE:HL Hecla All Injury Frequency Rate (AIFR) 7 6.06 6 55% 5.35 5.41 5 4.57 Incident Rate 4 3.42 3 2.76 2 1 0 2012 2013 2014 2015 2016 2017 -6-
Slide 7: Creating Value
A SILVER, Gold & Base Metals Company Our long-lived, low-cost mines create opportunities NYSE:HL Creating Value Mill Run Throughput 985 Autonomous Truck Ventilation on Demand Productivity Reducing Costs Improvements New New Mines Discoveries San Sebastian Sulphides 160 Zone Rock Creek
Slide 8: Growing Production While Replacing Reserves
Growing Production While Replacing Reserves Greens Creek throughput has grown 14% since purchase in 2008 NYSE:HL Hecla becomes operator Automation drive beginning in 2017 leads to further efficiencies Consistent exploration success enables reserves to be maintained –8–
Slide 9: Growing Production and Reserves
Growing Production and Reserves Casa Berardi throughput and reserves have grown 69% and 53% since purchase in 2013 NYSE:HL Hecla becomes operator Successfully stabilized, then increased throughput rates since becoming operator Began surface open-pit mining in 2016 Consistent exploration succes
Slide 10: Innovating Across the Mines Portfolio
Innovating Across the Mines Portfolio NYSE:HL Projects 2014 2015 2016 2017 2018 2019 2020 2021 Automated Stope Drilling Installed In Operation CB Automated Drill Jumbo Utilized 2 Add/Deploy 3rd In Operation CB (GC H2/18) Drills drill Tele-Remote UG Mucking Acquired Mucker In Operation GC (CB H1/20)
Slide 11: Technologies Fundamentally Changing Mining
Technologies Fundamentally Changing Mining Hecla is advancing all of them NYSE:HL Automation Ore Sorting Analytics Rock Cutting -11-
Slide 12: Drilling Technology Continues To Advance
Drilling Technology Continues To Advance Purchased a new version and did extensive training NYSE:HL -12-
Slide 13: Drilling Automation
Drilling Automation Computer controlled drilling is more precise NYSE:HL -13-
Slide 14: Equipment & Training Seems To Be Paying Off
Equipment & Training Seems To Be Paying Off Initial results have a 20% faster advance rate NYSE:HL –14–
Slide 15: Mucking Automation
Mucking Automation Productivity found in what would be “lost” hours NYSE:HL End-of-shift and start-of-shift are targeted time windows Automation in its various forms Tele-remote Autonomous Control room operator intervenes where needed -15-
Slide 16: Hauling Automation
Hauling Automation Control room for autonomous haulage, other technology at Casa Berardi NYSE:HL -16-
Slide 17: Casa Berardi: Autonomous Truck Operating
Casa Berardi: Autonomous Truck Operating Truck runs 24 hours a day; cost savings expected NYSE:HL Loading 40-tonne autonomous Sandvik truck -17-
Slide 18: Autonomous Haulage and Hoisting
Autonomous Haulage and Hoisting NYSE:HL -18-
Slide 19: Digitizing Reports & Communication
Digitizing Reports & Communication Efficiency gains, value added work NYSE:HL -19-
Slide 20: History of the Mobile Miner
History of the Mobile Miner Tunnel boring technology being applied to production mining NYSE:HL Mobile Miner 130 – 1992 Tunnel Boring System – 2014 Mobile Reef Miner – 2016 -20-
Slide 21: Hecla's Mobile Miner – Remote Vein Miner
Hecla’s Mobile Miner – “Remote Vein Miner” Design and operational criteria developed NYSE:HL Nominal Advance Rate ~ 11m/day Mining width x height ~ 3.0m x 4.5m Maneuverability (turning radius) 13m H, 50m V and negotiable grade, ±20° On-board bolter with goal of eventual automation Collisio
Slide 22: Lucky Friday RVM Project
Lucky Friday RVM Project Cutter testing process at Colorado School of Mines NYSE:HL CSM Cutter Testing – Demonstration Variable Depth Cutting Simulates entry and exit of cutters as RVM wheel passes through section of face being cut • Starts at 0” penetration depth • Finishes cut at 0.25” penet
Slide 23: Lucky Friday RVM Project
Lucky Friday RVM Project CSM cutter preliminary testing results are favorable NYSE:HL Results after cutting Good fragmentation Maximum particle size ≈3” x 4” Cut at lower force over same penetration depth used with granite sample No ductile “flow” observed in cutting galena -23-
Slide 24: Geometry Is Ideal For Rock Cutting
Geometry Is Ideal For Rock Cutting Half mile of vertical ore that doesn’t deviate materially NYSE:HL 20 Years Past Mining ORE GRADE VALUES *AgEq Grade (opt) Mine Face (Galena) > 24 97.2 opt Silver 18 - 24 6500 Level 47.5% Lead 12 - 18 6 - 12 <6 7500 Level 900’@ +24 opt Dec. 31, 2015 AgEq *Ag Equival
Slide 25: Lucky Friday: Testing Battery Powered LHD
Lucky Friday: Testing Battery Powered LHD Could reduce ventilation needs versus diesel NYSE:HL -25-
Slide 26: Klondex Acquisition
NYSE:HL Klondex Acquisition -26-
Slide 27: Excellent Land Position Near Large Gold Mines
Excellent Land Position Near Large Gold Mines Located along important North Nevada Rift and Carlin/Battle Mtn Trends NYSE:HL -27-
Slide 28: Thank You
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Slide 29: Appendix
Appendix NYSE:HL Midas San Sebastian Greens Creek Lucky Friday Fire Creek Hollister Casa Berardi –29–
Slide 30: Proven & Probable Mineral Reserves
Proven & Probable Mineral Reserves (on Dec. 31, 2017 unless otherwise noted) NYSE:HL -30-
Slide 31: Measured and Indicated Mineral Resources
Measured and Indicated Mineral Resources (on Dec. 31, 2017 unless otherwise noted) NYSE:HL -31-
Slide 32: Inferred Mineral Resources
Inferred Mineral Resources (on Dec. 31, 2017 unless otherwise noted) NYSE:HL Note: All estimates are in-situ except for the proven reserves at Greens Creek and San Sebastian which are in surface stockpiles. Resources are exclusive of reserves. (4) Mineral resources are based on $1350 gold, $21 silve
Slide 33: 2008 – 2016 Reserve Table
2008 – 2016 Reserve Table NYSE:HL –33–
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