Hecla Mining Company · NYSE:HL
Hecla Mining — Shareholder Meeting (May 2023)
17 slides from Hecla Mining's shareholder meeting presentation, May 23, 2023
Slide 1: Hecla Mining Company Annual Shareholders Meeting
HECLA MINING COMPANY Providing the Metals the World Needs Annual Shareholders Meeting May 23, 2023 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) Notice Regarding Reserves and Resources Unless otherwise stated herein, the reserves stated in this release represent estimates at December 31, 2022, which could be economically and legally extracted or produced at the time of the reserve determination. Estimates of pr
Slide 4: Hecla Has Produced the Metals the U.S. Needed for 130 Years
HECLA HAS PRODUCED THE METALS THE U.S. NEEDED FOR 130 YEARS Growth in metal demand was exponential in Hecla’s first few decades Amasa Campbell Hecla’s 1st President 1891 - Campbell House 1903 • Built 7 years after formation of Hecla • Mining created the wealth that allowed him to build the house • I
Slide 5: The World's Growing Needs for Silver
THE WORLD’S GROWING NEEDS FOR SILVER Demand increased by almost 500Moz in two decades 23 YEAR CHANGE IN DEMAND PERIODS OF SILVER DEMAND Moz 1999 2022 % Increase Industrial 343 576 68% Five distinct periods of silver demand, three are strengthening Photography 246 28 -89% Jewelery/Silverware 260 255
Slide 6: Solar Energy Is Expected to Grow
SOLAR ENERGY IS EXPECTED TO GROW 1 GW of solar capacity requires half a million ounces of silver Solar could account for 33% of total U.S. energy generation by 2050 U.S. Electricity Generation by Fuel: 2000 - 2050 gigawatt 2022 history projections Over the next 28 years need ~750 Moz 6,000 just for
Slide 7: Hecla Is the Fastest Growing Established Silver Miner
HECLA IS THE FASTEST GROWING ESTABLISHED SILVER MINER 17Moz silver production in USA and Canada in 2023, 20Moz by 2025 Largest U.S. Silver Producer Best in Class Silver Mines Safe, Sustainable Production Commitment to Environment NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 7
Slide 8: Greens Creek: Flagship Mine – World's 11th Largest
GREENS CREEK: FLAGSHIP MINE – WORLD’S 11th LARGEST Consistent performance, low costs drive robust free cash flow generation Since 1987, Greens Creek has: Reserve Life: 13 Years Mined more than Generated more than • 20 million tons, containing • $2.8 billion in cash flow • 345Moz Silver from operatio
Slide 9: Lucky Friday: Innovation Driven Production Growth
LUCKY FRIDAY: INNOVATION DRIVEN PRODUCTION GROWTH Recognized for innovation by Society for Mining, Metallurgy and Exploration (SME) Reserve Life: 17 Years • Underhand Closed Bench (UCB) mining method - another cornerstone of Hecla’s innovation • Continued improvement and optimization - • 425,000 Ann
Slide 10: Lucky Friday: Continuously Improving to Support 425K Tons per Year
LUCKY FRIDAY: CONTINUOUSLY IMPROVING TO SUPPORT 425K TONS PER YEAR Service Hoist - debottlenecks production hoisting capacity Service Hoist, Expected Completion: Q3/2023 NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 10
Slide 11: Lucky Friday: Infrastructure to Support 425K Tons per Year
LUCKY FRIDAY: INFRASTRUCTURE TO SUPPORT 425K TONS PER YEAR Coarse Ore Bunker – decouples mine and the mill Coarse Ore Bunker, Expected Completion: Q4/2023 NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 11
Slide 12: Keno Hill: Largest Primary Silver Reserves in Canada
KENO HILL: LARGEST PRIMARY SILVER RESERVES IN CANADA 2023 Silver production to exceed 2.5Moz, Up to 4Moz in 2024 • 33% increase in silver 33% increase in reserves to nearly silver reserves 50Moz50Moz to nearly at 22.5atoz/ton 22.5 oz/ton Reserve Life: 8+ Years • Full production to 440to Full product
Slide 13: Keno Hill: Underground Infrastructure Overview
KENO HILL: UNDERGROUND INFRASTRUCTURE OVERVIEW 440 Tons per day by 2023 YE with higher grade Bermingham deposit Bermingham: 2023 Infrastructure Overview Surface Vent Raise Shotcrete Station Compressed Air Station 1150 CRF Station 1160/1130 Raise 1130 Dewatering Station 1130 – 1110 Raise Future gear
Slide 14: Keno Hill: Key Surface Projects
KENO HILL: KEY SURFACE PROJECTS Focus on Mill automation upgrades, Crushing circuit improvements, Tailings Dewatering Primary Ball Mill: Guarding Installed Mill: Cyclone Feed Flow Tailings Discharge Chute NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 14
Slide 15: Casa Berardi: Investing for the Future
CASA BERARDI: INVESTING FOR THE FUTURE Period of investment as mine begins transition to open pit operation • Reserve mine life of 14 years, an additional 2.0Moz gold in M&I and Reserve Life: 14 Years Inferred resources • Transitioning to a full surface operation - • Declining underground grades → i
Slide 16: National and Economic Security Requires Change
NATIONAL AND ECONOMIC SECURITY REQUIRES CHANGE Recognition that the supply chain needs to be shorter and more secure Permitting reform is a priority for Congress • Inflation Reduction Act of 2022 • Invests in domestic energy production and manufacturing IRA – ‘Inflation Reduction Act of 2022’ • H.R.
Slide 17: Hecla Is the Fastest Growing Established Silver Miner
HECLA IS THE FASTEST GROWING ESTABLISHED SILVER MINER 17Moz silver production in USA and Canada in 2023, 20Moz by 2025 Largest U.S. Silver Producer Best in Class Silver Mines Safe, Sustainable Production Commitment to Environment NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 17
Hecla Mining Company — Shareholder Meeting (May 2023) on 6ix