Hecla Mining Company · NYSE:HL
Hecla Mining — Gold Forum Europe 2022
92 slides from Hecla Mining's conference presentation, Apr 13, 2022
Slide 1: Hecla Mining Company: United States' Largest Silver Producer
HECLA MINING COMPANY United States’ Largest Silver Producer Gold Forum Europe April 12-14, 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: Why Invest in Hecla?
WHY INVEST IN HECLA? The largest U.S. silver producer with the largest U.S. reserve base Primary U.S. • Right jurisdiction for geopolitical risk and ESG Based Operations • Net zero on scope 1 & 2 emissions Highest grade • Long lived mines with decades ahead of us silver miner • Produce >40% silver m
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 43% 57% Hecla Other 6.5 3 Countries. Produce ~50% of World Production U.S. Produces 4%*
Slide 6: Solid Reserves with Highest Ore Grades
SOLID RESERVES WITH HIGHEST ORE GRADES Hecla has the largest U.S. reserve base and the highest reserve grade, 3rd largest reserve base overall Reserves and Reserve Grade** Silver Eq. Reserves (MM oz)* Silver Eq. Grade (g/t) 1,150 1,124 1,099 * Hatched area represents US reserves 600 551 950 500 393
Slide 7: Low-Cost Profile of Silver Assets
LOW-COST PROFILE OF SILVER ASSETS Greens Creek in the top 20th percentile, Lucky Friday expected to be in top 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
Slide 8: 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 that pays an annual normal dividend ($0.015 per share) plus a silver price-linked dividend that commences at $20/oz silver price. $9.0
Slide 9: Greens Creek: Another Solid Year
GREENS CREEK: ANOTHER SOLID YEAR Consistent performance, low costs drive free cash flow generation at all silver prices • Solid finish to 2021, production met guidance, costs beat guidance – 9.2 Moz silver produced • Cost of sales $216 million • Cash costs per silver oz, after by-product credits, ($
Slide 10: Hecla's Flagship Asset - Greens Creek is a Tier 1 Asset
HECLA’S FLAGSHIP ASSET - GREENS CREEK IS A TIER 1 ASSET 2021: 9.2 Moz silver production, $209 M cash flow, $185 M free cash flow** Cumulative Gross Profit and Cumulative Net Cash Flow* Greens Creek Throughput has Grown 15% Since Purchase in 2008 Greens Creek Production and Reserves 900 16 $ millions
Slide 11: Lucky Friday Growing Production
LUCKY FRIDAY GROWING PRODUCTION While the mine has been in production for almost 80 years, the improving grade and new mining method reposition the mine • 2020 production reflects a ramp up • 2022E production 1.2x 2021, 2.2x 2020, declining per ounce costs • 2023 production expected to exceed 5 Moz
Slide 12: Lucky Friday to Produce 5 Moz/Yr Due to Grade
LUCKY FRIDAY TO PRODUCE 5 Moz/YR DUE TO GRADE Improving grade over the past few years should continue 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, and $1.15/lb Zn ~1
Slide 13: Underhand Closed Bench (UCB) Mining Method
UNDERHAND CLOSED BENCH (UCB) MINING METHOD Large scale blasting proactively manages seismic risk • Developed and tested method in 2020/21 to improve safety and productivity • Safer: miners work below engineered backfill and above a de-stressed zone • Productive: bigger equipment, less work by hand h
Slide 14: UCB Mining Method Expected to Add More Production
UCB MINING METHOD EXPECTED TO ADD MORE PRODUCTION Throughput increases by about a third adding about a million ounces • Dilution is controlled by bolting the walls as mining advances • Larger equipment improves productivity reducing unit costs Same stopes, two weeks later Underhand closed bench mini
Slide 15: Casa Berardi: Strong Production Performance in 2021
CASA BERARDI: STRONG PRODUCTION PERFORMANCE IN 2021 Production optimization focus delivered results, 16% increase in gold reserves • Mill achieved record throughput at 4,187 tpd; Mill recoveries +4% • 2021: 134.5 Koz gold produced • Cost of sales $230 million • Cash costs per gold oz, after by-produ
Slide 16: A Very Short History on Silver Demand
A VERY SHORT HISTORY ON SILVER DEMAND Despite declining photography demand, silver industrial and investment demand has been in a secular bull market since 2000 and is stronger in 2021 and the future Five distinct periods of silver demand, three that are strengthening • Monetary by governments (2000
Slide 17: Renewable Energy: Solar Projected for the Largest Growth
RENEWABLE ENERGY: 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% • Silve
Slide 18: Silver – Widening Gap Between Supply & Demand
SILVER – WIDENING GAP BETWEEN SUPPLY & DEMAND Gap expected to increase even if industrial demand growth is only 1.5% • 2021 saw a total supply of 1,056 Moz and total demand of 1,183 Moz • Silver’s total demand in 2030 is expected to reach ~1,223 Moz if demand stays on the last decade trend and no in
Slide 19: Why Invest in Hecla?
WHY INVEST IN HECLA? The largest U.S. silver producer with the largest U.S. reserve base with high margin best in class silver assets We mine: • Silver is the right metal for a renewable The Right energy future Metals • Produce 40% of silver mined in the U.S. • Have the largest U.S. silver reserve b
Slide 20: Appendix
Appendix NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 20
Slide 21: 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 22: 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 23: Financial
Financial NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 23
Slide 24: 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 Close Bench (UCB) mining All- Injury Frequency Rate million, total liquidity of method at Lucky Friday of 1.45, 40% lower than $4
Slide 25: 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(6): $1.37/oz AISC, after by-product credits(4): $9.19/oz 15% Realized Price: $25
Slide 26: Financial Strength and Flexibility
FINANCIAL STRENGTH AND FLEXIBILITY 2021: Solid operational performance delivers strong balance sheet • Record revenues of $807 million, +16% over 2020 • Record adjusted EBITDA of $279 million, +20% over 2020; net debt to adjusted EBITDA ratio of 1.1x, well below the 2.0x target(1) • Cash flow from o
Slide 27: Capital and Production Costs Are Stable
CAPITAL AND PRODUCTION COSTS ARE STABLE Impact from inflation is relatively low due to low tonnage, high-grade mines • Increase in silver production not tied to any significant increase in capital • No significant increase in planned production costs in 2022 • Stable capital costs with no planned la
Slide 28: Generating Substantial Margins
GENERATING SUBSTANTIAL MARGINS Continue to remain a very low-cost silver producer Silver Margins(3) Gold Margins(3) 17% 27% 22% 19% 26% 39% 72% 72% 47% 57% Cost of Sales (000s)7 AISC, After By-Product Credits, per Ag-Au/Oz4 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2022 Outlook Q4 2020 Q1 2021 Q2 2021
Slide 29: Strong Free Cash Flow Generation
STRONG FREE CASH FLOW GENERATION Positive free cash flow generation from all mines over last five quarters(2) Greens Creek Casa Berardi Lucky Friday* Generated $236 million in Free Cash Flow since Generated $43 million in Free Cash Flow since Generated $33 million in Free Cash Flow in 2021 Q4/2020 Q
Slide 30: Hecla's Tax Characteristics Are Not Recognized
HECLA’S TAX CHARACTERISTICS ARE NOT RECOGNIZED Tax expense and paid taxes amongst the lowest and an unrecognized tax asset Current Tax Expense: Hecla & Peers 2019-2021 ($ millions) Fresnillo Pan American Silver Coeur Hecla SSR Mining First Majestic Silver Fortuna Silver (13) (16) (12) (14) (10) (16)
Slide 31: Silver Market
Silver Market NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 31
Slide 32: Silver Supply Comes from Mine Production & Recycling
SILVER SUPPLY COMES FROM MINE PRODUCTION & RECYCLING Significant disruptions occurred in mine supply in 2020 Mine production accounts for 80-85% of total silver supply • 2019 saw lower mine production due to grade declines and temporary mine suspensions due to community action • Greater challenges o
Slide 33: 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 100% 90% 80% 70% 60% 50% 40% 30% 20% 31% 32% 32% 30% 30% 31% 31% 26% 28% 29% 27% 27% 28% 10% 23% 22% 23% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020e
Slide 34: Silver Mine Supply Has Jurisdiction Risk
SILVER MINE SUPPLY HAS JURISDICTION RISK 50% from four countries – 4% from the U.S. Troy Ounces mn Source: The Silver Institute, Incrementum AG NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 34
Slide 35: Silver Demand Has Three Main Components
SILVER DEMAND HAS THREE MAIN COMPONENTS Green energy demand is new and growing Silver Demand Consumer Products/Industrial Other 64.3 Moz 13% Investment 267.8 Moz 25% Photovoltaics 98.7 Moz Consumer Products/ 19% Electronics Industrial* 297.6 Moz 544.6 Moz 58% Jewelry & 51% Silverware 261.1 Moz Brazi
Slide 36: 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 36
Slide 37: Inflation on the Rise
INFLATION ON THE RISE Measures of core inflation, yoy% Source: Reuters Eikon, Incrementum AG NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 37
Slide 38: 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 39: 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 39
Slide 40: Silver Getting Close to 2011 Highs
SILVER GETTING CLOSE TO 2011 HIGHS World gold price reached a new all time high in 2022 Source: Reuters Eikon, Incrementum AG NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 40
Slide 41: 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 a shorter supply chain • The metals Hecla produces are the foundation of a low carbon future • Silver, copper, and other metals are essential for win
Slide 42: ESG
ESG NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 42
Slide 43: 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 44: 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 45: 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 ALL INJURY FREQUENCY RATE (AIFR) • Reduced AIFR by 76% since 2012 6.06 5.35 • Hecla 1.22 rate in 20
Slide 46: 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 47: 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 48: 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 $550+ million annually in 3 small communities • More than a living wage – longevity, benefits • Each Hecla job creates more jobs - 3,000+ •
Slide 49: 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 50: 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 51: Operations/Exploration/Pre-development
Operations/Exploration/Pre-development NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 51
Slide 52: Operational Review
OPERATIONAL REVIEW Continued performance despite COVID-19 challenges NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 52
Slide 53: Diverse Asset Portfolio in Mining Friendly Jurisdictions
DIVERSE ASSET PORTFOLIO IN MINING FRIENDLY JURISDICTIONS Low cost, high margin, low tonnage assets in stable and best jurisdictions Fundamental Operations Greens Creek Casa Berardi Lucky Friday Location/Fraser Ranking1 5 - Alaska, USA 6 - Quebec, Canada 9 - Idaho, USA Primary Product Silver Gold Sil
Slide 54: Low Political Risk
LOW POLITICAL RISK U.S. and Canada focus results in one of the safest operating jurisdictions among peers Policy Perception Index: Measures (1) Geographic Risk Profile attractiveness of mining policies in a jurisdiction 2020 Fraser Institute Policy Perception Index | Operating Assets Only based on t
Slide 55: 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 56: 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 57: Lucky Friday: Positioned for Long Term Value
LUCKY FRIDAY: POSITIONED FOR LONG TERM VALUE UCB expected to contribute to productivity improvements • UCB method’s success and higher grades mined at depth position Lucky Friday to be a flagship asset for the next decade • Production in 2022 will be 2.2x 2020 production Lucky Friday: Silver Product
Slide 58: 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 59: 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 60: 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 61: 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 62: Hecla's 2022 Exploration
HECLA’S 2022 EXPLORATION 18 drill rigs company wide focused on expanding and discovery of resources Nevada • Drilling ongoing at Midas • Development of Hatter Graben drift and exploration drilling continues • Drilling at Aurora later this year Greens Creek • Drilling to expand and upgrade multiple o
Slide 63: 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 with high- grade intersections Upper 123 Zone • Expanding mineralization to the east and west Lower 123 Zone • Exp
Slide 64: 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 64
Slide 65: 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 66: 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 66
Slide 67: 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 67
Slide 68: 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 69: 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 69
Slide 70: 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 70
Slide 71: 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 72: 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 2020, Greens Creek has mined 20 million tons containing: • 322m ounces of silver • 2.7m ounces of gold • 4b pounds of zinc • 1.5b p
Slide 73: 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 74: Lucky Friday on Track to Be 5 Moz per Year Producer
LUCKY FRIDAY ON TRACK TO BE 5 Moz PER 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 75: 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 76: Reconciliations
RECONCILIATIONS NYSE: HL RESPONSIBLE. SAFE. INNOVATIVE. l 76
Slide 77: Adjusted EBITDA Reconciliation to GAAP
ADJUSTED EBITDA RECONCILIATION TO GAAP Reconciliation of Net Income (Loss) (GAAP) and Debt (GAAP) to Adjusted EBITDA (non-GAAP) Dollars in thousands (USD) FY 2020 FY 2021 Net (loss) income $ (9,457) $ 35,095 Plus: Interest expense 49,569 41,945 Plus/(Less): Income and mining taxes 8,199 (29,569) Plu
Slide 78: Cash Cost and AISC Reconciliation to GAAP - Silver
CASH COST AND AISC RECONCILIATION TO GAAP Silver 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-pr
Slide 79: Cash Cost and AISC Reconciliation to GAAP - Gold
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 80: Free Cash Flow (Non-GAAP) Reconciliation
FREE CASH FLOW (NON-GAAP) RECONCILIATON Greens Creek, Casa Berardi and Lucky Friday Reconciliation of Cash provided by operating activities (GAAP) to Free Cash Flow (non-GAAP) Three Months Ended in thousands Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Greens Creek Cash provided (used) by operating activ
Slide 81: 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 thousands Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Cash provided by operating activities $ 64,901 $ 37,936 $ 86,304 $ 42,742 $ 53,355 Less: Capital expen
Slide 82: 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 83: Cash Cost and AISC Reconciliation to GAAP - Greens Creek
CASH COST AND AISC RECONCILIATION TO GAAP Greens Creek 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
Slide 84: Cash Cost and AISC Reconciliation to GAAP - Lucky Friday
CASH COST AND AISC RECONCILIATION TO GAAP Lucky Friday 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
Slide 85: Cash Cost and AISC Reconciliation to GAAP - Casa Berardi
CASH COST AND AISC RECONCILIATION TO GAAP Casa Berardi 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
Slide 86: Cash Cost and AISC Reconciliation to GAAP - 2022 Estimates
CASH COST AND AISC RECONCILIATION TO GAAP 2022 silver and gold estimates 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 Sustain
Slide 87: 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 88: 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 89: 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 90: 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 91: 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 92: Hecla Mining Company
HECLA MINING COMPANY United States’ Largest Silver Producer Gold Forum, Europe April 12-14, 2022 RESPONSIBLE. SAFE. INNOVATIVE. NYSE: HL