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Rock Creek Noxon, Montana Monte Cristo Esmeralda County, Nevada Fayolle Val d’Or, Quebec San Juan Silver Creede, Colorado San Sebastian Durango, Mexico Opinaca / Wildcat James Bay, Quebec Heva–Hosco Val d’Or, Quebec Silver Valley Wallace, Idaho Greens Creek Admiralty Island, Alaska Coeur d’Alene, Idaho Lucky Friday Mullan, Idaho Casa Berardi Val d’Or, Quebec Val d’Or, Quebec Montanore Libby, Montana Kinskuch Alice Arm, BC Vancouver, BC operating mine pre-development project exploration project corporate office Hecla Mining Company is not only the largest and one of the lowest-cost U.S. silver producers, and the third largest U.S. producer of both zinc and lead, but also a growing gold producer. Hecla owns and operates four mines on district-sized land packages in mining-friendly North American jurisdictions: Greens Creek in Alaska, one of the largest and highest-margin primary silver mines in the world; the Lucky Friday silver mine in North Idaho; the San Sebastian silver-gold mine near Durango, Mexico; and the Casa Berardi gold mine in Quebec. In addition to its diversified silver and gold operating and cash-flow generating base, Hecla has a number of exploration properties and pre-development projects in seven world-class silver and gold mining districts in the U.S., Canada, and Mexico. 2017 silver production was 12.5 million ounces (the second highest in company history) with 232,684 ounces of gold production. 2018 company-wide production is estimated to be 9.5 to 10.5 million ounces of silver and 218,000 to 232,000 ounces of gold. Greens Creek – Admiralty Island, Alaska One of the world’s largest and lowest-cost primary silver mines. Produced approx. 218M oz. of silver and 1.5M oz. of gold since startup in 1989. 1.9M oz. of silver production and 13,118 oz. of gold production in Q1/18; 2018E silver production of 7.5-8.0M oz. and 50-55k oz. of gold. Lucky Friday – Mullan, Idaho Union workers on strike since March 13, 2017. 99,780 oz. of silver production in Q1/18; 2018E silver production TBD. Limited silver and lead production is being performed by salaried staff. Casa Berardi – Val d’Or, Quebec 40,177 oz. of gold production in Q1/18; 2018E gold production of 155-160k oz. East Mine Crown Pillar (EMCP) pit mining is underway with additional surface pits expected to be mined throughout the remainder of the mine life. San Sebastian – Durango, Mexico 512,192 oz. of silver production and 4,513 oz. of gold production in Q1/18; 2018E silver production of 2.0-2.5M oz. and 13-17k oz. of gold. Strong exploration potential; extend mine life with large polymetallic zone underground; underground mining began in January 2018. Third-party mill secured through 2020. San Sebastian Hecla’s Newest Mine – San Sebastian is a very high-grade silver and gold mine in Mexico. A series of shallow open pits were mined through 2017, generating strong cash flow for the Company. The Company has extended the mill lease through 2020 and underground mining began in January 2018. A ramp has been completed to connect the new portal to the existing workings. June 2018 Investor Fact Sheet www.hecla-mining.com Multiple Secure Revenue Streams Low Political Risk Jurisdictions Established Work Force Commitment to Safety Four High-Quality Operations Strong Cash Flow Flexibility Healthy Cash Margins Strong Financial Position Strong Investment Fundamentals Share Performance NYSE: HL end of Q1: 03/31/18, (1) as of 06/08/18 Share Price: $3.81 (1) 52-Week Range: $3.25 – $5.82 (1) Basic Shares: 400.3 million Fully Diluted: 404.6 million Market Capitalization: $1.53B (1) Operating Mines Key Growth Initiatives Rock Creek and Montanore – Rock Creek (acquired in 2015) and Montanore (acquired in September 2016) are two large silver/copper deposits in Montana. Rock Creek received a Final environmental impact statement (EIS) in June 2017. The Record of Decision (ROD) is anticipated in mid-2018. The U.S. Forest Service is preparing a supplemental EIS statement focusing on the evaluation phase of the Montanore Project and a ROD is anticipated in early 2019. Lucky Friday Remote Vein Miner – The Company with Epiroc (formerly Atlas Copco) is developing a Remote Vein Miner machine which has the potential to revolutionize how mining is conducted at the Lucky Friday by using a cutting head to cut the rock instead of traditional drill and blast. If successful, this machine is expected to increase productivity and safety in the mine. It is expected to be delivered in late 2019.

June 2018 Investor Fact Sheet €¦ · J O Hambro Capital Management Limited New Jersey Division of Investment Ceredex Value Advisors LLC Northern Trust Investments, Inc. Global X

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Page 1: June 2018 Investor Fact Sheet €¦ · J O Hambro Capital Management Limited New Jersey Division of Investment Ceredex Value Advisors LLC Northern Trust Investments, Inc. Global X

Rock CreekNoxon, Montana

Monte CristoEsmeralda County, Nevada

FayolleVal d’Or, Quebec

San Juan SilverCreede, Colorado

San SebastianDurango, Mexico

Opinaca / WildcatJames Bay, Quebec

Heva–HoscoVal d’Or, QuebecSilver Valley

Wallace, Idaho

Greens CreekAdmiralty Island, Alaska

Coeur d’Alene, Idaho

Lucky FridayMullan, Idaho

Casa BerardiVal d’Or, Quebec

Val d’Or, QuebecMontanoreLibby, Montana

KinskuchAlice Arm, BC

Vancouver, BC

operating mine

pre-development project

exploration project

corporate office

Hecla Mining Company is not only the largest and one of the lowest-cost U.S. silver producers, and the third largest U.S. producer of both zinc and lead, but also a growing gold producer.

Hecla owns and operates four mines on district-sized land packages in mining-friendly North American jurisdictions: Greens Creek in Alaska, one of the largest and highest-margin primary silver mines in the world; the Lucky Friday silver mine in North Idaho; the San Sebastian silver-gold mine near Durango, Mexico; and the Casa Berardi gold mine in Quebec. In addition to its diversified silver and gold operating and cash-flow generating base, Hecla has a number of exploration properties and pre-development projects in seven world-class silver and gold mining districts in the U.S., Canada, and Mexico.

2017 silver production was 12.5 million ounces (the second highest in company history) with 232,684 ounces of gold production. 2018 company-wide production is estimated to be 9.5 to 10.5 million ounces of silver and 218,000 to 232,000 ounces of gold.

Greens Creek – Admiralty Island, Alaska ■ One of the world’s largest and lowest-cost primary

silver mines. ■ Produced approx. 218M oz. of silver and

1.5M oz. of gold since startup in 1989. ■ 1.9M oz. of silver production and 13,118 oz. of gold

production in Q1/18; 2018E silver production of 7.5-8.0M oz. and 50-55k oz. of gold.

Lucky Friday – Mullan, Idaho ■ Union workers on strike since March 13, 2017. ■ 99,780 oz. of silver production in Q1/18; 2018E

silver production TBD. ■ Limited silver and lead production is being

performed by salaried staff.

Casa Berardi – Val d’Or, Quebec ■ 40,177 oz. of gold production in Q1/18; 2018E gold

production of 155-160k oz. ■ East Mine Crown Pillar (EMCP) pit mining is

underway with additional surface pits expected to be mined throughout the remainder of the mine life.

San Sebastian – Durango, Mexico ■ 512,192 oz. of silver production and 4,513 oz. of

gold production in Q1/18; 2018E silver production of 2.0-2.5M oz. and 13-17k oz. of gold.

■ Strong exploration potential; extend mine life with large polymetallic zone underground; underground mining began in January 2018.

■ Third-party mill secured through 2020.

San Sebastian – Hecla’s Newest Mine – San Sebastian is a very high-grade silver and gold mine in Mexico. A series of shallow open pits were mined through 2017, generating strong cash flow for the Company. The Company has extended the mill lease through 2020 and underground mining began in January 2018. A ramp has been completed to connect the new portal to the existing workings.

June 2018 Investor Fact Sheet www.hecla-mining.com

Multiple Secure Revenue Streams

Low Political Risk Jurisdictions

Established Work Force

Commitment to Safety

Four High-Quality Operations

Strong Cash Flow Flexibility

Healthy Cash Margins

Strong Financial Position

Strong Investment

Fundamentals

Share Performance NYSE: HLend of Q1: 03/31/18, (1) as of 06/08/18 Share Price: $3.81(1)

52-Week Range: $3.25 – $5.82(1)

Basic Shares: 400.3 millionFully Diluted: 404.6 millionMarket Capitalization: $1.53B (1)

Operating Mines

Key Growth Initiatives

Rock Creek and Montanore – Rock Creek (acquired in 2015) and Montanore (acquired in September 2016) are two large silver/copper deposits in Montana. Rock Creek received a Final environmental impact statement (EIS) in June 2017. The Record of Decision (ROD) is anticipated in mid-2018. The U.S. Forest Service is preparing a supplemental EIS statement focusing on the evaluation phase of the Montanore Project and a ROD is anticipated in early 2019.

Lucky Friday Remote Vein Miner – The Company with Epiroc (formerly Atlas Copco) is developing a Remote Vein Miner machine which has the potential to revolutionize how mining is conducted at the Lucky Friday by using a cutting head to cut the rock instead of traditional drill and blast. If successful, this machine is expected to increase productivity and safety in the mine. It is expected to be delivered in late 2019.

Page 2: June 2018 Investor Fact Sheet €¦ · J O Hambro Capital Management Limited New Jersey Division of Investment Ceredex Value Advisors LLC Northern Trust Investments, Inc. Global X

Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization, the most comparable GAAP measurement, to Cash Cost, After By-Product Credits, per Silver Ounce for Greens Creek, Lucky Friday & San Sebastian (dollars and ounces in thousands, except per ounce)

Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Costs of sales and other direct production costs and depreciation, depletion and amortization (GAAP) $ 65,162 $ 59,392 $ 48,607 $ 67,449 $ 51,736Depreciation, depletion and amortization (16,438) (14,225) (13,248) (17,557) (11,944) Treatment costs 18,173 11,682 12,929 10,934 12,164 Change in product inventory 2,736 (4,727) 9,008 (7,466) 6,770Reclamation and other costs (1,158) (669) (870) (1,571) (1,451) Exclusion of Lucky Friday costs - - - - - - - - (2,984)Cash cost, before by-product credits (1) 68,475 51,423 56,426 51,789 54,291 By-products credits (65,626) (50,698) (58,503) (53,440) (62,406) Cash cost, after by-product credits $ 2,849 $ 725 $ (2,077) $ (1,651) $ (8,115)Divided by silver ounces produced 3,361 2,799 3,312 2,976 13,720 Cash cost, before by-product credits, per silver ounce $ 20.37 $ 18.37 $ 17.03 $ 17.41 $ 22.38 By-product credits per silver ounce $ (19.53) $ (18.11) $ (17.66) $ (17.96) $ (25.73) Cash cost, after by-product credits, per silver ounce $ 0.84 $ 0.26 $ (0.63) $ (0.56) $ (3.35) (1) Includes all direct and indirect operating cash costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs, royalties and mining production taxes, net of by-product revenues earned from all metals other than the primary metal produced at each unit.

Financial Highlights(dollars in thousands, except per share amounts) Q1/2018 2017 2016 2015 2015 Sales of products $ 139,709 $ 577,775 $ 645,957 $ 443,567 $ 500,781Net income (loss) 8,240 (23,519) 69,547 (86,968) 17,824Cash provided by operating activities 16,383 115,878 225,328 106,445 83,124Cash, cash equivalents and short-term investments at end of reporting period 246,927 219,865 198,894 155,209 209,665Dividend per Common Share 0.0025 0.01 0.01 0.01 0.01

(research as of 03/30/18)Van Eck Associates Corporation Dimensional Fund Advisors, LP The Vanguard Group, Inc. BlackRock Institutional Trust Company, N.A. State Street Global Advisors (US) J O Hambro Capital Management Limited New Jersey Division of InvestmentCeredex Value Advisors LLC Northern Trust Investments, Inc.Global X Management Company LLC

(1) Cash cost, after by-product credits, per silver ounce represents non-U.S. Generally Accepted Accounting Principles (GAAP) measurement; a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) can be found below. (2) Realized prices are calculated by dividing gross revenues for each metal by the payable quantities of each metal included in the concentrate and doré sold during the period.

Leading Silver Producer with Strong Cash Margins (Greens Creek, Lucky Friday and San Sebastian)

Qualified Person (QP) Pursuant to Canadian National Instrument 43-101 Dean McDonald, P.Geo., Senior Vice President – Exploration of Hecla Mining Company, who serves as a Qualified Person under National Instrument 43-101(“NI 43-101”), supervised the preparation of the scientific and technical information concerning Hecla’s mineral projects in this fact sheet. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of analytical or testing procedures for the Greens Creek Mine are contained in a technical report prepared for Hecla titled “Technical Report for the Greens Creek Mine” effective date March 28, 2013, and for the Lucky Friday Mine are contained in a technical report prepared for Hecla and Aurizon titled “Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA” effective date April 2, 2014, and for the Casa Berardi Mine are contained in a technical report prepared for Aurizon titled “Technical Report on the mineral resource and mineral reserve estimate for Casa Berardi Mine, Northwestern Quebec, Canada” effective date March 31, 2014 (the “Casa Berardi Technical Report”), and for the San Sebastian Mine are contained in a technical report titled “Technical Report for the San Sebastian Ag-Au Property, Durango, Mexico” effective date September 8, 2015. Also included in these four technical reports is a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors. Copies of these technical reports are available under Hecla’s and Aurizon’s profiles on SEDAR at www.sedar.com. The Casa Berardi Technical Report was reviewed by Dr. McDonald on behalf of Hecla. To the best of Hecla’s knowledge, information and belief, there is no new material scientific or technical information that would make the disclosure of the mineral resources and mineral reserves for Casa Berardi in this fact sheet inaccurate or misleading.

Cautionary Statements Statements made which are not historical facts, such as strategies, plans, production, exploration results and plans, costs, and prices or sales performance are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and “forward looking information” under Canadian securities laws. Words such as “may,” “will,” “should,” “expects,” “intends,” “projects,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions are used to identify these forward-looking statements. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to, metals price volatility, volatility of metals production and costs, environmental and litigation risks, operating risks, project development risks, political risks, labor issues, ability to raise financing, and exploration risks. Refer to our Form 10-K and 10-Q reports for a more detailed discussion of risk factors that may impact expected future results. We undertake no obligation to update forward-looking statements other than as may be required by law.

DirectorsTed Crumley, ChairmanPhillips S. Baker, Jr.Catherine ‘Cassie’ J. BoggsGeorge R. JohnsonGeorge R. Nethercutt, Jr.Stephen F. RalbovskyTerry V. RogersCharles B. Stanley

OfficersPhillips S. Baker, Jr., President & CEOLindsay Hall, Sr. VP – Chief Financial OfficerLarry Radford, Chief Operating OfficerDean W. McDonald, Sr. VP – ExplorationDavid C. Sienko, VP – General CounselRob Brown, VP – Corporate Development

U.S. Corporate Office 6500 North Mineral Drive, Suite 200Coeur d’Alene, Idaho 83815-9408208.769.4100

Canadian Corporate Office Suite 970, 800 West Pender StreetVancouver, BC, Canada V6C 2V6604.682.6201

Investor Inquiries 800.432.5291 | [email protected]

Largest Institutional Owners Company Info

Analyst Coverage

Michael Jalonen, BofA Merrill LynchMatthew Fields, BofA Merrill Lynch (High Yield) Ryan Thompson, BMO Capital Markets Dalton Baretto, Canaccord Genuity Corp. (Canada)Mike Kozak, Cantor FitzgeraldCosmos Chiu, CIBC World MarketsLucas Pipes, FBR & Co.Heiko Ihle, H.C. Wainwright & Co. John Bridges, JP MorganMark Mihaljevic, RBC Capital MarketsTrevor Turnbull, Scotia Capital, Inc.Michael Dudas, Vertical Research PartnersDavid Deterding, Wells Fargo Securities (High Yield)