I N V E S TO R FAC T S H E E T – J U N E 2 0 1 3
Hecla Mining Company (NYSE:HL) is not only the largest and one of the lowest-cost U.S. silver
producers, but also a growing low-cost gold producer. Hecla’s acquisition of Aurizon Mines Ltd. and the
Casa Berardi mine was completed on June 1, 2013.
Hecla owns and operates three properties 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 newly revitalized Lucky Friday silver mine in North Idaho; and the newly acquired
Casa Berardi in Quebec, expected to produce 125,000 – 130,000 ounces of gold this year.
Projecting 2013 company-wide silver production of approximately 8- 9 million ounces – and exploration
and pre-development programs designed with the goal to grow silver production to 15 million ounces
by 2017 – Hecla anticipates generating strong cash flow growth in the coming years while maintaining
a strong balance sheet.
Multiple Secure Revenue Streams
Low Political Risk Jurisdictions
Strong Cash Flow Generation
Share Performance
NYSE: HL
(as of 06/03/13)
O P E R AT I N G P R O P E R T I E S
Share Price:
52-Week Range: Basic Shares:
Fully Diluted:
Market Capitalization: High Cash Margins
$ 3.95
$ 2.95 - $ 6.94
342.2 million
367 million
$ 1.4 B
Greens Creek – Admiralty Island, Alaska
■■ One of the world’s largest and lowest-cost
primary silver mines
■■ Produced approx. 200M oz. of silver and
1.5M oz. of gold since startup in 1989
■■ 6.4M oz. of silver production in 2012; 1.8M
oz. in Q1 2013
■■ Mine life est. 10+ years
Lucky Friday – Mullan, Idaho
■■ Operations and production resumed in
Q1 2013
■■ Expect production to ramp up and costs
to lower through Q2 2013
■■ Expect full-year production of more than
2M oz., increasing to 3M oz. in 2014
■■ Mine life est. 25+ years
K E Y G R O W T H I N I T I AT I V E S
Casa Berardi – Val D’Or, Quebec
■■ Expected 2013 production of 125,000 to
130,000 oz. of gold
■■ Complete shaft-deepening project in late
2013
■■ Upside potential with completion of paste
back-fill plant (Q3 2013) and long-term
mill expansion
■■ Mine life est. 10+ yrs.
Lucky Friday #4 Shaft – The #4 Shaft project construction
is expected to be completed in early 2016. It is expected to
increase silver production by 60% from approximately 3M to
5M oz. per year, mainly due to an expected increase in average
annual grade from 10.4 to up to 14.1 oz. of silver per ton.
San Juan Silver – Underground drilling in the Equity Vein
system through Q2 2013 will follow up on high-grade surface
drill intersections where the Equity and Amethyst mineralization
trends converge. Currently constructing the Bulldog 2800-foot
decline which has now advanced over 1,300 feet. The expected
Q4 2013 completion of the decline should allow confirmation
of the resource and advancement of the ongoing scoping and
economic studies.
Strong
Investment
Fundamentals
Strong Financial Position
Established Work Force
Commitment to Safety
Three High Quality, Long-Life Operations
Greens Creek
Admiralty Island, Alaska
Opinaca / Wildcat
James Bay, Quebec
Corporate Office
Vancouver, BC
Corporate Office
Coeur d’Alene, Idaho
Casa Berardi
Val d’Or, Quebec
Silver Valley
Wallace, Idaho
Fayolle
Val d’Or, Quebec
Lucky Friday
Mullan, Idaho
Marban Block
Val d’Or, Quebec
Monte Cristo
Esmeralda Co., Nevada
Heva–Hosco
Val d’Or, Quebec
San Juan Silver
Creede, Colorado
San Sebastian
Durango, Mexico
San Sebastian – In 2012, re-examination of district potential
near the past-producing Francine Vein led to the discovery
of the Middle Vein, which has both precious-metal-rich and
base-metal-rich sulfide mineralized zones. Scoping studies
are in progress to determine the production viability, rate,
and sequencing of mining the three resource areas (Hugh
Zone and Middle and Andrea Veins) and are expected to be
completed in Q3 2013. A ramp is being engineered for initial
construction (expected this year) to allow access to both the
Hugh Zone and Middle Vein. Metallurgical, hydrological, and
geotechnical studies are also advancing.
corporate office
operating property
pre-development project
exploration project
Quebec – Heva-Hosco: An advanced stage exploration project
with a large in-pit gold resource at Hosco and additional gold
resources at Heva and the Hosco West Extension areas located
20 kilometres east of Rouyn-Noranda, Quebec. It has excellent
exploration potential and infrastructure. The Fayolle Property:
An advanced stage exploration joint venture with Typhoon
Exploration Inc., located 10 kilometres north of the Heva and
Hosco West Extension areas in Quebec. An updated mineral
resource estimate was finalized in Q3 2012. The Marban Block
Property: An advanced stage exploration joint venture with
Niogold Mining Corporation located in the Malartic gold camp
in the Abitibi region, Quebec. A resource update is underway.
Financial Highlights
(dollars in thousands, except per share amounts, for end of Q1 March 31, and the year ended Dec. 31)
Q1/13 2012 2011 2010 2009 2008
Sales of products $ 76,450$321,143$477,634$418,813$312,548$
204,665
Net income (loss) from continuing operations 11,094 14,954 151,164 48,983 67,826 (37,173)
Cash provided by operating activities 11,360 69,016 69,891 197,809 119,165 11,046
Cash and cash equivalents at end of reporting period 168,614 190,984 266,463 283,606 104,678
36,470
Dividend per Common Share 0.0125
0.06
0.02
–
–
–
Leading Silver Producer with Strong Cash Margins (Greens Creek and Lucky Friday)
Largest Institutional Owners
(reported as of 03/31/13)
Van Eck Associates Corporation
The Vanguard Group, Inc.
BlackRock Institutional Trust Company, N.A.
State Street Global Advisors (US)
Dimensional Fund Advisors, LP
C.S. McKee, L.P.
Kestrel Investment Management Corp.
Credit Suisse Securities (USA) LLC
Northern Trust Investments, N.A.
Susquehanna Financial Group, LLLP
Analyst Coverage
Michael Jalonen, BofA Merrill Lynch
Andrew Kaip, BMO Capital Markets
Steven Butler, Canaccord Genuity
Jorge Beristan, Deutsche Bank
John Bridges, JP Morgan
Trevor Turnbull, Scotia Capital, Inc.
Michael Dudas, Stevne, Agee & Leach, Inc.
Qualified Person
Dean McDonald, P.Geo., Vice President - Exploration of Hecla Mining Company, who
serves as a Qualified Person under National Instrument 43-101, supervised the
preparation of the scientific and technical information concerning Hecla’s Greens Creek
and Lucky Friday mines in this fact sheet. Christian Bourcier, P.Eng., General Manager
for Casa Berardi, who serves as a Qualified Person under National Instrument 43-101,
supervised the preparation of the scientific and technical information concerning Hecla’s
Casa Berardi mine in this fact sheet. Copies of these technical reports are available for
each of these properties as filed on SEDAR at www.sedar.com.
(1) Total cash cost per ounce of silver represents a non-U.S. Generally Accepted Accounting Principles (GAAP) measurement.
(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.
Delivering Growth and Value Through Gold (Casa Berardi)(1)
Cautionary Statements
Statements made which are not historical facts, such as anticipated payments, litigation
outcome (including settlement negotiations), production, sales of assets, exploration
results and plans, prospects and opportunities including reserves, resources, and
mineralization, costs, and prices or sales performance are “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of 1995. 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, litigation, regulatory and environmental
risks, operating risks, project development risks, political risks, labor issues, ability to raise
financing and exploration risks and results. Refer to the company’s Form 10-K and 10-Q
reports for a more detailed discussion of factors that may impact expected future results.
The company undertakes no obligation and has no intention of updating forward-looking
statements other than as may be required by law.
(1) Hecla’s acquisition of Aurizon Mines Ltd. and the Casa Berardi mine was complete on June 1, 2013.
(2) Total cash cost per ounce of gold represents a non-U.S. Generally Accepted Accounting Principles (GAAP) measurement.
(3) 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.
Reconciliation of Cash Costs per Ounce to Generally Accepted Accounting Principles (GAAP)
(dollars and ounces in thousands, except per ounce – unaudited)
Q1/13 2012 2011 2010 2009 2008 2007
Total cash costs (1)
$
13,346$
17,262$
10,934$ (15,435)$
20,958$
36,621$ (15,873)
Divided by silver ounces produced
1,901 6,394 9,483 10,566 10,989 8,709 5,643
Total cash cost per ounce produced
$7.02
$2.70
$1.15
$(1.46) $1.91
$4.20
$(2.81)
Reconciliation to GAAP:
Total cash costs
$
13,346$
17,262$
10,934$ (15,435)$
20,958$
36,621$ (15,873)
Depreciation, depletion and amortization
14,007 43,522 47,066 60,011 62,837 35,207 12,323
Treatment costs
(18,597)
(73,355)
(99,019) (92,144) (80,830) (70,776) (27,617)
By-products credits
46,577 190,916 254,372 267,272 206,608 164,963 112,079
Change in product inventory
(4,604)
(1,381)
(4,805) 3,660 310 20,254 (1,261)
Suspension-related costs (2)
– – 4,135 – –
–
–
Reclamation and other costs
103 663 (44) 630 1,596
537 203
Costs of sales and other direct production costs and depreciation, depletion and amortization (GAAP)
$50,832
$177,627 $212,639
$223,994
$211,479
$186,806
$79,854
(1) Cash cost per ounce of silver represents a non-U.S. Generally Accepted Accounting Principles (GAAP) measurement that the Company believes provide management and investors an indication of net cash flow. Management also uses this measurement for the comparative monitoring of performance of mining operations period-to-period from a cash flow perspective.
“Total cash cost per ounce” is a measure developed by mining companies in an effort to provide a comparable standard; however, there can be no assurance that our reporting of this non-GAAP measure is similar to that reported by other mining companies. Cost of sales and other direct production costs and depreciation, depletion and amortization, was the most
comparable financial measures calculated in accordance with GAAP to total cash costs. (2) Various accidents and other events resulted in temporary suspensions of production at the Lucky Friday unit during 2011 and throughout 2012. Care-and-maintenance, mine rehabilitation, investigation, and other costs incurred during the suspension periods not related to production have been excluded from total cash costs and the calculation of total cash cost per
ounce produced.
Reconciliation of Cash Costs per Ounce to International Financial Reporting Standards (IFRS) (2010-2013) and Generally Accepted Accounting Principles (GAAP) (2007-2009)
(dollars and ounces in thousands, except per ounce – unaudited)
Q1/2013 2012 2011 2010 2009 2008
Cash Operating Costs (1) – US$000
$
21,276 $
93,298 $
88,705 $
75,758 $
63,896 $
63,664 Divided by gold ounces sold
26,200 133,990 165,250
139,950 159,275 159,404 Total cash cost per ounce sold – US$/oz
$812 $696
$537 $541 $401 $399
Reconciliation to IFRS/GAAP:
Cash Operating Costs – US$000
$
21,276 $
93,298 $
88,705 $
75,758 $
63,896 $
63,664 Average US$/C$ exchange rate
$
1.008 $
1.000 $
0.989 $
1.030 $
1.142 $
1.070 Cash Operating Costs – C$000
$
21,453 $
93,259 $
87,735 $
78,031 $
72,936 $
68,120 Plus: Silver by-product credits
$
181 $
990 $
1,063 $
632 $
543 $
485 Plus: Depreciation and amortization
$8,905 $37,539 $38,927 $34,060 $36,514 $35,582 Costs of sales and other direct production costs and
depreciation, depletion and amortization (IFRS/GAAP) – C$000
$30,539 $131,788 $127,725 $112,723 $109,993 $104,187 2007
$
53,192
160,600
$331
$
53,192
$
1.080
$
57,447
$
392
$29,754
$87,593 (1)Cash cost per ounce of gold represents a non-U.S. Generally Accepted Accounting Principles (GAAP) measurement that the Company believes provide management and investors an indication of net cash flow. Management also uses this measurement for the comparative monitoring of performance of mining operations period-to-period from a cash flow perspective.
“Total cash cost per ounce” is a measure developed by mining companies in an effort to provide a comparable standard; however, there can be no assurance that our reporting of this non-GAAP measure is similar to that reported by other mining companies. Cost of sales and other direct production costs and depreciation, depletion and amortization, was the most
comparable financial measures calculated in accordance with GAAP to total cash costs.
U.S. Corporate Office
6500 N. Mineral Drive, Suite 200
Coeur d’Alene, Idaho 83815-9408
208.769.4100
Canadian Corporate Office
Suite 970, 800 W. Pender Street
Vancouver, BC, Canada V6C 2V6
604.682.6201
Investor Inquiries
800.432.5291
hmc-info@hecla-mining.com
www.hecla-mining.com