Hecla

Mining
p y
Company
RBC Capital 5th Annual Silver Conference
December 8, 2009

Cautionary Statements
Cautionary Note Regarding Forward Looking Statements

Statements made which are not historical facts, such as anticipated payments, litigation outcome,
production, sales of assets, exploration results and plans, costs, and prices or sales performance
are “forward-looking
forward looking statements
statements” within the meaning of the Private Securities Litigation Reform
Act of 1995, and 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, exploration risks and results, political risks, project development risks, labor issues and
ability to raise financing. Refer to the company’s Form 10-Q and 10-K 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.

Cautionary Note Regarding Estimates of Measured
Measured, Indicated and Inferred Resources

The United States Securities and Exchange Commission permits mining companies, in their filings
with the SEC, to disclose only those mineral deposits that a company can economically and legally
extract or produce. We use certain terms in this presentation, such as “measured," “indicated,"
and "inferred resources" that the SEC g
guidelines strictlyy prohibit
p
us from including
g in our filing
g with
the SEC. U.S. investors are cautioned not to assume that any or all of measured, indicated or
inferred resources are economically or legally mineable or that these resources will ever be
converted into reserves. U.S. Investors are urged to consider closely the disclosure in our Form
10-K and Form 10-Q. You can review and obtain copies of these filings from the SEC's website at
htt //
http://www.sec.gov.
1

Corporate Profile
¾ NYSE Listed - Symbol HL
¾ Market Capitalization - $1.54 billion*
¾ Recent Price - $6.50*
$6 50*
¾ Annual silver production of 10.5-11 million ozs.
¾ 10 + years of mine reserves
¾ 60,000
60 000 oz/yr gold plus zinc
zinc, lead
¾ Two operating US mines
*At November 24, 2009

2

Hecla is Unique – Established, Growing
¾ Largest producer of silver in US
¾ 2nd largest zinc; 3rd largest lead; plus
gold

¾ Low-cost
Lo
o tp
producer
od e
¾ Cash cost approx. $2.25/oz*

Greens Creek Mine, Alaska – Since 1989
Vancouver, BC
Coeur d’Alene, Idaho
Lucky Friday Mine, Idaho – Since 1942

¾ Long-life
Long life mines
¾ Production & resource growth

*San Juan Silver, Colorado

¾ Al
Almostt 2x
2 2007 production;
d ti
CAGR off
18% over 5-years for resources
*San Sebastian, Mexico

*Assumes $0.80/lb lead, zinc

3

Debt Free & Cash On Hand
Bank Debt and Cash
Position
$400
$

¾ $750 mm acquisition of Greens
Creek mine in Q2/08

(in millions)

$360

$350

¾ Credit crisis limits refinancing

$300

¾ Metal price recovery in 2009

$250

¾ Bank debt repaid

$199

$200

$38
$46

¾ $32.3 mm cash flow in Q3/09

$85

$79

$100
$50

¾ $60 mm revolving credit facility

$162

$150

$36

$63

$57
$38

$38 $47
$0

$0

C h
Cash

B k Debt*
Bank
D bt*

*Bank debt includes short- and long-term bank debt; does not include capital leases of $3.6 million.
** Proforma

4

Largest US Silver Producer
2008

Revett
US Silver 3%
4%
Newmont
5%

Apollo Gold
2%

Kinross
2%

Other
35%

Coeur
8%

Teck Cominco
17%

Hecla
24%
Source – Hecla, Public Filings, GFMS

5

Significant Silver Reserves in the US
Hecla
Argentina,
23%

USA,
100%

Argentina,
A
i
18%

Mexico,
0.2%

Sweden, 5%

USA, 5%
Peru, 1%

Peru, 81%

Peru, 44%

Greece, 2%

First Majestic

Silver Standard

Mexico,
22%

Mexico,
26%

Bolivia,
13%

Portugal,
Portugal
20%

C
Coeur

Argentina,
17%

Mexico ,
45%

Canada,
0.2%

Australia,
17%

Hochschild

Pan American Silver

Silver Wheaton

Fresnillo

Mexico
32%

Chile, 3%
g
,
Argentina,
3%

Argentina,
68%
Bolivia,,
55%

Mexico,,
100%

Mexico, 
100%

Source – Hecla, Public Filings,
Reserves data only, Silver Wheaton’s reserves include Pascua Lama’s reserves.

6

Consistently Lowest Cost
$10

9.6
9.2

Cash Co
osts - US$/oz of Silver

$9

8.2
82

$8

7.7

7.5

$7
5.3
4.5

8.6
7.6

6.6
5.9 6.0

$6

$4

7.7

6.6

$5

8.7

8.6

5.6
4.9

4.7

4.8
4.0

3.4

3.4

$3
$2
0.9

$1
$HL
Q2 2008

Source – Public Filings

PAAS
Q3 2008

Q4 2008

CDE
Q1 2009

Q2 2009

FR
Q3 2009

7

Increased Productivity at Both Mines
Greens Creek

Lucky Friday
Tons/day
2 300
2,300

$90
$80

13 00
13.00

2,250

12.00

2,200

11.00

10
1.0
0.9

0.2

2,000

7.00

0.0
3Q 2008

Milling Cost/Ton

0.1

6.00

3Q 2009

2Q 2009

1Q 2009

4Q 2008

1 950
1,950
3Q 2008

$0

0.3

8.00

$20
$10

0.4

Mining Cost/Ton

Silver Grade

Tons per Day Milled

3Q 2009

2,050

0.5
9.00

2Q 2009

$30

0.6

10.00

1Q 2009

2,100

0.7

4Q 2008

$40

Silver Grade

2,150

To
ons Milled per Da
ay

$50

Silver Produced

Source – Hecla

8

$1.6

$12

$1.4

$10

$1.2

$8

$1.0

$6

$0.8

$4

$0.6

$2

$0.4

$-

$0.2

$(2)

$0.0

Silv
ver Cash Costs
s - $/oz

By--product Credits are an Advantage for Hecla
By

Lead
d and Zinc Pric
ces - $/lb

Co
ost per Ton Mille
ed

$60

Silver oz - Million

0.8

$70

$(4)
2005

2006

2007

Lead ($/
($/lb))

Q1/08

Q2/08

Zinc ($/
($/lb))

Source – Public Filings
Lead and Zinc prices – www.Metalprices.com

Q3/08
Hecla

Q4/08

Q1/09

Pan American

Q2/09

Q3/09

Coeur

9

2009 Revenue by Metal (60% Ag+Au)
Greens Creek

Zinc, 25%

Zinc, 29%
Silver, 39%

Silver, 43%
Lead 9%
Lead,

Lead, 15%

Gold, 22%
Lucky Friday

Gold, 17%

Zinc, 15%

Based on 2009 Consensus Prices*:
Silver
$ 13.16/oz
Gold
$
917/oz
Zinc
$
0.65/lb
Lead
$
0.64/lb

Silver, 52%

Lead, 33%

*Future consensus prices based on Canaccord Adams industry analyst estimates as of June 29, 2009.

10

Best Margins in Six Quarters
Margin/oz

Yearly
$16.20

Quarterly
$19.10

$10 82
$10.82

$13.74
$10.57

$11.33

$7.94
$4.67
$2.47

$2.16

Margin

$4.35

$10.35

$13.85

$2.71

$3.48

$1.43

$2.02

$7.49

$4.20 Cash Costs/oz

$2.96

$3.43

$0.24

$4.46

$4.67

$3.38
$0.85

$(2.81)

($1.42)

2002 2003 2004 2005 2006 2007 2008

Source – Hecla

11

Mine Life for N.A.N.A.- Listed Silver Producers
16

Mine L
Life - Years

14
12
10
8
6
4
2
0

Source – Hecla and Public Filings
* Based on Mine Reserves

12

High CAGR for 2006 – 2009 Silver Production
2006
2
– 2009
9E Productio
on CAGR - %

25%
20%
15%
10%
5%
0%
Hecla
Source – Hecla

Pan American

Coeur

13

Silver Reserves and Resources
Silver Reserve
S
es and Resources - Million oz

350

> 10-year mine life

300

250

200
Other
Greens Creek
Lucky Friday
Sil
Silver
Reserves
R

150

100

50

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Source - Hecla

14

Higher Reserves Per Share
0.7

06
0.6

Greens Creek Acquisition Boosted
Reserve Quality & Quantity

0.61
0 56
0.56

Silver Reserves - oz/share

42%
0.5
0.42

0.43

0.43

2006

2007

0.4

0.3

0.2

0.1

2005

Source - Hecla

Q1/09

Q2/09

15

Exploration Efforts are Expanding Again
¾40% increase to 2009 exploration program
¾Total spending of $9.5 million
¾D illi att allll ffour project
¾Drilling
j t areas iin H2/09
¾Large, district-sized land packages in the
US and Mexico

16

Greens Creek Mine (Alaska)
¾ Higher-grade, Ag-Zn-Au-Pb mine
¾ World’s
World s 6th largest silver mine
¾ Long-life: produced >150 mm oz Ag
and >1 mm oz Au

Greens Creek

¾ Low cost: historical cash costs <$3/oz
¾ Continuously replace reserves with
>100 mm oz Ag & 0.8
0 8 mm oz Au
¾ Represents ¾ of Hecla’s production
¾ + 7 mm oz silver in 2009 and
60,000 oz gold, zinc, lead

17

Greens Creek - Underexplored
¾ Discovered in 1973
¾ A rare, precious
metal enriched base
metal deposit
¾ Deposit type comes
i clusters
in
l t

¾ Restricted exploration
till 2004
¾ Land exchange in
1997

¾ Recent studies have
outlined
tli d th
the kkey
mineralized horizon
(red-trace) and
multiple
p targets
g

MINE

18

Greens Creek, In
In--Mine Exploration Targets
Potential
Ore Trends

Shop
Ore

¾ Recently expanded
scope of underground
and surface programs

19

Lucky Friday Mine – Big Ounces at Depth
¾ Operating since 1942
¾ Feasibility to extend mine life 20
plus years

Northern Idaho

¾ Underground silver-lead-zinc
mine
¾ Grade rising, widths increasing,
economics improving deeper
¾ Part of an underexplored
property
¾ 3 mm oz Ag plus lead-zinc in ‘09
¾ ¼ mile from Interstate 90

20

Lucky Friday (Ag Grade x
X Width)
Width)
Mid-2009
30 VEIN

(Grades are Diluted and Uncapped)

30 Vein
Levels

Avg
Width

Ag oz/t

Pb %

Zn %

6300-6500

13.9 feet

10.3

7.8

2.6

6500-7000

15.2 feet

15.69

9.93

3.94

7000-7750

16.5 feet

19.09

10.77

5.04

Note: Current reserve cutoff grade is $100 NSR.
Metal prices – $12.25/oz silver, $0.80/lb lead and zinc

+26.6% increase in
Ag/vertical
A
/ ti l foot
f tb
below
l
6300L
(based on resource Dec 31, 2008)

21

A World Class Silver Camp
Hecla Land Position

The Silver Valley
Valley, North Idaho
¾ 1.2 billion oz silver produced

HERCULES

TAMARACK
HECLA

¾ 300 million oz silver from
Hecla’s land position
¾ Significant vertical continuity in
the district (+7500 feet)
¾ Large 25 sq. mile claims area
¾ Underexplored
p
district
¾ Surface drilling complete

22

San Juan Silver JV (Colorado)
¾ Past production 84 mm oz Ag
¾ Potential >100 mm oz Ag
¾ Excellent exploration
potential
¾ 37 mm oz Ag resource
¾ Multiple vein structures
¾ Surface drill program nearing
completion

23

San Sebastian Project (Mexico)
¾ On-trend with major mines
and deposits in central Mexico
¾ District–size land position
¾ Build on Hugh Zone resource
¾ Systematic multi-year
exploration approach
¾ Surface drilling continues

24

Hecla - Secure U.S. Silver Assets
Enterp
prise Value/ S
Silver Reserve
es + Resources
per Sha
are - US$/Sha
are

$7.5

6.78

$7.0

EV/oz Silver Reserves + Resources

$6.5
$6.0
$5.5

4.60

$5.0
$4.5
$4.0
$3.5

2.81

$3 0
$3.0

3.09

3.20

$2.5
$2.0
$1.5

1.27

$1.0
$0.5
$-

FR

PAAS

CDE

SLW

HL

Enterprise Value = Fully Diluted Market Cap + Debt – Cash
Share Prices as of November 24, 2009
Source – Hecla, Public Filings, Pan American’s reserves & resources reflect Aquiline’s acquisition.

HOC

25

Peer Group Share Performance
Hecla
450%

PAAS

1 Year

SLW

SSRI

190%

CDE
YTD - 2009

140%

350%
250%

90%

150%

40%

50%

-10%

-50%

-60%

300%
250%

Feb 10 – Nov 24,, 2009

200%
150%
100%
50%
0%
-50%

180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
-20%

Apr 28 – Nov 24,
24 2009

Source – Yahoo; Share prices as of November 24, 2009

26

Investment Highlights
¾ Low-cost, long-life US mines
¾ Largest US silver producer
¾ Operational strengths with similar mines
¾ Reserve and resource growth
¾ Commitment to grow through exploration,
exploration M&A
¾ Attractive valuation
¾ Share liquidity with avg. volume of >12 mm/day

27