S T R O N G I N V E S T M E N T
F U N D A M E N T A L S
O R G A N I C G R O W T HH E C L A P R O P E R T I E SN E W H E C ...
H E C L A M I N I N G C O M P A N Y
2
Cautionary Note Regarding Forward Looking Statements
Statements made which are not h...
H E C L A M I N I N G C O M P A N Y
3
Qualified Person (QP) Pursuant to Canadian National Instrument 43-101
Dean McDonald,...
H E C L A M I N I N G C O M P A N Y
The New Hecla - Strong Assets and Cash Flow
• Diversification of operating base, earni...
H E C L A M I N I N G C O M P A N Y
5
The New Hecla: Long-Life Mines with Growing Production
Historical Production
Silver ...
H E C L A M I N I N G C O M P A N Y
North American Focused Asset Portfolio
All operations in lower-risk, mining-friendly j...
H E C L A M I N I N G C O M P A N Y
Multiple Revenue Streams  Base Metals Hedging
1. Reserves as of December 31, 2012
2. ...
H E C L A M I N I N G C O M P A N Y
Q1/12 Q2/12 Q3/12 Q4/12 Q1/13
$279
$233 $232
$191
$1692
$189
Hecla Aurizon
$3581
Consi...
H E C L A M I N I N G C O M P A N Y
Issuer
Date
Issued Coupon Maturity
Gross
Proceeds
Current
Rating
Hecla 12-Apr-13 6.875...
H E C L A M I N I N G C O M P A N Y
Strong Silver Margins
1. Total cash cost per ounce of silver represent non-U.S. Genera...
H E C L A M I N I N G C O M P A N Y
Strong Gold Margins at Casa Berardi
11
1. Total cash cost per ounce of gold represents...
H E C L A M I N I N G C O M P A N Y
204
186
9.3 0.3
19.6
5.5 1.9 0.8
$-
$50
$100
$150
$200
$250
$300
Q1/2013 Beg.
Cash
Adj...
H E C L A M I N I N G C O M P A N Y
2003 2012
45
150
2003 2012
0.8
3.8
Reserve Growth1
2003 - 2012
Silver ounces (millions...
H E C L A M I N I N G C O M P A N Y
2012 2017E
6.4
15
Strong, Disciplined Production Growth Anticipated
Silver ounces (mil...
H E C L A M I N I N G C O M P A N Y
Strong Portfolio of Producing AssetsStrong Portfolio of Producing Assets
15
H E C L A M I N I N G C O M P A N Y
Portfolio of High Quality, Long-Life Assets
16
Greens Creek Lucky Friday Casa Berardi
...
H E C L A M I N I N G C O M P A N Y
Greens Creek - Q1 Silver Production up 34%
 Produced ~ 200 million ounces of
silver a...
H E C L A M I N I N G C O M P A N Y
Greens Creek - Deep Southwest
18
Location View
Looking North
Southwest
Bench Lower
Sou...
H E C L A M I N I N G C O M P A N Y
Ramping Up Production at Lucky Friday
 Production recommenced in
February
 Expect pr...
H E C L A M I N I N G C O M P A N Y
20
Looking NW
Silver Shaft
7500 level
6500 level
#4 Shaft
30 Vein
5900 level
4900 leve...
H E C L A M I N I N G C O M P A N Y
Upgrades to the Lucky Friday Ramp System
21
H E C L A M I N I N G C O M P A N Y
Casa Berardi - Long-Life Gold Asset
Highlights
 Produced 24,400 oz Au in Q1/13
at tot...
H E C L A M I N I N G C O M P A N Y
0
50
100
150
200
250
300
350
400
450
500
0
20
40
60
80
100
120
SanCristobal(50%)*
Pita...
H E C L A M I N I N G C O M P A N Y
Exploration and Pre-DevelopmentExploration and Pre-Development
24
H E C L A M I N I N G C O M P A N Y
Longitudinal of Middle Vein
25
Reserve and Resource Growth - Middle Vein (Mexico)
 Mi...
H E C L A M I N I N G C O M P A N Y
Organic Growth - San Juan Silver (Colorado)
 Includes historic Bulldog mine:
produced...
H E C L A M I N I N G C O M P A N Y
New Quebec Gold Assets
 Gold producer and exploration portfolio
in western Quebec
 H...
H E C L A M I N I N G C O M P A N Y
Precious Metals Fundamentals
Remain Strong
Precious Metals Fundamentals
Remain Strong
...
H E C L A M I N I N G C O M P A N Y
Silver - The Metal of This Age
 Has the highest electrical conductivity of all the me...
H E C L A M I N I N G C O M P A N Y
Silver Consumption per Capita
United
States
China
India
Japan
Germany
South
Korea
-
0....
H E C L A M I N I N G C O M P A N Y
Free Cash Flow
Secure Multiple
Revenue
Streams
11
22
33
44
66
77
Established
Work Forc...
S T R O N G I N V E S T M E N T
F U N D A M E N T A L S
O R G A N I C G R O W T HH E C L A P R O P E R T I E SN E W H E C ...
H E C L A M I N I N G C O M P A N Y
Seasoned Management Team with Significant Experience
Phillips S. Baker, Jr., has 15+ y...
H E C L A M I N I N G C O M P A N Y
Q1 2013 - Exploration Program
The first quarter 2013 exploration program focused on:
...
H E C L A M I N I N G C O M P A N Y
Q1 2013 - Pre-Development Programs
The first quarter 2013 pre-development programs wer...
H E C L A M I N I N G C O M P A N Y
Reserves & Resources Update (on Dec. 31, 2012)
36
Silver Gold Lead Zinc Silver Gold Le...
H E C L A M I N I N G C O M P A N Y
Casa Berardi Reserves (on Dec. 31, 2012)
37
Note: All estimates are in-situ; Rounding ...
H E C L A M I N I N G C O M P A N Y
Reserve Grades vs. Silver Prices
38
Mandalay
First Majestic
Hocschild
Hecla
Endeavour ...
H E C L A M I N I N G C O M P A N Y
Casa Berardi - Long Section
1
39
H E C L A M I N I N G C O M P A N Y
191
$694
$268
$193
$103
$45
40
$105
$231
0
200
400
600
800
1,000
2009 Ending
Cash
EBIT...
H E C L A M I N I N G C O M P A N Y
Hecla EBITDAX Reconciliation
Note: All monetary amounts presented in thousands of doll...
H E C L A M I N I N G C O M P A N Y
Aurizon EBITDAX Reconciliation
Note: All monetary amounts presented in thousands of do...
H E C L A M I N I N G C O M P A N Y
43
Silver - Total Cash Cost GAAP Reconciliation
Reconciliation of Cash Costs per Ounce...
H E C L A M I N I N G C O M P A N Y
Gold - Total Cash Cost GAAP Reconciliation
1. Cash cost per ounce of gold represents a...
H E C L A M I N I N G C O M P A N Y
45
Total Cash Cost GAAP Reconciliation
1. Cash costs per ounce of silver represent non...
H E C L A M I N I N G C O M P A N Y
Greens Creek Cash Cost Reconciliation
46
GREENS CREEK UNIT Q1 2013
Total cash costs $ ...
H E C L A M I N I N G C O M P A N Y
Adjusted Earnings Reconciliation
47
Reconciliation of Net Income Applicable to Common ...
H E C L A M I N I N G C O M P A N Y
Hecla Adjusted EBITDA Reconciliation
This presentation refers to a non-GAAP measure of...
H E C L A M I N I N G C O M P A N Y
Aurizon Adjusted EBITDA Reconciliation
This presentation refers to a non-GAAP measure ...
H E C L A M I N I N G C O M P A N Y
50
Silver Space
Source: MEG, BMO Capital Markets (06/17/13)
H E C L A M I N I N G C O M P A N Y
Silver Space
51 Source: Company Filings, BMO Capital Markets (06/17/13)
H E C L A M I N I N G C O M P A N Y
Silver Space
52 Source: Company Filings, BMO Capital Markets (06/17/13)
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Hecla julyupdateweb

  1. 1. S T R O N G I N V E S T M E N T F U N D A M E N T A L S O R G A N I C G R O W T HH E C L A P R O P E R T I E SN E W H E C L A The New Hecla Growing Our Production, Reserves and Cash Flow July 2013
  2. 2. H E C L A M I N I N G C O M P A N Y 2 Cautionary Note Regarding Forward Looking Statements Statements made which are not historical facts, such as strategies, plans, anticipated payments, litigation outcome (including settlement negotiations), production, sales of assets, 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. 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 factors that may impact expected future results. We undertake no obligation to update forward-looking statements other than as may be required by law. Cautionary Note Regarding Estimates of Measured, Indicated and Inferred Resources Reporting requirements in the United States for disclosure of mineral properties are governed by the SEC and included in the SEC's Securities Act Industry Guide 7, entitled “Description of Property by Issuers Engaged or to be Engaged in Significant Mining Operations” (“Guide 7”). However, the Company is also a "reporting issuer" under Canadian securities laws, which require estimates of mineral resources and reserves to be prepared in accordance with Canadian National Instrument 43-101 (“NI 43-101”). NI 43-101 requires all disclosure of estimates of potential mineral resources and reserves to be disclosed in accordance with its requirements. Such Canadian information is being included here to satisfy the Company's “public disclosure” obligations under Regulation FD of the SEC and to provide U.S. holders with ready access to information publicly available in Canada. Reporting requirements in the United States for disclosure of mineral properties under Guide 7 and the requirements in Canada under NI 43-101 standards are substantially different. This document contains a summary of certain estimates of the Company, not only of proven and probable reserves within the meaning of Guide 7, which requires the preparation of a “final” or “bankable” feasibility study demonstrating the economic feasibility of mining and processing the mineralization using the three-year historical average price for any reserve or cash flow analysis to designate reserves and that the primary environmental analysis or report be filed with the appropriate governmental authority, but also of mineral resource and mineral reserve estimates estimated in accordance with the definitional standards of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in NI 43-101. The terms “measured resources”, "indicated resources," and "inferred resources" are Canadian mining terms as defined in accordance with NI 43-101. These terms are not defined under Guide 7 and are not normally not permitted to be used in reports and registration statements filed with the SEC in the United States, except where required to be disclosed by foreign law, as is the case here. Still, investors are cautioned not to assume that any part or all of the mineral deposits in such categories will ever be converted into proven or probable reserves. “Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of such a "resource” will ever be upgraded to a higher category or will ever be economically extracted. Investors are cautioned not to assume that all or any part of a "resource” exists or is economically or legally mineable. Investors are also especially cautioned that the mere fact that such resources may be referred to in ounces of silver and/or gold, rather than in tons of mineralization and grades of silver and/or gold estimated per ton, is not an indication that such material will ever result in mined ore which is processed into commercial silver or gold. Cautionary Note Regarding Non-GAAP Measures Total cash cost per ounce of silver, gold and earnings before adjustments represents non-U.S. Generally Accepted Accounting Principles (GAAP) measurement. A reconciliation of total cash cost to cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) can be found in the Appendix. Cautionary Statements
  3. 3. H E C L A M I N I N G C O M P A N Y 3 Qualified Person (QP) Pursuant to Canadian National Instrument 43-101 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 mineral projects in this presentation. 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 titled “Technical Report for the Greens Creek Mine” dated March 28, 2013, and for the Lucky Friday Mine are contained in a technical report titled “Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA” dated March 28, 2013. Also included in these two 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 two technical reports are available under Hecla's profile on SEDAR at www.sedar.com. Dean McDonald, P.Geo., Vice President – Exploration serves as a Qualified Person on all mineral projects except the following: Casa Berardi Underground mineral reserve and resource estimates, implementation and the quality control program were prepared and supervised by Sylvain Picard P. Eng., Principal Mine Geologist for Casa Berardi, and a "qualified person" as defined by the National Instrument 43-101. Mineral reserve and resource estimates for the Principal Mine and East Mine open pits were prepared by Patrice Live, P.Eng. of BBA Inc. as the "qualified person" for BBA Inc., as defined by National Instrument 43-101, is. Information of a technical and scientific nature in this presentation has been prepared under the supervision of Christian Bourcier, P. Eng., General Manager for Casa Berardi, and a "qualified person" as defined by the National Instrument 43-101. Fayolle The updated mineral resource estimate was prepared by InnovExplo of Val-d'Or, Quebec, in collaboration with Aurizon's personnel. The Independent and Qualified Persons for the updated mineral resource estimate, as defined by National Instrument 43-101, are Pierre-Luc Richard , M.Sc., P.Geo. and Alain Carrier , M.Sc., P.Geo. (InnovExplo Inc.), and the effective date of the estimate is August 3, 2012. Metallurgical testwork was conducted by SGS Mineral Services of Lakefield, Ontario. Heva-Hosco Drill hole planning, implementation and the quality control program is supervised by Martin Demers P.Geo ., General Manager of Exploration, a qualified person as defined by National Instrument 43-101. Mr. Demers is also responsible for the scientific and technical information in this presentation. The Feasibility Study was prepared by leading independent industry engineering firms and consultants, all Qualified Persons under National Instruments 43-101, with the collaboration of the Aurizon Technical Group. BBA Inc. Patrice Live, Eng. Mining Manager (mineral reserves, pit design, mine planning, financial analysis, mining operating and capital costs). Angelo Grandillo, Eng. (metallurgical test work, ore processing, milling operating and capital costs). Roche Yves Thomassin, M. ScA., (environment, restoration, operating and capital cost estimates). SGS-Geostat Ltd. Maxime Dupéré. Geologist (mineral resources) Qualified Person (QP)
  4. 4. H E C L A M I N I N G C O M P A N Y The New Hecla - Strong Assets and Cash Flow • Diversification of operating base, earnings base and geographic exposure • Downside protection with base metal hedging policy • Adds scale and improves liquidity Low Risk Diversification • Robust free cash flow (1) • Low-cost operations • Manageable capital associated with growth projects • Double-digit unlevered pre-tax returns at current and consensus prices (2) Growth in Cash Flow Generation • Two primary silver and one primary gold mine • Long-lived assets all with mine lives of ten years or more • Strong organic growth potential • Goal of silver production growth to 15.0 million ounces by 2017 Growth from Quality Assets 1. Free Cash Flow (for mines) (non-GAAP measure) defined as Cash Flow from Operations – Capex – Lease Financing – Exploration 2. Current price assumption: $1,575/oz gold. Consensus prices per Bloomberg: Gold prices: 2013: $1,795/oz, 2014: $1,815/oz, 2015: $1,680/oz, 2016 and long-term: $1,600/oz Addition of Aurizon Creates the Next Chapter of Growth and Diversification in Our 122-Year Mining History 4
  5. 5. H E C L A M I N I N G C O M P A N Y 5 The New Hecla: Long-Life Mines with Growing Production Historical Production Silver Equiv: 489.4mm oz Gold Equiv: 8.3mm oz 2012 Revenue: $545 million 1. Proven and Probable reserves as of December 31, 2012, see Appendix. 2. In 2012, production at Lucky Friday was suspended. 3. Non-GAAP measure. The Company will need to realize higher-then-current base metals prices in order to reach total consolidated costs of $5.00 per ounce silver cash cost guidance.  Aurizon acquisition completed June 1, 2013  Creates a new Hecla with three 100% owned long-life, low-cost mines  Each operation has over 10+ years of mine life  All situated in U.S. and Canada - stable and lower risk mining jurisdictions  Multi-metal production of silver, gold, lead and zinc with base metals hedging  Expected 2013 silver production of 8-9 million ounces at a cash cost of $5.00 per ounce(3)  Growing silver production to an expected 15 million ounces by 2017  Pro-forma gold production in 2012 of 192k ounces; expected to grow to 195k by 2014  Strong liquidity position Reserves by Metal (1) 2012A Revenue by Metal Pro Forma Operational Statistics (k oz Ag) (k oz Au) AurizonHecla 0 100 200 300 400 0 3000 6000 9000 12000 2008A 2009A 2010A 2011A 2012A (2)
  6. 6. H E C L A M I N I N G C O M P A N Y North American Focused Asset Portfolio All operations in lower-risk, mining-friendly jurisdictions 6
  7. 7. H E C L A M I N I N G C O M P A N Y Multiple Revenue Streams  Base Metals Hedging 1. Reserves as of December 31, 2012 2. 2011 comparison includes all 3 mines operating. 7 Hecla Standalone Pro Forma 2011 Revenue by Metals² 2011 Revenue by Mines Proven and Probable Reserves(1)  Policy is to hedge up to 60% of the next three years’ production of lead and zinc  Locking in revenue to cover costs  Currently, base metals hedging offsets approximately 50% of cash operating costs at Lucky Friday and Greens Creek for next 3 years  100% unhedged exposure to silver and gold Diversified, multi-metal, multi-revenue mining company
  8. 8. H E C L A M I N I N G C O M P A N Y Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 $279 $233 $232 $191 $1692 $189 Hecla Aurizon $3581 Consistently Strong Balance Sheet Cash and Cash Equivalents 8 (millions) 1. Pro-forma Hecla and Aurizon cash as of Mach 31, 2013 2. $5.3 million in transaction costs realized in Q1/2013
  9. 9. H E C L A M I N I N G C O M P A N Y Issuer Date Issued Coupon Maturity Gross Proceeds Current Rating Hecla 12-Apr-13 6.875% Sr. Notes 1-May-21 $500 B2/B Coeur 24-Jan-13 7.875% Sr. Notes 1-Feb-21 $300 B2/B+ Eldorardo Gold 10-Dec-12 6.125% Sr. Notes 15-Dec-20 $600 Ba3/BB IAMGOLD Corp. 14-Sep-12 6.750% Sr. Notes 1-Oct-20 $650 Ba/BB- New Gold 8-Nov-12 6.250% Sr. Notes 22-Nov-15 $500 B2/BB- 2-Apr-12 7.000% Sr. Notes 15-Apr-20 $300 B2/BB- Allied Nevada Gold 18-May-12 8.750% Sr. Notes 1-Jun-19 $400 B3/B Hudbay Minerals 18-Jan-13 9.500% Sr. Notes 1-Oct-20 $500 B3/B Senior Notes Overview Peer Comparison 1. In millions Source: Company Reports 1 9
  10. 10. H E C L A M I N I N G C O M P A N Y Strong Silver Margins 1. Total cash cost per ounce of silver represent non-U.S. Generally Accepted Accounting Principles (GAAP) measurement. A reconciliation of total cash costs to cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) can be found in the Appendix. 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. 10 1 Strong Cash Margins ($2.81) $4.20 $1.91 ($1.46) $1.15 $2.70 $7.02 $16.59 $10.20 $13.72 $24.16 $34.15 $29.41 $21.84$13.78 $14.40 $15.63 $22.70 $35.30 $32.11 $28.86 ($5) $0 $5 $10 $15 $20 $25 $30 $35 $40 2007 2008 2009 2010 2011 2012 Q1/13 $/oz Cash Cost Per Ounce Cash Margin Realized Silver Price 120% 71% 88% 106% 97% 92% 76% 2
  11. 11. H E C L A M I N I N G C O M P A N Y Strong Gold Margins at Casa Berardi 11 1. Total cash cost per ounce of gold represents a non-U.S. Generally Accepted Accounting Principles (GAAP) measurement. A reconciliation of total cash costs to cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) can be found in the Appendix. 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. $308 $331 $399 $401 $541 $537 $696 $812 $317 $365 $448 $514 $604 $1,041 $962 $809 $625 $696 $847 $915 $1,145 $1,578 $1,658 $1,621 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 2006 2007 2008 2009 2010 2011 2012 Q1/13 $/oz Cash Cost Per Ounce (1) Cash Margins Realized Gold Price (2) 51% 52% 53% 56% 53% 66% 58% 50%
  12. 12. H E C L A M I N I N G C O M P A N Y 204 186 9.3 0.3 19.6 5.5 1.9 0.8 $- $50 $100 $150 $200 $250 $300 Q1/2013 Beg. Cash Adj. EBITDA Share Issuance Capex WCC Expl.+ Pre-dev. Interest Exp. & Other Q1/2013 Ending Cash 191 169 33.3 1.9 25.8 11.3 9.2 6.0 5.3 $- $50 $100 $150 $200 $250 Q1/2013 Beg. Cash Adj. EBITDA Cash Gains on Derivatives Capex Expl. & Pre-dev. Dividends & Other Cash Taxes & Purchase of Investments Aurizon Acquisition Costs Q1/2013 Ending Cash Cash Flow Usage: Flexibility 1. Adjusted EBITDA (non-GAAP measure) reconciliation in appendix. (US$mm) 12 (CAD$mm) Hecla Cash Bridge Q1 2013 Aurizon Cash Bridge Q1 2013 1 1
  13. 13. H E C L A M I N I N G C O M P A N Y 2003 2012 45 150 2003 2012 0.8 3.8 Reserve Growth1 2003 - 2012 Silver ounces (millions) Gold ounces (millions)(2) 1. See Proven and Probable reserves data in the Appendix. 2. Includes Aurizon’s reserves for 2012. 233% 375% 13
  14. 14. H E C L A M I N I N G C O M P A N Y 2012 2017E 6.4 15 Strong, Disciplined Production Growth Anticipated Silver ounces (millions) (1) Gold ounces (thousands)(2) 134% 2% 1. Hecla’s Lucky Friday mine was closed during 2012. 2. Includes Aurizon’s production levels for 2012. 14
  15. 15. H E C L A M I N I N G C O M P A N Y Strong Portfolio of Producing AssetsStrong Portfolio of Producing Assets 15
  16. 16. H E C L A M I N I N G C O M P A N Y Portfolio of High Quality, Long-Life Assets 16 Greens Creek Lucky Friday Casa Berardi Location Alaska Idaho Quebec Ownership 100% 100% 100% Primary Metal Ag Ag Au Primary Metal Grade (oz/t) 12.1 13.4 0.2 Mine Life (Years) 10+ years 25+ years 10+ years (1) 2013E Metal Production Ag (mm oz) / Au (koz) 6.0 - 7.0 M oz 2.0 M oz (2) 125 - 130 koz (2) 2013E By-Product Cash Cost ($/oz) (3) $3.25/oz $11.00/oz $810/oz 2013E Capital (Sustaining Capex) $75 M (~$35 M) $76 M (~$30 M) $102 M (~$30 M) Proven and Probable Reserves Gold 100%Silver 61% Lead 29% Zinc 10% Silver 44% Gold 20% Lead 10% Zinc 26% 1. Based on proven and probable reserves only. 2. Lucky Friday and Casa Berardi in transition years. 3. Non-GAAP measure. A reconciliation of total cash costs to cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) can be found in the Appendix.
  17. 17. H E C L A M I N I N G C O M P A N Y Greens Creek - Q1 Silver Production up 34%  Produced ~ 200 million ounces of silver and 1.5 million ounces of gold since startup in 1989  6.4 million ounces of silver production in 2012, with steady production increases during course of the year  Q1 silver production of 1.8 million ounces, up 34% from a year ago  Avg. Q1 cash cost of $5.02 per ounce(1)  Rehabilitation begins on 29 Ramp, as part of East Ore project  Mine life est. 10+ years 17 1. Total cash cost per ounce of silver represents a non-U.S. Generally Accepted Accounting Principles (GAAP) measurement. A reconciliation of total cash costs to cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) can be found in the Appendix.
  18. 18. H E C L A M I N I N G C O M P A N Y Greens Creek - Deep Southwest 18 Location View Looking North Southwest Bench Lower Southwest Deep Southwest 200 South Model View Looking North/Northwest 500 Feet
  19. 19. H E C L A M I N I N G C O M P A N Y Ramping Up Production at Lucky Friday  Production recommenced in February  Expect production to ramp up and costs to lower through first half 2013  Expect full year production of more than 2 million ounces, increasing to 3 million ounces in 2014  Two of seven production areas have restarted, 5900 bypass completed  #4 Shaft sinking resumed, expected to access higher grades, extend mine life  Mine life est. 25+ years 19
  20. 20. H E C L A M I N I N G C O M P A N Y 20 Looking NW Silver Shaft 7500 level 6500 level #4 Shaft 30 Vein 5900 level 4900 level 4050 level Current mining from 5900 level access Lucky Friday - Idaho
  21. 21. H E C L A M I N I N G C O M P A N Y Upgrades to the Lucky Friday Ramp System 21
  22. 22. H E C L A M I N I N G C O M P A N Y Casa Berardi - Long-Life Gold Asset Highlights  Produced 24,400 oz Au in Q1/13 at total cash cost of $812/oz¹  Expected 2013 gold production of 125,000 to 130,000 ounces  Potential to increase processing capacity to 2,400 tpd  High historical conversion (~65%) of resources to reserves  Expected to complete shaft deepening project in late 2013  Upside: expected completion of paste back-fill plant (Q3/13) and mill expansion (long-term) 22 Location Western Quebec Ownership 100% Metal Composition Au Expected 2013 Production 125 - 130 koz Estimated 2013 Cash Costs $810/oz Projected Life of Mine 20+ years Proven and Probable Reserves (Au) 2 1.46Moz 2013 Capital Program $102M 10+ years(reserve only) 1. Total cash cost per ounce of gold represents a non-U.S. Generally Accepted Accounting Principles (GAAP) measurement. A reconciliation of total cash costs to cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) can be found in the Appendix. 2. See Casa Berardi Proven and Probable reserves data in the Appendix.
  23. 23. H E C L A M I N I N G C O M P A N Y 0 50 100 150 200 250 300 350 400 450 500 0 20 40 60 80 100 120 SanCristobal(50%)* Pitarilla(SSRI)* SanBartolome(CDE)* GreensCreek(HL) Pirquitas(SSRI)* Ying(SVM) Huaron(PAA) LuckyFriday(HL) Palmarejo(CDE)* Rochester(CDE)* LaColorada(PAA) Morococha(PAA) LaParrilla(FR) LaEncantada(FR) SanVicente(PAA) ManantialEspejo(PAA) AlamoDorado(PAA)* Arcata(HOC) Pallancata(HOC) GC(SVM) SanJose(HOC) SanLuis(SSRI) SilverGrade-g/t SilverReserves-Moz Reserves Grades High Quality Assets Silver Reserves and Grades of Primary Silver Mines Source: Public filings, *Open pit mines - Palmarejo is both open pit and underground. Peer-leading Silver Grade Profile Results in Low-cost, High-margin Production SanCristobal(SMM)* 23
  24. 24. H E C L A M I N I N G C O M P A N Y Exploration and Pre-DevelopmentExploration and Pre-Development 24
  25. 25. H E C L A M I N I N G C O M P A N Y Longitudinal of Middle Vein 25 Reserve and Resource Growth - Middle Vein (Mexico)  Middle Vein at San Sebastian defined over 3,000 feet along strike, from surface to over 1,000 feet in depth  New Inferred Resources of 8.8 million silver ounces and 45,000 ounces gold appears open along strike
  26. 26. H E C L A M I N I N G C O M P A N Y Organic Growth - San Juan Silver (Colorado)  Includes historic Bulldog mine: produced 25 million ounces of silver before closing in 1985  7.6 million ounces of silver Indicated Resources  33.1 million ounces of silver Inferred Resources  2013 Activities:  Bulldog decline construction underway (1,300 feet completed) Bulldog Equity Amethyst 26 21 Square Mile land Package
  27. 27. H E C L A M I N I N G C O M P A N Y New Quebec Gold Assets  Gold producer and exploration portfolio in western Quebec  Heva and Hosco West extension and the Joanna Hosco Pit  Large in-pit gold resource at Hosco  Additional gold resources at Heva and Hosco West Extension  Attractive exploration potential  Growth potential with future open pit development and shaft deepening at Casa Berardi  Significant exploration portfolio  Portfolio of other earlier stage projects and investments 27
  28. 28. H E C L A M I N I N G C O M P A N Y Precious Metals Fundamentals Remain Strong Precious Metals Fundamentals Remain Strong 28
  29. 29. H E C L A M I N I N G C O M P A N Y Silver - The Metal of This Age  Has the highest electrical conductivity of all the metals  80% more conductive than aluminum  50% more conductive than gold, 6% more conductive than copper  Critically important in the miniaturization of circuits as electronic items become increasingly compact and users expect more power or utility  Has superior thermal conductivity  Transfers heat efficiently; doesn’t overheat  Highest reflectivity (94%) in visible light of the metals  Gold 72%, Aluminum 92% Source – The Silver Institute 201129
  30. 30. H E C L A M I N I N G C O M P A N Y Silver Consumption per Capita United States China India Japan Germany South Korea - 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 (10,000) 10,000 30,000 50,000 70,000 SilverOuncePerCapita 1990 GDP Per Capita (2000 US$) United States China India Japan Germany South Korea - 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 (10,000) 10,000 30,000 50,000 70,000 SilverOuncePerCapita 2010 GDP Per Capita (2000 US$) Increasing Silver Consumption Per Person in China and India 30
  31. 31. H E C L A M I N I N G C O M P A N Y Free Cash Flow Secure Multiple Revenue Streams 11 22 33 44 66 77 Established Work Force with Commitment to Safety Operating in Low Political Risk Jurisdictions Strong Investment Fundamentals Led by a management team with over 150 years of experience, Hecla is a multi-metal and operationally diversified company, operating low-cost mines in stable jurisdictions, generating strong and growing cash flow. LowRisk,StableOperations StrongCashFlowGeneration Portfolio of Three High Quality, Long-Life Operations High Cash Margins Strong Investment Fundamentals Strong Financial Position 5 31
  32. 32. S T R O N G I N V E S T M E N T F U N D A M E N T A L S O R G A N I C G R O W T HH E C L A P R O P E R T I E SN E W H E C L A AppendixAppendix
  33. 33. H E C L A M I N I N G C O M P A N Y Seasoned Management Team with Significant Experience Phillips S. Baker, Jr., has 15+ years of mining experience. He was previously VP and CFO of Battle Mountain Gold Company and before that was CFO at Pegasus Gold Inc. James A. Sabala, has 30+ years mining experience. James was previously executive VP and CFO at Coeur d’Alene Mines and VP and CFO of Stillwater Mining. Lawrence P. Radford, has 30+ years mining experience. He previously worked for Kinross Gold as VP of South American operations overseeing the La Coipa and Maricunga mines. Dr. Dean W.A. McDonald, is a geologist with over 30+ years experience. He was previously VP of Exploration for Committee Bay Resources Ltd. and exploration manager at Miramar Mining Company. David C. Sienko, was appointed VP and General Counsel in 2010. Prior to working at Hecla, he was a partner of K&L Gates LLP, where he specialized in counseling public and private entities on securities compliance, M&A, and corporate governance. Don Poirier, has 20+ years of mining experience. Prior to joining Hecla, Mr. Poirier was a mining analyst with Blackmont Capital from 2002-2007. Don held other mining analyst positions from 1988 to 2002. President and CEO Senior VP and CFO VP - Operations VP - Exploration VP - Corporate Development VP - General Counsel Over 150 Years of Combined Experience 33
  34. 34. H E C L A M I N I N G C O M P A N Y Q1 2013 - Exploration Program The first quarter 2013 exploration program focused on:  Continued expansion of mineralization along the 5250 and 200 South trends at Greens Creek with the delineation of the newly discovered Deep Southwest zone.  At Greens Creek definition drilling along the 200 South bench and limbs to increase confidence in the resource with goal to convert to reserves.  Exploration drilling of the Middle vein at San Sebastian has defined new mineralization near surface to the southeast. Mineralized intercepts of the North vein define a parallel vein structure north of the Middle vein.  In-fill drilling of the Middle vein has suggested the continuity of the resource and increased confidence to define a significant “indicated resource.”  Narrow, high-grade intersections of the You Like and Midnight veins at the Star expected to extend the mineralization trends.  Drilling along the Equity structure at San Juan Silver suggests a steeply plunging mineralized zone where it intersects the North Amethyst vein trend. 34
  35. 35. H E C L A M I N I N G C O M P A N Y Q1 2013 - Pre-Development Programs The first quarter 2013 pre-development programs were focused on:  Metallurgical testing of the Middle vein and Hugh zone ores at San Sebastian to determine the characteristics and appropriate processing methods and mill design.  Hydrology studies and optimization of the mining plan and underground development to access the Middle vein and Hugh zone.  Advancing the Bulldog decline at San Juan Silver in effort to gain access to the underground infrastructure to advance confirmation of historic resources and provide drill platforms in effort to expand the current resource.  Conceptual studies to determine production viability, rate and sequencing of mining at the Bulldog and evaluate processing methods, capital and operating costs and permitting requirements.  Incorporation of the resource from the Star complex into a broader conceptual study on the integration with the Lucky Friday mine. 35
  36. 36. H E C L A M I N I N G C O M P A N Y Reserves & Resources Update (on Dec. 31, 2012) 36 Silver Gold Lead Zinc Silver Gold Lead Zinc Tons (Oz/ton) (Oz/ton) (%) (%) (Ounces) (Ounces) (Tons) (Tons) Proven and Probable Reserves Proven Ore Reserves Lucky Friday, USA 2,206,600 12.1 — 7.4 2.7 26,778,900 — 163,350 58,560 Greens Creek, USA 12,000 9.3 0.095 2.7 7.8 112,500 1,100 330 940 Subtotal Proven 2,218,600 26,891,400 1,100 163,680 59,500 Probable Reserves Lucky Friday, USA 1,931,700 14.8 — 8.7 3.2 28,676,000 — 167,390 62,300 Greens Creek, USA 7,845,600 12.0 0.092 3.4 9.0 94,481,200 718,400 267,410 702,300 Subtotal Probable 9,777,300 123,157,200 718,400 434,800 764,600 Total Proven & Probable 11,995,900 150,048,600 719,500 598,480 824,100 Indicated Resources Lucky Friday, USA (1) 19,028,600 5.7 — 3.8 2.3 108,704,400 — 731,460 440,470 Greens Creek, USA (2) 448,600 5.9 0.119 3.2 7.0 2,650,500 53,500 14,300 31,580 San Sebastian, Mexico (3) 1,297,300 3.4 0.057 1.1 1.5 4,371,000 73,900 14,640 19,080 San Juan Silver, USA (4) 515,500 14.8 — 2.1 1.1 7,619,600 — 10,760 5,820 Star Complex, USA (5) 1,061,200 3.0 — 6.4 7.5 3,235,200 — 68,340 80,100 Total Indicated Resources 22,351,100 126,580,700 127,400 839,500 577,050 Inferred Resources Lucky Friday, USA (6) 6,921,900 9.1 — 5.6 2.3 62,651,500 — 384,930 158,240 Greens Creek, USA (7) 3,784,500 11.4 0.100 2.4 6.2 42,977,300 379,200 92,130 233,110 San Sebastian, Mexico (8) 5,695,900 4.2 0.028 0.5 0.6 23,897,400 159,700 25,880 36,040 San Juan Silver, USA (9) 3,078,200 10.7 0.012 1.3 1.1 33,096,400 35,600 40,990 34,980 Star Complex, USA (10) 2,972,300 3.2 — 5.9 5.5 9,377,900 — 174,080 163,480 Monte Cristo, USA (11) 913,300 0.3 0.144 — — 271,000 131,300 — — Total Inferred Resources 23,366,000 172,000,500 705,900 718,010 625,860 Note: All estimates are in-situ (1) Indicated Resources from Gold Hunter and Lucky Friday vein systems diluted and factored for expected mining recovery. (2) Indicated Resources only in Gallagher orebody, factored for dilution and mining recovery. (3) Indicated Resources diluted to minimum mining width of 2.0 meters for Hugh Zone, 1.5 meters for Andrea Vein. (4) Indicated Resources diluted to minimum mining width of 6.0 feet for Bulldog. (5) Indicated Resources diluted to minimum mining width of 4.3 feet. (6) Inferred Resources from Gold Hunter and Lucky Friday vein systems diluted and factored for expected mining recovery. (7) Inferred Resources in East Ore, Gallagher, NWW, 200S orebodies, factored for dilution and mining recovery. (8) Inferred Resources diluted to minimum mining width of 2.0 meters for Hugh Zone, 1.5 meters for Andrea & Middle veins. San Sebastian Hugh Zone also contains 29,720 tons of Cu at 1.46% Cu within 1,949,800 tons of ore. (9) Inferred Resources diluted to minimum mining width of 6.0 feet for Bulldog, 5.0 feet for Equity & North Amethyst veins. (10) In situ Inferred Resources diluted to minimum mining width of 4.3 feet. (11) Inferred Resources diluted to minimum mining width of 5.0 feet.
  37. 37. H E C L A M I N I N G C O M P A N Y Casa Berardi Reserves (on Dec. 31, 2012) 37 Note: All estimates are in-situ; Rounding may affect totals. 1. Open pit mineral reserves were estimated by BBA and underground mineral reserves were estimated by Aurizon personnel.  Mineral reserves and resources estimates have been completed in accordance with the CIM Standards with regards to mineral reserves and mineral resources estimates. Mineral resources are exclusive of mineral reserves. Mining depletion for 2012 is included in 2012 Mineral reserves.  Mineral reserves are estimated at a cut-off grade of 4.12 g/t Au for underground, and 1.2 g/t Au for East Mine open pit and 0.5g/t Au for Principal open pit.  Mineral reserves are estimated using an average long-term gold price of US$1,350 per ounce and a US$/C$ exchange rate of 1:1.  A minimum mining width of three meters was used.  Open pit mineral resources of Principal and East Mine were estimated by BBA. Open pit mineral resources of 160 zone and underground mineral resources of 160 and South West zones were reported in an internal report by InnovExplo –Consulting Proven Reserves Silver Gold Lead Zinc Silver Gold Lead Zinc Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % (000 oz) (000 oz) Tons Tons Casa Berardi Canada 100.0% 1,099 -- 0.18 -- -- -- 192 -- -- Total………………… 1,099 -- 192 -- -- Probable Reserves Silver Gold Lead Zinc Silver Gold Lead Zinc Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % (000 oz) (000 oz) (Tons) (Tons) Casa Berardi Canada 100.0% 7,950 -- 0.16 -- -- -- 1,269 -- -- Total………………… 7,950 -- 1,269 -- -- Proven andProbable Reserves Silver Gold Lead Zinc Silver Gold Lead Zinc Asset Location Ownership Tons (000) (oz/ton) (oz/ton) % % (000 oz) (000 oz) (Tons) (Tons) Casa Berardi (1) ……… Canada 100.0% 9,049 -- 0.16 -- -- -- 1,461 -- -- Total………………… 9,049 -- 1,461 -- --
  38. 38. H E C L A M I N I N G C O M P A N Y Reserve Grades vs. Silver Prices 38 Mandalay First Majestic Hocschild Hecla Endeavour Silver Fortuna Pan American Coeur Silver Standard 0 50 100 150 200 250 300 350 400 450 $20 $25 $30 $35 SilverGradeoz/t Silver Price $/oz Source – Proven and Probable Reserves, Data from Public Filings
  39. 39. H E C L A M I N I N G C O M P A N Y Casa Berardi - Long Section 1 39
  40. 40. H E C L A M I N I N G C O M P A N Y 191 $694 $268 $193 $103 $45 40 $105 $231 0 200 400 600 800 1,000 2009 Ending Cash EBITDAX Capex Basin Stmt. Expl.& Predev. Others 2012 PF Ending Cash Cash Flow Generation Adjusted EBITDAX(1) 2009-2012 Cash Bridge(2) 1. Adjusted EBITDAX reconciliation in appendix. 2. Aurizon’s cash of $75 million is net of the cash portion of the transaction after assuming $500 million in notes financing. 3. Includes dividends, Lucky Friday suspension costs and miscellaneous. AurizonHecla (3) (US$mm) (US$mm) $143 $235 $288 $171 $287 $0 $100 $200 $300 2009A 2010A 2011A 2012A 2012 Pro forma 40 $116 $171 $41 $190
  41. 41. H E C L A M I N I N G C O M P A N Y Hecla EBITDAX Reconciliation Note: All monetary amounts presented in thousands of dollars. 41 US$ millions 2008A 2009A 2010A 2011A 2012A PF 2012A Net Income from Continuing Operations ($37,173) $67,826 $48,983 $151,164 $14,954 $21,625 Plus: Depreciation 35,846 63,061 60,235 47,348 50,113 96,530 Plus: Income Taxes 3,807 (7,680) (123,532) 81,978 8,879 18,054 Plus: Interest Expense 19,573 11,326 2,211 2,875 2,427 32,218 Less: Interest and Other Income (3,842) (1,121) (126) 87 (22) (2,258) Plus: Debt-Related Fees -- 5,973 -- -- -- -- EBITDA $18,211 $139,385 ($12,229) $283,452 $76,351 $166,169 Plus: Loss on Impairment of Investments $373 $3,018 $739 $140 $1,171 $1,171 Plus / (Less): Net Loss (Gain) on Sale of Investments (8,097) (4,070) (588) (611) -- -- Plus / (Less): Loss (Gain) on Derivative Contracts -- -- 20,758 (37,988) 10,457 10,264 Plus: Provision for Closed Operations and Environmental Matters 4,312 7,721 201,136 9,747 4,652 4,652 Plus: Termination of Employee Benefit Plan -- (8,950) -- -- -- -- Plus: Lucky Friday Suspension-Related Costs -- -- -- -- 25,309 25,309 Plus / (Less): Loss (Gain) on Disposition of PPE and Mineral Interests (203) (6,234) 80 -- 275 275 Plus: Pre-Development -- -- -- 4,446 17,916 17,916 Plus: Share-Based Compensation 4,122 2,746 3,446 2,073 3,101 8,415 Adjusted EBITDA $18,718 $133,616 $213,342 $261,259 $139,232 $234,171 Plus: Discretionary exploration expense $22,471 $9,247 $21,605 $26,959 $31,822 $52,708 Adjusted EBITDAX $41,189 $142,863 $234,947 $288,218 $171,054 $286,879
  42. 42. H E C L A M I N I N G C O M P A N Y Aurizon EBITDAX Reconciliation Note: All monetary amounts presented in thousands of dollars. C$ millions 2008A 2009A 2010A 2011A 2012A Net Income from Continuing Operations $4,921 $36,706 $17,240 $43,931 $31,807 Plus: Income Taxes 6,602 20,706 13,911 42,653 24,266 Plus: Interest Expense 2,692 485 750 1,112 856 Plus: Depreciation 35,582 36,514 34,249 39,131 37,729 Less: Interest and Other Income (1,705) (498) (719) (1,538) (2,236) EBITDA $48,092 $93,913 $65,431 $125,289 $92,422 Plus / (Less) : Other Net Losses (Gains) ($4,524) ($288) ($2,157) $457 $1,840 Plus / (Less): Loss (Gain) on Derivative Contracts 10,586 (4,946) 4,402 (165) (193) Plus / (Less): Loss (Gain) on Foreign Exchange (1,059) 2,413 -- -- -- Plus: Non refundable tax credits -- (4,468) -- -- -- Plus / (Less): Capital Taxes (Recoveries) 397 837 -- -- -- Plus: Share-Based Compensation 4,003 2,865 7,564 6,526 5,313 Plus: Pre-Development -- -- -- -- -- Adjusted EBITDA $57,495 $90,326 $75,240 $132,107 $99,382 Plus: Exploration $11,426 $3,769 $15,643 $26,468 $17,899 Adjusted EBITDAX $68,921 $94,095 $90,883 $158,575 $117,281 42
  43. 43. H E C L A M I N I N G C O M P A N Y 43 Silver - Total Cash Cost GAAP Reconciliation Reconciliation of Cash Costs per Ounce to Generally Accepted Accounting Principles (GAAP) (dollars and ounces in thousands, except per ounce - unaudited) Q1/2013 2012 2011 2010 2009 2008 2007 Total cash costs(1) 13,346$ 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, severance 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 uniform standard for comparison purposes; 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. Production had been temporarily suspended at the Lucky Friday Unit as work was performed to rehabilitate and enhance the Silver Shaft, the primary access from surface to the underground workings at the Lucky Friday mine. The Silver Shaft work was completed in early 2013 and limited production resumed at the Lucky Friday starting in February 2013. Care and maintenance costs incurred at the Lucky Friday during the suspension of production are included in a separate line item under Other operating expenses on the Condensed Consolidated Statement of Operations and Comprehensive Income (Unaudited) in the 10-Q for the quarter ending March 31, 2013, and have been excluded from the calculation of total cash costs for the three month periods ended March 31, 2013 and 2012.
  44. 44. H E C L A M I N I N G C O M P A N Y Gold - Total Cash Cost GAAP Reconciliation 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. 44 Reconciliation of Cash Costs per Ounce to International Financial Reporting Standards (2010-2013) & Generally Accepted Accounting Principles (2006-2009) (dollars and ounces in thousands, except per ounce - unaudited) Q1/2013 2012 2011 2010 2009 2008 2007 2006 Cash Operating Costs (1) US$000 21,276$ 93,298$ 88,705$ 75,758$ 63,896$ 63,664$ 53,192$ 2,118$ Divided by gold ounces sold 26,200 133,990 165,250 139,950 159,275 159,404 160,600 6,882 Total cash cost per ounce sold US$/oz 812$ 696$ 537$ 541$ 401$ 399$ 331$ 308$ Reconciliation to IFRS/GAAP: Cash Operating Costs US$000 21,276$ 93,298$ 88,705$ 75,758$ 63,896$ 63,664$ 53,192$ 2,118$ Average US$/C$ exchange rate 1.008$ 1.000$ 0.989$ 1.030$ 1.142$ 1.070$ 1.080$ 1.150$ Cash Operating Costs C$000 21,453$ 93,259$ 87,735$ 78,031$ 72,936$ 68,120$ 57,447$ 2,436$ Plus: Silver by-product credits 181$ 990$ 1,063$ 632$ 543$ 485$ 392$ -$ Plus: Depreciation and amortization 8,905$ 37,539$ 38,927$ 34,060$ 36,514$ 35,582$ 29,754$ 1,239$ 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$ 87,593$ 3,675$
  45. 45. H E C L A M I N I N G C O M P A N Y 45 Total Cash Cost GAAP Reconciliation 1. Cash costs per ounce of silver represent non- U.S. Generally Accepted Accounting Principles (GAAP) measurements 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 uniform standard for comparison purposes; 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. Reconciliation of Cash Costs per Ounce to Generally Accepted Accounting Principles (GAAP) (dollars and ounces in thousands, except per ounce - unaudited) Q1/13 Q1/12 Total cash costs 1 13,346$ 2,976$ Divided by silver ounces produced 1,901 1,329 Total cash cost per ounce produced 7.02$ 2.24$ Reconciliation to GAAP Total cash costs 13,346$ 2,976$ Depreciation, depletion and amortization 14,007 9,661 Treatment and freight costs (18,597) (17,695) By-product credits 46,577 46,353 Change in product inventory (4,604) 1,805 Reclamation and other costs 103 (149) Cost of sales and other direct production costs and depreciation, depletion and amortization 50,832$ 42,951$
  46. 46. H E C L A M I N I N G C O M P A N Y Greens Creek Cash Cost Reconciliation 46 GREENS CREEK UNIT Q1 2013 Total cash costs $ 8,942 Divided by ounces produced 1,781 Total cash cost per ounce produced $ 5.02 Reconciliation to GAAP: Total cash costs $ 8,942 Depreciation, depletion and amortization 12,679 Treatment costs (17,813) By-product credits 44,966 Change in product inventory (4,162) Reclamation and other costs 99 Cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) $ 44,711 1. Cash costs per ounce of silver represent non- U.S. Generally Accepted Accounting Principles (GAAP) measurements 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 uniform standard for comparison purposes; 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.
  47. 47. H E C L A M I N I N G C O M P A N Y Adjusted Earnings Reconciliation 47 Reconciliation of Net Income Applicable to Common Shareholders (GAAP) to (dollars and ounces in thousands, except per ounce - unaudited) Three Months Ended March 31 2013 2012 Net income applicable to common shareholders (GAAP) 10,956$ 12,434$ Adjusting items: (Gains)/losses on derivatives contracts (21,539) 5,231 Environmental accruals 0 769 Provisional price (gains)/losses 2,700 (5,137) Lucky Friday suspension-related costs 1,498 6,166 Aurizon acquisition costs 5,292 0 Income tax effect of above adjustments 4,458 (2,530) Adjusted income applicable to common shareholders 3,365$ 16,933$ Weighted average shares - basic 285,171 285,292 Weighted average shares - diluted 297,164 296,928 Basic adjusted income per common share 0.01$ 0.06$ Diluted adjusted income per common share 0.01$ 0.06$ 1. Earnings After Adjustments and Earnings After Adjustments per share are non-GAAP measures which are indicators of our performance. They exclude certain impacts which are of a nature which we believe are not reflective of our underlying performance. Management believes that earnings after adjustments per common share provides investors with the ability to better evaluate our underlying operating performance.
  48. 48. H E C L A M I N I N G C O M P A N Y Hecla Adjusted EBITDA Reconciliation This presentation refers to a non-GAAP measure of Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), which is a measure of our operating performance. Adjusted EBITDA is calculated as net income before the following items: interest expense, income tax provision, depreciation, depletion, and amortization expense, exploration expense, predevelopment expense, Aurizon acquisition costs, Lucky Friday suspension-related costs, interest and other income (expense), gains and losses on derivative contracts, and provisional price gains and losses. Management believes that, when presented in conjunction with comparable GAAP measures, Adjusted EBITDA is useful to investors in evaluating our operating performance. The table above reconciles net income to Adjusted EBITDA. Note: All monetary amounts presented in thousands of dollars. 48 Three Months Ended March 31, 2013 2012 Net Income 11,094$ 12,572$ Plus: Interest expense 704 467 Plus: Income taxes 7,415 7,315 Plus: Depreciation, depletion, and amortization 14,711 11,269 Plus: Exploration expense 6,493 5,611 Plus: Pre-development expense 4,791 3,366 Plus: Aurizon acquisition Costs 5,292 0 Plus: Lucky Friday suspension-related costs 1,498 6,166 Plus/(Less): Interest and other (income) expense 113 (149) Plus/(Less): (Gains)/losses on derivative contracts (21,539) 5,231 Plus/(Less): Provisional price (gains)/losses 2,700 (5,137) Adjusted EBITDA 33,272$ 46,711$ Reconciliation of Adjusted EBITDA to Generally Accepted Accounting Principles (GAAP)
  49. 49. H E C L A M I N I N G C O M P A N Y Aurizon Adjusted EBITDA Reconciliation This presentation refers to a non-GAAP measure of Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), which is a measure of our operating performance. Adjusted EBITDA is calculated as net income before the following items: interest expense, income tax provision, depreciation, depletion, and amortization expense, exploration expense, predevelopment expense, Aurizon acquisition costs, Lucky Friday suspension-related costs, interest and other income (expense), gains and losses on derivative contracts, and provisional price gains and losses. Management believes that, when presented in conjunction with comparable GAAP measures, Adjusted EBITDA is useful to investors in evaluating our operating performance. The table above reconciles net income to Adjusted EBITDA. Note: All monetary amounts presented in thousands of dollars. 49 Three Months Ended March 31, 2013 Net Income ($2,936) Plus: Interest expense $203 Plus: Income taxes $1,711 Plus: Depreciation, depletion and amortization $8,947 Plus: Exploration expense $1,851 Plus: Pre-development expense $0 Plus/(Less): Interest and other (income) expense ($514) Plus: Debt related fees $0 Adjusted: EBITDA $9,262 Reconciliation of Adjusted EBITDA to Generally Accepted Accounting Principles (GAAP)
  50. 50. H E C L A M I N I N G C O M P A N Y 50 Silver Space Source: MEG, BMO Capital Markets (06/17/13)
  51. 51. H E C L A M I N I N G C O M P A N Y Silver Space 51 Source: Company Filings, BMO Capital Markets (06/17/13)
  52. 52. H E C L A M I N I N G C O M P A N Y Silver Space 52 Source: Company Filings, BMO Capital Markets (06/17/13)

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