Hecla Mining Company Q2 FY2025 earnings call

• Strategic Pillars: Focus on operational excellence (implementing semi-automation/analytics), portfolio optimization (Casa Berardi strategic review progressing), disciplined capital allocation (prioritizing high-return projects), and maintaining silver market leadership (high-quality operations in low-risk jurisdictions). - Keno Hill: Revised production target to 440 tonnes per day (down from 550-600), focusing on optimization via ore quality control, cost control, and infrastructure investments (cement/tailings plant construction, etc.). - Second Quarter Results: Record sales ($304M), net income ($58M), adjusted EBITDA ($133M), net leverage ratio 0.7x, cash from operations over $160M, free cash flow $104M, produced 4.5M oz silver and 46k oz gold. - Greens Creek: Second quarter silver production 2.4M oz (+21% QoQ), strong free cash flow, revised gold production and silver cost guidance. - Casa Berardi: Significant cost improvements, gold production increased 37%, expected stripping ratio decline in Q4 with surface mining contractor mobilization. - Nevada Assets: Midas and Hollister potential, active drilling in Midas yielding new gold-bearing structures, draft engineering assessment confirms mill in good condition.

Silver Operations: Record sales of $304 million, produced 4.5 million ounces of silver. Silver operations had cash costs of negative $5.46 per ounce and all-in sustaining costs of $5.19 per ounce (after byproduct credits). Gold Operations: Produced nearly 46,000 ounces of gold. Casa Berardi unit costs dropped by over $600 per ounce, Lucky Friday set a new quarterly milling record. Greens Creek had strong performance with revised gold production and silver cost guidance. Base Metals: Made up 17% of consolidated revenue.

• Keno Hill: Target to reach 440 tonnes per day by 2028, confident in achieving through systematic capital deployment. - Greens Creek: Positive revisions to gold production and silver cost guidance. - Casa Berardi: Update on strategic review expected in coming weeks. - Debt: Utilized ATM facility for partial redemption of senior notes, expect interest savings to be reinvested in operations.

• Geopolitical Uncertainty: Impact on operations in less stable jurisdictions. - Permitting Delays: Uncertainties in permitting processes for projects like Casa Berardi. - Metal Price Fluctuations: Affect on financial performance and project economics.

Q: About Greens Creek grades and potential reversion A: Carlos Aguiar says expecting similar grades, good execution Q: Keno Hill commentary change A: Rob Krcmarov and Carlos Aguiar talk about expanded operations and balancing components Q: Debt and capital allocation A: Rob Krcmarov says funds better served by reinvesting in operations Q: Casa Berardi stripping ratio and permitting A: Matt Blattman and Rob Krcmarov discuss stripping ratio decline and permitting uncertainty Q: Keno Hill free cash flow and capital spending A: Rob Krcmarov and Carlos Aguiar talk about ramp-up and infrastructure investments Q: Casa Berardi production upside A: Kurt Allen says strategic review ongoing Q: Keno Hill throughput trajectory A: Rob Krcmarov says gradual ramp-up Q: Montana assets advancement A: Rob Krcmarov and Dave Schenker talk about permit approval and potential partnership