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2015 vs 2016
21.7 million oz
$97.2 million
$132.1 million
Greens Creek Mine
22.1 million oz
Silver Equivalent Production*
Cash Provided by Operating Activities
Mine Life
10 years
investing in high-return projects to further extend the mine life and lower operating costs. This strategy has enabled us to thrive throughout the metals price cycle.
Mining in the twenty-first century involves operating complex systems in a changing regulatory environment. It’s more expensive these days to start projects; it’s more expensive to shut them down, a solid rationale for having longer-lived assets. When I got into this business, it was generally thought that a mine life of seven to eight years was enough. Now we’re looking at decades. With our latest acquisitions – Rock Creek and Montanore – we see the potential for 30 years or more of mine life. And our investment in the #4 Shaft at Lucky Friday potentially extends the life of that mine 20-30 more years.
Building around the core pillar of long-lived, low-cost mines are the four elements of our strategy. The first is the metals we mine: silver, gold, lead, and zinc. While our focus is primarily on silver and gold, we produce a substantial amount of base metal by-products. The advantage of this metal diversity is that it provides multiple revenue streams, which not only lowers our risk profile, but also provides greater stability and
*Calculated using average metal prices.
predictability of cash flows – so we can better run our business. Second is our committed and talented workforce. Many employees
have been with the company for decades, and they’re some of the best in the industry at what they do. At all levels, they’re working together to make our mines more efficient, more productive, and – most important – safer for everyone.
Third is financial discipline. During my tenure as President and CEO, we’ve issued equity in a major way only three times: 2003, 2008/2009, and 2013 – the latter two in the context of acquiring new assets. Over the past several years we have seen our production and reserves per share increase more than the majority of our peers. Combined with our low-cost growth, this disciplined approach has created significant shareholder value.
Last, we operate in low-risk, mining-friendly jurisdictions across North America, which provides us with greater operational stability. We strive to be the partner of choice in the communities we conduct business in, and believe that by engaging and being proactive, we will sustain our social license to operate.
HL / 3
Alaska, USA
Consistent, Low-Cost Production. Greens Creek produced 9.3 million ounces of silver in 2016, the highest silver production since Hecla acquired 100%
of the project in 2008. This increase was driven by higher grade and an increase in recovery. A focus on innovation has led to many improvements, including increasing average silver recovery by 8% – adding an additional $100 million in value. The mine generated over $85 million of cash provided by operating activities less capital expenditures in 2016, and over $1.2 billion since the mine began operations in 1989.
226.6 223.6 million oz million oz
Reserves (Silver Equivalent)*