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purchase orders T&Cs

Please read the purchase order terms and conditions for Hecla and its subsidiaries and also for Rio Grande Silver.

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reconciliation of cash costs per silver ounce

 

Reconciliation of Cash Cost, Before By-Product Credits, per Silver Ounce and Cash Cost, After By-Product Credits, per

Silver Ounce to Generally Accepted Accounting Principles (GAAP) (1)

Greens Creek and Lucky Friday
(dollars and ounces in thousands, except per ounce – unaudited)

    2009   2010   2011   2012   2013   Q1/2014  
Cash costs, before by-product credits
  $    227,566   $   251,837    $    265,306   $     208,178   $     254,460   $     64,519  
By-product credits
  (206,608)   (267,272)   (254,372)   (190,916)   (193,496)   (54,496)  
Cash cost, after by-product credits
  20,958   (15,435)   10,934   17,262   60,964   9,536  
Divided by silver ounces produced
  10,989   10,566   9,483   6,394   8,907   2,487  
Cast cost before by-product credits, per silver ounce
  $        20.71   $         23.83   $         27.98   $         32.56   $   28.56   $   25.94  
By-product credits per silver ounce
  $     (18.80)   $      (25,30)   $      (26.82)   $      (29.86)   $     (21.72)   $     (22.11)  
Cash cost, after by-product credits, per silver ounce
  $          1.91   $        (1.46)   $           1.15   $           2.70   $          6.84   $          3.83  
Reconciliation to GAAP:
                         
Cash cost, after by-product credits
  $     20,958   $    (15,435)   $      10,934   $      17,262   $      60,964   $      9,536  
Depreciation, depletion and amortization
  62,837       60,011   47,066   43,522   63,098   17,222  
Treatment costs
      (80,830)       (92,144)       (99,019)      (73,355)    (76,824)    (19,906)  
By-product credits
     206,608      267,272     254,372     190,916    193,496    54,983  
Change in product inventory
            310          3,660         (4,805)        (1,381)        (246)        4,795  
Suspension-related costs(2)   - -   - -   4,135   - -   - -   - -  
Reclamation and other costs
  1,596     630      (44)   663   2,100   525  
Costs of sales and other direct production costs and depreciation, depletion and amortization (GAAP)
 
$    211,479
 
$     223,994
 
$   212,639
 
$     177,627
 
$    242,588
 
$    67,155
 

(1) Includes all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs, royalties and mining production taxes, net of by-product revenues earned from all metals other than the primary metal produced at each unit.

(2) Production was temporarily suspended at the Lucky Friday Unit during 2012 as work was performed to rehabilitate the Silver Shaft, the primary access from surface to the underground workings at the Lucky Friday mine. Therefore, cast cost, before by-product credits and cast cost, after by-product credits, per silver ounce are not presented for the Lucky Friday Unit for the twelve-month period ended December 31, 2012.

reconciliation of cash costs per gold ounce

 

Reconciliation of Cash Cost, Before By-Product Credits, per Gold Ounce and Cash Cost, After By-Product Credits, per Gold Ounce to International Financial Reporting Standards (2011-2012) & Generally Accepted Accounting Principles (2009-2010, 2013 and Q1/2014)
(dollars and ounces in thousands, except per ounce – unaudited)
        2009   2010   2011   2012  
2013 (2)
 
Q1/2014
 
Cash cost, before by-product credits(1)
  US$000     $      64,371   $      76,958   $       89,060   $      96,236   $    59,717   $    27,808  
By-product credits       (475)   (614)   (1,075)   (990)   (262)   (104)  
Cash cost, after by-product credits
      63,896   76,344   87,985   95,246   59,455   27,104  
Divided by gold ounces produced       159,261   141,116   163,845   136,848   62.53   31.26  
Cash cost, before by-product credits, per gold ounces       404   545   544   703   954.98   889.61  
By-product credits per gold ounce
      (3)   (4)   (7)   (7)   (4.19)   (3.33)  
Cash cost, after by-product credits, per gold ounce
      $           401   $           541   $           537    $         696    $     951   $     886  
Reconciliation to IFRS/GAAP:
                             
Cash cost, after by-product credits
      $     63,896   $    76,344,   $      87,985   $      95,246   $     59,455   $     27,704  
Depreciation, depletion and amortization       31,974   33,068   39,360   37,539   18,030   8,581  
Treatment costs       - -   - -   - -   - -   (268)   (98)  
By-product credits
       475      614     1,075     990   262   104  
Change in product inventory
      - -   (586)   720   (1,948)   (3,766)   (107)  
Reclamation and other costs       - -   - -   - -   - -   142   205  
Costs of sales and other direct production costs and depreciation, depletion and amortization (IFRS/GAAP)
 

US$000
 

$   96,345
 

$   109,440
 

$   129,140
 

$   131,827
 

$   73,855
 

$   36,389
 
Average US$/C$ exchange rate
      1.142   1.030   0.989   1.000          
Costs of sales and other direct production costs and depreciation, depletion and amortization (IFRS/GAAP)
 

C$000
 

$   109,993
 

$   112,723
 

$   127,725
 

$   131,788
 

   
 

   
 

 

(1) Includes all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs, royalties and mining production taxes, net of by-product revenues earned from all metals other than the primary metal produced at each unit.

(2) June 1, 2013, Hecla completed the acquisition of Aurizon Mines Ltd., which gave the company 100% ownership of the Casa Berardi mine in Quebec, Canada. The information presented for 2013 reflects our ownership of Casa Berardi commencing as of that date. The presentation of cash cost, after by-product credits, per gold ounce for all of the periods presented has been conformed to reflect Hecla's presentation. The primary metal produced at Casa Berardi is gold, with a by-product credit for the value of silver production.


historical reserves (2003 - 2012)

historical reserveshistorical reserves































cautionary note regarding forward looking statements

Statements made or information provided in this news release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of Canadian securities laws.  Words such as “may”, “will”, “should”, “expects”, “intends”, “projects”, “believes”, “estimates”, “targets”, “anticipates” and similar expressions are used to identify these forward-looking statements. Such forward-looking statements or forward-looking information include statements or information regarding estimates of the Company’s mineral resources and mineral reserves, projected exploration and pre-development expenditures to be incurred in 2014; exploration drilling at Greens Creek, Lucky Friday and San Sebastian; metallurgical testwork, scoping studies and test pit excavation at San Sebastian; and exploration and pre-development activities at San Juan Silver, at the Company’s properties in Silver Valley and at Republic. The material factors or assumptions used to develop such forward-looking statements or forward-looking information include that the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated, to which the Company’s operations are subject, as well as metals prices and exchange rate assumptions noted at the end of Table A relevant to mineral reserve and resourced estimates.

 

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; including that mineral resources are not mineral reserves, they do not have demonstrated economic viability and there is no certainty that they can be upgraded to mineral reserves through continued exploration, and with respect to Hecla’s non-operating and exploration properties, that few properties that are explored are ultimately developed into producing mines. 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.

 

cautionary note to investors
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 on this website, such as “measured,” “indicated,” and “inferred resources” that the SEC guidelines strictly prohibit us from including in our filing with the SEC.  U.S. investors are urged to consider closely the disclosure in our Form 10-K, included on this website.

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 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. The term “resource” does not equate to the term “reserve”. Under Guide 7, the material described herein as “indicated resources” and “measured resources” would be characterized as “mineralized material” and is permitted to be disclosed in tonnage and grade only, not ounces.  The category of “inferred resources” is not recognized by Guide 7.   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.

.

qualified person (QP) pursuant to Canadian National Instrument 43-101
Dean McDonald, PhD. P.Geo., Senior Vice President - Exploration of Hecla Mining Company, who serves as a Qualified Person under National Instrument 43-101 (“NI 43-101”), supervised the preparation of the scientific and technical information concerning Hecla’s mineral projects in this news release. 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 prepared for Hecla and Aurizon Mines Ltd. (“Aurizon”) titled “Technical Report for the Greens Creek Mine” effective date March 28, 2013, for the Lucky Friday Mine are contained in a technical report prepared for Hecla and Aurizon titled “Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA” effective date March 28, 2013 and for the Casa Berardi Mine are contained in a technical report prepared for Aurizon titled "Technical Report on the mineral resource and mineral reserve estimate for Casa Berardi Mine, Northwestern Quebec, Canada" effective date March 28, 2013 (the “Casa Berardi Technical Report”).  Also included in these three 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 technical reports are available under Hecla's and Aurizon's profiles on SEDAR at www.sedar.com. The Casa Berardi Technical Report was reviewed by Dr. McDonald on behalf of Hecla. To the best of Hecla’s knowledge, information and belief, there is no new material scientific or technical information that would make the disclosure of the mineral resources and mineral reserves for Casa Berardi in this news release inaccurate or misleading.

The current Casa Berardi drill program was performed on core sawed in half and included the insertion of blanks and standards of variable grade in every 24 core samples. Standards were generally provided by Analytical Solutions Ltd. and prepared in 30 gram bags. Samples were sent to the Swastika Laboratories in Swastika, Ontario, a registered accredited laboratory, where they were dried, crushed, and split for gold analyses. Analysis for gold was completed by fire assay with AA finish. Gold over-limits were analyzed by fire assay with gravimetric finish. Data received from the lab were subject to validation using in-built program triggers to identify outside limit blank or standard assays that require re-analysis. Over 5% of the original pulps and rejects are sent for re-assay to ALS Chemex in Val d’Or, Quebec, for quality control.

 

Dr. McDonald reviewed and verified information regarding drill sampling, data verification of all digitally collected data, drill surveys and specific gravity determinations relating to the Casa Berardi mine. The review encompassed quality assurance programs and quality control measures including analytical or testing practice, chain-of-custody procedures, sample storage procedures and included independent sample collection and analysis. This review found the information and procedures meet industry standards and are adequate for Mineral Resource and Mineral Reserve estimation and mine planning purposes.

 

stock quotes
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