Michael Siperco

Michael Siperco with RBC Capital Markets inquired about the necessary steps and progress required to bring the Rochester operation to full capacity and steady-state throughput by 2026, particularly concerning the crusher's performance. He also asked about Coeur Mining's M&A strategy, potential new opportunities, and the longer-term role of Silvertip.

Answer

Mick Routledge (SVP and COO, Coeur Mining) detailed successful modifications to Rochester's primary, secondary, and tertiary crushing systems, emphasizing improved uptime and size control. Mitchell Krebs (President, CEO and Member of the Board of Directors, Coeur Mining) added that addressing a conveyor belt issue in November is key for sustained momentum, expecting a material step-up in production from 2025 to 2026, targeting an annual crushing rate of over 30 million tons. Regarding M&A, Mitchell Krebs stated the company is internally focused but continuously evaluates opportunities that align with strict criteria (gold/silver, quality improvement, existing jurisdictions), while aiming to remain free cash flow positive. He confirmed Silvertip is a significant longer-term growth prospect, with an initial assessment underway.

Michael Siperco of RBC Capital Markets requested an update on the strategic plan for the Silvertip project, including key milestones and timelines. He also sought to identify the most critical operational metric for monitoring the ramp-up at the Rochester mine.

Answer

Executive Mitchell J. Krebs outlined a disciplined, five-year path for a go/no-go decision on Silvertip, with an internal assessment starting in Q3 2025, emphasizing a focus on de-risking the project. Both Krebs and Executive Michael Routledge identified crusher availability and total tons crushed as the key metrics for tracking Rochester's progress.

Michael Siperco requested more color on the growth outlook for Hecla's Nevada assets, including a potential timeline for a study or production scenario. He also asked how the company prioritizes its capital allocation between deleveraging, reinvestment in assets like Keno Hill, and exploration funding.

Answer

Robert Krcmarov, President & CEO, and Kurt Allen, VP of Exploration, detailed the hub-and-spoke strategy in Nevada, noting a potential 4-5 year timeline to a production scenario is possible but dependent on exploration success and permitting. Russell Lawlar, SVP & CFO, explained that capital allocation is a balancing act, using cash flow from cornerstone assets to fund growth at Keno Hill, deleverage the balance sheet, and invest in exploration, all while adhering to strict return criteria.

Michael Siperco asked for quantification of the expected higher grades at Magino for the remainder of the year and details on the grades used in the recent blending test of Magino and Island Gold ore. He also inquired about the company's strategy for managing the risks associated with advancing three major growth projects—Phase 3+, PDA, and Lynn Lake—concurrently.

Answer

Luc Guimond, COO, stated that Magino's grade profile should align with original annual guidance for the rest of the year. He detailed that the successful ore blending test combined Island Gold ore running 7-10 g/t with Magino ore at ~0.9 g/t, achieving the expected 96% recovery. He also expressed confidence in managing the three projects, citing established teams for the advanced Phase 3+ and Mexico PDA projects, and active team-building for the early-stage Lynn Lake project.

Michael Siperco of RBC Capital Markets inquired about New Gold's exploration strategy at the New Afton mine, particularly concerning the K-Zone, following the consolidation to 100% ownership and in light of higher gold prices. He also asked for the expected timeline for a resource study and the company's current stance on M&A.

Answer

President and CEO Patrick Godin explained that the objective to extend New Afton's mine life beyond 2040 is unchanged and the company is aggressively pursuing exploration to define another 'C-zone' equivalent. He noted plans to increase drills to five to achieve indicated resources by year-end, with an exploration update expected in Q3 2025 and a potential study in 2026. Regarding M&A, Godin emphasized that organic growth is the primary focus, and any potential acquisition must be to 'be bigger to be better' by increasing value per share, not just for scale.