2012 also saw an investment in expertise — in people who have the specific skills and know-how  necessary to improve our operations. People like Ed Sutich, the Lucky Friday general manager, who brings a  wealth of underground experience from both the U.S. and abroad; Mark Board, with over 30 years of  worldwide experience, who is overseeing our U.S. geotechnical engineering — a key expertise for underground  mines; and Mike Wegleitner, who has joined us as the director of health and safety, will enable Hecla to  improve safety for our employees and to become a recognized safety leader in the mining industry. The theme for this year’s annual report isn’t just a slogan. It’s something we believe. Why? Because silver  is a growth industry — and it’s in the midst of a long-term bull market with a very bright future.  Throughout history, silver has been a monetary element, and we think that role will only increase,  resulting as it has this past decade in higher prices. But the real growth is in the role silver plays in people’s  everyday lives. In everything from smartphones to tablet computers, from solar panels to healthcare, silver is  elemental. Think about what’s happening in China and in India. Between the two countries there are 2.5 billion  people — more than a third of the world’s population. Seventy percent of India’s and 50 percent of China’s  populations are rapidly urbanizing. And as they move from rural areas to cities, their standard of living  increases dramatically. They begin to expect the amenities that, in the U.S. and elsewhere in the developed  world, are taken for granted. Growth in these two countries is explosive — and the rate of urbanization is massive. Demand is following  that growth. In India alone, industrial demand for silver has grown at an annual rate of 8 percent over the past  20 years, the bulk of it coming from domestic needs as opposed to China’s export-driven economy. At that rate,  it’s expected that India’s industrial silver demand will more than double — from 61 million ounces in 2011 to  150 million — by 2020. MeetIng the neeDS oF a ChangIng worlD Silver consumption per capita is  closely tied to increases in GDP  (Gross Domestic Product) per  capita. In developed economies  like the United States, Japan, and  Germany, silver consumption per  capita has seen a steady  increase from 1990 to 2010  (where in the U.S., it doubled  from 0.2 ounces to 0.4 – an  annualized growth rate of 3.7%).  In contrast, South Korea, which  has made the transition from a  developing economy in 1990 to  fully developed in 2010, has seen  its silver consumption per capita  increase tenfold. As urbanization  continues to drive consumer  demand for durable goods,  electronics, automobiles, and  construction – all of which  require silver – the consumption  of silver in emerging economic  giants China and India will  inevitably rise. 2 [HL] Silver Consumption per Capita 1990 vs. 2010 GDP Per Capita (2000 US$) .10 .20 .30 .40 .50 .60 .70 60,000 40,000 20,000 1990 GDP Per Capita .80 Silver Ounce Per Capita United States South Korea India China Japan Germany .10 .20 .30 .40 .50 .60 .70 60,000 40,000 20,000 2010 GDP Per Capita .80 Silver Ounce Per Capita China India South Korea United States Germany Japan