Financial Performance - Net loss for the three months ended September 30, 2024, was $14,228,000, compared to a net loss of $15,712,000 for the same period in 2023, representing a 9% improvement[15]. - Net loss for the nine months ended September 30, 2024, was $48,158, compared to a net loss of $43,510 for the same period in 2023, indicating an increase in losses[21]. - The company reported a net loss of $14.2 million for the three months ended September 30, 2024, compared to a net loss of $15.7 million for the same period in 2023, resulting in a basic and diluted loss per share of $0.59[80]. - The company reported a net loss of $13.909 million for the quarter ended March 31, 2023, and a net loss of $15.712 million for the quarter ended June 30, 2023[19]. Assets and Liabilities - Total assets decreased from $201,693,000 on December 31, 2023, to $149,022,000 on September 30, 2024, a decline of approximately 26%[14]. - The company reported a total stockholders' deficit of $23,134,000 as of September 30, 2024, compared to a total stockholders' equity of $12,656,000 on December 31, 2023[14]. - The company’s total liabilities decreased from $189,037,000 on December 31, 2023, to $172,156,000 on September 30, 2024, a decline of approximately 9%[14]. - The estimated fair value of the company's debt instruments was $111.3 million as of September 30, 2024, down from $149.2 million as of December 31, 2023[50]. - Total debt, net, decreased from $142.6 million as of December 31, 2023, to $122.1 million as of September 30, 2024[56]. Cash Flow and Liquidity - Cash and cash equivalents decreased from $106,210,000 on December 31, 2023, to $55,834,000 on September 30, 2024, a reduction of approximately 48%[14]. - Cash flows used in operating activities for the nine months ended September 30, 2024, were $27,802,000, compared to $31,931,000 for the same period in 2023, reflecting a 13% improvement[17]. - Cash interest paid for the nine months ended September 30, 2024, was $1,380, a decrease from $4,625 for the same period in 2023[84]. - As of September 30, 2024, the company had $27.2 million in restricted cash, an increase from $26.3 million as of December 31, 2023[42]. Revenue and Expenses - Operating expenses for the nine months ended September 30, 2024, totaled $41,512,000, up from $36,671,000 in the same period of 2023, indicating a 13% increase[15]. - Interest income for the nine months ended September 30, 2024, was $3,382,000, down from $6,159,000 in the same period of 2023, a decrease of 45%[15]. - The company’s total other income for the three months ended September 30, 2024, was $2.4 million, compared to $0.7 million for the same period in 2023[76]. - The company recognized $1.6 million as other income during the nine months ended September 30, 2024, due to the forfeiture of non-refundable deposits[60]. Stock and Equity - The company issued 517,688 shares of common stock during the period, raising $1,160,000 in additional paid-in capital[18]. - The company generated gross proceeds of $10.6 million from the sale of 3,081,665 shares of common stock during the nine months ended September 30, 2024, under its New ATM Program[24]. - The company sold 89,118 shares of common stock for gross proceeds of $0.2 million during the three months ended September 30, 2024, and 3,081,665 shares for $10.6 million during the nine months ended September 30, 2024[68]. - The company’s total outstanding warrants increased to 90,019,112 as of September 30, 2024, from 89,722,621 a year earlier[70]. Inventory and Assets Held for Sale - As of September 30, 2024, the company had $1.4 million in supplies inventories, down from $1.8 million as of December 31, 2023, and recorded a write-down of $0.4 million due to obsolescence[37]. - Assets held-for-sale decreased from $7.1 million as of December 31, 2023, to $4.4 million as of September 30, 2024[44]. Other Financial Metrics - The company recorded an unrealized loss on securities available-for-sale of $0.3 million and $0.8 million for the three and nine months ended September 30, 2024, respectively[38]. - The company incurred no net income tax expense for both the three and nine months ended September 30, 2024, maintaining an effective tax rate of nil[78]. - The company’s anticipated annual tax rate is influenced by the taxable income across various jurisdictions and the valuation allowance for net deferred tax assets[77]. Operational Focus - The company is focusing on exploration drilling and technical studies to optimize the processing of sulfide ores at the Hycroft Mine[23].

Financial Performance - Net loss for the six months ended June 30, 2024, was $33,930,000, compared to a net loss of $27,798,000 for the same period in 2023, indicating an increase in losses of about 22%[15] - The company reported a loss from operations of $14,281,000 for the three months ended June 30, 2024, compared to a loss of $11,567,000 for the same period in 2023, an increase in operational losses of approximately 23%[15] - Basic loss per share for the six months ended June 30, 2024, was $1.55, compared to $1.39 for the same period in 2023, indicating a deterioration in per-share performance[15] - The Company reported a net loss of $13,180,000 for the three months ended June 30, 2024, compared to a net loss of $13,889,000 for the same period in 2023, representing a decrease of 5.1%[70] - For the six months ended June 30, 2024, the net loss was $33,930,000, compared to $27,798,000 for the same period in 2023, indicating an increase of 22%[70] Assets and Liabilities - Total assets decreased from $201,693,000 as of December 31, 2023, to $155,459,000 as of June 30, 2024, representing a decline of approximately 23%[13] - Total liabilities decreased from $189,037,000 as of December 31, 2023, to $165,190,000 as of June 30, 2024, a decline of about 13%[13] - As of June 30, 2024, the total stockholders' equity was $37.6 million, down from $63.3 million on January 1, 2023, reflecting a net loss of $20.7 million for the three months ended March 31, 2024[18] - The total accumulated deficit increased to $759.1 million as of June 30, 2024, compared to $684.1 million as of March 31, 2023[18] - As of June 30, 2024, total debt, net was $119.286 million, down from $142.617 million as of December 31, 2023[48] Cash Flow and Liquidity - Cash and cash equivalents decreased from $106,210,000 as of December 31, 2023, to $58,548,000 as of June 30, 2024, a reduction of approximately 45%[13] - Cash flows used in operating activities for the six months ended June 30, 2024, were $20,331,000, compared to $22,434,000 for the same period in 2023, showing a slight improvement in cash usage[17] - As of June 30, 2024, the company had cash, cash equivalents, and restricted cash totaling $85,483,000, down from $151,746,000 at the end of the same period in 2023, a decrease of 43.5%[17] - Cash interest paid for the six months ended June 30, 2024, was $941,000, a decrease of approximately 69% from $3.023 million in the same period of 2023[79] Operating Expenses - Operating expenses for the three months ended June 30, 2024, totaled $13,418,000, compared to $12,632,000 for the same period in 2023, reflecting an increase of about 6%[15] - Operating expenses for the six months ended June 30, 2024, totaled $27,510,000, an increase of 19.5% from $23,100,000 in the same period of 2023[15] - The Company incurred operating costs of $14,281,000 for the three months ended June 30, 2024, compared to $11,567,000 for the same period in 2023, indicating a 23.4% increase[73] Stock and Equity - The company issued common stock, generating proceeds of $10,053,000 during the six months ended June 30, 2024[17] - The company sold 2,474,859 shares of common stock during the three months ended June 30, 2024, generating gross proceeds of $9.2 million[23] - The Company sold 2,992,547 shares of common stock for gross proceeds of $10.4 million during the six months ended June 30, 2024[62] - The stockholders approved an amendment to the HYMC 2020 Performance and Incentive Pay Plan, increasing the authorized shares by 900,000 to a total of 2,350,800 shares[65] Debt and Interest - Interest expense for the three months ended June 30, 2024, totaled $3.218 million, compared to $4.587 million for the same period in 2023[50] - The Company’s interest expense for the six months ended June 30, 2024, was $13,338,000, an increase of 47.8% from $9,023,000 in the same period of 2023[15] - The Company voluntarily prepaid $34.7 million of its first lien loan on January 5, 2024, reducing the outstanding balance to $15.0 million[45] Other Income and Gains - The Company recognized a gain of $3,641,000 on the sale of patents during the three months ended June 30, 2024[74] - Other income for the three months ended June 30, 2024, totaled $3,261,000, significantly higher than $144,000 in the same period of 2023[74] Impairment and Asset Retirement - The company completed its evaluation for impairment and determined no impairment was necessary during the three months ended June 30, 2024[30] - The Company recognized $4.0 million in additional expense related to changes in cost estimates for asset retirement obligations during the six months ended June 30, 2024[55] - The company's asset retirement obligation increased to $12.243 million as of June 30, 2024, from $7.973 million at the end of 2023[55] Securities and Investments - As of June 30, 2024, total securities available-for-sale amounted to $1.703 million, with $426,000 classified as current and $1.277 million as non-current[39] - The total securities available-for-sale increased to $1.703 million as of June 30, 2024, compared to $0 as of December 31, 2023[77] Future Commitments and Agreements - The Company has a commitment to pay a 4% net profit royalty on the Hycroft Mine, with total payments capped at $7.6 million, of which $3.3 million has been paid[85] - The Company received cash consideration of $30.0 million under the Sprott Royalty Agreement, granting a perpetual royalty of 1.5% on net smelter returns from the Hycroft Mine[86] - The estimated net present value of the Sprott Royalty Agreement was $146.7 million as of June 30, 2024, using a discount rate of 5.0%[87]

Financial Performance - The company reported a net loss of $20.7 million for the three months ended March 31, 2024, compared to a net loss of $13.9 million for the same period in 2023, indicating a year-over-year increase in losses of approximately 49.5%[15]. - The company reported a net loss of $20.749 million for the three months ended March 31, 2024, compared to a net loss of $13.909 million for the same period in 2023, representing an increase in loss of approximately 49%[78]. - The basic and diluted loss per common share for Q1 2024 was $1.00, compared to $0.69 for Q1 2023, representing a 45% increase in loss per share[73]. - The net loss for the three months ended March 31, 2024, was $20,749,000, compared to a net loss of $13,909,000 for the same period in 2023, indicating a 49.3% increase in losses year-over-year[18]. - The total loss before income taxes for the three months ended March 31, 2024, was $20,749,000, compared to $13,909,000 for the same period in 2023, reflecting a 49.3% increase[18]. Assets and Liabilities - As of March 31, 2024, total assets decreased to $152.6 million from $201.7 million as of December 31, 2023, representing a decline of approximately 24.3%[13]. - Total liabilities decreased to $158.8 million as of March 31, 2024, from $189.0 million as of December 31, 2023, a decrease of approximately 15.9%[13]. - The accumulated deficit increased to $745.9 million as of March 31, 2024, compared to $725.2 million at the end of 2023, indicating a rise of about 2.1%[19]. - The fair value of the company's debt instruments was estimated at $101.7 million as of March 31, 2024, down from $149.2 million as of December 31, 2023[83]. - The total debt, net was $116.540 million as of March 31, 2024, a decrease from $142.617 million as of December 31, 2023, reflecting a reduction of about 18.3%[49]. Cash and Cash Equivalents - Cash and cash equivalents decreased to $57.6 million as of March 31, 2024, down from $106.2 million at the end of 2023, a reduction of about 45.5%[13]. - Cash interest paid decreased to $502,000 in Q1 2024 from $1.473 million in Q1 2023, reflecting a reduction of approximately 66%[84]. Operating Expenses - Operating expenses for the three months ended March 31, 2024, totaled $12.2 million, up from $10.3 million in the same period of 2023, reflecting an increase of approximately 18.4%[15]. - Operating costs for the Hycroft Mine segment were $10.326 million in Q1 2024, up from $8.194 million in Q1 2023, indicating a year-over-year increase of about 26%[78]. - The Company incurred a loss from operations of $13.239 million in Q1 2024, compared to a loss of $11.533 million in Q1 2023, marking an increase of approximately 15%[78]. Share Issuance and Warrants - The company issued 517,688 shares of common stock during the three months ended March 31, 2024, raising gross proceeds of $1.2 million[24]. - The company raised $138.6 million from the sale of 89,553,584 shares under its ATM program, with approximately $361.4 million remaining available for future issuance[61]. - The company had 89.8 million total warrants outstanding as of March 31, 2024, with a total fair value of $68.1 million[67]. - The company had 865,422 outstanding 5-Year Private Warrants with an exercise price of $11.50, expiring on May 29, 2025[60]. Other Income and Expenses - The Company recorded interest expense of $10.119 million for the three months ended March 31, 2024, significantly higher than the $4.436 million recorded for the same period in 2023, marking an increase of approximately 128.3%[52]. - The Company recorded other income of $1.309 million in Q1 2024, primarily from a non-refundable deposit, compared to no other income reported in Q1 2023[80]. - The Company recognized $1.4 million as other income during the first quarter of 2024 due to the termination of a portion of an Equipment Purchase Agreement[42]. Compliance and Financial Covenants - As of March 31, 2024, the Company was in compliance with all financial covenants under its debt agreements[48]. Exploration and Technical Studies - The company is focusing on exploration drilling and technical studies to optimize processing methods for sulfide ores at the Hycroft Mine[22].

Mineral Resources - As of December 31, 2023, the Hycroft Mine had measured and indicated mineral resources of 10.6 million ounces of gold and 360.7 million ounces of silver, with inferred mineral resources of 3.4 million ounces of gold and 96.1 million ounces of silver[18]. - The 2023 Hycroft Technical Report Summary provides an initial assessment of the mineral resource estimate utilizing milling and pressure oxidation processes for sulfide and transition mineralization[17]. Revenue and Production - The company generated no revenues during the year ended December 31, 2023, due to the cessation of active mining operations[20]. - Gold production from mines increased by 0.9% in 2023 compared to 2022, totaling approximately 3,644 metric tons, representing about 74.4% of the global gold supply[24]. - Silver production from mines increased approximately 2% in 2023 compared to 2022, totaling approximately 842 million troy ounces, representing about 82% of the global silver supply[25]. - Gold demand in 2023 was approximately 4,448 metric tons, totaling about $277.5 billion in value, with jewelry accounting for 49% of the demand[24]. - Silver demand in 2023 was approximately 1,167 million troy ounces, totaling about $24.9 billion in value, with investments accounting for 26% of the demand[25]. Prices - The average price of gold in 2023 was $1,944 per ounce, while the average price of silver was $23.33 per ounce[27]. - The average price of gold in 2023 was $1,944 per ounce, with a high of $2,150 and a low of $1,907[27]. - The average price of silver in 2023 was $23.33 per ounce, with a high of $24.43 and a low of $22.00[27]. Safety and Compliance - The company achieved one million workhours without a lost time incident in Q2 2023, maintaining a total recordable injury frequency rate (TRIFR) of Nil (0.00) as of December 31, 2023[34]. - The total recordable injury frequency rate (TRIFR) for the trailing 12 months was 0.00, significantly below industry averages[34]. - The company is committed to adapting safety initiatives to ensure the well-being of its workforce, contractors, and visitors[34]. - The company believes it is in compliance with applicable mining, health, safety, and environmental statutes and regulations[35]. - The company is in compliance with applicable mining, health, safety, and environmental regulations in Nevada and at the federal level[35]. - The company has mandatory mine safety and health programs to ensure a safe workplace for employees and contractors[44]. Environmental Management - The company has accelerated certain reclamation activities in response to a notice of non-compliance from the Nevada Division of Environmental Protection, with no known material environmental incidents reported during 2023[39]. - The company began reclamation activities on its Crofoot leach pad in 2023 and expects to continue these activities into 2024[40]. - The company expects to treat and manage solutions in certain ponds starting in 2024 and continuing through 2026[40]. - The company has no material capital expenditures for environmental control facilities expected in 2024[39]. - The company is subject to various environmental regulations that could result in significant expenditures or potential liabilities[42]. - The company’s reclamation obligations are secured by surety bonds that meet the financial assurance requirements of the State of Nevada and the Bureau of Land Management[40]. - The company’s surface management surety bonds totaled $58.7 million as of December 31, 2023, with $58.3 million securing financial assurance requirements for the Hycroft Mine[40]. Operational Challenges - The company has not yet established its long-term production and cost structure due to incomplete engineering studies and sulfide ore processing studies[28]. - The company relies on numerous governmental permits that are difficult to obtain, which may impact operations[42]. - The company may face uncertainties regarding title matters in the mining industry, which could jeopardize its business operations[49]. - The company’s operations are subject to various federal and state laws and regulations that could require additional capital expenditures and increase operating costs[35]. Employment - The company has 78 employees as of December 31, 2023, with 69 employed at the Hycroft Mine[32].

Financial Performance - Revenues for the three months ended September 30, 2023, were $0, compared to $8,758,000 for the same period in 2022, indicating a 100% decrease[16] - Net loss for the nine months ended September 30, 2023, was $43,510,000, a slight improvement from a net loss of $46,891,000 for the same period in 2022[19] - The company reported a net loss of $15,712,000 for the quarter ended September 30, 2023[22] - The net loss for the three months ended September 30, 2023, was $15,712,000, compared to a net loss of $15,849,000 for the same period in 2022, a decrease of 0.9%[86] - The basic loss per common share for the three months ended September 30, 2023, was $(0.08), unchanged from $(0.08) in the same period of 2022[86] - Net loss for the nine months ended September 30, 2023, was $43.51 million, a decrease from a net loss of $46.89 million in the same period of 2022, representing a 5.1% improvement[19] Assets and Liabilities - Total assets decreased from $248,954,000 on December 31, 2022, to $211,813,000 as of September 30, 2023, representing a decline of approximately 15%[14] - Total liabilities increased from $185,648,000 on December 31, 2022, to $189,234,000 as of September 30, 2023, marking a rise of approximately 2%[14] - The total stockholders' equity decreased from $63,306,000 on December 31, 2022, to $22,579,000 as of September 30, 2023, a decline of approximately 64%[14] - The total debt, net, increased to $142.4 million as of September 30, 2023, from $132.7 million as of December 31, 2022[60] - The fair value of the Company's debt instruments as of September 30, 2023, was $118.6 million, compared to $130.7 million as of December 31, 2022[93] Cash Flow and Expenses - Cash and cash equivalents decreased from $141,984,000 as of December 31, 2022, to $106,911,000 as of September 30, 2023, a reduction of approximately 25%[14] - Cash flows used in operating activities for the nine months ended September 30, 2023, were $31,931,000, compared to $24,363,000 for the same period in 2022, an increase of about 31%[19] - Operating expenses for the three months ended September 30, 2023, totaled $12,455,000, compared to $11,032,000 for the same period in 2022, reflecting an increase of about 13%[16] - Cash interest paid for the nine months ended September 30, 2023, was $4,625,000, an increase from $3,858,000 for the same period in 2022[94] Inventory and Assets Management - As of September 30, 2023, the Company's net materials and supplies inventories remained stable at $2.8 million, with sufficient inventory reserves in place[39] - The total net property, plant, and equipment decreased slightly to $53.5 million as of September 30, 2023, from $54.8 million as of December 31, 2022[40] - Current prepaids and deposits increased to $3,674,000 as of September 30, 2023, compared to $2,840,000 as of December 31, 2022[38] - The Company held restricted cash of $35.1 million as of September 30, 2023, an increase from $34.0 million as of December 31, 2022[43] Stock and Equity - The balance of common stock shares outstanding increased to 202,132,839 as of September 30, 2023, from 199,770,659 as of September 30, 2022[22] - The total stockholders' equity as of September 30, 2023, was $22.579 million, a decrease from $76.115 million at the same time in 2022[22] - The total number of outstanding warrants increased to 89,722,621 as of September 30, 2023, from 81,563,197 at the end of 2022, marking a growth of 10.5%[75] - The Company issued 46,816,480 Private Placement Offering Warrants at an exercise price of $1.068, generating gross proceeds of approximately $55.9 million[71] Operational Focus and Future Plans - The company continues to focus on exploration and development of the Hycroft Mine, with a systematic approach to understand the deposit better[27] - The company plans to evaluate the impact of ASU 2022-03 on its financial statements and related disclosures, effective after December 15, 2023[36] - The company plans to continue its exploration efforts focusing on higher-grade opportunities identified during previous drilling[27] Compliance and Legal Matters - The Company is in compliance with all financial covenants under its debt agreements as of September 30, 2023[57] - The company has recorded no losses related to litigation or loss contingencies during the three and nine months ended September 30, 2023[97]

Financial Performance - Revenues for the three months ended June 30, 2023, were $0, compared to $3,831,000 for the same period in 2022, indicating a 100% decrease[15] - Net loss for the six months ended June 30, 2023, was $27,798,000, a slight improvement from a net loss of $31,042,000 for the same period in 2022, reflecting a reduction of approximately 10.5%[18] - The company reported a net loss of $13.9 million for the quarter ended March 31, 2023, and a similar loss of $13.9 million for the quarter ended June 30, 2023[20] - The net loss for the three months ended June 30, 2023, was $13,889,000, compared to a net loss of $8,982,000 for the same period in 2022, representing a 55% increase in losses[80] - The basic loss per common share for the six months ended June 30, 2023, was $0.14, an improvement from $0.22 in the same period of 2022, indicating a reduction in loss per share by 36%[80] Assets and Liabilities - Total assets decreased from $248,954,000 as of December 31, 2022, to $222,730,000 as of June 30, 2023, representing a decline of approximately 10.5%[13] - Total stockholders' equity fell from $63,306,000 at the end of 2022 to $37,614,000 by June 30, 2023, a decrease of approximately 40.6%[13] - The total liabilities remained relatively stable, decreasing slightly from $185,648,000 as of December 31, 2022, to $185,116,000 as of June 30, 2023[13] - As of June 30, 2023, total stockholders' equity was $37.6 million, a decrease from $63.3 million at January 1, 2023, primarily due to net losses[20] - The total liabilities of the Company as of June 30, 2023, were $185.1 million, a slight decrease from $185.6 million as of December 31, 2022[13] Cash Flow and Liquidity - Cash and cash equivalents decreased from $141,984,000 as of December 31, 2022, to $117,064,000 as of June 30, 2023, a decline of about 17.7%[13] - Cash flows used in operating activities for the six months ended June 30, 2023, were $22,434,000, slightly higher than $22,083,000 for the same period in 2022[18] - Cash, cash equivalents, and restricted cash at the end of the period were $151.746 million, down from $191.291 million at the end of June 30, 2022, reflecting a decrease of 20.7%[18] - The company held $34.7 million in restricted cash as of June 30, 2023, up from $34.0 million as of December 31, 2022[40] - The company incurred cash interest paid of $3,023,000 for the six months ended June 30, 2023, compared to $2,591,000 in the same period of 2022, reflecting a 17% increase[89] Operating Expenses - Operating expenses for the three months ended June 30, 2023, totaled $11,567,000, compared to $8,487,000 for the same period in 2022, an increase of approximately 36.5%[15] - The company incurred stock-based compensation costs of $1.560 million for the six months ended June 30, 2023, compared to $1.023 million for the same period in 2022, representing a 52.3% increase[18] - The company recorded a loss from operations of $11,567 for the three months ended June 30, 2023, compared to a loss of $8,487 for the same period in 2022[19] Debt and Interest - The company had principal payments on debt amounting to $1,100,000 during the six months ended June 30, 2023, compared to $24,956,000 in the same period of 2022, indicating a significant reduction in debt repayment[18] - Total debt, net as of June 30, 2023, was $139.9 million, an increase from $132.7 million as of December 31, 2022[55] - Interest expense for the three months ended June 30, 2023, was $4.6 million, compared to $4.2 million for the same period in 2022[57] - The effective interest rate on the Company's debt was 14.4% as of June 30, 2023[57] - The company has contractual debt payments totaling $151.1 million due in the five years following June 30, 2023[55] Inventory and Supplies - As of June 30, 2023, materials and supplies inventories were valued at $2.8 million, consistent with the value reported at December 31, 2022[35] - Current prepaids and deposits increased to $4.231 million as of June 30, 2023, compared to $2.840 million at December 31, 2022[37] - The company's total property, plant, and equipment, net was $54.142 million as of June 30, 2023, with depreciation expenses of $0.7 million for the three months ended June 30, 2023[38] Exploration and Development - The company plans to continue exploration focused on higher-grade opportunities identified during 2021 exploration drilling[25] - The company is focused on exploring and developing the Hycroft Mine, with plans to investigate opportunities identified in the 2023 Hycroft Technical Report Summary[24] - The company aims to recommence mining operations at the Hycroft Mine, which is located in Nevada, after addressing cost pressures and optimizing processing methods[23] Accounting and Reporting - The company adopted new accounting standards effective January 1, 2023, with no material impact on its financial statements[31] - The company amended its credit agreement to replace LIBOR with SOFR effective July 1, 2023, and does not expect further impact on financial statements from this change[49] - The company plans to adopt ASU 2022-03, effective for annual periods beginning after December 15, 2023, and is currently evaluating its impact on financial statements[34] Taxation - The company reported no net income tax expense for the three and six months ended June 30, 2023, maintaining an effective tax rate of Nil for both periods[79] - The company’s anticipated annual tax rate is influenced by the taxable income in each jurisdiction and the valuation allowance for deferred tax assets[78]

Financial Performance - Revenues for the three months ended March 31, 2023, were $0, compared to $9,166,000 for the same period in 2022, representing a 100% decrease[16] - Net loss for the three months ended March 31, 2023, was $13,909,000, an improvement from a net loss of $22,060,000 for the same period in 2022, reflecting a reduction of approximately 37.5%[16] - The company reported a basic loss per share of $0.07 for the three months ended March 31, 2023, compared to a loss per share of $0.27 for the same period in 2022[16] - The net loss for Q1 2023 was $13.909 million, a decrease from a net loss of $22.060 million in Q1 2022, reflecting improved financial performance despite no revenues[16] - The company incurred no net income tax expense for the three months ended March 31, 2023, maintaining an effective tax rate of Nil, consistent with the same period in 2022[74] Assets and Liabilities - Total assets decreased from $248,954,000 as of December 31, 2022, to $235,260,000 as of March 31, 2023, a decline of approximately 5.6%[14] - Total stockholders' equity decreased from $63,306,000 as of December 31, 2022, to $50,536,000 as of March 31, 2023, a decline of approximately 20.2%[14] - Cash and cash equivalents decreased from $141,984,000 as of December 31, 2022, to $131,987,000 as of March 31, 2023, a decline of about 7.5%[14] - The Company’s total liabilities decreased slightly to $184.724 million as of March 31, 2023, from $185.648 million at the end of 2022[14] - The Company’s accumulated deficit increased to $684.060 million as of March 31, 2023, compared to $670.151 million at the end of 2022[14] Operational Activities - The company did not generate revenues or incur costs of sales during the three months ended March 31, 2023, as it ceased mining operations in November 2021[28] - The company completed the processing of gold and silver ore previously placed on leach pads prior to ceasing mining operations in November 2021, resulting in no revenues for the three months ended March 31, 2023[28] - The company reported operating costs of $11,533,000 for the three months ended March 31, 2023, compared to $16,972,000 for the same period in 2022[78] - Total cost of sales for Q1 2023 was $0, while it was $16.972 million in Q1 2022, indicating a significant reduction in operational activity[16] Cash and Investments - The Company’s restricted cash increased to $34.3 million as of March 31, 2023, up from $34.0 million as of December 31, 2022, primarily related to reclamation and surety bond cash collateral[40] - The Company held assets for sale, specifically equipment not-in-use, valued at $7.1 million as of March 31, 2023[42] - The Company completed a purchase of a 50% undivided interest in patented mining claims for cash consideration of $0.05 million during the three months ended March 31, 2023[37] - The Company has plans to adopt new accounting guidance (ASU 2022-03) effective after December 15, 2023, and is currently evaluating its impact[33] Debt and Financing - Total net debt as of March 31, 2023, is $137.4 million, an increase from $132.7 million as of December 31, 2022[51] - The Company’s debt agreements include financial covenants, and as of March 31, 2023, it was in compliance with all such covenants[49] - The Company has contractual debt payments totaling $149.32 million over the next five years, with a significant payment of $144.07 million due in 2027[51] - The Company made a total of $23.9 million in Subsequent Equity Proceeds Prepayments under the Sprott Credit Agreement, which included a $10.0 million initial prepayment and a $13.9 million subsequent prepayment[45] Shareholder Information - The weighted average shares outstanding increased significantly from 81,201,453 in Q1 2022 to 200,270,659 in Q1 2023, reflecting a dilution effect on earnings per share[75] - The Company’s common stock authorized shares increased by 1 billion to a total of 1.4 billion as per the amendment approved on March 11, 2022[60] - The total outstanding warrants as of March 31, 2023, increased to 87,739,991, with a total amount of $68,027,000, compared to 81,563,197 warrants amounting to $67,496,000 as of December 31, 2022[64] Future Plans and Exploration - The company plans to continue exploration focusing on higher-grade opportunities identified during 2021 exploration drilling[26] - The company completed the Hycroft Property Initial Assessment Technical Report Summary in March 2023, which included a mineral resource estimate utilizing a pressure oxidation process[25] - The company plans to provide an updated technical report based on the findings from the 2023 Hycroft Technical Report Summary[25]

Mining Operations - The company ceased active mining operations in November 2021 and does not expect significant revenues from gold and silver sales until mining operations are restarted[22]. - The company completed the processing of gold and silver ore from leach pads prior to ceasing mining operations, indicating a focus on optimizing existing resources[19]. - The company is investigating opportunities identified through technical and data analyses leading up to the 2023 Hycroft TRS and plans to provide an updated technical report at an appropriate time[18]. - The Hycroft Mine has significant gold and silver mineral resources, but the company has not fully developed its milling and POX operations[28]. - The ongoing exploration and technical analyses are expected to lead to further updates and opportunities for the Hycroft Mine[18]. Production and Demand - In 2022, the company sold 17,728 ounces of gold and 44,084 ounces of silver, with revenues from gold and silver making up 97% and 3% of total revenue respectively[19][22]. - Gold production from mines increased by 1.2% in 2022, totaling approximately 3,612 metric tons, representing about 75.9% of the global gold supply[24]. - Silver production from mines increased by approximately 2.5% in 2022, totaling approximately 843 million troy ounces, representing about 82% of the global silver supply[25]. - In 2022, gold demand was approximately 4,741 metric tons, totaling about $274.4 billion in value, with jewelry accounting for 46% of the demand[24]. - Silver demand in 2022 was approximately 1,101 million troy ounces, totaling about $26.3 billion in value, with industrial uses comprising 37% of the demand[25]. Financials and Market Conditions - Gold prices reached a high of $2,067 per ounce in 2020 and averaged $1,770 per ounce for the year, while silver prices peaked at $28.89 per ounce and averaged $20.55 per ounce[27]. - As of March 24, 2023, the afternoon fix price for gold was $1,994 per ounce and for silver was $23.17 per ounce[27]. - The average price of silver in 2022 was $21.71 per ounce, with a high of $26.18 and a low of $17.77[27]. - The average price of gold in 2022 was $1,800 per ounce, with a high of $2,039 and a low of $1,628[27]. - The company has no significant dependencies on its three customers for metal sales due to the liquidity of metal markets[22]. Human Resources and Safety - The company had approximately 74 employees as of December 31, 2022, with 64 working at the Hycroft Mine[31]. - The total recordable injury frequency rate (TRIFR) at the Hycroft Mine was 0.00 at the end of 2022, significantly lower than the mining industry average of approximately 2.02[33]. - The company emphasizes safety as a cornerstone of its corporate culture, with mandatory safety programs in place for employees and contractors[45]. - The company faces intense competition for qualified employees in the mining industry, which may affect its ability to hire and retain talent[29]. - The company has implemented health and safety policies in response to COVID-19, which did not materially adversely affect operations in 2021 and 2022[34]. Regulatory and Environmental Compliance - The company has accelerated reclamation activities to regain compliance with environmental regulations following a notice of non-compliance received in 2022[40]. - The company is subject to various federal, state, and local laws and regulations governing mining operations, which could impact profitability and operational costs[36]. - The company received a notice of non-compliance from the Nevada Division of Environmental Protection regarding a historical reclamation matter, prompting accelerated reclamation activities[40]. - The company’s surface management surety bonds totaled $58.7 million as of December 31, 2022, primarily securing reclamation obligations for the Hycroft Mine[41]. Technical and Resource Assessment - As of December 31, 2022, the Hycroft Mine had measured and indicated mineral resources of 10.6 million ounces of gold and 360.7 million ounces of silver, and inferred mineral resources of 3.4 million ounces of gold and 96.1 million ounces of silver[19]. - The 2023 Hycroft Technical Report Summary provides an initial assessment of the mineral resource estimate utilizing milling and pressure oxidation for sulfide mineralization[18]. - The 2023 Hycroft Technical Report Summary indicates a shift to a milling and pressure oxidation process for sulfide mineralization, which is expected to enhance recovery rates[18]. - The Hycroft Mine has large gold and silver mineral resources, but the company has not fully developed its milling and POX operations, impacting long-term production and cost structure[28]. Industry Challenges - The mining industry faces uncertainties regarding title matters, which could jeopardize business operations if defects in title are identified[49]. - Proposed legislation could significantly impact operational costs on unpatented mining claims and the Net Proceeds Mineral Tax paid to the State of Nevada[49].