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].
HYCROFT MNG.HLDG.EQ. WARRT(HYMCZ) - 2023 Q4 - Annual Report