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]
HYCROFT MNG.HLDG.EQ. WARRT(HYMCZ) - 2024 Q2 - Quarterly Report