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 in the same period of 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] - For the three months ended March 31, 2023, the company reported no gold or silver sales, while in the same period of 2022, gold sales amounted to $8,906,000 from 4,773 ounces sold and silver sales were $260,000 from 10,934 ounces sold[13]. - The net loss for the three months ended March 31, 2023, was $13,909,000, a decrease from a net loss of $22,060,000 in the same period of 2022[16] - The company incurred 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] Assets and Liabilities - Total assets decreased from $248,954,000 on December 31, 2022, to $235,260,000 on March 31, 2023, a decline of approximately 5.5%[14] - Cash and cash equivalents decreased from $141,984,000 on December 31, 2022, to $131,987,000 on March 31, 2023, a decline of about 7.5%[14] - Total stockholders' equity decreased from $63,306,000 on December 31, 2022, to $50,536,000 on March 31, 2023, a decline of approximately 20.2%[14] - The Company’s total liabilities decreased from $3.0 million in December 2022 to $1.3 million in March 2023, primarily due to a reduction in accrued compensation[54] - 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 total current prepaids and deposits decreased to $2.0 million as of March 31, 2023, from $2.8 million as of December 31, 2022[36] Cash Flow and Financing - The company completed an equity private placement and an at-the-market public offering program in March 2022, raising gross proceeds of $194.4 million before issuance costs[26] - The company raised approximately $138.6 million from the sale of 89,553,584 shares under its ATM program, with $361.4 million remaining available for future issuance[62] - 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][47] - The Company has a minimum unrestricted cash requirement of $15.0 million as per the Second Amended and Restated Credit Agreement[47] Operational Updates - The company is focused on exploring and developing the Hycroft Mine, with plans to investigate opportunities identified in the 2023 Hycroft Technical Report Summary[25] - The company restarted pre-commercial scale open pit mining operations at the Hycroft Mine in Q2 2019 and began producing gold and silver in Q3 2019[24] - 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 is currently involved in legal proceedings regarding a breach of contract claim, but believes the complaint is without merit and has filed a motion to dismiss[86] Inventory and Supplies - As of March 31, 2023, the Company reported net materials and supplies inventories of $2.7 million, a slight decrease from $2.8 million as of December 31, 2022[34] - The Company’s total property, plant, and equipment, net was $54.4 million as of March 31, 2023, compared to $54.8 million as of December 31, 2022, with accumulated depreciation of $32.4 million[37] - The Company has assets held for sale, comprised of equipment not-in-use, valued at $7.1 million as of March 31, 2023[42] Debt and Interest - Interest expense for the three months ended March 31, 2023, decreased to $4.436 million from $5.346 million in the same period of 2022, reflecting a reduction of approximately 17%[52] - The Company’s debt agreements include customary representations, warranties, and covenants, with compliance confirmed as of March 31, 2023[49] - The Company’s asset retirement obligation (ARO) increased to $10.488 million as of March 31, 2023, from $10.302 million at the end of 2022, primarily due to accretion[55] - The company’s contractual debt payments total $149.32 million over the next five years, with a significant payment of $144.07 million due in 2027[51] Stock and Equity - The company has outstanding warrants totaling 87,739,991 as of March 31, 2023, with a fair value of $68.027 million[64] - The company issued 46,816,480 warrants at an exercise price of $1.068 per share during the private placement offering, raising gross proceeds of $55.9 million[61] - The weighted average shares outstanding increased significantly to 200,270,659 in Q1 2023 from 81,201,453 in Q1 2022, resulting in a basic loss per share of $0.07 compared to $0.27 in the prior year[75] - As of March 31, 2023, the Company had 3,392,676 unvested restricted stock units, an increase from 1,152,272 unvested units at the beginning of the year[70]
HYCROFT MNG.HLDG.EQ. WARRT(HYMCW) - 2023 Q1 - Quarterly Report