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 a 49% increase in net loss year-over-year[78]. - The company reported a basic loss per share of $1.00 for the three months ended March 31, 2024, compared to a loss per share of $0.69 for the same period in 2023[15]. - Basic and diluted loss per share for the three months ended March 31, 2024, was $1.00, compared to $0.69 for the same period in 2023, indicating a 45% increase in loss per share[73]. - Operating expenses for the three months ended March 31, 2024, totaled $12.2 million, compared to $10.5 million for the same period in 2023, reflecting an increase of approximately 16.2%[15]. - Operating costs for the Hycroft Mine were $10.326 million in Q1 2024, up from $8.194 million in Q1 2023, indicating a 26% increase[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 a 15% increase[78]. 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 decline of about 15.9%[13]. - The company’s accumulated deficit increased to $745.9 million as of March 31, 2024, from $725.2 million at the end of 2023, an increase of approximately 2.5%[19]. - The company’s stockholders' equity showed a deficit of $6.3 million as of March 31, 2024, compared to equity of $12.7 million at the end of 2023[13]. - 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 Company’s total debt, net, was $116.4 million as of March 31, 2024, down from $142.6 million as of December 31, 2023, indicating a reduction of 18.4%[49]. Cash Flow and Financing - 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 45.8%[13]. - Cash flows used in operating activities amounted to $11.7 million for the three months ended March 31, 2024, compared to $8.8 million for the same period in 2023, indicating an increase of approximately 32.8%[17]. - The Company raised a total of $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 sold 517,688 shares of common stock during the three months ended March 31, 2024, generating gross proceeds of $1.2 million[24]. - The company sold an additional 1,691,055 shares of common stock for gross proceeds of $6.4 million through the ATM Program since the end of Q1 2024[98]. - The Company had $14.8 million available for issuance under the ATM Program as of March 31, 2024, with net proceeds expected to be used for general corporate purposes[65]. Interest and Debt Management - Interest expense for the three months ended March 31, 2024, totaled $10.119 million, significantly higher than $4.436 million for the same period in 2023, indicating a 128.3% increase[52]. - The effective interest rate for the Sprott Credit Agreement was 18.1% as of March 31, 2024, including amortization[52]. - The Company voluntarily prepaid $34.7 million of its first lien loan on January 5, 2024, reducing the outstanding balance to $15.0 million[46]. - Cash interest paid decreased significantly from $1.473 million in Q1 2023 to $502,000 in Q1 2024, a reduction of approximately 66%[84]. - The Company incurred an increase in debt from in-kind interest amounting to $2,541,000 for the three months ended March 31, 2024[84]. Operational Focus and Developments - The company is focusing on exploration drilling and technical studies to optimize processing methods for sulfide ores and recovering gold and silver[23]. - The Company recognized $1.4 million as other income in Q1 2024 due to the termination of a portion of an Equipment Purchase Agreement[42]. - 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 a change in estimate for asset retirement obligations, resulting in an expense of $2.0 million due to revised engineering design requirements and a change in work timing[56]. Compliance and Regulatory - The Company was in compliance with all financial covenants under its debt agreements as of March 31, 2024[48]. - The company incurred no net income tax expense for the three months ended March 31, 2024, maintaining an effective tax rate of Nil[72]. - The company’s public float exceeded $75.0 million on April 11, 2024, allowing it to sell more shares without the limitations of the baby shelf rule[66].
HYCROFT MNG.HLDG.EQ. WARRT(HYMCW) - 2024 Q1 - Quarterly Report