HYCROFT MNG.HLDG.EQ. WARRT(HYMCW) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS This section presents Hycroft Mining Holding Corporation's unaudited condensed consolidated financial statements for Q2 2025, covering balance sheets, operations, cash flows, and stockholders' deficit - The company's financial statements are prepared in accordance with U.S. GAAP and SEC rules for interim reporting, condensing certain information and footnote disclosures[28] Key Financial Data (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------------------------------ | :----------------------------- | :------------------------------- | | Cash and cash equivalents | $68,768 | $49,560 | | Total assets | $162,147 | $140,135 | | Total liabilities | $177,406 | $173,550 | | Total stockholders' deficit | $(15,259) | $(33,415) | Key Operating Results (Three and Six Months Ended June 30, 2025 vs. 2024) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Loss from operations | $(9,315) | $(10,530) | $(18,537) | $(22,462) | | Net loss | $(11,737) | $(13,180) | $(23,496) | $(33,930) | | Basic and diluted loss per share | $(0.43) | $(0.57) | $(0.89) | $(1.55) | Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 (unaudited) | December 31, 2024 | | :------------------------------------------ | :-------------------------- | :---------------- | | Assets: | | | | Cash and cash equivalents | $68,768 | $49,560 | | Current assets | $74,797 | $54,600 | | Total assets | $162,147 | $140,135 | | Liabilities: | | | | Current liabilities | $2,899 | $5,794 | | Total liabilities | $177,406 | $173,550 | | Stockholders' deficit: | | | | Total stockholders' deficit | $(15,259) | $(33,415) | Unaudited Condensed Consolidated Statements of Operations Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | General and administrative costs | $3,478 | $3,906 | $6,411 | $6,820 | | Mine site costs | $2,673 | $2,488 | $5,153 | $5,072 | | Exploration and development costs | $2,344 | $5,053 | $5,343 | $9,956 | | Loss from operations | $(9,315) | $(10,530) | $(18,537) | $(22,462) | | Net loss | $(11,737) | $(13,180) | $(23,496) | $(33,930) | | Basic and diluted loss per share | $(0.43) | $(0.57) | $(0.89) | $(1.55) | Unaudited Condensed Consolidated Statements of Cash Flows Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(18,718) | $(20,331) |\n| Net cash (used in) provided by investing activities | $(329) | $1,268 |\n| Net cash provided by (used in) financing activities | $40,759 | $(28,004) |\n| Net increase (decrease) in cash, cash equivalents, and restricted cash | $21,712 | $(47,067) |\n| Cash, cash equivalents, and restricted cash, end of period | $98,769 | $85,483 | Unaudited Condensed Consolidated Statements of Stockholders' Deficit Unaudited Condensed Consolidated Statements of Stockholders' Deficit (in thousands, except share amounts) | Metric | Balance at January 1, 2025 | Balance at June 30, 2025 | | :------------------------------------------ | :------------------------- | :----------------------- | | Common Stock (Shares) | 24,875,587 | 37,838,479 | | Common Stock (Amount) | $21 | $22 | | Additional Paid-in Capital | $752,630 | $794,281 | | Accumulated Deficit | $(786,066) | $(809,562) | | Total Stockholders' Deficit | $(33,415) | $(15,259) | - The company issued 12,500,000 shares of common stock and warrants, contributing $40,349 thousand to additional paid-in capital during Q2 2025[20] Notes to Unaudited Condensed Consolidated Financial Statements 1. Company Overview - Hycroft Mining Holding Corporation is a U.S.-based gold and silver exploration and development company focused on the Hycroft Mine in Nevada[23] - Mining operations were discontinued in November 2021 due to cost pressures, with the company now prioritizing exploration, technical studies, and strategic initiatives[24] - The company completed a public offering on June 13, 2025, raising $40.7 million in net proceeds for further exploration, working capital, and general corporate purposes[27] 2. Summary of Significant Accounting Policies - Financial statements are prepared in accordance with U.S. GAAP and SEC rules for interim reporting, with certain information condensed or omitted[28] - Management makes estimates and assumptions, particularly for long-lived assets, mining plans, environmental costs, and fair value measurements, which may differ from actual results[31] - No impairment was deemed necessary for long-lived assets as of June 30, 2025, based on a market-based fair value approach[35] 3. Prepaids and Deposits Components of Prepaids and Deposits (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Prepaids and deposits, current | $3,337 | $2,863 | | Prepaids, non-current | $652 | $600 | | Total | $3,989 | $3,463 | - Current prepaids increased primarily due to higher surety bond fees and insurance, while mining claims and license fees decreased[38] 4. Equity Securities Components of Equity Securities (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Equity securities, current | $1,109 | $454 | | Equity securities, non-current | $— | $151 | | Total | $1,109 | $605 | - The company recorded an unrealized gain on equity securities of $0.4 million for the three months and $0.5 million for the six months ended June 30, 2025, compared to an unrealized loss in 2024[39] - Non-current equity securities are restricted from sale for 12 months, with a portion becoming salable quarterly thereafter[39] 5. Property, Plant, and Equipment and Assets Held-For-Sale, Net Property, Plant, and Equipment, Net (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Total property, plant, and equipment, net | $50,999 | $51,588 | | Assets held-for-sale | $5,698 | $5,698 | | Total | $56,697 | $57,286 | - Depreciation and amortization expense decreased to $0.5 million (Q2 2025) and $1.0 million (YTD Q2 2025) from $0.6 million and $1.2 million (same periods 2024), primarily due to certain assets becoming fully depreciated[41][108] - Assets held-for-sale, totaling $5.7 million, consist of unused mining equipment for which the company is actively seeking buyers[42] 6. Restricted Cash Components of Restricted Cash (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Reclamation and other surety bond cash collateral | $29,948 | $27,445 | | Credit card collateral | $53 | $53 | | Total | $30,001 | $27,498 | - Restricted cash increased to $30.0 million as of June 30, 2025, primarily for surface management surety bonds, which total $58.7 million[43] - Interest income on restricted cash decreased to $0.3 million (Q2 2025) and $0.5 million (YTD Q2 2025) from $0.3 million and $0.6 million (same periods 2024)[44] 7. Accounts Payable, Accrued Expenses, and Other Liabilities Components of Accounts Payable, Accrued Expenses, and Other Liabilities (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Accounts payable and accrued expenses | $1,330 | $2,389 | | Accrued compensation and benefits | $1,293 | $3,116 | | Total current liabilities | $2,692 | $5,561 | | Other liabilities, non-current | $23 | $— | - Total current accounts payable, accrued expenses, and other liabilities decreased significantly from $5.561 million at December 31, 2024, to $2.692 million at June 30, 2025, primarily due to a reduction in accrued compensation and benefits[46] 8. Fair Value Measurements Assets and Liabilities Measured at Fair Value (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Equity securities, current | $1,109 | $454 | | Equity securities, non-current | $— | $151 | | 5-Year Private Warrants | $— | $6 | - The estimated fair value of the company's debt instruments (Sprott Credit Agreement and Subordinated Notes) was $110.5 million at June 30, 2025, compared to a carrying value of $131.0 million[48] - The fair value of 5-Year Private Warrants was nil as of June 30, 2025, due to their expiration on May 29, 2025[47] 9. Debt, Net Components of Debt, Net (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Debt, net, current | $28 | $54 | | Debt, net, non-current | $131,007 | $124,945 | | Total Debt, net | $131,035 | $125,000 | Interest Expense (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Sprott Credit Agreement | $400 | $439 | $794 | $941 | | Subordinated Notes | $2,876 | $2,605 | $5,681 | $5,145 | | Total Interest expense | $3,479 | $3,218 | $6,866 | $13,338 | - Total debt, net, increased to $131.035 million at June 30, 2025, from $125.000 million at December 31, 2024[50] - Interest expense for the six months ended June 30, 2025, significantly decreased to $6.9 million from $13.3 million in 2024, primarily due to a $6.9 million accelerated amortization of original issue discount and issuance costs recorded in January 2024[51][115] - The company was in compliance with all financial covenants under its debt agreements as of June 30, 2025[53] 10. Asset Retirement Obligation Changes in Asset Retirement Obligation (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Balance, beginning of period | $13,151 | $7,973 | | Accretion | $666 | $1,253 | | Change in estimates | $— | $5,863 | | Balance, end of period | $13,817 | $13,151 | | Current | $179 | $179 | | Non-current | $13,638 | $12,972 | - The asset retirement obligation increased to $13.8 million at June 30, 2025, from $13.2 million at December 31, 2024, primarily due to accretion[54] - No adjustments or changes in estimate were recorded for the six months ended June 30, 2025, compared to a $4.0 million adjustment in 2024[54][109] 11. Warrant Liabilities - 34,289,898 5-Year Private Warrants expired unexercised on May 29, 2025, with an exercise price of $11.50 per warrant (post 1-for-10 reverse stock split basis)[56] - The expiration of these warrants, including 670,600 classified as warrant liabilities, had no material impact on the company's financial statements[56] 12. Stockholders' Equity - The company completed a public offering on June 13, 2025, issuing 12,500,000 Units (each with one common stock share and one-half 2025 3-Year Warrant) at $3.50 per Unit, generating $40.7 million in net proceeds[61][62] - The underwriters partially exercised their over-allotment option for 937,500 2025 3-Year Warrants on June 12, 2025, and an additional 1,324,117 shares of common stock on July 11, 2025, increasing total net proceeds to approximately $45.0 million[61][94][95] - Through the New ATM Program, the company sold 108,072 shares for $0.3 million gross proceeds during the six months ended June 30, 2025, with $97.5 million remaining available[63][122] Outstanding Equity Classified Warrants (as of June 30, 2025) | Warrant Type | Exercise Price | Expiration Date | Warrants Outstanding | | :------------------------------------------ | :------------- | :-------------- | :------------------- | | Public Offering Warrants (5-Year) | $10.50 | October 6, 2025 | 9,583,334 | | Private Placement Offering Warrants | $1.068 | March 15, 2027 | 46,816,480 | | Public Offering Warrants (3-Year) | $4.200 | June 13, 2028 | 7,187,500 | 13. Stock-Based Compensation - As of June 30, 2025, 490,281 shares were available for issuance under the HYMC 2020 Performance and Incentive Pay Plan (PIPP), with all awards granted as restricted stock units (RSUs)[67] Unvested and Outstanding Share Awards Under PIPP | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Unvested at beginning of year | 678,071 | 607,099 | | Granted | 491,949 | 435,204 | | Canceled/forfeited | (15,304) | (20,014) | | Vested | (415,464) | (322,183) | | Unvested end of period | 739,252 | 700,106 | 14. Income Taxes - The company incurred nil net income tax expense or benefit for the six months ended June 30, 2025 and 2024[71] - The effective tax rate was nil for both periods, primarily due to changes in the valuation allowance offsetting net deferred tax assets[71] 15. Loss Per Share Basic and Diluted Loss Per Share Calculations (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(11,737) | $(13,180) | $(23,496) | $(33,930) | | Weighted average shares outstanding | 27,584,548 | 22,983,276 | 26,273,721 | 21,903,372 | | Loss per common share, basic and diluted | $(0.43) | $(0.57) | $(0.89) | $(1.55) | - Due to net losses, common stock equivalents (warrants and RSUs) were anti-dilutive and excluded from diluted EPS calculations[73] 16. Segment Information - The company operates as a single reportable segment, with operations limited to exploration since mining ceased in November 2021[75] - The Chief Executive Officer, as the chief operating decision-maker, manages all resource allocation and performance evaluation on a consolidated basis[75] 17. Supplemental Cash Flow Information Supplemental Cash Flow Information (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Increase in debt from in-kind interest | $5,681 | $5,145 | | Accelerated amortization of original issue discount and issuance costs | $— | $6,871 | | Cash interest paid | $794 | $941 | 18. Commitments and Contingencies - The company is a defendant in four pro se individual and/or putative class/derivative actions in Delaware Chancery Court related to alleged breaches of Warrant Agreements[77] - No losses have been recorded for litigation or loss contingencies for the six months ended June 30, 2025 and 2024, as a loss was not deemed probable or reasonably estimable[78] - Off-balance sheet arrangements include a 4% net profit Crofoot Royalty (capped at $7.6 million, $3.3 million paid) and a perpetual 1.5% net smelter Sprott Royalty Agreement (estimated NPV $146.7 million)[82][83][84][85] 19. Related Party Transactions - AMC is classified as a related party due to its representative on the company's Board of Directors[86] - The company paid $0.04 million in director fees to AMC's board representative for both the six months ended June 30, 2025 and 2024[86] 20. Subsequent Events - Subsequent to June 30, 2025, on July 11, 2025, underwriters partially exercised their over-allotment option to purchase an additional 1,324,117 shares of common stock, generating $4.3 million in net proceeds[87] ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This section discusses Hycroft Mining Holding Corporation's operations, safety, exploration, and financial performance, including liquidity and capital resources for Q2 2025 - The company is a U.S.-based gold and silver exploration and development company, owning the Hycroft Mine in Nevada, with a focus on exploration and project development[89] - Mining operations were halted in November 2021, and significant revenues from gold and silver sales are not anticipated until technical work is completed and operations resume[89] - The company maintained a Total Recordable Injury Frequency Rate (TRIFR) of 0.00 for the six months ended June 30, 2025, and received the 2025 first place NVMA Operator Safety Award[91] - Net loss improved to $(23.5) million for the six months ended June 30, 2025, from $(33.9) million in the prior year, primarily due to reduced exploration costs and lower interest expense[16][107][115] - Cash and cash equivalents increased to $68.8 million at June 30, 2025, from $49.6 million at December 31, 2024, driven by $40.8 million in net cash provided by financing activities[14][116][127] Introduction to the Company - Hycroft Mining Holding Corporation is a U.S.-based gold and silver exploration and development company, owning the Hycroft Mine in Nevada[89] - The company's focus is on exploring its 64,000 acres of claims and developing the project safely, environmentally responsibly, and cost-effectively[89] - Mining operations were halted in November 2021, and significant revenues from gold and silver sales are not expected until technical work is completed and operations resume[89] Health and Safety - The company reported no lost time incidents during the six months ended June 30, 2025, operating over 1.3 million man-hours without such an incident[91] - The Hycroft Mine's Total Recordable Injury Frequency Rate (TRIFR) was 0.00 at both June 30, 2025, and December 31, 2024, well below industry averages[91] - Hycroft was awarded the 2025 first place NVMA Operator Safety Award for small surface mines[91] Executive Summary - During Q2 2025, the company reviewed 2024 Drill Program results for new high-grade silver zones and continued metallurgical and variability test work for a new technical report expected in Q4 2025[92] - The company aims to strengthen its balance sheet by reducing debt and funding future development, while exploring other strategic initiatives[92] - A public offering in June 2025 raised $40.7 million in net proceeds, with additional proceeds of $4.3 million from an over-allotment option exercised in July 2025, for exploration, working capital, and general corporate purposes[93][95][87] Recent Developments Exploration drilling - Focus during H1 2025 was on incorporating 2024 drill program results and refining the structural framework into an updated geologic model[97] - Work improved understanding of mineral domains and became the foundation for selecting targets in the Brimstone and Vortex areas[97] Metallurgical and variability test work - Advanced metallurgical and engineering work for designing a sulfide milling operation, testing composite samples from the ore body[98] - Identified significant improvements in gold and silver flotation recoveries compared to the current technical report[98] - Continuing test work for optimal inputs and operating parameters for roasting, pressure oxidation, leaching, sulfuric acid generation, and power co-generation[98] 2025 Outlook - Key plans for 2025 include assessing high-grade underground mining, evaluating rehandling and leaching ore in a historic leach pad, and potentially mining leachable oxide and transition ore[99][102] - The 2025-2026 Exploration Drill Program will commence in early August 2025, focusing on expanding high-grade silver systems with approximately 14,500 meters of core drilling[100][101] - Trade-off studies and alternative analyses will continue to optimize recoveries and explore by-product revenue streams, with an updated technical report anticipated in Q4 2025[103] Results of Operations General and administrative costs General and Administrative Costs (in thousands) | Period | 2025 | 2024 | | :------------------------------------------ | :--- | :--- | | Three Months Ended June 30 | $3,478 | $3,906 | | Six Months Ended June 30 | $6,411 | $6,820 | - General and administrative costs remained substantially consistent year-over-year, with a slight decrease in both the three and six-month periods[105] Mine site costs Mine Site Costs (in thousands) | Period | 2025 | 2024 | | :------------------------------------------ | :--- | :--- | | Three Months Ended June 30 | $2,673 | $2,488 | | Six Months Ended June 30 | $5,153 | $5,072 | - Mine site costs remained substantially consistent year-over-year, with a slight increase in both the three and six-month periods[106] Exploration and development costs Exploration and Development Costs (in thousands) | Period | 2025 | 2024 | | :------------------------------------------ | :--- | :--- | | Three Months Ended June 30 | $2,344 | $5,053 | | Six Months Ended June 30 | $5,343 | $9,956 | - Exploration and development costs significantly decreased by approximately 54% for both the three and six months ended June 30, 2025, as drilling was paused to incorporate 2024 drill program results[107] Depreciation and amortization Depreciation and Amortization Expense (in thousands) | Period | 2025 | 2024 | | :------------------------------------------ | :--- | :--- | | Three Months Ended June 30 | $498 | $567 | | Six Months Ended June 30 | $1,032 | $1,183 | - Depreciation and amortization expense decreased due to certain assets becoming fully depreciated[108] Asset retirement obligation adjustments and accretion expense Asset Retirement Obligation Adjustments and Accretion Expense (in thousands) | Period | 2025 | 2024 | | :------------------------------------------ | :--- | :--- | | Three Months Ended June 30 | $333 | $2,267 | | Six Months Ended June 30 | $666 | $4,491 | - Expense significantly decreased due to no adjustments or changes in estimate in 2025, compared to $2.0 million (Q2) and $4.0 million (YTD Q2) adjustments in 2024[109] Gain on asset sales Gain on Asset Sales (in thousands) | Period | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Three Months Ended June 30 | $(11) | $(3,751) | | Six Months Ended June 30 | $(68) | $(5,060) | - Gain on asset sales significantly decreased in 2025 due to reduced asset sales compared to the prior year[111] Non-operating income (expense) Non-Operating Income and (Expense) (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest income | $687 | $1,058 | $1,400 | $2,353 | | Other income (loss) | $370 | $(490) | $507 | $(483) | | Interest expense | $(3,479) | $(3,218) | $(6,866) | $(13,338) | | Total non-operating income and (expense) | $(2,422) | $(2,650) | $(4,959) | $(11,468) | Interest income Interest Income (in thousands) | Period | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Three Months Ended June 30 | $687 | $1,058 | | Six Months Ended June 30 | $1,400 | $2,353 | - Interest income decreased due to a reduction in invested cash[113] Other income (loss) Other Income (Loss) (in thousands) | Period | 2025 | 2024 | | :------------------------------------------ | :--- | :--- | | Three Months Ended June 30 | $370 | $(490) | | Six Months Ended June 30 | $507 | $(483) | - Other income in 2025 was primarily due to unrealized gains on equity securities, contrasting with unrealized losses in 2024[114] Interest expense Interest Expense (in thousands) | Period | 2025 | 2024 | | :------------------------------------------ | :--- | :--- | | Three Months Ended June 30 | $3,479 | $3,218 | | Six Months Ended June 30 | $6,866 | $13,338 | - Interest expense for the six months ended June 30, 2025, decreased significantly due to $6.9 million of accelerated amortization of original issue discount and issuance costs recorded in January 2024[115] Liquidity and Capital Resources General - Unrestricted cash position at June 30, 2025, was $68.8 million, up from $49.6 million at December 31, 2024[116] - The company does not expect to generate net positive cash from operations for the foreseeable future due to the cessation of mining activities[117] - Future liquidity is dependent on unrestricted cash and other sources, with no assurance that additional financing will be available on acceptable terms[117] - The company is managing liquidity by controlling spending, monetizing non-core assets, and evaluating alternatives to raise capital, including potential debt restructuring[118][119] Cash and liquidity Projected Sources of Future Liquidity (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Cash and cash equivalents | $68,768 | $49,560 | | Assets held-for-sale | $5,698 | $5,698 | | Equity securities | $1,109 | $454 | | Receivables | $272 | $369 | | Total projected sources of future liquidity | $75,847 | $56,081 | - The company sold 108,072 shares through the New ATM Program for $0.3 million gross proceeds during H1 2025, with $97.5 million remaining available[122] Six months ended June 30, 2025 compared to six months ended June 30, 2024 Sources and Uses of Cash (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net loss | $(23,496) | $(33,930) | | Net cash used in operating activities | $(18,718) | $(20,331) | | Net cash (used in) provided by investing activities | $(329) | $1,268 | | Net cash provided by (used in) financing activities | $40,759 | $(28,004) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $21,712 | $(47,067) | | Cash, cash equivalents, and restricted cash, end of period | $98,769 | $85,483 | Cash used in operating activities - Cash used in operating activities decreased to $18.7 million in H1 2025 from $20.3 million in H1 2024, primarily due to a lower net loss[124][125] - Non-cash interest expense was $6.1 million in H1 2025, compared to $12.4 million in H1 2024, which included accelerated amortization[124][125] Cash (used in) provided by investing activities - Investing activities used $0.3 million in H1 2025, mainly for property, plant, and equipment additions, partially offset by asset sales[126] - In H1 2024, investing activities generated $1.3 million, primarily from asset sales[126] Cash provided by (used in) financing activities - Financing activities provided $40.8 million in H1 2025, primarily from common stock issuance through the public offering and ATM program[127] - In H1 2024, financing activities used $28.0 million, mainly due to $38.1 million in debt principal payments, including a voluntary prepayment[128] Future capital and cash requirements Gross Contractual Cash Obligations as of June 30, 2025 (in thousands) | Obligation | Total | Less than 1 Year | 1 - 3 Years | 3 - 5 Years | More than 5 Years | | :------------------------------------------ | :---- | :--------------- | :---------- | :---------- | :---------------- | | Sprott Royalty Agreement | $241,199 | $— | $— | $— | $241,199 | | Remediation and reclamation expenditures | $110,963 | $179 | $9,944 | $— | $100,840 | | Interest payments | $3,382 | $1,764 | $1,618 | $— | $— | | Crofoot Royalty | $4,344 | $— | $— | $— | $4,344 | | Repayments of debt principal | $164,775 | $29 | $164,746 | $— | $— | | Total | $524,663 | $1,972 | $176,308 | $— | $346,383 | - The company's total gross contractual cash obligations are estimated at $524.7 million, with the largest portions being the Sprott Royalty Agreement and remediation/reclamation expenditures[129] Debt covenants - The Sprott Credit Agreement restricts certain corporate actions and requires maintaining Working Capital of at least $10.0 million and Unrestricted Cash of at least $15.0 million[131] - The company was in compliance with all covenants under its debt agreements as of June 30, 2025[131] Off-balance sheet arrangements - Off-balance sheet arrangements include a net profit royalty arrangement (Crofoot Royalty) and a net smelter royalty arrangement (Sprott Royalty Agreement)[134] Critical Accounting Estimates - The preparation of financial statements requires significant assumptions, estimates, and judgments, as detailed in the company's Annual Report on Form 10-K for 2024[135] Cautionary Statement Regarding Forward-Looking Statements - This report contains forward-looking statements subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially[136][137] - Readers are cautioned not to place undue reliance on these statements, which speak only as of their date, and the company undertakes no obligation to update them[139] ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK As a smaller reporting company, Hycroft Mining Holding Corporation omits quantitative and qualitative disclosures about market risk from this filing - The company qualifies as a smaller reporting company under Item 10(f) of Regulation S-K[141] - Quantitative and qualitative disclosures about market risk are not required and are omitted from this filing[141] ITEM 4. CONTROLS AND PROCEDURES Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no significant internal control changes during the quarter - Management, with CEO and CFO participation, concluded that disclosure controls and procedures were effective as of June 30, 2025[143][144] - Disclosure controls are designed to provide reasonable assurance that required information is accumulated, communicated, recorded, processed, summarized, and reported timely[144] - No significant changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[146] PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS No material developments occurred in legal proceedings during Q2 2025, as previously disclosed in the 2024 Annual Report on Form 10-K - No material developments occurred in legal proceedings during the quarter ended June 30, 2025[147] - Legal proceedings were previously disclosed in Part I, Item 3 of the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024[147] ITEM 1A. RISK FACTORS As a smaller reporting company, Hycroft Mining Holding Corporation omits risk factors from this Quarterly Report filing - The company qualifies as a smaller reporting company under Item 10(f) of Regulation S-K[148] - Risk factors are not required in a Quarterly Report and are omitted from this filing[148] ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS No unregistered sales of equity securities or use of proceeds were reported during the period - No unregistered sales of equity securities and use of proceeds to report[149] ITEM 3. DEFAULTS UPON SENIOR SECURITIES No defaults upon senior securities were reported during the period - No defaults upon senior securities to report[150] ITEM 4. MINE SAFETY DISCLOSURES The company prioritizes mine safety with mandatory programs and a goal of zero workplace injuries, with violation details provided in Exhibit 95.1 - The company prioritizes mine safety with mandatory programs including training, risk management, and workplace inspection, aiming for zero workplace injuries[151] - Information concerning mine safety violations or other regulatory matters is included in Exhibit 95.1[152] ITEM 5. OTHER INFORMATION No material changes to director nominee recommendation procedures or Rule 10b5-1 trading arrangements by directors or officers occurred during the quarter - No material changes to procedures for security holders to recommend Board of Directors nominees[153] - No director or officer adopted or terminated a Rule 10b5-1(c) trading arrangement during the quarter ended June 30, 2025[153] ITEM 6. EXHIBITS This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including warrant agreements, CEO/CFO certifications, and mine safety disclosures - Exhibit 4.1: Warrant Agency Agreement dated June 13, 2025[154] - Exhibit 4.2: Form of Warrant dated June 12, 2025[154] - Exhibit 31.1 and 31.2: Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a)[154] - Exhibit 95.1: Mine Safety Disclosures[154] SIGNATURES The report is signed by Hycroft Mining Holding Corporation's President and CEO, and EVP and CFO, as of July 31, 2025 - The report is signed by Diane R. Garrett, President and Chief Executive Officer, and Stanton Rideout, Executive Vice President and Chief Financial Officer[159] - The signing date for the report is July 31, 2025[159]