Hycroft Mining (HYMC) - 2025 Q2 - Quarterly Results

Company Overview & Investment Highlights Key Investment Highlights Hycroft holds significant gold and silver resources in a Tier 1 jurisdiction, advancing metallurgical studies with an experienced team - The company holds significant gold and silver resources in a Tier 1 jurisdiction, with new high-grade discoveries and exploration potential[6] - The company is advancing technical studies for its metallurgical operations[6] - As of June 30, 2025, the company's cash position is approximately $68.8 million[6] Gold and Silver Resources Overview Hycroft holds substantial M&I and Inferred gold and silver resources, detailed in its 2023 technical report Total Gold and Silver Resources (as of March 27, 2023) | Resource Type | Gold (g/t Au) | Silver (g/t Ag) | | :--- | :--- | :--- | | M&I Gold | 0.401 | - | | M&I Silver | - | 13.68 | | Inferred Gold | 0.389 | - | | Inferred Silver | - | 11.4 | Total Gold and Silver Equivalent Resources (as of March 27, 2023) | Resource Type | Gold Equivalent (g/t Au) | Silver Equivalent (g/t Ag) | | :--- | :--- | :--- | | M&I Gold Equivalent | 0.578 | - | | M&I Silver Equivalent | - | 44.85 | | Inferred Gold Equivalent | 0.533 | - | | Inferred Silver Equivalent | - | 41.33 | World-Class Asset and Team Summary The Hycroft mine is a world-class asset in a Tier 1 jurisdiction, with new high-grade silver discoveries and a proven team - The Hycroft mine is one of the world's largest gold and silver deposits, located in a Tier 1 jurisdiction, with development progressing well, significant infrastructure, and permits in place[13] - New high-grade silver discoveries provide significant new value drivers for the Hycroft mine[13] - As of June 30, 2025, the company holds approximately $68.8 million in unrestricted cash and $30 million in restricted cash[13] - Hycroft has maintained a 0.00 TRIFR and LTI for over two and a half years, demonstrating an award-winning safety record[13] Management Team Hycroft's management team comprises experienced professionals who successfully grew Romarco Minerals' market capitalization - The management team includes President and CEO Diane Garrett, Executive Vice President and CFO Stan Rideout, Senior Vice President and General Counsel Rebecca Jennings, Senior Vice President and General Manager David Thomas, Vice President of Exploration Alex Davidson, and Vice President of Finance and Treasurer Lily He[15][16] - Many management team members previously worked at Romarco Minerals, successfully increasing the company's market capitalization from $20 million to over $1 billion[16][17] 2025 Catalysts Key 2025 catalysts include metallurgical studies, a high-grade silver drill program, and PEA/PFS finalization - Q3 2025: Completion of final metallurgical recovery studies for POX and roasting[21][84] - Q4 2025: Initiation of a high-grade silver system drill program to establish resources and potential mine plans[21][84] - Q3 2025: Completion of PEA/PFS, including economic analysis and updated resources[21][84] - Q3 2025: Evaluation of heap leach restart to strengthen the balance sheet and reduce debt prior to mill operations[21][84] Our Approach & Strategy Hycroft's strategy focuses on operational excellence, high-grade discoveries, sulfide milling, and continuous exploration - Commitment to superior safety performance and a strong corporate culture focused on creating value for stakeholders[24] - Expanding recent high-grade discoveries and evaluating new potential underground opportunities[24] - Completing technical studies for sulfide milling operations and finalizing the roaster and POx process flow sheet[24] - Holding a 64,000-acre land package, with less than 10% currently explored, and continuous exploration to identify new targets beyond current resources[24] Accomplishments Hycroft achieved an industry-leading safety record, high-grade silver discoveries, improved flotation recoveries, and market presence - Possessing an award-winning safety culture with zero TRIFR for 30 months and over 1.3 million man-hours without a lost-time incident[27] - Drilled Hycroft's two best holes (H23R-5753 / H24D-6018) in 2023 and 2024, evaluating the potential for a high-grade starter mine[27] - Average flotation recoveries are 10% higher than previous models, with 89% gold recovery and 93% silver recovery[27] - Included in Solactive Silver Miners and SLV indices, establishing itself as a major silver miner, with Eric Sprott holding a 21% stake[27] Market Context: Why Invest in Precious Metals Why Invest in Silver? Silver, a dual precious and industrial metal, faces increasing demand from green energy with limited supply - Silver serves a dual role as both a precious and industrial metal (approximately 50/50)[11] - Growing demand for silver from green energy technologies, including solar and electric vehicles[11] - Limited silver supply struggles to meet increasing demand[11] Why Invest in Gold? Gold is a safe-haven asset, inflation hedge, and portfolio diversifier, with rising demand and central bank reserves - Gold is the original safe-haven asset, historically used as a store of value[11] - Gold serves as a hedge against inflation, a means of wealth preservation, and portfolio diversification[11] - Gold is a finite resource with increasing demand, and central bank reserves are rising[11] Hycroft Mine Asset & Operations Nevada: A Premier Mining Jurisdiction Nevada is a premier gold and silver producing state, hosting large mining projects with excellent infrastructure - Nevada is home to the largest mining projects in the contiguous 48 states and is a significant gold and silver producing state[31] - The state maintains a strong ethic for effective and successful reclamation projects and offers a favorable mining jurisdiction[31] - Nevada possesses excellent infrastructure and accessible labor/contractors, with mining being the second-largest industry after gaming[31] Hycroft: A World-Class Asset Details The Hycroft mine is one of the world's largest gold and silver deposits, with extensive infrastructure, permits, and vast unexplored land - The Hycroft mine is one of the world's largest gold and silver deposits, with a history of heap leach operations from the 1980s to 2021[35] - The mine site features extensive on-site infrastructure and has permits for both heap leach and mill operations[35] - The company holds a land package exceeding 64,000 acres (25,900 hectares), with less than 10% of the resource area explored, and resources remaining open in all directions and at depth[35][36] Current Infrastructure Hycroft's site has well-established infrastructure, including labs, crushing systems, Merrill-Crowe facility, and a new heap leach pad - On-site facilities include labs, administration, maintenance, truck shop, and warehouse[39] - Equipped with crusher and conveyor systems[39] - Features a Merrill-Crowe facility and a new permitted heap leach pad ready for ore loading[42] Focus for 2025 (Operational & Technical) Hycroft's 2025 focus includes operational excellence, technical reports, high-grade silver system expansion, and regional exploration - Operational Excellence: Dedicated to continuous improvement and efficient operations[44] - Technical Reports & Economics: Completing critical technical reports and evaluating project economics[44] - High-Grade Silver System Expansion: Focusing on the expansion of the high-grade silver system[44] - Regional Targets: Identifying and exploring new regional targets[44] ESG Commitment Hycroft integrates ESG principles, boasting an excellent safety record and addressing environmental, social, and governance factors - Hycroft maintains a 0.00 TRIFR and a record of over 1.3 million accident-free man-hours[46] - The company is committed to prioritizing ESG principles, including climate change, water management, diversity, health and safety, ethical standards, and board diversity[47] Exploration & Development Positive Metallurgical Results Hycroft achieved significant improvements in flotation gold and silver recoveries, with consistent and repeatable results Flotation Gold and Silver Recovery (%) | Metric | 2023 Technical Report Value | Latest Results | | :--- | :--- | :--- | | Gold Recovery | 82.1% | 89% | | Silver Recovery | 74.0% | 93% | - Gold and silver recoveries are statistically significantly higher, with statistically lower variability[52] - Results are consistent and repeatable across various lithologies, depths, zones, geochemistry, silicification, and grades, based on 219 variability samples[52] Bridge to Technical Report & Development Roadmap Hycroft is advancing its technical report and development roadmap, targeting Q4 2025 production through key studies - PFS/FS is underway, targeting completion and production by Q4 2025[54] - Key technical studies include bench-scale roaster testing, capital equipment selection, operating cost evaluation, site layout design, tailings storage facilities, flotation development, and bench-scale pressure oxidation (POx) testing[54] - Mineral resource updates, geotechnical evaluation, pad design, crushing and grinding studies, and variability studies are in progress[54] 2025 Drill Program The 2025 drill program targets high-grade silver system expansion in Vortex and Brimstone, with vast unexplored land - The 2025 drill program includes 14,500 meters of core drilling utilizing two core rigs[58] - The primary objective is to expand the high-grade silver systems in the Vortex and Brimstone areas[58] - The resource area comprises less than 10% of the company's land package, with resources remaining open in all directions and at depth[61] - The Brimstone and Vortex areas exhibit new high-grade gold and silver mineralization trends, offering flexibility for both open pit and underground mining[62] 2024 Drill Highlights & High-Grade Trends 2024 drilling revealed significant high-grade gold and silver mineralization in Brimstone and Vortex, confirming open trends - Hole HD24_6010 in the Brimstone area intersected 18.2 meters grading 1,987.35 g/t silver, including a large zone of visible silver at 0.9 meters @ 10,289 g/t silver and 0.3 meters @ 20,280 g/t silver[63] 2024 Brimstone Drill Highlights (Partial) | Hole ID | Interval (m) | Silver (g/t) | Gold (g/t) | Gold Equivalent (g/t) | | :--- | :--- | :--- | :--- | :--- | | H23R-5753 | 85.3 | 534.29 | 0.23 | 7.12 | | Including | 39.6 | 1,019.28 | 0.26 | 13.40 | | Also including | 4.6 | 4,974.00 | 0.56 | 64.70 | | H24D-6010 | 18.2 | 1,987.35 | 0.35 | 25.98 | | Including | 0.3 | 20,280.00 | 0.41 | 261.92 | | H24D-6018 | 21.2 | 2,359.68 | 0.38 | 30.81 | | Including | 0.2 | 80,017.00 | 1.62 | 1,033.42 | 2024 Vortex Drill Highlights (Partial) | Hole ID | Interval (m) | Silver (g/t) | Gold (g/t) | Gold Equivalent (g/t) | | :--- | :--- | :--- | :--- | :--- | | H23D-6001 | 124.4 | 102.6 | 0.95 | 2.3 | | Including | 0.3 | 4,170.0 | 0.03 | 53.8 | | H24D-6002 | 100.9 | 100.6 | 0.38 | 1.7 | | Including | 0.5 | 3,310.0 | 5.90 | 48.6 | | H24D-6005 | 222.4 | 32.4 | 0.45 | 0.9 | | Including | 0.3 | 6,260.0 | 0.06 | 80.8 | - High-grade mineralization in the Brimstone and Vortex areas remains open along strike and at depth, with grade shells based on a 10 ft x 10 ft x 10 ft block model[62][69][72] Conceptual Underground Access & Potential Extensions Hycroft explores conceptual underground access for high-grade mineralization, with strong trends extending east and northeast - Conceptual underground access for high-grade mineralization in the Brimstone and Vortex areas is being explored[74][75] - Extensive surface mapping, soil geochemistry, induced polarization geophysics, and high-resolution drone imagery all indicate additional strong mineralization trends to the east and northeast[79] - High-priority exploration targets beyond current known resources are being tested to enhance understanding of mineralization controls within the Hycroft system[82] Financials & Ownership Capitalization & Ownership Structure Hycroft's capitalization as of July 24, 2025, includes its stock price, market cap, cash, debt, and diverse ownership Capital Structure (as of July 24, 2025) | Metric | Amount | | :--- | :--- | | Stock Price (HYMC NASDAQ) | $3.69 | | 52-Week Range | $1.95 - $4.70 | | Shares Outstanding | 39.1 M | | Fully Diluted Shares | 52.8 M | | Market Cap | $144.5 M | | Avg Daily Trading Volume | 291 K | | Unrestricted Cash (as of June 30, 2025) | $68.8 M | | Debt (as of June 30, 2025) | $131 M | Ownership Summary | Shareholder | Holdings (M) | Percentage (%) | | :--- | :--- | :--- | | Eric Sprott | 8.2 | 21% | | AMC Entertainment | 2.4 | 6% | | Institutional Investors | 12.9 | 33% | | Insiders | 0.6 | 2% | | Retail Investors | 15.1 | 38% | Debt Overview Hycroft's debt comprises senior secured and subordinated notes, both maturing in 2027 with specified interest rates Debt Overview (as of June 30, 2025) | Debt Type | Holder | Face Value | Interest Rate | Maturity Date | | :--- | :--- | :--- | :--- | :--- | | Senior Secured | Sprott Resource Lending Corp. | $15 M | 10.55% | May 31, 2027 | | Subordinated Notes | Mudrick, Whitebox Advisors, Highbridge Capital, Aristeia Capital | $118 M | 10% | December 1, 2027 | - The Sprott loan includes a 1.5% royalty[101] - Payment-in-kind interest on subordinated debt accrues quarterly and capitalizes to principal, remaining non-cash until maturity[101] Governance & Appendix Board of Directors Hycroft's Board consists of experienced professionals, including the Chairman, CEO, and independent directors with diverse backgrounds - The Board Chairman is Thomas Weng, and the President and CEO is Diane Garrett[91] - Independent directors include David Naccarati, Sean Goodman (AMC Board Appointee), Stephen Lang, Marni Wieshofer, and Michael Harrison, with affiliations including Cupric Canyon Capital, AMC Entertainment, Centerra Gold Inc., Houlihan Lokey, and Sprott Streaming and Royalty Fund[91][92] Detailed Mineral Resources Hycroft's detailed mineral resources categorize heap leach and mill resources by Measured, Indicated, and Inferred Combined Mineral Resources (Heap Leach + Mill, as of March 27, 2023) | Category | Gold Equivalent Cut-off Grade (gm/t) | Thousand Tonnes | Gold (gm/tonne) | Silver (gm/tonne) | Sulfide (%) | Contained Gold (Thousand Oz) | Contained Silver (Thousand Oz) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Measured | 0.07 - 0.34 | 450,785 | 0.413 | 14.93 | 1.85 | 5,989 | 216,690 | | Total Indicated | 0.07 - 0.34 | 368,377 | 0.387 | 12.14 | 1.61 | 4,592 | 143,974 | | Total Measured+Indicated | 0.07 - 0.34 | 819,162 | 0.401 | 13.68 | 1.74 | 10,581 | 360,664 | | Total Inferred | 0.07 - 0.34 | 268,179 | 0.389 | 11.14 | 1.54 | 3,356 | 96,117 | - Mineral resources are based on a gold price of $1,900/ounce and a silver price of $24.50/ounce[95] - Cut-off grades represent revenue minus processing costs, all units are metric, and gold and silver grades are expressed in grams per tonne[95] Resource Estimation Parameters Resource estimation parameters include gold and silver prices, mining costs, and detailed mill and ROM heap leach recovery rates Resource Estimation Assumptions | Parameter | Unit | Value | | :--- | :--- | :--- | | Gold Price | $/ounce | $1,900 | | Silver Price | $/ounce | $24.50 | | Base Mining Cost | $/tonne material | $1.45 | Mill Process Recoveries | Recovery Type | % | | :--- | :--- | | Flotation Gold Recovery | 80.0% | | Flotation Silver Recovery | 80.0% | | Flotation Sulfide Recovery | 80.5% | | Total Mill Recovery | 76.0% | ROM Heap Leach Recoveries | Recovery Type | % | | :--- | :--- | | Gold (Oxide, Transition & Sulfide) | 75.0% | | Silver (Oxide, Transition & Sulfide) | 12.2% | Total Process Costs (Average Sulfide Sulfur) | Cost Type | $/tonne ore | | :--- | :--- | | Mill + Concentrate POX + G&A (Flotation) | $14.83 | | ROM Heap Leach + G&A (Oxide) | $3.19 | | ROM Heap Leach + G&A (Transition & Sulfide) | $3.59 | Metallurgical Results Program Details The metallurgical test program aimed to optimize flotation parameters for gold and silver recoveries using over 200 drill core samples - The program aimed to determine flotation operating parameters that maximize gold and silver recoveries, utilizing over 200 drill core samples representing multiple mining phases of the Hycroft ore body[99][100] - Flotation variables studied included grind size, grind time, pulp pH, reagent additions (e.g., xanthate, lead nitrate, frother, sulfuric acid), conditioning time, and mass pull[100] - The sample set represented seven pits, four main alteration mineral assemblages, three minor vein characteristics, and a full range of gold, silver, and sulfide sulfur grades[100]