WINNEMUCCA, Nev., March 31, 2022 /PRNewswire/ -- Hycroft Mining
Holding Corporation (Nasdaq: HYMC) ("Hycroft" or the "Company"), a
development company operating the Hycroft Mine in the prolific
mining region of Northern Nevada,
filed its Form 10-K for the year ended December 31, 2021.
2021 Financial Highlights
- Production: As previously announced, gold
production for the year ended December 31,
2021, of 57,668 ounces exceeded the high end of the guidance
range as the process team continued to improve equipment, process
control and costs. Silver production of 355,967 ounces was
approximately 20% below guidance due to slower than planned leach
kinetics. Processing of ore on leach pads is currently planned to
proceed through the second quarter of 2022.
- Sales: Sales for the year ended December 31, 2021 were 56,045 ounces of gold
(average realized price of $1,794 per
ounce) and 397,546 ounces of silver (average realized price of
$25.66 per ounce).
- Unrestricted Cash Position: The Company ended
2021 with $12.3 million of cash on
hand and was in compliance with debt covenants
- Net Loss and Cash Used: Due to high operating
costs relative to the associated gold equivalent production and
sales volumes and ceasing of mining operations in November, 2021,
the Company recorded a net loss of $88.6
million for the year ended December
31, 2022. Due to the losses from operations, the Company
ceased mining activities and is now focused on completing its
technical studies and exploration to develop the Hycroft mine
through a milling and pressure oxidation process. The $44.0 million reduction in unrestricted cash
since the beginning of the year was primarily due to cash used for
operating activities of $37.0
million, cash used for investing activities of $6.9 million, cash used for financing activities
of $5.5 million, and a $5.4 million reduction in restricted cash.
Subsequent Events:
- The Company completed several financing transactions to
significantly strengthen its balance sheet, including:
-
- Private placement: The Company completed a
private placement with Eric Sprott and AMC
Theaters for total gross proceeds of $55.9 million.
- At-the-market program: The Company
completed an at-the-market equity offering program for gross
proceeds of $138.6 million, before
deduction of fees and costs.
- Reduced debt service requirements and extended debt
maturities two years into 2027: The Company amended
and restated its first lien credit agreement such that no further
principal payments are required until May
31, 2027 and extended the re-payment of its subordinated
debt to December 1, 2027 with
continuing paid-in-kind interest.
- Nasdaq trading: With the recent improvement in
the stock price, the Company has regained compliance with the
Nasdaq minimum bid price for continued listing.
About Hycroft Mining Holding Corporation
Hycroft Mining Holding Corporation is a U.S.-based gold and
silver development company that owns the Hycroft Mine, a
well-established, world-class asset with a significant mineral
endowment in Northern Nevada, a
tier one mining jurisdiction. The company is focused on
transforming Hycroft into a large-scale mining operation by
developing a process for its large sulfide gold and silver mineral
resources on site. Additional information is available at
hycroftmining.com.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within
the meaning of Section 27A of the United States Securities Act of
1933, as amended, Section 21E of the Unites States Securities
Exchange Act of 1934, as amended, or the Unites States Private
Securities Litigation Reform Act of 1995. All statements, other
than statements of historical facts, included herein and public
statements by our officers or representatives, that address
activities, events or developments that our management expects or
anticipates will or may occur in the future, are forward-looking
statements, including but not limited to such things as future
business strategy, plans and goals, competitive strengths and
expansion and growth of our business. The words "estimate", "plan",
"anticipate", "expect", "intend", "believe" "target", "budget",
"may", "can", "will", "would", "could", "should", "seeks", or
"scheduled to" and similar words or expressions, or negatives of
these terms or other variations of these terms or comparable
language or any discussion of strategy or intention identify
forward-looking statements. Forward-looking statements address
activities, events or developments that the Company expects or
anticipates will or may occur in the future and are based on
current expectations and assumptions. These risks may include the
following and the occurrence of one or more of the events or
circumstances alone or in combination with other events or
circumstances, may have a material adverse effect on the Company's
business, cash flows, financial condition and results of
operations. Please see our "Risk Factors" set forth in our Annual
Report on Form 10-K for the year ended December 31, 2021, and other reports filed with
the SEC for more information about these and other risks. You are
cautioned against attributing undue certainty to forward-looking
statements. Although we have attempted to identify important
factors that could cause actual results to differ materially from
those described in forward-looking statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended. Although these forward-looking statements were based on
assumptions that the Company believes are reasonable when made, you
are cautioned that forward-looking statements are not guarantees of
future performance and that actual results, performance or
achievements may differ materially from those made in or suggested
by the forward-looking statements contained in this news release.
In addition, even if our results, performance, or achievements are
consistent with the forward-looking statements contained in this
news release, those results, performance or achievements may not be
indicative of results, performance or achievements in subsequent
periods. Given these risks and uncertainties, you are cautioned not
to place undue reliance on these forward-looking statements. Any
forward-looking statements made in this news release speak only as
of the date of those statements, and we undertake no obligation to
update those statements or to publicly announce the results of any
revisions to any of those statements to reflect future events or
developments.
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SOURCE Hycroft Mining Holding Corporation