Hycroft Mining (HYMC) Annual Report, 2021 Highlights, and Events

Hycroft Mining HYMC
Hycroft Mining (HYMC)

Below you’re going to find Hycroft Mining’s annual report from their press release.

I wanted to publish this report for shareholder invested in HYMC stock.

Hycroft mining released their year ending report for 2021 and also briefly touch on AMC’s acquisition.

If you’d like me to publish more information on Hycroft Mining (HYMC) in the future, then be sure to leave a comment below at the end of the article.

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2021 Financial Highlights

These highlights are described by Hycroft Mining files annual report on form 10-K for the year ended December 31, 2021.

Via. NASDAQ and Hycroft Mining (HYMC) press release.

Production: 

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 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

HYMC AMC
Hycroft Mining AMC

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 HYMC

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.

HYMC’s earnings call date for the first quarter of 2022 will be released on 5/16.

Additional information is available at hycroftmining.com.

Read: Should you buy HYMC stock or is it a pass?

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1 Comment

  1. Frank Nez

    Let’s start a discussion!

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