Hycroft Mining Holding Corporation · NASDAQ:HYMC
Hycroft Mining — SPAC Merger (May 2020)
29 slides from Hycroft Mining's SPAC merger presentation, May 2020
Slide 1: Mudrick Capital Acquisition Corporation & Hycroft Mining Corporation
Mudrick Capital Acquisition Corporation & Hycroft Mining Corporation May 2020 00
Slide 2: Important Information
Important Information This presentation (the “Presentation”) has been prepared solely for, and is being delivered on a confidential basis to, persons considering a possible business relationship with Hycroft Mining Corporation (“Hycroft” or the “Company”) in connection with the proposed business com
Slide 3: Important Information (cntd.)
Important Information (cntd.) No Representations or Warranties This presentation does not purport to contain all of the information that may be required to evaluate a possible transaction. No representation or warranty, express or implied, is or will be given by Mudrick or Hycroft or any of their re
Slide 4: Executives
Executives Hycroft Management Over 28 years of management, operations, Over 20 years of management, marketing engineering, and construction experience and finance experience at globally focused through various senior positions at globally mid-tier and senior mining and oil & gas focused mid-tier
Slide 5: Hycroft Mine Overview
Hycroft Mine Overview Existing Operation & Deposit Location Overview Hycroft Mining is a production stage gold and silver mining company operating the Hycroft Mine Open pit heap leach mining operation located 54 miles west of Winnemucca, Nevada One of the world’s largest deposits with a resour
Slide 6: Hycroft Mine Overview (cont’d)
Hycroft Mine Overview (cont’d) Hycroft Mine Overview Hycroft Project Feasibility Study Highlights(1) Senior-scale asset with expected average annual production of approximately 366 koz Au Eq.(1) August 2019 Feasibility Study (Preliminary Draft) Management has developed a “capital light” restart
Slide 7: Key Investment Highlights
Key Investment Highlights One of the World’s Largest Precious Metals Deposits 1 18 million ounces of gold equivalent reserves 31 million ounces of gold equivalent resources Restart Under Way, Weekly Gold Sales; Ramp Up Underway 2 Producing gold since August 2019 Averaged over 500,000 tons placed on
Slide 8: One of the World’s Largest Precious Metals Deposits
One of the World’s Largest Precious Metals Deposits Substantial Scale Reserves and Resources(1,2) Hycroft ranks among the 25 largest gold deposits in the Tons Grades Contained Ounces (000s) Category (000s) Au Ag Au Ag Au Eq world based on resource size, and the second largest in the U.S. Proven &
Slide 9: Relative Operational Performance
Relative Operational Performance All figures in US$ Estimated Average Annual Production (koz Au Eq.) 694 Median 2020E Production: 282 koz Au Eq. 444 429 379 366 362 353 285 280 189 185 119 97 84 45 Equinox Torex SSR Mining Resolute Hycroft New Gold Pretium Argonaut Perseus Victoria Golden Galiano We
Slide 10: Financing Overview
Financing Overview All figures in US$ Sources Uses Funding from the SPAC / PIPE in excess of $10 $10 $110 mm: first $10 mm held on balance sheet, mm mm additional proceeds repurchase shares $13 Transaction mm Costs Proceeds to $85 ramp-up mine New External Ramp-Up mm Equity $65 (Projects and ope
Slide 11: Value Proposition
Value Proposition All figures in US$ Key Metrics Junior Producer Trading P/NAV Multiples Wesdome 1.04x Share Price Implied $10.00 / share Pretium 1.03x SSR Mining 1.01x Equinox 0.75x Purchase Multiple Galiano Implied 0.73x 0.28x(1) Resolute 0.71x Torex 0.65x Med. Junior Perseus 0.65x Multiple 0.65x(
Slide 12: Transaction Overview – No Redemptions
Transaction Overview – No Redemptions All figures in US$ Pro Forma Equity Ownership(1) NAV Build-Up Total Promote Hycroft Promote Components Build-Up 12% 4% ($ mm) SPAC Hycroft NPV (2) $1,994 Promote 8% Pro Forma Debt: Total External SRL Debt ($70) Funding SPAC 21% 14% New Note ($80) Cash $65 (3) Mu
Slide 13: Transaction Overview – Backstopped
Transaction Overview – Backstopped All figures in US$ Pro Forma Equity Ownership(1) NAV Build-Up Total External Mudrick Fwd. SPAC Promote Funding Purch. SPAC 5% Total Promote Components Build-Up 9% 5% 0% 12% ($ mm) PIPE Hycroft (2) 4% Hycroft NPV $1,994 Promote Additional Shares Pro Forma Debt: 7% 1
Slide 14: Better Recoveries than Feasibility Study
Better Recoveries than Feasibility Study Brimstone, Vortex, lower Camel Testing Cell 1 Brimstone Recovery Represents: 90.00% • 81% of total reserve ore tons 80.00% Feasibility • 81% of total reserve Gold ounces 70.00% • 85% of total reserve Silver ounces 60.00% % Recovery 50.00% Recoveries: • 82% an
Slide 15: Better Recoveries than Feasibility Study (cont’d)
Better Recoveries than Feasibility Study (cont’d) Central, Cut 5 Cell 2 Central Recovery 100.00% Represents: 90.00% • 19% of total reserve ore tons 80.00% Feasibility • 18% of total reserve Gold ounces 70.00% • 14% of total reserve Silver ounces % Recovery 60.00% Recoveries: 50.00% • 95% and 91% vs
Slide 16: Financial Details (Feasibility Study)
Financial Details (Feasibility Study) Hycroft Mine Overview (1) Feasibility Study Sensitivities (1) Years 1-5 Years 1-10 LOM 20% 10% Base 10% 20% Production AuEq (koz) 908 2,812 12,433 Decrease Decrease Case Increase Increase (3) ($ / oz) $775 $626 $472 Mining Cost $2.41B $2.24B $1.91B $1.74B By-Pro
Slide 17: Production Schedule (Feasibility Study)
Production Schedule (Feasibility Study) Au Production (koz Au) Ag Production (koz Au Eq.) Average Production (koz Au Eq.) 527 519 467 451 160 215 400 378 376 199 362 348 186 324 111 143 312 293 273 110 170 135 111 104 77 122 198 35 359 312 189 267 95 238 230 265 268 227 233 196 201 25 163 202 70 202
Slide 18: Free Cash Flow (Feasibility Study)
Free Cash Flow (Feasibility Study) Cumulative LOM FCF of Minimal upfront capital investment Free Cash Flow ($ mm) Cumulative FCF ($ mm) $5.1$5,071 bn required for sulfide leach operations, $5,200 with significant production levels and $348 free cash flow generation $4,550 1st Full Year of $293 Stead
Slide 19: Ore Processing Commencing; Restart Completed
Ore Processing Commencing; Restart Completed Leach pads required for ore processing are constructed Crusher rebuild and commissioning completed Mobile equipment fleet restarted and operating Monthly Start-up Production Schedule – Ore Placed on Leach Pads Actual Ore Placed (kt) Planned Ore Placed (kt
Slide 20: Mining
Mining • Currently operating with owned fleet of six 200-ton haul trucks, two shovels, two loaders, and support equipment • Supplemented with contractor fleet of one shovel, seven 240-ton haul trucks and one loader • 24-hour mining operations • Recently commenced active in-pit drill and blast Source
Slide 21: Processing
Processing The secondary and tertiary crushers were recommissioned and placed online in March 2019 The primary crusher was reconditioned and brought into operation in late March 2019 Fine Ore Sulfide material began being fed through the crushing Stockpile system on start-up Fine Ore Stockpile
Slide 22: Improved Heap Leach Recoveries Using Pre-Oxidation
Improved Heap Leach Recoveries Using Pre-Oxidation 1 2 3 1 Soda Ash added to the ore prior to the primary crusher to create an environment (pH) conducive to the oxidation of Transition and Sulfide ore 2 Soda Ash solution added on a regular basis to Sulfide ore over the 60 to 120 day pre-oxidation pe
Slide 23: Oxidation Control
Oxidation Control Control of the oxidation process starts at the crusher; reagent dosing of material headed into the crusher using head assay data is the most important step in the process The monitoring system for the progress of the oxidation process continues to be refined. The instruments an
Slide 24: Contingency Controls
Contingency Controls In occasions where solution-based monitoring of a panel is challenging, alternative methods are available and a standard practice to ensure goals are met Each panel has a lab column built from the same bulk head sample run several weeks ahead of the pad. Lab columns are easi
Slide 25: Pad Construction and Loading
Pad Construction and Loading Test Pads 1 to 3 finalized Produced gold from pads 4 to 8; second lift of 7 and 5 to produce in 2020 Pad 9 to produce in 2020 New leach pad construction in 2020 has begun Source: Hycroft Mining Management 24 24
Slide 26: Capital-Light, Permitted Restart with Attractive Economics
Capital-Light, Permitted Restart with Attractive Economics Significant Milestones Initial 5-year Capex Summary(1) All substantial permits and rights necessary for re-start have been Remainder, received 10% Reagents, Leach Pads, Updated feasibility study 8% 23% Constructed initial leach pad Rai
Slide 27: Significant Infrastructure on Site
Significant Infrastructure on Site Significant Equipment and Infrastructure on Capital Spent to Date ($ mm) Site Electrical Power & Distribution Equipment $6 Concentrate Thickening Equipment Regrind Mill Since 2011, more than $400 mm already spent in anticipation of mine Motors and Variable Speed
Slide 28: Cautionary Note to U.S. Investors Regarding Reserves and Resources
Cautionary Note to U.S. Investors Regarding Reserves and Resources The Mineral Resource and Mineral Reserve estimates contained in this presentation have been prepared in accordance with the requirements of the Modernization of Property Disclosures for Mining Registrants (the “New Mining Rules”) set
Slide 29: Cautionary Note on Non-GAAP Financial Measures
Cautionary Note on Non-GAAP Financial Measures This Presentation has not been prepared in accordance with, and does not contain all of the information that is required by, the rules and regulations of the SEC. Certain financial measures, including AISC, By-Product Cash Costs and Free Cash Flow and t