Hycroft Mining Holding Corporation · NASDAQ:HYMC
Hycroft Mining — Investor Presentation (March 2023)
32 slides from Hycroft Mining's investor presentation, Mar 29, 2023
Slide 1: Developing One of North America's Largest Precious Metal Deposits
HYCROFT D E V E L O P I N G O N E O F N O R T H A M E R I C A ’ S L A R G E S T P R E C I O U S M E TA L D E P O S I T S March 2023
Slide 2: Disclaimer
DISCLAIMER Financial Projections This presentation contains financial forecasts regarding certain financial metrics of the Company. These projections should not be relied upon as being necessarily indicative of future results. The independent auditor of the Company has not audited, reviewed, compile
Slide 3: Highlights: One of the World's Largest Precious Metal Deposits
HIGHLIGHTS One of the World’s Largest Precious Metal Deposits GOLD 10.6 M oz Measured & Indicated + 3.4 M oz Inferred1 SILVER 361.0 M oz Measured & Indicated + 96.0 M oz Inferred1 GOLD Eq 15.2 M oz Measured & Indicated + 4.6 M oz Inferred1 Strengthened Balance Sheet Cash: ~$142 Million $34 Million r
Slide 4: Highlights: Nevada, permitted with substantial onsite infrastructure
HIGHLIGHTS NEVADA RANKS AT THE TOP OF THE Best Places In the World For Mining PERMITTED FOR COMMERCIAL OPERATIONS Heap Leach and Milling SUBSTANTIAL ONSITE INFRASTUCTURE • Three-stage Crushing System • Two Merrill-Crowe Process Plants • One active Refinery • Power line and water supply infrastructur
Slide 5: Nevada: The Location
N E V A D A THE LOCATION Hycroft is a World-Class Deposit THE POSITION Property Positioned Between Historic, High-Grade Sleeper and Rosebud Gold Mines THE PROPERTY Large Under-Explored Property Position Current resource only 5% of land position GOLD & SILVER JURISDICTION 5
Slide 6: Excellence in Safety – 2022
6 EXCELLENCE IN SAFETY – 2022 • 2022 TRIFR 0.00 • 12 Month TRIFR 0.00 • Mining National TRIFR 2.017 • 464 Days Last Reportable Injury • 850 Days Since Last Lost Time • At 03/28/23: TRIFR = 0.00 TRIFR = Total Recordable Injury Frequency Rate
Slide 7: 2022 Achievements and 2023 Objectives
2022 Achievements 2023 Objectives • Phase 2 drilling o 5,000 meters – RC o 3,500 meters – Core o In-fill drilling targeting Years 1-5 of mine plan o Targets outside the known resource • Finalize metallurgical test work for POX process (sulfides) • Finalize flow sheet for milling operation • Finalize
Slide 8: Opportunity - Gold: Size, Scale & Expansion
OPPORTUNITY - GOLD S I Z E , S C A L E & E X P A N S I O N GOLD: ADDITIONAL MINERALIZATION BEYOND THE KNOWN RESOURCE VORTEXBRIMSTONECENTRALBAY 5.3 KILOMETERS / 3.3 MILES 8
Slide 9: Opportunity - Silver: Size, Scale & Expansion
OPPORTUNITY - SILVER S I Z E , S C A L E & E X P A N S I O N SILVER: ADDITIONAL MINERALIZATION BEYOND THE KNOWN RESOURCE VORTEXBRIMSTONECENTRAL BAY 5.3 KILOMETERS / 3.3 MILES 9
Slide 10: Size, Scale & Expansion
S I Z E , S C A L E & E X P A N S I O N Tighter drill spacing could expand known pits and mineralization opportunities. GOLD + SILVER: THE PROJECT REMAINS OPEN IN ALL DIRECTIONS AND AT DEPTH OPPORTUNITY TO EXPAND MINERALIZATION 10
Slide 11: 2022 Phase 1 Drill Program Objectives
2022 PHASE 1 DRILL PROGRAM OBJECTIVES Determine if higher-grade intercepts have continuity 〉 11 Improve Years 1-5 economics by identifying higher-grade material 〉 〉\ 〉 Convert waste to ore mineralization thereby improving project economics〉 Convert inferred material to measured & indicated categorie
Slide 12: 2022 Phase 1 Drill Program Results
2022 PHASE 1 DRILL PROGRAM RESULTS Higher gold and silver grades than average resource grade〉 〉 12 Higher grade zones more continuous than previously interpreted 〉 〉\ 〉 Converted waste to ore mineralization (Camel, Central) thereby improving project economics 〉 Added over 425,000 ounces of gold (M&I
Slide 13: 2022 Phase 1 Drill Program – Brimstone Highlights
2022 Phase 1 Drill Program – Brimstone Highlights 13 〉 1 See website for additional drill results FROM TO INTERVAL (meters) (meters) (meters) Au (g/t) Ag (g/t) Brimstone H22R-5650 0 82 82 1.03 30.38 including 21 24 3 1.20 163.51 H22R-5644 37 87 50 0.79 38.74 including 74 79 5 2.23 84.69 H22R-5645 27
Slide 14: Target Mineralization Expanded to the East
TARGET MINERALIZATION EXPANDED TO THE EAST 14
Slide 15: 2022 Phase 1 Drill Program – Vortex Highlights
2022 Phase 1 Drill Program – Vortex Highlights 15 〉 1 See website for additional drill results FROM TO INTERVAL (meters) (meters) (meters) Au (g/t) Ag (g/t) Vortex H22R-5670 158 175 17 0.74 11.20 267 360 93 0.70 55.94 including 299 328 29 1.57 98.88 including 340 343 3 0.31 163.50 H22R-5700 489 509
Slide 16: 2023 Phase 2 Drill Program Objectives
2023 Phase 2 Drill Program Objectives Drill new target identified 150m east of known resource in Phase 1〉 〉 16 Continue to drill at Vortex – remains open 〉 〉\ Drill high priority targets outside the known resource • 95% of Hycroft land position has not been explored 〉 Drill high priority targets ide
Slide 17: Numerous Targets to Explore
NUMEROUS TARGETS TO EXPLORE S I Z E , S C A L E , & E X P A N S I O N Land Size Hycroft property is larger than Manhattan with numerous exploration targets 〉 Land Position Significant land position - less than 10% has been explored Rosebud Mine1 Close proximity to the past- producing, high-grade Ros
Slide 18: 2023 Objectives: Looking Ahead
2023 OBJECTIVES Q1 • CONTINUE PFS • PHASE 2 DRILL PROGRAM Q2 – Q3 • PHASE 2 EXPLORATION DRILLING • 5,000 meters – RC • 3,500 meters - Core • FINALIZE METALLURGICAL TESTWORK • FINALIZE PROCESS FLOW SHEET • FINALIZE PFS Q4 – 1Q24 L O O K I N G A H E A D 18
Slide 19: Attractive Investment Entry Point
ATTRACTIVE INVESTMENT ENTRY POINT Source: BMO Capital Markets HYCROFT CURRENTLY TRADES AT A SIGNIFICANT DISCOUNT TO OTHER LARGE-SCALE NORTH AMERICAN PRECIOUS METALS DEVELOPERS 19 Study Prices: $1,900/oz Au | $24.50/oz Ag
Slide 20: Why Invest?
WHY INVEST ? 20 ✓ One of the world’s largest gold and silver deposits in a Tier I Jurisdiction ✓ Significant upside potential (only 5% of the land position has been explored) ✓ Highly leveraged to gold and silver prices ✓ Permitted for both heap leach and milling operation ✓ Significant infrastructu
Slide 21: Proven Track Record of Success
PROVEN TRACK RECORD OF SUCCESS STRONG BOARD, MANAGEMENT & TECHNICAL TEAM WITH PROVEN TRACK RECORD OF DELIVERING SHAREHOLDER VALUE 21
Slide 22: Capitalization and Major Supports
CAPITALIZATION AND MAJOR SUPPORTS Ownership Summary* AMC Entertainment 23.4 mm 11.7% Eric Sprott 18.4 mm 9.2 % Mudrick 3.9 mm 1.9 % Other/Retail 154.6 mm 77.2 % 1. As of close on March 24, 2023, unless otherwise noted. 2. Carrying value as of December 31, 2022, includes debt issuance costs and disco
Slide 23: Trends: Increasing Silver Demand
UNDER A NET ZERO EMISSIONS SCENARIO, PHOTOVALTAIC DEMAND IS EXPECTED TO MAKE UP OVER A THIRD OF TOTAL INDUSTRIAL SILVER DEMAND BY 2030. 1 NUMBER ONE Green Stimulus is a Key Driver Explosive growth of silver-intensive areas such as 5G and solar technology will drive demand. NUMBER TWO Solar (Photovol
Slide 24: Trends: Silver in Vehicles
T R E N D S SILVER TOUCHES VIRTUALLY EVERY ASPECT OF VEHICLES. 52% OF NEW VEHICLE SALES WILL BE ELECTRIC BY 2030. SOURCE: S&P GLOBAL AUTOMOTIVE APPLICATIONS FOR SILVER 24
Slide 25: Appendix
HYCROFT Appendix WWW.HYCROFTMINING.COM
Slide 26: Mineral Resources
26 MINERAL RESOURCES Mineral resources based on metal prices of $1,900/oz Au and $24.50/oz Ag. Cutoffs are income – process cost = NPR = NSR – Process OpEx. Numbers may not match exactly due to rounding. Mineral resources are contained within a computer-generated optimized pit. All units are metric.
Slide 27: Resource Estimation Parameters
RESOURCE ESTIMATION PARAMETERS Process costs: Comminution Per ton of feed to float plant $3.99 Flotation Per ton of feed to float plant $3.68 Process (fixed costs) Per ton of feed to float plant $0.51 Leach, CCD, Detox (fixed costs) Per ton of feed to float plant $0.43 Total Mill Cost Per ton of fee
Slide 28: Leadership
LEADERSHIP Highly experienced and motivated management team in place, led by: Formerly with Romarco Minerals, US Global Investors Formerly with Romarco Minerals, Phelps Dodge Corp. Diane Garrett President & CEO Stan Rideout Executive Vice President & CFO Ashlie Thorburn Vice President, Controller On
Slide 29: Board of Directors
BOARD OF DIRECTORS Stephen Lang Chairman, Director Formerly with Centerra Gold Inc., Stillwater Mining Company, Barrick Goldstrike, Rio Algom Ltd, Kinross Gold/Amax Gold, Santa Fe Pacific Gold. Diane Garrett Director President and CEO, Hycroft; formerly CEO, Romarco Minerals, US Global Investors. Se
Slide 30: 2022-2023 Exploration Program
2022-2023 EXPLORATION PROGRAM 30 Generalized Low Sulfidation Deposit • Upper large low-grade mineralization. • High-grade Au/Ag breccia zone. • High-grade Au/Ag/Base Metal vein system Development Drilling • 125,000 ft (RC & Core) • Define high-grade intercepts • Convert inferred model blocks to indi
Slide 31: Open in All Directions
OPEN IN ALL DIRECTIONS 2000 Feet Open HYCROFT MINE OBLIQUE VIEW (0.010 Au opt Grade Shell) Looking Northeast VORTEX HIGH-GRADE SECTION 40700 NORTH OPEN OPEN OPEN OPEN OPEN SOUTH NORTH 31
Slide 32: Mine Site
MINE SITE VORTEX BRIMSTONE CAMEL CENTRAL GAP BAY North Merrill- Crowe Administratio n, Warehouse, Maintenance Main East-West Railway (Union Pacific) State Route 49 (Jungo Road) New Leach Pad N 32
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