Hycroft Mining Holding Corporation · NASDAQ:HYMC
Hycroft Mining — Investor Presentation (September 2022)
32 slides from Hycroft Mining's investor presentation, September 2022
Slide 1: Hycroft – Developing One of North America's Largest Precious Metal Deposits
NEW INVESTORS Eric Sprott & AMC Entertainment HYCROFT September 2022 D E V E LO 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
Slide 2: Disclaimer
DISCLAIMER Financial Projections This presentation contains financial forecasts regarding certain financial metrics of the Company. The independent auditor of the Company has not audited, reviewed, compiled, or performed any procedures with respect to the projections for the purpose of their inclusi
Slide 3: Highlights
HIGHLIGHTS One of the World’s Largest Strengthened Balance Sheet 〉 〉 Precious Metal Deposits GOLD 9.65 M oz Measured & Indicated + 5.0 M oz Inferred1 ~$194 Million • $56 M Private Placement – Eric Sprott SILVER 456.0 M oz Measured & Indicated + 150.4 M oz Inferred1 Gross Proceeds and AMC Entertainme
Slide 4: Highlights
HIGHLIGHTS NEVADA RANKS AT THE TOP OF THE SUBSTANTIAL ONSITE 〉 Best Places In the World For Mining 〉 • Three-stage Crushing System • Two Merrill-Crowe Process Plants • One active Refinery PERMITTED FOR COMMERCIAL OPERATIONS • Power line and water supply infrastructure 〉 Heap Leach and Milling • Larg
Slide 5: 2022 Initial Drill Results – Sept. 13, 2022
2022 Initial Drill Results – Sept. 13, 2022 〉 Multiple zones of higher-grade silver encountered 〉 Higher gold and silver grades than resource average grade 〉 Higher grade zones more continuous than previously interpreted • Hole 22R-5650 returned 82 meters of 1.03 g/t gold and 30.38 g/t silver o Incl
Slide 6: Excellence in Safety
EXCELLENCE IN SAFETY • 2022 YTD TRIFR 0.0 • 12 Month TRIFR 0.27 • Mining National TRIFR 1.7 • 304 Days Since Last Reportable Injury • 636 Days Since Last Lost Time TRIFR = Total Recordable Injury Frequency Rate 6
Slide 7: Gold & Silver Jurisdiction
GOLD & SILVER JURISDICTION N E VA DA 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 2% of land position 7
Slide 8: Increasing Silver Demand
INCREASING SILVER DEMAND TRENDS 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 (Photovoltaics) Demand Silver Record photovoltaic installations are expected to lift silver demand to all-time high
Slide 9: Automotive Applications for Silver
AUTOMOTIVE APPLICATIONS FOR SILVER TRENDS SILVER TOUCHES VIRTUALLY EVERY 52% OF NEW VEHICLE SALES WILL BE ASPECT OF VEHICLES. ELECTRIC BY 2030. SOURCE: S&P GLOBAL 9
Slide 10: Hycroft Achievements
HYCROFT ACHIEVEMENTS RECENT Achievements Opportunities Achieved a new safety record well below industry Identified higher-grade intercepts onsite and in close- average proximity to the known resource 2021 production Drilling returned higher grades than previously known 〉 Gold: 55,668 oz 〉 Silver: 35
Slide 11: 2022 Objectives
2022 OBJECTIVES LOOKING AHEAD Q1 Q2 – Q4 • CONTINUING MILL TECHNICAL STUDIES • LEACH PAD PRODUCTION 1H22: 10,924 OZ • CONTINUE PROCESSING ORE ON LEACH PADS • LEACH PAD PRODUCTION: 5,358 OZ GOLD GOLD AND 30,515 OZ SILVER • INITIATE EXPLORATION PROGRAM AND 16,861 OZ SILVER • PRIORITIZE TARGETS FOR 202
Slide 12: Mine Site
MINE SITE New Leach Prop ose Pad d Ra il Spur North Administratio Merrill- n, Warehouse, Crowe Br i m Maintenance ston BAY Merr e No ch s ill- Lea w rth CrusCrowe PaL Leac mst h hing e d Facil ity i BPra Lea d h id c e Pa lt on Fau GAP tral Cen CENTRAL BRIMSTONE lt Fau st Ea CAMEL VORTEX Main East-W
Slide 13: Proven Track Record of Success
PROVEN TRACK RECORD OF SUCCESS STRONG BOARD, MANAGEMENT & TECHNICAL TEAM WITH PROVEN TRACK RECORD OF DELIVERING SHAREHOLDER VALUE 13
Slide 14: Attractive Investment Entry Point
ATTRACTIVE INVESTMENT ENTRY POINT $1,800 $1,600 Novagold (50%) $1,400 $1,200 Market Cap ($ mm) Seabridge $1,000 Rupert Osisko Mining $800 HYCROFT CURRENTLY TRADES AT A SIGNIFICANT DISCOUNT TO OTHER LARGE-SCALE NORTH AMERICAN $600 PRECIOUS METALS DEVELOPERS Hycroft $400 Probe Metals Perpetua Wallbrid
Slide 15: Opportunity - Silver
OPPORTUNITY - SILVER S I Z E , S C A L E & E X PA N S I O N SILVER: ADDITIONAL MINERALIZATION BEYOND THE KNOWN RESOURCE BRIMSTONE VORTEX CENTRAL BAY 5.3 KILOMETERS / 3.3 MILES 15
Slide 16: Opportunity - Gold
OPPORTUNITY - GOLD S I Z E , S C A L E & E X PA N S I O N GOLD: ADDITIONAL MINERALIZATION BEYOND THE KNOWN RESOURCE BAY CENTRAL BRIMSTONE VORTEX 5.3 KILOMETERS / 3.3 MILES 16
Slide 17: Opportunity - Measured
OPPORTUNITY - MEASURED S I Z E , S C A L E & E X PA N S I O N GOLD + SILVER: THE PROJECT REMAINS OPEN IN ALL DIRECTIONS AND AT DEPTH Tighter drill spacing could expand known pits and mineralization opportunities. 17
Slide 18: Opportunity - Indicated
OPPORTUNITY - INDICATED S I Z E , S C A L E & E X PA N S I O N GOLD + SILVER: THE PROJECT REMAINS OPEN IN ALL DIRECTIONS AND AT DEPTH Tighter drill spacing could expand known pits and mineralization opportunities. 18
Slide 19: Opportunity - Inferred
OPPORTUNITY - INFERRED S I Z E , S C A L E & E X PA N S I O N GOLD + SILVER: THE PROJECT REMAINS OPEN IN ALL DIRECTIONS AND AT DEPTH Tighter drill spacing could expand known pits and mineralization opportunities. 19
Slide 20: Open in All Directions
OPEN IN ALL DIRECTIONS NORTH OPEN OPEN OPEN HYCROFT MINE2000 OBLIQUE Feet VIEW SOUTH (0.010 Au opt Grade Shell) VORTEX HIGH-GRADE SECTION 40700 NORTH Looking Northeast OPEN OPEN Open 20
Slide 21: 2022-2023 Exploration Program
2022-2023 EXPLORATION PROGRAM Generalized Low Sulfidation Deposit • Upper large low-grade mineralization. Hycroft • High-grade Au/Ag breccia zone. Hycroft • High-grade Au/Ag/Base Metal vein system Development Drilling • 125,000 ft (RC & Core) • Define high-grade intercepts • Convert inferred model b
Slide 22: Numerous Targets to Explore
NUMEROUS TARGETS TO EXPLORE S I Z E , S C A L E , & E X PA 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 MANHATTAN Rosebud Mine1 〉 Close proximity to the past- producing, high-
Slide 23: High-Grade Drilling
HIGH-GRADE DRILLING HIGH-GRADE SILVER VORTEX DEPOSIT DISCOVERED IN 2008, VORTEX DRILLING PRESENTING A UNIQUE OPPORTUNITY TO FURTHER EXPLORE FROM TO INTERVAL Grade Hole ID (meters) (meters) (meters) Au (g/t) Ag (g/t) AuEq (g/t) Au (opt) Ag (opt) AuEq (opt)) HD08-3632 122 136 14 0.28 822.00 11.238 0.0
Slide 24: High-Grade Drilling
HIGH-GRADE DRILLING SELECTED INTERCEPTS FROM THE 2021 DRILL PROGRAM AT VORTEX – A HIGH-GRADE SILVER DEPOSIT – ALSO DEMONSTRATED SOME OF THE HIGHEST-GRADE GOLD ENCOUNTERED AT HYCROFT. FROM TO INTERVAL Grade Hole ID (meters) (meters) (meters) Au (g/t) Ag (g/t) AuEq (g/t) Au (opt) Ag (opt) AuEq (opt))
Slide 25: Why Invest?
WHY INVEST ? ü One of the world’s largest gold and silver deposits in a Tier I Jurisdiction ü Significant upside potential (only 10% of the land position has been explored) ü Highly leveraged to gold and silver prices ü Permitted for both heap leach and milling operation ü Significant infrastructure
Slide 26: Capitalization and Major Supports
CAPITALIZATION AND MAJOR SUPPORTS Ownership Summary* Capital Structure Mudrick 24.4 mm 12.2% Share Price - HYMC1. (NASDAQ) $0.72 AMC Entertainment 23.4 mm 11.7% 52-Week High-Low $4.22 - $0.28 Eric Sprott 18.4 mm 9.2% Shares Outstanding2 196.8 mm Other/Retail 133.5 mm 66.9% Market Capitalization $144
Slide 27: Questions?
HYCROFT Questions ? WWW.HYCROFTMINING.COM
Slide 28: Appendix
HYCROFT Appendix WWW.HYCROFTMINING.COM
Slide 29: Mineral Resources
MINERAL RESOURCES Cutoff Grade Approximate Grades Sulfide Contained Ounces Classification Ktons $ Net of Process Cutoff, AuEq Sulfur (000) Au Ag Au oz/ton % Ag Mineral resources based on metal prices of oz/ton oz/ton Heap Leach Resource $1,800/troy oz Au and $23.00/troy oz Ag. Measured $0.01 0.003 9
Slide 30: Resource Estimation Parameters
RESOURCE ESTIMATION PARAMETERS Process costs: Assumptions: Comminution Per ton of feed to float plant $3.09 Unit of measure Value Flotation Per ton of feed to float plant $3.28 Gold price $/oz $1,800 Process (fixed costs) Per ton of feed to float plant $0.43 Silver price $/oz $23.00 Leach, CCD, Deto
Slide 31: Leadership
LEADERSHIP Highly experienced and motivated management team in place, led by: Diane Garrett Formerly with Romarco President & CEO Minerals, US Global Investors Stan Rideout Formerly with Romarco Executive Vice President & CFO Minerals, Phelps Dodge Corp. David Thomas Formerly with Romarco Executive
Slide 32: Board of Directors
BOARD OF DIRECTORS Formerly with Centerra Gold Inc., Stillwater Independent consultant; formerly with Cupric Stephen Lang Mining Company, Barrick Goldstrike, Rio Algom David Naccariti Canyon Capital, LLC, Phelps Dodge Corporation. Chairman, Director Ltd, Kinross Gold/Amax Gold, Santa Fe Pacific Dire
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