Slide 1: Hycroft Restart and Future Growth
Hycroft Restart and FutureJulyGrowth 2020 | Sprott 00
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements Financial Projections This presentation contains financial forecasts regarding certain financial metrics of the Company. The independent auditors of the Company have not audited, reviewed, compiled, or performed any procedures with respect to the
Slide 3: Key Investment Highlights
Key Investment Highlights One of the World’s Largest Precious Metals Deposits 1 18 million ounces of gold equivalent reserves (1) 31 million ounces of gold equivalent resources(1,2) Restart Under Way, Weekly Gold Sales; Ramp Up Underway Producing gold since August 2019 2 Averaged over 500,000 tons p
Slide 4: Hycroft Mine Overview
Hycroft Mine Overview Existing Operation & Deposit Location Overview ⚫ Hycroft 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 resource of ~
Slide 5: 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) July 31, 2020 Feasibility Study ⚫ Management has developed a “capital light” restart plan that is Locat
Slide 6: Transaction Overview
Transaction Overview All figures in US$ Equity Ownership NAV Build-Up Ownership (in millions) Components Build-Up Primary Owners of Hycroft Mining Corporation 47.9 Hycroft NPV1 $1,994 Pro Forma Debt Former SPAC Owners 1.1 SRL Debt ($70) Other Owners of Hycroft Mining Corporation 0.5 New Note ($80) C
Slide 7: Peer Group P/NAV Multiples
Peer Group P/NAV Multiples Junior Producer Trading P/NAV Multiples SSR Mining 1.49 Low P/NAV multiple could represent Wesdome 1.46 early opportunity to participate in potential rerating as mining and ore Pretium 1.42 processing ramp up to feasibility production levels with new leach pad Golden Star
Slide 8: One of the World’s Largest Precious Metals Deposits
One of the World’s Largest Precious Metals Deposits Substantial Scale Reserves and Resources(1,2) Tons Grades Contained Ounces (000s) ⚫ Hycroft ranks among the 25 largest gold deposits in the Category (000s) Au Ag Au Ag Au Eq world based on resource size, and the second largest in the U.S. Proven &
Slide 9: Relative Operational Performance
Relative Operational Performance All figures in US$ Estimated Average Annual Production1 (koz Au Eq.) 444 444 429 429 379 379 366 Median Median 2020E 2020E Production: Production: 244 244 koz Au koz Au Eq. Eq. 366 362 362 353 353 288 288 288 280 280 208 208 189 189 185 185 119 119 97 97 84 84 77 77
Slide 10: Financial Details (Feasibility Study)
Financial Details (Feasibility Study) Hycroft Mine Overview (1) Feasibility Study Sensitivities (1) 20% 10% Base 10% 20% Years 1-5 Years 1-10 LOM Decrease Decrease Case Increase Increase Production AuEq (k oz) 908 2,812 12,433 Mining Cost $2.41B $2.25B $1.91B $1.75B By-product cash costs (3) ($/oz)
Slide 11: Free Cash Flow (Feasibility Study)
Free Cash Flow (Feasibility Study) Cumulative Free Cash Flow ($ mm) Cumulative FCF ($ mm) LOM FCF of Minimal upfront capital investment $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 $293 Cumul
Slide 12: Capital-Light, Permitted Restart with Attractive Economics
Capital-Light, Permitted Restart with Attractive Economics Initial Capital Expenditure Plan(1) ($ 000's) Years 1-5 Year 1 Year 2 Year 3 Year 4 Year 5 Leach Pad & Pond Construction $ 50,831 $ 31,951 $ 18,425 $ 455 Mobile Equipment $ 312 $ 312 M3 Capital: General $ 4,595 $ 4,397 Primary Crushing $ 400
Slide 13: 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 14: 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 is crushed to P 80 of ½” Stockpile Fine Ore Stockpile Coarse Ore Stockpile Source: Hy
Slide 15: 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 16: Growth Projects
Growth Projects New Leach Pad Under Construction ⚫ New fully permitted leach pad under construction ⚫ To be built in stages to reduce up front capital ⚫ Stage 1 – 8.6 M square feet; 26.5 M ton capacity ⚫ Ultimate pad capacity - 550 M ton capacity ⚫ Progress to date: – All groundwork and underliner c
Slide 17: 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 18: Cautionary Note on Non-GAAP Financial Measures
Cautionary Note on Non-GAAP Financial Measures Non-GAAP Measure - EBITDA Earnings before interest, taxes and depreciation and amortization ("EBITDA") is a non-GAAP financial measure which excludes the following items from net earnings: (i) income tax expense; (ii) finance costs; (iii) finance income
Slide 19: Better Recoveries than Feasibility Study
Better Recoveries than Feasibility Study Brimstone, Vortex, lower Camel Testing Cell 1 Brimstone Recovery 90.00% Represents: 80.00% Feasibility • 81% of total reserve ore tons 70.00% • 81% of total reserve Gold ounces • 60.00% % Recovery 85% of total reserve Silver ounces 50.00% Recoveries: 40.00% •