Hycroft Mining Holding Corporation · NASDAQ:HYMC
Hycroft Mining — Investor Presentation (June 2022)
28 slides from Hycroft Mining's investor presentation, June 2022
Slide 1: Developing One of North America's Largest Precious Metal Resources
NEW INVESTORS Eric Sprott & AMC Entertainment 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 R E S O U R C E S M AY - J U N E 2 0 2 2
Slide 2: Disclaimer
HYCROFT 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
Slide 3: Highlights
HYCROFT 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 Gross Proceeds and AMC Entertainment SILVER 456.0 M oz Measured & Indicated + 150.4 M oz
Slide 4: Highlights: Nevada and Onsite Infrastructure
HYCROFT HIGHLIGHTS NEVADA RANKS AT THE TOP OF THE SUBSTANTIAL ONSITE 〉 Best Places In the World For Mining 〉 Equipment and Infrastructure Three-stage crushing system Two Merrill-Crowe process facilities and one active refinery Power line and water supply infrastructure PERMITTED FOR COMMERCIAL OPERA
Slide 5: A Gold & Silver Rich Jurisdiction
N E VA DA A GOLD & SILVER RICH JURISDICTION 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 05
Slide 6: Increasing Silver Demand
TRENDS INCREASING SILVER DEMAND 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 7: Auto & EV Need Silver
TRENDS AUTO & EV NEED SILVER SILVER TOUCHES VIRTUALLY EVERY 52% OF NEW VEHICLE SALES WILL BE ASPECT OF VEHICLES. ELECTRIC BY 2030. SOURCE: S&P GLOBAL 07
Slide 8: Recent Achievements & Opportunities
RECENT ACHIEVEMENTS & OPPORTUNITIES Achievements Opportunities Achieved a new safety record well below industry Silver may have been under-estimated in the model average Identified higher-grade intercepts onsite and in close- 2021 production proximity to the known resource 〉 Gold: 55,668 oz Drilling
Slide 9: 2022 Objectives
LOOKING AHEAD 2022 OBJECTIVES Q1 Q2 – Q4 • CONTINUING MILL TECHNICAL STUDIES • 2021 DRILL PROGRAM RESULTS CONTINUE • CONTINUE PROCESSING ORE ON LEACH PADS • LEACH PAD PRODUCTION: 5,358 OZ GOLD • PRIORITIZE TARGETS FOR 2022 DRILL • INITIATE EXPLORATION PROGRAM AND 16,861 OZ SILVER PROGRAM TO LEVERAGE
Slide 10: Significant Mine Site & Facilities
SIGNIFICANT MINE SITE & FACILITIES New Leach Prop Pad osed Rail Spur North Merrill- Crowe Administration, Warehouse, Merr mstone BAY Maintenance Br i Lea Lew Pad ne ill-Cr owe No Pad rth ch Crus hing Le rim h P Facil ac ity is h s to d B Le ac lt a Fau GAP tral Cen CENTRAL BRIMSTONE lt Fau st Ea CAM
Slide 11: Proven Track Record of Success
OUR TEAM PROVEN TRACK RECORD OF SUCCESS STRONG BOARD, MANAGEMENT & TECHNICAL TEAM WITH PROVEN TRACK RECORD OF DELIVERING SHAREHOLDER VALUE 11
Slide 12: Attractive Investment Entry Point
AT T R A C T I V E 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 $600 SIGNIFICANT DISCOUNT TO OTHER LARGE- SCALE NORTH AMERICAN PRECIOUS Hycroft $400 METALS DEVELOPERS Probe Metals Perpetua
Slide 13: Opportunity: Silver Mineralization Beyond Known Resource
S I Z E , S C A L E & E X PA N S I O N OPPORTUNITY SILVER: ADDITIONAL MINERALIZATION BEYOND THE KNOWN RESOURCE BRIMSTONE VORTEX CENTRAL BAY EIFFEL TOWER 5.3 KILOMETERS/3.3 MILES 13
Slide 14: Opportunity: Gold Mineralization Beyond Known Resource
S I Z E , S C A L E & E X PA N S I O N OPPORTUNITY GOLD: ADDITIONAL MINERALIZATION BEYOND THE KNOWN RESOURCE BRIMSTONE VORTEX CENTRAL BAY EIFFEL TOWER 5.3 KILOMETERS/3.3 MILES 14
Slide 15: Gold + Silver: Open in All Directions and at Depth
S I Z E , S C A L E & E X PA N S I O N OPPORTUNITY GOLD + SILVER: THE PROJECT REMAINS OPEN IN ALL DIRECTIONS AND AT DEPTH Tighter drill spacing could expand known pits and mineralization opportunities. 15
Slide 16: Gold + Silver: Open in All Directions and at Depth
S I Z E , S C A L E & E X PA N S I O N OPPORTUNITY GOLD + SILVER: THE PROJECT REMAINS OPEN IN ALL DIRECTIONS AND AT DEPTH Tighter drill spacing could expand known pits and mineralization opportunities. 16
Slide 17: Gold + Silver: Open in All Directions and at Depth
S I Z E , S C A L E & E X PA N S I O N OPPORTUNITY 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: Mineralization Remains Open in All Directions
M I N E R A L I Z AT I O N R E M A I N S OPEN IN ALL DIRECTIONS NORTH OPEN OPEN OPEN 2000 Feet SOUTH VORTEX HIGH-GRADE SECTION 40700 NORTH OPEN HYCROFT MINE OBLIQUE VIEW (0.010 Au opt Grade Shell) OPEN Open 18 Looking Northeast 18
Slide 19: Numerous Targets to Explore
S I Z E , S C A L E , & E X PA N S I O N NUMEROUS TARGETS TO EXPLORE Land Size Hycroft property is larger than Manhattan with numerous exploration targets Land Position Significant land position with only 2% that has been explored MANHATTAN Rosebud Mine1 〉 Close proximity to the past- producing, hig
Slide 20: Vortex Drilling: High-Grade Drilling
VORTEX DRILLING HIGH-GRADE DRILLING HIGH-GRADE SILVER VORTEX DEPOSIT DISCOVERED IN 2008, PRESENTING A UNIQUE OPPORTUNITY TO FURTHER EXPLORE FROM TO INTERVAL Grade Hole ID AuEq (meters) (meters) (meters) Au (g/t) Ag (g/t) AuEq (g/t) Au (opt) Ag (opt) (opt) HD08-3632 122 136 14 0.28 822.00 11.238 0.00
Slide 21: Vortex Drilling: High-Grade Drilling
VORTEX 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. 21
Slide 22: Capitalization and Major Supports
HYCROFT CAPITALIZATION AND MAJOR SUPPORTS Ownership Summary* Capital Structure Mudrick 24.4 mm 12.4% Share Price - HYMC1 $1.34 Eric Sprott 23.4 mm 11.9% 52-Week High-Low $4.22 - $0.28 AMC Entertainment 23.4 mm 11.9% Shares Outstanding2 196.8 mm Other/Retail 125.6 mm 63.8% Market Capitalization $262
Slide 23: Questions?
“QUESTIONS?
Slide 24: Appendix
APPENDIX
Slide 25: Cautionary Note to U.S. Investors Regarding Mineral Resources
HYCROFT CAUTIONARY NOTE U.S. INVESTORS REGARDING MINERAL RESOURCES The mineral resource estimates included or referenced herein, including in the 2022 Hycroft Technical Report Summary, have been prepared in accordance with the requirements of the Property Disclosures for Mining Registrants (the “Mod
Slide 26: Leadership and Technical
HYCROFT LEADERSHIP AND TECHNICAL Highly experienced and motivated management team in place, led by: On-site technical team is supplemented with industry leading consultants in metallurgy, mine operations and processing, Diane Garrett Formerly with Romarco Minerals, including: President & CEO US Glob
Slide 27: Board of Directors
HYCROFT 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 Paci
Slide 28: Economic Parameters Used for Resource Estimation
E C O N O M I C PA R A M E T E R S U S E D F O R RESOURCE ESTIMATION Assumptions: Process costs: Unit of measure Value Comminution Per ton of feed to float plant $3.09 Gold price $/oz $1,800 Flotation Per ton of feed to float plant $3.28 Silver price $/oz $23.00 Process (fixed costs) Per ton of feed