Hycroft Mining Holding Corporation · NASDAQ:HYMC
Hycroft Mining — Corporate Update (February 2022)
43 slides from Hycroft Mining's corporate update, Feb 22, 2022
Slide 1: Corporate Update February 2022
HYMC: Nasdaq ALIGNED TEAM DISCIPLINED DEVELOPMENT SHAREHOLDER FOCUS February 2022 Corporate Update HYMC: Nasdaq
Slide 2: Disclaimer
2HYMC: Nasdaq 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
Slide 3: Hycroft Overview
HYMC: Nasdaq Hycroft Overview
Slide 4: One of the World's Largest Precious Metals Deposits
4HYMC: Nasdaq One of the World’s Largest Precious Metals Deposits - Gold: 9.65 Million ozs M&I / 5.0 Million ozs Inferred1; - Silver: 456.0 Million ozs M&I / 150.4 Million ozs Inferred1; - Gold equivalent: 15.3 Million oz M&I / 6.9 Million ozs Inferred1 Strong Board, Management and Technical Team wi
Slide 5: Valuation vs. Peers
5HYMC: Nasdaq Source: BMO, Company Valuation vs. Peers $2,317 $1,271 $956 $787 $507 $286 $224 $214 $191 $170 $170 $162 $121 $0 $500 $1,000 $1,500 $2,000 $2,500 N o va go ld Se ab ri d ge O si sk o M in in g R u p er t R es o u rc es M ar at h o n G o ld A sc o t Li b er ty G o ld B el o S u n P ro b
Slide 6: Size, Scale and Opportunity
6HYMC: Nasdaq LOOKING EAST VORTEX BRIMSTONE OPEN O P EN Measured Indicated Inferred CAMEL OPEN Size, Scale and Opportunity OPEN CENTRAL Pit outline
Slide 7: Size, Scale and Opportunity
7HYMC: Nasdaq LOOKING EAST VORTEX BRIMSTONE OPEN O P EN Measured Indicated Inferred CAMEL OPEN Size, Scale and Opportunity OPEN Pit outline CENTRAL
Slide 8: Size, Scale and Opportunity
8HYMC: Nasdaq 8 .7 m ile s Hycroft land position is larger than Manhattan with numerous exploration targets Size, Scale and Opportunity
Slide 9: Hycroft Claim Map
9HYMC: Nasdaq Hycroft Claim Map • Large, unexplored land position • The Reserve Pit outline only encompasses 1,570 acres (~approx. 2%) of the claim package • The Hycroft resource covers an area of approx. 3 miles long (north to south) and 1.5 miles wide (east to west) within a land package of approx
Slide 10: 2021 Achievements
10HYMC: Nasdaq 2021 Achievements TRIFR = Total Reportable Incident Frequency Rate Initiated $10M drill program for metallurgical test work for the mill and pressure oxidation process Significant improvement in safety record with an 80% improvement in TRIFR year-over-year (3.24 to 0.64) • January imp
Slide 11: Mineral Resources (at February 18, 2022)
11HYMC: Nasdaq Mineral Resources (at February 18, 2022)1 Notes: • Mineral Resources and gold equivalent are based on metals prices of $1,800 per ounce of gold and $23.00 per ounce of silver. • Cutoffs are income – process costs = NPR = NSR-Process OPEX • Numbers may not match exactly due to rounding
Slide 12: Findings and Opportunities Identified
12HYMC: Nasdaq Findings and Opportunities Identified 1. Silver – Significant Valuation Upside Opportunity - Identified silver has been under-sampled at Hycroft; silver assays conducted only between 2010-2014 with notable quantities of silver - Significant portion of drill hole database does not incl
Slide 13: Silver Under-sampled in Model
13HYMC: Nasdaq Silver Under-sampled in Model North Oblique Plan View Long Section North South 0 100 200 300 400 500 600 Gold assays Silver assays Total assay intervals # o f A ss ay s in M o d e l ( 0 0 0 s) Fire Assays in Model
Slide 14: 2021 Drill Program Highlights
14HYMC: Nasdaq 2021 Drill Program Highlights • Higher grades have been encountered in several holes during the 2021 metallurgical drill campaign • Approx. 102 intercepts (1.5-meter intervals) averaged 4.1 g/t (0.13 opt) Au and 8.53 g/t (2.73 opt) Ag • Significant intercepts received to date from 202
Slide 15: Potential to Increase Resources in Model
15HYMC: Nasdaq W E LOOKING NORTH Potential to Increase Resources in Model1 Potential to convert material currently logged as waste to an ore classification Zones within the designed pits have insufficient drilling • Based on the geology and surrounding drill results, it is expected that material cur
Slide 16: Potential to Increase Resources in Model
16HYMC: Nasdaq LOOKING NORTH W E Potential to Increase Resources in Model
Slide 17: 2022: Milestones
17HYMC: Nasdaq 2022: Milestones Q1 Ongoing mill and POX technical study Continue processing ore on leach pads Q2 Ongoing metallurgical test work on material obtained during 2021 drill program Identify exploration targets for 2022 exploration program Continue processing ore on leach pads Q3 Finalize
Slide 18: Development Path: Next Steps
18HYMC: Nasdaq Development Path: Next Steps 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Receipt and analysis of all metallurgical results Receipt of all drilling results Identifying historical pulps and re-assay for silver Drill program to convert inferred and waste* Exploration targeting higher-grade targets
Slide 19: Upside Opportunities: High-grade Targets & Expansion Potential
HYMC: Nasdaq Upside Opportunities High-grade Targets & Expansion Potential
Slide 20: Nevada: Gold Rich Jurisdiction
20HYMC: Nasdaq Nevada: Gold Rich Jurisdiction Source: Hycroft Mining Management • Several neighboring world class deposits • Property position covers Sleeper-Rosebud high grade trend • Large under explored property position
Slide 21: Historical Drilling Timeline
21HYMC: Nasdaq Historical Drilling Timeline 2014-20212009 - 2014Prior to 2009 2021-Present • Drilling was focused on shallow oxide mineralization, primarily targeting gold • Very few have silver assay information • Robust drill campaign aimed at expanding the known Mineral Resource • Majority of hol
Slide 22: Rosebud Proximity to Hycroft
22HYMC: Nasdaq Rosebud Proximity to Hycroft East Highwall ROSEBUD PROPERTY • The past-producing, high-grade Rosebud Mine is surrounded by the Hycroft land position • Mining was conducted from 1997 through 2000 by the Rosebud Mining Company, and Newmont/Hecla JV, using underground mining methods • Op
Slide 23: Rosebud Mine History
23HYMC: Nasdaq Rosebud Mine History • 1994 – Hecla acquired Equinox and its 49% interest in Rosebud • 1995 – Hecla formed a 50:50 joint venture with Santa Fe Minerals • 1997 – Newmont acquired Santa Fe and their 50% interest in Rosebud • April 1997 – Rosebud underground high-grade operations began •
Slide 24: Hycroft Mine Oblique View
24HYMC: Nasdaq 24 Hycroft Mine Oblique View (0.010 Au opt Grade Shell) Looking Northeast Open Vortex High-grade Section 40700 North Open Open Open 2000 Feet Open Open South Mineralization Remains Open In Several Directions
Slide 25: High-grade Silver: Vortex Deposit
25HYMC: Nasdaq High-grade Silver: Vortex Deposit Au Fire Assay (opt) No Assay/Sample 0 to 0.005 0.005 to 0.007 0.007 to 0.010 0.010 to 0.015 0.015 to 0.030 0.030 to 0.070 0.070 to 0.100 Greater than 0.100 H10D-3547 208’ of 0.031 opt (0.97 g/t) Au / 0.75 opt (23.4 g/t) Ag *including 26’ of 0.096 opt
Slide 26: Vortex Significant Intercepts
26HYMC: Nasdaq • Vortex drilling in 2008 discovered a large area of sulfide gold and silver, with higher grade silver values • Significant intercepts include2: Hole ID FROM TO INTERVAL Grade (meters) (meters) (meters) Au (g/t) Ag (g/t) AuEq1 (g/t) Au (opt) Ag (opt) AuEq1 (opt) HD08-3632 122 136 14 0
Slide 27: Outlook for Silver: Silver Demand Trends
27HYMC: Nasdaq Outlook for Silver: Silver Demand Trends Source: BMO Capital Markets Equity Research Under a Net Zero Emissions Scenario Photovoltaic Demand is Expected to Make Up Over One Third of Total Industrial Silver Demand by 2030 Silver demand is projected to increase significantly over the ne
Slide 28: Higher-grade Silver Opportunities
28HYMC: Nasdaq Ag = 32g/t and greater Ag = 64g/t and greater Higher-grade Silver Opportunities Detailed review of drill hole database and model noted that a significant portion of historical drilling in the database does not include assay information for silver • Silver plays an important role in th
Slide 29: Higher-grade Silver Opportunities
29HYMC: Nasdaq Ag = 32g/t and greater Ag = 64g/t and greater High-grade silver zones limited by drilling/assaying Higher-grade Silver Opportunities
Slide 30: Banded Veins - Brimstone
30HYMC: Nasdaq Banded Veins - Brimstone • Historical limited drill results warrant follow-up on LAC intercepts to the South of the placer deposit • Brimstone and the East Fault are believed to be close to a feeder system • Banded veins observed which are typically indicative of higher grades • The b
Slide 31: Geologic Indicators/Opportunities
31HYMC: Nasdaq Geologic Indicators/Opportunities Hycroft is a low-sulfidation, epithermal system with numerous banded quartz veins similar to Midas-style mineralization • No prior focus on understanding these veins and what they mean to potential feeder systems • High-grade mineralization occurs at
Slide 32: Higher-grade Opportunities/Fault Intersections
32HYMC: Nasdaq Higher-grade Opportunities/Fault Intersections 39,400 North Cross Section (Looking North)
Slide 33: Capital Structure
33HYMC: Nasdaq Capital StructureOwnership Summary (1)(2) Mudrick 24.4 mm 40% Whitebox 8.4 mm 14% Highbridge 4.5 mm 8% Aristeia 3.8 mm 6% Nomura 3.2 mm 5% Wolverine 1.2 mm 2% Sprott Resource Lending 0.5 mm 1% Other/Retail 14.3 mm 24% Capitalization and Major Supporters Share Price - HYMC(1) $0.37 Sha
Slide 34: Appendix
HYMC: Nasdaq APPENDIX
Slide 35: Cautionary Note to U.S. Investors Regarding Mineral Resources
35HYMC: Nasdaq Cautionary Note to U.S. Investors Regarding Mineral Resources The Mineral Resource estimates included herein or incorporated by reference herein have been prepared in accordance with the requirements of the Modernization of Property Disclosures for Mining Registrants (the “Modernizati
Slide 36: Leadership & Technical Teams
36HYMC: Nasdaq Leadership & Technical Teams 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, including: • John Marsden/Metallurgium – a metallurgical and processi
Slide 37: Board of Directors
37HYMC: Nasdaq Board of Directors Diane Garrett Acting Chairman, Director Michael Harrison Director, NG, SST* Diane Garrett has over 20 years of senior executive management experience in the mining industry and an exceptional track record for developing projects and building companies. Dr. Garrett w
Slide 38: Board of Directors cont.
38HYMC: Nasdaq Board of Directors cont. Marni Wieshofer Director, A*, C David Naccarati Director, A, SST A = Audit Committee | NG = Nominating & Governance Committee | C = Compensation Committee | SST = Safety, Sustainability & Technical | *denote Chair position David Naccarati has more than 45 year
Slide 39: Mine Site and Facilities
39HYMC: Nasdaq VORTEX BRIMSTONE CAMEL CENTRAL GAP BAY North Merrill- Crowe Administration, Warehouse, Maintenance Main East-West Railway (Union Pacific) State Route 49 (Jungo Road) New Leach Pad N Mine Site and Facilities
Slide 40: Processing Infrastructure
40HYMC: Nasdaq Processing Infrastructure Existing processing equipment includes: • 5,000 gallon per minute Brimstone Merrill-Crowe plant • Doré created at onsite Brimstone refinery • CIC circuit (~4,500 gpm capacity) available as extra solution processing capacity as needed • 21,500 gallon per minut
Slide 41: Permitting
41HYMC: Nasdaq Permitting • Received Record of Decision from Bureau of Land Management for EIS (10-22-19) • Current operating plan is fully permitted • Existing operating permits will be amended as new facilities/infrastructure are required • EIS includes flexibility: • Expanded pits • Construction
Slide 42: Deposit Type
42HYMC: Nasdaq • Large, epithermal, low sulfidation, hot springs deposit • Gold and silver mineralization occurs as both disseminated and vein- controlled • Gold values ranging from detection to 8.8 ounces per ton; and Silver from detection to 647.5 ounces per ton 42 Deposit Type
Slide 43: Process Costs
43HYMC: Nasdaq Process costs: Comminution Per ton of feed to float plant $3.09 Flotation Per ton of feed to float plant $3.28 Process (fixed costs) Per ton of feed to float plant $0.43 Leach, CCD, Detox (fixed costs) Per ton of feed to float plant $0.33 Total Mill Cost Per ton of feed to float plant
Hycroft Mining Holding — Corporate Update (February 2022) on 6ix