Hycroft Mining Holding Corporation · NASDAQ:HYMC
Hycroft Mining — Precious Metals Summit 2021 – Beaver Creek
41 slides from Hycroft Mining's conference presentation, Sep 8, 2021
Slide 1: Building a World-Class Operation
HYMC: Nasdaq BUILDING A WORLD-CLASS OPERATION HYMC: Nasdaq ALIGNED TEAM DISCIPLINED DEVELOPMENT SHAREHOLDER FOCUS Sept. 8-11, 2021 Precious Metals Summit 2021 – Beaver Creek
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: Hycroft Overview
4HYMC: Nasdaq Hycroft Overview Source: Company Filings 1. Mineral Reserves and Minerals Resources are estimated as of December 31, 2020 and Mineral Resources do not include Mineral Reserves. See “Cautionary Note to US Investors Regarding Reserves and Resources.” 2. The North Merrill-Crowe facility r
Slide 5: 2020-21 Achievements
5HYMC: Nasdaq 2020-21 Achievements New Executive Management New Technical Leadership Team Identified gaps in prior metallurgical test work • Initiated $10 mm variability metallurgical program ✓ Constructed 4.5 million sqft of new leach pad (Phase I) Re-aligned operating team resulting in: • Increase
Slide 6: New Leadership & Technical Teams
6HYMC: Nasdaq New Leadership & Technical Teams • New highly experienced management team in place, led by: Former CEO of Romarco, US Global Investors (fund manager) Former CFO of Romarco, Phelps Dodge Former Stantec, Goldcorp, Newmont, Barrick • On-site technical team is supplemented with industry le
Slide 7: Mine Site and Facilities
7HYMC: 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 8: One of the World's Largest Primary Gold Deposits
8HYMC: Nasdaq One of the World’s Largest Primary Gold Deposits… • 34-year mine life provides strong leverage to gold and silver prices • Potential resource conversion provides additional production upside and mine life extension 1. Minerals Reserves and Resources were estimated at 12/31/20. Total go
Slide 9: One of the World's Largest Silver Deposits
9HYMC: Nasdaq …And One of the World’s Largest Silver Deposits Hycroft is the largest silver deposit in the United States
Slide 10: Valuation vs Peers
10HYMC: Nasdaq Source: BMO GoldPages for the week ended August 13, 2021 Low P / NPV multiple represents early opportunity to participate in potential rerating as development continues Valuation vs Peers Gold Sector Valuation at Spot Metal Prices H YM C
Slide 11: Hycroft Mine Overview
11HYMC: Nasdaq Hycroft Mine Overview • Fully constructed mine and processing facilities • Full operating and maintenance program in place • Health & Safety team embedded in each group • Multi-year run-of-mine plan preceding ramp-up in development • Finalizing test work on sulfide flowsheet • Major p
Slide 12: 2021 Outlook
12HYMC: Nasdaq 2021 Outlook • Continue cost reductions and improving operating efficiencies • Continued focus on improving safety • Improving Merrill-Crowe plant efficiency and solutions management • Reviewing sulfide processing options • Variability, metallurgical and column testing for commercial
Slide 13: 2021: Milestones
13HYMC: Nasdaq ✓✓✓ ✓✓ 2021: Milestones Late Q1 Began drilling for metallurgical samples and variability testing Q2 Transition to a more cost- effective mining fleet arrangement Early Q2 994K loader in operation, expected to improve loading capability and reduce unit mining costs Q3 Developing multi-
Slide 14: Development Paths – 2022 Forward
14HYMC: Nasdaq Development Paths – 2022 Forward • The Hycroft Mine has the opportunity for a flexible, scalable development program • Most large mines in Nevada operate multiple processing and recovery methods Run-of-mine Heap Leach Sulfide Processing Options ExplorationTwo-Stage Sulfide Heap Oxidat
Slide 15: Upside Opportunities
HYMC: Nasdaq Upside Opportunities High-grade Targets & Expansion Potential
Slide 16: Mineralization Remains Open in Several Directions
16HYMC: Nasdaq Mineralization Remains Open in Several Directions 16 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
Slide 17: Vortex Cross-section 40700 North
17HYMC: Nasdaq Vortex Cross-section 40700 North (Historical Drilling) 17 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 *inc
Slide 18: Historical Vortex Drilling
18HYMC: Nasdaq Historical Vortex Drilling • Vortex drilling in 2008 discovered a large area of sulfide gold and silver, with higher grade silver values • Significant intercepts include2: H09D-3768 with visible pyrargyrite: 15 feet of 0.011 opt Au and 73 opt Ag inc. 4 feet of 0.028 opt Au and 209.13
Slide 19: Recent Vortex Drilling
19HYMC: Nasdaq Recent Vortex Drilling • Higher grades have been encountered in several holes during the 2021 metallurgical drill campaign • Significant intercepts include2: 1. Hycroft AuEq. calculated based on feasibility study commodity pricing of $1,300/oz Au and $17.33/oz Ag; includes stockpiled
Slide 20: Hycroft Claim Map
20HYMC: Nasdaq Hycroft Claim Map Source: Hycroft Mining Management • 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 we
Slide 21: Exploration Targets – Expansion Potential
21HYMC: Nasdaq Hycroft Exploration Targets – Expansion Potential Vortex Zone All Hycroft Claims Active Mining Exploration Targets Rosebud Claims (not owned by Hycroft) LEGEND Hades Area Gap Gravity High Diatreme Float Anomaly Ponds Gravity High Chance Prospect – drill intercept of 140 feet of 0.012
Slide 22: Capital Structure
22HYMC: Nasdaq Capital StructureOwnership Summary (1)(2) Mudrick 24.4 mm 41% Whitebox 11.8 mm 20% Highbridge 6.2 mm 10% Sprott Resource Lending Corp. 0.5 mm 1% Other 17.1 mm 28% Capitalization and Major Supporters Share Price - HYMC(1) $2.15 Shares Outstanding 60.3 mm Market Capitalization $129.6 mm
Slide 23: Hycroft Investment Highlights
HYMC: Nasdaq Hycroft Investment Highlights
Slide 24: One of the World's Largest Precious Metals Deposits
24HYMC: Nasdaq One of the World’s Largest Precious Metals Deposits Proven & Probable Mineral Reserves –11.9 mm ozs gold / 478.5 mm ozs silver(1) Measured & Indicated Mineral Resources – 3.6 mm ozs gold / 106.4 mm ozs silver (exclusive of reserves)(1) Inferred Mineral Resources – 5.7 mm ozs gold / 12
Slide 25: Questions?
HYMC: Nasdaq QUESTIONS?
Slide 26: Appendix
HYMC: Nasdaq APPENDIX
Slide 27: Cautionary Note to U.S. Investors Regarding Mineral Reserves and Resources
27HYMC: Nasdaq Cautionary Note to U.S. Investors Regarding Mineral Reserves and Mineral 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 Registran
Slide 28: Mineral Reserves and Resources (12/31/20)
28HYMC: Nasdaq Mineral Reserves and Resources (12/31/20) Tons Grades (oz/t) Contained Ounces (000s) (Mt) Au Ag Au Ag Au Eq(1) Total Proven & Probable Reserves 1,123 0.011 0.426 11,865 478,513 18,445 Measured & Indicated 387 0.009 0.277 3,589 106,389 5,152 Inferred 599 0.010 0.217 5,688 127,949 7,499
Slide 29: Board of Directors
29HYMC: Nasdaq Board of Directors David Kirsch Chairman, C, NG David Kirsch is a Managing Director and Senior Analyst at Mudrick Capital Management, L.P., where he is responsible for analyzing distressed credit and equity opportunities across a diverse range of industries. Prior to joining Mudrick C
Slide 30: Board of Directors cont.
30HYMC: Nasdaq Board of Directors cont. Stephen Lang Director Steve Lang has over 40 years of experience in the mining industry, including engineering, development and production at gold, coal, base metals and PGM operations. He was Chief Executive Officer of Centerra Gold Inc., a publicly traded mi
Slide 31: Processing Infrastructure
31HYMC: Nasdaq • The primary crusher was reconditioned and brought into operation in late March 2019 • The secondary and tertiary crushers were recommissioned and placed online in March 2019 • Crusher will be maintained and ready for when sulfide processing begins Coarse Ore Stockpile Fine Ore Stock
Slide 32: Processing Infrastructure cont.
32HYMC: Nasdaq Processing Infrastructure cont. • Gold and silver recovery is currently achieved through the 5,000 gallon per minute Brimstone Merrill-Crowe plant • CIC circuit (~4,500 gpm capacity) available as extra solution processing capacity as needed • Doré created onsite through Brimstone refi
Slide 33: Leach Pad & Projects
33HYMC: Nasdaq Sufficient capacity on existing leach pads to treat run-of-mine ore using traditional heap leach New Leach Pad • New fully permitted leach pad constructed (Stage 1A) • Intended for two-stage heap oxidation and leach process • Stage 1 – 8.6 M square feet; 26.5 M ton capacity • Ultimate
Slide 34: Deposit Type
34HYMC: 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 34 Deposit Type
Slide 35: Geologic Setting and Mineralization
35HYMC: Nasdaq Geologic Setting and Mineralization • The Hycroft mine is located on the western flank of the Kamma Mountains • Large, epithermal, low sulfidation, hot springs deposit • Gold and silver mineralization occurs as both disseminated and vein-controlled Simplified East-West Cross Section T
Slide 36: Senior-Scale Gold Mine in Nevada
36HYMC: Nasdaq Senior-Scale Gold Mine in Nevada Source: July 31, 2019 Summary Technical Report 4 1 0 0 0 N A u F a B lo c k G ra d e s ( L o o k in g N o rt h ) 4 1 0 0 0 N A g F a B lo c k G ra d e s ( L o o k in g N o rt h )
Slide 37: Drilling History
37HYMC: Nasdaq Drilling History • Exploration drilling started in 1975 • 5,520* drill holes within model footprint, representing 2,446,162 feet of drilling • Strong knowledge of the ore body through extensive drilling campaigns, individual assays and over 260 million tons of ore mined to date • 86%
Slide 38: Hycroft Regional Mines
38HYMC: Nasdaq Hycroft Regional Mines Source: Hycroft Mining Management • Several neighboring world class deposits • Property position covers Sleeper-Rosebud high grade trend • Large under explored property position
Slide 39: Permitting
39HYMC: 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 40: 2020: Key Findings of Novel Two-stage Process
40HYMC: Nasdaq 2020: Key Findings of Novel Two-stage Process FINDING SOLUTION IN PROGRESS Forced air injection Forced air injection system is a key component of the leach pad for effective oxygen distribution throughout pad Working with third-party engineering firm to design and integrate system int
Slide 41: Debt Repayment Schedule
41HYMC: Nasdaq Debt Repayment Schedule SPROTT FACILITY SUBORDINATED NOTES Principal Additional Interest Regular Interest % Amortization $ Balance (Fixed calculation) Balance (7.0% + > of 1.5% or LIBOR) Total Debt Service June 30, 2021 $ 75.12 $ 8.80 $0.00 $0.00 September 30, 2021 2.50% ($1.88) $ 73.
Hycroft Mining Holding — Precious Metals Summit 2021 – Beaver Creek on 6ix