WINNEMUCCA, Nev., March 5,
2025 /PRNewswire/ -- Hycroft Mining Holding
Corporation (Nasdaq: HYMC) ("Hycroft" or the "Company")
announces 2024 full year results and filing of its Form 10-K.
President's Message
As precious metals continue their powerful momentum in early
2025, we're proud to reflect on Hycroft Mining's outstanding 2024
achievements, culminating in our latest announcement of the best
drill hole (Hole 6018) in the Company's more than 40-year history -
an exceptional intercept of 21.2 meters of 2,359.68 g/t silver,
including intervals exceeding 6,000 g/t silver. This supersedes the
prior best hole ever drilled (Hole 5753), which returned over 85
meters of 534 g/t silver, including over 39 meters of 1,019 g/t
silver. The year 2024 can be characterized as doing what our team
does best and has done before – creating value by identifying
opportunities that were not explored by several predecessor owners
of this unique asset. Our extensive efforts to fully understand the
genesis of this world-class asset delivered success for the Company
and our shareholders.
Throughout 2024, our exploration program consistently delivered
excellent results, expanding our newly discovered two high-grade
silver dominant trends at Vortex and Brimstone. The drilling
campaign produced remarkable intercepts at Brimstone exceeding
1,000 g/t silver in numerous drill hole intercepts. The 2024
drilling extended high-grade mineralization both up and down
dip as well as south along strike, and we extended Vortex
mineralization approximately 100 meters to the west, encountering
both high-grade silver and significant gold values. Additionally,
high-grade mineralization was extended along the northern and
southern edges, and importantly, vertical continuity was
established within the Vortex zone. Our 9,058-meter drilling
program has fundamentally changed the notion that Hycroft is a
large, low-grade system to one with significant high-grade
potential. Due to the rapid expansion of the high-grade zones and
continued growth opportunities remaining open in all directions,
the Company has been contemplating opportunities to develop a
smaller high-grade mining operation for the initial phase of
sulfide mining. This would allow for less initial capital, strong
cash flows early in the mine life, and overall enhanced
economics.
Our operational excellence earned industry recognition, with
Hycroft receiving the 2024 Operator Safety Award from the Nevada
Mining Association. We concluded the year having achieved over
1,500 days without a lost-time incident - a testament to our team's
commitment to safety. We have completed more than two years with a
zero (0.00) total recordable injury frequency rate
("TRIFR").
Another significant milestone was our inclusion in the Solactive
Global Silver Miners Total Returns Index in May 2024, increasing our visibility in the
investment community. We maintained a strong financial position
throughout the year, ending with $49.6
million in unrestricted cash after pre-paying $38.0 million of our first lien debt while also
advancing our exploration and development programs.
2025 is expected to be a defining year as we near critical
milestones - completing the technical studies for the next phase of
operation and refining drill targets to continue adding value to
the Hycroft mine. With precious metals showing remarkable
strength, Hycroft stands uniquely positioned with its
world-class Nevada asset. With
less than 10% of our 64,000+-acre property explored, our high-grade
discoveries continuing to expand, existing infrastructure on-site
and major mining permits in hand, we are well advanced compared to
other development companies, and we are excited about the
opportunities ahead in this robust precious metals
environment.
The new management team was assembled in the Fall of 2020 and
inherited a substantial debt burden that it has reduced by
$101 million (principal and cash
interest over the period). However, as the Company believes the
remaining debt with paid-in-kind interest continues to be an
overhang on the Company's share price and the valuation of its
assets, it is continuing to explore a number of strategic and
financial alternatives to address its balance sheet. Management and
the holders of the subordinated notes, as well as other
third-parties, have been and continue to work closely and
collaboratively on a number of alternatives for restructuring the
debt and future funding requirements. Alternatives may include a
restructuring of the Company's debt obligations, obtaining
additional equity financing, joint ventures, or merger and
acquisition transactions. With respect to transactions of this
nature, there can be no assurances that any such transaction will
occur or, if it does, the terms and timing thereof. In particular,
the terms of any such transaction may be dilutive to our existing
equity holders and at prices below the Company's current share
price. The Company has not set any timetable for a particular
transaction to address the significant amount of debt on its
balance sheet and does not intend to disclose further developments
unless and until its Board approves a specific action.
2024 HIGHLIGHTS
Corporate Highlights
- Safety: Hycroft has maintained a 0.00 TRIFR
for over two years, operating over 1.2 million man hours without a
Lost Time Incident. During the third quarter, Hycroft was
awarded the 2024 Operator Safety Award for small surface mines by
the Nevada Mining Association. Also in 2024, Hycroft was awarded
the Mine Safety & Health Administration (MSHA) Certificate of
Achievement in Safety.
- Environmental: Through 2024, Hycroft
maintained an impeccable environmental record and was recognized as
stewards of successful reclamation.
-
Balance Sheet: The Company ended the year with unrestricted
cash of $49.6 million and
total debt of $125.0
million.
Operational Highlights
- Exploration: The 2024 drill program was
launched in February 2024 (the "2024
Drill Program"), to build on the high-grade silver dominant trends
identified in late 2023. The objective of the 2024 Drill Program
was to define the structural framework of these new trends,
establish continuity and expand the Brimstone and Vortex trends,
and identify new target areas of potential high-grade. All
objectives were successful, and the 2024 drill program was expanded
during the year with 9,058 meters of drilling being completed as of
December 31, 2024. Final assays from
three holes were pending at year-end. In addition to extending the
high-grade silver trends up and down-dip, the technical team has
identified new target areas as potential extensions of these silver
trends. With less than 10% of the Company's land position explored,
there is tremendous further exploration potential.
- Technical Studies: During the year ended
December 31, 2024, the Company
advanced the metallurgical and engineering work necessary for
designing a sulfide milling operation including testing composite
samples from around the ore body that represent the various
material characteristics in the sulfide ore, crushing, grinding,
and flotation work which has identified significant improvements in
gold and silver flotation recoveries compared to the current
technical report that increase the economic benefits to the
project, identifying the optimal inputs and operating parameters
for roasting, pressure oxidation, leaching, sulfuric acid
generation, and power co-generation. During 2024, the Company also
completed the future tailing storage facility designs needed to
extend material storage capacity and comply with safety and
environmental regulations for these facilities. Final
metallurgical testwork for roasting will be completed mid-year
as part of the trade-off studies to assess whether roasting
technology could offer superior economics compared to pressure
oxidation ("POX") technology for the Hycroft Mine. Other technical
work components to be completed in 2025 include process plant
equipment selection, plant layout, water management, and other
designs, with an anticipated technical report with economics being
published in late 2025. Due to the potential significant quantity
of by-product sulfuric acid expected to be generated from roasting
the sulfide concentrate, the Company engaged a third-party
specialist that completed a focused sulfuric acid market study that
identified a viable market with potential customers and pricing
assumptions.
The Company's Annual Report on Form 10-K for the period
ended December 31, 2024, was filed
March 5, 2025, and is available at
www.sec.gov/edgar. See "Cautionary Note Regarding Forward-Looking
Statements" below.
About Hycroft
Mining Holding Corporation
Hycroft Mining Holding Corporation is a U.S.-based gold and
silver company exploring and developing the Hycroft Mine, one of
the world's largest precious metals deposits located in northern
Nevada, a Tier-1 mining
jurisdiction. After a long history of oxide heap leaching
operations, the Company is focused on completing the technical
studies to transition the Hycroft Mine into a large-scale milling
operation for processing the sulfide ore. In addition, the Company
is engaged in a robust exploration drill program to unlock the full
potential of our expansive +64,000-acre land package, of which less
than 10% has been explored. In 2023, Hycroft announced the
discovery of a new high-grade silver system within the known
resource area and the delineation of two new high-grade silver
trends. These discoveries represent a significant new value driver
for the Hycroft Mine that the Company is following up on with
additional drilling in 2024.
For further information, please contact:
info@hycroftmining.com
www.hycroftmining.com
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within
the meaning of Section 27A of the United States Securities Act of
1933, as amended, Section 21E of the United States Securities
Exchange Act of 1934, as amended, or the United States Private
Securities Litigation Reform Act of 1995. All statements, other
than statements of historical facts, included herein and public
statements by our officers or representatives, that address
activities, events or developments that our management expects or
anticipates will or may occur in the future, are forward- looking
statements, including but not limited to such things as future
business strategy, plans and goals, competitive strengths and
expansion and growth of our business. The words "estimate", "plan",
"anticipate", "expect", "intend", "believe" "target", "budget",
"may", "can", "will", "would", "could", "should", "seeks", or
"scheduled to" and similar words or expressions, or negatives of
these terms or other variations of these terms or comparable
language or any discussion of strategy or intention identify
forward-looking statements. Forward-looking statements address
activities, events, or developments that the Company expects or
anticipates will or may occur in the future and are based on
current expectations and assumptions. Forward-looking statements
include, but are not limited to (i) risks related to changes in our
operations at the Hycroft Mine, including risks associated with the
cessation of mining operations at the Hycroft Mine; uncertainties
concerning estimates of mineral resources; risks related to a lack
of a completed feasibility study; and risks related to our ability
to re- establish commercially feasible mining operations; (ii)
industry related risks including fluctuations in the price of gold
and silver; the commercial success of, and risks related to, our
exploration and development activities; uncertainties and risks
related to our reliance on contractors and consultants;
availability and cost of equipment, supplies, energy, or reagents.
The exploration target does not represent, and should not be
construed to be, an estimate of a mineral resource or mineral
reserve, as ranges of potential tonnage and grade (or quality) of
the exploration target are conceptual in nature; there has been
insufficient exploration of the relevant property or properties to
estimate a mineral resource; and it is uncertain if further
exploration will result in the estimation of a mineral resource.
These risks may include the following, and the occurrence of one or
more of the events or circumstances alone or in combination with
other events or circumstances may have a material adverse effect on
the Company's business, cash flows, financial condition, and
results of operations. Please see our "Risk Factors" outlined in
our Annual Report on Form 10-K for the year ended December 31, 2024, and other reports filed with
the SEC for more information about these and other risks. You are
cautioned against attributing undue certainty to forward-looking
statements. Although we have attempted to identify important
factors that could cause actual results to differ materially from
those described in forward-looking statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended. Although these forward-looking statements were based on
assumptions that the Company believes are reasonable when made, you
are cautioned that forward-looking statements are not guarantees of
future performance and that actual results, performance, or
achievements may differ materially from those made in or suggested
by the forward-looking statements in this news release. In
addition, even if our results, performance, or achievements are
consistent with the forward-looking statements contained in this
news release, those results, performance or achievements may not be
indicative of results, performance or achievements in subsequent
periods. Given these risks and uncertainties, you are cautioned not
to place undue reliance on these forward-looking statements. Any
forward-looking statements made in this news release speak only as
of the date of those statements. We undertake no obligation to
update those statements or publicly announce the results of any
revisions to any of those statements to reflect future events or
developments.
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SOURCE Hycroft Mining Holding Corporation
