HYCROFT MINING HOLDING CORP Q2 FY2020 earnings call

• Recapitalization in May 2019 via SPAC led to Hycroft Mine being owned by listed company on NASDAQ.
• Feasibility study in July 2019 showed NPV of $2.1B at $1300 gold and $17.33 silver; current spot prices make NPV approx $5.6B.
• Workforce increased 35% YTD to 216 employees, goal of 275 by end of year; added Safety and Environmental Managers, General Manager, split Process Manager role.
• Mobile equipment: increased mining fleet with rental haul trucks and loaders, moved from stockpiles to active pit mining.
• Crusher: improved from Q1 to Q2 (338k tonnes to 459k tonnes) with preventative maintenance and operator training; plans to upgrade automation and controls in Q4.
• Leach pads: test pads showed recoveries higher than feasibility; improved reagent Island to increase solution distribution; plans to add new tankage in Q3.
• Process infrastructure: operating Brimstone Merrill-Crowe facility, added CIC circuit, planning restart of North Merrill Pro plant in 2021; new leach pad first phase 4 million sq ft, spent $9.7M by June, total expected $36M, plan to start stacking in Q4.

No detailed product segment financial performance with revenue contribution % provided. Focus on mine operations: mining rate increased 55% Jan-June; crusher throughput improved from 338,000 tonnes in Q1 to 459,000 tonnes in Q2; leach pad test results showed recoveries higher than feasibility study (e.g., Brimstone test pad 1 recovery 82% vs 65% in study, test pad 2 recovery 91% vs 70% in study).

• Fourth quarter plans: further upgrade crusher automation and process controls, perform OEM review with FL Schmidt, begin stacking on new leach pad.
• Ramping up mining, crushing, and production in 2021 with new leach pads.
• Begun work with financial advisors and stakeholders to secure additional financing.

• Struggles in Q2 with leach pad processing led to write-off of ~6,500 ounces of gold due to lack of manpower at manager level and under-sized reagent Island.

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