10-Q - HYCROFT MINING HOLDING CORP (0001718405) (Filer)

Tue, May 13, 9:09 PM (34 days ago)

**Hycroft Mining Holding Corporation (HYMC) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue and Profit Margins:** HYMC reported a net loss of $11.76 million for Q1 2025, compared to a net loss of $20.75 million in Q1 2024. The company has not generated significant revenue due to the cessation of mining operations since November 2021. - **Cash Flow:** The company used $9.7 million in cash for operating activities in Q1 2025, primarily due to a net loss and changes in working capital. Financing activities provided $0.18 million, mainly from the issuance of common stock. - **Earnings Changes:** The net loss per share was $0.47 for Q1 2025, compared to $1.00 in Q1 2024. The weighted average shares outstanding increased to 24.95 million in Q1 2025 from 20.81 million in Q1 2024. **Quarterly Performance Discussion:** - **Operating Expenses:** Exploration and development costs decreased by $1.9 million due to reduced exploration drilling. General and administrative costs remained flat, while mine site costs decreased slightly. - **Non-Operating Income/Expense:** Interest income decreased by $0.6 million due to reduced invested cash. Interest expense decreased by $6.7 million, primarily due to accelerated amortization of original issue discount and issuance costs related to voluntary first lien debt prepayments in the prior year. **Trends and Uncertainties:** - **Liquidity:** HYMC's unrestricted cash position was $39.69 million at the end of Q1 2025, down from $49.56 million at the end of 2024. The company is dependent on unrestricted cash and other sources to repay debt and fund operations. - **Debt:** The company is in compliance with all debt covenants. However, there is substantial doubt about the company's ability to continue as a going concern due to significant operating losses and dependence on unrestricted cash. - **Future Operations:** HYMC plans to focus on exploration, technical studies, and data analysis. The company aims to assess high-grade underground mining scenarios, execute exploration programs, and finalize engineering and trade-off studies. **Future Operations Impact:** - **Exploration and Development:** HYMC plans to drill nine to ten core holes totaling approximately 490 meters, with a budget of approximately $4.0 million, subject to sufficient funding. - **Technical Studies:** The company will continue metallurgical testing and trade-off studies to optimize recoveries and explore additional by-product revenue streams. - **Funding:** HYMC will continue to evaluate alternatives to raise additional capital necessary to fund the future development of the Hycroft Mine and explore other strategic initiatives to enhance stockholder value. **Ticker:** HYMC