Hycroft Mining (HYMC) - 2024 Q3 - Quarterly Report

Financial Performance - Net loss for the three months ended September 30, 2024, was $14,228,000 compared to a loss of$15,712,000 for the same period in 2023, showing an improvement of approximately 9.4%[11] - For the nine months ended September 30, 2024, the net loss was $48.158 million, compared to$43.510 million for the same period in 2023, indicating a 10.3% increase in losses year-over-year[62] - The company reported a net loss of $14.228 million for the three months ended September 30, 2024, compared to a net loss of$15.712 million for the same period in 2023, representing a decrease of 9.4%[62] - The company reported a net loss of $48.2 million for the nine months ended September 30, 2024, compared to a net loss of$43.5 million for the same period in 2023, indicating a 10.8% increase in losses[102] Cash Flow and Liquidity - Cash and cash equivalents decreased to $55,834,000 from$106,210,000, a decline of approximately 47.5%[9] - The company reported a net cash used in operating activities of $27,802,000 for the nine months ended September 30, 2024, compared to$31,931,000 for the same period in 2023, indicating a reduction of approximately 13%[14] - Cash flows provided by investing activities were $6,139,000, compared to$(292,000) in the prior year, indicating a positive shift in cash flow management[14] - Cash used in operating activities for the nine months ended September 30, 2024, was $27.8 million, an improvement from$31.9 million used in the same period in 2023[103] Assets and Liabilities - Total assets decreased to $149,022,000 from$201,693,000, representing a reduction of about 26%[9] - Total liabilities decreased to $172,156,000 from$189,037,000, a decline of about 8.9%[9] - The company’s accumulated deficit increased to $(773,332,000) from$(725,175,000) over the reporting period[9] - Total debt, net as of September 30, 2024, was $122.026 million, a decrease from$142.617 million as of December 31, 2023[41] Stock and Equity - The company raised $10,278,000 from the issuance of common stock during the reporting period[14] - As of September 30, 2024, total stockholders' equity was$23.1 million, with an accumulated deficit of $773.3 million[15] - The weighted average shares outstanding increased to 24,058,560 for the three months ended September 30, 2024, from 20,195,402 in the same period of 2023, reflecting a 19.0$0.2 million during the three months ended September 30, 2024[51] Operating Expenses - Operating expenses for the three months ended September 30, 2024, were $14,665,000, down from$17,200,000 in the prior year, a decrease of about 14.8%[11] - Operating costs for the Hycroft Mine were $9.597 million for the three months ended September 30, 2024, down from$10.806 million in the same period of 2023, a decrease of 11.1%[67] - General and administrative costs for the three months ended September 30, 2024, were $4.4 million, an increase of$1.6 million from the same period in 2023, primarily due to higher professional fees[89] Income and Other Gains - The company recognized total other income of $2.403 million for the three months ended September 30, 2024, compared to$457,000 for the same period in 2023, marking a significant increase of 426.5%[59] - The company recognized a gain on the sale of equipment amounting to $2.636 million for the three months ended September 30, 2024, compared to$456,000 in the same period in 2023, representing a 478.5% increase[59] - The Company recognized $1.6 million as other income during the nine months ended September 30, 2024, due to the gain on forfeiture of non-refundable deposits related to an Equipment Purchase Agreement[46] Debt Management - The Company voluntarily prepaid$34.7 million of the first lien loan on January 5, 2024, reducing the outstanding balance to $15.0 million[39] - The estimated fair value of the Company's debt instruments was$111.3 million as of September 30, 2024, down from $149.2 million as of December 31, 2023[37] - The Company was in compliance with all financial covenants under its debt agreements as of September 30, 2024[40] Exploration and Development - The company has been focusing on exploration drilling and technical studies to optimize processing methods for sulfide ores[20] - The 2024 Drill Program has been expanded to approximately 8,500 meters, with 6,600 meters completed as of September 30, 2024[84] - During the three and nine months ended September 30, 2024, exploration and development costs totaled$4.7 million and $14.6 million, respectively, a decrease of$2.5 million and $1.4 million compared to the same periods in 2023[87] Environmental and Regulatory Compliance - Remediation and reclamation expenditures were reported at$101.722 million, reflecting the company's commitment to environmental regulations[108] - The estimated undiscounted cash outflows for remediation and reclamation obligations are significant, totaling $58.7 million in reclamation bonds[108] - The Company received$30.0 million in cash consideration under the Sprott Royalty Agreement, granting a perpetual royalty of 1.5% on net smelter returns from the Hycroft Mine[74]