Hycroft Mining Shifts Focus From Early Economics to Long‑Term Value

• Hycroft Mining has deferred its Preliminary Economic Assessment (PEA) as management works to fully incorporate a larger resource and redesigned project scope into the study.
• A 2026 resource update confirmed a material increase in gold and silver, with measured and indicated (M&I) resources reaching 16.41 million ounces of gold and 562.57 million ounces of silver, materially altering the project's development framework.
• High-grade silver discoveries at Brimstone and Vortex, open in all directions and at depth, have shifted the technical focus toward sulfide processing routes, specifically Pressure Oxidation (POX) and roasting, ahead of the PEA.
• Management is scaling from two core rigs and one reverse circulation rig to five active rigs, prioritising resource definition over near-term economic study completion.
• With US$194.1 million in unrestricted cash and zero debt as of February 2026, Hycroft retains the financial flexibility to fund expanded drilling and technical studies through the extended PEA timeline without forced equity issuance.

Hycroft Mining: Asset Location & Development Status

Hycroft Mining operates a large gold-silver project in Nevada's Humboldt County, supported by existing on-site infrastructure including a laboratory, crusher, Merrill-Crowe processing facility, and a permitted heap leach pad. Management has not yet published a Preliminary Economic Assessment (PEA), with the timing deferred pending further geological and metallurgical inputs.

The company’s recent update shows measured and indicated resources stand at 16.41 million ounces of gold and 562.57 million ounces of silver, with a total silver equivalent exceeding 2,140 million ounces across measured, indicated, and inferred categories. The current resource footprint occupies less than 10% of the 64,000-acre land package, leaving the substantial majority of the property undrilled.

Nevada's established permitting environment and Hycroft's prior operational history at the site reduce execution risk relative to greenfield projects in less mature jurisdictions. Existing on-site infrastructure, including the permitted leach pad and processing facilities, provides a foundation that would not require reconstruction upon any future production restart.

High-Grade Discovery Systems & Drilling Configuration

The 2023 identification of high-grade silver mineralisation at Brimstone and Vortex marked a structural shift away from Hycroft's prior oxide heap leach framework, which was designed for lower-grade, near-surface material. Step-out drilling has since confirmed that the Brimstone system extends approximately 150 metres deeper than prior modelling anticipated, with mineralisation at both systems remaining open laterally and at depth.

Chief Executive Officer of Hycroft Mining, Diane Garrett, described the current drilling programme:

"We're still drilling the Brimstone and Vortex high-grade silver systems that we discovered late in 23, and they're open in all directions and at depth. Even in our resource footprint, it sits on less than 10% of our land package, and the resource is only defined by the amount of drilling that we've done."

The 2025 programme comprised 11 completed holes across both targets (7 at Brimstone and 4 at Vortex), followed by 6 additional core holes in early 2026. The rig count is being expanded from two core rigs and one reverse circulation (RC) rig to five active rigs in the second half of 2026, signalling a clear prioritisation of resource growth over near-term economic study completion.

Project Economics: Processing Route Trade-Offs & PEA Timing

The original heap leach model was designed for oxide mineralisation at lower grades and near-surface depths, delivering limited recovery rates, and was misaligned with the high-grade sulfide zones confirmed at Brimstone and Vortex. Transitioning to a sulfide milling operation introduces higher capital intensity and longer timelines, but also higher recovery potential, with ongoing technical studies evaluating two competing processing routes: Pressure Oxidation (POX) and roasting, both of which directly affect all-in sustaining costs (AISC), capital intensity, and recovery rates.

Publishing a PEA based on heap leach parameters while high-grade sulfide systems remain under active definition would risk producing metrics materially below the asset's long-term potential, so management has deferred the study until geological and metallurgical inputs are sufficiently defined. Management has indicated that project economics are ongoing, with metallurgical and engineering studies continuing before a finalised economic study is released.

Balance Sheet Position & Capital Deployment Priorities

As of February 2026, Hycroft held approximately US$194.1 million in unrestricted cash with zero debt, a position made possible by a full debt repayment completed in October 2025. Current capital is being deployed across expanded drilling programmes, metallurgical testing, and engineering studies, removing the near-term financing risk that frequently constrains junior and mid-tier mining companies from pursuing aggressive resource definition strategies.

Garrett described how the debt repayment and resulting balance sheet strength are enabling the company's accelerated development programme:

"Through the discoveries that we had and the institutional interest we were receiving came together and helped the company be able to pay off all of that debt last October, and that set us on a path for a true transformation of the company. We've got about 200 million US in the bank, so it makes it really one of the most attractive balance sheets in the industry, and that's allowing us to really accelerate the drill program and the advancement of the project."

This financial position reduces reliance on equity issuance at unfavourable valuations, a consideration that is particularly relevant for companies whose share price has not yet reflected the full scope of geological discoveries. Management retains the flexibility to sequence development decisions based on technical merit rather than capital availability.

The Investment Thesis for Hycroft Mining

• Hycroft offers exposure to one of the largest undeveloped gold-silver resource bases globally, with measured and indicated resources of 16.41 million ounces of gold and 562.57 million ounces of silver, providing a scale that is structurally scarce within the global primary silver equity market.
• The asset is located in Nevada, a Tier-1 jurisdiction with established permitting frameworks, meaning investors are not exposed to the sovereign risk, fiscal instability, or operational unpredictability that characterises many of the jurisdictions where comparable silver production is concentrated.
• A debt-free balance sheet with approximately US$194.1 million in unrestricted cash as of February 2026 eliminates near-term financing risk and allows management to pursue a capital-intensive exploration and technical study programme without dilutive equity issuance.
• The Preliminary Economic Assessment deferral reflects deliberate capital discipline by withholding economic publication until metallurgical and geological inputs stabilise around a sulfide processing model; management reduces the risk of publishing metrics that could anchor the project's valuation below its long-term potential.
• Accelerated drilling across Brimstone and Vortex, with rig count scaling from two core rigs and one reverse circulation rig to five active rigs in the second half of 2026, signals a clear commitment to resource growth, while the evaluation of competing sulfide processing routes, Pressure Oxidation (POX) and roasting, represents a near-term technical catalyst that will underpin future economic studies.

Hycroft's combination of district-scale resource growth, a debt-free balance sheet, and a Tier-1 Nevada address positions the company as a rare large-scale silver-gold development asset at a pivotal inflection point, where upcoming project economics and continued drilling results are expected to be the primary valuation drivers over the near term.

TL;DR

Hycroft Mining has deferred its PEA as management works to fully incorporate a larger resource and redesigned project scope, with a 2026 resource update confirming measured and indicated resources of 16.41 million ounces of gold and 562.57 million ounces of silver that have rendered the prior heap leach development framework sub-optimal. Management is expanding its drill programme from two core rigs and one reverse circulation rig to five active rigs, and evaluating sulfide processing routes, specifically Pressure Oxidation and roasting, to ensure the eventual economic study reflects the full scale of the asset. With US$194.1 million in cash and zero debt, Hycroft has the financial flexibility to pursue this disciplined sequencing without forced equity issuance.

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