Hycroft's New Technical Report Frames the Nevada Mine as a Multi-Stage Growth Story

• Hycroft's new technical study values the Hycroft Mine at $4.3 billion after taxes under planning level gold and silver prices, rising to more than double that figure at recent market prices.
• The mine plan covers 51 years and is expected to produce metal worth roughly 295,000 ounces of gold equivalent per year on average, and 15.1 million ounces of gold equivalent over its full life.
• Producing each ounce of gold equivalent metal is expected to cost roughly $2,150 once all ongoing costs are included, and the company expects to earn back its building costs in under five years.
• Additional gold and silver that is less certain to exist, along with recent drilling results and stockpiled lower quality rock, were left out of the study and represent potential further upside.
• Two newly discovered silver rich areas, Brimstone and Vortex, remain open to further drilling and could allow higher value ore to be mined earlier than currently planned.

Hycroft Mining Holding Corporation (Nasdaq: HYMC) has released a new technical study on its Hycroft Mine in Nevada, estimating the project's after tax worth at $4.3 billion based on the gold and silver prices used for planning, a figure that more than doubles at today's higher market prices. The study was prepared by outside engineering experts, including the firm Ausenco, and lays out a multi-decade plan for extracting and processing ore at the site. The key takeaway for investors is that Hycroft is positioning the mine less as a single, fixed development and more as a large property with several separate opportunities for future growth, most of which remain outside the numbers presented in this study.

What the Study Found

The study uses moderate, planning level gold and silver prices as its base assumption. At those prices, Hycroft is targeting recovery of its full construction spending in under five years, shortening further at the higher gold and silver prices seen in the market recently. Each year, the mine is targeting production of gold and silver worth roughly the same as 295,000 ounces of gold combined, based on the prices used in the study, with total production over the full life of the mine targeted to be worth about 15.1 million ounces of gold when combined. Output is expected to be strongest in the first 10 years of operation, before settling into a lower average for the remainder of the mine's life.

Building the mine requires a large upfront investment, with further spending needed over time to keep it running. Once all ongoing operating and sustaining costs are included, producing metal worth one ounce of gold is expected to cost the company roughly $2,150. The mine's estimated worth also rises directly with gold and silver prices: a $100 increase in the gold price per ounce would add about $300 million to the mine's after tax value, and a $5.00 increase in the silver price per ounce would add about $460 million, meaning the project would become meaningfully more valuable if either metal's price rises from current levels.

Executive Chairman and Chief Executive Officer of Hycroft Mining, Diane R. Garrett said the results reflect the scale of the underlying asset:

"This Technical Study confirms the scale, quality, and long-term potential of the Hycroft Mine. The project delivers strong economics and significant leverage to rising gold and silver prices, reinforcing Hycroft's position as one of the sector's most compelling large-scale development opportunities, located in a Tier 1 jurisdiction."

There May Be More Value Than the Numbers Show

Several things that could add value are not included in the numbers above. The mine already has a large, highly confident estimate of gold and silver, with a smaller amount believed to exist but with less certainty, which was left out of the plan. Recent drilling results were also left out, along with the chance to process lower quality rock the company has been setting aside rather than using right away.

The company also says its current estimate covers only a small share of its total land position, meaning there is still a lot of land where more valuable rock could be found. Garrett added that she believes the biggest opportunities are still ahead:

"We believe the most meaningful value creation opportunity remains ahead of us. By advancing the high-grade Brimstone and Vortex silver systems, we see a clear path to further improving project economics and unlocking additional value. The Hycroft land package remains a highly prospective environment, and we believe we are only at the beginning of demonstrating its true potential."

Two New Silver Discoveries Could Pay Off Sooner

Since 2023, Hycroft has been advancing two newly discovered high-grade silver areas, Brimstone and Vortex, both located within land the company already controls. Drilling is currently underway at both systems, with plans to expand that program over the coming months, and both areas remain open, meaning drilling to date has not yet defined their outer limits, leaving room for further expansion. Should Brimstone and Vortex prove large enough, Hycroft could bring this higher grade material into the mine plan earlier than currently scheduled, including through a potential underground mining option positioned alongside the existing open pit, while separately identified near-surface targets could also support earlier, lower cost processing. Hycroft is also planning to test an alternative processing method for treating the rock, which could add a third source of revenue through the production and sale of sulfuric acid, a chemical used broadly across other industries.

Where the Mine Is Located

Hycroft sits west of Winnemucca, Nevada, in an area the company describes as mining friendly and stable for doing business. Because mining has taken place at this site for decades, much of what is needed to run the mine, including equipment for breaking up rock, ponds for treating ore, a facility for recovering metal, offices, and a nearby rail line, is already in place, which the company says lowers how much new building is required. Even so, Hycroft still plans to add a new tailings storage area, a new waste storage facility, a new processing plant site, a facility to process limestone used to help treat the ore, and an extension of the existing rail line.

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