Hycroft Mining Holding Corp (HYMC)

[LouisDesyjr]

May 2015 operating report shows losing cash

https://cases.primeclerk.com/alliednevadagold/Home-DownloadPDF?id1=MTUyODI4&id2=0

I question if the assets of the company are worth anything after looking at the May 2015 operating report.

May 2015 gives use about three months of operations of the company while in Chapter 11.

The cumulative for the filing shows the following:

1: Cash taken in of $79 million, of which $35 million was DIP.

2: Disbursements of $75 million. of which $4 million was professional fees and trustee fees.

3: Cash went up $4 million. If you added back in the $4 million professional fees and trustee fees then cash could have gone up $8 million if the company did not have the costs of bankruptcy. The problem is that the company also would not have gotten the $35 million in DIP, so cash flow without the Chapter 11 would have been +8 and -35 for a net change of negative $27 million. It appears that operations are unable to support the cash required and the company, on a cash basis, looks like it is losing a few million per month.

4: Stockholders equity is now $160 million, but I question if the assets are worth what they are on the book, since the first three months show a cash loss from operations. It looks like the company can not even break even on operations. Based on this, once the assets are valued or sold, I would expect large losses from the carry value on the books.

Louis J. Desy Jr.





Louis J. Desy Jr.