Hycroft Mining Holding Corp (HYMC)

[LouisDesyjr]

Money lost in bk, look at the operating report

If you look at the September 2015 operating report, you will see that the company, after taking out the bankruptcy expenses, was still losing lots cash.

September 2015 operating report, document 1221:
https://cases.primeclerk.com/alliednevadagold/Home-DownloadPDF?id1=MjEyNzk1&id2=0

Page 6 shows, in the right hand column, a cumulative total from the filing date to the end of September.

Total cash receipts, $178 million
Total cash disbursements, $173 million
Net cash, positive of $5 million.

Now take out the effects of the bankruptcy:
Bank fees including DIP of $850K.
Loan interest of $3.6 million
Professional fees of $17 million
US Trustee fees of $74K
So BK expenses of about $21.5 million;

BUT there was DIP financing of 65 million that added to cash plus assets were sold for $21 million that added to cash.

So the final changes to cash with backing out the bankruptcy:
Net cash, positive of $5 million.
ADD BACK BK expenses of about $21.5 million;
MINUS DIP financing of 65 million
MINUS assets were sold for $21 million

( 5 + 21.5 - 65 - 21 ) = $59.5 decline is cash

If the bankruptcy did not happen, with none of the BK expenses, and none of the DIP financing and none of the asset sales, the company would have spent $59.5 million more than it took in.

Considering that the cash at end of period is only $8.7 million, it would have been impossible for the company to operate since it would have been tens of millions of dollars short on cash to pay operating expenses.

This end result is even more incredible when you consider that the company did not have to pay interest on the bonds or repay any pre filing liabilities while this was going on.

This is why I expect the company will end up being liquidated once the ore on the leach pads runs out. These dismal results are even with the company not mining new ore for the pads for a few months.

Not mining new ore for the leach pads is like owning a store, but not buying new good to replace the ones that sell. Eventually the store shelves are empty and the store has nothing else left to sell.

Louis J. Desy Jr.