Hycroft Mining Holding Corp (HYMC)

[LouisDesyjr]

It is possible to recover the gold at a profit with Hycroft sites?

One of the things I wondered about is how the mine never seems to be able to make a profit, no matter what is done, or why the revisions always seem to be downward. With a lot of resource companies, it is not unusual that the PV10 estimates are too high or optimistic, and when production starts the numbers are lower.

One thing that I ran across this week is a report claiming the g/ton in the mine area is less than one gram, which is terrible, even by today's standards. The typical standard I see today is that as long as there is 1 g/ton of ore the mine is a possible site. In past decades I ran across reports were the gold/ton was tens of grams and were the sites of very profitable mines; but today with all of the good mining sites 'mined out', anything at least 1g/ton is considered 'good' and minable. Of course, as gold prices go higher the better potential the mine is.

I found mention on SeekingAlpha that reference a company presentation, here:

Precious Metals Summit 2021 – Beaver Creek | September 8-11, 2021
Slide 28 shows less than one gram per ton of ore, which is 'not good'.

It seems that Hycroft should be 'mothballing' the mine and waiting for the price of gold to be higher before beginning operations, not trying to operate it at a loss like it is now.

But if these estimates are correct, it would explain how the site has all kinds of gold reserves, but never seems to be able to make a profit at mining them. The gold is not in high enough concentrations to make mining it out of the ground profitable at this price.

Louis J. Desy Jr.