Hycroft Mining Holding Corp (HYMC)

[Wmucca]

Anyone thinking that this investment will turn around quickly simply hasn’t done their homework. This is most likely a 3-5 year investment with extremely high risk (and potentially high reward)
This is a very long term investment. There is no immediate production that will be coming from Hycroft. The majority of the ore is refractory and will require complex processing options. None of the existing technology/options required for oxidation of this refractory ore are permitted for or owned by Hycroft. This investment is further complicated by the balance sheet and site cash burn. Currently there is more debt than cash and the site is burning cash quickly. There are two tranches of debt as I understand it. The first lien debt is straight forward and if no solution is found this group will own the mine and shareholders will be pushed out with -0- return (again). The second lien debt as I understand it is held by some of the hedge funds that pushed this project into bankruptcy previously. It appears the interest is pick interest and is paid in shares which is a big problem for me.
The catalyst for share price improvement are as follows:
(1) PFS with a reasonable capital and return on capital
a. Q1 2024
(2) A path to fund the mill (if PFS is reasonable)
a. Q4 2024
(3) Mill constructed and commissioned
a. 2029 (if permits can be obtained in a reasonable time)
I still think it’s a good project if the current debt issues can be solved and management can come up with a financeable flow sheet.