#USA #Hycroft Mining #Winnemucca #Brimstone #Vortex Silver

Hycroft Mining Unveils Impressive $10 Billion NPV

Hycroft Mining Holding Corporation (Nasdaq: HYMC) has recently shared the results of its S-K 1300 Technical Report Summary (TRS) which reveals an extraordinary economic potential for its Hycroft Mine in Nevada. The report underscores a robust net present value (NPV) of $10 billion at current market prices of gold and silver, solidifying Hycroft’s position as a significant player in the precious metals sector.

Economic Snapshot

The TRS positions Hycroft as a large-scale, long-life mining asset with compelling economics. Its base case estimate shows:

• - NPV5: $5.4 billion pre-tax, $4.3 billion post-tax.
• - Internal Rate of Return (IRR): 18.9% pre-tax, 16.9% post-tax.
• - Payback Period: 4.7 years at base case prices, significantly improved to 2.9 years at spot prices.

Hycroft's project boasts significant potential leverage; for every $100 rise in gold prices, the post-tax NPV increases by $300 million, while a $5 hike in silver costs boosts it by $460 million.

Production Expectations

The TRS outlines an impressive production profile, forecasting a mine life of 51 years. During its lifetime, Hycroft is expected to produce approximately:

• - 10.4 million ounces of gold
• - 347.5 million ounces of silver
• - 15.1 million ounces of gold equivalent (AuEq)

The initial ten years will see an average production rate exceeding 330,000 ounces of AuEq.

Operational Efficiency

The project is designed using established processing methods, ensuring cost-effectiveness:

• - Existing infrastructure: Strategic positioning results in reduced capital expenditures.
• - Daily Processing Capacity: Designed to handle 57,100 tons of mineralized material.
• - Average cash cost: Estimated at $1,924 per ounce AuEq and an all-in sustaining cost of $2,147.

Initial capital costs amount to $2.4 billion with long-term sustaining costs projected at $3.1 billion.

Exploration and Opportunities

Hycroft isn’t just resting on its laurels. With the discovery of two high-grade silver systems, Brimstone and Vortex, the company is actively working to

• - Further drill and classify resources to enhance its economic assessments and operational options.
• - Explore additional processing techniques to maximize project viability and add ancillary revenue streams such as sulfuric acid production.

The current mineral resource relates only to about 15% of the approximately 64,000-acre land position, leaving substantial room for exploration and expansion initiatives.

Statement from Leadership

Diane R. Garrett, Executive Chair and CEO, has expressed enthusiasm over the report, stating, "This Technical Study confirms the scale, quality, and long-term potential of the Hycroft Mine. We believe that advancing the high-grade Brimstone and Vortex silver systems paves the way for further improving project economics and unlocking additional value."

Community and Environmental Considerations

The Hycroft Mine is located on public land overseen by the Bureau of Land Management (BLM). The company holds all necessary permits required for operations, emphasizing a commitment to responsible environmental stewardship and sustainable practices.

Overall, with a compelling blend of current operational advancements and solid long-term projections, Hycroft Mining continues to showcase its potential as a leading precious metals enterprise, equipped to meet the rising demands of the market while ensuring environmental responsibility.