Hycroft Mining Holding Corporation (HYMC) experienced an increase of 6.53% in the aftermarket. However, the last trading session closed at $0.6757 with a decrease of 5.68%.
Changes to Board of Directors – What’s up?
HYMC announced on 15th December 2021 that Eugene Davis has resigned from the Board of Directors. In the absence of a Chairman, Hycroft’s President and CEO, Diane R. Garrett, has taken the post of Acting Chairman of the Board. Moreover, Thomas Weng has also been named as the main independent director. Last but not the least, HYMC is quite hopeful that these changes will prove fruitful for the company’s future progress.
Third Quarter 2021 Financial Results – Latest Updates
HYMC reported third-quarter 2021 financial results on 12th November 2021. The company announced a $19.4 million increase in revenue over the third quarter of 2020. Not only this but the company has to face a $41.1 million year-to-date net loss in 2021. Cash used for operating activities totaled $27.1 million, while cash used for investing activities totaled $11.9 million, resulting in a $42.0 million decrease in cash since the beginning of the year.
Business Update & Third Quarter 2021 Operating Results
On 10th November 2021, HYMC announced a business update and a third-quarter 2021 business update. The Company plans to file its 10-Q for the fiscal year ended September 30, 2021. Moreover, Mr. David Kirsch, Chairman of the Board and a director of Hycroft, has quit and Mr. Kirsch was replaced as Chairman of the Board by Eugene Davis, who was nominated by the Hycroft Board of Directors on November 9, 2021. Furthermore, the Company was able to pre-strip overburden with some income offset by mining oxide and transition ore, allowing it to reach commercial size sulfide ore.
There is adequate time to synchronize the remaining pre-stripping with the start-up of commercial-scale sulfide operations now that the focus has shifted from two-stage heap oxidation and leach to a milling operation. In addition, the Company thinks that by taking this decision, it will be able to save money and devote more time and resources to its sulfide ore technical investigations. Lastly, drilling is projected to be finished by the end of 2021, with metallurgical research and testing continuing into the first half of 2022.
HYMC is pleased with the safety culture they have built and the consistent safety performance over the last year. However, the company members are working on the problems and economics of the pre-commercial size ROM business. The ROM operation had been optimizing the Company’s financial position up to this point, but with rising consumables costs and the probable schedule of commercial-scale sulfide operations in the future, it is no longer prudent to maintain the ROM operation as they move forward with the technical work. Lastly, the company thinks that they are adopting the most sensible strategy to de-risking the project, which includes crucial actions to continue the vital work required for the development of the significant mineral deposit.