Hycroft Mining Reports Q1 2022 Financials: Dwindling Revenues, Widening Losses, Strengthened Balance Sheet
Hycroft Mining Holding Corporation (NYSE: HYMC) reported late Wednesday highlights of its financial and operating results for Q1 2022. The firm reported US$9.2 million in quarterly revenue, a significant decline from Q1 2021’s US$19.0 million.
The topline revenue figure came from selling 4,773 gold ounces and 10,934 silver ounces, down from last year’s sales of 9,830 gold ounces and 57,236 silver ounces.
The mining firm also reported producing 5,358 gold ounces and 16,861 silver ounces during the quarter, which the firm said is in line with its forecast.
“We are extremely pleased with the results from the first quarter and particularly in welcoming two new investors – Eric Sprott and AMC Entertainment,” said CEO Diane Garrett. “Our strengthened balance sheet allows us to reduce our debt, complete our technical studies and launch a robust exploration program to capitalize on recent exploration results.”
Through a private placement offering, AMC Entertainment Holdings, Inc. (NYSE: AMC) and Eric Sprott purchased 22% equity each in the mining firm back in March 2022. As a result, Hycroft was able to raise US$194.4 million in gross proceeds through the private offering and a separate at-the-market equity offering program.
Nevertheless, BMO Capital Markets still believes the proceeds wouldn’t be enough to restart the firm’s mine.
“We still do not believe that this financing raises sufficient capital for Hycroft to re-enter full-scale production, there is now more comfort that the company can complete the necessary testing, drilling, and studies to raise the required capital for reentering full-scale production in the future,” the agency said.
But the raised financing allowed the firm to end the quarter with US$172.8 million in cash balance, pushing current assets to US$190.3 million. Current liabilities ended at US$15.3 million.
However, still with cost of sales greater than the revenue, the firm ended the quarter with a gross loss of US$7.8 million compared to a gross loss of US$10.4 million last year.
This further led the firm to end with a net loss of US$22.1 million, a significant drop from last year’s US$9.7 million. This also translates to US$0.27 loss per share.
Hycroft Mining last traded at US$1.40 on the NYSE, then surged as much as 33% when the market opened.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
