Hycroft Mining Holding Corporation
Q2 2020 Earnings Call Transcript
Published:
- Operator:
- Hello and thank you for joining the Hycroft Second Quarter 2020 Financial and Operating Results Call. At this time all participants are in listen-only mode. Please note this call may be recorded. [Operator Instructions] It is now my pleasure to turn today's conference over to Tracey. Please go ahead.
- Tracey Thom:
- Thank you, Bree. Good morning, everyone. Thank you for joining us today. Today Steve Jones, Interim President and CEO will be discussing our second quarter 2020 results for which we found our 10-Q and issued a press release this morning. The press release can be found on our website at www.hycroftmining.com. We urge you to read the Press Release and listen to this call in conjunction with reviewing the 10-Q which contains additional disclosures. Also, please note that some information provided during this call may include forward-looking statements that involve risks, uncertainties and assumptions. Even if these risks or uncertainties have been materialized or the assumptions proven correct, these results may differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking. A discussion of some of the risks uncertainties and assumptions are set forth in more detail in our press releases and SEC filings including the most recently filed 10-Q. We assume no obligation and did not intend to update any such forward-looking statements. I will now turn the call over to Steve Jones who will discuss the year-to-date results.
- Steve Jones:
- Thank you, Tracey. Good morning and good afternoon and welcome to the first Hycroft Mining Holding Corporation quarterly call. It's probably most people on the phone are aware on the 29 May Hycroft Mining Company a private company completed a recapitalization using a special purpose acquisition vehicle. And as a result of that, the Hycroft Mine is now owned by Hycroft Mining Holding Corporation, a listed company on NASDAQ. In July, 2019, about a year ago, M3 Engineering along with SRK and Hycroft Mining Corporation completed a feasibility study for one of the world's largest precious metal deposits with a resource in excess of 31 million gold equivalent ounces that feasibility study showed a net present value of $2.1 billion at metal prices of $1,300 gold and $17.33 silver. Today, we see gold and silver above $2,000 an ounce and $28 an ounce respectively. In fact, if you take Friday's closing spot prices of $2035 gold, $28.32 silver, the NPV is approximately $5.6 billion. As you would expect, a mine with a 34 year mine life is incredibly leveraged to the precious metal prices. To put it in a little bit different perspective, $100 change in gold is $300 to the NPV and a $1 change in silver is $125. To this point, the company has been putting the building blocks in place to take advantage of just such an opportunity as presents us today. We have this excellent capital-light permitted expansion in front of us. Taking advantage of what Hycroft Mining Corporation already had in place. Specifically last year, the owners of Hycroft Mining Corporation took the decision to restart the mine, and we began refurbishing equipment and adding infrastructure. We started up the crusher, replacing the fork cone crushers that we knew needed to be replaced. We started mining in April and we started producing gold in August. In order to build the future of Hycroft and continue to ramp up, we have four key focus areas
- Operator:
- This does conclude today's program. We appreciate your participation. And you may now disconnect.