Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 31, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38387 | ||
Entity Registrant Name | HYCROFT MINING HOLDING CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 82-2657796 | ||
Entity Address, Address Line One | 4300 Water Canyon Road | ||
Entity Address, Address Line Two | Unit 1 | ||
Entity Address, City or Town | Winnemucca | ||
Entity Address, State or Province | NV | ||
Entity Address, Postal Zip Code | 89445 | ||
City Area Code | 775 | ||
Local Phone Number | 304-0260 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 71,518,397 | ||
Entity Common Stock, Shares Outstanding | 196,803,459 | ||
Documents Incorporated by Reference | Portion of the registrant's Proxy Statement of the 2022 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 2021. | ||
Entity Central Index Key | 0001718405 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Class A common stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | ||
Trading Symbol | HYMC | ||
Security Exchange Name | NASDAQ | ||
Warrants to purchase common stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Warrants to purchase common stock | ||
Trading Symbol | HYMCW | ||
Security Exchange Name | NASDAQ | ||
Warrants to purchase common stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Warrants to purchase common stock | ||
Trading Symbol | HYMCZ | ||
Security Exchange Name | NASDAQ | ||
Warrants to purchase common stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Warrants to purchase common stock | ||
Trading Symbol | HYMCL | ||
Security Exchange Name | NASDAQ |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 166 |
Auditor Name | Plante & Moran PLLC |
Auditor Location | Southfield, Michigan |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash | $ 12,342 | $ 56,363 |
Accounts receivable | 0 | 426 |
Income taxes receivable | 1,530 | 0 |
Inventories | 11,069 | 12,867 |
Ore on leach pads | 10,106 | 38,041 |
Prepaids and other, net | 2,342 | 4,303 |
Current assets | 37,389 | 112,000 |
Ore on leach pads | 0 | 7,243 |
Plant, equipment, and mine development, net | 58,484 | 60,223 |
Restricted cash | 34,293 | 39,677 |
Other assets | 600 | 13,483 |
Assets held for sale | 11,558 | 0 |
Total assets | 142,324 | 232,626 |
Liabilities: | ||
Accounts payable and accrued expenses | 9,430 | 12,280 |
Debt, net | 16,666 | 5,120 |
Deferred gain on sale of royalty | 125 | 124 |
Other liabilities | 5,044 | 4,157 |
Current liabilities | 31,265 | 21,681 |
Warrant liabilities | 669 | 15,389 |
Debt, net | 143,638 | 142,665 |
Deferred gain on sale of royalty | 29,714 | 29,839 |
Asset retirement obligation | 5,193 | 4,785 |
Other liabilities | 339 | 1,650 |
Total liabilities | 210,818 | 216,009 |
Commitments and contingencies | ||
Stockholders' (deficit) equity | ||
Common stock, $0.0001 par value; 400,000,000 shares authorized; 60,433,395 issued and outstanding at December 31, 2021; and 59,901,306 issued and outstanding at December 31, 2020 | 6 | 6 |
Additional paid-in capital | 540,823 | 537,370 |
Accumulated deficit | (609,323) | (520,759) |
Total stockholders' (deficit) equity | (68,494) | 16,617 |
Total liabilities and stockholders' (deficit) equity | $ 142,324 | $ 232,626 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 | May 29, 2020 | May 28, 2020 |
Statement of Financial Position [Abstract] | ||||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 | |
Common stock, shares issued (in shares) | 60,433,395 | 59,901,306 | 50,160,042 | |
Common stock, shares outstanding (in shares) | 60,433,395 | 59,901,306 | 50,160,042 | 2,900,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Revenues | $ 110,734 | $ 47,044 |
Cost of sales: | ||
Production costs | 102,750 | 41,688 |
Depreciation and amortization | 8,544 | 2,894 |
Mine site period costs | 38,166 | 47,115 |
Write-down of inventories | 13,878 | 17,924 |
Total cost of sales | 163,338 | 109,621 |
Operating expenses: | ||
General and administrative | 14,619 | 21,084 |
Projects, exploration and development | 13,587 | 0 |
Write-off of deposit - Note 5 | 916 | 0 |
Accretion | 408 | 374 |
Impairment on equipment | 1,777 | 5,331 |
Loss from operations | (83,911) | (89,366) |
Other expenses: | ||
Interest expense, net of capitalized interest | (20,593) | (43,458) |
Fair value adjustment to warrants | 14,426 | (3,767) |
Loss on sale of equipment | (16) | 0 |
Interest income | 0 | 199 |
Loss before income taxes | (90,094) | (136,392) |
Income tax benefit - Note 17 | 1,530 | 0 |
Net loss | $ (88,564) | $ (136,392) |
Loss per share: | ||
Basic (in dollars per share) | $ (1.47) | $ (3.92) |
Diluted (in dollars per share) | $ (1.47) | $ (3.92) |
Weighted average shares outstanding: | ||
Basic (in shares) | 60,101,499 | 34,833,211 |
Diluted (in shares) | 60,101,499 | 34,833,211 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows used in operating activities: | ||
Net loss | $ (88,564) | $ (136,392) |
Adjustments to reconcile net loss for the period to net cash used in operating activities: | ||
Non-cash portion of interest expense | 16,812 | 38,843 |
Non-cash (gain) loss on fair value adjustment for warrant liabilities | (14,426) | 3,767 |
Depreciation and amortization | 8,429 | 5,849 |
Stock-based compensation | 2,264 | 2,380 |
Accretion | 408 | 374 |
Salary continuation and compensation costs - Note 9 | 0 | 2,116 |
Impairment charges and write-downs | 17,326 | 23,255 |
Loss on sale of equipment | 16 | 0 |
Phantom share compensation | 0 | 225 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 426 | (329) |
Income tax receivable | (1,530) | 0 |
Production-related inventories | 29,015 | (43,756) |
Materials and supplies inventories | (6,186) | (3,891) |
Prepaids and other assets, net | 1,690 | (2,946) |
Accounts payable and accrued expenses | (2,851) | 372 |
Other liabilities | 133 | 443 |
Interest payable | 0 | (818) |
Net cash used in operating activities | (37,038) | (110,508) |
Cash flows used in investing activities: | ||
Additions to plant, equipment, and mine development | (6,990) | (33,439) |
Proceeds from sales of equipment | 117 | 2,315 |
Net cash used in investing activities | (6,873) | (31,124) |
Cash flows (used in) provided by financing activities: | ||
Principal payments on Sprott Credit Agreement | (5,405) | (1,158) |
Principal payments on finance leases | (89) | 0 |
Proceeds from Public Offering | 0 | 83,515 |
Proceeds from sale of royalty to Sprott | 0 | 30,000 |
Proceeds from Recapitalization Transaction | 0 | 10,419 |
Proceeds from warrant exercise - Note 12 | 0 | 1 |
Transaction and issuance costs | 0 | (16,094) |
Net cash (used in) provided by financing activities | (5,494) | 188,705 |
Net (decrease) increase in cash and restricted cash | (49,405) | 47,073 |
Cash and restricted cash, beginning of period | 96,040 | 48,967 |
Cash and restricted cash, end of period | 46,635 | 96,040 |
Reconciliation of cash and restricted cash: | ||
Cash | 12,342 | 56,363 |
Restricted cash | 34,293 | 39,677 |
Total cash and restricted cash | 46,635 | 96,040 |
Sprott credit agreement, noncurrent portion | ||
Cash flows (used in) provided by financing activities: | ||
Proceeds from issuance of debt | 0 | 68,600 |
The 1.25 Lien notes | ||
Cash flows (used in) provided by financing activities: | ||
Proceeds from issuance of debt | 0 | 44,841 |
First Lien Agreement | ||
Cash flows (used in) provided by financing activities: | ||
Repayments of long-term debt | 0 | (125,468) |
Promissory Note | ||
Cash flows (used in) provided by financing activities: | ||
Repayments of long-term debt | 0 | (6,914) |
Private placement | ||
Cash flows (used in) provided by financing activities: | ||
Proceeds from private placement and forward purchase contract | 0 | 75,963 |
Forward Purchase Agreement | ||
Cash flows (used in) provided by financing activities: | ||
Proceeds from private placement and forward purchase contract | $ 0 | $ 25,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Conversion from Class B common stock | Private placement | Sprott credit agreement, noncurrent portion | Public Offering | 2.0 Lien Notes to common stock | [2] | 1.5 Lien Notes into common stock | Exchange of Seller's 1.25 Lien Notes for HYMC common stock | Common Stock | Common StockConversion from Class B common stock | Common StockPrivate placement | Common StockSprott credit agreement, noncurrent portion | Common StockPublic Offering | Common Stock2.0 Lien Notes to common stock | [2] | Common Stock1.5 Lien Notes into common stock | Common StockExchange of Seller's 1.25 Lien Notes for HYMC common stock | Treasury Stock | Treasury Stock2.0 Lien Notes to common stock | [2] | Additional Paid-in Capital | Additional Paid-in CapitalConversion from Class B common stock | [1] | Additional Paid-in CapitalPrivate placement | [1] | Additional Paid-in CapitalSprott credit agreement, noncurrent portion | [1] | Additional Paid-in CapitalPublic Offering | [1] | Additional Paid-in Capital2.0 Lien Notes to common stock | [1],[2] | Additional Paid-in Capital1.5 Lien Notes into common stock | [1] | Additional Paid-in CapitalExchange of Seller's 1.25 Lien Notes for HYMC common stock | [1] | Accumulated Deficit | Accumulated Deficit2.0 Lien Notes to common stock | [2] | Accumulated Deficit1.5 Lien Notes into common stock | |||||||
Beginning balance (in shares) at Dec. 31, 2019 | [1] | 345,431 | (22,103) | ||||||||||||||||||||||||||||||||||||||||||||
Beginning balance at Dec. 31, 2019 | $ (439,251) | $ 0 | [1] | $ 0 | [1] | $ 5,187 | [1] | $ (444,438) | |||||||||||||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued upon conversion (in shares) | [1] | 4,813,180 | 14,795,153 | 16,025,316 | 4,845,920 | (22,103) | |||||||||||||||||||||||||||||||||||||||||
Common shares issued upon conversion | $ 12,814 | $ 220,859 | $ 145,685 | $ 48,459 | $ 2 | [1] | $ 2 | [1] | $ 12,814 | $ 146,217 | $ 160,252 | $ 48,459 | $ 74,640 | $ (14,569) | |||||||||||||||||||||||||||||||||
Common shares issued (in shares) | [1] | 101 | 7,596,309 | 496,634 | 9,583,334 | ||||||||||||||||||||||||||||||||||||||||||
Common shares issued | 1 | $ 75,963 | $ 6,282 | $ 83,514 | $ 1 | [1] | $ 1 | [1] | 1 | [1] | $ 75,962 | $ 6,282 | $ 83,513 | ||||||||||||||||||||||||||||||||||
Unredeemed SPAC shares of MUDS public stockholders (in shares) | [1] | 1,197,704 | |||||||||||||||||||||||||||||||||||||||||||||
Unredeemed SPAC shares of MUDS public stockholders | 3,723 | 3,723 | [1] | ||||||||||||||||||||||||||||||||||||||||||||
Common shares issued to underwriter (in shares) | [1] | 44,395 | |||||||||||||||||||||||||||||||||||||||||||||
Common shares issued to underwriter | 444 | 444 | [1] | ||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | [3] | 1,802 | 1,802 | [1] | |||||||||||||||||||||||||||||||||||||||||||
Equity issuance costs | (8,255) | (8,255) | [1] | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation costs | 388 | 388 | [1] | ||||||||||||||||||||||||||||||||||||||||||||
Private Warrants transferred to Public Warrants | 581 | 581 | [1] | ||||||||||||||||||||||||||||||||||||||||||||
Shares issued under stock-based compensation program (in shares) | [1] | 157,829 | |||||||||||||||||||||||||||||||||||||||||||||
Shares issued under stock-based compensation program | 0 | ||||||||||||||||||||||||||||||||||||||||||||||
Net loss | (136,392) | (136,392) | |||||||||||||||||||||||||||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2020 | [1] | 59,901,306 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance at Dec. 31, 2020 | 16,617 | $ 6 | [1] | $ 0 | [1] | 537,370 | [1] | (520,759) | |||||||||||||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units (in shares) | [1] | 394,589 | |||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 765 | 765 | [1] | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation costs | 2,185 | 2,185 | [1] | ||||||||||||||||||||||||||||||||||||||||||||
Stock issuance - other (in shares) | 137,500 | ||||||||||||||||||||||||||||||||||||||||||||||
Stock issuance - other | 209 | 209 | |||||||||||||||||||||||||||||||||||||||||||||
Private Warrants transferred to Public Warrants | [1] | 294 | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | (88,564) | (88,564) | |||||||||||||||||||||||||||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2021 | [1] | 60,433,395 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance at Dec. 31, 2021 | $ (68,494) | $ 6 | [1] | $ 0 | [1] | $ 540,823 | [1] | $ (609,323) | |||||||||||||||||||||||||||||||||||||||
[1] | Retroactively restated January 1, 2020 and March 31, 2020 for the reverse recapitalization as described in Note 2 - Summary of Significant Accounting Policies, and the restated reclassification of the Company's 5-Year Private Warrants as described in Note 12 - Warrant Liabilities . | ||||||||||||||||||||||||||||||||||||||||||||||
[2] | Includes 3,511,820 shares of HYMC common stock received by Seller that were surrendered by the Company. | ||||||||||||||||||||||||||||||||||||||||||||||
[3] | As of December 31, 2021 there were 21,256 unissued shares underlying restricted stock units that had vested but have not been converted into issued and outstanding shares of common stock. |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) (Parentheticals) | 12 Months Ended |
Dec. 31, 2021shares | |
Unissued (in shares) | 21,256 |
2.0 Lien Notes to common stock | |
Stock surrendered (in shares) | 3,511,820 |
Company Overview
Company Overview | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Overview | Company Overview Hycroft Mining Holding Corporation (formerly known as Mudrick Capital Acquisition Corporation ("MUDS")) and its subsidiaries (collectively, “Hycroft”, the “Company”, “we”, “us”, “our”, "it", "HYMC") is a U.S.-based gold and silver company that is focused on operating and developing its wholly owned Hycroft Mine in a safe, environmentally responsible, and cost-effective manner. The Hycroft Mine is located in the State of Nevada and the corporate office is located in Denver, Colorado. The Company restarted pre-commercial scale open pit mining operations at the Hycroft Mine during the second quarter of 2019 and began producing and selling gold and silver during the third quarter of 2019. The Company's operating plan until November 2021 was primarily focused on developing the novel two-stage heap oxidation and leach process ("Novel Process") detailed in the Hycroft Technical Report Summary, Heap Leaching Feasibility Study, prepared in accordance with the requirements of the Modernization Rules, with an effective date of July 31, 2019 ("2019 Hycroft TRS"). Subsequent to November 2021, the Company's operating plan has been focused on advancing evaluations and developing technical studies for milling sulfide ore so that the Company can evaluate alternative processing technologies. Based upon the Company's findings in 2021, including an analysis completed by an independent third-party research laboratory and independent reviews by two metallurgical consultants, the Company does not believe the Novel Process, as currently designed in the 2019 Hycroft TRS, is economic at current metal prices or those metal prices used in the 2019 Hycroft TRS. Additionally, as announced on November 10, 2021, as a result of current and expected ongoing cost pressures for many of the reagents and consumables used at the Hycroft Mine, and the timeline for completing the updated technical studies in early 2022, the Company discontinued pre-commercial scale mining at its ROM operation. The Company will continue producing gold and silver from ore on the leach pads as long as it is economic and will right-size the workforce to meet ongoing operational requirements. In February 2022, Hycroft, along with its third-party consultants, completed and filed the Initial Assessment Technical Report Summary for the Hycroft Mine ("2022 Hycroft TRS") which included a mineral resource estimate utilizing a milling and acid pressure oxidation ("Acid POX") process for sulfide mineralization and heap leaching process for oxide and transition mineralization. The Company will continue to build on the work to date and investigate opportunities identified through progressing the technical and data analyses leading up to the 2022 Hycroft TRS and will provide an updated technical report at an appropriate time. On May 29, 2020, the Company consummated the Recapitalization Transaction (as defined below) as contemplated by a purchase agreement dated January 13, 2020, as amended on February 26, 2020 (the “Purchase Agreement”), by and among the Company, MUDS Acquisition Sub, Inc. (“Acquisition Sub”) and Hycroft Mining Corporation ("Seller"). Pursuant to the Purchase Agreement, Acquisition Sub acquired all of the issued and outstanding equity interests of the direct subsidiaries of Seller and substantially all of the other assets of Seller and assumed substantially all of the liabilities of Seller in a business combination and reverse recapitalization transaction (the "Recapitalization Transaction"). See Note 3 - Recapitalization Transaction |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of presentation These consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Recapitalization Transaction The Recapitalization Transaction (see Note 3 - Recapitalization Transaction ) was accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, for financial reporting purposes, MUDS has been treated as the “acquired” company and Hycroft Mining Corporation (“Seller”) has been treated as the “acquirer”. This determination was primarily based on (1) stockholders of Seller immediately prior to the Recapitalization Transaction having a relative majority of the voting power of the combined entity; (2) the operations of Seller prior to the Recapitalization Transaction comprising the only ongoing operations of the combined entity; (3) four of the seven members of the Board of Directors immediately following the Recapitalization Transaction were directors of Seller immediately prior to the Recapitalization Transaction; and (4) executive and senior management of Seller comprises the same for the Company. Based on Seller being the accounting acquirer, the financial statements of the combined entity represent a continuation of the financial statements of Seller, with the acquisition treated as the equivalent of Seller issuing stock for the net assets of MUDS, accompanied by a recapitalization. The net assets of MUDS were recognized at historical cost as of the date of the Recapitalization Transaction, with no goodwill or other intangible assets recorded. Comparative information prior to the Recapitalization Transaction in these financial statements are those of Seller and the accumulated deficit of Seller has been carried forward after the Recapitalization Transaction. The shares and net loss per common share prior to the Recapitalization Transaction have been retroactively restated as shares reflecting the exchange ratio established in the Recapitalization Transaction to effect the reverse recapitalization (1 Seller share for 0.112 HYMC share). See Note 3 - Recapitalization Transaction for additional information. Liquidity As of December 31, 2021, the Company had available cash on hand of $12.3 million and working capital of $6.1 million which, along with additional funds received subsequent to year-end, is expected to provide it with the necessary liquidity to fund its operating and investing requirements and future obligations as they become due within the next twelve months from the date of this filing. While the Company expects to continue processing gold and silver ore on the leach pads after ceasing mining operations for the pre-commercial scale ROM operation and partially offset the cash that is projected to be used in its operations and investing activities, the Company does not expect to generate net positive cash from operations for the foreseeable future. Accordingly, the Company will be dependent on its unrestricted cash and other sources of cash to fund its business. As discussed in Note 25 - Subsequent Events, the Company raised gross proceeds of $194.4 million in March 2022 through the following equity financings: • On March 14, 2022, the Company entered into subscription agreements with two private investors pursuant to which the Company agreed to sell an aggregate of 46,816,480 units at a purchase price of $1.193 per unit for total net proceeds of $55.9 million. • On March 15, 2022, the Company implemented an at-the-market offering program pursuant to which the Company has registered the offer and sale from time to time of its common stock having an aggregate offering price of up to $500.0 million of gross proceeds. Under the at-the-market offering, the Company sold 89,553,602 shares of common stock for net proceeds of $138.6 million . Also, as discussed in Note 25 - Subsequent Events , as a result of the equity financings above, the Company reached an agreement with the Lender (as hereinafter defined) with respect to the Sprott Credit Agreement which required the Company to prepay principal under the facility in the amount of $10.0 million following the Company’s receipt of the $55.9 million cash proceeds discussed above. In addition, the Company made the additional prepayment of $13.9 million on March 30, 2022. In addition to the above equity financings, the Company will continue to evaluate alternatives to raise additional capital necessary to fund the future development of the Hycroft Mine and will continue to explore other strategic initiatives to enhance stockholder value. Historically, the Company has been dependent on various forms of debt and equity financing to fund its business. While the Company has been successful in the past raising funds through equity and debt financings, no assurance can be given that additional financing will be available to it in amounts sufficient to meet the Company’s needs or on terms acceptable to the Company. In the event that funds are not available, the Company may be required to materially change its business plans. Use of estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in these financial statements and accompanying notes. The more significant areas requiring the use of management estimates and assumptions relate to: recoverable gold and silver ounces on stockpiles, leach pads and in-process inventories; timing of near-term ounce production and related sales; the useful lives of long-lived assets; probabilities of future expansion projects; estimates of mineral resources; estimates of life-of-mine production timing, volumes, costs and prices; current and future mining and processing plans; environmental reclamation and closure costs and timing; deferred taxes and related valuation allowances; estimates of the fair value of liability classified warrants, and estimates of fair value for asset impairments and financial instruments. The Company bases its estimates on technical analyses and measurements, historical experience and various other assumptions that are believed to be reasonable at the time the estimate is made. Actual results may differ from amounts estimated in these financial statements, and such differences could be material. Accordingly, amounts presented in these financial statements are not indicative of results that may be expected for future periods. Cash Cash consisted of cash balances as of December 31, 2021. The Company has not experienced any losses on cash balances and believes that no significant risk of loss exists with respect to its cash. As of December 31, 2021, and December 31, 2020, the Company held no cash equivalents. Restricted cash Restricted cash is held as collateral for surety bonds that the Company uses to fulfill financial assurance obligations related to reclamation activity (see Note 13 - Asset Retirement Obligation for further detail.) Restricted cash is excluded from cash and is listed separately on the Consolidated Balance Sheets. As of December 31, 2021, and December 31, 2020, the Company held $34.3 million and $39.7 million in restricted cash, respectively. See Note 7 - Restricted Cash for additional information. Accounts receivable Accounts receivable consists of amounts due from customers for gold and silver sales. The Company evaluates the customers’ credit risk, payment history and financial condition to determine whether an allowance for doubtful accounts is necessary. The Company did not have accounts receivable amounts outstanding as of December 31, 2021 and the Company did not have a recorded allowance for doubtful accounts as of December 31, 2020. Inventories and Ore on Leach Pads The Company’s production-related inventories include: (i) stockpiles; (ii) ore on leach pads; (iii) in-process inventories; and (iv) doré, off-site carbon and slag finished goods. Production-related inventories are carried at the lower of average cost or net realizable value per estimated recoverable gold ounce, which is computed for each category of production-related inventories at each reporting period. Net realizable value represents the estimated future gold revenue of production-related inventories after adjusting for silver by-product revenue and deductions for further processing, refining, and selling costs. The estimated future revenue is calculated using sales prices based on the London Bullion Market Association’s (“LBMA”) quoted period-end gold prices. Estimates for silver revenue by-products credits is based on LBMA quoted period-end silver prices and deductions for estimated costs to complete reflect the Company’s historical experience and expected processing, refining and selling plans. Actual net realizable values for gold sales may be different from such estimates. Changes to inputs and estimates resulting from changes in facts and circumstances are recognized as a change in management estimate on a prospective basis. Stockpiles Stockpiles represent ore that has been extracted from the mine and is available for further processing. Stockpiles are subject to oxidation over time which can impact expected future recoveries depending on the process recovery method. The value of the stockpiles is measured by estimating the number of tons added and removed from the stockpiles, the number of contained ounces based on assay data, and the estimated metallurgical recovery rates based on the expected processing method. Costs are added to the value of the stockpiles based on current mining costs, including applicable overhead and depreciation and amortization relating to the Company's mining operations. Ore on leach pads Ore on leach pads represents ore that has been mined and placed on leach pads where a solution is applied to dissolve the contained gold and silver. Costs are added to ore on leach pads based on current mining costs, including reagents, leaching supplies, and applicable depreciation and amortization relating to mining operations. As gold-bearing materials are further processed, costs are transferred from ore on leach pads to in-process inventories at an average cost per estimated recoverable ounce of gold. Although the quantities of recoverable metal placed on the leach pads are reconciled by comparing the grades of ore placed on pads to the quantities of metal actually recovered (metallurgical balancing), the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored, and estimates are refined based on actual results over time and changes in future estimates. In-process inventories In-process inventories represent gold-bearing concentrated materials that are in the process of being converted to a saleable product using a Merrill-Crowe plant or carbon-in-column processing method. As gold ounces are recovered from in-process inventories, costs, including conversion costs are transferred to precious metals inventory at an average cost per ounce of gold. Precious metals inventory Precious metals inventory consists of doré and loaded carbon containing both gold and silver, which is ready for offsite shipment or at a third-party refiner before being sold to a third party. As gold ounces are sold, costs are recognized in Production costs and Depreciation and amortization in the consolidated statements of operations at an average cost per gold ounce sold. Materials and supplies Materials and supplies are valued at the lower of average cost or net realizable value. Cost includes applicable taxes and freight. The Company monitors its materials and supplies for turnover and obsolescence and records losses for excess and obsolete inventory, as appropriate. Plant, equipment, and mine development, net Expenditures for new facilities and equipment, and expenditures that extend the useful lives or increase the capacity of existing facilities or equipment are capitalized and recorded at cost. Such costs are depreciated using either the straight-line method over the estimated productive lives of such assets or the units-of-production method (when actively operating). For equipment and facilities that are constructed by the Company, interest is capitalized to the cost of the underlying asset while being constructed until such asset is ready for its intended use. See Note 6 - Plant, Equipment, and Mine Development, Net for additional information. Mine development Mine development costs include the cost of engineering and metallurgical studies, drilling and assaying costs to delineate an ore body, environmental permitting costs, and the building of infrastructure. Any of the above costs incurred before mineralization is classified as proven and probable mineral reserves are expensed. Drilling, engineering, metallurgical, and other related costs are capitalized for an ore body where proven and probable reserves exist and the activities are directed at obtaining additional information on the ore body, converting non-reserve mineralization to proven and probable mineral reserves, infrastructure planning, or supporting the environmental impact statement and permitting activities. All other exploration drilling costs are expensed as incurred. Drilling costs incurred during the production phase for operational ore control are allocated to production-related inventories and upon the sale of gold ounces are included in Cost of sales on the Consolidated Statements of Operations. Mine development costs are amortized using the units-of-production method based upon estimated recoverable ounces in proven and probable mineral reserves. To the extent such capitalized costs benefit an entire ore body, they are amortized over the estimated life of that ore body. Capitalized costs that benefit specific ore blocks or areas are amortized over the estimated life of that specific ore block or area. Recoverable ounces are determined by the Company based upon its proven and probable mineral reserves and estimated metal recoveries associated with those mineral reserves. Impairment of long-lived assets The Company’s long-lived assets consist of Plant, equipment, and mine development, net . The Company reviews and evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Events that may trigger a test for recoverability include, but are not limited to, significant adverse changes to projected revenues, costs, or future expansion plans or changes to federal and state regulations (with which the Company must comply) that may adversely impact the Company’s current or future operations. An impairment is determined to exist if the total projected future cash flows on an undiscounted basis are less than the carrying amount of a long-lived asset group. An impairment loss is measured and recorded based on the excess carrying value of the impaired long-lived asset group over fair value. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. The Company’s estimates of future cash flows and estimates of fair value are based on numerous assumptions and are subject to significant risks and uncertainties. See Note 6 - Plant, Equipment, and Mine Development, Net for additional information. During the year ended December 31, 2021, the Company determined a triggering event had occurred, as a result of the Company ceasing mining operations and determining the Novel Process used in the 2019 Hycroft TRS was no longer expected to be economic. In addition, the 2022 Hycroft TRS did not include estimates of proven and probable reserves. As a result, the Company did not have a basis for projecting future cash flows on an undiscounted basis. The Company used a market-based approach for determining fair value based on sales transactions of comparable assets. Because the Company's estimated fair value of long-lived assets held and used exceeded their carrying value, the Company determined that, except for an impairment charge of $6.7 million recognized for capitalized Mine development , no additional impairments of long-lived assets were necessary at December 31, 2021. See Note 6 - Plant, Equipment, and Mine Development, Net for discussion of impairment of capitalized Mine development Assets held for sale The Company classifies long-lived assets or disposal groups to be sold as held for sale in the period in which all of the following criteria are met: (1) management, having the authority to approve the action, commits to a plan to sell the asset or disposal group; (2) the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets or disposal groups; (3) an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; (4) the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the asset or disposal group beyond one year; (5) the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a long-lived asset or disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held-for-sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset or disposal group until the date of sale. The Company assesses the fair value of a long-lived asset or disposal group less any costs to sell each reporting period it remains classified as held for sale and report any subsequent changes as an adjustment to the carrying value of the asset or disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale. Upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, the Company ceases depreciation and reports long-lived assets and/or the assets and liabilities of the disposal group as Assets held for sale , in our Consolidated Balance Sheets. Deferred gain on sale of royalty The Company's Deferred gain on sale of royalty is carried at amortized cost with reductions calculated by dividing actual gold and silver production by the estimated total life-of-mine production from proven and probable mineral reserves. Any updates to proven and probable mineral reserves or the estimated life-of-mine production profile would result in prospective adjustments to the amortization calculation used to reduce the carrying value of the royalty obligation. Amortization reductions to the Deferred gain on sale of royalty are recorded to Production costs which is included in Cost of sales . A portion of the Company’s Deferred gain on sale of royalty is classified as current based upon the estimated gold and silver expected to be produced over the next 12 months. The Deferred gain on sale of royalty and its embedded features do not meet the requirements for derivative accounting. Asset retirement obligation The Company’s mining and exploration activities are subject to various federal and state laws and regulations governing the protection of the environment. The Company’s asset retirement obligation (“ARO”), associated with long-lived assets are those for which there is a legal obligation to settle under existing law, statute, written or oral contract or by legal construction. The Company’s ARO relates to its operating property, the Hycroft Mine, and was recognized as a liability at fair value in the period incurred. An ARO, which is initially estimated based on discounted cash flow estimates, is accreted to full value over time using the expected timing of future payments through charges to Accretion in the Consolidated Statements of Operations. In addition, asset retirement costs (“ARC”) are capitalized as part of the related asset’s carrying value and are depreciated on a straight-line method or units of production basis over the related long-lived asset’s useful life. The Company’s ARO is adjusted annually, or more frequently if necessary, to reflect changes in the estimated present value resulting from revisions to the timing or amount of reclamation and closure costs. Estimated mine reclamation and closure costs, may increase or decrease significantly in the future as a result of changes in regulations, mine plans, cost estimates, or other factors. Revenue recognition The Company recognizes revenue for gold and silver sales when it satisfies the performance obligation of transferring finished inventory to the customer, which generally occurs when the refiner notifies the customer that gold has been credited or irrevocably pledged to their account, at which point the customer obtains the ability to direct the use and obtain substantially all of the remaining benefits of ownership of the asset. The transaction amount is determined based on the agreed upon sales prices and the number of ounces delivered. Concurrently, the payment date is agreed upon, which is usually within one week of the sale date. The majority of sales are in the form of doré bars, but the Company also sells gold and silver laden carbon and slag, a by-product. All sales are final. Mine site period costs Mine site period costs are generally the result of costs related to activities at the Hycroft Mine that do not qualify for capitalization to production-related inventories or adjustments to production inventories that are the result of recurring or significant downtime or delays, unusually high levels of repairs, inefficient operations, overuse of processing reagents, inefficient cost-volume structures, or other costs and activities, and cannot be recorded to production-related inventories based on the threshold established by the calculation of the estimated net realizable value per ounce of gold, which incorporates estimated future processing, refining, and selling costs, as well as the value for silver by-product. The following table summarize the components of Mine site period costs (dollars in thousands): Year Ended December 31, 2021 2020 Production related costs $ 36,512 $ 44,127 Capitalized depreciation and amortization 1,654 2,988 Total $ 38,166 $ 47,115 Stock-based compensation Stock-based compensation costs for non-employee Directors and eligible employees are measured at fair value on the date of grant. Stock-based compensation costs are charged to General and administrative on the Consolidated Statements of Operations over the requisite service period. The fair value of awards is determined using the stock price on either the date of grant (if subject only to service conditions) or the date that the Compensation Committee of the Board of Directors establishes applicable performance targets (if subject to performance conditions). The Company records forfeitures as they occur. See Note 16 - Stock-Based Compensation for additional information. Income taxes The Company accounts for income taxes using the liability method, recognizing certain temporary differences between the financial reporting basis of the Company’s liabilities and assets and the related income tax basis for such liabilities and assets. This method generates either a net deferred income tax liability or asset for the Company, as measured by the statutory tax rates in effect at the anticipated time of reversal. The Company derives its deferred income tax provision or benefit by recording the change in either the net deferred income tax liability or asset balance for the year. See Note 17 - Income Taxes for additional information. The Company’s deferred income tax assets include certain future tax benefits. The Company records a valuation allowance against any portion of those deferred income tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized. Evidence evaluated includes past operating results, forecasted earnings, estimated future taxable income, and prudent and feasible tax planning strategies. The assumptions utilized in determining future taxable income require significant judgment and are consistent with the plans and estimates used to manage the underlying business. As necessary, the Company also provides reserves against the benefits of uncertain tax positions taken on its tax filings. The necessity for and amount of a reserve is established by determining, based on the weight of available evidence, the amount of benefit that is more likely than not to be sustained upon audit for each uncertain tax position. The difference, if any, between the full benefit recorded on the tax return and the amount more likely than not to be sustained is recorded as a liability on the Company’s Consolidated Balance Sheets unless the additional tax expense that would result from the disallowance of the tax position can be offset by a net operating loss, a similar tax loss, or a tax credit carryforward. In that case, the reserve is recorded as a reduction to the deferred tax asset associated with the applicable net operating loss, similar tax loss, or tax credit carryforward. Fair value measurements Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements , defines fair value and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis; Level 2 – Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Certain financial instruments, including Cash , Restricted cash , Accounts receivable , Prepaids and other, net , and Accounts payable and accrued expenses, are carried at cost, which approximates their fair value due to the short-term nature of these instruments. See Note 20 - Fair Value Measurements for additional information. Warrants Warrant liabilities The Company accounts for certain warrants to purchase shares of the Company’s common stock that were issued to the SPAC sponsor and/or underwriter in a private placement and/or pursuant to a forward purchase contract (the “5-Year Private Warrants”) that are not indexed to the Company’s own stock as Warrant liabilities at fair value on the Consolidated Balance Sheets. These warrants are subject to remeasurement at each balance sheet date and any change in fair value is recognized as a component of Other expenses on the Consolidated Statements of Operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the (i) exercise or expiration of the 5-Year Private Warrants or (ii) the transfer of any 5-Year Private Warrants to any person who is not a permitted transferee, at which time the warrant liability will be reclassified to Additional paid-in capital on the Consolidated Balance Sheets. Equity classified warrants Warrants that are considered indexed to the Company's own stock, which are not required to be recorded as a liability are measured at fair value at the date of issuance and included in Additional paid-in capital on the Consolidated Balance Sheets and do not require subsequent remeasurement of the fair value. Projects, exploration and development Costs incurred for exploration, development and other project related expenses that do not qualify for capitalization are expensed within Projects, exploration and development , which is included in Operating expenses on the Consolidated Statements of Operations. Projects, exploration and development costs include expenditures for: (i) publishing technical studies; (ii) conducting geological studies; (iii) oversight and project management; and (iv) drilling, engineering, and metallurgical activities related to exploration and development. Recently adopted accounting pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, Leases ("ASU 2016-02"). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated statements of operations and classification within the consolidated statement of cash flows. In October 2019, the FASB issued ASU No. 2019-10, Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) ("ASU 2019-10") that amends the effective date of ASU 2016-02 for emerging growth companies, such that the new standard is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company early adopted this standard as of January 1, 2021 using the modified retrospective approach. The comparative information has not been adjusted and continues to be reported under the accounting standard in effect for those periods. The new standard offers a number of optional practical expedients of which the Company elected the following: Transition elections: The Company elected the land easements practical expedient whereby existing land easements were not reassessed under the new standard. Ongoing accounting policy elections : The Company elected the short-term lease recognition exemption whereby right-of-use assets and lease liabilities will not be recognized for leasing arrangements with terms less than one year. The Company elected the practical expedient to not separate lease and non-lease components for the majority of its underlying asset classes. Based on contracts outstanding at January 1, 2021, the adoption of the new standard resulted in the recognition of additional operating lease ROU assets and lease liabilities of $0.1 million, and finance lease ROU assets and lease liabilities of $0.3 million. ROU assets are included in Plant, equipment, and mine development, net on the Consolidated Balance Sheets, and lease liabilities are included in the non-current portion of Other liabilities on the Consolidated Balance Sheets. Adoption of this standard did not have a material impact to the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows. Accounting pronouncements not yet adopted In December of 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), as part as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Amendments include removal of certain exceptions to the general principles of ASC 740, Income Taxes and simplification in several other areas such |
Recapitalization Transaction
Recapitalization Transaction | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Recapitalization Transaction | Recapitalization Transaction Recapitalization Transaction with MUDS On May 29, 2020, the Company, formerly known as Mudrick Capital Acquisition Corporation, consummated a business combination transaction (the “Recapitalization Transaction”) as contemplated by a purchase agreement dated January 13, 2020, as amended on February 26, 2020 (the “Purchase Agreement”), by and among the Company, MUDS Acquisition Sub, Inc. (“Acquisition Sub”) and Hycroft Mining Corporation (“Seller”). Pursuant to the Purchase Agreement, Acquisition Sub acquired all of the issued and outstanding equity interests of the direct subsidiaries of Seller and substantially all of the other assets of Seller and assumed substantially all of the liabilities of Seller. In conjunction with the Recapitalization Transaction, Seller’s indebtedness existing prior to the Recapitalization Transaction was either repaid, exchanged for indebtedness of the Company, exchanged for shares of common stock or converted into shares of Seller common stock, and the Company’s post-Recapitalization Transaction indebtedness included amounts drawn under the Sprott Credit Agreement and the assumption of the newly issued Subordinated Notes (as such are defined herein). Upon closing of the Recapitalization Transaction, the Company’s unrestricted cash available for use totaled $68.9 million, and the number of shares of common stock issued and outstanding totaled 50,160,042. In addition, upon closing, the Company had 34,289,999 outstanding warrants to purchase an equal number of shares of common stock at $11.50 per share and 12,721,623 warrants to purchase 3,210,213 shares of common stock at a price of $44.82 per share. Prior to the Recapitalization Transaction, the Company was a blank check special purpose acquisition corporation (“SPAC”) with no business operations and on May 29, 2020 had assets and liabilities consisting primarily of $10.4 million of cash and $6.9 million of liabilities for accounts payable, accrued expenses, and deferred underwriting fees. As described in Note 2 - Summary of Significant Accounting Policies , the Company accounted for the Recapitalization Transaction as a reverse recapitalization in which the Company’s financial statements reflect a continuation of Seller. The material financial effects and actions arising from the Recapitalization Transaction, which are described in detail elsewhere in these financial statements, were as follows (the defined terms that follow are included elsewhere in these financial statements): Common stock and warrant transactions a. The Company issued, in a private placement transaction, an aggregate of 7.6 million shares of common stock and 3.25 million warrants to purchase shares of common stock at a price of $10.00 per share for aggregate gross cash proceeds of $76.0 million. The warrants were exercisable into 3.25 million shares for $11.50 per warrant. These warrants are included with the 5-Year Public Warrants because they may be mandatorily redeemed under the terms in the warrant agreement. Refer to Note 13 - Stockholders' Equity for further detail. b. Pursuant to a forward purchase contract, the Company issued 3.125 million shares of common stock and 2.5 million warrants to purchase shares of common stock having substantially the same terms as the private placement warrants for gross cash proceeds of $25.0 million. The Company also converted 5.2 million shares of MUDS Class B common stock into the same number of shares of common stock, of which 3.5 million shares were surrendered to Seller as transaction consideration. The 2.5 million warrants were exercisable into 2.5 million shares at an exercise price of $11.50 per warrant. These warrants are included with the 5-Year Private Warrants because they cannot be mandatorily redeemed under the terms of the warrant agreement. Refer to Note 12 - Warrant Liabilities for further detail. c. The Company received $10.4 million of cash proceeds from the SPAC trust associated with the 1.2 million shares of common stock that were not redeemed by the Company's public stockholders. Additionally, the Company has outstanding 27.9 million warrants to purchase shares of common stock at a price of $11.50 per share that were issued in a unit offering to the Company's public stockholders at the time of the SPAC’s initial public offering and the Company has outstanding 7.74 million warrants to purchase shares of common stock at a price of $11.50 per share that were sold to the Sponsor and underwriter, Cantor Fitzgerald & Co. These warrants are included with the 5-Year Private Warrants because they cannot be mandatorily redeemed under the terms of the warrant agreement. Refer to Note 12 - Warrant Liabilities for further detail. d. The Company assumed the obligations with respect to 12.7 million Seller Warrants (as defined herein), which Seller Warrants became exercisable to purchase shares of common stock at an exercise price as of July 1, 2020 and December 31, 2020, of $44.82 per share (see Note 12 - Warrant Liabilities ). Since July 1, 2020, each Seller Warrant was exercisable into approximately 0.2523 shares of common stock for a total of 3,210,213 shares of common stock. The exercise price and the conversion factor were further adjusted during the year ended December 31, 2020 to an exercise price of $41.26 per share and each Seller Warrant was exercisable for 0.27411 shares of common stock for a total of 3,487,168 shares of common stock. Subsequently, as of January 19, 2021, the Seller Warrants were subject to a further adjustment to an exercise price of $40.31 per share and each Seller Warrant was exercisable for 0.28055 shares of common stock for a total of 3,569,051 shares of common stock. Refer to Note 12 - Warrant Liabilities for further detail. Seller’s pre-Recapitalization Transaction indebtedness a. Seller’s $125.5 million First Lien Agreement with the Bank of Nova Scotia, as agent, and $6.9 million promissory note plus accrued and unpaid interest were repaid with cash (see Note 10 - Debt, Net ). b. $48.5 million of Seller’s 1.25 Lien Notes were exchanged, and subsequently cancelled, for 4.85 million shares of common stock and the remaining $80.0 million of Seller’s 1.25 Lien Notes were exchanged for $80.0 million in aggregate principal of new Subordinated Notes of the Company (see Note 10 - Debt, Net ). c. After giving effect to the 1.5 Lien Notes’ 110% repurchase feature, $145.7 million of Seller’s 1.5 Lien Notes plus accrued and unpaid interest were exchanged, and subsequently cancelled, for 16.0 million shares of common stock (see Note 10 - Debt, Net ). d. Prior to close, a total of $221.3 million of Seller’s 2.0 Lien Notes were converted into 132.8 million shares of Seller common stock and, together with the existing 2.9 million shares of Seller’s common stock issued and outstanding, received transaction consideration of 15.1 million shares of common stock distributed by Seller, including 3.5 million surrendered shares received by Seller from the Company (see Note 10 - Debt, Net ). The consideration initially received by Seller was promptly distributed to the its stockholders on a pro rata basis pursuant to Seller’s plan of dissolution. Sprott entity transactions a. The Company assumed the amended Sprott Credit Agreement and was advanced $70.0 million of cash, subject to an original issue discount of 2.0% (see Note 10 - Debt, Net ). Pursuant to the Sprott Credit Agreement, the Company issued approximately 0.5 million shares of common stock to the Lender, which was equal to 1.0% of the Company’s post-closing shares of common stock issued and outstanding. b. The Company entered into the Royalty Agreement among Hycroft Mining Holding Corporation, its wholly subsidiary Hycroft Resources and Development, LLC and Sprott Private Resource Lending II (CO) Inc. ("Sprott Royalty Agreement"), pursuant to which the Company received $30.0 million of cash proceeds and incurred a 1.5% net smelter royalty payment obligation, payable monthly, relating to the Hycroft Mine’s monthly production (see Note 11 - Deferred Gain on Sale of Royalty ). Other items a. Seller retained a reserve of $2.3 million in cash for use in the dissolution of Seller. b. A $2.5 million cash payment was made and approximately 0.04 million shares of common stock were issued to the Company’s underwriter, Cantor Fitzgerald & Co. (“Cantor”), pursuant to an underwriting agreement. Additionally, a $2.0 million payment was made to Cantor at closing in connection with shares of common stock held by Cantor, which were not redeemed from the SPAC trust balance prior to closing. c. The Company remitted $1.8 million of cash to holders of Seller’s deferred phantom units (see Note 20 - Fair Value Measurements ) and paid $7.4 million of cash for additional transaction costs. Upon closing of the Recapitalization Transaction and after giving effect to the terms of the business combination, the former holders of Seller’s indebtedness and common stock, including affiliated entities of such former holders, owned approximately 96.5% of the issued and outstanding common stock. The following table summarizes the ownership of the Company’s common stock issued and outstanding upon closing of the Recapitalization Transaction: Shares Ownership % Former Seller stockholders and affiliated entities 48,421,309 96.5 % Former MUDS public stockholders (1) 1,197,704 2.4 % Lender to Sprott Credit Agreement 496,634 1.0 % Cantor Fitzgerald & Co. 44,395 0.1 % Total shares issued and outstanding 50,160,042 100.0 % (1) Includes 200,000 shares held by Cantor. |
Inventories and Ore on Leach Pa
Inventories and Ore on Leach Pads | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories and Ore on Leach Pads | Inventories and Ore on Leach Pads The following table provides the components of Inventories and the estimated recoverable gold ounces therein (dollars in thousands): December 31, 2021 December 30, 2020 Amount Gold Ounces Amount Gold Ounces Inventories, current: Materials and supplies $ 4,376 — $ 6,449 — Merrill-Crowe process plant 11 6 4,810 2,587 Carbon-in-column 3,493 2,044 299 166 Finished goods (doré and off-site carbon) 3,189 1,799 1,309 710 Inventories, non-current: Stockpiles (1) — — — — Total $ 11,069 3,849 $ 12,867 3,463 (1) During 2021, the Company began stockpiling sulfide ore. The Company intends to use the stockpiles for testing or for future processing through a mill and subsequent oxidation process. As of December 31, 2021, stockpiles had a value of $Nil as the Company did not have established proven and probable mineral reserves. As of December 31, 2021 and December 31, 2020, Merrill-Crowe process plant, carbon-in-column and finished goods inventories included $0.4 million and $0.3 million, respectively of capitalized depreciation and amortization costs. The following table summarizes Ore on leach pads and the estimated recoverable gold ounces therein (dollars in thousands): December 31, 2021 December 31, 2020 Amount Gold Ounces Amount Gold Ounces Ore on leach pads, current $ 10,106 7,130 $ 38,041 21,869 Ore on leach pads, non-current — — 7,243 4,164 Total $ 10,106 7,130 $ 45,284 26,033 As of December 31, 2021 and December 31, 2020, the current portion of Ore on leach pads included $0.6 million and $1.8 million, respectively of capitalized depreciation and amortization costs. Additionally, as of December 31, 2020 the non-current portion of Ore on leach pads included $0.4 million of capitalized depreciation and amortization costs. Write-down of inventories The Company recognized a Write-down of inventories on the Consolidated Statements of Operations of $13.9 million for the year ended December 31, 2021 related to the following: • A write-down of the non-current portion of Ore on leach pads of $5.5 million for Production costs and $0.4 million of capitalized depreciation and amortization costs related to 3,612 ounces of gold contained in the over liner material on the new larger leach pad which the Company began constructing in 2020. As the 2022 Hycroft TRS does not include proven and probable mineral reserves, it was determined that the recoverability of these ounces is dependent upon additional work and technical studies and, as a result, it was determined that the ounces and related capitalized amounts should be written-off. • A write-down of Inventories of $5.9 million for obsolete and slow moving materials and supplies inventories. As a result of ceasing mining operations, it was determined that certain materials and supplies were not expected to be used in the next 12 months and, accordingly, a reserve was placed against these items. • A loss of $2.1 million related to a firm purchase commitment for crusher liners that the Company agreed to purchase under consignment over a period of three years beginning in August 2020. This loss relates to the unfulfilled commitment obligation and has been reduced to reflect the Company's negotiated settlement with the supplier and the Company has reflected the $2.1 million obligation in Accounts payable and accrued expenses on the Consolidated Balance Sheets . In addition, the estimated recoverable gold ounces placed on the in-service leach pads are periodically reconciled by comparing the related ore contents to the actual gold ounces recovered (metallurgical balancing). As the Company did not experience a reduction in ounces expected to be recovered from its in-service leach pads during 2021, t he Company did not record a Write-down of inventories related to our current Ore on leach pads inventories during the year ended December 31, 2021. During the year ended December 31, 2020, the Company recognized a Write-down of inventories on the Consolidated Statements of Operations of $17.9 million based on metallurgical balancing results, the Company determined that 6,512 ounces of gold that had been placed on the in-service leach pads were no longer recoverable and recognized a Write-down of inventories on the Consolidated Statements of Operations , which included Production costs of $16.7 million and capitalized depreciation and amortization costs of $1.2 million. The write-off of ounces during the year ended December 31, 2020 was primarily due to mismanagement of the oxidation process, improper adjustments to variables in the oxidation process for changes in the ore type based on domain, and improper solution management. As a result, the Company determined it would recover less gold ounces than planned for those sectio |
Prepaids and Other, Net
Prepaids and Other, Net | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaids and Other, Net | Prepaids and Other, Net The following table provides the components of Prepaids and other, net and Other assets (dollars in thousands): December 31, December 31, Prepaids and other, net Prepaids Insurance $ 1,014 $ 1,847 Mining claims and permitting fees 891 417 License fees 186 259 Equipment mobilization — 423 Other 56 252 Deposits 195 1,105 Total $ 2,342 $ 4,303 Other assets Equipment not in use $ — $ 12,238 Royalty - advance payment 600 360 Prepaid supplies inventory — 885 Total $ 600 $ 13,483 Deposits During the year ended December 31, 2021, the Company determined that additional equipment was no longer expected to be purchased under the current mine plan. Accordingly, a full reserve was applied against a $0.9 million deposit previously paid by the Company to an equipment supplier. Equipment not in use As of December 31, 2021, the Company has reclassified the equipment not in use to Assets held for sale on the Consolidated Balance Sheets. See Note 8 - Assets Held for Sale . As of December 31, 2020, equipment not in use was classified as Other assets and included three ball mills, one SAG mill, one regrind mill, and related motors and components that were previously purchased by a predecessor of the Company. During the second quarter of 2020, the Company engaged an international equipment broker to advertise equipment not in use for potential sale. As a result of the sale of a SAG mill along with updated estimates of fair value less selling costs, the Company recorded an adjustment of $5.3 million to the carrying value during the third quarter of 2020 to reflect the fair market value of the equipment not in use. Prepaid supplies inventory The Company has multiple inventory consignment agreements with certain of its suppliers of parts used in the crushing, drilling, and blasting processes that require the supplier to maintain a specified inventory of replacement parts and components that are exclusively for purchase and use at the Hycroft Mine. As part of the agreements, the Company is required to make certain payments in advance of receiving such consignment inventory at the mine site. The Company records advance payments as prepaid supplies inventory within Other assets until such inventory is received, at which point, the amounts are reclassified to Inventories. As of December 31, 2021 the Company had reclassified its prepaid supplies inventory to Inventories. Royalty - advance payment As of December 31, 2021, royalty-advance payments included annual advance payments for a portion of the Hycroft Mine that is subject to a mining lease requiring a 4% net profit royalty be paid to the owner of certain patented and unpatented mining claims. Refer to Note 23 - Commitments and Contingencies |
Plant, Equipment, and Mine Deve
Plant, Equipment, and Mine Development, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Plant, Equipment, and Mine Development, Net | Plant, Equipment, and Mine Development, Net The following table provides the components of Plant, equipment, and mine development, net (dollars in thousands): Depreciation Life December 31, December 31, Leach pads Units-of-production $ 17,431 $ 17,432 Process equipment 5 - 15 years 17,735 16,065 Buildings and leasehold improvements 10 years 9,280 10,507 Mine equipment 5 - 7 years 6,224 5,961 Vehicles 3 - 5 years 1,454 991 Furniture and office equipment 7 years 330 322 Mine development Units-of-production — 756 Construction in progress and other 35,794 33,222 $ 88,248 $ 85,256 Less, accumulated depreciation and amortization (29,764) (25,033) Total $ 58,484 $ 60,223 Leach pads The Company has historically recorded depreciation on its production leach pads by dividing the monthly ounce production by the estimated proven and probable mineral reserves included in its technical reports. As the Company ceased mining activities in November 2021 and no longer reports proven and probable mineral reserves for the Hycroft Mine, the Company estimated the remaining leach pad life based on available capacity in tons. As a result of this change in estimate, the Company recorded additional depreciation expense of $1.7 million for the year ended December 31, 2021. Mine development During the year ended December 31, 2021, the Company determined the previously capitalized mine development costs for drilling and additional studies related to it proven and probable mineral reserves reported under the 2019 Hycroft TRS no longer qualified for capitalization. As a result, the Company recorded an impairment charge of $6.7 million related to metallurgical testing and drill work previously capitalized that is included in Projects and development on the Consolidated Statements of Operations. Construction in progress and other |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted Cash The following table provides the components of Restricted cash (dollars in thousands): December 31, December 31, Reclamation and other surety bond cash collateral $ 34,293 $ 39,677 As of December 31, 2021, our surface management surety bonds totaled $59.3 million, of which $58.3 million secures the financial assurance requirements for the Hycroft Mine, and $1.0 million secures the financial assurance requirements for the adjacent water supply well field and exploration project, which were partially collateralized by the Restricted cash shown above. During the year ended December 31, 2021 the Company replaced certain surety bonds with new surety bonds with lower cash collateral requirements, resulting in an approximate $5.4 million reduction in restricted cash. |
Assets Held For Sale
Assets Held For Sale | 12 Months Ended |
Dec. 31, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Assets Held For Sale | Assets Held For Sale The following table summarizes the Company's Assets held for sale by asset class as of December 31, 2021 and 2020 (dollars in thousands): December 31, December 31, Equipment not in use $ 11,163 $ — Mine equipment 125 — Materials and supplies 270 — Total $ 11,558 $ — The Assets held for sale are being marketed for sale and the Company has received interest from potential purchasers. It is the Company's intention to complete the sales of these assets within the upcoming year. During the year ended December 31, 2021, the Company determined that the carrying value of its Assets held for sale was higher than the estimated fair value and, as a result, the Company recorded an impairment charge of $1.8 million related to the difference between the carrying value of its Assets held for sale |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities The following table summarizes the components of current and non-current portions of Other liabilities (dollars in thousands): December 31, December 31, Other liabilities, current Accrued compensation $ 2,641 $ 1,560 Salary continuation payments 935 1,215 Restricted stock units 714 913 Deferred payroll tax liability 471 436 Excise tax liability 268 — Accrued directors' fees 15 33 Total $ 5,044 $ 4,157 Other liabilities, non-current Lease liability Finance lease liability $ 286 — Operating lease liability 53 $ — Salary continuation payments — 1,145 Deferred payroll tax liability — 505 Total $ 339 $ 1,650 Accrued compensation Accrued compensation reflects amounts for pay earned by not yet due, amounts for accrued and unused vacation pay, and accrued incentive compensation. Salary continuation payments The Company has entered into separation agreements with former executives that provide for, among other things, continuation of such former executives' salaries and certain benefits for periods of 12-24 months from the date of separation. On October 6, 2021, the Company entered in a Waiver and Amendment to the Transition and Succession Agreement and Consulting Agreement with Randy Buffington, the former Chairman of the Board, President and Chief Executive Officer of the Company. The Waiver and Amendment amends the Transition and Succession Agreement and the Consulting Agreement between the Company and Mr. Buffington, dated July 1, 2020. The Waiver and Amendment terminated the remaining unpaid cash payments to Mr. Buffington pursuant to the Transition and Succession Agreement and Consulting Agreement in the aggregate amount of $0.7 million, in exchange for the issuance of an aggregate of up to 275,000 shares of the Company's common stock, of which 137,500 was issued on October 8, 2021, and the remaining shares to be issued on June 30, 2022. Deferred payroll tax liability Under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), the Company has deferred payment of certain employer payroll taxes, with 50% due December 31, 2022. Excise tax liability A new mining excise tax applied to gross proceeds became effective on July 1, 2021 following the passing of Assembly Bill 495 at the Nevada Legislative Session ended on May 31, 2021. The new excise tax is a tiered tax, with a highest rate of 1.1% and the first payment expected in April 2022. The bill does not take into consideration expenses or costs incurred to generate gross proceeds. Therefore, this tax will be treated as a gross receipts tax and not as a tax based on income. As a result, this new tax will be reported as a component of Cost of sales and not as income tax expense. As of December 31, 2021, the Company has accrued $0.3 million related to the annual excise tax. |
Debt, Net
Debt, Net | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt, Net | Debt, Net Debt covenants The Company’s debt agreements contain representations and warranties, events of default, restrictions and limitations, reporting requirements, and covenants that are customary for agreements of these types. On November 9, 2021, we entered into a waiver (the “Waiver”) with Sprott Private Resource Lending II (Collector), LP (the “Lender”) of certain provisions of the Sprott Credit Agreement. Pursuant to the Waiver, the Lender has: (i) permitted the Company to cease active mining operations; and (ii) to reduce the amount of Unrestricted Cash required to be maintained by the Company from not less than $10.0 million to not less than $9.0 million for the period ending May 10, 2022. As a result of the receipt of the Waiver, as of December 31, 2021, the Company was in compliance with all covenants under its debt agreements. Refer to Note 25 - Subsequent Events for further details on the Company's debt covenants and changes to the Company's debt agreements. Debt balances The following table summarizes the components of Debt, net (dollars in thousands): December 31, December 31, Debt, net, current: Sprott Credit Agreement $ 17,223 $ 5,274 Note payable 115 — Less, debt issuance costs (672) (154) Total $ 16,666 $ 5,120 Debt, net, non-current: Subordinated Notes $ 93,599 $ 84,797 Sprott Credit Agreement (1) 51,809 61,894 Note payable 345 — Less, debt issuance costs (2,115) (4,026) Total $ 143,638 $ 142,665 (1) Non-current portion of the Sprott Credit Agreement as of the years ended December 31, 2021 and 2020 is presented net of original issue discount of 10.0 million and $14.7 million, respectively. The following table summarizes the Company's contractual payments of Debt, net , including current maturities, for the four years subsequent to December 31, 2021 (dollars in thousands): 2022 17,338 2023 24,879 2024 24,864 2025 106,034 Total 173,115 Less, original issue discount, net of amortization ($7.0 million) (10,024) Less, debt issuance costs, net of amortization ($2.1 million) (2,787) Total debt, net $ 160,304 Sprott Credit Agreement On October 4, 2019, the Company, as borrower, certain subsidiaries of the Company, as guarantors, and Sprott Private Resource Lending II (Collector), LP. (“Lender”), as arranger, executed a secured multi-advance term credit facility pursuant to which Lender committed to make, subject to certain conditions set forth therein, term loans in an aggregate principal amount up to $110.0 million. On May 29, 2020, the Company entered into the Sprott Credit Agreement to update the conditions precedent and effect certain other changes to conform to the details of the business combination. On May 29, 2020, at the consummation of the Recapitalization Transaction, the Company borrowed $70.0 million under the Sprott Credit Agreement, which was equal to the amount available under the first and second tranches, and issued to Lender 496,634 shares of common stock, which was equal to 1.0% of the Company’s post-closing shares of common stock outstanding. The Company paid an original issuance discount equal to 2.0% ($1.4 million) of the amount borrowed. The Company does not believe it is currently able to borrow under the third and final $40.0 million tranche of the Sprott Credit Agreement due to its inability to satisfy applicable conditions and production milestones required by certain conditions precedent to borrowing. As it relates to the $62.3 million initially recorded for the Sprott Credit Agreement on the May 29, 2020 closing of the Recapitalization Transaction, the Company recorded $70.0 million for the stated amount of the borrowing itself, $9.3 million for the additional interest payment obligation, and a $17.0 million discount (inclusive of the $1.4 million original issuance discount), which will be amortized to Interest expense, net of capitalized interest using the effective interest method over the term of the Sprott Credit Agreement. As of December 31, 2021, the interest rate charged on the outstanding principal balance of the Sprott Credit Agreement was 8.5%. Using the closing price of $12.65 per share of common stock on the Recapitalization Transaction date, the Company also recorded $6.3 million to Additional paid-in capital for the 496,634 shares of common stock issued to the Lender. Advances under the Sprott Credit Agreement bear interest monthly at a floating rate equal to 7.0% plus the greater of (i) U.S. Dollar three-month LIBOR and (ii) 1.5%, per annum, accruing daily and compounded monthly. For a period of twelve months following the May 29, 2020 initial advance date, no cash payments of interest or principal will be due, with 100% of interest accruing and being capitalized on a monthly basis to the outstanding principal balance of the Sprott Credit Agreement. Additionally, for each three-month period commencing on February 28, 2021 and ending on the maturity date, the Company shall pay Lender additional interest on the last business day of such three-month period, calculated according to a formula set forth in the Sprott Credit Agreement and currently equal to $0.5 million per quarter ($9.3 million in total over the life of the Sprott Credit Agreement). Upon a prepayment of the entire Sprott Credit Agreement, all remaining additional interest payments and all remaining and yet unpaid additional interest must be prepaid as well. The Company was required to make principal repayments beginning on August 31, 2021 and on the last business day every three months thereafter. The first four principal repayments are equal to two and one-half percent (2.5%) of the outstanding principal amount of the Sprott Credit Agreement on May 31, 2021 (including all capitalized interest thereon, if any, but excluding the principal repayment then due). All subsequent principal repayments are equal to seven and one-half (7.5%) of the outstanding principal amount of the Sprott Credit Agreement on May 31, 2021 (including all capitalized interest thereon, if any, but excluding the principal repayment then due). The entire outstanding balance of the Sprott Credit Agreement, together with all unpaid interest and fees (including all capitalized interest, if any), is due on the day that is five years from the last day of the month of the initial closing date, which shall be no later than May 31, 2025, the maturity date. The Company reviewed the features of the Sprott Credit Agreement for embedded derivatives, and determined no such instruments exist. The Sprott Credit Agreement may be repaid in whole or in part, at any time prior to the maturity date. Each prepayment or cancellation of the Sprott Credit Agreement (including capitalized interest, if any), whether in whole or in part, voluntarily or mandatory, subject to certain exceptions, that occurs on or prior to the fourth anniversary of the date of the initial advance is subject to a prepayment premium between 3.0% and 5.0%. The obligations of the Company under the Sprott Credit Agreement are guaranteed by Credit Parties and secured by a lien on all properties and assets now owned, leased or hereafter acquired or leased by any Credit Party, as such terms are defined and further detailed in the Sprott Credit Agreement. The Company is required to make prepayments of its outstanding principal balance equal to 50% or 100% of the proceeds received as outlined in the Sprott Credit Agreement. On October 31, 2020, the Company completed the sale of a SAG mill that was not in use for net proceeds of $2.3 million, of which $1.2 million was repaid in accordance with the Sprott Credit Agreement. See Note 25 - Subsequent Events for additional information related to repayment terms for the Sprott Credit Agreement. Subordinated Notes In connection with the business combination and pursuant to a 1.25 Lien Exchange Agreement, on May 29, 2020, the Company assumed $80.0 million in aggregate principal amount of Seller’s 1.25 Lien Notes that were exchanged as part of the Recapitalization Transaction (the "Subordinated Notes”). The Subordinated Notes are secured and subordinate in priority to the obligations under the Sprott Credit Agreement. The Subordinated Notes bear interest at a rate of 10.0% per annum, payable in-kind on a quarterly basis. The principal on the new Subordinated Notes is due December 1, 2025. See Note 25 - Subsequent Events for additional information related to repayment terms for the Subordinated Notes. 2.0 Lien Notes As discussed in Note 3 - Recapitalization Transaction , on May 29, 2020, $221.3 million of Seller's 2.0 Lien Notes were converted into shares of Seller common stock which, along with all of Seller's other stockholders, as part of Sellers's plan of dissolution, received a pro rata distribution of common stock from Seller that was received by Seller as consideration from the Company. The Company recorded $74.6 million directly to retained earnings upon Seller's distribution of 14,795,153 shares of common stock to Seller's former 2.0 Lien Note holders, which represented the difference between the carrying value of the 2.0 Lien Notes and the value of the common stock received as consideration by Seller's former 2.0 Lien Note holders. The 2.0 Lien Notes bore interest at a rate of 15.0% per annum, payable in-kind on a quarterly basis, through the issuance of additional 2.0 Lien Notes. The 2.0 Lien Notes were converted into Seller common stock at a conversion price of $1.67 per share in accordance with the 2.0 Lien Agreement. While outstanding, the obligations under the 2.0 Lien Notes and the guarantees by the guarantors in respect thereof were secured by liens on substantially all assets of the Company and the guarantors, subject to the priority of the liens that secured the obligations under the First Lien Agreement, the 1.25 Lien Notes and the 1.5 Lien Notes. 1.5 Lien Notes As discussed in Note 3 - Recapitalization Transaction , on May 29, 2020, after giving effect to the 1.5 Lien Notes’ 110.0% repurchase feature, $145.7 million of Seller’s 1.5 Lien Notes plus accrued and unpaid interest were exchanged, and subsequently cancelled, for 16,025,316 shares of common stock. The Company recorded a $14.6 million loss directly to retained earnings upon such exchange, which represented 10.0% of the $145.7 million aggregate principal amount of 1.5 Lien Notes balance at the time of exchange. While outstanding, the 1.5 Lien Notes bore interest at a rate of 15.0% per annum, which was payable in-kind on a quarterly basis, through the issuance of additional 1.5 Lien Notes. While outstanding, the obligations under the 1.5 Lien Notes and the guarantees by the guarantors in respect thereof were secured by liens on substantially all assets of Seller and the guarantors, subject to the priority of the liens that secured the obligations of the First Lien Agreement and the 1.25 Lien Notes, but superior in priority to the liens that secured the obligations of the 2.0 Lien Notes and the unsecured obligations of Seller. 1.25 Lien Notes As discussed in Note 3 - Recapitalization Transaction , on May 29, 2020, $48.5 million in aggregate principal amount of Seller’s 1.25 Lien Notes, which bore interest at 15.0% per annum, payable in-kind, were exchanged, and subsequently cancelled, for 4,845,920 shares of common stock and the remaining $80.0 million aggregate principal amount of Seller’s 1.25 Lien Notes were exchanged for $80.0 million in aggregate principal amount of new Subordinated Notes that were assumed in the Recapitalization Transaction by the Company, bearing interest at a rate of 10.0% per annum, payable-in-kind. The 1.25 Lien Notes bore interest at a rate of 15.0% per annum, which was payable in-kind on a quarterly basis, through the issuance of additional 1.25 Lien Notes. While outstanding, the obligations under the 1.25 Lien Notes and the guarantees by the guarantors in respect thereof were secured by liens on substantially all assets of Seller and the guarantors, subject to the priority of the liens that secured the obligations of the First Lien Agreement, but superior in priority to the liens that secured the obligations of the 1.5 Lien Notes, the 2.0 Lien Notes and the unsecured obligations of Seller. First Lien Agreement As discussed in Note 3 - Recapitalization Transaction , on May 29, 2020, $125.5 million of outstanding principal under the First Lien Agreement with the Bank of Nova Scotia as agent, plus accrued interest, was repaid. Most recently, from January 31, 2020 through the repayment date, the First Lien Agreement bore interest at either LIBOR plus 7.5% or an Alternate Base Rate Canada plus 7.5%, as such terms were defined in the First Lien Agreement. The repayment of the First Lien Agreement and other obligations under the First Lien Agreement were guaranteed by all of the direct and indirect domestic subsidiaries of Seller. While outstanding, the obligations under the First Lien Agreement, the guarantees by the guarantors in respect thereof were secured by liens on substantially all of the assets of the Company and its subsidiaries. Upon repayment of the First Lien Agreement, $3.3 million of restricted cash was released to the Company (see Note 6 - Restricted Cash ). Promissory Note As discussed in Note 3 - Recapitalization Transaction , on May 29, 2020, a $6.9 million promissory note was repaid, the obligation of which related to a 2014 settlement with a vendor of a predecessor of Seller. Interest expense, net of capitalized interest The following table summarizes the components of recorded Interest expense, net of capitalized interest (dollars in thousands): Years Ended December 31, 2021 2020 Sprott Credit Agreement $ 10,997 $ 6,009 Subordinated Notes 8,803 4,797 Amortization of debt issuance costs 1,394 1,972 Other interest expense 53 40 2.0 Lien Notes — 12,902 1.5 Lien Notes — 8,635 1.25 Lien Notes — 6,218 First Lien Agreement — 4,575 Promissory Note — 141 Capitalized interest (654) (1,831) Total $ 20,593 $ 43,458 The Company capitalizes interest to Plant, equipment, and mine development, net for construction projects in accordance with ASC Topic 835, Interest . Interest expense incurred under the Subordinated Notes is payable-in-kind. In May 2021, the Company began paying cash for interest expense incurred under the Sprott Credit Agreement. Prior to May 2021, interest expense incurred under the Sprott Credit Agreement was payable-in-kind. |
Deferred Gain on Sale of Royalt
Deferred Gain on Sale of Royalty | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Deferred Gain on Sale of Royalty | Deferred Gain on Sale of Royalty On May 29, 2020, the closing date of the Recapitalization Transaction, the Company and Sprott Private Resource Lending II (Co) Inc. (the “Payee”) entered into a royalty agreement with respect to the Hycroft Mine (the “Sprott Royalty Agreement”) in which Payee paid to the Company cash consideration in the amount of $30.0 million, for which the Company granted to Payee a perpetual royalty equal to 1.5% of the Net Smelter Returns from its Hycroft Mine, payable monthly. Net Smelter Returns for any given month are calculated as Monthly Production multiplied by the Monthly Average Gold Price and the Monthly Average Silver Price, minus Allowable Deductions, as such terms are defined in the Sprott Royalty Agreement. The Company is required to remit royalty payments to the Payee free and clear and without any present or future deduction, withholding, charge or levy on account of taxes, except Excluded Taxes as such term is defined in the Sprott Royalty Agreement. The Company had the right to repurchase up to 33.3% (0.5% of the 1.5% royalty) of the royalty on each of the first and second anniversaries from May 29, 2020. The Company did not exercise its right to repurchase 0.5% on the first anniversary and waived its right to the repurchase on the second anniversary (see Note 25 - Subsequent Events below). The Sprott Royalty Agreement is secured by a first priority lien on certain property of the Hycroft Mine, including: (1) all land and mineral claims, leases, interests, and rights; (2) water rights, wells, and related infrastructure; and (3) stockpiles, buildings, structures, and facilities affixed to, or situated on, the Hycroft Mine, which ranks senior to security interests and liens granted pursuant to the Sprott Credit Agreement. In addition to the terms generally described above, the Sprott Royalty Agreement contains other terms and conditions commonly contained in royalty agreements of this nature. During the year ended December 31, 2021, the Company recorded amortization of its Deferred gain on sale of royalty of approximately $0.1 million, and made payments under the Sprott Royalty Agreement of $2.3 million, which are included in Cost of sales on the Consolidated Statements of Operations. As of December 31, 2021, the Company included $0.1 million of the Deferred gain on sale of royalty in Current liabilities on its Consolidated Balance Sheets based upon the estimated gold and silver expected to be produced over the next 12 months, using the forecasted ounces expected to be produced during 2022. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Warrant Liabilities | Warrant Liabilities The following table summarizes the Company's outstanding warrants included in Warrant liabilities on the Consolidated Balance Sheets (dollars in thousands): Balance at January 1, 2021 Fair Value Adjustments (1) Transfers to an Unrelated Third Party Balance at Warrants Amount Warrants Amount Warrants Amount Warrants Amount Warrant liabilities 5-Year Private Warrants 9,888,415 $ 15,326 — $ (14,368) (409,585) $ (294) 9,478,830 $ 664 Seller Warrants 12,721,901 63 — (58) — — 12,721,901 5 Total 22,610,316 $ 15,389 — $ (14,426) (409,585) $ (294) 22,200,731 $ 669 Balance at January 1, 2020 Warrant Issuances Fair value adjustments (1) Transfers to an Unrelated Third Party Balance at Warrants Amount Warrants Amount Warrants Amount Warrants Amount Warrants Amount Warrant liabilities 5-Year Private Warrants — $ — 10,240,000 $ 12,185 — $ 3,722 (351,585) $ (581) 9,888,415 $ 15,326 Seller Warrants 12,721,901 18 — — — 45 — — 12,721,901 63 Total 12,721,901 $ 18 10,240,000 $ 12,185 — $ 3,767 $ (351,585) $ (581) 22,610,316 $ 15,389 (1) Liability classified warrants are subject to fair value remeasurement at each balance sheet date in accordance with ASC 814-40, Contracts on Entity's Own Equity. As a result, fair value adjustments related exclusively to the Company's liability classified warrants. Refer to Note 20 - Fair Value Measurements for further detail on the fair value of the Company's liability classified warrants. The following table summarizes additional information on the Company's outstanding warrants: Exercise Price Exercise Period Expiration Date Warrants Outstanding Warrant liabilities 5-Year Private Warrants $ 11.50 5 years May 29, 2025 9,478,830 Seller Warrants 40.31 7 years October 22, 2022 12,721,901 |
Asset Retirement Obligation ("A
Asset Retirement Obligation ("ARO") | 12 Months Ended |
Dec. 31, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation ("ARO") | Asset Retirement Obligation ("ARO") The following table summarizes changes in the Company’s ARO (dollars in thousands): December 31, 2021 December 31, 2020 Balance, beginning of period $ 4,785 $ 4,374 Accretion expense 408 374 Changes in estimates — 37 Balance, end of period $ 5,193 $ 4,785 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' EquityFollowing the May 29, 2020 Recapitalization Transaction, the total number of shares of all classes of capital stock that the Company has authority to issue is 410,000,000, of which 400,000,000 are common stock, par value $0.0001 per share, and 10,000,000 are preferred stock par value $0.0001 per share. The designations, powers, privileges and rights, and the qualifications, limitations or restrictions thereof in respect to each of our class of capital stock are discussed below. Common stock As of December 31, 2021, there were 60,433,395 shares of common stock issued and outstanding. Each holder of common stock is entitled to one vote for each share of common stock held by such holder. The holders of common stock are entitled to the payment of dividends and other distributions as may be declared from time to time by the Board of Directors in accordance with applicable law and to receive other distributions from the Company. See Note 25 - Subsequent Events for details related to issuances of shares of common stock that occurred in March 2022. Preferred stock As of December 31, 2021, there were no shares of preferred stock issued and outstanding. Dividend policy The Company’s credit facility under the Sprott Credit Agreement contains provisions that restrict its ability to pay dividends. For additional information see Note 10 - Debt, Net . Warrants The following table summarizes the Company's outstanding warrants included in Additional paid-in capital on the Consolidated Balance Sheets (dollars in thousands): Balance at January 1, 2021 Warrant Issuances Exercises of warrants Transfers from an Unrelated Third Party Balance at Warrants Amount Warrants Amount Warrants Amount Warrants Amount Warrants Amount Equity classified warrants 5-Year Public Warrants 24,401,483 $ 28,618 — $ — — $ — 409,585 $ 294 24,811,068 $ 28,912 Public Offering Warrants 9,583,334 12,938 — — — — — — 9,583,334 12,938 Total 33,984,817 $ 41,556 — $ — — $ — $ 409,585 $ 294 33,984,918 $ 41,850 Balance at January 1, 2020 Warrant Issuances Exercises of warrants Transfers from an Unrelated Third Party Balance at Warrants Amount Warrants Amount Warrants Amount Warrants Amount Warrants Amount Equity classified warrants 5-Year Public Warrants 20,800,000 $ 25,100 3,249,999 $ 2,938 (101) $ (1) 351,585 $ 581 24,401,483 $ 28,618 Public Offering Warrants — — 9,583,334 12,938 — — — $ — 9,583,334 $ 12,938 Total 20,800,000 $ 25,100 12,833,333 $ 15,876 (101) $ (1) $ 351,585 $ 581 33,984,817 $ 41,556 The following table summarizes additional information on the Company's outstanding warrants: Exercise Price Exercise Period Expiration Date Warrants Outstanding Equity classified warrants 5-Year Public Warrants $ 11.50 5 years May 29, 2025 24,811,068 Public Offering Warrants 10.50 5 years October 6, 2025 9,583,334 5-Year Public Warrants Prior to the Recapitalization Transaction, MUDS issued 20,800,000 units, with each unit consisting of one share of common stock and one warrant to purchase one share of common stock at an exercise price of $11.50 per share for a period of five years from the May 29, 2020 Recapitalization Transaction (the "IPO Warrants"), and concurrently with the Recapitalization Transaction, the Company issued 3,249,999 warrants upon substantially the same terms as part of a backstop unit offering at an exercise price of $11.50 per share for a period of five years from the issuance date (the "Backstop Warrants" and collectively with the IPO Warrants, the "5-Year Public Warrants"). During the years ended December 31, 2021 and 2020, 409,585 and 351,585, respectively, 5-Year Private Warrants were transferred from a 5-Year Private Warrant holder to an Unrelated Third Party and, accordingly those warrants are now included with the 5-Year Public Warrants. The Company has certain abilities to call the 5-Year Public Warrants if the last reported sale price of common stock equals or exceeds $18.00 per share (as adjusted for share splits, share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period. As of December 31, 2021, the Company had 24,811,068 5-Year Public Warrants outstanding. The 5-Year Public Warrants (other than the Backstop Warrants) are listed for trading on the Nasdaq Capital Market under the symbol "HYMCW". See Note 3 - Recapitalization Transaction for additional details on transactions to which the 5-Year Public Warrants were issued. Public Offering Warrants On October 6, 2020, the Company issued 9,583,334 units in an underwritten public offering at an offering price to of $9.00 per unit (the "Public Offering"), with each unit consisting of one share of common stock and one warrant to purchase one share of common stock at an exercise price of $10.50 per share (“Public Offering Warrants”). Of the 9.6 million units issued, 5.0 million units were issued to Restricted Persons, as defined under the Seller Warrant Agreement. After deducting underwriting discounts and commission and offering expenses, the proceeds net of discount and equity issuance costs to the Company were $83.1 million. The Public Offering Warrants are immediately exercisable and entitle the holder thereof to purchase one share of common stock at an exercise price of $10.50 for a period of five years from the closing date of the Public Offering. The shares of common stock and the Public Offering Warrants were separated upon issuance in the Public Offering. The Public Offering Warrants are listed for trading on the Nasdaq Capital Market under the symbol "HYCML". |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The table below is a summary of the Company’s gold and silver sales (dollars in thousands): Years Ended December 31, 2021 2020 Amount Ounces Sold Amount Ounces Sold Gold sales $ 100,532 56,045 $ 44,279 24,892 Silver sales 10,202 397,546 2,765 136,238 Total $ 110,734 $ 47,044 While the Company is not obligated to sell any of its gold and silver to one customer, the majority of gold and silver sales during both of the years ended December 31, 2021 and 2020 were to two customers, Customer A and Customer B. For the year ended December 31, 2021, approximately 90.4% of revenue was attributable to sales to Customer A and approximately 9.6% of revenue was attributable to Customer B. For the year ended December 31, 2020, approximately 88.6% of revenue was attributable to sales to Customer A and approximately 11.4% of revenue was attributable to sales to Customer B. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Performance and Incentive Pay Plan ("PIPP") The Company's PIPP, which was approved on February 20, 2019 and amended on May 29, 2020 in connection with the Recapitalization Transaction, is a stock-based compensation plan to attract, retain and motivate employees and directors while directly linking incentives to increases in stockholder value. Terms and conditions (including performance-based vesting criteria) of awards granted under the PIPP are established by the Board of Directors or the Compensation Committee of the Board of Directors, who administer the PIPP. Awards made be granted in a variety of forms, including restricted stock, restricted stock units, stock options, stock appreciation rights, performance awards, and other stock-based awards. The number of shares of common stock made available for award under the PIPP is equal to 5% of the issued and outstanding shares of the Company's common stock immediately after the close of the Recapitalization Transaction, or 2,508,002 shares. As of December 31, 2021 there were no shares available for issuance under the PIPP. As of December 31, 2021, all awards granted under the PIPP were in the form of restricted stock units to employees or consultants of the Company. Restricted stock units granted under the PIPP without performance-based vesting criteria typically vest in either equal annual installments over two two For certain restricted stock units granted during 2019 a price per share was not determined as of the grant date. The number of shares of common stock of the Company to be issued upon vesting is to be calculated on the vesting date, which is either the later of the second or third anniversary of the date of the grant, or the annual date the compensation committee determines the achievement of the corporate performance targets. Such unvested restricted stock unit awards are included in the current portion of Other liabilities . Refer to Note 9 - Other Liabilities for further detail. The Company estimates the number of shares of common stock to be issued upon vesting using the closing share price of its common stock on the last day of the period as quoted on the NASDAQ. For purposes of the outstanding unvested calculations below and the calculation of the shares available for issuance under the PIPP above, the Company used the closing share price on December 31, 2021 of $0.61 to estimate the number of shares of common stock to be issued upon vesting of these awards. As a result, actual shares of common stock issued upon vesting may be significantly different than these estimates. The following table summarizes the Company’s unvested share awards granted under the PIPP: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Unvested awards at December 31, 2019 339,271 $ 10.96 Granted 517,234 8.11 Canceled/forfeited (1) (131,724) 11.32 Vested (179,085) 11.05 Unvested awards at December 31, 2020(1) 545,696 $ 8.12 Unvested awards at December 31, 2020 545,696 $ 8.12 Granted 1,171,869 5.08 Impact of fluctuations in price of common stock 1,632,136 0.61 Canceled/forfeited (1) (762,822) 3.42 Vested (375,968) 4.06 Unvested awards at December 31, 2021 (1) 2,210,911 $ 2.82 (1) Amounts include liability-based awards for which the number of units awarded is not determined until the vesting date. The number of liability-based award units included in this amount are estimated using the market value of the Company's common shares as of the end of each year . During the year ended December 31, 2021 and the year ended December 31, 2020, the Company reclassified $0.8 million and $1.8 million from the current portion of Other liabilities to Additional paid-in capital for restricted stock units that vested. The total intrinsic value of restricted stock units (calculated as the product of price per share on the vesting date times the number of restricted stock units vested) vested during the years ended December 31, 2021 and 2020 was $1.3 million and $2.0 million, respectively. Total compensation expense relating to restricted stock awards was $2.3 million and $2.4 million for the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021, $3.8 million of total unrecognized compensation cost related to restricted stock units was expected to be recognized as an expense by the Company in the future over a weighted-average period of approximately 2.27 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the year ended December 31, 2021 the Company recorded a current income tax benefit of $1.5 million primarily related to a carry back of the 2020 net operating loss to 2018 and 2019 under provisions of the CARES Act. For the year ended December 31, 2020, the Company recorded no income tax benefit or expense. During the year ended December 31, 2020, the Company reversed a portion of the valuation allowance based on the net operating loss expected to be used, in order to offset Seller's taxable gain related to the Recapitalization Transaction. The Company is subject to state income tax in Colorado, which was the location of its corporate office during 2021, but did not incur any income tax expense related to Colorado due to continued net operating losses. The Company is subject to mining taxes in Nevada, which are classified as income taxes as such taxes are based on a percentage of mining profits, but did not incur any mining tax expense due to continued mining losses. The Company is not subject to foreign income taxes as all of the Company’s operations and properties are located within the United States. The Company’s loss before income taxes was attributable solely to domestic operations in the United States. The components of the Company’s income tax expense (benefit) were as follows (in thousands): Years Ended December 31, 2021 2020 Current Federal $ (1,530) $ — Deferred Federal (14,495) 146,794 Change in Valuation Allowance 14,495 (146,794) Income Tax Benefit $ (1,530) $ — The following table provides a reconciliation of income taxes computed at the United States federal statutory tax rate of 21% in 2021 and 2020 to the income tax provision (in thousands): Years Ended December 31, 2021 2020 Loss before income taxes $ (90,094) $ (136,392) United States statutory income tax rate 21 % 21% Income tax (benefit) at United States statutory income tax rate $ (18,920) $ (28,642) Change in valuation allowance 14,495 (146,794) Recapitalization transaction — 157,855 Cancellation of debt income — 15,360 State tax provision, net of federal benefit — 1,263 Warrant liability fair value adjustment 3,030 790 Other (135) 168 Income Tax Benefit $ (1,530) $ — For the year ended December 31, 2021, the effective tax rate was a result of an increase in the valuation allowance of $14.5 million and warrant liability fair value adjustment. For the year ended December 31, 2020, the effective tax rate was a result of an increase in the valuation allowance of $146.8 million which offset a $157.9 million net write-off and usage of certain deferred tax assets as a result of the Recapitalization Transaction and $15.4 million of cancellation of debt income related to the Recapitalization Transaction. The components of the Company’s deferred tax assets are as follows (in thousands): Years Ended December 31, 2021 2020 Net operating loss $ 30,355 $ 7,675 Mineral properties 39,371 39,555 Plant, equipment, and mine development 25,506 30,767 Intangible assets 20,204 21,710 Royalty 6,266 6,292 Interest expense carryforward — 1,935 Asset retirement obligation 1,083 997 Stock-based compensation 856 405 Accrued compensation 502 197 Inventories 76 191 Reorganization costs — — Other liabilities — — Credits and other — — Valuation allowance (124,219) (109,724) Total net deferred tax assets $ — $ — Based on the weight of evidence available as of both December 31, 2021, and 2020, which included recent operating results, future projections, and historical inability to generate operating cash flow, the Company concluded that it was more likely than not that the benefit of its net deferred tax assets would not be realized and, as such, recorded full valuation allowances of $124.2 million and $109.7 million, respectively, against its net deferred tax assets. The Company had net operating loss carryovers as of December 31, 2021 and 2020 of $144.5 million and $36.6 million, respectively, for federal income tax purposes. The carryforward amount as of December 31, 2021 can be carried forward indefinitely and can be used to offset taxable income and reduce income taxes payable in future periods, pending any potential limitation pursuant to Internal Revenue Code (“IRC”) section 382. Additional analysis of the IRC section 382 limitations will be performed in the future and could result in an annual limitation applied to the $144.5 million of net operating losses. As necessary, the Company provides a reserve against the benefits of uncertain tax positions taken in its tax filings that are more likely than not to not be sustained upon examination. Based on the weight of available evidence, the Company does not believe it has taken any uncertain tax positions that require the establishment of a reserve. The Company has not recorded any income tax reserves or related interest or penalties related to income tax liabilities as of December 31, 2021. The Company's policy, if it were to have uncertain tax positions, is to recognize interest and/or penalties related to unrecognized tax benefits as part of its income tax expense. With limited exception, the Company is no longer subject to U.S. federal income tax audits by taxing authorities for tax years 2017 and prior; however, net operating loss and credit carryforwards from all years are subject to examinations and adjustments for at least three years following the year in which the attributes are used. |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss Per Share The table below summarizes the Company's basic and diluted loss per share calculations (in thousands, except share and per share amounts): Years Ended December 31, 2021 2020 Net loss $ (88,564) $ (136,392) Weighted average shares outstanding Basic 60,101,499 34,833,211 Diluted 60,101,499 34,833,211 Basic loss per common share $ (1.47) $ (3.92) Diluted loss per common share $ (1.47) $ (3.92) Basic and diluted net loss per share is computed by dividing the net loss for the period by the weighted average number of common shares outstanding during the period. Loss per share amounts in the 2020 period exclude the common share effects from certain of Seller's debt instruments, which are reflected in the 2021 period. Due to the Company's net loss during the years ended December 31, 2021 and 2020, there was no dilutive effect of common stock equivalents because the effects of such would have been anti-dilutive. The following table summarizes the shares excluded from the weighted average number of common shares outstanding, as the impact would be anti-dilutive (in thousands): December 31, 2021 2020 Warrants 47,442 37,500 Restricted stock units 2,211 149 Total 49,653 37,649 Refer to Note 25 - Subsequent Events for information regarding equity financings that occurred subsequent to December 31, 2021 that would have had a material impact on the number of potential common shares outstanding at the end of the year if the transactions had occurred as of or prior to December 31, 2021. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's reportable segments are comprised of operating units that have revenues, earnings or losses, or assets exceeding 10% of the respective consolidated totals, and are consistent with the Company’s management reporting structure. Each segment is reviewed by the executive decision-making group to make decisions about allocating the Company's resources and to assess their performance. The tables below summarize the Company's segment information (dollars in thousands): Year Ended December 31, Hycroft Mine Corporate and Other Total 2021 Revenue - Note 15 $ 110,734 $ — $ 110,734 Cost of sales 163,338 — 163,338 Other operating costs 16,688 14,619 31,307 Loss from operations (69,292) (14,619) (83,911) Interest expense, net of capitalized interest - Note 10 — (20,593) (20,593) Fair value adjustment to warrants - Notes 12 and 20 — 14,426 14,426 Gain on sale of equipment $ (16) $ — $ (16) Loss before income taxes $ (69,308) $ (20,786) $ (90,094) Income tax benefit - Note 17 — 1,530 1,530 Net loss $ (69,308) $ (19,256) $ (88,564) Total Assets $ 138,971 $ 3,353 $ 142,324 2020 Revenue - Note 15 $ 47,044 $ — $ 47,044 Cost of sales 109,621 — 109,621 Other operating costs 5,705 21,084 26,789 Loss from operations (68,282) (21,084) (89,366) Interest expense, net of capitalized interest - Note 10 (141) (43,317) (43,458) Fair value adjustment to warrants - Notes 12 and 20 — (3,767) (3,767) Interest income 199 — 199 Net loss $ (68,224) $ (68,168) $ (136,392) Total Assets $ 177,298 $ 55,328 $ 232,626 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Recurring fair value measurements The following table sets forth by level within the fair value hierarchy, the Company’s liabilities that are measured at fair value on a recurring basis (dollars in thousands). Hierarchy December 31, December 31, Warrant liabilities 5-Year Private Warrants 2 664 15,327 Seller Warrants 2 5 62 Total $ 669 $ 15,389 5-Year Private Warrants The 5-Year Private Warrants are valued using a Black-Scholes model that requires a variety of inputs including the Company's stock price, the strike price of the 5-Year Private Warrants, the risk-free rate, and the implied volatility. As the terms of the 5-Year Private Warrants are identical to the terms of the 5-Year Public Warrants except that the 5-Year Private Warrants, while held by the SPAC sponsor and/or SPAC underwriter and their permitted transferees, are precluded from mandatory redemption and are entitled to be exercise on a "cashless basis" at the holder’s election, the implied volatility used in the Black-Scholes model is calculated using a Monte-Carlo model of the 5-Year Public Warrants that factors in the restrictive redemption and cashless exercise features of the 5-Year Private Warrants. The Company updates the fair value calculation on at least a quarterly basis, or more frequently if changes in circumstances and assumptions indicate a change from the existing carrying value. Seller Warrants As part of the Recapitalization Transaction, the Company assumed Seller's obligations under the Seller Warrant Agreement and the 12.7 million Seller Warrants outstanding became exercisable into shares of the Company's common stock. The Seller Warrant Agreement also contains certain terms and features to reduce the exercise price and increase the number of shares of common stock each warrant is exercisable into. As a result, Seller Warrants are considered derivative financial instruments and carried at fair value. The fair value of Seller Warrants was computed by an independent third-party consultant (and validated by the Company) using a Monte Carlo simulation-based model that requires a variety of inputs, including contractual terms, market prices, exercise prices, equity volatility and discount rates. The Company updates the fair value calculation on at least an annual basis, or more frequently if changes in circumstances and assumptions indicate a change from the existing carrying value. See Note 12 - Warrant Liabilities for additional information on the Seller Warrants. Items disclosed at fair value Debt, net |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table provides supplemental cash flow information (dollars in thousands): Year Ended December 31, 2021 2020 Cash interest paid $ 3,732 $ 5,366 Significant non-cash financing and investing activities: Exchange of Seller's 1.5 Lien Notes for HYMC common stock — 160,254 Exchange of Seller's 1.25 Lien Notes for Subordinated Notes — 80,000 Exchange of Seller's 1.25 Lien Notes for HYMC common stock — 48,459 Write-off of Seller's debt issuance costs — 8,202 Increase in debt from in-kind interest 11,425 — Plant, equipment, and mine development additions included in Accounts payable and accrued liabilities 538 1,229 Accrual of deferred financing and equity issuance costs — 94 Liability based restricted stock units transferred to equity 765 — |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 401(k) Plan The Hycroft Mining Corporation 401(k) Plan (the “401(k) Plan”) is a defined contribution plan that is available to all employees of the Company upon their date of hire. The 401(k) Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended, and Section 401(k) of the Internal Revenue Code. Administrative fees of the 401(k) Plan are paid by the Company. The assets of the 401(k) Plan are held and the related investments are executed by the 401(k) Plan’s trustee. Participants in the 401(k) Plan exercise control and direct the investment of their contributions and account balances among various investment alternatives. The Company matches a percentage of employee deferrals to the 401(k) Plan up to certain limits. For the years ended December 31, 2021 and 2020, the Company’s matching contributions totaled $1.1 million, and $0.9 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, the Company is involved in various legal actions related to its business, some of which are class action lawsuits. Management does not believe, based on currently available information, that contingencies related to any pending or threatened legal matter will have a material adverse effect on the Company’s financial statements, although a contingency could be material to the Company’s results of operations or cash flows for a particular period depending on the results of operations and cash flows for such period. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors. The Company has deductible-based insurance policies for certain losses related to general liability, workers’ compensation and automobile coverage. The Company records accruals for contingencies related to its insurance policies when it is probable that a liability has been incurred and the amount can be reasonably estimated. These accruals are adjusted periodically as assessments change or additional information becomes available. Insurance losses for claims filed and claims incurred but not reported are accrued based upon estimates of the aggregate liability for uninsured claims using historical loss development factors and actuarial assumptions followed in the insurance industry. Financial commitments not recorded in the financial statements As of December 31, 2021, the Company's off-balance sheet arrangements consisted of a net profit royalty arrangement, a net smelter royalty arrangement and routine consignment agreements for materials and supplies used in its operations. Net profit royalty A portion of the Hycroft Mine is subject to a mining lease that requires a 4% net profit royalty be paid to the owner of certain patented and unpatented mining claims. The mining lease also requires an annual advance payment of $120,000 every year mining occurs on the leased claims. All advance annual payments are credited against the future payments due under the 4% net profit royalty. An additional payment of $120,000 is required for each year total tons mined on the leased claims exceeds 5.0 million tons. As of December 31, 2021 total tons mined from the leased claims exceeded 5.0 million tons, for which the Company remitted the required additional payment of $120,000 during the fourth quarter of 2021. The total payments due under the mining lease are capped at $7.6 million, of which the Company has paid or accrued $3.0 million and included $0.6 million in Other assets in the Consolidated Balance Sheets as of December 31, 2021. Net smelter royalty Pursuant to the Sprott Royalty agreement in which the Company received cash consideration in the amount of $30.0 million, the Company granted a perpetual royalty equal to 1.5% of the Net Smelter Returns from its Hycroft Mine, payable monthly. Net Smelter Returns for any given month are calculated as Monthly Production multiplied by the Monthly Average Gold Price and the Monthly Average Silver Price, minus Allowable Deductions, as such terms are defined in the Sprott Royalty Agreement. The Company is required to remit royalty payments to the payee free and clear and without any present or future deduction, withholding, charge or levy on account of taxes, except Excluded Taxes as such term is defined in the Sprott Royalty Agreement. As of December 31, 2021 and December 31, 2020, the estimated net present value of the Company’s net smelter royalty was $154.0 million and $148.4 million, respectively. The net present value of the Company's net smelter royalty was modeled using the following level 3 inputs: (i) market consensus inputs for future gold and silver prices; (ii) a precious metals industry consensus discount rate of 5.0%; and (iii) estimates of the Hycroft Mine’s life-of-mine gold and silver production volumes and timing based on an internal mine plan using measured and indicated mineral resources. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions During the year ended December 31, 2021, the Company incurred costs of $1.2 million, of which $0.3 million was included in Accounts payable and accrued expenses on the Consolidated Balance Sheets, to Ausenco Engineering USA South ("Ausenco") for work performed on preparing an Acid POX milling technical study. Diane Garrett is currently a non-executive director on Ausenco's Board of Directors. Certain amounts of the Company's indebtedness have historically, and with regard to the $80.0 million aggregate principal of Subordinated Notes, are currently, held by five financial institutions. As of December 31, 2021, two of the financial institutions, Mudrick Capital Management, L.P (“Mudrick”) and, Whitebox Advisors, LLC (“Whitebox”), held more than 10% of the common stock of the Company and were considered affiliates and, as a result, each are considered a related party (the "2021 Related Parties") in accordance with ASC 850, Related Party Disclosures . For the year ended December 31, 2021, Interest expense, net of capitalized interest included $6.0 million for the debt held by the 2021 Related Parties. In addition, December 31, 2021, the 2021 Related Parties held a total $63.8 million of the Subordinated Notes. As of December 31, 2020, three of the financial institutions, Highbridge Capital Management, LLC (“Highbridge”), Mudrick and Whitebox, held more than 10% of the common stock of the Company and were considered affiliates and, as a result, each are considered a related party (the "2020 Related Parties"). For the year ended December 31, 2020, Interest expense, net of capitalized interest included $31.3 million for the debt held by the 2020 Related Parties. As of December 31, 2020, the 2020 Related Parties held a total of $71.2 million, of the Subordinated Notes. In connection with the closing of the Public Offering on October 6, 2020, Highbridge and Mudrick acquired 833,333, and 3,222,222 of the units, consisting of shares of common stock and Public Offering Warrants, issued in the Public Offering, respectively. Refer to Note 12 - Warrant Liabilities |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Sprott Credit Agreement Waiver and Amendment On February 28, 2022, the Company entered into the Waiver and Amendment among Hycroft Mining Holding Corporation, Sprott Private Resource Lending (Collector), L.P. and Sprott Private Resource Lending II (Co) Inc. amending the previous waiver obtained. Pursuant to the Waiver and Amendment, the lender has (i) waived the Company’s obligation under the Sprott Credit Agreement to maintain at least $9.0 million of Unrestricted Cash on the last day of each calendar month during the period ending May 10, 2022 (the “Waiver Period”), provided that, the Company maintains at least $7.5 million of Unrestricted Cash on the last day of February 2022 and at least $9.0 million on the last day of each month thereafter during the Waiver Period; (ii) waived all obligations of the Company to prepay the facility with the net cash proceeds of any Mill Asset Sales (as defined in the Waiver and Amendment) until the earlier of (A) the date on which the Company completes a private placement or other offering or issuance of its equity securities (the “Offering Date”) and (B) March 31, 2022; and (iii) extended the payment due date for the additional February interest payment and the February principal payment pursuant to the Sprott Credit Agreement until the earlier of (A) the Offering Date and (B) March 31, 2022. Further, pursuant to the Waiver and Amendment, any failure by the Company to comply with the terms of the preceding sentence shall constitute an immediate Event of Default under the Sprott Credit Agreement. Pursuant to the Waiver and Amendment, the Company waived its Reduction Right under and as defined in the Sprott Royalty Agreement. On March 11, 2022, the Company entered into an agreement (the “2022 March Sprott Agreement”) with the Lender under the Sprott Credit Agreement. Pursuant to the 2022 March Sprott Agreement, the Company was contemplating the sale or issuance of its equity securities pursuant to one or more transactions to be completed on or before March 31, 2022 (the “Equity Financing Transactions”). Subsequent to the 2022 March Sprott Agreement and prior to March 31, 2022, the Company entered into Equity Financing Transactions resulting in the Company’s receipt of total gross cash proceeds (before deduction of fees and expenses) of at least $50 million obligating the Lender and the Company to amend the principal repayment terms under the Sprott Credit Agreement such that no further scheduled payments of principal shall be required prior to May 31, 2025 (the “Maturity Date”) (i.e., there will be no required regular amortization payments of the Facility (as defined in the Sprott Credit Agreement) and the full principal balance of the Facility shall be due and payable in a single “bullet” payment on the Maturity Date). The March 2022 Sprott Agreement also provided that, in connection with the modification of the required Facility amortization payments, the Company shall pay to the Lender an amount equal to $3.3 million, with such payment to be capitalized and added to the principal amount owing under the Sprott Credit Agreement and accrue interest at the same rate and upon the same terms as the existing loans under the Sprott Credit Agreement; provided, the payment or prepayment of such capitalized principal amount shall not be subject to the Prepayment Premium (as defined in the Sprott Credit Agreement) or any other penalty or premium. Second Amendment to Sprott Credit Agreement On March 30, 2022, the Company and Lender under the Sprott Credit Agreement entered into the Second Amended and Restated Credit Agreement (“Second A&R Agreement”), which (a) extends the maturity date for all of the loans and other principal obligations under the Sprott Credit Facility by two years, to May 31, 2027; (b) provides for the Company to prepay principal under the facility in the amount of $10.0 million promptly upon the Company’s receipt of cash proceeds from the Private Placement offering with American Multi-Cinema, Inc. and 2176423 Ontario Limited (the “Initial Equity Proceeds Prepayment”); (c) provides for the Company to prepay principal under the Sprott Credit Agreement in the amount of $13.9 million (representing 10% of the subsequent issuance of its equity interests consummated on or prior to March 31, 2022) (the “Subsequent Equity Proceeds Prepayments”); and (d) eliminates the prepayment premiums otherwise payable with respect to the Initial Equity Proceeds Prepayment, the Subsequent Equity Proceeds Prepayments and all future prepayments of principal under the Sprott Credit Facility. In addition, the Company’s obligations to prepay principal with proceeds of asset sales will be credited/offset by the aggregate amount of Initial Equity Proceeds Prepayment and the Subsequent Equity Proceeds Prepayments ($23.9 million), and to maintain a minimum amount of Unrestricted Cash (as defined in the Second A&R Agreement) is increased to $15.0 million. The Company (i) paid the previously deferred additional interest payment of $0.5 million, (ii) made the Initial Equity Proceeds Prepayment of $10.0 million and paid in kind a $3.3 million fee in connection with the modification and capitalized it to principal on March 16, 2022 and (iii) made the Subsequent Equity Proceeds Prepayment of $13.9 million on March 30, 2022; and after giving effect to such prepayments the outstanding principal balance under the Sprott Credit Agreement is estimated to be $57.9 million (before issuance discounts) including unpaid additional interest of approximately $7.1 million. Amendment to the 10% Senior Secured Notes and Note Exchange Agreement On March 14, 2022, the Company entered into an amendment to the 10% Senior Secured Notes and Note Exchange Agreement (the “Note Amendment”), with (i) certain direct and indirect subsidiaries of the Company as Guarantors; (ii) holders of the 10% Senior Secured Notes (the "Notes"), including certain funds affiliated with, or managed by, Mudrick Capital Management, L.P, Whitebox Advisors, LLC, Highbridge Capital Management, LLC, Aristeia Highbridge Capital Management, LLC and Wolverine Asset Management, LLC (collectively, the “Amending Holders”), and (iii) Wilmington Trust, National Association, in its capacity as collateral agent. The Note Amendment amends the Note Exchange Agreement dated as of January 13, 2020 (the “Note Exchange Agreement”) and the Notes (as defined in the Note Exchange Agreement) issued thereunder in order to extend the maturity date of the Notes from December 1, 2025 to December 1, 2027. The Note Amendment also removes the requirements that a holder receive the consent of the Company and the other holders in order to transfer any Note. The Amending Holders constitute all of the holders of the Notes. The Note Amendment became effective upon the closing of a private placement upon receipt of $55.9 million gross cash proceeds (before deduction of fees and expenses). Private placement offering On March 14, 2022, the Company entered into subscription agreements with two private investors pursuant to which the Company agreed to sell the entities an aggregate of 46,816,480 units at a purchase price per unit of $1.193 with each unit consisting of one share of the Company’s common stock and one warrant to purchase a share of Common Stock and the shares issuable upon exercise of the Warrants (the “Warrant Shares”), providing for a total purchase price of approximately $55.9 million. The Warrants have an exercise price of $1.068 per Warrant Share, and will expire five years after issuance. On March 15, 2022, the private placement offering closed and the Company received gross proceeds of $55.9 million before deducting expenses incurred in connection with therewith. At-the-market offering On March 15, 2022, the Company implemented an “at-the-market" offering ("ATM Program") by entering into an At Market Issuance Sales Agreement with B. Riley Securities, Inc. ("Sales Agreement"). Under the terms of the Sales Agreement, the Company may from time to time to or through the Agent, acting as sales agent or principal, offer and sell shares of its Class A common stock, par value $0.0001 per share, having a gross sales price of up to $500.0 million. Shares of common stock sold under the Sales Agreement,were issued pursuant to the Company’s shelf registration statement on Form S-3 (No. 333-257567) that the Securities and Exchange Commission declared effective on July 13, 2021, including the prospectus, dated July 13, 2021, and the prospectus settlement, dated March 15, 2022, as the same may be amended or supplemented. The Company completed the ATM Program on March 25, 2022 and received total gross proceeds, before deducting fees and expenses of the ATM Program, of $138.6 million for the sale of 89,553,602 shares of the Company’s common stock. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentationThese consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). |
Recapitalization Transaction | Recapitalization Transaction The Recapitalization Transaction (see Note 3 - Recapitalization Transaction ) was accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, for financial reporting purposes, MUDS has been treated as the “acquired” company and Hycroft Mining Corporation (“Seller”) has been treated as the “acquirer”. This determination was primarily based on (1) stockholders of Seller immediately prior to the Recapitalization Transaction having a relative majority of the voting power of the combined entity; (2) the operations of Seller prior to the Recapitalization Transaction comprising the only ongoing operations of the combined entity; (3) four of the seven members of the Board of Directors immediately following the Recapitalization Transaction were directors of Seller immediately prior to the Recapitalization Transaction; and (4) executive and senior management of Seller comprises the same for the Company. Based on Seller being the accounting acquirer, the financial statements of the combined entity represent a continuation of the financial statements of Seller, with the acquisition treated as the equivalent of Seller issuing stock for the net assets of MUDS, accompanied by a recapitalization. The net assets of MUDS were recognized at historical cost as of the date of the Recapitalization Transaction, with no goodwill or other intangible assets recorded. Comparative information prior to the Recapitalization Transaction in these financial statements are those of Seller and the accumulated deficit of Seller has been carried forward after the Recapitalization Transaction. The shares and net loss per common share prior to the Recapitalization Transaction have been retroactively restated as shares reflecting the exchange ratio established in the Recapitalization Transaction to effect the reverse recapitalization (1 Seller share for 0.112 HYMC share). See Note 3 - Recapitalization Transaction for additional information. |
Liquidity | Liquidity As of December 31, 2021, the Company had available cash on hand of $12.3 million and working capital of $6.1 million which, along with additional funds received subsequent to year-end, is expected to provide it with the necessary liquidity to fund its operating and investing requirements and future obligations as they become due within the next twelve months from the date of this filing. While the Company expects to continue processing gold and silver ore on the leach pads after ceasing mining operations for the pre-commercial scale ROM operation and partially offset the cash that is projected to be used in its operations and investing activities, the Company does not expect to generate net positive cash from operations for the foreseeable future. Accordingly, the Company will be dependent on its unrestricted cash and other sources of cash to fund its business. As discussed in Note 25 - Subsequent Events, the Company raised gross proceeds of $194.4 million in March 2022 through the following equity financings: • On March 14, 2022, the Company entered into subscription agreements with two private investors pursuant to which the Company agreed to sell an aggregate of 46,816,480 units at a purchase price of $1.193 per unit for total net proceeds of $55.9 million. • On March 15, 2022, the Company implemented an at-the-market offering program pursuant to which the Company has registered the offer and sale from time to time of its common stock having an aggregate offering price of up to $500.0 million of gross proceeds. Under the at-the-market offering, the Company sold 89,553,602 shares of common stock for net proceeds of $138.6 million . Also, as discussed in Note 25 - Subsequent Events , as a result of the equity financings above, the Company reached an agreement with the Lender (as hereinafter defined) with respect to the Sprott Credit Agreement which required the Company to prepay principal under the facility in the amount of $10.0 million following the Company’s receipt of the $55.9 million cash proceeds discussed above. In addition, the Company made the additional prepayment of $13.9 million on March 30, 2022. In addition to the above equity financings, the Company will continue to evaluate alternatives to raise additional capital necessary to fund the future development of the Hycroft Mine and will continue to explore other strategic initiatives to enhance stockholder value. Historically, the Company has been dependent on various forms of debt and equity financing to fund its business. While the Company has been successful in the past raising funds through equity and debt financings, no assurance can be given that additional financing will be available to it in amounts sufficient to meet the Company’s needs or on terms acceptable to the Company. In the event that funds are not available, the Company may be required to materially change its business plans. |
Use of estimates | Use of estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in these financial statements and accompanying notes. The more significant areas requiring the use of management estimates and assumptions relate to: recoverable gold and silver ounces on stockpiles, leach pads and in-process inventories; timing of near-term ounce production and related sales; the useful lives of long-lived assets; probabilities of future expansion projects; estimates of mineral resources; estimates of life-of-mine production timing, volumes, costs and prices; current and future mining and processing plans; environmental reclamation and closure costs and timing; deferred taxes and related valuation allowances; estimates of the fair value of liability classified warrants, and estimates of fair value for asset impairments and financial instruments. The Company bases its estimates on technical analyses and measurements, historical experience and various other assumptions that are believed to be reasonable at the time the estimate is made. Actual results may differ from amounts estimated in these financial statements, and such differences could be material. Accordingly, amounts presented in these financial statements are not indicative of results that may be expected for future periods. |
Cash | Cash Cash consisted of cash balances as of December 31, 2021. The Company has not experienced any losses on cash balances and believes that no significant risk of loss exists with respect to its cash. As of December 31, 2021, and December 31, 2020, the Company held no cash equivalents. Restricted cash Restricted cash is held as collateral for surety bonds that the Company uses to fulfill financial assurance obligations related to reclamation activity (see Note 13 - Asset Retirement Obligation |
Accounts receivable | Accounts receivable Accounts receivable consists of amounts due from customers for gold and silver sales. The Company evaluates the customers’ credit risk, payment history and financial condition to determine whether an allowance for doubtful accounts is necessary. The Company did not have accounts receivable amounts outstanding as of December 31, 2021 and the Company did not have a recorded allowance for doubtful accounts as of December 31, 2020. |
Inventories and Ore on Leach Pads | Inventories and Ore on Leach Pads The Company’s production-related inventories include: (i) stockpiles; (ii) ore on leach pads; (iii) in-process inventories; and (iv) doré, off-site carbon and slag finished goods. Production-related inventories are carried at the lower of average cost or net realizable value per estimated recoverable gold ounce, which is computed for each category of production-related inventories at each reporting period. Net realizable value represents the estimated future gold revenue of production-related inventories after adjusting for silver by-product revenue and deductions for further processing, refining, and selling costs. The estimated future revenue is calculated using sales prices based on the London Bullion Market Association’s (“LBMA”) quoted period-end gold prices. Estimates for silver revenue by-products credits is based on LBMA quoted period-end silver prices and deductions for estimated costs to complete reflect the Company’s historical experience and expected processing, refining and selling plans. Actual net realizable values for gold sales may be different from such estimates. Changes to inputs and estimates resulting from changes in facts and circumstances are recognized as a change in management estimate on a prospective basis. Stockpiles Stockpiles represent ore that has been extracted from the mine and is available for further processing. Stockpiles are subject to oxidation over time which can impact expected future recoveries depending on the process recovery method. The value of the stockpiles is measured by estimating the number of tons added and removed from the stockpiles, the number of contained ounces based on assay data, and the estimated metallurgical recovery rates based on the expected processing method. Costs are added to the value of the stockpiles based on current mining costs, including applicable overhead and depreciation and amortization relating to the Company's mining operations. Ore on leach pads Ore on leach pads represents ore that has been mined and placed on leach pads where a solution is applied to dissolve the contained gold and silver. Costs are added to ore on leach pads based on current mining costs, including reagents, leaching supplies, and applicable depreciation and amortization relating to mining operations. As gold-bearing materials are further processed, costs are transferred from ore on leach pads to in-process inventories at an average cost per estimated recoverable ounce of gold. Although the quantities of recoverable metal placed on the leach pads are reconciled by comparing the grades of ore placed on pads to the quantities of metal actually recovered (metallurgical balancing), the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored, and estimates are refined based on actual results over time and changes in future estimates. In-process inventories In-process inventories represent gold-bearing concentrated materials that are in the process of being converted to a saleable product using a Merrill-Crowe plant or carbon-in-column processing method. As gold ounces are recovered from in-process inventories, costs, including conversion costs are transferred to precious metals inventory at an average cost per ounce of gold. Precious metals inventory Precious metals inventory consists of doré and loaded carbon containing both gold and silver, which is ready for offsite shipment or at a third-party refiner before being sold to a third party. As gold ounces are sold, costs are recognized in Production costs and Depreciation and amortization in the consolidated statements of operations at an average cost per gold ounce sold. Materials and supplies |
Property, plant, equipment, and mine development, net | Plant, equipment, and mine development, net Expenditures for new facilities and equipment, and expenditures that extend the useful lives or increase the capacity of existing facilities or equipment are capitalized and recorded at cost. Such costs are depreciated using either the straight-line method over the estimated productive lives of such assets or the units-of-production method (when actively operating). For equipment and facilities that are constructed by the Company, interest is capitalized to the cost of the underlying asset while being constructed until such asset is ready for its intended use. See Note 6 - Plant, Equipment, and Mine Development, Net for additional information. Mine development Mine development costs include the cost of engineering and metallurgical studies, drilling and assaying costs to delineate an ore body, environmental permitting costs, and the building of infrastructure. Any of the above costs incurred before mineralization is classified as proven and probable mineral reserves are expensed. Drilling, engineering, metallurgical, and other related costs are capitalized for an ore body where proven and probable reserves exist and the activities are directed at obtaining additional information on the ore body, converting non-reserve mineralization to proven and probable mineral reserves, infrastructure planning, or supporting the environmental impact statement and permitting activities. All other exploration drilling costs are expensed as incurred. Drilling costs incurred during the production phase for operational ore control are allocated to production-related inventories and upon the sale of gold ounces are included in Cost of sales on the Consolidated Statements of Operations. |
Impairment of long-lived assets and Assets held for sale | Impairment of long-lived assets The Company’s long-lived assets consist of Plant, equipment, and mine development, net . The Company reviews and evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Events that may trigger a test for recoverability include, but are not limited to, significant adverse changes to projected revenues, costs, or future expansion plans or changes to federal and state regulations (with which the Company must comply) that may adversely impact the Company’s current or future operations. An impairment is determined to exist if the total projected future cash flows on an undiscounted basis are less than the carrying amount of a long-lived asset group. An impairment loss is measured and recorded based on the excess carrying value of the impaired long-lived asset group over fair value. Assets held for sale The Company classifies long-lived assets or disposal groups to be sold as held for sale in the period in which all of the following criteria are met: (1) management, having the authority to approve the action, commits to a plan to sell the asset or disposal group; (2) the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets or disposal groups; (3) an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; (4) the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the asset or disposal group beyond one year; (5) the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a long-lived asset or disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held-for-sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset or disposal group until the date of sale. The Company assesses the fair value of a long-lived asset or disposal group less any costs to sell each reporting period it remains classified as held for sale and report any subsequent changes as an adjustment to the carrying value of the asset or disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale. Upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, the Company ceases depreciation and reports long-lived assets and/or the assets and liabilities of the disposal group as Assets held for sale |
Deferred gain on sale of royalty | Deferred gain on sale of royalty The Company's Deferred gain on sale of royalty is carried at amortized cost with reductions calculated by dividing actual gold and silver production by the estimated total life-of-mine production from proven and probable mineral reserves. Any updates to proven and probable mineral reserves or the estimated life-of-mine production profile would result in prospective adjustments to the amortization calculation used to reduce the carrying value of the royalty obligation. Amortization reductions to the Deferred gain on sale of royalty are recorded to Production costs which is included in Cost of sales . A portion of the Company’s Deferred gain on sale of royalty is classified as current based upon the estimated gold and silver expected to be produced over the next 12 months. The Deferred gain on sale of royalty and its embedded features do not meet the requirements for derivative accounting. |
Asset retirement obligation | Asset retirement obligation The Company’s mining and exploration activities are subject to various federal and state laws and regulations governing the protection of the environment. The Company’s asset retirement obligation (“ARO”), associated with long-lived assets are those for which there is a legal obligation to settle under existing law, statute, written or oral contract or by legal construction. The Company’s ARO relates to its operating property, the Hycroft Mine, and was recognized as a liability at fair value in the period incurred. An ARO, which is initially estimated based on discounted cash flow estimates, is accreted to full value over time using the expected timing of future payments through charges to Accretion |
Revenue recognition | Revenue recognition The Company recognizes revenue for gold and silver sales when it satisfies the performance obligation of transferring finished inventory to the customer, which generally occurs when the refiner notifies the customer that gold has been credited or irrevocably pledged to their account, at which point the customer obtains the ability to direct the use and obtain substantially all of the remaining benefits of ownership of the asset. The transaction amount is determined based on the agreed upon sales prices and the number of ounces delivered. Concurrently, the payment date is agreed upon, which is usually within one week of the sale date. The majority of sales are in the form of doré bars, but the Company also sells gold and silver laden carbon and slag, a by-product. All sales are final. |
Mine site period costs | Mine site period costsMine site period costs are generally the result of costs related to activities at the Hycroft Mine that do not qualify for capitalization to production-related inventories or adjustments to production inventories that are the result of recurring or significant downtime or delays, unusually high levels of repairs, inefficient operations, overuse of processing reagents, inefficient cost-volume structures, or other costs and activities, and cannot be recorded to production-related inventories based on the threshold established by the calculation of the estimated net realizable value per ounce of gold, which incorporates estimated future processing, refining, and selling costs, as well as the value for silver by-product. |
Stock-based compensation | Stock-based compensation Stock-based compensation costs for non-employee Directors and eligible employees are measured at fair value on the date of grant. Stock-based compensation costs are charged to General and administrative on the Consolidated Statements of |
Income taxes | Income taxes The Company accounts for income taxes using the liability method, recognizing certain temporary differences between the financial reporting basis of the Company’s liabilities and assets and the related income tax basis for such liabilities and assets. This method generates either a net deferred income tax liability or asset for the Company, as measured by the statutory tax rates in effect at the anticipated time of reversal. The Company derives its deferred income tax provision or benefit by recording the change in either the net deferred income tax liability or asset balance for the year. See Note 17 - Income Taxes for additional information. The Company’s deferred income tax assets include certain future tax benefits. The Company records a valuation allowance against any portion of those deferred income tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized. Evidence evaluated includes past operating results, forecasted earnings, estimated future taxable income, and prudent and feasible tax planning strategies. The assumptions utilized in determining future taxable income require significant judgment and are consistent with the plans and estimates used to manage the underlying business. As necessary, the Company also provides reserves against the benefits of uncertain tax positions taken on its tax filings. The necessity for and amount of a reserve is established by determining, based on the weight of available evidence, the amount of benefit that is more likely than not to be sustained upon audit for each uncertain tax position. The difference, if any, between the full benefit recorded on the tax return and the amount more likely than not to be sustained is recorded as a liability on the Company’s Consolidated Balance Sheets unless the additional tax expense that would result from the disallowance of the tax position can be offset by a net operating loss, a similar tax loss, or a tax credit carryforward. In that case, the reserve is recorded as a reduction to the deferred tax asset associated with the applicable net operating loss, similar tax loss, or tax credit carryforward. |
Fair value measurements | Fair value measurements Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements , defines fair value and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis; Level 2 – Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Certain financial instruments, including Cash , Restricted cash , Accounts receivable , Prepaids and other, net , and Accounts payable and accrued expenses, are carried at cost, which approximates their fair value due to the short-term nature of these instruments. See Note 20 - Fair Value Measurements for additional information. |
Warrants | Warrants Warrant liabilities The Company accounts for certain warrants to purchase shares of the Company’s common stock that were issued to the SPAC sponsor and/or underwriter in a private placement and/or pursuant to a forward purchase contract (the “5-Year Private Warrants”) that are not indexed to the Company’s own stock as Warrant liabilities at fair value on the Consolidated Balance Sheets. These warrants are subject to remeasurement at each balance sheet date and any change in fair value is recognized as a component of Other expenses on the Consolidated Statements of Operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the (i) exercise or expiration of the 5-Year Private Warrants or (ii) the transfer of any 5-Year Private Warrants to any person who is not a permitted transferee, at which time the warrant liability will be reclassified to Additional paid-in capital on the Consolidated Balance Sheets. Equity classified warrants Warrants that are considered indexed to the Company's own stock, which are not required to be recorded as a liability are measured at fair value at the date of issuance and included in Additional paid-in capital |
Projects, exploration and development | Projects, exploration and development Costs incurred for exploration, development and other project related expenses that do not qualify for capitalization are expensed within Projects, exploration and development , which is included in Operating expenses on the Consolidated Statements of Operations. Projects, exploration and development costs include expenditures for: (i) publishing technical studies; (ii) conducting geological studies; (iii) oversight and project management; and (iv) drilling, engineering, and metallurgical activities related to exploration and development. |
Accounting pronouncements not yet adopted | Recently adopted accounting pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, Leases ("ASU 2016-02"). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated statements of operations and classification within the consolidated statement of cash flows. In October 2019, the FASB issued ASU No. 2019-10, Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) ("ASU 2019-10") that amends the effective date of ASU 2016-02 for emerging growth companies, such that the new standard is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company early adopted this standard as of January 1, 2021 using the modified retrospective approach. The comparative information has not been adjusted and continues to be reported under the accounting standard in effect for those periods. The new standard offers a number of optional practical expedients of which the Company elected the following: Transition elections: The Company elected the land easements practical expedient whereby existing land easements were not reassessed under the new standard. Ongoing accounting policy elections : The Company elected the short-term lease recognition exemption whereby right-of-use assets and lease liabilities will not be recognized for leasing arrangements with terms less than one year. The Company elected the practical expedient to not separate lease and non-lease components for the majority of its underlying asset classes. Based on contracts outstanding at January 1, 2021, the adoption of the new standard resulted in the recognition of additional operating lease ROU assets and lease liabilities of $0.1 million, and finance lease ROU assets and lease liabilities of $0.3 million. ROU assets are included in Plant, equipment, and mine development, net on the Consolidated Balance Sheets, and lease liabilities are included in the non-current portion of Other liabilities on the Consolidated Balance Sheets. Adoption of this standard did not have a material impact to the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows. Accounting pronouncements not yet adopted In December of 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), as part as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Amendments include removal of certain exceptions to the general principles of ASC 740, Income Taxes and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. For emerging growth companies, the new guidance is effective for annual periods beginning after December 15, 2021. As the Company qualifies as an emerging growth company, the Company plans to take advantage of the deferred effective date afforded to emerging growth companies. The Company is currently evaluating the impact that adopting this update will have on its consolidated financial statements and related disclosures. In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). ASU 2020-06 simplifies guidance on accounting for convertible instruments and contracts in an entity’s own equity including calculating diluted earnings per share. For emerging growth companies, the new guidance is effective for annual periods beginning after December 15, 2022. As the Company qualifies as an emerging growth company, the Company plans to take advantage of the deferred effective date afforded to emerging growth companies. The Company is currently evaluating the impact that adopting this update will have on its consolidated financial statements and related disclosures. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force) . ASU 2021-04 clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options ( e.g, , warrants) that remain equity classified after modification or exchange. ASU 2021-04 provides guidance that will clarify whether an issuer should account for a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as (i) an adjustment to equity and, if so, the related earnings per share effects, if any, or (ii) an expense and, if so, the manner and pattern of recognition. The new guidance is effective for annual and interim periods beginning after December 15, 2021, and early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact that adopting this update will have on its consolidated financial statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Mine site period costs | The following table summarize the components of Mine site period costs (dollars in thousands): Year Ended December 31, 2021 2020 Production related costs $ 36,512 $ 44,127 Capitalized depreciation and amortization 1,654 2,988 Total $ 38,166 $ 47,115 |
Recapitalization Transaction (T
Recapitalization Transaction (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Company's common stock issued and outstanding upon closing of the Recapitalization Transaction | The following table summarizes the ownership of the Company’s common stock issued and outstanding upon closing of the Recapitalization Transaction: Shares Ownership % Former Seller stockholders and affiliated entities 48,421,309 96.5 % Former MUDS public stockholders (1) 1,197,704 2.4 % Lender to Sprott Credit Agreement 496,634 1.0 % Cantor Fitzgerald & Co. 44,395 0.1 % Total shares issued and outstanding 50,160,042 100.0 % (1) Includes 200,000 shares held by Cantor. |
Inventories and Ore on Leach _2
Inventories and Ore on Leach Pads (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | The following table provides the components of Inventories and the estimated recoverable gold ounces therein (dollars in thousands): December 31, 2021 December 30, 2020 Amount Gold Ounces Amount Gold Ounces Inventories, current: Materials and supplies $ 4,376 — $ 6,449 — Merrill-Crowe process plant 11 6 4,810 2,587 Carbon-in-column 3,493 2,044 299 166 Finished goods (doré and off-site carbon) 3,189 1,799 1,309 710 Inventories, non-current: Stockpiles (1) — — — — Total $ 11,069 3,849 $ 12,867 3,463 (1) During 2021, the Company began stockpiling sulfide ore. The Company intends to use the stockpiles for testing or for future processing through a mill and subsequent oxidation process. As of December 31, 2021, stockpiles had a value of $Nil as the Company did not have established proven and probable mineral reserves. |
Schedule of inventory, Ore on leach pads | The following table summarizes Ore on leach pads and the estimated recoverable gold ounces therein (dollars in thousands): December 31, 2021 December 31, 2020 Amount Gold Ounces Amount Gold Ounces Ore on leach pads, current $ 10,106 7,130 $ 38,041 21,869 Ore on leach pads, non-current — — 7,243 4,164 Total $ 10,106 7,130 $ 45,284 26,033 |
Prepaids and Other, Net (Tables
Prepaids and Other, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of prepaids and other | The following table provides the components of Prepaids and other, net and Other assets (dollars in thousands): December 31, December 31, Prepaids and other, net Prepaids Insurance $ 1,014 $ 1,847 Mining claims and permitting fees 891 417 License fees 186 259 Equipment mobilization — 423 Other 56 252 Deposits 195 1,105 Total $ 2,342 $ 4,303 Other assets Equipment not in use $ — $ 12,238 Royalty - advance payment 600 360 Prepaid supplies inventory — 885 Total $ 600 $ 13,483 |
Plant, Equipment, and Mine De_2
Plant, Equipment, and Mine Development, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Components of plant, equipment, and mine development, net | The following table provides the components of Plant, equipment, and mine development, net (dollars in thousands): Depreciation Life December 31, December 31, Leach pads Units-of-production $ 17,431 $ 17,432 Process equipment 5 - 15 years 17,735 16,065 Buildings and leasehold improvements 10 years 9,280 10,507 Mine equipment 5 - 7 years 6,224 5,961 Vehicles 3 - 5 years 1,454 991 Furniture and office equipment 7 years 330 322 Mine development Units-of-production — 756 Construction in progress and other 35,794 33,222 $ 88,248 $ 85,256 Less, accumulated depreciation and amortization (29,764) (25,033) Total $ 58,484 $ 60,223 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Components of restricted cash | The following table provides the components of Restricted cash (dollars in thousands): December 31, December 31, Reclamation and other surety bond cash collateral $ 34,293 $ 39,677 |
Assets Held For Sale (Tables)
Assets Held For Sale (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Disclosure of long lived assets held-for-sale | The following table summarizes the Company's Assets held for sale by asset class as of December 31, 2021 and 2020 (dollars in thousands): December 31, December 31, Equipment not in use $ 11,163 $ — Mine equipment 125 — Materials and supplies 270 — Total $ 11,558 $ — |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Components of other liabilities | The following table summarizes the components of current and non-current portions of Other liabilities (dollars in thousands): December 31, December 31, Other liabilities, current Accrued compensation $ 2,641 $ 1,560 Salary continuation payments 935 1,215 Restricted stock units 714 913 Deferred payroll tax liability 471 436 Excise tax liability 268 — Accrued directors' fees 15 33 Total $ 5,044 $ 4,157 Other liabilities, non-current Lease liability Finance lease liability $ 286 — Operating lease liability 53 $ — Salary continuation payments — 1,145 Deferred payroll tax liability — 505 Total $ 339 $ 1,650 |
Debt, Net (Tables)
Debt, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Components of debt | The following table summarizes the components of Debt, net (dollars in thousands): December 31, December 31, Debt, net, current: Sprott Credit Agreement $ 17,223 $ 5,274 Note payable 115 — Less, debt issuance costs (672) (154) Total $ 16,666 $ 5,120 Debt, net, non-current: Subordinated Notes $ 93,599 $ 84,797 Sprott Credit Agreement (1) 51,809 61,894 Note payable 345 — Less, debt issuance costs (2,115) (4,026) Total $ 143,638 $ 142,665 (1) Non-current portion of the Sprott Credit Agreement as of the years ended December 31, 2021 and 2020 is presented net of original issue discount of 10.0 million and $14.7 million, respectively. |
Schedule of maturities of long-term debt | The following table summarizes the Company's contractual payments of Debt, net , including current maturities, for the four years subsequent to December 31, 2021 (dollars in thousands): 2022 17,338 2023 24,879 2024 24,864 2025 106,034 Total 173,115 Less, original issue discount, net of amortization ($7.0 million) (10,024) Less, debt issuance costs, net of amortization ($2.1 million) (2,787) Total debt, net $ 160,304 |
Components of recorded interest expense | The following table summarizes the components of recorded Interest expense, net of capitalized interest (dollars in thousands): Years Ended December 31, 2021 2020 Sprott Credit Agreement $ 10,997 $ 6,009 Subordinated Notes 8,803 4,797 Amortization of debt issuance costs 1,394 1,972 Other interest expense 53 40 2.0 Lien Notes — 12,902 1.5 Lien Notes — 8,635 1.25 Lien Notes — 6,218 First Lien Agreement — 4,575 Promissory Note — 141 Capitalized interest (654) (1,831) Total $ 20,593 $ 43,458 |
Warrant Liabilities (Tables)
Warrant Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Summary of outstanding warrants | The following table summarizes the Company's outstanding warrants included in Warrant liabilities on the Consolidated Balance Sheets (dollars in thousands): Balance at January 1, 2021 Fair Value Adjustments (1) Transfers to an Unrelated Third Party Balance at Warrants Amount Warrants Amount Warrants Amount Warrants Amount Warrant liabilities 5-Year Private Warrants 9,888,415 $ 15,326 — $ (14,368) (409,585) $ (294) 9,478,830 $ 664 Seller Warrants 12,721,901 63 — (58) — — 12,721,901 5 Total 22,610,316 $ 15,389 — $ (14,426) (409,585) $ (294) 22,200,731 $ 669 Balance at January 1, 2020 Warrant Issuances Fair value adjustments (1) Transfers to an Unrelated Third Party Balance at Warrants Amount Warrants Amount Warrants Amount Warrants Amount Warrants Amount Warrant liabilities 5-Year Private Warrants — $ — 10,240,000 $ 12,185 — $ 3,722 (351,585) $ (581) 9,888,415 $ 15,326 Seller Warrants 12,721,901 18 — — — 45 — — 12,721,901 63 Total 12,721,901 $ 18 10,240,000 $ 12,185 — $ 3,767 $ (351,585) $ (581) 22,610,316 $ 15,389 (1) Liability classified warrants are subject to fair value remeasurement at each balance sheet date in accordance with ASC 814-40, Contracts on Entity's Own Equity. As a result, fair value adjustments related exclusively to the Company's liability classified warrants. Refer to Note 20 - Fair Value Measurements for further detail on the fair value of the Company's liability classified warrants. The following table summarizes additional information on the Company's outstanding warrants: Exercise Price Exercise Period Expiration Date Warrants Outstanding Warrant liabilities 5-Year Private Warrants $ 11.50 5 years May 29, 2025 9,478,830 Seller Warrants 40.31 7 years October 22, 2022 12,721,901 The following table summarizes the Company's outstanding warrants included in Additional paid-in capital on the Consolidated Balance Sheets (dollars in thousands): Balance at January 1, 2021 Warrant Issuances Exercises of warrants Transfers from an Unrelated Third Party Balance at Warrants Amount Warrants Amount Warrants Amount Warrants Amount Warrants Amount Equity classified warrants 5-Year Public Warrants 24,401,483 $ 28,618 — $ — — $ — 409,585 $ 294 24,811,068 $ 28,912 Public Offering Warrants 9,583,334 12,938 — — — — — — 9,583,334 12,938 Total 33,984,817 $ 41,556 — $ — — $ — $ 409,585 $ 294 33,984,918 $ 41,850 Balance at January 1, 2020 Warrant Issuances Exercises of warrants Transfers from an Unrelated Third Party Balance at Warrants Amount Warrants Amount Warrants Amount Warrants Amount Warrants Amount Equity classified warrants 5-Year Public Warrants 20,800,000 $ 25,100 3,249,999 $ 2,938 (101) $ (1) 351,585 $ 581 24,401,483 $ 28,618 Public Offering Warrants — — 9,583,334 12,938 — — — $ — 9,583,334 $ 12,938 Total 20,800,000 $ 25,100 12,833,333 $ 15,876 (101) $ (1) $ 351,585 $ 581 33,984,817 $ 41,556 The following table summarizes additional information on the Company's outstanding warrants: Exercise Price Exercise Period Expiration Date Warrants Outstanding Equity classified warrants 5-Year Public Warrants $ 11.50 5 years May 29, 2025 24,811,068 Public Offering Warrants 10.50 5 years October 6, 2025 9,583,334 |
Asset Retirement Obligations ("
Asset Retirement Obligations ("ARO") (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Summary of changes in ARO | The following table summarizes changes in the Company’s ARO (dollars in thousands): December 31, 2021 December 31, 2020 Balance, beginning of period $ 4,785 $ 4,374 Accretion expense 408 374 Changes in estimates — 37 Balance, end of period $ 5,193 $ 4,785 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Summary of outstanding warrants | The following table summarizes the Company's outstanding warrants included in Warrant liabilities on the Consolidated Balance Sheets (dollars in thousands): Balance at January 1, 2021 Fair Value Adjustments (1) Transfers to an Unrelated Third Party Balance at Warrants Amount Warrants Amount Warrants Amount Warrants Amount Warrant liabilities 5-Year Private Warrants 9,888,415 $ 15,326 — $ (14,368) (409,585) $ (294) 9,478,830 $ 664 Seller Warrants 12,721,901 63 — (58) — — 12,721,901 5 Total 22,610,316 $ 15,389 — $ (14,426) (409,585) $ (294) 22,200,731 $ 669 Balance at January 1, 2020 Warrant Issuances Fair value adjustments (1) Transfers to an Unrelated Third Party Balance at Warrants Amount Warrants Amount Warrants Amount Warrants Amount Warrants Amount Warrant liabilities 5-Year Private Warrants — $ — 10,240,000 $ 12,185 — $ 3,722 (351,585) $ (581) 9,888,415 $ 15,326 Seller Warrants 12,721,901 18 — — — 45 — — 12,721,901 63 Total 12,721,901 $ 18 10,240,000 $ 12,185 — $ 3,767 $ (351,585) $ (581) 22,610,316 $ 15,389 (1) Liability classified warrants are subject to fair value remeasurement at each balance sheet date in accordance with ASC 814-40, Contracts on Entity's Own Equity. As a result, fair value adjustments related exclusively to the Company's liability classified warrants. Refer to Note 20 - Fair Value Measurements for further detail on the fair value of the Company's liability classified warrants. The following table summarizes additional information on the Company's outstanding warrants: Exercise Price Exercise Period Expiration Date Warrants Outstanding Warrant liabilities 5-Year Private Warrants $ 11.50 5 years May 29, 2025 9,478,830 Seller Warrants 40.31 7 years October 22, 2022 12,721,901 The following table summarizes the Company's outstanding warrants included in Additional paid-in capital on the Consolidated Balance Sheets (dollars in thousands): Balance at January 1, 2021 Warrant Issuances Exercises of warrants Transfers from an Unrelated Third Party Balance at Warrants Amount Warrants Amount Warrants Amount Warrants Amount Warrants Amount Equity classified warrants 5-Year Public Warrants 24,401,483 $ 28,618 — $ — — $ — 409,585 $ 294 24,811,068 $ 28,912 Public Offering Warrants 9,583,334 12,938 — — — — — — 9,583,334 12,938 Total 33,984,817 $ 41,556 — $ — — $ — $ 409,585 $ 294 33,984,918 $ 41,850 Balance at January 1, 2020 Warrant Issuances Exercises of warrants Transfers from an Unrelated Third Party Balance at Warrants Amount Warrants Amount Warrants Amount Warrants Amount Warrants Amount Equity classified warrants 5-Year Public Warrants 20,800,000 $ 25,100 3,249,999 $ 2,938 (101) $ (1) 351,585 $ 581 24,401,483 $ 28,618 Public Offering Warrants — — 9,583,334 12,938 — — — $ — 9,583,334 $ 12,938 Total 20,800,000 $ 25,100 12,833,333 $ 15,876 (101) $ (1) $ 351,585 $ 581 33,984,817 $ 41,556 The following table summarizes additional information on the Company's outstanding warrants: Exercise Price Exercise Period Expiration Date Warrants Outstanding Equity classified warrants 5-Year Public Warrants $ 11.50 5 years May 29, 2025 24,811,068 Public Offering Warrants 10.50 5 years October 6, 2025 9,583,334 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The table below is a summary of the Company’s gold and silver sales (dollars in thousands): Years Ended December 31, 2021 2020 Amount Ounces Sold Amount Ounces Sold Gold sales $ 100,532 56,045 $ 44,279 24,892 Silver sales 10,202 397,546 2,765 136,238 Total $ 110,734 $ 47,044 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of restricted stock unit activity | The following table summarizes the Company’s unvested share awards granted under the PIPP: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Unvested awards at December 31, 2019 339,271 $ 10.96 Granted 517,234 8.11 Canceled/forfeited (1) (131,724) 11.32 Vested (179,085) 11.05 Unvested awards at December 31, 2020(1) 545,696 $ 8.12 Unvested awards at December 31, 2020 545,696 $ 8.12 Granted 1,171,869 5.08 Impact of fluctuations in price of common stock 1,632,136 0.61 Canceled/forfeited (1) (762,822) 3.42 Vested (375,968) 4.06 Unvested awards at December 31, 2021 (1) 2,210,911 $ 2.82 (1) Amounts include liability-based awards for which the number of units awarded is not determined until the vesting date. The number of liability-based award units included in this amount are estimated using the market value of the Company's common shares as of the end of each year . |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense (benefit) | The components of the Company’s income tax expense (benefit) were as follows (in thousands): Years Ended December 31, 2021 2020 Current Federal $ (1,530) $ — Deferred Federal (14,495) 146,794 Change in Valuation Allowance 14,495 (146,794) Income Tax Benefit $ (1,530) $ — |
Schedule of effective income tax rate reconciliation | The following table provides a reconciliation of income taxes computed at the United States federal statutory tax rate of 21% in 2021 and 2020 to the income tax provision (in thousands): Years Ended December 31, 2021 2020 Loss before income taxes $ (90,094) $ (136,392) United States statutory income tax rate 21 % 21% Income tax (benefit) at United States statutory income tax rate $ (18,920) $ (28,642) Change in valuation allowance 14,495 (146,794) Recapitalization transaction — 157,855 Cancellation of debt income — 15,360 State tax provision, net of federal benefit — 1,263 Warrant liability fair value adjustment 3,030 790 Other (135) 168 Income Tax Benefit $ (1,530) $ — |
Components of deferred tax assets | The components of the Company’s deferred tax assets are as follows (in thousands): Years Ended December 31, 2021 2020 Net operating loss $ 30,355 $ 7,675 Mineral properties 39,371 39,555 Plant, equipment, and mine development 25,506 30,767 Intangible assets 20,204 21,710 Royalty 6,266 6,292 Interest expense carryforward — 1,935 Asset retirement obligation 1,083 997 Stock-based compensation 856 405 Accrued compensation 502 197 Inventories 76 191 Reorganization costs — — Other liabilities — — Credits and other — — Valuation allowance (124,219) (109,724) Total net deferred tax assets $ — $ — |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted loss per share | The table below summarizes the Company's basic and diluted loss per share calculations (in thousands, except share and per share amounts): Years Ended December 31, 2021 2020 Net loss $ (88,564) $ (136,392) Weighted average shares outstanding Basic 60,101,499 34,833,211 Diluted 60,101,499 34,833,211 Basic loss per common share $ (1.47) $ (3.92) Diluted loss per common share $ (1.47) $ (3.92) |
Schedule of antidilutive securities excluded from computation | The following table summarizes the shares excluded from the weighted average number of common shares outstanding, as the impact would be anti-dilutive (in thousands): December 31, 2021 2020 Warrants 47,442 37,500 Restricted stock units 2,211 149 Total 49,653 37,649 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of segment information | The tables below summarize the Company's segment information (dollars in thousands): Year Ended December 31, Hycroft Mine Corporate and Other Total 2021 Revenue - Note 15 $ 110,734 $ — $ 110,734 Cost of sales 163,338 — 163,338 Other operating costs 16,688 14,619 31,307 Loss from operations (69,292) (14,619) (83,911) Interest expense, net of capitalized interest - Note 10 — (20,593) (20,593) Fair value adjustment to warrants - Notes 12 and 20 — 14,426 14,426 Gain on sale of equipment $ (16) $ — $ (16) Loss before income taxes $ (69,308) $ (20,786) $ (90,094) Income tax benefit - Note 17 — 1,530 1,530 Net loss $ (69,308) $ (19,256) $ (88,564) Total Assets $ 138,971 $ 3,353 $ 142,324 2020 Revenue - Note 15 $ 47,044 $ — $ 47,044 Cost of sales 109,621 — 109,621 Other operating costs 5,705 21,084 26,789 Loss from operations (68,282) (21,084) (89,366) Interest expense, net of capitalized interest - Note 10 (141) (43,317) (43,458) Fair value adjustment to warrants - Notes 12 and 20 — (3,767) (3,767) Interest income 199 — 199 Net loss $ (68,224) $ (68,168) $ (136,392) Total Assets $ 177,298 $ 55,328 $ 232,626 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value on recurring basis | The following table sets forth by level within the fair value hierarchy, the Company’s liabilities that are measured at fair value on a recurring basis (dollars in thousands). Hierarchy December 31, December 31, Warrant liabilities 5-Year Private Warrants 2 664 15,327 Seller Warrants 2 5 62 Total $ 669 $ 15,389 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of supplemental cash flow information | The following table provides supplemental cash flow information (dollars in thousands): Year Ended December 31, 2021 2020 Cash interest paid $ 3,732 $ 5,366 Significant non-cash financing and investing activities: Exchange of Seller's 1.5 Lien Notes for HYMC common stock — 160,254 Exchange of Seller's 1.25 Lien Notes for Subordinated Notes — 80,000 Exchange of Seller's 1.25 Lien Notes for HYMC common stock — 48,459 Write-off of Seller's debt issuance costs — 8,202 Increase in debt from in-kind interest 11,425 — Plant, equipment, and mine development additions included in Accounts payable and accrued liabilities 538 1,229 Accrual of deferred financing and equity issuance costs — 94 Liability based restricted stock units transferred to equity 765 — |
Company Overview - Narrative (D
Company Overview - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021consultant | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of metallurgical consultants | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | Mar. 30, 2022USD ($) | Mar. 16, 2022USD ($) | Mar. 15, 2022USD ($)shares | Mar. 15, 2022USD ($) | Mar. 14, 2022USD ($)investor$ / sharesshares | May 29, 2020USD ($)$ / sharesshares | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jan. 01, 2021USD ($) |
Financing Receivable, Impaired [Line Items] | ||||||||||
Cash | $ 68,900,000 | $ 12,342,000 | $ 56,363,000 | |||||||
Working capital | 6,100,000 | |||||||||
Cash equivalents | 0 | 0 | ||||||||
Restricted cash | 34,293,000 | 39,677,000 | ||||||||
Impairment charges and write-downs | 17,326,000 | 23,255,000 | ||||||||
Impairment on equipment | 0 | |||||||||
ASU 2016-02 | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Operating lease, right-of-use asset | $ 100,000 | |||||||||
Right-of-use assets, finance leases | $ 300,000 | |||||||||
Mine development | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Impairment charges and write-downs | 6,700,000 | |||||||||
Private placement | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Number of shares issued (in shares) | shares | 7,600,000 | |||||||||
Offering price (in dollars per share) | $ / shares | $ 10 | |||||||||
Proceeds from private placement and forward purchase contract | $ 76,000,000 | $ 0 | $ 75,963,000 | |||||||
Subsequent event | Sprott credit agreement, noncurrent portion | Credit facility | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Principal prepayment | $ 10,000,000 | |||||||||
Principal prepaid | $ 13,900,000 | $ 10,000,000 | ||||||||
Subsequent event | Private placement | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Proceeds from issuance of equity | $ 50,000,000 | |||||||||
Number of private investors | investor | 2 | |||||||||
Number of shares issued (in shares) | shares | 46,816,480 | |||||||||
Offering price (in dollars per share) | $ / shares | $ 1.193 | |||||||||
Proceeds from private placement and forward purchase contract | $ 55,900,000 | |||||||||
Common Stock | Subsequent event | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Proceeds from issuance of equity | $ 138,600,000 | $ 194,400,000 | ||||||||
Number of shares issued (in shares) | shares | 89,553,602 | |||||||||
Sale of stock, consideration received per transaction | $ 500,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Mine site period costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Production related costs | $ 36,512 | $ 44,127 |
Capitalized depreciation and amortization | 1,654 | 2,988 |
Total | $ 38,166 | $ 47,115 |
Recapitalization Transaction -
Recapitalization Transaction - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | May 29, 2020 | May 28, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 19, 2021 | Oct. 06, 2020 | Jul. 01, 2020 | Dec. 31, 2019 | ||
Business Acquisition [Line Items] | ||||||||||
Cash | $ 68,900 | $ 12,342 | $ 56,363 | |||||||
Common stock, shares issued (in shares) | 50,160,042 | 60,433,395 | 59,901,306 | |||||||
Common stock, shares outstanding (in shares) | 50,160,042 | 2,900,000 | 60,433,395 | 59,901,306 | ||||||
Percentage of stock issued to creditors | 1.00% | |||||||||
Proceeds from sale of royalty to Sprott | $ 30,000 | $ 0 | $ 30,000 | |||||||
Smelter royalty obligation, percentage | 1.50% | |||||||||
Restricted cash | 34,293 | $ 39,677 | ||||||||
Common Stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Common shares issued (in shares) | [1] | 101 | ||||||||
Exchange of Seller's 1.25 Lien Notes for HYMC common stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Debt converted | 0 | $ 48,459 | ||||||||
Debt conversion, number of shares issued | 4,845,920 | |||||||||
Exchange of Seller's 1.5 Lien Notes for HYMC common stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Debt converted | $ 0 | $ 160,254 | ||||||||
Debt conversion, number of shares issued | 16,025,316 | |||||||||
2.0 Lien Notes to common stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Common stock, shares issued (in shares) | 2,900,000 | |||||||||
Debt conversion, number of shares issued | 132,800,000 | |||||||||
Transaction consideration (in shares) | 15,100,000 | |||||||||
Stock surrendered (in shares) | 3,500,000 | 3,511,820 | ||||||||
Notes payable | Conversion of 1.25 Lien Notes to New Subordinated Notes | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Debt conversion, amount | $ 80,000 | |||||||||
First Lien Agreement | Notes payable | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Amount of debt repurchased | 125,500 | |||||||||
Promissory Note | Notes payable | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Amount of debt repurchased | 6,900 | |||||||||
1.25 Lien Notes | Notes payable | Exchange of Seller's 1.25 Lien Notes for HYMC common stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Debt converted | 48,500 | |||||||||
1.25 Lien Notes | Notes payable | Conversion of 1.25 Lien Notes to New Subordinated Notes | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Debt converted | 80,000 | |||||||||
1.5 Lien Notes | Notes payable | Exchange of Seller's 1.5 Lien Notes for HYMC common stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Debt converted | $ 145,700 | |||||||||
Repurchase price (percent) | 110.00% | |||||||||
2.0 Lien Notes | Notes payable | 2.0 Lien Notes to common stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Debt converted | $ 221,300 | $ 221,300 | ||||||||
The 1.25 Lien notes | Conversion of 1.25 Lien Notes to New Subordinated Notes | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Debt converted | 80,000 | |||||||||
Sprott credit agreement, noncurrent portion | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Stated amount of borrowing | $ 70,000 | |||||||||
Debt, original issue discount (percent) | 2.00% | |||||||||
Sprott credit agreement, noncurrent portion | Credit facility | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Stated amount of borrowing | $ 70,000 | |||||||||
Debt, original issue discount (percent) | 2.00% | |||||||||
SPAC Trust | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of shares issued (in shares) | 1,200,000 | |||||||||
Proceeds from private placement and forward purchase contract | $ 10,400 | |||||||||
Cantor Fitzgerald & Co. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash payment to underwriter | 2,500 | |||||||||
Payment for stock that had not been redeemed | $ 2,000 | |||||||||
Cantor Fitzgerald & Co. | Common Stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of shares issued (in shares) | 40,000 | |||||||||
Holders of Seller's phantom unit | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payment of deferred additional interest | $ 1,800 | |||||||||
Payment of transaction costs | 7,400 | |||||||||
Seller | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Restricted cash | $ 2,300 | |||||||||
Warrants, exercise price 11.50 | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Outstanding warrants (in shares) | 34,289,999 | |||||||||
Warrants, exercise price (in dollars per share) | $ 11.50 | |||||||||
Number of securities called by warrants (in shares) | 34,289,999 | |||||||||
Warrants, exercise price 44.82 | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Outstanding warrants (in shares) | 12,721,623 | |||||||||
Warrants, exercise price (in dollars per share) | $ 44.82 | |||||||||
Number of securities called by warrants (in shares) | 3,210,213 | |||||||||
5-Year Public Warrants | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Outstanding warrants (in shares) | 7,740,000 | 24,811,068 | 24,401,483 | 20,800,000 | ||||||
Warrants, exercise price (in dollars per share) | $ 11.50 | $ 11.50 | $ 11.50 | |||||||
Number of securities called by warrants (in shares) | 3,249,999 | |||||||||
Number of securities called by each warrant (in shares) | 1 | |||||||||
5-Year Public Warrants | SPAC Trust | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Outstanding warrants (in shares) | 27,900,000 | |||||||||
Warrants, exercise price (in dollars per share) | $ 11.50 | |||||||||
Seller Warrants | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Outstanding warrants (in shares) | 12,700,000 | 12,721,901 | 12,721,901 | 12,700,000 | 12,721,901 | |||||
Warrants, exercise price (in dollars per share) | $ 40.31 | $ 41.26 | $ 40.31 | $ 44.82 | ||||||
Number of securities called by warrants (in shares) | 3,569,129 | 3,487,168 | 3,569,051 | 3,210,213 | ||||||
Number of securities called by each warrant (in shares) | 0.28055 | 0.27411 | 0.28055 | 0.2523 | ||||||
Private placement | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of shares issued (in shares) | 7,600,000 | |||||||||
Offering price (in dollars per share) | $ 10 | |||||||||
Proceeds from private placement and forward purchase contract | $ 76,000 | $ 0 | $ 75,963 | |||||||
Private placement | Common Stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Common shares issued (in shares) | [1] | 7,596,309 | ||||||||
Private placement | 5-Year Public Warrants | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Warrants, exercise price (in dollars per share) | $ 11.50 | |||||||||
Number of securities called by warrants (in shares) | 3,250,000 | |||||||||
Number of warrants issued (in shares) | 3,250,000 | |||||||||
Forward Purchase Contract | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of securities called by warrants (in shares) | 2,500,000 | |||||||||
Number of shares issued (in shares) | 3,125,000 | |||||||||
Proceeds from private placement and forward purchase contract | $ 25,000 | |||||||||
Number of shares converted | 5,200,000 | |||||||||
Forward Purchase Contract | Class B common stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Shares surrendered as transaction consideration (in shares) | 3,500,000 | |||||||||
Forward Purchase Contract | 5-Year Public Warrants | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Warrants, exercise price (in dollars per share) | $ 11.50 | |||||||||
Number of warrants issued (in shares) | 2,500,000 | |||||||||
Sprott credit agreement, noncurrent portion | Common Stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Common shares issued (in shares) | 496,634 | 496,634 | [1] | |||||||
MUDS | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Common stock, shares issued (in shares) | 50,160,042 | |||||||||
Common stock, shares outstanding (in shares) | 50,160,042 | |||||||||
Cash acquired | $ 10,400 | |||||||||
Liabilities assumed | $ 6,900 | |||||||||
[1] | Retroactively restated January 1, 2020 and March 31, 2020 for the reverse recapitalization as described in Note 2 - Summary of Significant Accounting Policies, and the restated reclassification of the Company's 5-Year Private Warrants as described in Note 12 - Warrant Liabilities . |
Recapitalization Transaction _2
Recapitalization Transaction - Company's common stock issued and outstanding (Details) - shares | Dec. 31, 2021 | Dec. 31, 2020 | May 29, 2020 | May 28, 2020 |
Business Acquisition [Line Items] | ||||
Common stock, shares issued (in shares) | 60,433,395 | 59,901,306 | 50,160,042 | |
Common stock, shares outstanding (in shares) | 60,433,395 | 59,901,306 | 50,160,042 | 2,900,000 |
MUDS | ||||
Business Acquisition [Line Items] | ||||
Common stock, shares issued (in shares) | 50,160,042 | |||
Common stock, shares outstanding (in shares) | 50,160,042 | |||
Ownership % | 100.00% | |||
MUDS | Investors | Former Seller stockholders and affiliated entities | ||||
Business Acquisition [Line Items] | ||||
Common stock, shares issued (in shares) | 48,421,309 | |||
Common stock, shares outstanding (in shares) | 48,421,309 | |||
Ownership % | 96.50% | |||
MUDS | Investors | Former MUDS public stockholders | ||||
Business Acquisition [Line Items] | ||||
Common stock, shares issued (in shares) | 1,197,704 | |||
Common stock, shares outstanding (in shares) | 1,197,704 | |||
Ownership % | 2.40% | |||
MUDS | Investors | Lender to Sprott Credit Agreement | ||||
Business Acquisition [Line Items] | ||||
Common stock, shares issued (in shares) | 496,634 | |||
Common stock, shares outstanding (in shares) | 496,634 | |||
Ownership % | 1.00% | |||
MUDS | Investors | Cantor Fitzgerald & Co. | ||||
Business Acquisition [Line Items] | ||||
Common stock, shares issued (in shares) | 44,395 | |||
Common stock, shares outstanding (in shares) | 44,395 | |||
Ownership % | 0.10% | |||
MUDS | Investors | Cantor | ||||
Business Acquisition [Line Items] | ||||
Common stock, shares outstanding (in shares) | 200,000 |
Inventories and Ore on Leach _3
Inventories and Ore on Leach Pads - Schedule of inventory (Details) | Dec. 31, 2021USD ($)oz | Dec. 31, 2020USD ($)oz |
Amount | ||
Materials and supplies | $ | $ 4,376,000 | $ 6,449,000 |
Merrill-Crowe process plant | $ | 11,000 | 4,810,000 |
Carbon-in-column | $ | 3,493,000 | 299,000 |
Finished goods (doré and off-site carbon) | $ | 3,189,000 | 1,309,000 |
Stockpiles | $ | 0 | 0 |
Total | $ | $ 11,069,000 | $ 12,867,000 |
Gold Ounces | ||
Materials and supplies | oz | 0 | 0 |
Merrill-Crowe process plant | oz | 6 | 2,587 |
Carbon-in-column | oz | 2,044 | 166 |
Finished goods (doré and off-site carbon) | oz | 1,799 | 710 |
Stockpiles | oz | 0 | 0 |
Total | oz | 3,849 | 3,463 |
Inventories and Ore on Leach _4
Inventories and Ore on Leach Pads - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)oz | Dec. 31, 2020USD ($) | |
Inventory [Line Items] | ||
Capitalized costs | $ 400,000 | $ 300,000 |
Capitalized costs, leach pads, current | 600,000 | 1,800,000 |
Capitalized costs, leach pads, noncurrent | 400,000 | |
Write-down of inventories | 13,878,000 | 17,924,000 |
Capitalized costs, ounces of gold | 3,612 | |
Inventory, firm purchase commitment, loss | $ 2,100,000 | |
Purchase commitment, period | 3 years | |
Inventory, leach pads, production costs written off | $ 0 | 16,700,000 |
Inventory, leach pads, gold written off | oz | 6,512 | |
Inventory, leach pads, capitalized costs written off | 1,200,000 | |
Ore On Leach Pads Inventory | ||
Inventory [Line Items] | ||
Write-down of inventories | $ 5,500,000 | |
Materials and Supplies Inventory | ||
Inventory [Line Items] | ||
Write-down of inventories | $ 5,900,000 |
Inventories and Ore on Leach _5
Inventories and Ore on Leach Pads - Schedule of inventory, Ore on leach pads (Details) $ in Thousands | Dec. 31, 2021USD ($)oz | Dec. 31, 2020USD ($)oz |
Amount | ||
Ore on leach pads, current | $ | $ 10,106 | $ 38,041 |
Ore on leach pads, non-current | $ | 0 | 7,243 |
Total | $ | $ 10,106 | $ 45,284 |
Gold Ounces | ||
Ore on leach pads, current | oz | 7,130 | 21,869 |
Ore on leach pads, non-current | oz | 0 | 4,164 |
Total | oz | 7,130 | 26,033 |
Prepaids and Other, Net - Compo
Prepaids and Other, Net - Components of prepaids and other (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Prepaids | ||
Insurance | $ 1,014 | $ 1,847 |
Mining claims and permitting fees | 891 | 417 |
License fees | 186 | 259 |
Equipment mobilization | 0 | 423 |
Other | 56 | 252 |
Deposits | 195 | 1,105 |
Total | 2,342 | 4,303 |
Other assets | ||
Equipment not in use | 0 | 12,238 |
Royalty - advance payment | 600 | 360 |
Prepaid supplies inventory | 0 | 885 |
Total | $ 600 | $ 13,483 |
Prepaids and Other, Net - Narra
Prepaids and Other, Net - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)equipment | |
Property, Plant and Equipment [Line Items] | |||
Write-off of deposit - Note 5 | $ | $ 916 | $ 0 | |
Impairment of equipment | $ | $ 5,300 | $ 1,777 | $ 5,331 |
Royalty payment, percentage of net profit | 4.00% | ||
Ball Mills | |||
Property, Plant and Equipment [Line Items] | |||
Equipment not in use | 3 | ||
SAG Mill | |||
Property, Plant and Equipment [Line Items] | |||
Equipment not in use | 1 | ||
Regrind Mill | |||
Property, Plant and Equipment [Line Items] | |||
Equipment not in use | 1 |
Plant, Equipment, and Mine De_3
Plant, Equipment, and Mine Development, Net - Components of plant, equipment, and mine development, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Plant, equipment and mine development, gross | $ 88,248 | $ 85,256 | |
Less, accumulated depreciation and amortization | (29,764) | (25,033) | |
Total | 58,484 | 60,223 | |
Leach pads | |||
Property, Plant and Equipment [Line Items] | |||
Plant, equipment and mine development, gross | 17,431 | 17,432 | |
Process equipment | |||
Property, Plant and Equipment [Line Items] | |||
Plant, equipment and mine development, gross | $ 17,735 | 16,065 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years | ||
Plant, equipment and mine development, gross | $ 9,280 | 10,507 | |
Mine equipment | |||
Property, Plant and Equipment [Line Items] | |||
Plant, equipment and mine development, gross | 6,224 | 5,961 | |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Plant, equipment and mine development, gross | $ 1,454 | 991 | |
Furniture and office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 7 years | ||
Plant, equipment and mine development, gross | $ 330 | 322 | |
Mine development | |||
Property, Plant and Equipment [Line Items] | |||
Plant, equipment and mine development, gross | 0 | 756 | |
Construction in progress and other | |||
Property, Plant and Equipment [Line Items] | |||
Plant, equipment and mine development, gross | $ 35,794 | $ 34,100 | $ 33,222 |
Minimum | Process equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Minimum | Mine equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Minimum | Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Maximum | Process equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 15 years | ||
Maximum | Mine equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 7 years | ||
Maximum | Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years |
Plant, Equipment, and Mine De_4
Plant, Equipment, and Mine Development, Net - Narrative (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | |
Feb. 28, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Impairment charges and write-downs | $ 17,326 | $ 23,255 | |
Capitalized interest | 654 | 1,831 | |
Plant, equipment and mine development, gross | 88,248 | 85,256 | |
Leach pads | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 1,700 | ||
Plant, equipment and mine development, gross | 17,431 | 17,432 | |
Mine development | |||
Property, Plant and Equipment [Line Items] | |||
Impairment charges and write-downs | 6,700 | ||
Plant, equipment and mine development, gross | 0 | 756 | |
Construction in progress and other | |||
Property, Plant and Equipment [Line Items] | |||
Additions to property, plant and equipment | $ 3,200 | ||
Capitalized interest | 700 | ||
Plant, equipment and mine development, gross | $ 34,100 | $ 35,794 | $ 33,222 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Reclamation and other surety bond cash collateral | $ 34,293 | $ 39,677 |
Decrease in restricted cash due to collateral requirements | 5,400 | |
Surety bond | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Guarantor obligations | 59,300 | |
Hycroft Mine | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Guarantor obligations | 58,300 | |
Water supply | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Guarantor obligations | $ 1,000 |
Assets Held For Sale (Details)
Assets Held For Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total | $ 11,558 | $ 0 | |
Impairment on equipment | $ 5,300 | 1,777 | 5,331 |
Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total | 11,558 | 0 | |
Equipment not in use | Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total | 11,163 | 0 | |
Mine equipment | Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total | 125 | 0 | |
Materials and supplies | Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total | $ 270 | $ 0 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other liabilities, current | ||
Accrued compensation | $ 2,641 | $ 1,560 |
Salary continuation payments | 935 | 1,215 |
Restricted stock units | 714 | 913 |
Deferred payroll tax liability | 471 | 436 |
Excise tax liability | 268 | 0 |
Accrued directors' fees | 15 | 33 |
Total | 5,044 | 4,157 |
Other liabilities, non-current | ||
Finance lease liability | 286 | 0 |
Operating lease liability | 53 | 0 |
Salary continuation payments | 0 | 1,145 |
Deferred payroll tax liability | 0 | 505 |
Total | $ 339 | $ 1,650 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Total | Total |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Total | Total |
Other Liabilities - Narrative (
Other Liabilities - Narrative (Details) - USD ($) $ in Thousands | Oct. 08, 2021 | Oct. 06, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Payroll tax deferred, due year one | 50.00% | ||||
Excise tax liability | $ 268 | $ 0 | |||
Randy buffington | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Notes reduction in exchange for stock | $ 700 | ||||
Debt conversion, number of shares issued | 137,500 | ||||
Randy buffington | Forecast | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Debt conversion, number of shares issued | 275,000 | ||||
Minimum | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Agreement period for postemployment benefits | 12 months | ||||
Maximum | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Agreement period for postemployment benefits | 24 months |
Debt, Net - Narrative (Details)
Debt, Net - Narrative (Details) | Oct. 31, 2020USD ($) | May 29, 2020USD ($)$ / sharesshares | May 28, 2020USD ($)shares | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)shares | Nov. 09, 2021USD ($) | Nov. 08, 2021USD ($) | Oct. 04, 2019USD ($) | ||
Debt Instrument [Line Items] | ||||||||||
Percentage of stock issued to creditors | 1.00% | |||||||||
Unamortized discount | $ 10,024,000 | $ 14,700,000 | ||||||||
Share price (in dollars per share) | $ / shares | $ 0.61 | |||||||||
Common shares issued | 1,000 | |||||||||
Proceeds from sales of equipment | $ 2,300,000 | $ 117,000 | 2,315,000 | |||||||
2.0 Lien Notes to common stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common shares issued upon conversion | [1] | 220,859,000 | ||||||||
Debt conversion, number of shares issued | shares | 132,800,000 | |||||||||
Exchange of Seller's 1.5 Lien Notes for HYMC common stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt converted | 0 | 160,254,000 | ||||||||
Debt conversion, number of shares issued | shares | 16,025,316 | |||||||||
Exchange of Seller's 1.25 Lien Notes for HYMC common stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt converted | 0 | 48,459,000 | ||||||||
Common shares issued upon conversion | 48,459,000 | |||||||||
Debt conversion, number of shares issued | shares | 4,845,920 | |||||||||
1.5 Lien Notes into common stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common shares issued upon conversion | $ 145,685,000 | |||||||||
Common Stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of shares issued (in shares) | shares | [2] | 101 | ||||||||
Common Stock | 2.0 Lien Notes to common stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common shares issued upon conversion | [1],[2] | $ 2,000 | ||||||||
Common shares issued upon conversion (in shares) | shares | [1],[2] | 14,795,153 | ||||||||
Common Stock | Exchange of Seller's 1.25 Lien Notes for HYMC common stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common shares issued upon conversion (in shares) | shares | [2] | 4,845,920 | ||||||||
Common Stock | 1.5 Lien Notes into common stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common shares issued upon conversion | [2] | $ 2,000 | ||||||||
Common shares issued upon conversion (in shares) | shares | [2] | 16,025,316 | ||||||||
Additional Paid-in Capital | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common shares issued | [2] | $ 1,000 | ||||||||
Additional Paid-in Capital | 2.0 Lien Notes to common stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common shares issued upon conversion | [1],[2] | 146,217,000 | ||||||||
Additional Paid-in Capital | Exchange of Seller's 1.25 Lien Notes for HYMC common stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common shares issued upon conversion | [2] | 48,459,000 | ||||||||
Additional Paid-in Capital | 1.5 Lien Notes into common stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common shares issued upon conversion | [2] | 160,252,000 | ||||||||
Accumulated Deficit | 2.0 Lien Notes to common stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common shares issued upon conversion | [1] | 74,640,000 | ||||||||
Accumulated Deficit | 1.5 Lien Notes into common stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common shares issued upon conversion | (14,569,000) | |||||||||
Sprott credit agreement, noncurrent portion | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Share price (in dollars per share) | $ / shares | $ 12.65 | |||||||||
Common shares issued | $ 6,282,000 | |||||||||
Sprott credit agreement, noncurrent portion | Common Stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of shares issued (in shares) | shares | 496,634 | 496,634 | [2] | |||||||
Sprott credit agreement, noncurrent portion | Additional Paid-in Capital | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common shares issued | $ 6,300,000 | $ 6,282,000 | [2] | |||||||
Subordinated debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate | 10.00% | |||||||||
Notes payable | Conversion of 1.25 Lien Notes to New Subordinated Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate | 10.00% | |||||||||
Debt conversion, amount | $ 80,000,000 | |||||||||
Sprott credit agreement, noncurrent portion | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 110,000,000 | |||||||||
Stated amount of borrowing | $ 70,000,000 | |||||||||
Debt, original issue discount (percent) | 2.00% | |||||||||
Original issue discount | $ 1,400,000 | |||||||||
Remaining borrowing capacity | 40,000,000 | |||||||||
Proceeds from issuance of debt | 62,300,000 | $ 0 | 68,600,000 | |||||||
Interest obligation | 9,300,000 | |||||||||
Unamortized discount | $ 17,000,000 | |||||||||
Stated interest rate | 7.00% | 8.50% | ||||||||
Basis spread on variable rate | 1.50% | |||||||||
Periodic payment, first twelve months | $ 0 | |||||||||
Percentage of interest capitalized | 100.00% | |||||||||
Quarterly interest payable | $ 500,000 | |||||||||
Periodic payment term | 3 months | |||||||||
First four principal repayments, percentage of outstanding principal | 2.50% | |||||||||
Subsequent principal repayments, percentage of outstanding principal | 7.50% | |||||||||
Debt term | 5 years | |||||||||
Amount of debt repurchased | $ 1,200,000 | |||||||||
Sprott credit agreement, noncurrent portion | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Early repayment premium | 3.00% | |||||||||
Payment terms, percent of proceeds received | 50.00% | |||||||||
Sprott credit agreement, noncurrent portion | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Early repayment premium | 5.00% | |||||||||
Payment terms, percent of proceeds received | 100.00% | |||||||||
Sprott credit agreement, noncurrent portion | Credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Minimum unrestricted cash | $ 9,000,000 | $ 10,000,000 | ||||||||
Stated amount of borrowing | $ 70,000,000 | |||||||||
Debt, original issue discount (percent) | 2.00% | |||||||||
The 1.25 Lien notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from issuance of debt | $ 0 | $ 44,841,000 | ||||||||
Business combination pursuant lien exchange agreement | 1.25 | |||||||||
The 1.25 Lien notes | Conversion of 1.25 Lien Notes to New Subordinated Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Business combination pursuant lien exchange agreement | 1.25 | |||||||||
Debt converted | $ 80,000,000 | |||||||||
2.0 Lien Notes | Notes payable | 2.0 Lien Notes to common stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate | 15.00% | |||||||||
Debt converted | $ 221,300,000 | $ 221,300,000 | ||||||||
Conversion price (percent) | 1.67 | |||||||||
1.5 Lien Notes | Notes payable | Exchange of Seller's 1.5 Lien Notes for HYMC common stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate | 15.00% | |||||||||
Debt converted | $ 145,700,000 | |||||||||
Repurchase price (percent) | 110.00% | |||||||||
Percentage of aggregate debt principal converted (percent) | 10.00% | |||||||||
1.25 Lien Notes | Notes payable | Conversion of 1.25 Lien Notes to New Subordinated Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt converted | $ 80,000,000 | |||||||||
1.25 Lien Notes | Notes payable | Exchange of Seller's 1.25 Lien Notes for HYMC common stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate | 15.00% | |||||||||
Debt converted | $ 48,500,000 | |||||||||
First Lien Agreement | Notes payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount of debt repurchased | $ 125,500,000 | |||||||||
First Lien Agreement | Notes payable | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 7.50% | |||||||||
First Lien Agreement | Notes payable | Alternate Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 7.50% | |||||||||
Promissory Note | Notes payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount of debt repurchased | $ 6,900,000 | |||||||||
[1] | Includes 3,511,820 shares of HYMC common stock received by Seller that were surrendered by the Company. | |||||||||
[2] | Retroactively restated January 1, 2020 and March 31, 2020 for the reverse recapitalization as described in Note 2 - Summary of Significant Accounting Policies, and the restated reclassification of the Company's 5-Year Private Warrants as described in Note 12 - Warrant Liabilities . |
Debt, Net - Components of debt
Debt, Net - Components of debt (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt, net, current: | ||
Less, debt issuance costs, current | $ (672) | $ (154) |
Total | 16,666 | 5,120 |
Debt, net, non-current: | ||
Less, debt issuance costs, noncurrent | (2,115) | (4,026) |
Total | 143,638 | 142,665 |
Unamortized discount | 10,024 | 14,700 |
Notes payable | ||
Debt, net, current: | ||
Debt, gross, current | 115 | 0 |
Debt, net, non-current: | ||
Debt, gross, noncurrent | 345 | 0 |
Sprott Credit Agreement | ||
Debt, net, current: | ||
Debt, gross, current | 17,223 | 5,274 |
Debt, net, non-current: | ||
Debt, gross, noncurrent | 51,809 | 61,894 |
Subordinated Notes | ||
Debt, net, non-current: | ||
Debt, gross, noncurrent | $ 93,599 | $ 84,797 |
Debt, Net - Schedule of maturit
Debt, Net - Schedule of maturities of long-term debt (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2022 | $ 17,338 | |
2023 | 24,879 | |
2024 | 24,864 | |
2025 | 106,034 | |
Total | 173,115 | |
Less, original issue discount, net of amortization ($7.0 million) | (10,024) | $ (14,700) |
Less, debt issuance costs, net of amortization ($2.1 million) | (2,787) | |
Total debt, net | 160,304 | $ 147,800 |
Original issue discount, accumulated amortization | 7,000 | |
Debt issuance costs, accumulated amortization | $ 2,100 |
Debt, Net - Components of recor
Debt, Net - Components of recorded interest expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Amortization of debt issuance costs | $ 1,394 | $ 1,972 |
Other interest expense | 53 | 40 |
Capitalized interest | (654) | (1,831) |
Total interest expense, debt | 20,593 | 43,458 |
Sprott Credit Agreement | ||
Debt Instrument [Line Items] | ||
Interest expense, debt | 10,997 | 6,009 |
Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Interest expense, debt | 8,803 | 4,797 |
2.0 Lien Notes | ||
Debt Instrument [Line Items] | ||
Interest expense, debt | 0 | 12,902 |
1.5 Lien Notes | ||
Debt Instrument [Line Items] | ||
Interest expense, debt | 0 | 8,635 |
1.25 Lien Notes | ||
Debt Instrument [Line Items] | ||
Interest expense, debt | 0 | 6,218 |
First Lien Agreement | ||
Debt Instrument [Line Items] | ||
Interest expense, debt | 0 | 4,575 |
Promissory Note | ||
Debt Instrument [Line Items] | ||
Interest expense, debt | $ 0 | $ 141 |
Deferred Gain on Sale of Roya_2
Deferred Gain on Sale of Royalty (Details) - USD ($) $ in Thousands | May 29, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | |||
Proceeds from royalty obligation | $ 30,000 | $ 0 | $ 30,000 |
Smelter royalty obligation, percentage | 1.50% | ||
Smelter royalty obligation, right to repurchase percentage | 33.30% | ||
Smelter royalty obligation, right to repurchase percentage, net of returns | 0.50% | ||
Amortization of royalty obligation | 100 | ||
Payments for royalty obligations | 2,300 | ||
Deferred gain on sale of royalty | $ 125 | $ 124 |
Warrant Liabilities - Summary o
Warrant Liabilities - Summary of outstanding warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 19 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Jan. 19, 2021 | Jul. 01, 2020 | May 29, 2020 | ||
Class of Warrant or Right [Roll Forward] | |||||||
Fair Value Adjustments | $ (14,426) | $ 3,767 | |||||
Transfers to an Unrelated Third Party | $ 294 | [1] | $ 581 | ||||
Warrant liabilities | |||||||
Class of Warrant or Right [Roll Forward] | |||||||
Beginning balance (in shares) | 22,610,316 | 12,721,901 | |||||
Beginning balance | $ 15,389 | $ 18 | |||||
Warrant Issuances (in shares) | 10,240,000 | ||||||
Warrant Issuances | $ 12,185 | ||||||
Fair Value Adjustments | $ (14,426) | $ 3,767 | |||||
Exercises of warrants (in shares) | (409,585) | (351,585) | |||||
Exercises of warrants | $ (294) | $ (581) | |||||
Ending balance (in shares) | 22,200,731 | 22,610,316 | 22,200,731 | ||||
Ending balance | $ 669 | $ 15,389 | $ 669 | ||||
Outstanding warrants (in shares) | 22,200,731 | 22,610,316 | 22,200,731 | ||||
5-Year Private Warrants | |||||||
Class of Warrant or Right [Roll Forward] | |||||||
Beginning balance (in shares) | 9,888,415 | 0 | |||||
Beginning balance | $ 15,326 | $ 0 | |||||
Warrant Issuances (in shares) | 10,240,000 | ||||||
Warrant Issuances | $ 12,185 | ||||||
Fair Value Adjustments | $ (14,368) | $ 3,722 | |||||
Exercises of warrants (in shares) | (409,585) | (351,585) | |||||
Transfers to an Unrelated Third Party (in shares) | 409,585 | 351,585 | 761,170 | ||||
Exercises of warrants | $ (294) | $ (581) | |||||
Ending balance (in shares) | 9,478,830 | 9,888,415 | 9,478,830 | ||||
Ending balance | $ 664 | $ 15,326 | $ 664 | ||||
Warrants, exercise price (in dollars per share) | $ 11.50 | $ 11.50 | |||||
Warrant term | 5 years | 5 years | |||||
Outstanding warrants (in shares) | 9,478,830 | 9,888,415 | 9,478,830 | ||||
Seller Warrants | |||||||
Class of Warrant or Right [Roll Forward] | |||||||
Beginning balance (in shares) | 12,721,901 | 12,721,901 | |||||
Beginning balance | $ 63 | $ 18 | |||||
Warrant Issuances (in shares) | 0 | ||||||
Warrant Issuances | $ 0 | ||||||
Fair Value Adjustments | $ (58) | $ 45 | |||||
Exercises of warrants (in shares) | 0 | 0 | |||||
Exercises of warrants | $ 0 | $ 0 | |||||
Ending balance (in shares) | 12,721,901 | 12,721,901 | 12,721,901 | ||||
Ending balance | $ 5 | $ 63 | $ 5 | ||||
Warrants, exercise price (in dollars per share) | $ 40.31 | $ 41.26 | $ 40.31 | $ 40.31 | $ 44.82 | ||
Warrant term | 7 years | 7 years | |||||
Outstanding warrants (in shares) | 12,721,901 | 12,721,901 | 12,721,901 | 12,700,000 | 12,700,000 | ||
[1] | Retroactively restated January 1, 2020 and March 31, 2020 for the reverse recapitalization as described in Note 2 - Summary of Significant Accounting Policies, and the restated reclassification of the Company's 5-Year Private Warrants as described in Note 12 - Warrant Liabilities . |
Warrant Liabilities - Narrative
Warrant Liabilities - Narrative (Details) $ / shares in Units, $ in Thousands | Oct. 06, 2020$ / sharesshares | May 29, 2020$ / sharesshares | May 28, 2020shares | Dec. 31, 2021USD ($)d$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2021$ / sharesshares | Jan. 19, 2021$ / sharesshares | Jul. 01, 2020$ / sharesshares | Dec. 31, 2019shares |
Class of Warrant or Right [Line Items] | |||||||||
Proceeds from Public Offering | $ | $ 0 | $ 83,515 | |||||||
5-Year Private Warrants | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrants issued (in shares) | 2,500,000 | 7,740,000 | |||||||
Number of securities called by warrants (in shares) | 7,740,000 | ||||||||
Transfers to an Unrelated Third Party (in shares) | 409,585 | 351,585 | 761,170 | ||||||
Warrants, exercise price (in dollars per share) | $ / shares | $ 11.50 | $ 11.50 | |||||||
Outstanding warrants (in shares) | 9,478,830 | 9,888,415 | 9,478,830 | 0 | |||||
Warrant term | 5 years | 5 years | |||||||
Seller Warrants | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Number of securities called by warrants (in shares) | 3,569,129 | 3,487,168 | 3,569,129 | 3,569,051 | 3,210,213 | ||||
Warrants, exercise price (in dollars per share) | $ / shares | $ 40.31 | $ 41.26 | $ 40.31 | $ 40.31 | $ 44.82 | ||||
Number of securities called by each warrant (in shares) | 0.28055 | 0.27411 | 0.28055 | 0.28055 | 0.2523 | ||||
Outstanding warrants (in shares) | 12,700,000 | 12,721,901 | 12,721,901 | 12,721,901 | 12,700,000 | 12,721,901 | |||
Warrant term | 7 years | 7 years | |||||||
5-Year Public Warrants | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Number of securities called by warrants (in shares) | 3,249,999 | ||||||||
Transfers to an Unrelated Third Party (in shares) | 409,585 | 351,585 | |||||||
Warrants, exercise price (in dollars per share) | $ / shares | $ 11.50 | $ 11.50 | $ 11.50 | $ 11.50 | |||||
Number of securities called by each warrant (in shares) | 1 | ||||||||
Outstanding warrants (in shares) | 7,740,000 | 24,811,068 | 24,401,483 | 24,811,068 | 20,800,000 | ||||
Units issued (in shares) | 20,800,000 | ||||||||
Number of shares called by each unit | 1 | ||||||||
Number of warrants called by each unit (in shares) | 1 | ||||||||
Warrant term | 5 years | 5 years | 5 years | ||||||
Share price threshold to call warrants (in dollars per share) | $ / shares | $ 18 | $ 18 | |||||||
Warrants, threshold trading days | d | 20 | ||||||||
Warrants, trading day period | d | 30 |
Asset Retirement Obligation (_2
Asset Retirement Obligation ("ARO") (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance, beginning of period | $ 4,785 | $ 4,374 |
Accretion expense | 408 | 374 |
Changes in estimates | 0 | 37 |
Balance, end of period | $ 5,193 | $ 4,785 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands | Oct. 06, 2020USD ($)$ / sharesshares | Dec. 31, 2021USD ($)d$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | May 29, 2020$ / sharesshares | May 28, 2020shares | Dec. 31, 2019shares |
Class of Stock [Line Items] | ||||||
Shares authorized (in shares) | 410,000,000 | |||||
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Preferred stock, shares authorized (in shares) | 10,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||
Common stock, shares issued (in shares) | 60,433,395 | 59,901,306 | 50,160,042 | |||
Common stock, shares outstanding (in shares) | 60,433,395 | 59,901,306 | 50,160,042 | 2,900,000 | ||
Preferred stock, issued (in shares) | 0 | |||||
Preferred stock, outstanding (in shares) | 0 | |||||
Proceeds from Public Offering | $ | $ 0 | $ 83,515 | ||||
5-Year Public Warrants | ||||||
Class of Stock [Line Items] | ||||||
Units issued (in shares) | 20,800,000 | |||||
Number of shares called by each unit | 1 | |||||
Number of warrants called by each unit (in shares) | 1 | |||||
Number of securities called by each warrant (in shares) | 1 | |||||
Warrants, exercise price (in dollars per share) | $ / shares | $ 11.50 | $ 11.50 | $ 11.50 | |||
Warrant term | 5 years | 5 years | ||||
Number of securities called by warrants (in shares) | 3,249,999 | |||||
Transfers from an Unrelated Third Party (in shares) | 409,585 | 351,585 | ||||
Share price threshold to call warrants (in dollars per share) | $ / shares | $ 18 | |||||
Warrants, threshold trading days | d | 20 | |||||
Warrants, trading day period | d | 30 | |||||
Outstanding warrants (in shares) | 24,811,068 | 24,401,483 | 7,740,000 | 20,800,000 | ||
Public Offering Warrants | ||||||
Class of Stock [Line Items] | ||||||
Units issued (in shares) | 9,583,334 | |||||
Number of shares called by each unit | 1 | |||||
Number of warrants called by each unit (in shares) | 1 | |||||
Number of securities called by each warrant (in shares) | 1 | |||||
Warrants, exercise price (in dollars per share) | $ / shares | $ 10.50 | $ 10.50 | ||||
Warrant term | 5 years | 5 years | ||||
Transfers from an Unrelated Third Party (in shares) | 0 | 0 | ||||
Outstanding warrants (in shares) | 9,583,334 | 9,583,334 | 0 | |||
Units issued, offering price (in dollars per share) | $ / shares | $ 9 | |||||
Units issued, related party (in shares) | 5,000,000 | |||||
Proceeds from Public Offering | $ | $ 83,100 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of outstanding warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 19 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Jan. 19, 2021 | Oct. 06, 2020 | Jul. 01, 2020 | May 29, 2020 | ||
Class of Warrant or Right [Roll Forward] | ||||||||
Transfers to an Unrelated Third Party | $ 294 | [1] | $ 581 | |||||
Warrant liabilities | ||||||||
Class of Warrant or Right [Roll Forward] | ||||||||
Beginning balance (in shares) | 22,610,316 | 12,721,901 | ||||||
Beginning balance | $ 15,389 | $ 18 | ||||||
Warrant Issuances (in shares) | 10,240,000 | |||||||
Warrant Issuances | $ 12,185 | |||||||
Exercises of warrants (in shares) | (409,585) | (351,585) | ||||||
Exercises of warrants | $ (294) | $ (581) | ||||||
Ending balance (in shares) | 22,200,731 | 22,610,316 | 22,200,731 | |||||
Ending balance | $ 669 | $ 15,389 | $ 669 | |||||
Outstanding warrants (in shares) | 22,200,731 | 22,610,316 | 22,200,731 | |||||
5-Year Private Warrants | ||||||||
Class of Warrant or Right [Roll Forward] | ||||||||
Beginning balance (in shares) | 9,888,415 | 0 | ||||||
Beginning balance | $ 15,326 | $ 0 | ||||||
Warrant Issuances (in shares) | 10,240,000 | |||||||
Warrant Issuances | $ 12,185 | |||||||
Exercises of warrants (in shares) | (409,585) | (351,585) | ||||||
Exercises of warrants | $ (294) | $ (581) | ||||||
Transfers from an Unrelated Third Party (in shares) | 409,585 | 351,585 | 761,170 | |||||
Ending balance (in shares) | 9,478,830 | 9,888,415 | 9,478,830 | |||||
Ending balance | $ 664 | $ 15,326 | $ 664 | |||||
Warrants, exercise price (in dollars per share) | $ 11.50 | $ 11.50 | ||||||
Warrant term | 5 years | 5 years | ||||||
Outstanding warrants (in shares) | 9,478,830 | 9,888,415 | 9,478,830 | |||||
Seller Warrants | ||||||||
Class of Warrant or Right [Roll Forward] | ||||||||
Beginning balance (in shares) | 12,721,901 | 12,721,901 | ||||||
Beginning balance | $ 63 | $ 18 | ||||||
Warrant Issuances (in shares) | 0 | |||||||
Warrant Issuances | $ 0 | |||||||
Exercises of warrants (in shares) | 0 | 0 | ||||||
Exercises of warrants | $ 0 | $ 0 | ||||||
Ending balance (in shares) | 12,721,901 | 12,721,901 | 12,721,901 | |||||
Ending balance | $ 5 | $ 63 | $ 5 | |||||
Warrants, exercise price (in dollars per share) | $ 40.31 | $ 41.26 | $ 40.31 | $ 40.31 | $ 44.82 | |||
Warrant term | 7 years | 7 years | ||||||
Outstanding warrants (in shares) | 12,721,901 | 12,721,901 | 12,721,901 | 12,700,000 | 12,700,000 | |||
Equity classified warrants | ||||||||
Class of Warrant or Right [Roll Forward] | ||||||||
Beginning balance (in shares) | 33,984,817 | 20,800,000 | ||||||
Beginning balance | $ 41,556 | $ 25,100 | ||||||
Warrant Issuances (in shares) | 0 | 12,833,333 | ||||||
Warrant Issuances | $ 0 | $ 15,876 | ||||||
Exercises of warrants (in shares) | 0 | (101) | ||||||
Exercises of warrants | $ 0 | $ (1) | ||||||
Transfers from an Unrelated Third Party (in shares) | 409,585 | 351,585 | ||||||
Transfers to an Unrelated Third Party | $ 294 | $ 581 | ||||||
Ending balance (in shares) | 33,984,918 | 33,984,817 | 33,984,918 | |||||
Ending balance | $ 41,850 | $ 41,556 | $ 41,850 | |||||
Outstanding warrants (in shares) | 33,984,918 | 33,984,817 | 33,984,918 | |||||
5-Year Public Warrants | ||||||||
Class of Warrant or Right [Roll Forward] | ||||||||
Beginning balance (in shares) | 24,401,483 | 20,800,000 | ||||||
Beginning balance | $ 28,618 | $ 25,100 | ||||||
Warrant Issuances (in shares) | 0 | 3,249,999 | ||||||
Warrant Issuances | $ 0 | $ 2,938 | ||||||
Exercises of warrants (in shares) | 0 | (101) | ||||||
Exercises of warrants | $ 0 | $ (1) | ||||||
Transfers from an Unrelated Third Party (in shares) | 409,585 | 351,585 | ||||||
Transfers to an Unrelated Third Party | $ 294 | $ 581 | ||||||
Ending balance (in shares) | 24,811,068 | 24,401,483 | 24,811,068 | |||||
Ending balance | $ 28,912 | $ 28,618 | $ 28,912 | |||||
Warrants, exercise price (in dollars per share) | $ 11.50 | $ 11.50 | $ 11.50 | $ 11.50 | ||||
Warrant term | 5 years | 5 years | 5 years | |||||
Outstanding warrants (in shares) | 24,811,068 | 24,401,483 | 24,811,068 | 7,740,000 | ||||
Public Offering Warrants | ||||||||
Class of Warrant or Right [Roll Forward] | ||||||||
Beginning balance (in shares) | 9,583,334 | 0 | ||||||
Beginning balance | $ 12,938 | $ 0 | ||||||
Warrant Issuances (in shares) | 0 | 9,583,334 | ||||||
Warrant Issuances | $ 0 | $ 12,938 | ||||||
Exercises of warrants (in shares) | 0 | 0 | ||||||
Exercises of warrants | $ 0 | $ 0 | ||||||
Transfers from an Unrelated Third Party (in shares) | 0 | 0 | ||||||
Transfers to an Unrelated Third Party | $ 0 | $ 0 | ||||||
Ending balance (in shares) | 9,583,334 | 9,583,334 | 9,583,334 | |||||
Ending balance | $ 12,938 | $ 12,938 | $ 12,938 | |||||
Warrants, exercise price (in dollars per share) | $ 10.50 | $ 10.50 | $ 10.50 | |||||
Warrant term | 5 years | 5 years | 5 years | |||||
Outstanding warrants (in shares) | 9,583,334 | 9,583,334 | 9,583,334 | |||||
[1] | Retroactively restated January 1, 2020 and March 31, 2020 for the reverse recapitalization as described in Note 2 - Summary of Significant Accounting Policies, and the restated reclassification of the Company's 5-Year Private Warrants as described in Note 12 - Warrant Liabilities . |
Revenues - Disaggregation of re
Revenues - Disaggregation of revenue (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)oz | Dec. 31, 2020USD ($)oz | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 110,734 | $ 47,044 |
Gold sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 100,532 | $ 44,279 |
Volume of Sales | oz | 56,045 | 24,892 |
Silver sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 10,202 | $ 2,765 |
Volume of Sales | oz | 397,546 | 136,238 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - Customer concentration risk - Revenue | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Customer A | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk | 90.40% | 88.60% |
Customer B | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk | 9.60% | 11.40% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | May 29, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share price (in dollars per share) | $ 0.61 | ||
Liability based restricted stock units transferred to equity | $ 0.8 | $ 1.8 | |
Performance and incentive pay plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of issued and outstanding shares of common stock | 5.00% | ||
Number of shares available for grant (in shares) | 0 | 2,508,002 | |
Performance and incentive pay plan | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value, vested | $ 1.3 | 2 | |
Stock based compensation expense | (2.3) | $ 2.4 | |
Unrecognized compensation cost | $ 3.8 | ||
Unrecognized compensation cost, period for recognition | 2 years 3 months 7 days | ||
Performance and incentive pay plan | Restricted stock units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 2 years | ||
Performance and incentive pay plan | Restricted stock units | Minimum | Nonemployee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 2 years | ||
Performance and incentive pay plan | Restricted stock units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Performance and incentive pay plan | Restricted stock units | Maximum | Nonemployee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Performance and incentive pay plan | Performance shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of non-vested share awards (Details) - Performance and incentive pay plan - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Units | ||
Unvested at beginning of year (in shares) | 545,696 | 339,271 |
Granted (in shares) | 1,171,869 | 517,234 |
Impact of fluctuations in price of common stock (in shares) | 1,632,136 | |
Canceled/forfeited (in shares) | (762,822) | (131,724) |
Vested (in shares) | (375,968) | (179,085) |
Unvested at end of year (in shares) | 2,210,911 | 545,696 |
Weighted Average Grant Date Fair Value | ||
Unvested at beginning of year (in dollars per share) | $ 8.12 | $ 10.96 |
Granted (in dollars per share) | 5.08 | 8.11 |
Impact of fluctuations in price of common stock (in dollars per share) | 0.61 | |
Canceled/forfeited (in dollars per share) | 3.42 | 11.32 |
Vested (in dollars per share) | 4.06 | 11.05 |
Unvested at end of year (in dollars per share) | $ 2.82 | $ 8.12 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Income tax expense (benefit) | $ (1,530,000) | $ 0 |
Increase (decrease) in valuation allowance | 14,495,000 | (146,794,000) |
Recapitalization transaction | 0 | 157,855,000 |
Cancellation of debt income | 0 | 15,360,000 |
Valuation allowance | 124,219,000 | 109,724,000 |
Net operating loss carryovers | $ 144,500,000 | 36,600,000 |
Colorado department of revenue | State | ||
Operating Loss Carryforwards [Line Items] | ||
Income tax expense (benefit) | $ 0 |
Income Taxes - Components of in
Income Taxes - Components of income tax expense (benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current | ||
Federal | $ (1,530) | $ 0 |
Deferred | ||
Federal | (14,495) | 146,794 |
Change in Valuation Allowance | 14,495 | (146,794) |
Income Tax Benefit | $ (1,530) | $ 0 |
Income Taxes - Schedule of effe
Income Taxes - Schedule of effective income tax rate reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Loss before income taxes | $ (90,094) | $ (136,392) |
United States statutory income tax rate | 21.00% | 21.00% |
Income tax (benefit) at United States statutory income tax rate | $ (18,920) | $ (28,642) |
Change in valuation allowance | 14,495 | (146,794) |
Recapitalization transaction | 0 | 157,855 |
Cancellation of debt income | 0 | 15,360 |
State tax provision, net of federal benefit | 0 | 1,263 |
Warrant liability fair value adjustment | 3,030 | 790 |
Other | (135) | 168 |
Income Tax Benefit | $ (1,530) | $ 0 |
Income Taxes - Components of de
Income Taxes - Components of deferred tax assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Net operating loss | $ 30,355 | $ 7,675 |
Mineral properties | 39,371 | 39,555 |
Plant, equipment, and mine development | 25,506 | 30,767 |
Intangible assets | 20,204 | 21,710 |
Royalty | 6,266 | 6,292 |
Interest expense carryforward | 0 | 1,935 |
Asset retirement obligation | 1,083 | 997 |
Stock-based compensation | 856 | 405 |
Accrued compensation | 502 | 197 |
Inventories | 76 | 191 |
Reorganization costs | 0 | 0 |
Other liabilities | 0 | 0 |
Credits and other | 0 | 0 |
Valuation allowance | (124,219) | (109,724) |
Total net deferred tax assets | $ 0 | $ 0 |
Loss Per Share - Schedule of ba
Loss Per Share - Schedule of basic and diluted loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (88,564) | $ (136,392) |
Weighted average shares outstanding | ||
Basic (in shares) | 60,101,499 | 34,833,211 |
Diluted (in shares) | 60,101,499 | 34,833,211 |
Basic loss per common share (in dollars per share) | $ (1.47) | $ (3.92) |
Diluted loss per common share (in dollars per share) | $ (1.47) | $ (3.92) |
Loss Per Share - Schedule of an
Loss Per Share - Schedule of antidilutive securities excluded from computation (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation (in shares) | 49,653 | 37,649 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation (in shares) | 37,500 | |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation (in shares) | 2,211 | 149 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 110,734 | $ 47,044 |
Cost of sales | 163,338 | 109,621 |
Other operating costs | 31,307 | 26,789 |
Loss from operations | (83,911) | (89,366) |
Interest expense, net of capitalized interest | (20,593) | (43,458) |
Fair value adjustment to warrants | 14,426 | (3,767) |
Loss on sale of equipment | (16) | 0 |
Interest income | 0 | 199 |
Loss before income taxes | (90,094) | (136,392) |
Income tax benefit - Note 17 | 1,530 | 0 |
Net loss | (88,564) | (136,392) |
Total Assets | 142,324 | 232,626 |
Hycroft Mine | ||
Segment Reporting Information [Line Items] | ||
Revenues | 110,734 | 47,044 |
Cost of sales | 163,338 | 109,621 |
Other operating costs | 16,688 | 5,705 |
Loss from operations | (69,292) | (68,282) |
Interest expense, net of capitalized interest | 0 | (141) |
Fair value adjustment to warrants | 0 | 0 |
Loss on sale of equipment | (16) | |
Interest income | 199 | |
Loss before income taxes | (69,308) | |
Income tax benefit - Note 17 | 0 | |
Net loss | (69,308) | (68,224) |
Total Assets | 138,971 | 177,298 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Cost of sales | 0 | 0 |
Other operating costs | 14,619 | 21,084 |
Loss from operations | (14,619) | (21,084) |
Interest expense, net of capitalized interest | (20,593) | (43,317) |
Fair value adjustment to warrants | 14,426 | (3,767) |
Loss on sale of equipment | 0 | |
Interest income | 0 | |
Loss before income taxes | (20,786) | |
Income tax benefit - Note 17 | 1,530 | |
Net loss | (19,256) | (68,168) |
Total Assets | $ 3,353 | $ 55,328 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of fair value on recurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Warrant liabilities | ||
Warrant liabilities, non-current | $ 669 | $ 15,389 |
Recurring | ||
Warrant liabilities | ||
Total | 669,000 | 15,389 |
Recurring | Level 2 | 5-Year Private Warrants | ||
Warrant liabilities | ||
Warrant liabilities, non-current | 664,000 | 15,327 |
Recurring | Level 2 | Seller Warrants | ||
Warrant liabilities | ||
Warrant liabilities, non-current | $ 5,000 | $ 62 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Jul. 01, 2020 | May 29, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt, fair value | $ 162,800 | $ 154,900 | |||
Debt, carrying value | $ 160,304 | $ 147,800 | |||
5-Year Private Warrants | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Warrants term | 5 years | ||||
Outstanding warrants (in shares) | 9,478,830 | 9,888,415 | 0 | ||
Seller Warrants | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Outstanding warrants (in shares) | 12,721,901 | 12,721,901 | 12,700,000 | 12,700,000 | 12,721,901 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Cash interest paid | $ 3,732 | $ 5,366 |
Significant non-cash financing and investing activities: | ||
Write-off of Seller's debt issuance costs | 0 | 8,202 |
Increase in debt from in-kind interest | 11,425 | 0 |
Plant, equipment, and mine development additions included in Accounts payable and accrued liabilities | 538 | 1,229 |
Accrual of deferred financing and equity issuance costs | 0 | 94 |
Liability based restricted stock units transferred to equity | 765 | 0 |
Exchange of Seller's 1.5 Lien Notes for HYMC common stock | ||
Significant non-cash financing and investing activities: | ||
Exchange of Seller's Lien Notes | 0 | 160,254 |
Exchange of Seller's 1.25 Lien Notes for Subordinated Notes | ||
Significant non-cash financing and investing activities: | ||
Exchange of Seller's Lien Notes | 0 | 80,000 |
Exchange of Seller's 1.25 Lien Notes for HYMC common stock | ||
Significant non-cash financing and investing activities: | ||
Exchange of Seller's Lien Notes | $ 0 | $ 48,459 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Matching contribution cost | $ 1.1 | $ 0.9 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands, T in Millions | May 29, 2020USD ($) | Dec. 31, 2021USD ($)T | Dec. 31, 2020USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Royalty payment, percentage of net profit | 4.00% | ||
Royalty payment, annual advance | $ 120 | ||
Royalty payment, additional incremental payment | $ 120 | ||
Royalty payment, annual tons mined threshold | T | 5 | ||
Royalty payment, maximum lease payments | $ 7,600 | ||
Payments to acquire royalty interests in mining properties | 3,000 | ||
Proceeds from sale of royalty to Sprott | $ 30,000 | $ 0 | $ 30,000 |
Smelter royalty obligation, percentage | 1.50% | ||
Royalty obligation, metal price discount rate | 5.00% | ||
Royalty obligation | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Royalty obligation, fair value | $ 154,000 | $ 148,400 | |
Other assets, noncurrent | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Payments to acquire royalty interests in mining properties | $ 600 |
Related Party Transactions (Det
Related Party Transactions (Details) | Oct. 06, 2020shares | Dec. 31, 2021USD ($)financial_Institution | Dec. 31, 2020USD ($) |
Related Party Transaction [Line Items] | |||
Number of financial institutions, debt issued | financial_Institution | 5 | ||
Number of financial institutions, considered related party | financial_Institution | 2 | ||
Minimum percentage of common stock held by related party, right to nominate one director | 10.00% | ||
Interest expense, related party | $ 6,000,000 | $ 31,300,000 | |
Due to related parties | 63,800,000 | $ 71,200,000 | |
Warrants | Highbridge | |||
Related Party Transaction [Line Items] | |||
Units issued (in shares) | shares | 833,333 | ||
Warrants | MUDS | |||
Related Party Transaction [Line Items] | |||
Units issued (in shares) | shares | 3,222,222 | ||
Subordinated notes | |||
Related Party Transaction [Line Items] | |||
Stated amount of borrowing | 80,000,000 | ||
Ausenco engineering USA south | Acid POX milling technical study | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | 1,200,000 | ||
Ausenco engineering USA south | Acid POX milling technical study | Accounts Payable and Accrued Expenses | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 300,000 |
Subsequent Events (Details)
Subsequent Events (Details) | Mar. 30, 2022USD ($) | Mar. 16, 2022USD ($) | Mar. 15, 2022USD ($)$ / sharesshares | Mar. 15, 2022USD ($)$ / shares | Mar. 14, 2022USD ($)investor$ / sharesshares | May 29, 2020USD ($)$ / sharesshares | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)$ / shares | Apr. 30, 2022USD ($) | Mar. 11, 2022USD ($) | Feb. 28, 2022USD ($) | Nov. 09, 2021USD ($) | Nov. 08, 2021USD ($) |
Subsequent Event [Line Items] | ||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||
Subsequent event | Common Stock | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Proceeds from issuance of equity | $ 138,600,000 | $ 194,400,000 | ||||||||||||
Number of shares issued (in shares) | shares | 89,553,602 | |||||||||||||
Private placement | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Gross proceeds received | $ 76,000,000 | $ 0 | $ 75,963,000 | |||||||||||
Number of shares issued (in shares) | shares | 7,600,000 | |||||||||||||
Offering price (in dollars per share) | $ / shares | $ 10 | |||||||||||||
Private placement | Subsequent event | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Proceeds from issuance of equity | $ 50,000,000 | |||||||||||||
Gross proceeds received | $ 55,900,000 | |||||||||||||
Number of private investors | investor | 2 | |||||||||||||
Number of shares issued (in shares) | shares | 46,816,480 | |||||||||||||
Offering price (in dollars per share) | $ / shares | $ 1.193 | |||||||||||||
Number of shares called by each unit | shares | 1 | |||||||||||||
Warrant term | 5 years | |||||||||||||
Private placement | Subsequent event | Public Offering Warrants | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Number of warrants called by each unit (in shares) | shares | 1 | |||||||||||||
Warrants, exercise price (in dollars per share) | $ / shares | $ 1.068 | |||||||||||||
At-The-Market Offering | Subsequent event | Class A common stock | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||||
Gross sales price (up to) | $ 500,000,000 | $ 500,000,000 | ||||||||||||
Sprott credit agreement, noncurrent portion | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Stated interest rate | 7.00% | 8.50% | ||||||||||||
Sprott credit agreement, noncurrent portion | Credit facility | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Minimum unrestricted cash | $ 9,000,000 | $ 10,000,000 | ||||||||||||
Sprott credit agreement, noncurrent portion | Credit facility | Subsequent event | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Minimum unrestricted cash | $ 9,000,000 | $ 9,000,000 | $ 7,500,000 | |||||||||||
Additional payment due to the Lender | $ 3,300,000 | |||||||||||||
Extended maturity period | 2 years | |||||||||||||
Principal prepayment | $ 10,000,000 | |||||||||||||
Cap, in aggregate, of principal repaid | $ 13,900,000 | |||||||||||||
Long term debt, percentage of prepay principal | 10.00% | |||||||||||||
Prepayment proceeds from sale of assets (up to) | $ 23,900,000 | |||||||||||||
Debt instrument, unrestricted cash | 15,000,000 | |||||||||||||
Payment of deferred additional interest | 500,000 | |||||||||||||
Principal prepaid | 13,900,000 | $ 10,000,000 | ||||||||||||
Fee paid-in-kind | $ 3,300,000 | |||||||||||||
Estimate of outstanding principal balance | 57,900,000 | |||||||||||||
Issuance discounts and the outstanding additional interest | $ 7,100,000 | |||||||||||||
10% Senior Secured Notes | Notes payable | Subsequent event | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Stated interest rate | 10.00% |