Hycroft Mining Holding Corporation (NASDAQ:HYMC) jumped 15% after the company announced its Q2 2021 operating and financial results. During the quarter, the company produced 16,776 gold ounces and 139,351 silver ounces, reflecting a 212% and 338% YoY increased in produced ounces.
Q2 sales were 189,766 silver ounces at average realized prices of $26.88 for each ounce and 17,060 gold ounces at a realized price of $1,811 per ounce. The sales contributed to a $28.4 million revenue increase compared to a year ago. In addition, the company ended the quarter with decreased restricted cash of $4.8 million after it replaced the majority of its surety bonds with those requiring low cash collateral.
In Q2, Hycroft continued to run at a pre-commercial scale through the ROM strategy with direct leaching and related low sales volumes leading to a net loss. However, CEO Diane Garret said that the company is advancing the required metallurgical test work to establish the ideal sulfide ores process and analyzing the processing alternatives that offer the best economic value. So, in the coming weeks, investors should watch HYCM.
Market Reaction:
On Friday, HYMC stock surged 14.62% at $1.96 with more than 640K shares, compared to its average volume of 235K shares. The stock has moved within a range of $1.7100 – 2.0700 after opening the trade at $1.71.
