Inventories and Ore on Leach Pads

12 Months Ended

Dec. 31, 2022

The following table provides the components of Inventories and the estimated recoverable gold ounces therein (dollars in thousands):


	Year Ended December 31,
	2022			2021
	Amount		Gold Ounces	Amount		Gold Ounces
Inventories:
Materials and supplies	$	2,808	—	$	4,376	—
Merrill-Crowe process plant	—		—	11		6
Carbon-in-column (on-site)	—		—	3,493		2,044
Finished goods (doré and off-site carbon)	—		—	3,189		1,799
Total	$	2,808	—	$	11,069	3,849

As of December 31, 2021, in-process inventories and finished goods inventories included $0.4 million of capitalized depreciation and amortization costs.

The following table summarizes Ore on leach pads and the estimated recoverable gold ounces therein (dollars in thousands):


	Year Ended December 31,
	2022			2021
	Amount		Gold Ounces	Amount		Gold Ounces
Ore on leach pads	$	—	—	$	10,106	7,130

During the year ended December 31, 2022, the Company completed processing of gold and silver ore previously placed on leach pads prior to ceasing mining operations in November 2021. As of December 31, 2021, Ore on leach pads included $0.6 million of capitalized depreciation and amortization costs.

Write-down of materials and supplies inventories

The Company recognized a Write-down of materials and supplies inventories on the Consolidated Statement of Operations of $1.1 million for the year ended December 31, 2022 for obsolete and slow moving materials and supplies inventories.

The Company recognized a Write-down of materials and supplies inventories on the Consolidated Statements of Operations of $8.0 million for the year ended December 31, 2021 related to the following:

•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.

Write-down of ore on leach pads

During the year ended December 31, 2021, the Company recognized a write-down of the non-current portion of Ore on leach pads of $5.9 million that included $5.5 million 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 did not include mineral reserves, it was determined that the recoverability of these ounces was 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.