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Commitments and contingencies
9 Months Ended
Sep. 30, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies Commitments and contingencies
Legal proceedings
Assad v. Sprott, et al.

On September 23, 2026, George Assad, a purported stockholder of Hycroft Mining Holding Corporation (the “Company”), filed a verified stockholder class action and derivative complaint in the Court of Chancery of the State of Delaware (“Delaware Chancery Court”), captioned Assad v. Sprott, et al., C.A. No. 2026-1226-KSJM. The complaint names as defendants Eric Sprott, certain entities affiliated or alleged to be affiliated with Mr. Sprott, certain current and former directors of the Company, and certain executive officers of the Company. The Company is named as a nominal defendant.

The complaint makes allegations, among other things, regarding Mr. Sprott’s acquisition of a control position in the Company through his participation in certain equity financings completed by the Company during 2025. Based on these allegations, the complaint asserts direct claims under Delaware law against certain current and former directors and officers of the Company, as well as derivative claims on behalf of the Company against Mr. Sprott, certain of his affiliates and certain directors, relating to the financings, certain bylaw amendments and equity awards granted in 2025. The complaint seeks, among other relief, rescission of, or rescissory damages with respect to, certain shares and warrants issued to Mr. Sprott and his affiliates and certain equity awards, disgorgement, compensatory damages, invalidation of the bylaw amendment, and related declaratory and injunctive relief.

The Company intends to vigorously defend itself in this matter; however, the Company cannot predict the outcome or impact. The litigation is at an early stage and, as a result, the Company is unable to reasonably estimate the possible loss or range of loss, if any, associated with this matter.

Warrantholder Action

As previously disclosed, the Company has been named as a defendant in three pro se individual and/or putative class/derivative actions in the Delaware Chancery Court that assert claims for, inter alia, breach of contract, declaratory judgment, equitable fraud and fiduciary breaches (against two company officers) arising from or relating to Warrants and/or shares purportedly held by the plaintiffs. In various forms, they allege that the Company or its predecessor entities breached the Warrant Agreement, dated October 22, 2015, and/or related Amendment Agreement, dated February 26, 2020. Among other things, the plaintiffs allege, by or on behalf of Warrant holders, that the Company or its predecessor(s) breached these agreements by failing to make proper “Mechanical Adjustments” to the Warrants upon the occurrence of certain business transactions and events, including the Recapitalization Transaction. During the quarter ended September 30, 2026, the Company filed responsive briefs to its previously filed motions to dismiss in these actions. The motions to dismiss are pending as of the date of this Quarterly Report on Form 10-Q.

The Company expenses legal fees and other costs associated with legal proceedings as incurred. The Company assessed, in conjunction with its legal counsel, and determined that a loss was not probable. Litigation accruals are recorded when, and if, it is determined that a loss related matter is both probable and reasonably estimable. Material loss contingencies that are reasonably possible of occurrence, if any, are subject to disclosure. No losses have been recorded during the three and nine months ended September 30, 2026 and 2025, with respect to litigation or loss contingencies.
Insurance
The Company maintains insurance coverage for various operational, management, and business risks. 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.
Sprott Royalty
Pursuant to the Royalty Agreement with Sprott Private Resource Lending II (CO) Inc., 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 the Hycroft Mine, payable monthly (“Sprott Royalty Agreement”). The royalty is accounted for as a deferred gain liability. 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. Future royalty payments are contingent upon future production, commodity prices, and certain refining costs.