WHAT IS HYCROFT MINING HOLDING CORPORATION?
Hycroft mining has been a hot topic for retail investors. What exactly is Hycroft Mining? Hycroft is a U.S based company that is engaged in gold and silver production and development. Hycroft Mining Holding Corporation owns the Hycroft Mine in the prolific mining region of Northern Nevada.
In the last five days Hycroft Mining (HYMC) is up 83%, and at the time of writing the stock price is hovering around $2.35. The mining company has seen progressive gains since movie chain theater company AMC announced it purchased a large stake in the mining company just a few weeks ago. CEO of AMC Entertainment Adam Aron, who has been notoriously determined to bring the movie chain back to life says their decision to make the move with Hycroft was in part because Hycroft is in a similar position that AMC was a year ago. Aron states,
“In Hycroft, we found a company that was exactly like AMC a year ago. It had great assets, in this case silver and gold in the ground, millions of ounces, but it had a cash squeeze, it had a liquidity problem.” While AMC was near bankrupt just a few years ago, they’ve made outstanding improvement and have now put the company in a position where they have enough capital to play offense and make moves to further expand the company.
Aron is eager to take part in reviving Hycroft similarly to how he has been reviving AMC theaters. The CEO emphasizes the importance of the retail investor community. The community in large has had a very positive response to AMC’s investment in Hycroft. Adam Aron says,
“I am amazed now that others have not followed in our footsteps. It’s so important to talk to your shareholders, to talk to investors, to listen to your shareholders, to listen to investors. I do think this is the wave of the future.”
HYCROFT COMPLETES $138.6 MILLION ATM PROGRAM
Hycroft is making headlines since March 15th when the announced a $55.9 million equity private placement with Eric Sprott and AMC Entertainment. Following private equity placement Hycroft has completed its “At-the-Market” equity offering program (ATM Program) where they sold 89,553,584 shares and generated about $138.6 million. Diane Garrett, the CEO of Hycroft said they are extremely pleased with the outcome of the ATM Program. Garrett adds,
“Thanks to the significant and timely equity private placement announced March 15, 2022, with Eric Sprott and AMC Entertainment Inc., combined with the ATM equity program completed today, our financial position is significantly strengthened allowing us to reduce our debt and extend repayment to 2027. Raising gross cash proceeds of $194.4 million changes the dynamics of the Company, expanding our ability to properly and diligently develop the Hycroft Mine, including a robust exploration program, and to further unlock the value of this world-class asset. We welcome our new shareholders to the Company and look forward to updating you with ongoing developments.”
The impressive news from Hycroft has retail investors excited and optimistic about both AMC and Hycroft. Hycroft has seen extremely high trading volume with more than $168 million stocks being exchanged. The normal average daily trading volume for Hycroft (HYMC) is about 28.9 million shares.