But the company reportedly still hasn’t done a feasibility study to determine the method it plans to us to process ore will even work or if it is economically feasible.īut the company did mine $31.7 million of gold and silver in the third quarter of 2021. Hycroft shut down operations at its sole mine last fall in order to build a mill to process gold and silver sulfide ore. While Hycroft is sitting on proven gold and silver reserves, it’s not currently pulling metal out of the ground. We are confident that our involvement can greatly help it to surmount its challenges - to its benefit, and to ours.” Its share price has been knocked low as a result. It, too, has rock-solid assets, but for a variety of reasons, it has been facing a severe and immediate liquidity issue. Our strategic investment being announced today is the result of our having identified a company in an unrelated industry that appears to be just like AMC of a year ago. To state the obvious, one would not normally think that a movie theatre company’s core competency includes gold or silver mining.”īut Aron said the company’s success navigating liquidity problems gives it plenty of experience it can bring to Hycroft. But is it?ĪMC CEO Adam Aron conceded that the investment was outside the box. Most analysts seem to view this as a dumb move. And a lot of people would just as soon watch movies at home. There are fewer movies in the pipeline and that likely means lower theater attendance. The movie business isn’t exactly booming post-pandemic. The success of its stock notwithstanding, AMC still faces significant problems. As a result, AMC saw an infusion of money and is now sitting on $1.8 billion in cash. It was similar to the way they drove up the price of silver in February 2021. Daytraders on the subreddit WallStreetBets took on short-sellers and drove the stock higher. Metals investor Eric Sprott will put in another $27.9 million, bringing the total investment in the small mining company to $56 million.Īs you may recall, AMC was one of the original “meme stocks.” The company was floundering during coronavirus lockdowns when Reddit came to the rescue. The mine has an estimated 15 million ounces of gold deposits and some 600 million ounces of silver deposits. The movie theater company invested $27.9 million to purchase 22% of Hycroft Mining Holding Corporation and its 71,000-acre Hycroft Mine in northern Nevada. Buying Gold & Silver with CryptocurrencyĪMC Theaters bought a gold mine last week.Buy Gold the Ultimate Monetary Insurance Policy.
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