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Hycroft Mining (HYMC) Stock Has Fallen 55% Since March. What’s Next?

Simon Mugo trader
Updated 22 Jun 2022

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Key points:

  • Hycroft Mining (HYMC) stock has fallen 55% from its March highs.
  • The miner is currently conducting exploration activities at its sites.
  • Should you buy HYMC stock at current prices. Read on to find out.

The Hycroft Mining Holding Corporation (NASDAQ: HYMC) stock price has fallen 55% from its March 29, 2022, high of $3.10 to its current price as investors took profits on their winning positions following the parabolic rally that started on March 8, 2022.

The company received a massive $56 million equity investment from Eric Sprott, a renowned precious metals investor, and AMC Entertainment triggered the massive parabolic rally. In addition, the mining firm completed a $138.6 million capital raise through an at-the-market equity offering later in March.

Also read: The Five Best Gold And Gold Mining Stocks To Buy Now.

Hycroft Mining later released its Q1 operating update and financial results, highlighting the significant impact of AMC Entertainment’s and Eric Sprott’s investments on its financial position. The miner was able to repay some of its debts and invest in its exploration drilling programmes.

The miner has explained that the silver resources in its license areas might be more than initially estimated, given the lack of accurate data. However, investors should remember that Hycroft Mining is a revenue-generating company, producing 5,358 ounces of gold and 16,861 ounces of silver in the three months to March 31, 2022.

The company plans to build a processing facility at its mining sites to eliminate the transportation costs of shipping its minerals to other facilities for final processing before sale. The funding from AMC Entertainment and Eric Sprott should help the company achieve this significant milestone.

At the moment, investors are waiting for news from Hycroft Mining of any progress made during its drilling campaigns or in building the much-needed processing facility. Until we hear from the company, HYMC stock will continue trading sideways.

After a decent pullback from its March highs, HYMC stock has been trading sideways since mid-May. The lack of positive or negative catalysts can be attributed to the range-bound trading pattern. As a result, investors looking to acquire HYMC stock may find its current prices attractive. However, there are no guarantees that they won’t fall further.

*This is not investment advice. Always do your due diligence before making investment decisions.

Hycroft Mining (HYCM) stock price.

Hycroft Mining stock price 22-06-2022
Source: Tradingview

The Hycroft Mining (HYCM) stock price has fallen 55.8% from its March high of $3.10 to its current price of $1.37 but is still up 114.7% in 2022.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading