Hycroft-Mining: AMC Entertainment buys 22 percent of a gold and silver mine in Nevada

AMC and Eric Sprott are investing approximately $59 million in Hycroft Mining, each acquiring a 22 percent interest

In addition to the 22 percent interest, AMC has purchased 23.4 million Hycroft warrants

With the investment, AMC wants to generate greater profits for its shareholders – there is not only praise for this strategy

Hycroft Mining Holding Corporation is a US company that operates a gold and silver mine in Nevada. Due to financial problems, Hycroft was not able to fully exploit its possibilities in 2021. To change that, on March 15, AMC Entertainment bought 22 percent of Hycroft stock. AMC expects big profits from this. The cinema group, which owns almost 1,000 cinemas internationally, announced this via Twitter and a press release.

Q4 2021 was AMC’s strongest quarter since the pandemic began

In cooperation with AMC, investor Eric Sprott also bought Hycroft shares: According to the AMC press release, both parties have invested exactly 27.9 million US dollars in Hycroft shares. AMC also purchased 23.4 million Hycroft warrants for $1.07 each.

With the theatrical events of the new Spiderman and Batman releases in 2021, the value of AMC shares rose by 1,183 percent last year, according to Bloomberg. In a press release on the financial results for the fourth quarter (Q4) 2021, AMC noted liquidity of $1.8 billion: it was the most successful quarter since the beginning of the corona pandemic. Now they want to switch back to a more offensive corporate strategy.

AMC CEO sees promising parallel between AMC and Hycroft financials

AMC is also hoping for similar successes from the Hycroft investment. A year ago, AMC’s financials would have been similar to the mine operator’s current figures: “[Hycroft] also has rock solid assets, but for various reasons it faced serious and immediate liquidity problems. We are confident that our intervention will greatly assist in overcoming the challenges – to his benefit and ours,” said AMC CEO Adam Aron in the mid-March press release. “Our investment [] is a really great opportunity to potentially strengthen and enrich our group and thus also achieve significant increases in value for our shareholders.”

This is not only well received by the public: on Twitter, for example, AMC is criticized for not putting all of its energy into the film business.

HYCM is a classic pump and dump. I was into penny stocks for a while and HYCM was a common pump and dump specially in r/penny stocks. Adam is in bed with hegies 100%

– Professor (@shortdestroyer) March 15, 2022

AMC CEO urges investors to invest boldly

In the AMC press release on the Hycroft investment, Aron is quoted as saying to investors: “As I do [] I’ve said repeatedly, investors should be creative and bold about AMC’s future because we ourselves have been thinking creatively and boldly about our future within the company.”

Olga Rogler / Editor finanzen.net

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