Hycroft Mining Slides From Record Highs: What's Going On?

Hycroft Mining Holding Corporation (NASDAQ:HYMC) shares are trading lower Wednesday morning, retreating from a rally that saw the stock hit a new 52-week high on Tuesday. The volatility follows a collision of record-breaking commodity tailwinds and a major divestiture by high-profile backer AMC Entertainment Holdings Inc (NYSE:AMC).

• Hycroft Mining Holding stock is taking a hit today. Why are HYMC shares down?

What To Know: Tuesday's surge was driven by macro events, primarily gold prices hitting a historic $4,500 per ounce. This valuation shift fundamentally de-risks Hycroft's capital-intensive transition to sulfide ore processing, turning previously marginal ounces into profitable reserves.

Investor enthusiasm was further stoked by the discovery of the company’s highest-grade silver intercepts to date in the Vortex system, including 26.4 meters at 565.31 g/t Ag, powering a staggering year-to-date gain of over 1,000%.

Adding to recent volatility, AMC earlier in December announced it has sold the majority of its equity investment to Sprott Mining. The deal, valued at a net consideration of $24.1 million, allowed the theater chain to book an approximate $7.9 million accounting profit.

AMC CEO Adam Aron stated the move allows the company to “smartly monetize” its 2022 investment to redeploy capital into its core exhibition business. While AMC retains a symbolic position, including 1 million warrants and 64,000 shares, the exit of such a significant shareholder appears to have triggered to December’s volatility.

Benzinga Edge Rankings: Benzinga Edge rankings underscore the stock’s extreme recent velocity, assigning it a Momentum score of 99.86 alongside positive price trends across short, medium, and long-term horizons.

HYMC Price Action: Hycroft Mining Holding shares were down 8.36% at $24.87 at the time of publication on Wednesday, according to Benzinga Pro data.

Support levels appear to be forming around the $24 mark, which coincides with the recent low of $24.03. If the stock can maintain above this level, it may provide a foundation for a rebound, while a break below could signal further downside risk.

Resistance is evident near the $26.50 level, where the stock encountered selling pressure during the trading session. A sustained move above this resistance could reinvigorate bullish sentiment and attract additional buying interest.

Read Also: Deutsche Bank Flags Massive AI Spending ‘With No Guaranteed Return’ As Key Reason Behind Strong GDP Data

Image: Shutterstock