$HYMC Quarterly Report Gap Up
Hycroft Mining Holding Corporation (NASDAQ: HYMC) is a gold and silver mining company with major assets in the Hycroft Mine. After releasing impressive operational results in Q1, HYMC stock has been gaining momentum and rocketed as much as 37%. Considering AMC’s recent investment in the company, HYMC stock has been gaining a following on Reddit as an emerging meme stock. With this in mind, many investors continue holding HYMC stock anticipating a sympathy run with AMC stock.
Fundamental Analysis
Following the release of the company’s Q1 operational and financial results, HYMC stock has been trending among Reddit and FinTwit investors due to the encouraging results reported by the company. Delivering on its promises to continue exploring the Hycroft Mine, HYMC measured and indicated 9.6 million ounces of gold and 446 million ounces of silver. Moreover, HYMC has inferred mineral resources including 5 million ounces of gold, in addition to 150.4 million ounces of silver contained in oxide, transitional and sulfide ores. Given that extracting reserves contained in such ores could be expensive, HYMC is in a prime position to utilize the funds received from Eric Sprott and AMC’s investments in the company. Based on these results, HYMC stock surged and momentarily reached $1.90.
At the same time, HYMC found a number of high-grade intercepts at its sites in the Hycroft Mine – including the high grade silver Vortex deposit. Given the potential of these findings, HYMC is exploring targets for a drilling program to capitalize on these high grade intercepts. Considering that metal prices are rising due to the current inflationary environment, these high grade intercepts combined with HYMC’s gold and silver reserves could be major revenue streams for HYMC in 2022.
HYMC Financials
While the potential of HYMC stock is undeniable, the company’s Q1 financials were underwhelming to many investors. With $9.1 million in revenues, HYMC had a 52% decline from the year-ago-period. This led to $22 million in net losses despite the company reducing its operating costs to $12 million compared to $14.7 million in Q1 2021.
Meanwhile, HYMC reported $172.7 million cash on hand mainly due to AMC’s investment in the company last March. As a result, HYMC could ramp up its plans for extraction and exploration at the Hycroft Mine. Considering the promising results of the company’s operations, HYMC could be set to grow its revenues in the coming quarters.
Technical Analysis
Currently trading at $1.61, HYMC stock shows a support at 1.26, a resistance at 1.67 and a secondary resistance at 1.97. HYMC stock gapped up on its earnings report, which means the stock could gap down from 1.42 to 1.57 later on. The stock’s accumulation has shown a downtick with profit-taking. Meanwhile, the RSI has dropped to 61 after earlier overbuying and the MACD is bullish.
While investors are enthusiastic after HYMC stock reported its quarterly finances, the run may be short lived. Although the RSI has regulated enough for a second run, the downtick in accumulation could be a sign that momentum is dying out. Currently testing its resistance at 1.67, if its able to maintain higher than average volume the stock could break through this resistance and approach the second. Volume was 87 million – roughly 37% higher than average on May 5th.
HYMC has an OS of 197 million and a low float of 173.1 million.
HYMC Stock Forecast
Considering that investors are estimating that the company’s current gold and silver reserves could be worth billions at current market value, HYMC stock may see a second surge base on these results. Given its market cap of $275.8 million, cash on hand following AMC’s investment, and plans to ramp up production, HYMC stock could be a profitable investment for not only AMC but investors bullish on the mining company’s potential. While HYMC missed EPS expectations with an additional 23 cent loss per share this quarter, it is now in a place to turn things around and realize more revenues in the coming quarters. With gold prices typically seen as a hedge against inflation, HYMC could be set for revenue growth this year if it is able to capitalize on its reserves.
Fundamental Analysis
Following the release of the company’s Q1 operational and financial results, HYMC stock has been trending among Reddit and FinTwit investors due to the encouraging results reported by the company. Delivering on its promises to continue exploring the Hycroft Mine, HYMC measured and indicated 9.6 million ounces of gold and 446 million ounces of silver. Moreover, HYMC has inferred mineral resources including 5 million ounces of gold, in addition to 150.4 million ounces of silver contained in oxide, transitional and sulfide ores. Given that extracting reserves contained in such ores could be expensive, HYMC is in a prime position to utilize the funds received from Eric Sprott and AMC’s investments in the company. Based on these results, HYMC stock surged and momentarily reached $1.90.
At the same time, HYMC found a number of high-grade intercepts at its sites in the Hycroft Mine – including the high grade silver Vortex deposit. Given the potential of these findings, HYMC is exploring targets for a drilling program to capitalize on these high grade intercepts. Considering that metal prices are rising due to the current inflationary environment, these high grade intercepts combined with HYMC’s gold and silver reserves could be major revenue streams for HYMC in 2022.
HYMC Financials
While the potential of HYMC stock is undeniable, the company’s Q1 financials were underwhelming to many investors. With $9.1 million in revenues, HYMC had a 52% decline from the year-ago-period. This led to $22 million in net losses despite the company reducing its operating costs to $12 million compared to $14.7 million in Q1 2021.
Meanwhile, HYMC reported $172.7 million cash on hand mainly due to AMC’s investment in the company last March. As a result, HYMC could ramp up its plans for extraction and exploration at the Hycroft Mine. Considering the promising results of the company’s operations, HYMC could be set to grow its revenues in the coming quarters.
Technical Analysis
Currently trading at $1.61, HYMC stock shows a support at 1.26, a resistance at 1.67 and a secondary resistance at 1.97. HYMC stock gapped up on its earnings report, which means the stock could gap down from 1.42 to 1.57 later on. The stock’s accumulation has shown a downtick with profit-taking. Meanwhile, the RSI has dropped to 61 after earlier overbuying and the MACD is bullish.
While investors are enthusiastic after HYMC stock reported its quarterly finances, the run may be short lived. Although the RSI has regulated enough for a second run, the downtick in accumulation could be a sign that momentum is dying out. Currently testing its resistance at 1.67, if its able to maintain higher than average volume the stock could break through this resistance and approach the second. Volume was 87 million – roughly 37% higher than average on May 5th.
HYMC has an OS of 197 million and a low float of 173.1 million.
HYMC Stock Forecast
Considering that investors are estimating that the company’s current gold and silver reserves could be worth billions at current market value, HYMC stock may see a second surge base on these results. Given its market cap of $275.8 million, cash on hand following AMC’s investment, and plans to ramp up production, HYMC stock could be a profitable investment for not only AMC but investors bullish on the mining company’s potential. While HYMC missed EPS expectations with an additional 23 cent loss per share this quarter, it is now in a place to turn things around and realize more revenues in the coming quarters. With gold prices typically seen as a hedge against inflation, HYMC could be set for revenue growth this year if it is able to capitalize on its reserves.
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