- Gold prices are rising due to the Russia-Ukraine conflict and Hycroft Mining seems to have attracted significant retail investor interest.
- The company has over 22 million ounces of gold equivalent resources and its valuation has quintupled this week.
- However, Hycroft Mining has a high debt load and is in pre-commercial scale operations, which means that it’s in trouble financially and won’t benefit much from high gold prices.
- In my view, retail investors should eventually realize their mistake, or the company could take advantage of the situation and carry out a capital increase to strengthen its balance sheet.
For further details see:
Hycroft Mining - Retail Investor Interest Seems Misplaced And I'm Bearish