Shares of Hycroft Mining (NASDAQ: HYMC) , the gold and silver miner that owns and operates the Hycroft Mine in Nevada, rose a huge 35% in the first few minutes of trading on May 5. The tiny miner's stock didn't hold onto all of that advance for long, however, giving up more than half of the gain roughly an hour into the trading day, when it was up around 14%. The big story appears to be the company's earnings release, but there's more going on here than just one news story.
With a market cap of just $300 million or so, Hycroft Mining is not a household name in the precious metals space. At least it wasn't until news of an investment by AMC Entertainment (NYSE: AMC) . That would, indeed, be the movie theater operator, in case you were wondering if you'd read that correctly. What exactly does AMC have to do with mining? Nothing, but it brought the name Hycroft to the fore for a whole new group of investors driven more by emotion than fundamentals, noting that AMC has been caught up in the meme stock craze. Hycroft's stock went up well over 50% on the investment. To be fair, AMC Entertainment invested alongside Eric Sprott, a well-known figure in the mining space, so there may be something to the movie house's unusual move. Still, Hycroft's shares have since lost almost all of the gain from that earlier news.
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Why Hycroft Mining Stock Rallied a Huge 35% at the Open Today