Why Hycroft Mining Stock Soared 57% Last Month

Shares of Hycroft Mining (NASDAQ: HYMC) rocketed 57% higher in January, according to data from S&P Global Market Intelligence. The company, which owns proposed gold and silver mines but does not actually mine today, is seeing a booming stock price amid the resurgence of metals prices. The company also outlined a large silver concentration late in December, which could prove profitable. However, with gold and silver prices collapsing to start February, Hycroft Mining stock has quickly retraced 23% from recent highs. Here's why the stock was rising in January, and whether now is a good time to buy the dip on this gold and silver miner. The mining business is easy to understand. If you can produce refined metal at a price below the current selling price, the business will make a profit, meaning the higher the price, the better. With gold and silver both up around 100% in the last year, investors turned Hycroft Mining into a momentum stock. It is up over 1,000% in the last twelve months based on assumptions for operating leverage once it begins to mine for gold and silver.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool