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.
Source Fool.com
