CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Hycroft Mining stock forecast: Will HYMC recover?

By Payel Bera

Edited by Vanessa Kintu

14:58, 6 April 2022

hycroft mining stock forecast . Illustration of the financial stock market chart, business investment concept and future stock trading. hycroft mining stock forecast
Hycroft Mining stock forecast: Will HYMC recover? Photo: whiteMocca / Shutterstock.com

Hycroft Mining Holding Corporation (HYMC) filed for chapter 11 bankruptcy protection early in 2015. Falling precious metal prices and a debt load of $543m forced it into restructuring. Once again, Its massive gold resource (although at low grades) is failing to boost its low market cap of $110m. 

At the time of writing (6 April), Hycroft Mining holding corp. stock prices are nearly 86% down from the all-time high of $15.40 in August 2020. Now attention will turn to its first-quarter results announcement on 16 May. They should give a clearer picture of the company’s financial condition and if the huge equity haul could help it.

Let’s look at the Hycroft Mining share price forecast for 2022 and beyond.

About Hycroft Mining

Hycroft Mining Holding Corporation is a gold and silver producer, headquartered in Winnemucca, Nevada. The Hycroft mine has one of the largest gold and silver deposits, holding 15 million ounces of gold and 600 million ounces of silver (as of December 2021). It’s also known for its low-capital, low-cost mining process, with a 34-year mine life.

While Hycroft claims to have a massive reserve of gold and silver, the resource grades are a maximum of 0.012 ounces per ton (opt), or 0.31 grams per tonne (g/t), which is very low. According to a World Bank report:

“World Gold Council defines a high-quality underground mine as having a gold ore density between 8 and 10 g/t, while a low-quality underground mine has a gold ore density of 1 to 4 g/t.”

Hycroft’s resources have been a disappointment to its investors. However, in September 2021, the company reported that “recent exploration drilling in the Vortex Zone [had] encountered significant intercepts including 51.8 meters (170 feet) grading 2.47 g/t (0.072 opt) gold and 25.5 g/t (0.744 opt) silver (H21R-5592)”. This could open a new door of opportunity for the miner. 

HYMC news highlights

Before we begin with the current news highlights and proceed to a Hycroft Mining stock price prediction, let’s go back. Following the bankruptcy of Allied Nevada in 2015, the company managed to stage a comeback, re-listing a few years ago as Hycroft Mining. 

It hasn’t been particularly profitable for investors. Even during the bull run in the gold and gold miners’ market, Hycroft underperformed analysis. Investors found that both the gradation in gold and silver and the company’s high production cost weighed on revenue. 

In November 2021, Hycroft Mining reported a significant increase in gold mining, bringing annual gold production of 55,668 ounces for the year ended 31 December 2021. The reports failed to include Hycroft’s production costs. Technical analysis of the 10-K report, filed with US Securities and Exchange Commission (SEC), shows Hycroft reported production costs of $1,833/oz gold, up from $1,675/oz in 2020. Hence, a net loss of $88m for 2021.

Total cost of sales

The company’s shares took a hit and are currently (6 April) 76% lower than its re-listing value in March 2018. Efficiency and cost control are keys to Hycroft’s success. It will not only have to generate sufficient cash flow to repay the huge debt but make a consistent year-on-year profit, which is not there at present.

To strengthen the balance sheet, Hycroft launched an at-the-market (ATM) equity offering programme on 15 March, which provided for the offer and sale, from time to time, of shares of its Class A common stock. Through the ATM program, Hycroft sold 89,553,584 shares and generated aggregate gross proceeds of  $138.6m.

Gold

2,401.36 Price
-1.830% 1D Chg, %
Long position overnight fee -0.0198%
Short position overnight fee 0.0116%
Overnight fee time 21:00 (UTC)
Spread 1.20

US100

19,526.60 Price
-1.140% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 7.0

XRP/USD

0.59 Price
-1.950% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

BTC/USD

67,026.60 Price
-0.600% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

President, CEO and acting chairman of Hycroft, Diane Garrett, said: 

“We are extremely pleased with this successful financing, which places the company on solid footing to advance the Hycroft Mine as well as opening up additional opportunities for the company.”

Eric Sprott and AMC Entertainment Holdings (AMC) were the top buyers with a $55.9m equity private placement. Hycroft has also provided the investors an issuance of 46,816,480 units, with each unit consisting of one common share and one common share purchase warrant. The overall haul in cash will help Hycroft to reduce debt and extend repayment to 2027. 

HYMC stock forecast 2022-2025

Hycroft Mining (HYMC) 5-year stock price chart]

Let’s discuss the Hycroft Mining share price forecast in detail. Hycroft shares are currently trading at $2.0637 as of 6 April 2022. Hycroft stocks rebounded slightly after the ATM program, and peaked on several occasions.  

While investors’ expectations that the stock could rebound largely depend on how the company manages to utilise the cash it’s raised, projections from analysts may help in making decisions to hold, buy or sell.

At the time of writing, analysts from Wallet Investor placed their HYMC stock price target to a maximum of $0.000000085 by the end of December 2022. They forecast that its stock could drop to $0.000001 by February 2023. In short, Wallet Investor’s forecast system states that Hycroft is a bad long-term investment and expects it to crash. 

An outlook offered by MarketBeat marks Hycroft as a ‘hold’ stock and set the share price target at $0.00. BMO Capital Markets downgraded the rating from outperform to market performance last November. Analysts from Gov.Capital expected Hycroft stocks could fall to $0.1448 in a year’s time.

A long-term forecast by Panda Forecast puts Hycroft’s price targets at $1.91 by the end of 2022, followed by $1.89, $2.49, $4.58 and $3.31, respectively, from 2023 to 2025. 

Is HYMC stock a good buy?

Funding does help in strengthening the financial situation of a company, however, in the case of Hycroft, its low-grade gold and silver reserves may let it down. Going by analysts’ prediction that the price could further fall in 2021 and beyond, you might conclude Hycroft is not a good buy. These predictions are based on algorithms that consider past performance and historical data to predict the future. They can be wrong. Past performance is no guarantee for future success. Investors should do their research before investing.

Will HYMC stock go up or down? 

Looking at the current trajectory of Hycroft’s share prices and the ATM programme being completed in March, there is scope for the stock to move up. Forecasts from Wallet Investor, MarketBeat and Gov.Capital predict a downward slope.

You should always do your own research before investing, based on your attitude to risk, your portfolios and how comfortable they feel about losing money. You should never invest more money than you can afford to lose. 

FAQs

Is Hycroft Mining a good investment?

A risky gold miner with a troubled past is a difficult choice of investment. Analysts’ forecasts are generally bearish on the company. Whether Hycroft Mining is a good investment for you will depend on your risk tolerance, among other factors. Always do your own research. And remember never to invest money that you cannot afford to lose.

What does Hycroft Mining do?

Hycroft Mining is a precious metals development company that owns a gold and silver mine in Nevada. As of December 2021, Hycroft has 15 million ounces of gold and 600 million ounces of silver in resources.

Markets in this article

HYMC
Hycroft Mining Holding Corporation
2.5789 USD
-0.05 -1.930%

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 630,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading