Hycroft: A Gold Rush…Maybe

So, Hycroft Mining (HYMC +5.52%). Up 18% this week. Eighteen percent! It’s just… a number, really. And everyone’s acting like it means something. Like they suddenly discovered gold, which, ironically, is what they do. They dig it up. It’s the whole business model. But the stock went up because gold and silver prices nudged upwards. Nudged! It’s not a surge, it’s a polite little lift. And everyone jumps. It’s infuriatingly predictable. Like a badly written sitcom.

They announced an “increased assessment” of their resources. “Assessment.” What does that even mean? They looked at the dirt and decided there was… more dirt? More potential dirt? It’s just marketing speak. And they expect us to get excited? Honestly, the phrasing is just… sloppy.

Prospects and the Problem with “Prospects”

The idea is, they own land in Nevada, and if gold and silver prices go up, they’ll theoretically make money. Theoretically. It’s like saying, “If it doesn’t rain, the picnic will be nice.” Well, duh. But what happens when it does rain? What’s the contingency plan? Do they have a giant tarp? I bet they don’t. They’re focused on the upside, naturally. That’s what everyone does. It’s just… irresponsible.

And this “study” they released? 55% more gold and silver deposits. Fifty-five percent! It’s a nice number. Round. Makes it sound impressive. But what’s the baseline? Was it 10% before? 5%? It’s all relative. And they just throw it out there like it’s some kind of revelation. It’s exhausting.

Is This a Buy? Let’s Not Even.

Look, rising metal prices are good for miners. It’s not rocket science. But here’s the thing: they’re not actually mining anything yet. They’re preparing to mine. It’s like a restaurant that hasn’t opened. You can’t order a sandwich. They’re years away from “full operations.” Years! And they expect me to invest now? Based on a “potential”? It’s… it’s just a scheme. A beautifully packaged, meticulously marketed scheme.

They need capital. Of course they do. And where do they get it? From us. Diluting existing shareholders. It’s the oldest trick in the book. They take our money, promise us riches, and then… well, then they need more money. It’s a vicious cycle. And they’re betting on the boom continuing. But what if it doesn’t? What if the market corrects? What if gold and silver decide to take a nap? They’ll be left holding the bag. A very expensive bag.

A $3.4 billion market cap and zero revenue. Zero! It’s… it’s almost impressive, in a perverse sort of way. It’s like a magician pulling a rabbit out of a hat… except there’s no hat, and there’s no rabbit. Just a lot of smoke and mirrors. No, thank you. I’ll pass. I have better things to do with my money. Like, you know, having money.

2026-02-20 18:02

Prospects and the Problem with “Prospects”

Is This a Buy? Let’s Not Even.

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