Hycroft Mining: Sprott’s Bet & Our Take

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Alright, settle in folks, because we’ve got a situation. A mining billionaire – and believe me, they’re a breed apart – is doubling down on Hycroft Mining (HYMC +11.63%), and the market reacted like someone just offered free pastrami. Eric Sprott, a name you’ll recognize if you’ve ever accidentally wandered into a mining convention, decided he needed more Hycroft. Shares jumped nearly 12% today. Twelve percent! That’s like finding a whole shekel in your couch cushions. And trust me, I know shekels.

Digging for Trouble… or Treasure?

So, after the closing bell Monday, a regulatory filing dropped – a document so thrilling, it’s a wonder it didn’t require a drumroll. Apparently, an entity associated with Mr. Sprott scooped up 150,000 shares. Not exactly a king’s ransom, but enough to make Hycroft’s stock price do a little jig. He now owns over 36.9 million shares. Thirty-six point nine million! I’ve got that many paperclips, and frankly, they’re not performing nearly as well.

Now, for those keeping score at home, Yahoo! Finance tells us Hycroft has just over 83 million shares outstanding. Do the math, and you’ll discover Sprott controls roughly 44% of the company. Forty-four percent! That’s more control than I have over my appetite for blintzes, and that’s saying something.

Neither Sprott nor Hycroft has offered a public comment yet. Probably busy counting the money. But it’s a pretty strong signal – a vote of confidence, if you will. The guy clearly thinks this miner has potential. Or maybe he just lost a bet. You never know with these billionaires.

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Preparing for a Pop… Or a Dud?

Now, let’s be honest. Hycroft is still in the exploration phase. They haven’t exactly been printing money. In fact, they’ve been doing the opposite. Deep losses, zero revenue… it’s a recipe for disaster, right? Wrong! They recently released a new mineral resource estimate, and it’s 55% higher than previously thought. 55%! That’s like discovering you’ve been underestimating the size of your inheritance. A very pleasant surprise, I assure you.

So, Sprott might be onto something here. A long-term investment, yes. A risky one? Absolutely. But where he goes, other mining investors tend to follow, like lemmings… or investors desperately seeking the next big thing. I’m not saying it’s a sure bet, but it’s definitely… interesting. And in the world of mining, “interesting” is often good enough. Just don’t blame me if you end up with a hole in your portfolio. I’m just a portfolio manager, not a magician.

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2026-02-25 03:02