HYMC Stock Forecast 2023

HYMC Stock Forecast 2023

HYMC Stock Forecast: Latest Price

Latest News

  • Update on mining progresses -In the northern Nevada region the exploration drill has been carried out around 21600 meters out of 38000 meters in 2022-23. It shall now finalize the ultimate grind size and the type of grinding mills and capacity that will be required to optimally process our ore.
  • Debt reduction – Diane R. Garrett, President, and CEO, eliminated the $12.2 million debt of the company. The CEO paid cash in a total of $6.7 million and the rest was paid by means of common stock of Hycroft totaling 500,000 shares.
  • Vortex area found more returning gold – drilling the multiple vortex areas, the company came to a conclusion finding more gold than previously anticipated. Alex Davidson, Vice President, Exploration commented,’ The drill results announced today continue to demonstrate improved continuity in the higher-grade areas as compared with the current model, and at much higher grades than the average grade modeled for the Hycroft deposit. Particularly exciting for the Hycroft team is RC hole H22R-5648 from the Brimstone area which has multiple intercepts that significantly outperform the model and are at very near true thickness.
  • Sued for warrants-related bankruptcy – Previously, shareholders had secured an anti-dilution promise from HYMC formerly known as Nevada Gold Corp. HYMC has allegedly diluted its warrants worth 17.5% to offset falling gold and silver price and high costs of extracting ores from the time of its former company.

Latest Earnings

  • Revenue posted for Q3 was $8.7 million Q-o-Q growth has increased by 1.28x.
  • Q-o-Q EPS has declined by 0.76x  and was reported at a loss of $0.08
  • Q-o-Q total long-term liabilities have flat-lined by 0.005x and amounted to $178 million.
  • Q-o-Q cash on hands has dropped by 0.025x bringing the final value to $153 million.

Why is HYMV stock price falling?

Despite of progressing in its operations the stock price has tanked by 6% in a single day. As of September 30th, it has 6700 ounces of gold in its inventory and is planning to sell it off by the first quarter of 2023. However, the question that arises here is why the stock falling. It is because of the dilution of stock explained above on the page.

Also Read: AMC Stock Forecast

HYMC Stock Forecast: Bear Case

  • A company with poor fundamentals- A popular proverb in the stock market is that in the short term it is all about the long and short positions of traders and in the long term it is all about the company’s financial strength. The current frenzy may quickly die if investors have a look at the balance sheet of the company. As a matter of fact, the company has not made a profit since 2013. It is a loss-making company that direly needed cash and AMC Entertainments came to rescue it and nothing more than that. The recent gains by Hycroft will be sustainable only if the company shows profit in upcoming quarters. The net income is in the range of $-29 million in the last four quarters, which is not a healthy sign for the company.
  • Over-dilution by Hycroft Mining- For a start, it is good that the company raised $194.4 million to come out of bankruptcy, but has diluted its equity to a very large extent for the same. HYMC stock has now over 196 million shares outstanding in the market. Also, combining AMC Entertainment and recent ATM equity placement, the company has lost over 60% hold over the company. A company’s management should have a greater equity hold over the company than other investors’ positions. The same is not the case with HYMC and it is not a healthy sign for the company.

Conclusions

HYMC stock is meant for the meme and short-term traders, who know how to handle huge volatility driven by news and media, and not for long-term investors looking at least till it improves its balance sheet.   

HYMC stock forecast
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-Vineet Agarwal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

Subhash

Subhash

Subhash, Founder of Crowdwisdom360 is an MBA and a Trained Financial Advisor with an extensive background in Forecasting in Financial Services and Politics. He has appeared many times on National TV and has written for a variety of magazines on Wealth Management and Election Strategy.