Shares of Hycroft Mining (HYMC 1.05%) kept soaring in December, according to data from S&P Global Market Intelligence. The prospective miner of gold and silver in Nevada was up over 100% last month and is up over 1,000% in the past year due to rising prices of gold and silver alongside the development of its mining holdings.
Hycroft Mining does not generate any revenue today, but it is planning to build out facilities in the near future. Here's why the stock was up again in December, and whether it is a buy for your portfolio in 2026.
NASDAQ: HYMC
Key Data Points
Soaring metals prices, improved deposits
The first variable driving Hycroft Mining's share price higher is the overall price of gold and silver in commodity markets. If the company ever starts producing the metal from the ground and processing it into a sellable material, it makes more money the higher the price of gold and silver is. The price of gold is up 67% in the last year, while silver is up 160%.
Hycroft Mining does not currently mine any metals from the ground, but it is making progress in this regard, recently stating that it has high-grade ore for its Vortex mining facility. Again, it must prove that it can actually extract this from the ground at a profit, but this is good news nonetheless.
Investors are bidding up Hycroft Mining as a momentum stock, betting that it will begin to gush profits once it finally starts selling silver and gold at the current market prices. The stock is expected to follow the general price trend of gold and silver, which soared again in December (silver rose 34.5% last month alone).
Image source: Getty Images.
Time to buy Hycroft Mining stock?
At a market cap of $2.4 billion, investors are now making a large future bet on a company that doesn't generate any revenue today. Sure, the price of gold and silver is surging, but they are commodities that tend to rise and fall in a cyclical manner. There is no telling what the price of gold or silver will be within a year or five years from now.
Plus, Hycroft is not actually operating its mine at the moment. This has turned into a bit of meme stock, with gold and silver prices becoming the fuel to supercharge the Hycroft stock price. It may keep rising in the interim, but there is no telling what Hycroft mining stock is going to trade at over the long term.
