A mining industry billionaire is increasing his stake in gold and silver miner Hycroft Mining (HYMC 4.09%), and investors were there for it on Tuesday. With news of a new purchase of company stock by Eric Sprott, Hycroft's shares rocketed nearly 12% higher on the day.
The dig for stock market gold
After market hours Monday, a regulatory filing revealed that an entity associated with Sprott, a veteran and very successful investor in mining businesses, had purchased 150,000 shares of Hycroft's common stock, adding to his already considerable holdings. According to the document, Sprott now owns more than 36.9 million shares following the purchase.
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According to data compiled by Yahoo! Finance, Hycroft's shares outstanding are just over 83 million, giving Sprott a roughly 44% stake in the company.
Neither Sprott nor Hycroft has yet publicly commented on the latest buy. Nevertheless, it's a significant vote of confidence in the miner's business, indicating that the noted investor believes it has significant potential.
NASDAQ: HYMC
Key Data Points
Preparing for a pop
This, despite the fact that Hycroft is still in the development and exploration stage, and in recent years has posted no revenue and deep net losses. However, the one mine it owns was the subject of a recent mineral resource estimate, which found the potential amount of precious metals to be 55% higher than the previous assumption. This might very well be a good, albeit long-term, investment by Sprott, and where he goes, mining industry investors often follow.
