- Hycroft Mining (HYMC) stock is easily affordable for most portfolios and offers direct exposure to the gold and silver markets.
- The company’s recently issued quarterly results ought to convince any skeptics of Hycroft’s ability to get metals out of the ground.
- Investors should consider a stake in HYMC stock while it’s still relatively cheap.
For easy and low-priced exposure to precious metals, you might consider taking a stake in Nevada-based gold and silver mining company Hycroft Mining (NASDAQ:HYMC). With HYMC stock, you can still get on board today at a bargain price point and hopefully ride it higher this year.
It’s been said many times that gold and silver are anti-inflation assets. With the annualized U.S. Consumer Price Index recently reaching 8.5%, it’s understandable if you want to use precious metal mining shares to counterbalance the force of inflation in your portfolio.
Not all miners are worth your investment capital, though. Informed investors should ask themselves whether HYMC stock is a good value based on Hycroft Mining’s fundamentals.
Value is in the eye of the beholder, but Hycroft’s results are compelling. At the end of the day, you might wonder why the company’s shares are so cheap. With that in mind, you may even choose to start a buy-and-hold position in the stock.
What’s Happening with HYMC Stock?
How wild can HYMC stock get? It’s a volatile asset, to say the least. Bear in mind the stock has a 52-week range of around 28 cents to $4.37 and is prone to sizable daily price moves.
Here’s a perfect example. In after-hours trading on May 4, the Hycroft Mining share price was up 33.5%. Now, this stock is known to be a big mover. Clearly, though, something important happened that afternoon.
Sure, that was the day when the U.S. Federal Reserve announced a 50-basis-point raise in the Fed funds rate. Yet, that’s not the only thing that happened on May 4 — but we’ll get to that in a moment.
First things first, though: we need to dig deeper into Hycroft Mining’s business model. To put it simply, the company explores and develops on a site in Nevada, which contains one of the world’s largest precious metal deposits.
Hycroft is fully permitted for commercial operations at the mining site. Furthermore, this is a mineral-rich deposit, with measured and indicated resources of 9.65 million gold ounces and 456 million silver ounces.
Still, it’s not enough for a miner to have major deposits in the ground. The company has to demonstrate its ability to effectively get the resources out of the ground. So, does Hycroft Mining pass this test?
As the data will show, it’s safe to say Hycroft passes the test with flying colors. Indeed, the company’s first-quarter 2022 results should change any skeptic’s mind in a hurry.
Impressively, Hycroft Mining disclosed gold production of 5,358 ounces and silver production of 16,861 ounces during the three months ended March 31, 2022. These results, eye-opening as they are, were actually in line with the company’s forecast.
Those figures could be surpassed in the near future. As Hycroft Mining President and CEO Diane Garrett revealed, “Several higher-grade intercepts were identified onsite, including the high grade silver Vortex deposit.” On top of that, the initial results from Hycroft’s 2021 drill program “returned higher grades than previously known at the mine.”
On the financial side, Hycroft Mining appears to have a rock-solid balance sheet. More specifically, the company ended 2022’s first quarter with a cash position of $172.8 million.
In light of this, Garrett noted that Hycroft Mining’s strong balance sheet allows the company to reduce its debt. The CEO also suggested it enables Hycroft to complete its technical studies and “launch a robust exploration program to capitalize on recent exploration results.”
What You Can Do Now With HYMC Stock
As you can see, Hycroft Mining has revealed its ability to produce large quantities of precious metals in a short period of time. Additionally, its strengthened balance sheet should help the company continue its mining operations.
In a high-inflation environment, taking a small position in quality mining companies isn’t a bad idea. Therefore, you’re invited to consider buying HYMC stock while it’s still easily affordable for most portfolios.
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On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.