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Assessing Hycroft Mining (HYMC) Valuation After High Grade Silver Find And Eric Sprott Stake Increase

Simply Wall St · 3d ago

Hycroft Mining Holding (HYMC) is back on traders’ screens after reporting its highest silver grades to date at the Vortex Silver System in Nevada, alongside a larger ownership stake from billionaire investor Eric Sprott.

See our latest analysis for Hycroft Mining Holding.

The recent drilling update and Eric Sprott’s higher stake arrive after a sharp shift in sentiment, with a 163.65% 30 day share price return, a 293.91% 90 day share price return, and a very large 1 year total shareholder return. This suggests momentum has been building rather than fading.

If you are looking beyond Hycroft’s latest move, this could be a useful moment to broaden your search with fast growing stocks with high insider ownership.

After a share price that has run hard over 30 and 90 days, along with fresh high grade silver news and a bigger stake from Eric Sprott, you have to ask: is there still a buying opportunity here, or is the market already pricing in future growth?

Price to Book of 50.7x: Is It Justified?

Hycroft Mining Holding’s last close at $29.74 sits against a very high P/B multiple of 50.7x, which stands out even in a momentum driven move.

P/B compares the company’s market value to its book value. For a miner, this often reflects the carrying value of its assets, including its resource base and development work. With Hycroft reporting no meaningful revenue and a net loss of US$45.61m, the market is clearly putting a large premium on its asset potential rather than current earnings power.

Against that backdrop, a P/B of 50.7x looks stretched when you set it next to the wider US Metals and Mining industry at 2.4x. The stock is also in line with a peer group average of 50.8x. While it screens as expensive versus the broader industry, it is not an outlier compared to closer peers that trade on similarly elevated book value multiples.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-book of 50.7x (OVERVALUED)

However, you still have to weigh drilling excitement and recent share price momentum against zero revenue, ongoing net losses of US$45.61m, and a very high P/B multiple.

Find out about the key risks to this Hycroft Mining Holding narrative.

Build Your Own Hycroft Mining Holding Narrative

If you see the numbers differently or want to stress test your own view, you can build a complete Hycroft thesis yourself in just a few minutes, starting with Do it your way.

A great starting point for your Hycroft Mining Holding research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Hycroft has caught your attention, do not stop here. The real edge often comes from comparing several focused ideas side by side using curated screeners.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.