Hycroft Mining Holding Corp (NASDAQ:HYMC) shares are surging in Wednesday's after-hours session after the company reported first-quarter results and announced findings from a recent exploration.
AMC Entertainment Holdings Inc (NYSE:AMC) recently acquired a 22% stake in the gold and silver miner. As a result of that investment, Hycroft Mining said it was able to reduce its debt by $20.6 million, complete technical studies and launch an exploration program to capitalize on recent exploration results.
"Several higher-grade intercepts were identified onsite, including the high grade silver Vortex deposit and the initial results from our 2021 drill program also returned higher grades than previously known at the mine," said Diane Garrett, president and CEO of Hycroft Mining.
"Our work also revealed that silver may be under-estimated in the resource model due to a lack of assays for silver values," Garrett added.
Hycroft Mining is now identifying targets for a drill program to optimize the high-grade and district potential of the mine.
Gold production totaled 5,358 ounces in the first quarter, while silver production totaled 16,861 ounces, which was in line with the company's forecast. Hycroft Mining said it ended the quarter with $172.8 million in cash.
HYMC Price Action: Hycroft Mining has traded between 28 cents and $4.37 over a 52-week period.
The stock was up 17.9% after hours at $1.65 at press time, according to data from Benzinga Pro.
Photo: courtesy of Hycroft Mining.
