AMC acquires stake in gold and silver mining company

Yahoo Finance's Brian Sozzi reports that AMC has acquired stake in gold and silver mining company Hycroft.

Video Transcript

BRIAN SOZZI: Welcome back to Yahoo Finance Live. Jared, this was turning out to be a somewhat normal morning for the morning show here. Talked some inflation, some breaking PPI news, get some stock picks from a guest, but really, it all went to something on this news that AMC is taking a stake in Hycroft Mining Holding Corporation. I originally thought this was an early April Fool's joke, but it's not. AMC will spend about $28 million to take a stake in a mining company that operates a 71,000 acre mine in northern Nevada.

And listening to AMC CEO, Adam Aron, you get the sense that maybe he's trying to create the next Berkshire Hathaway. Maybe things are so good at AMC and the movie theater business right now, COVID turning a corner, he wants to create a holding company of different investments, and he's making his play here today with the mining company.

JARED BLIKRE: That's right, and he's drawing parallels to the AMC business, how they suffered through the pandemic, kind of reoriented, had to build up their capital position, and why not pivot to mining? I want to show-- I want to tell a story here on the YFi Interactive because I think this is really fascinating. Hadn't heard of this company before. It's a very small company. Came to market as a SPAC, but you can see here, the recent low was $0.28. So this is, indeed, a penny stock. The high is 7.47.

Now this is a year-to-date chart of Hycroft Mining. And you can see a few days ago, interest really perked up. And you got to wonder, was there some insider transactions there? Or did people just know that there was some buying going on? I think that's going to be looked at. Here is a one-year chart. You can see down 80%. A max chart-- now this goes back to the 2018 IPO of the SPAC entity. That was trading at $10 an hour-- that's $10 per share, not per hour-- and saw some activity here and just fell off an absolute cliff.

I went through their history on the terminal. They had a bunch of C-suite changes over the years. And now they have completely pivoted. I don't know what AMC knows about the gold market, but they're bringing along Eric Sprott. And this guy knows gold. He really does. A lot of the gold bugs, their favorite fund is-- are those broad ETFs that they manage. So all in all, it should be interesting. I think this is a gem that just landed in our email boxes this morning. And I happen to love talking about it.

BRIAN SOZZI: Yeah, it does look like Adam Aron wants to apply his turnaround strategy at AMC to a mining company. But Jared, I would be interested if I buy a ticket for an AMC movie, maybe if I went to go see the new Batman, I would like to be taken on a tour at a later date of this new mine. I think that is a phenomenal experience. So I'm going to pay $30 for a new movie ticket. I want to see gold, and I want to dig it out of the ground.

JARED BLIKRE: Yeah, me, too, except I might want some Bitcoin or Ethereum. We might have to come together with a different company for that. Maybe GameStop-- you know, GameStop building out that NFT network. By the way, not to completely pivot here, we do have those earnings after the bell tomorrow. So there's another black box that theoretically might be open, but with all these pivots that we've seen throughout the pandemic, we know precious little about some of these meme stocks and their plants.