Movie theater company AMC Entertainment Holdings (NYSE:AMC) made a surprising move by snatching up a stake in gold mining company Hycroft Mining Corporation (NASDAQ:HYMC) back in 2022. Three years later, AMC is mostly cashing out and showing investors a profit.
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AMC Sells Majority of Hycroft Stake
AMC recently announced it is transferring the majority of its equity investment in Hycroft Mining to Sprott Mining.
The deal will be done for a net consideration of $24.1 million, according to the company. AMC said the transaction is expected to net an accounting profit of around $7.9 million in the fourth quarter.
AMC sold around 2.34 million shares, along with warrants for around 1.34 million Hycroft shares and rights for around 12,000 future-vesting shares as part of the transaction.
After the sale, AMC will maintain a small position in Hycroft with around 1 million warrants good to purchase Hycroft shares at $10.68 each and around 64,000 common shares. The stake is maintained to "participate in the future success of Hycroft," the company said.
"This is an exceptional result for both Hycroft and AMC investors and exactly what we intended when we originally invested in March of 2022," AMC CEO Adam Aron said.
The Hycroft transaction was questioned at the time, as AMC had high debt levels and the move was viewed as one outside the company’s main area of expertise. Years later, AMC has turned the stake into a profit and maintained upside potential from Hycroft in the future.
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Why AMC Is Selling
The sale by AMC comes after the company recently reported strong revenue and record revenue per person in the third quarter. The company also guided for a strong fourth quarter, thanks to several box-office hits, and highlighted a strong 2026 blockbuster slate.
AMC said it was doing the transaction now to focus on its main movie theater sector.
"Now is the right time for us to smartly monetize the majority of our original investment and redeploy the capital towards the substantial opportunities within our core theatrical exhibition business," Aron said.
The AMC CEO said the company is well-positioned for the future with the new transaction: "With the backdrop of a strong Thanksgiving holiday box office, coupled with an exciting film slate for the remainder of 2025 and 2026, the future for AMC looks exceedingly bright."
The closing of the Hycroft transaction in the fourth quarter adds to what the company is predicting could be the best fourth quarter in six years.
“We expect the fourth quarter industrywide box office will turn out to be the highest-grossing fourth quarter in six years,” Aron previously said.” We also continue to believe that the size of the 2026 box office will be dramatically larger than that achieved in 2025.”
AMC Stock Price Action
AMC stock is up 1.54% to $2.31 on Monday versus a 52-week trading range of $2.05 to $4.76. AMC shares are down 42.7% year-to-date in 2025.
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