AMC Theatres' strategic move to diversify its portfolio by investing in Hycroft Mining, a gold and silver operation, initially aimed to shield the company from the unpredictable nature of the Hollywood box office. However, a recent decision to divest a significant portion of this stake just before a dramatic surge in silver prices has raised questions about the timing and potential financial implications. Despite covering its initial investment, the cinema giant appears to have bypassed a substantial windfall, while the primary buyer, Sprott Mining, reaped considerable benefits from the subsequent market rally.
AMC's Mining Venture: A Closer Look at the Ill-Timed Divestment
In a surprising turn of events, AMC Entertainment Holdings, the parent company of AMC Theatres, announced in early December 2025 the sale of approximately 80 percent of its equity in Hycroft Mining Holding Corp. The transaction, valued at $24.1 million, saw the majority of the stake transferred to fellow investor Sprott Mining. At the time, this sale was framed as a strategic move that allowed AMC to recuperate its initial $27.9 million investment made in March 2022, securing an accounting profit of $7.9 million for the fourth quarter ending December 31, 2025. This initial investment in the Nevada-based gold and silver mine was an unconventional step for the cinema operator, intended to provide financial stability beyond its traditional, often volatile, film exhibition business.
However, the narrative dramatically shifted shortly after the sale. On January 26, 2026, Hycroft Mining's stock on the NASDAQ Exchange, despite a slight daily dip, reflected a significant upward trend. The spot price for silver experienced a substantial increase of approximately 4 percent on that day, contributing to an astonishing 48.3 percent rise in its per-ounce value over the preceding month and a staggering 255 percent increase over the past year. Shares of Hycroft Mining even briefly touched $58.73 during Monday's trading, fueled by growing investor interest in precious metals as safe-haven assets amidst global economic and political uncertainties. This post-sale surge highlighted the considerable profit potential that AMC narrowly missed.
The details of the private sale to Eric Sprott, a Canadian billionaire who had initially co-invested with AMC in Hycroft Mining, involved the divestment of approximately 2.34 million common shares, along with warrants for about 1.34 million shares and rights to nearly 12,000 future-vesting shares. While AMC retained roughly 1 million warrants to acquire Hycroft Mining shares at $10.68 each and around 64,000 common shares, the lion's share of the post-sale appreciation accrued to Sprott. AMC Theatres CEO Adam Aron, commenting on the initial investment's success via social media, noted on X (formerly Twitter) that their total Hycroft holdings, including cash from the November sale, were valued at approximately $72 million, declaring, "He who laughs last, laughs best." Despite this statement, the company chose not to offer further comments on the specific transactions surrounding its Hycroft Mining stake, leaving observers to ponder the full extent of the missed opportunity.
This situation serves as a compelling reminder of the inherent risks and rewards in market timing, especially within the volatile commodities sector. While AMC's initial investment strategy to diversify was prudent, the quick sale of a significant stake before a monumental market shift underscores the challenge of predicting commodity price movements. For businesses seeking alternative revenue streams, this case highlights the dual nature of such ventures: they offer potential for significant gains, but also the risk of leaving substantial profits on the table due to premature divestment or misjudged market trajectories. It also emphasizes the importance of a long-term perspective and robust analytical frameworks in managing diverse asset portfolios, particularly when dealing with rapidly appreciating commodities.