Examining AMCs embarrassingly stupid investment in a literal gold mine

AMC threw both its analysts and memestock shareholders for a loop this week after the company announced it was acquiring a 22 percent stake in a mining company. Not a crypto mining company — a company that mines actual silver and gold. It’s a baffling investment for a movie theater chain, enough so that one analyst we spoke to called it a “complete misuse of shareholder capital.”

To acquire a minority stake in Hycroft Mining Holding Corporation, AMC is spending close to $28 million, a not-insignificant chunk of change for a company that not so long ago was teetering on the brink of bankruptcy. Hycroft, owner of the 71,000-acre Hycroft Mine in Nevada, is sitting on “some 15 million ounces of gold deposits and some 600 million ounces of...

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