Accepting payment in crypto, retail popcorn sales are one thing, but AMC Entertainment’s diversification push now includes acquiring a stake in a publicly traded gold and silver mining company.
The nation’s largest movie chain is buying 22% of Hycroft Mining Holding Corporation. It said it’s making the move alongside Eric Sprott, one of the world’s leading gold and silver investor and described the 71,000-acre Hycroft Mine in Nevada as one of North America’s largest development sites with some 15 million ounces of gold resources and some 600 million ounces of silver. AMC will name a member to the board.
Said CEO Adam Aron: “To state the obvious, one would not normally think that a movie theatre company’s core competency includes gold or silver mining. In recent years, however, AMC Entertainment has had enormous success and demonstrated expertise in guiding a company with otherwise valuable assets through a time of severe liquidity challenge, the raising of capital, and strengthening of balance sheets, as well as communicating with individual retail investors. It is all that experience and skill that we bring to the table to assist the talented mining professionals at Hycroft.”
“No clue,” one Wall Streeter told Deadline this morning. “No synergistic value. Seems like a very risky investment outside of the company’s core competency. I know nothing about the mining industry so I can’t give you any thoughts about the business they are buying into.”
“As I have been saying repeatedly since last June, investors should think creatively and boldly about AMC‘s future, because within the company, we ourselves have been thinking creatively and boldly about our future,” said Aron.