Why This Gold Mining Stock Was Up Close to 1,000% Last Year

Shares of Hycroft Mining (NASDAQ: HYMC) soared a ridiculous 976% in 2025, according to data from S&P Global Market Intelligence. A prospective miner of gold and silver in Nevada, Hycroft Mining soared because of rising metals prices last year, even though it doesn't actually have an operational mine today. The company used its rising share price to pay off debt through common stock offerings.

The stock may be up big in the last year, but it is still down 72% from all-time highs. Here's why Hycroft Mining stock set records last year, and whether it is a buy right now.

Rising gold and silver prices

Hycroft Mining is working on one mine in Northern Nevada, although it is not operational today and generates zero revenue. It is working to mine both gold and silver ore, with feasibility studies done in late 2025 indicating dense silver deposits that could be profitable. With the price of gold up 68% in the last year and the price of silver up 163%, investors are betting that Hycroft Mining will benefit from the sustained high prices of metals once it begins mining operations.

Higher gold and silver prices are important for miners, as they need to earn a spread over their mining costs in order to generate a profit for shareholders. Analysts estimate that there could be tens of billions of dollars worth of silver and gold in this mine, which would be a boon for shareholders compared to a current market cap of $2.2 billion.

While this is all exciting, the company is not going to be operational in mining gold or silver until 2029 or 2030 at the earliest, and will require a lot of upfront investment in order to begin. This will require outside financing from investors, and although the company has raised funds and reduced the debt on its balance sheet, it will need a lot of cash to get started with these gold and silver mines.

Image source: Getty Images.

Time to buy Hycroft Mining stock?

Rising gold and silver prices are a benefit to Hycroft Mining. That is, if it can ever bring its product to market. Metal prices are notoriously cyclical, and could easily be in a down cycle when ore comes out of the ground later this decade. This would ruin Hycroft's chances of generating a profit and likely tank the stock price.

Unless you are confident that gold and silver prices will be at this level or much higher for the next decade, it is probably best to avoid Hycroft Mining stock after its massive price appreciation last year.

Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.