Revisiting Doomberg

The recent pop and final validation of HYMC from Eric Sprott had me thinking back to a major force in HYMC's original decline long ago.. this Doomburg article trashing Hycroft, and both AMC and Eric Sprott for buying in, which always irked me for ignoring good aspects of the mine and ownership:

https://newsletter.doomberg.com/p/a-fool-and-his-gold

Some fun quotes:

"In other words, the Hycroft Mine is a low-grade refractory deposit from which it is nearly impossible to extract gold in a way that makes money."

Yet the mine seems very profitable at current gold prices, and Doomberg had predicted higher gold prices ahead..

And Hycroft will be making extra money from the FACT that it's a sulfurous refectory deposit by selling sulfuric acid as a byproduct of refining!

"Sprott, Inc. issued fresh debt to the new company, offering Hycroft both a term loan and a 1.5% net smelter royalty agreement. In the ensuing quarters, as you’ll see, the likelihood that this debt holder would be made whole was in serious doubt."

Well right now Hycroft is debt free so why was there so much doubt?

"Putting a laser-sharp point on the issue: with the shuttering of its Hail Mary technology program at the end of 2021, there is no there there. To use a phrase often lobbed at gold enthusiasts, the mine is largely a pet rock. It won’t be extracted profitably."

Except that Hycroft did enhance processing technology, and found higher grade ore to boot - even the low grade stuff they appear to be close to processing via heap leeching in the not distant future.

Lastly the close of the article is a delight, speaking of Aron form AMC:

"Even better, he is followed by an army of primate hodlers willing to follow him off a cliff."