Remember when AMC Entertainment Holdings (AMC) decided to buy a chunk of a gold mining company? Yeah, that raised some eyebrows. Back in 2022, the movie theater chain shocked investors by picking up a stake in Hycroft Mining Corporation (HYMC), a move that seemed wildly off-brand for a popcorn-and-blockbusters business drowning in debt. Fast forward to today, and AMC is proving the doubters wrong by cashing out most of that position with a nice profit to show for it.

Turning Gold Into Green

AMC just announced it's transferring the bulk of its Hycroft investment to Sprott Mining in a deal worth $24.1 million. The transaction includes roughly 2.34 million shares, warrants for about 1.34 million additional shares, and rights for around 12,000 future-vesting shares. When the dust settles in the fourth quarter, AMC expects to book an accounting profit of approximately $7.9 million.

The company isn't completely walking away, though. AMC is keeping about 1 million warrants exercisable at $10.68 per share and roughly 64,000 common shares. The retained stake gives AMC a chance to "participate in the future success of Hycroft," as the company put it—basically, they're leaving some chips on the table in case the mining operation strikes gold (literally).

"This is an exceptional result for both Hycroft and AMC investors and exactly what we intended when we originally invested in March of 2022," said AMC CEO Adam Aron.

A Bet That Nobody Understood

When AMC first announced the Hycroft deal three years ago, the reaction was... skeptical, to put it mildly. Here was a struggling theater chain with mountains of debt, making a left-field investment in an entirely unrelated industry. Critics questioned whether management had lost the plot. The move seemed like a distraction from AMC's core challenges: filling seats and selling concessions in a post-pandemic world where streaming dominates.

Turns out, AMC knew something the critics didn't—or got extremely lucky. Either way, the company is now walking away with a profit and can point to the transaction as a win.

Back to the Movies

So why sell now? According to Aron, it's all about refocusing on what AMC does best. The company recently reported strong third-quarter results with record revenue per person, and management is bullish on the upcoming slate of films stretching into 2026.

"Now is the right time for us to smartly monetize the majority of our original investment and redeploy the capital towards the substantial opportunities within our core theatrical exhibition business," Aron explained.

The timing makes sense. AMC is forecasting what could be its strongest fourth quarter in six years, riding the wave of a robust Thanksgiving box office and an exciting lineup of upcoming releases. Aron previously noted that "the fourth quarter industrywide box office will turn out to be the highest-grossing fourth quarter in six years," and he expects 2026 to blow 2025 out of the water.

The Hycroft profit will only add to what's shaping up to be a banner quarter for the theater chain. With the sale proceeds heading back into the core business, Aron sees nothing but upside: "With the backdrop of a strong Thanksgiving holiday box office, coupled with an exciting film slate for the remainder of 2025 and 2026, the future for AMC looks exceedingly bright."

Where the Stock Stands

AMC shares climbed 1.54% to $2.31 on Monday. The stock has traded between $2.05 and $4.76 over the past year and is down 42.7% year-to-date in 2025. Not exactly a celebration, but the Hycroft news gives investors something positive to chew on—along with that $12 bucket of popcorn.