RE: RE: RE: Thoughts..... Having never been through a reverse split, I can only take on board some of the comments by more experienced investors suggesting these often do not work out well for shareholders.
It certainly has caused me to reconsider my position here; however, I am inclined to stick to my guns and ask if the reasons for investing still hold true, and I find that they are. I am unaware of any company producing 150,000oz pa with a market cap comparable to that of YNG.
Just about every company I have seen with that level of production and with comparable reserves is valued over $1 billion. Whether that equates to a share price of $1 or $10 after a 10:1 reverse split still represents significant upside from the current share price, and that's a very conservative target in light of potential to ramp up to 300,000oz pa, not to mention their other assets (e.g. ore roaster itself thought to be worth $500m to $1billion) and future strategic potential (e.g. orphan ore processing, ketza spin-off, etc.).
So I remain in, holding and topping up on dips. Whatever the market wants to do, it will eventually have to contend with the revenues and the fact that the turnaround is completed and the Company considerably de-risked. It will also set the stage for a potential take-over, and at these prices it's a genuine no-brainer for majors in the region who could easily net over $6 billion from orphan-ore in the region if they acquired the plant.