How Mr GRP made his money on YNGThe story is very straightforward, based on his posts
He bought two years ago when YNG was teetering on bankruptcy, likely under 5 cents a share - if you believe he is up 20 fold
Why was it teetering on bankruptcy? Management never delivered on blue-sky promises, lost money when they operated and even more when they were shut down, to the point they were down to their last few dollars - late 2008.
Of course the market was not stupid and punished the stock, (is this an example of the efficient market hypothesis?), down to around 3 cents.
They got a bailout from euro investors who bought almost half of YNG for , who also got millions of warrants.
Now they continue to make outrageous promises that they clearly can't deliver on. They tend to do that when they have money in the bank after a fresh round of financing and dilution.
HOW CAN YOU PRODUCE 150,000 OUNCES PER YEAR (PROMISE 1) AT $1,300 GOLD PRICES AT A COST OF $565 AN OUNCE (PROMISE 2) AND NEED MONEY??????????????
The good news is, if they run out of cash again, you may be able to buy again under 10 cents.