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Yukon Nevada Gold Corp T.YNG



TSX:YNG - Post by User

Comment by Combo9on Aug 14, 2012 5:17pm
175 Views
Post# 20217283

RE: RE: RE: Stock cheap

RE: RE: RE: Stock cheap

Would have been happy to hold for a couple of years if I felt the business was financially secure. To clarify, in H1 2012 we had two loss making quarters and that's largely due to the gold forward purchase agreement meaning 11,950 oz of gold production was delivered to debtees.  In H2 2012, 37,979 oz are due for delivery to debtees.  Even taking into account increased production, it seems inevitable that the net loss is going to get worse before it gets better.

YNG informed us that further financing will be announced soon.  I also suspect they won't be able to deliver all those ounces due in the next few months (especially the 23,869 oz due in Q4) and will be forced to rollover (which usually incurs a penalty requiring them to deliver even more oz at a future date).

Once all this gold is paid back -- currently about 210,859 oz between 2012 and 2015 -- things will look much better (assuming no takeover before then).

all imho

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