Swizzled Posted January 21, 2011 Share Posted January 21, 2011 I've seen quite a few good write-ups on this company. I suspect more than one reader of this board will be an owner. As the share price has come back down I am interested, but need some help understanding why I should believe projected step changes in production levels are achievable. They look great when crunching numbers, but tripling output in a couple of years generally is hard to do and very expensive. I've linked some of the articles here: http://valueinvestorcanada.blogspot.com/search/label/YNG Any discussion would be appreciated. Really trying to understand why the company so easily can get to 150,000 ounces per year to 450,000. Thanks Link to comment Share on other sites More sharing options...
merkhet Posted January 21, 2011 Share Posted January 21, 2011 Essentially, Yukon-Nevada has a great strategic position in Nevada as the owner of one of the only three allowed roasting facilities in the state. The company can source 150,000 ounces/year based off mining and their own stockpiles. Additionally, the move up to 250,000 ounces/year is based on sourcing additional ore from Newmont mining whose roaster in Nevada is running at capacity. (According to a presentation from Baldock a week or two ago, they should be signing a long-term contract and disclosing the full terms of the deal in February or so.) I think the company is using the additional sourcing of ore as a way to keep the roaster at capacity while they restart their other mine in Nevada and while they restart the mine in the Yukon. Once those two are online, I think that their own mining should be at around 200,000 ounces while they will continue to source around 200,000 ounces of ore from Newmont and/or Barrick. (Both companies have immense stockpiles of ore in Nevada.) That's the path to 400,000 ounces. There are additional plans past the 400,000 ounces stage that require some strategic M&A of what Baldock calls orphaned ore and the construction of a concentrator to optimize the output from the roaster. At the end of the day, the reason why the company believes it can get to such a high output is because they have roasting capacity of 6,000 tons per day at their disposal for "dry ore" and I believe another 5,000 tons per day of capacity for "wet ore." (I think that's in the Hallgarten report.) I think they're currently only using the "dry" line at around 3,500 tons per day including the purchased Newmont ore. Link to comment Share on other sites More sharing options...
Guest broxburnboy Posted January 21, 2011 Share Posted January 21, 2011 I usually start my due diligence of a small cap name at stockchase.com, a site which records various experts opinions on a wide variety of names: http://stockchase.com/Company-sl--slq-ID-slv-Yukon-Nevada--Gold--Corp..php In this case the "experts" who have commented on YNG are very well respected - Oliver from Sprott, Cohen from Dynamic Funds and VanEeden are all in the first tier of analysts. Given their comments, I would probably proceed no further with this one...unless new knowledge overules their comments (which are dated). Link to comment Share on other sites More sharing options...
merkhet Posted January 21, 2011 Share Posted January 21, 2011 In this case the "experts" who have commented on YNG are very well respected - Oliver from Sprott, Cohen from Dynamic Funds and VanEeden are all in the first tier of analysts. Given their comments, I would probably proceed no further with this one...unless new knowledge overules their comments (which are dated). I'm a little surprised to see that Oliver has a don't buy on the company as of 11/2010 considering Sprott increased their holdings in Yukon-Nevada to 19.9% in 10/2010. Link to comment Share on other sites More sharing options...
Swizzled Posted January 24, 2011 Author Share Posted January 24, 2011 Of course they do something nice before I get comfortable enough to buy any: http://valueinvestorcanada.blogspot.com/2011/01/yukon-nevada-strikesgold.html Link to comment Share on other sites More sharing options...
merkhet Posted January 24, 2011 Share Posted January 24, 2011 We've still got a few more catalysts left for the company: 1Q 2010 - The definitive terms for the Newmont ore purchasing deal. 2Q 2010 - The update of their NI 43-101 resource estimates at the 3-year average gold price of $1,000 vs. their current NI 43-101 resource estimates at around $580. I'm guessing we'll also get some additional institutional coverage at some point during the year. Link to comment Share on other sites More sharing options...
OracleofCarolina Posted June 11, 2014 Share Posted June 11, 2014 Did they go bankrupt this week? Link to comment Share on other sites More sharing options...
eclecticvalue Posted June 11, 2014 Share Posted June 11, 2014 Did they go bankrupt this week? Yes they did, the name was veris gold. http://www.bloomberg.com/news/2014-06-09/veris-gold-files-nevada-bankruptcy-to-shield-u-s-assets.html Link to comment Share on other sites More sharing options...
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