Yukon-Nevada Gold – Coverage Update

YNG Hall Gar Ten and Company Oct11

24 Comments to Yukon-Nevada Gold – Coverage Update

  1. jjw's Gravatar jjw
    October 11, 2011 at 9:31 am | Permalink

    Brutal day for MMY stock. Wonder why they aren’t funding through operations?

    • October 11, 2011 at 10:11 am | Permalink

      I am very surprised that they are issuing shares for the acquisition. I’ll find out the rationale behind it.

  2. jack's Gravatar jack
    October 11, 2011 at 9:46 am | Permalink

    I appreciate the update and had one quick question for you. Were you aware of the possibility of a spinoff? What are your thoughts on this idea? Also, do you know if yngff holders would receive the same shares in the spin as the ones who invest through the Canadian exchange? I guess that was more than one question. Thanks and keep up with great work with the blog.

  3. October 11, 2011 at 10:14 am | Permalink

    Yes I was aware of the spinoff but I am not sure if it will actually happen. They kind of talked about it before and then weren’t too excited about it anymore. It would be nice for us if they got rid of it. I can’t imagine yngff holders not receiving the same shares in the spin off but I’ll need to find out for sure.

  4. Flip's Gravatar Flip
    October 11, 2011 at 11:10 am | Permalink

    http://www.miningweekly.com/print-version/monument-to-decide-by-2013-on-new-malaysian-mine-2011-08-15

    A bit cokcy….”“I expect none of them will send their dividend cheques back,” Baldock quipped.”

    Mariusz, do you have any idea why they don’t just to a regular rights offering instead of diluting the common shareholders
    tks

  5. AR's Gravatar AR
    October 11, 2011 at 11:32 am | Permalink

    MMY’s announced private placement is incomprehensible. This is a huge strike against Baldock and the inept board of directors. Throw some of those geologists off the board and put a couple of people on there who know freshman finance and decent corporate governance. Terrible deal for existing shareholders…a classic example of increasing the size of the empire at the expense of the citizenry.

    Mariusz, I cannot imagine that they have a shareholder friendly explanation for this. If you find out something to the contrary please share. I plan on contacting the company but am letting my temperature cool off first. I know a couple of other funds who are invested in this name and based on my brief comments with them this morning, they are hot as well. I can’t believe that they aren’t putting this to shareholder vote unless it’s required by the exchange. Baldock needs to align the company’s interests with those of shareholders asap or he — with his insignificant ownership — is liable to have a mutiny on his hands.

  6. aagold's Gravatar aagold
    October 11, 2011 at 3:38 pm | Permalink

    Mariusz,

    I know I promised not to bombard you with questions anymore… but this really got my attention since I’m a YNG shareholder. If Baldock was willing to do this to MMY shareholders, what’s to stop him from doing something like this to YNG shareholders? I’d really like to understand better how corporate governance works on these TSX-Venture listed companies. Do shareholders somehow have less protection against dilution (i.e., no shareholder vote unless “required by the exchange”… what did that mean) ? Or maybe it’s just a matter of who controls the board of directors. If MMY’s board is controlled by company executives who will later be granted new stock options to compensate for the dilution, it’s pretty obvious why they would use that route to fund the acquisition of new assets.

    • October 11, 2011 at 5:34 pm | Permalink

      I really cannot assure you of anything. I am looking at probabilities and I am shocked to see this on Monument even though the probability of this happening to this level was low. They are sitting on lots of cash and they are still trying to issue so many shares. I think the acquisition of the new property is good but the financing route is terrible. Now you are asking me if he will do the same thing with Yukon. How can I answer this with certainty?

  7. jjw's Gravatar jjw
    October 13, 2011 at 11:05 am | Permalink

    Mariusz,

    I would love to see an article on your updated thoughts re: mmy.

    As an aside, I really wish management would put out a piece showing a realistic vision for the future of the company, how they plan to achieve their goals, etc. Press releases that don’t explain how their actions (like their most recent one) fit their long term plan add a big question mark around the quality of management and their ability to work in shareholders’ interest.

    jjw

    • October 13, 2011 at 11:19 am | Permalink

      I was going to write an update on Monument but I didn’t because I don’t know enough at this point. So far I realize that the management’s actions hurt the stock in the short term but might actually be beneficial in the long term. But I don’t even know what the long term is. Bob is coming from Malaysia on October 17. I don’t see how I will be able to talk to him before this. I might talk to Richard after he comes back from Slovenia but he doesn’t know as much as Bob.

  8. EA's Gravatar EA
    October 13, 2011 at 12:54 pm | Permalink

    Mariusz,
    I thought this might be of interest to you. I contacted Wolfgang Seybold, the European responsible for MMY investor relations. He is also not able to further explain why this financing strategy was favored by MMY – at least not by today. He seems to be working on the issue too.

  9. October 13, 2011 at 2:01 pm | Permalink

    I live in NW Washington state, less than an hours drive from MMY’s offices in Vancouver BC. I am a small fund manager and MMY shareholder and would be more than happy to meet with them in person. I will fax them a letter today requesting to do so (although I am out of town from Oct 16-20).
    Attached is a link to a brief article I wrote in MMY for the Value Investing Letter
    http://valueinvestingletter.com/taking-advantage-of-mr.-market.html

  10. Filipe's Gravatar Filipe
    October 17, 2011 at 6:37 am | Permalink

    I emailed the Americas Investor relations, Richard Cushing, last week regarding this and he told me that he did not have additional info on the financing, but that he would talk to me today, when he got back to the office.

    Tim, can you share any useful info that you get from the meeting? tks

    Filipe

  11. EA's Gravatar EA
    October 17, 2011 at 8:54 am | Permalink

    Mariusz,
    On another note. Did you happen to hear anything regarding the status of the winterization project at YNG? Is it finished? I am getting a bad feeling here too, since there was no official communication so far – at least as much as I know.
    Thanks

    • October 18, 2011 at 4:14 pm | Permalink

      So I met with Richard from Yukon today. He was doing a presentation in Chicago. This was nothing new to me but it was mainly for the new potential investors in the room. I asked about the status of winterization and he confirmed that they are waiting for some equipment to arrive. They expect that it will be finished first week of November.

      I will say that it will be done by the last week of December considering everything always takes three times as long.

  12. October 17, 2011 at 10:30 pm | Permalink

    I heard that they are waiting for some equipment to arrive. Tomorrow the investor relations guys from Yukon is coming to Chicago for a presentation. I will be attending it so I will ask about the progress.

  13. bob's Gravatar bob
    October 18, 2011 at 10:02 am | Permalink

    hi mariusz-

    what are your thoughts on idt after the last quarter numbers? thanks much in advance.

  14. EA's Gravatar EA
    October 20, 2011 at 6:18 am | Permalink

    Just in case others have no seen it yet. I just became aware of the following video-interview with Bob Baldock made on Sep. 29th 2011 at the 11th IRC Investor Relations Conference in Zurich. It’s posted on a German web site. But the interview is in English.
    http://www.goldinvest.de/index.php/monument-mining-wir-sind-der-goldproduzent-mit-den-niedrigsten-kosten-in-malaysia-22531

  15. EA's Gravatar EA
    October 24, 2011 at 2:25 am | Permalink

    Another interview with Bob Baldock. Again made at the 11th IRC Investor Relations Conference in Zurich. But this time about YNG.
    http://www.goldinvest.de/index.php/yukon-nevada-gold-wir-planen-unsere-cashkosten-auf-500-bis-600-usd-pro-unze-zu-senken-22561

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