YNG: Hits 102K steady state, on track for 150K
YNG announced they have hit a steady state of 102K of production and are in the process to hit the 150K of production.
Chief Operating Officer Graham Dickson confirmed that “subsequent to re-start, the company has produced for the month of July a total of 8,500 ounces of gold with part of the tertiary crusher line down, under less than optimum operating conditions. It is confidently expected that a rate of 12,500 ounces of gold per month is more than sustainable on an ongoing basis”.
At 102K ounces of gold per year we are looking at close to $40-50M of FCF ($500 x 102k minus some CapEx and SG&A) per year. For a company to be trading at a market cap of 250M, it is extremely cheap valuations. We just have to wait for the market to start realizing the disconnect. (My expected cash flow is extremely conservative as I use $1,000 for gold price and $500 for cost of production. The current market price for gold is much higher).