YNG: Steady state production and cash flow positive
It has been a very long time since the company said it has reached steady state production. I initially bought my stake in YNG in late 2010. A few weeks after I bought my shares, YNG reported it had reached a steady state of production. Since then the company has run into many problems related to production and capital.
Today the company reported that it has been running at steady state production for over a month. This is a huge step in the company’s turnaround. Reaching steady state and cash flow positive is a vindication to the management team and their belief on the assets at YNG. The market is still extremely undervaluing YNG, with a market cap of a mere 350M. If the company can keep production running at current levels, the market will believe in the company and the correct this valuation gap.
Great job by management at working through all the problems.