John EmbryQueenstake Resources (merged to Yukon-Nevada Gold)QRL.TOWATCHMar 10, 2005
Currently the bane of his existance. Have apparently run out of money. CEO had heart attack and resigned. Replacement guy might just as competent (!?) if not more so. Are attemptting refinancing. If gold goes up $100 in the next year (he expects it to) this company could be seen in a totally different light.
Merging with YGC Resources (YGC-T), which has an interesting exploration project in the Yukon. They're old mine in Nevada has been very troubled and expect it will be shut once the merger is completed.
You could see quite a bit of value coming out of this, but it may take some time. Had a lot of operating difficulties with their Jarret Canyon mine and haven't been able to generate enough cash to fund exploration. Cutting back considerably on production and will be cash flow neutral at best.
Merging with YGC Resources (YGC-T). This has been a very disappointing stock. They couldn't operate their mine successfully. Great land package. Wouldn't buy at this time until you see what happens.
Has a lot of problems. Working on the Jarret canyon deposit, which is a complex of deposits in Nevada. Trying to reduce cash costs, but it has gone up to $640 and ounce.
Owns 20% of company. They have had decent results. Believes that gold will go higher. He has no intention of selling the stock and believes that it go to $1.00.
Operates a gold mine in Nevada and if there is a decline in the US$, this company will give you leverage. Their negative is that they have a very hungry mill with limited gold to feed it with.
Only has a 4/5 year mine life. You can make a case that at this gold price it could pay you back your original investment and give a marginal return on it. That's not enough to get the gold industry excited.
The only thing that will get this company going is a higher gold price or they get some good quarters under their belt. It will likely languish until they return to a higher profitability.
The stock to own if his much higher gold price prediction is correct. Producing a lot of ounces and are a fairly high cost operation in Nevada. They'll make a lot of money in higher gold prices.
Bought a fairly large mine which has a hungry mill. Keeping feed in front of it has been a problem. Newmount made an agreement to truck ore to the mill. This gives them a lot more flexibility. Prefers exploration companies instead.
Newmont Mining (NMC-T) has come in which is very positive in that it will help with their milling costs. Feels they will move into a positive cash flow basis. Also, they now have money to explore.