stockman,
BYG needs money, buying existing shares does not put money into the treasury. Also the shares are presently worth between a nickel and nothing, and I would venture that nothing is the more realistic number.
BYG is not considered a good corporate citizen in the Yukon. They did a very poor job of managing the environmental situation with the authorities. Although I know of no reason to deny a mining permit for the Flex Zone, it will not be granted just because Mr. Chafee has money and power. The fact that no mining permit exists should be the real worry. Time is running out for the Brown McDade deposit.
The thing that I find odd about this whole situation, is that Mr. Chafee could easily bankrupt BYG by not providing the funds to keep it alive. He could then buy all or part of the assets, from a bankruptcy trustee, and own 100% of them for a lot less than he will have to fork out for mere control. I don't think he would be involved in a bidding war with anyone.
As far as operating at capacity, the mill has been and clearly the improvements made to it would help the bottom line. The problem is the cost of extracting the ore and getting it to the mill. Those costs, preproduction and ongoing, are going to be much higher than they were in the past.
I wish I could provide more positive input about the company, but in all the analysis that I have done I cannot find anything that would lead me to believe that this co. is a buy. Rather it is a screaming short.
Sincerely,
Al Cern |
