Yukon-Nevada Gold Corp. (TSX:YNG) of Vancouver reported financial results August 10.
The company lost $8.3 million on revenues of $36.386 million during the three months ending June 20, compared to net income of $22.9 million on revenues of $28.258 million during the same period in 2011.
The loss for the first six months of 2012 was $16.158 million, compared to net income of $53.017 million during the first six months of 2011.
It main operations are in Jerritt Canyon, Nevada, where the company has a milling facility and two underground mines, the Smith and the SSX. It also holds properties in British Columbia and the Yukon Territory, including the former Ketza River mine, which produced gold in the past and where Yukon-Nevada Gold drilled 26 holes last year.
Its co-CEOs since June have been Shaun Heinrichs (the chief financial officer and Randall Reichert (the chief operating officer), who were appointed to their current roles after Robert F. Baldock resigned as CEO.
Reichert, who has a degree in mining engineering from the University of British Columbia and a masters in rock mechanics from Queens University, has worked for Bema Gold and Teck-Cominco.
Yukon-Nevada Gold's share price closed at 28.5 cents Friday, August 10. It closed at 50 cents September 16, 2011.
During the 3 months ending June 30, the firm produced 154,893 tons from mining operations at Jerritt Canyon, up from 74,534 tons during the previous quarter.
Yukon-Nevada Gold reported cash and cash equivalents of $4.3 million on its balance sheet as of June 30, and a working capital deficiency of $60.1 million.
In its management discussion and analysis posted to SEDAR, the firm says: "The cash on hand at June 30, 2012 will only be sufficient to maintain the ongoing operations if operations can continue to generative positive cash flows. The low cash balance stems from the heavy capital investment that was made in the first quarter and the follow on slower than expected ramp up that was experienced.
Capital expenditures year to date in 2012 were $22.198 million, including $15.468 million in mill and equipment at Jerritt Canyon.
However, the total cash flow was positive $4.3 million; cash generated by financing activities was $14.781 million.
In May, the firm raised $9.1 through a private placement of 39.1 million units, consisting of one common share and one purchase warrant. The following month, it raised $5.9 million by issuing convertible debentures.
In the MD&A, the firm states: “Management believes that further financing can be obtained in order to ensure that full steady state mining operations are maintained, which will ultimately provide ongoing positive cash flows. At period-end management was pursuing further financing to supplement cashflow from operations and meet its capital commitments."
After the end of the June 30 period, the firm noted that on July 20, it issued convertible debentures for a principal amount of $4 million, bearing an interest rate of 11 per cent, maturing 42 months from the closing date.
Accounts receivables were $9.719 million as of June 30, property, plant and equipment was $253.086 million and total assets were $346.9 million.
Current liabilities were $88 million and total liabilities were $261.3 million.
Analysts covering the firm include Christopher Ecclestone of Hallgarten & Co., and Edison Investment Research analysts Charles Gibson and Tom Hayes.
No comments:
Post a Comment