on its price and closed at $0.570 per share. The most shocking fact here was that the volume of YNGFF jumped to over 2 million shares for the day, which is a huge gain for the stock.It seems that investors got attracted by YNGFF, but what’s behind the story? The only reasonable explanation on the stock move appears to be the news on Yukon’s website. Over the last weeks, the company has published a series of positive announcements on its business and grabbed the traders.[BANNER]
The latest press release of YNGFF was on the positive results from its restarted and on-going 2010 drilling program at Ketza River. According to the announcement, the project has started two years ago but “it did not contain significant gold in either drill hole”. It looks like now Yukon relies on diamond drill holes hoping for positive results.
Yukon-Nevada Gold Corp. is a North American gold producer in the business of discovering, developing and operating gold deposits. Historical records show that the company has traded lower over the past 6 months, while currently, the stock is moving up. But still it’s too soon for any conclusions to be made.
This month, Yukon reported improvement in its second quarter results, though the company still has a net loss of approximately $5 million. In May, YNGFF shutdown the mill at Jerritt Canyon and it hasn’t covered all the expenses yet. The company has registered more assets than liabilities, though its working capital deficiency totaled $32.7 million.
According to its financial report, there’s a going concern for the company’s business and it needs additional financing for its operations. As Yukon claims: “If the Company is unable to generate positive cash flows or obtain adequate financing, the Company will need to further curtail operations and exploration activities”.
