A note for tomorrow:The medium to longer term fundamentals of...

A note for tomorrow:



The medium to longer term fundamentals of YTC has led me to take a position - with the view that it's worth multiples of the current share price.

YTC has today demonstrated the robustness of its Hera Project in WA to attract capital.

Complete capital expenditure to get the Hera Project into production is circa $60 million ($25 million pre production and $35 million process and infrastructure capital).

YTC plans to produce 50,000 Au/Eq ounces per annum, from high grade or at 7 g/t Au/Eq (350,000 tpa for 50,000 oz).

The company indicates an operating margin of $98 per tonne. (350,000 tpa x $98 = $34,300,000 annual cashflow)

These figures are derived from the company presentation on 20 October 2010.

The company is currently valued at $58 million and has $15 million in cash.

The project has a fifteen year mine life at least - based on current resources.

Also of note: In the same publication mentioned above, YTC uses gold priced at $US 1125 per ounce, and copper at US$ 6500 per tonne.

If the company's cashflow figure ($98 per tonne), was based on todays metal prices, margins would be closer to $350 per tonne.

No need to sell this story; it will sell itself.