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11/25/13

(no)Ryan(no)Gold (RYG.v) files its quarter...and for once it's an interesting filing

The noRyan noGold (RYG.v) 3q13 financials and MD&A are on SEDAR already and main points are covered by the accompanying NR. Here's a thought or three on the company:

  • Cash held is $20m. Working capital almost exactly the same, due to lack of liabilities.
  • RYG was set up to explore the Yukon (all that Ryan fame thingy, remember?). 
  • It's worked out that the Yukon is a bust and it's done so before going through all its cash. That takes a bit of pride-swallowing by a company (and it helps that the original team are long gone) but all the same, it should be applauded as the smart move
  • Therefore we can expect it to sip at its cash pile until an opportunity comes along.
  • RYG.v currently has 117.14m shares out. All options and warrants are miles out the money, so they don't count.
  • At its close tonight of 11c, that gives RYG.v a market cap of $12.54m

In other words, you have $20m in cash that's now on sale for $12.5m. You also get a free option on bunch of written-down exploration properties that might one day (choose your own decade) be worth something, though that isn't the reason to like RYG here. It's the cash, people. Cold. Hard. Cash. That thing all those juniors out there are desperate to get hands on. 

Two conclusions to this little post:

1) noRyan noGold's admission of failure in the Yukon will likely see the stock rally tomorrow morning, nature abhorring a vacuum and all that.
2) This is exactly the sort of thing that happens at market bottoms.



Disclosure: No position in RYG. Yet.