there's a couple things i think will help this company move.
past history - if you look at the gold production from jerritt canyon, it was producing less gold from 2004 - 2009 and the price was around $1-1.50 up to 2008.. the PPS dropped as investors realized the company was going south up until new management stepped in..
currently - from 2009 to present, new management has done a great job of not only updating their equipment and getting ore to decrease processing cost.. they raised funds to winterized their most important/valuable facility (jerritt canyon) but they done it in a way to limit debt.. also, they have 1 of 3 roasters in the nevada region which is great for them. the roaster is worth about billion dollars..
moving forward - i copied/pasted info from artical which i believe is very true..
Assuming that Yukon-Nevada achieves a production goal of 300,000 ounces of gold by the beginning of 2013, it will be set to generate more than $216 million in opearing income. Applying a conservative multiple of 7 gets you to $1.50 per share, which is a five bagger from now.
Risks
I believe that the majority of risk has been lifted after the company raised $179 million from Deutsche Bank for the winterization and refurbishment of the facility. Obviously, there still remains more execution risk. However, Yukon-Nevada’s problems came from the malfunctioning plant, not from metallurgy or a lack of resources in the ground. Malfunctioning plant is fixable with money. There also is a risk that the money raised will not be enough. Considering that they are almost done, I doubt that they will need to raise more money for the winterization and refurbishment of the plant. But if they do, it shouldn’t be much.
Also, another risk is the price of gold. I can’t really help you here. If you think that the price of gold is about to crash, then you should obviously stay away from this company.
I think that the biggest risk of all is other investors. So far, they have acted impatiently and as if they know very little about the company. There is nothing that will stop them from continuing to act foolishly. Therefore, if you choose to invest in this company, just know that you will need to buckle up or you will be thrown off the horse by the insane volatility created by other investors.