Wheaton River Minerals (WRM Toronto) Message Board

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Gold/Mining/Energy : Wheaton River Minerals (WRM Toronto)

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To: mr. ed who wrote (239)	1/19/2000 9:16:00 PM
From: Steve Johnston	Read Replies (3) of 350

The debt trap could occur if management goes ahead and borrows (as they have publicly stated they would) the $US40 million plus to build Bellavista into a producing mine. The risk would be that cash flow from the Golden Bear would dry up before Bellavista gets on stream, meaning Wheaton could wind up in a position of default, and the lenders would come in, just like Greenstone, and several other recent gold mining disasters. I maintain that Wheaton should option out part of Bellavista, a more conservative option that would (yes) mean giving away some of the future upside, and continue to use surplus cash to buy up additional undervalued properties to add to their portfolio of assets . Regards.

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