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I attended the AGM today in Toronto. Generally speaking, the presentations were upbeat, and the questions rather tame. I added a bit of life by voting against the stock option plan, as I was getting somewhat bored. Looks like mining at the Golden Bear may commence early this year, resulting in increased production/cash flows versus estimates. Bella Vista production is possible in 2001, and will take over from the Golden Bear, which will be essentially depleted in a couple of years. No further exploration work is planned at the Golden Bear, and the Grizzly deposit is deemed to be uneconomical. As well, Kinross is undertaking an aggressive drilling program at Georges Lake (Kit's property) this year. My take was that the Management's near term focus will be on using available cash, and cash flows, to get current properties into production, rather than conducting new exploration. The implication was that any new acquisition would be handled similar to Kit Resources; i.e. a merger with some beaten up junior causing little dilution, but adding new, high probability, cheap ounces, in the process. In short, I was pleased with what I heard, and I personally urged them to "stay the course". Regards. |
