Michael:
You ask a very fair question to which, given your criteria, I cannot provide a truly satisfying answer.
Speaking for myself, I have not bought any more Yamana shares no matter what the price. The reason has nothing to do with the value of the shares or their potential. I have not bought any shares in any company for some time now. Almost everything I have is already in this company and I do not regret it. I have left the top IR firm in Canada where I worked with more than 20 mining companies plus as many companies from other sectors to raise more than $3.5 billion over a three year period. I sold my house and moved my wife -- along with her business -- and two teenagers, and bought a home in Spokane. This decision, this commitment, is based on my knowledge and instincts about Yamana, its management, its board and its properties. I have a significant option position at $3.10 and I believe we will see that level soon, with much better to come. My wife has also bought shares, moving the bulk of her investments into Yamana.
If I had $100,000 to invest anywhere right now, I would put all of it on Yamana shares, averaging down our position. I know that sort of statement may even seem to underscore your point, but it is true. Beyond the things that brought me here a year ago, I make this statement based on the drill and field results we are seeing from Papua New Guinea; the field results and the assessment of our COO coming back from Indonesia; the drill results from Santa Cruz, Vanguardia; the drill results from Tierra del Fuego, Argentina; float, stream sediment and auger results from Paraguay; drill results from Washington state; geophysical and geochem test results from the Northern Porphyry Belt of Chile; and, field results from Tierra del Fuego and the El Indio Belt in Chile.
We are drilling. We are exploring. We are looking at undervalued situations. We have cash and are spending it on finding a deposit. We are communicating our story. We have excellent partners in Barrick Gold, Westmin, Northern Orion and Union Mining. We are looking for more partners for Santa Cruz, Vanguardia, the Northern Porphyry Belt and other projects and we are in discussions with several companies, (including one who is interested in both Santa Cruz and northern Chile.)
The greatest unknown at this point is the market. I believe that it will turn around in the fall. Why? Someone will make a major discovery. The Indonesian political situation will settle down. Copper and/or zinc and/or silver prices will improve. The supply/demand ratio will shift. Greed will seek its reward.
I don't know of many people who predicted Bre-X and its fall-out but we are all paying dearly for that travesty. Now Rio Algom's decision has hurt us more. But we will recover, either by getting a new partner or by finding more ourselves. We've got a job to do and we are doing it. Given the market, losing faith makes sense . I understand completely that people are looking for reassurance. All I can say is that I am assured.
For what it's worth.
Greg |
