Winter in the Great White North Message Board

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Strategies & Market Trends : Winter in the Great White North

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To: marcos who wrote (5090)	9/20/2003 1:16:59 AM
From: Dave R. Webb	Read Replies (2) of 8273

A producer or explorer. The exit strategy. Wow, this will take some time to word properly. We've seen several cycles now and had some time to think this one through. Lets say for now, that I believe that the "grow big and get bought out" option for the junior, the "Diamondfields or Arequipa option) while still valid, is going to face a competing and lucrative option, the consolidation of the junior producers. The best example of the consolidation option that I can see right now is Weaton River. There are others. This dramatic shift has come about because of the dynamics of exploration. The financial wasteland of the late 1990's that the explorers are coming out of is unusual. Combine that with the dependence on junior explorers that the senior producers have shown, and the current paucity of competition for venture capital (it was really tough competing with the dot coms for risk capital) and we have the near perfect storm. I see tremendous value in an independent junior explorer developer producer, provided they continue to grow. There's several ways to grow, but the acquisition of cheap resources with proven expansion possibilities is one way. I'll provide more details later. Dave

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