Anyone interested:
It's just after five on Sunday morning. Another sleepless night. Hammered by The Market as never before. I'm sure there are many out there shaking their heads in disbelief. Many others reminding us all how they predicted this. And what incompetent or misleading or awful people we are. Well, many seem to be right in their judgements, many wrong. For me, it's probably both. And it hardly matters that we are in such good company. Of course, The Market is, by definition, always right: a reflection of people's hopes and fears.
At Yamana, over recent months, we've been wrestling with the perennial challenge of doing the work in the field, exploring the best targets, and watching spending, looking for ways to cut. In some ways, both have been successful and both, at least by The Market's judgement, fall short. The biggest drain in recent months has been PNG, where taking over the operation has forced us to spend a great deal more quickly than we had planned. Essentially, that project has taken three years of a planned four-year investment, in a single year. The results we've gathered in recent weeks have been promising and we're heading towards being able to substantially expand the resource... but it doesn't matter. Next releasable results are expected in January.
In Indonesia, as we've said before, we're looking at very strong silver assays with good gold, but now the Mines Department has changed it's tune and it doesn't appear the COWs will be signed in 1997 as they had told us they would. (Some other companies have even "announced" the COWs would be signed this month.) Barrick remains very happy with what we have done and with what we are accomplishing technically. But none of us knows when the COWs will be signed, so it doesn't matter what we have found.
JV's? Nothing has changed, for better or worse. We are still in discussions with potential partners on seven projects: Fin del Mundo, Santa Cruz Vanguardia, El Indio, Northern Porphyry Copper Belt, Palmer Mountain, Paraguay and Wanachee. We had expected something sooner and remain confident one or two will come to fruition in the coming weeks but at the moment, it doesn't matter.
While The Market continues to see this as a gold company, we're looking about equally for each of gold, silver and other metals. But it doesn't matter.
As an exploration company, we've always believed that you have to explore to stay in business. That has meant spending money on your best targets. Doing the work that's technically called for. Now, it seems, that idea has been stood on its head because the results that mattered a year ago, don't matter at all today. So, we're cutting way, way back. Significant lay-offs, salary cuts across the board, programs standing down. The plan is to ensure that we have enough to get us through another year. Despite what some out there have said, the target's definitely a reasonable one.
Beyond the gold price, another trend that disturbs me is the recent string of press releases from companies that look more like begging than news. And then there is the news of scams or scandals that keeps peppering the industry. It is all, very, very painful. For us and for those of you who have hoped (expected?) and lost.
Whatever happens in this market, there are a lot of people fighting to see this company's fortunes turned around. A lot of people still determined to make it work. (No, I haven't sold any shares. Nor has anyone senior here.)
Personally, I think we'll pull it off. In the meantime, if there is anyone out there, if you have any questions rising above the shock, I'm here.
Greg |
