Yamana Resources INC. T- YRI Message Board

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Gold/Mining/Energy : Yamana Resources INC. T- YRI

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To: Tupulak who wrote (1992)	2/3/1999 1:03:00 PM
From: Elizabeth Andrews	Read Replies (2) of 2346

Curtis, I think you're looking at the trees and missing the forest, so to speak. In my view, the market is saying two things. First, the properties drilled and the results to date are sub-economic at today's metal prices or the resource is not big enough to support the required capital and infrastructure. Second, the business plan is now of concern to prudent speculators. For the 9 months ended Nov/98 the company burned $2.33 million of cash. ($780k/mon) The burn rate for the first 9 months of 1998 is about $630k per month. The balance sheet suggests that the company has working capital of $4.4 million which means it has about 7 months of cash. We are already into the 3rd month of that period so they could be down to 4 months cash. The business plan, remember, calls for them to drill holes on their own properties. This is expensive and risky. If they don't get better results how do they replace the cash? And, at what price? If they stop exploring, doesn't the discovery leverage dissipate? I just don't see the assets supporting the current market cap. I agree, it's not dead but it is buried in my opinion.

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