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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (81503)	6/7/2000 12:28:00 PM
From: Earlie	Respond to of 132070

Ike: Varied opinions are what make markets. As noted in the past, I'm there for the gold deposit. My view was and remains, that when gold takes off, the company will be grabbed by one of the big guys for its reserves, irrespective of its location. It is cheap insurance against currency flops from my point of view. Unfortunately, having done an excellent job of finding and developing one of the largest gold deposits in the Western hemisphere, and having done this under rather trying circumstances, the company has seen its market value fall even as the gold reserve expanded. Management has been under tremendous pressure to "do something" so they tried. Maybe they should have told their shareholders to take a flying leap and/or have patience, but they didn't. I'm also sure that they were getting a bit tired of watching a much larger gold company quietly accumulate their stock at relatively low prices. To their credit, they pulled the plug on this deal when they became disenchanted, not with their Chinese partners-to-be, but with their new debt holders. I've known Dave Rovig (CEO) and his gang for well over a decade and he is a superb mining engineer. The proof of this is to be found in his track record (two big deposits found in succession and others of merit before that). He is the antithesis of a promoter, preferring to let his discoveries speak of his skills. Unfortunately, gold has not yet shaken off the machinations of the central bankers, so his work to this point in time has not been appreciated by the markets. Dave worked both diligently and intelligently and in the process more than met his shareholders" original objectives. He delivered in spades. While I am patient and would have been quite content to wait until gold has its day, I don't blame the guys in the company for getting tired of being sold at $3. to $4 per ounce. Having done a bit of due diligence on the Asian partners, it appeared to me that the company was endeavouring to go to bed with creditable and experienced Asian players. As the gold deposit remained, and there was a shot at a new venture, I was (and remain) content to stay. The gold is still there, so I will hang around a bit yet and see what happens next. Best, Earlie