Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : A to Z Junior Mining Research Site -- Ignore unavailable to you. Want to Upgrade?

To: IngotWeTrust who wrote (995)	8/19/2002 11:53:56 AM
From: 4figureau	Respond to of 5423

Giustra has joined up with Endeavour Financial and brought over a couple of the old Yorkton boys like Doug Leishman: >>FRANK GIUSTRA SAYS THE YELLOW METAL IS HIS NEW PASSION By PETER KENNEDY Wednesday, May 8, 2002 VANCOUVER -- Almost six years after he quit the brokerage business to launch his own film production company, Lions Gate Entertainment Corp., Frank Giustra is again busy reinventing himself, this time as a committed gold bug. During a rare interview in a plush Vancouver office that is home to his new mining investment firm, Endeavour Financial Corp., the 43-year-old former Yorkton Securities Inc. chairman said gold is the new passion in his life. "What I'm very passionate about is my belief that we are at the beginnings of a sustainable bull market in gold," said Mr. Giustra, who is convinced that the yellow metal will benefit as declining equity values in North America and low interest rates start to erode the value of the U.S. dollar. Having reached that conclusion, he recently acquired a one-third interest in Endeavour Financial, a private company set up to acquire interests in small mining companies that could benefit from higher gold prices. Endeavour's investments include a 10-per-cent stake in Wheaton River Minerals Ltd., which made headlines last week by announcing plans to acquire a large gold and silver mine in Mexico for about $120-million. In a bid to seek out other opportunities, Mr. Giustra is surrounding himself with former Yorkton executives, including mining analyst Doug Leishman and corporate finance specialist Gordon Keep. Ex-Yorkton equities trader Ian Kirk has also been hired to set up a $30-million flow-through fund that will offer tax writeoffs to investors in mining exploration firms. Mr. Giustra has spent the past five years building Lions Gate, which, despite the critical success of productions such as Monster's Ball, Affliction, Gods and Monsters and The Red Violin,has been a stock market disappointment. He is still non-executive chairman of the company. He has sunk $18-million of his own money into Lions Gate, but its weak market performance has prevented him from exercising options on 250,000 shares, which are priced at $5.25 each. Lions Gate closed yesterday at $3.50 on the Toronto Stock Exchange. He has returned to mining in the belief that investor interest will be driven by a steady rise in the price of gold and other metals. "It will be a commodity-driven market," said Mr. Giustra, adding that a number of key factors will combine to drive gold prices higher. These include a decline in the value of the U.S. dollar, which he believes will weaken as international investors shift capital out of overpriced U.S. equities. Given that U.S. gross domestic product growth is fuelled in part by zero-interest car loans, low mortgage rates, and record levels of credit card debt, people are unlikely have money to put into the market. He said he thinks this will lead to a bear market, and that it is not unreasonable to expect a 30-per-cent drop in equity values within the next five years. "Foreign investors who invest in U.S. equities are starting to wake up and smell the coffee, and they are starting to pull their capital out and put it into greener pastures," Mr. Giustra said. However, the most telling sign that gold is in an upward trend, he said, is the decision by major producers such as Barrick Gold Corp. and Newmont Mining Corp. to unwind hedging contracts aimed at protecting themselves against falling prices. "This is smart business because it is uneconomic and potentially dangerous to hedge in a rising gold environment," he said. Still, even though gold has jumped to $311.60 (U.S.) an ounce from $255.95 last year, Mr. Giustra declines to predict where it will trade a year from now.<< Message 17482252

To: IngotWeTrust who wrote (995)	8/19/2002 12:02:34 PM
From: 4figureau	Read Replies (1) \| Respond to of 5423

>>Frank Giustra joined Endeavour in 2001. He began his career in the investment industry in 1978 with Merrill Lynch. In 1980, he joined Yorkton Securities and moved to Europe to establish the Natural Resource Group, opened the London office in 1984 and subsequently opened the Paris and Zurich offices. In 1990, he became President of Yorkton and in early 1995 was appointed Chairman and CEO. During his tenure at Yorkton, the firm participated in nearly $3 billion in equity for various resource companies. In 1997, he founded and is currently Chairman of Lions Gate Entertainment, a TSE and AMEX listed company.<< endeavourfinancial.com >>Douglas Leishman is primarily responsible for the due diligence of geological properties based on exploration data. He has been involved in the minerals industry for over 30 years, first as an Exploration Technician, then as an Exploration Geologist and more recently as a Mining Analyst. Immediately prior to joining Endeavour, he was the Senior Mining Analyst at Yorkton Securities Inc. in Vancouver. While at Yorkton, he had the opportunity to review, visit and make recommendations on numerous companies active in both domestic and international exploration. He brings an extensive knowledge of the junior resource sector, its companies, projects and management.<< endeavourfinancial.com