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.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Duray who wrote (60649)	3/1/2005 3:16:39 AM
From: elmatador	Read Replies (1) \| Respond to of 74559

<Brazil's "mining friendly and established mining culture, efficient and timely permitting process, and significant unexplored geological potential" makes the country a terrific place to do business despite its economic woes.> ... <Brazil offers the benefits of a developed nation--complete with attractive infrastructure such as power, transportation, and a mining industry--with the cost structure of a developing nation.> That means: we are for materials what China is manufacturing. Yamana loves to mine in Brazil By: Dorothy Kosich Posted: '01-MAR-05 05:00' GMT © Mineweb 1997-2004 RENO--(Mineweb.com) Although fellow Brazilian miner CVRD briefly relied samba music to help stimulate investor interest, Yamana Gold decided to let the facts speak for themselves Monday at the BMO Nesbitt Burns Global Resources Conference. Yamana Gold President and CEO Peter Marrone believes Brazil's "mining friendly and established mining culture, efficient and timely permitting process, and significant unexplored geological potential" makes the country a terrific place to do business despite its economic woes. Nevertheless, he added, Brazil is such a prospective mining area, it is becoming more difficult to find qualified mine management. He told analysts and investors that Brazil offers the benefits of a developed nation--complete with attractive infrastructure such as power, transportation, and a mining industry--with the cost structure of a developing nation. During 2004, Yamana started construction at its S?o Francisco and Chapada projects, started producing gold at Fazendo Nova late last year and achieved targeted production and reduced cash costs at Brasiliero, according to Marrone. Chapada will also produce copper during its 19-year mine life with a total life-of-mine recovery of 2 billion pounds of copper and 1.3 million ounces of gold, he added. Forecast average LOM cash costs include 68-cents per pound of copper and $185 per ounce of gold. The Latin American-focused gold producer already has two operating mines in Brazil, which produce a combined 130,000 ounces of gold annually. The two projects now under construction will increase annual production by 50% with an anticipated 410,000 ounces of gold projected for 2007. Yamana has forecast an estimated total gold production of 146,000 to 160,000 ounces this year at an average projected total cash cost of $215-230/oz. The company has also planned a $14 million exploration program this year. It holds 1 million hectares, which is the fourth largest land position in Brazil. Marrone said the company's short-term goals include beginning construction of the S?o Vicente mine, establishing a new resource at Fazenda Brasileiro to support an additional two years of mine life, and defining stand-alone resources along the Itapicuru greenstone belt and the Santa Elina Gold Belt. As of December 31, 2004, the company held a cash position of US$90 million, according to Marrone. He explained that the shares are widely held with a strong international and growing retail shareholder base. If warrants and options are exercised, available cash would increase by over $70 million