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Gold/Mining/Energy : Yamana Resources INC. T- YRI -- Ignore unavailable to you. Want to Upgrade?

To: Daytek77 who wrote (744)	11/1/1997 4:44:00 PM
From: Greg W. Taylor	Read Replies (3) \| Respond to of 2346

Tony: As the originator of this group and someone I've met once or twice, I can't help but respect your sentiments. You were right back when you were a strong, vocal supporter of YRI and I can't say you're suddenly wrong because your view has changed with the market. As you said, junior gold exploration is, at worst, a futures play on the price of gold. The price of gold today in no way reflects the value of whatever gold Yamana will find. Obviously, the market is not currently concerned with the distinction. At the same time, Yamana is actively exploring for a number of different metal targets, including both silver and zinc, both of which, I believe, are forecast to improve. Again, we're getting no upside on that "futures play." I also agree that, putting aside the scandal concerning Bre-X, that "find" and Voisey's Bay, drove the market into a frenzy which has now been crushed. Is rationalization necessary? Absolutely. It's happening now and it will continue to do so. And bankrupcies will also continue. Still, the questions, in my mind, remain: "Who will have the next Voisey's Bay or Collahuasi or Goldstrike?"; "Where will it be?"; and, "What will be the impact of such a find?" The general mood of the market right now says either these questions aren't important or they (cynically) say it won't happen. There are no more great and profitable targets. (BS) Yes, this is the heart of investing in this business. But perhaps what's an even more fundamental question is: "Are junior exploration companies the best place to invest your higher risk capital?" Probably not. Not unless you can find a company that's got the fundamentals going for it: the management, the cash and the properties. Let alone the share price. (I know a company that has 100 properties with numerous ore grade intercepts, and yet it is being valued at C$0.50/share for all of its portfolio, after you take out its cash.) Tony, you've been a great supporter. For that, I thank you. (And hope to see you back. My wager's in the market.) All the best. Greg (PS: Keep watching.)