To: brian krause who wrote (484 ) 1/18/1998 8:06:00 PM From: Robert Dydo Respond to
It is very interesting that you use word promise in regards to Steppe. I think that any deal has as always at least two sides. Here we are, as shareholders expect Steppe to perform and develop itself as well to bring their promises to liveable minimum, which is production from Mizek. On the other hand you have Kazakhstan authorities which can expect the same from Steppe as to be a builder of the industry, creator of jobs, income earner and thereafter as taxable corporation. I used word minimum in purpose not to describe capability of the company but possibility of the country Steppe works in and huge appreciation value Steppe may become. Steppe has accomplished what many has said is very difficult or even impossible in depressed market. This can be viewed only in positive way. If everything works out, it will open first mine in Kazakhstan created by Westerners and by next year it will have a substantial income. Steppe has the largest land position in Kazakhstan. Separately from Mizek licence it has 5 projects which if I am right surround small stakes of companies like Teck or within which or next to them are large deposits, some with operating mines. Mizek alone contains K&A deposits plus some 80 anomalies and targets. You can argue everything but you can't dispute strategic land package. The potential is huge and you are right that first step will be made with Mizek. The next step as developments suggest would be K&A as possible JV. Who knows but companies like Teck may desire to increase their packages within the Selety licence? There is a great deal for expansion for Steppe with outside and local partners. To this point there was always one very important question: can they pull this off? Can they build the mining business in Kazakhstan? Before I was speculating, now I have a good reason to believe that they can. J. Menzies has delivered. Now turning to Kazkhstan, why would they not see this as an opportunity for growth for their country, people, future. Why would they want to stop Menzies from bringing other deposits to production, stop him from bringing money to the country to make more money for them in the proccess as well?
