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Gold/Mining/Energy : Exall Resources/Glimmer Resources -- Ignore unavailable to you. Want to Upgrade?

To: Brader who wrote (506)	2/21/1998 9:46:00 AM
From: Winzer	Respond to of 1319

Brader, Nice of you to add this bit of information. It does tend to summarize a lot of the discussion that has transpired over the past couple of years. Speaking from a "second guessers" perspective re: 1. Glimmer Control - Based on my knowledge of the "nuts & bolts" of the EXL/GME agreement being limited to annual reports, press releases and SI chat. My comment (and I could be way off base) would be that the baseline to all of this hassle should revert back to the original 60/40 deal(wait don't click the response button yet). Then the variance analysis should begin. Then the rest of the analysis should be confined to basic questions like, are we seeing claims for actual costs or replacement cost? If the wrong type/size of equipment was purchased, and these units had to be replaced, is this a fair cost to GME? After all what is the 15% management fee for? i.e. who pays for a wrong decision? (and on, and on and on). Anyway as far a damages are concerned, they must have to translate this into equivalent cash, then into equivalent property valuation (the percetage calculation). 2. Vein Chasing - my very favourite saying is by John Ing, of MP, and it goes something like this, "it's not a good property unless we have a couple of good lawsuits". And I suspected the lawsuits started after the development drifts/stoping encountered the sea of VG. 3. Continue Operating - While I like 51%EXL/49%GME(and EXL gets to keep the 15% management fee), I see 55/45(with EXL MF) being in there also. Who knows? I also own both companies, which I agree are severely depressed because of this disagreement. The only good aspect to all of this is that it presents an excellent buying opportunity for those of us with some free cash. As James Wilson said recently the next 6-8 weeks should be very interesting. And lets face it this is not the first lawsuit to occur in a joint venture. And it most certainly won't be the last. I 've seen enough JV contracts to know that in the start up phase of a project there is so much excitement to produce that there are some things that could be done better (like a better pre-nuptial agreement); but it takes the fun out of the play. IN SUMMARY: This play has been a clinic in patience for all of us. It should have been into to $5-10 range as suggested by many six month ago; but alas in the "real-world" these things take a while, because Mine Plans, infrastructure, equipment and manpower have to be adjusted for actual field conditions. So yes GME will win, EXL will win and the shareholders will win; only if a compromise is reached in an out of court settlement. In the meantime, I must call my "loan shark" to see if I can get a home equity loan on my tool shed, so I could pick up some more shares before they "kiss and make up for the children's benefit". Footnote: equate children to shareholders. Cheers Winzer