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


To: Dan P who wrote (949)2/24/1998 12:41:00 PM
From: Greg W. Taylor  Respond to of 2346
 
Likely the clearest answer lies in the fact that we have no current plans to drill or to do any serious exploration until things settle down there. To say 'we like the ground we have' is an understatement. But we too are watching and waiting. There are some signs which concern us, and others which offer some level of comfort: The bad signs I see include issues about: "the family's" continued entrenchment in the economy; Suharto's successor; the strength (or lack thereof) of the rhupiah and the hardship caused by the associated inflation; public unrest; and, the relative lack of democratic means of opposition which, in our Western experience, leads to acceptable reform.

On the positive side I see: the signing of the CoWs, only a couple of months later than they were last promised, with minimal major changes in the terms; apparently serious discussions between Suharto and the World Bank / Clinton and other officials/organizations concerning economic reform; some opening of public opposition without reprisal; the continued success and operation of a number of mining (RTZ, Freeport and Aurora) and other companies in the country; as well as a few other more subtle aspects of the situation such as the relative "peace" in Jakarta (I get regular reports from Jim McGregor-Dawson and others in our office there).

In my view, the only certainties are: things will continue to change, likely for worse and better; the country's highly prospective for precious and base metals; and, we have ground that can't be ignored geologically.

Meanwhile, there are other fish frying in our pan for meals in the nearer term.

I hope this helps.

Greg