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Gold/Mining/Energy : Steppe Gold (SPE:V) -- Ignore unavailable to you. Want to Upgrade?

To: Moot who wrote (795)	3/24/1998 6:00:00 PM
From: Robert Dydo	Respond to of 1248

I do agree with you,although I would add some things. Kazakhstan may scare people away as long as Steppe will stay a junior exploration company. Nobody will care where they are, while they mine Mizek and get money to develop other projects. How Steppe is coming around to deliver financing and Mizek is another immediate problem which could be blamed on company's weakness but which may as well originate from same fear shared by investors, topped with bankers and general market conditions. Kazakhstan is the main cause of SPE being sick on the market, while symptoms are emphasized by weak body, vulnerable to the "junior stock" illness. We may disagree on origin of trouble, there is no question about the cure. The only medicine is to apply injection of cash and develop the Mizek. The proposal addition of GDB properties is for me a signal that mgmt is quite certain of this event coming up next. The dilution would not be a problem. I have done useless calculation at this time which makes only sense when they get the money and Mizek will produce gold. This calculation including assets of GDB int'l shows $5 billion in geological resource, taken from this figure in very conservative way is : 50% for Kazakhstan partners then another 50% for operating cost(very harsh) You are left with $1.25 billion. If they had to pay taxes on it at 50% still you get $600 million in the long run. This against 50 million shares is about $12.00 per share. The costs in this calculation are very high just to show enormous potential, also agreements are in position for Steppe to retrieve their exploration expenditures and till than ratio is 91% SPE and later from 60% to 50%(last for GDB properties no similar agreements to repayment of costs).It is a very long term, keep in mind , but must be started now with financing finalization. This is the Steppe's potential and if they can't do it in Kazakhstan, they would not be able to do it anywhere else. I would think that SBL is quite capable of making similar futuristic calculations and as such both parties maybe drawn to each other on equal platforms. Believing that situation in the country would come as a surprise to SBL and prevent them from engagment as John Stokes suggests does not hold the ground judging by the role this outfit has taken on itself in the past. Further having offer of the termsheet provides another confirmation to what SBL wants to do. The subject of legal and technical dd is not Kazakhstan but SPE and their property and I feel that John may not be aware of its results, although he can have some indications to its conclusion (look at GDB move). When I said about the ability to develop portfolio of such properties anywhere else, we could hope for very positive reaction on the market to our direct benefit if this was Peru, Venezuela or Mexico not the case of Kazakhstan syndrome. This part is missing here, but it won't be missing for long, I do hope. Speculation ends when calculation starts, financing is a breaking point. Market expresses the speculation(gone)still the breaking point is ahead. Regards Robert