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

To: John Stokes who wrote (809)	3/26/1998 1:53:00 AM
From: Moot	Respond to of 1248

John Stokes, et. al., John: I'm not entirely clear on what it is you are asking of me. To begin with, I don't know that there is some obstruction in gaining financing for juniors in Kazakhstan, in general, or any particular junior. I offered an argument specifically in the context of Steppe in which I discounted the significance of the 'Kazakhstan Syndrome' as a cause of Steppe's mailaise and subsequently as a factor in the perceived delay in the completion of Mizek financing. (Please note that I discounted it, I did not dismiss it as irrelevant to either the share price or the financing.) The bulk of an earlier post was given over to what I consider to be more specific causes, and I do not intend to re-state them. In a further post, I argued that the political risk, which you made reference to, was not a factor in the financing decision at this point. I have not over-ruled anything. I don't have fiat power, as much as I might wish I did. I have offered my opinion, supported by arguments. Anyone is free to challenge both the opinion and the arguments as some have already done--Robert Dydo, in particular. As Robert has pointed out, we (Robert and I) disagree on some issues but not on the cure. From that standpoint alone, I think some progress has been made. Unless Standard Bank has some clause in the term sheet that we are unaware of related to market conditions, I don't see how they can factor into the completion of financing. As for the weather, unless it has some bearing on the technical due diligence--which would be possible if some independent confirmatory drilling were yet required--I don't understand what its significance might be. If you have any further information regarding either of these possibilities, I would be pleased to hear it. Tango: I don't know that anyone here has been defensive or has taken things personally, as you suggest. Some opinions have been offered and perhaps some strong arguments and counter-arguments. It has all been pretty constructive, as far as I am concerned. Frankly, I don't care if anyone who posts here is a CEO or a chimney-sweep. If they have an opinion that they care to offer, I'll listen. If that opinion is supported with reasons and arguments, I'll listen even closer. You have done both. However, you seem to have offered some personal information in support of at least one of your claims. I really don't lend much weight to such information on the internet but when it is offered, I consider it in light of other posts by the same person. As I recall, a short time ago you posted that you had some people who were interested in juniors, or something to that effect. I have to wonder why someone with this apparent responsibility and with the experience of close involvement in corporate financing--IPO and debt issues--would direct a question about Kazakhstan's expectations regarding Steppe's production to a group of largely anonymous posters. It seems to me that considering both the responsibility and the experience, that question would be more properly addressed directly to Steppe management or to the relevant Kazakhstan office. For these reasons, I give no weight to your proffered personal information as a support for your claim. Having said all that, you raise some very interesting points that stand quite independent of what your involvement with anything else might be. Re-evaluation of political risk is certainly a possibility, though I think your suggestion of how often this is done is slightly exaggerated. Assessments of risk may well be re-considered as circumstances warrant, but I have not seen any developments in Kazakhstan recently that suggest to me that this would either be required or would impact negatively on Standard Bank's commitment should one be done. With respect to the window of opportunity for investing in Steppe, I think you have another good point. When and if Steppe manages to advance its projects there will no doubt be time and opportunity for gains at several points. For my own part, I am invested now and prefer to stay that way for the time being. You are also correct with respect to the relative lack of appreciation in share price of some other companies with recent financings. However, that hasn't been the case in all instances and it does not necessarily follow that it will be so in Steppe's case. I do think it is quite possible that any appreciation that might occur may be less than expected and possibly a good deal less than might have been expected a year or even a few months ago. Finally, if we concentrate on arguments and reasons, there should be no need for people to take things personally or get defensive. Brian: I'm glad you got a chuckle. If I don't respond in a similar fashion when the occasion arises, as it undoubtedly will, please don't hesitate to point it out--loudly, if necessary. There have been some very interesting posts made recently. I'd like to take up some further points and comments (Steve), but it's late and if my fingers don't betray me, my memory certainly will. Regards.