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Gold/Mining/Energy : Caussa Capital (formerly Antares) T.CAU -- Ignore unavailable to you. Want to Upgrade?

To: john who wrote (3963)	8/2/1998 3:57:00 AM
From: bill718	Read Replies (2) \| Respond to of 4718

That is quite a list John but the majority of shareholders think Dennis is OK otherwise he would have been voted out at the AGM. Reviewing the news releases (available at the corporate website: antaresmining.com ) shows that even though the share price is low (like most Cdn. Jrs. right now), the company is still poised for survival (ie, cash-flow likely from Indo and Kaz. beginning next year) and growth. Given that financing for Cdn. Jrs. is difficult these days, seems to me that creating cash-flow asap is a smart move on their (Dennis included!) part and I don't think they will need to look for funding if production from Indo and/or Kaz. comes as planned. I think they are well aware that they have to be careful where money is spent in the short-term and that is one of the reasons for the operatorship deal with AGC leading to decreased exploration costs for ANZ in this round of drilling. Also, the $1.3M for Indo exploration next year should go VERY far given the costs are extremely low (pennies a liter for fuel, extremely cheap labour, etc., ). The " loan to MacDonalds" was a Bankers Acceptance...my understanding of which is: Any company with cash wants it to earn money for them while they do not need it. Meanwhile other companies need short term finance pending cash flow. The Chartered banks put the two together in a structured form adding their own guarantee. The structure is normally 30, 60, or 90 days. Company A goes to the bank and says they want to put X amount out for 30, 60, or 90 days and the bank writes a BA which another company who needs cash takes up. The borrowing company has to have a credit rating to satisfy the bank as they are guaranteeing it. In the case of ANZ, the borrower that the bank produced was MacDonalds but it could easily have been another organization. Also, the money being out over year end allows ANZ a little relief from capital tax.