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

To: Tupulak who wrote (2030)	3/2/1999 2:10:00 AM
From: SwampDogg	Read Replies (3) \| Respond to of 2346

I have been monitoring this thread for more than a year now and have just become a full member of SI. I have enjoyed your observations and would like to add some of my own. I was a large shareholder of YRI for almost two years but I'm now totally out. Here is why: #1)The surprise financing before the Dec results came out and the resulting dilution. This created huge overhead supply in the stock crushing any speculative run. The convertibles and warrants caused confusion. #2)The bizarre news release about Lejano i.e. the obvious desperation of the company to find a property that had higher gold values and a larger resource instead of tricky silver vein systems. It seems the success of ARP in the market and the lack of interest for YRI's silver properties resulted in a move to try Ciclon West. The tone of that release I found really odd. #3)Management's continuous claims about a possible 200 million oz between Lejano and Bacon. "We must identify a resource this year...." There is no doubt that there is a lot of silver on the properties but they will run out of money before they find half of what they are looking for. When I talked to Amy Martin on the phone a couple of months back she was already talking about the next financing after this season. More dilution at what price? There will be 80 million shares outstanding (fully diluted) before long. Where is this stock going to be during the dog days of the summer? #4)The original reason I got interested in the stock was the Indo property. The drop out of ABX can only be seen as a negative. YRI will have to find a new partner to finance any drilling program which is at least a year or two away. #5)I believe the price of silver is going down over the next 18 months. I was in YRI in spite of this because I believed in what they were doing. There are so many great silver plays with proven reserves which are trading for less than YRI. Take a look at how much silver a company like FCX produces and look what they are trading at (they also have around 65 million oz of Au to go with it). If YRI is ever going to take off they are going to have to find gold to go with their silver or else Elizabeth's prediction of $0.15 may not be far off. If they do not find anything big in the next three or four months, I believe that YRI is going to have a really hard time finding any more money. There are probably some interested majors out there that could sit on the properties until the market for metals improves but any sale or merger would not come at much if any premium. #6)Has anybody checked to see if Mr. Taylor was actually told by the TSE to not post on this thread? Please respond if you have. In hindsight it seems quite interesting that just before things started going poorly, Mr. Taylor moved back to Canada and the info on this thread kind of dried up. I wonder if this was a management decision.... #7)At the Vancouver Gold Show in late January, Andrew Muir never even mentioned YRI during a panel. He mentioned five or six other companies but not YRI which was coming out with results. Comments anyone?