RE: Yamana eases on 2Moz Goal
Where it reads that Yamana
"eases on its 2 million ounces goal", note that the article is talking about
annual production....not the threshold on which it would purchase a discovery from a junior minor.
Indeed, the three properties YRI sold to Aura Minerals were potential
high cost operations. YRI is more concerned of its overall cost of production -- it's profitability and margins -- more than its absolute level of gold output. At the least in the short run.
One part on the article not highlighted in bright yellow was this:
"
Now, three mines poorer, Yamana is focusing on organic growth - also apart of its vision statement - with numeric production goalsless confined by calendars."
Hmmm...organic growth doesn't bode well for Yamana buying into junior discoveries. That would be growth by
acquision.
Some analysts -- like Jim Puplava in his
Financial Sense show during his first hour of interview last weekend with David Morgan -- questioned the nature of this deal. It was noted that Yamana CEO Peter Marrone also
owns a very significant
29 million Aura shares or almost
5% of the junior and is a
member of Aura's board.
Puplava and Morgan were musing over whose interests Marrone was really advancing: YRI's shareholders or his own?
Aura's shares surged some 18% on the day the deal was announed. My guess is that Peter was OK with that.
The mining biz is nothing if not incestuous.
A couple years back, a company called Clearwater Mining Corportion (CMC) optioned off its Northern, Central and Southern Portions of its Idaho-based Orogrande Zone properties in separate agreements.
The optionee was Premium Exploration.
It's a good thing that the both companies share staff and have interweaving connections, eh?
CMC have an option to claw back up to 70% of its Northern Portion (i.e. Buffalo Gulch). Not such a great clause, if you think BG will eventually prove up a lot of gold there. PEM could be left with holding only 30% after doing all the grunt work.
Hmmm...I wonder who own CMC?
Unfortunately it's a private company, so they really don't have to disclose that...or do they?
Such info would certainly be on any real DD checklist. Perhaps Coffin can enlighten us all?