agm seen

I attended the MSR meeting yesterday and here are a few points (esp. in light of discussion on this site):

Attendance. Total people in the room around 20. Only maybe two (non- MSR staff) investors but plenty of brokers representatives including Argonaut.

Most of the Kyrgyz problems have been well discussed on this site and in missives from MSR. However, Steve Ross (SR) seems quite confident that the local government in the area needs the money. He sees the most challenging issue being getting the locals to understand exactly what mining is and get comfortable with it.

How much finance is required? $41m.
How much of that needs to be equity. 20 to 40% est. However the funding package is likely to be debt plus some form of equity to the financier “to plug the equity gap.” He clarified that the YTC model that is the same, is a good analogy. The key will be how restrictive any off-take terms are. Mark Connelly is helping open doors but the project needs to stand up on its own merits for financing. He said leave it with him hell get back to us with something.

He said the low operating cost model is pretty common in Central Asia. He has put out C1 & C3 costs in the presentation. He also has some sensitivity testing at 1200 per Oz “at which most co.’s in Aust would be running a loss”.

Phil Reece (CFO) said they were somewhat disappointed they didn’t get a SP kick from but it’s par for the course at present.

It was good to see mark Calderwood on there on the board. He is still doing some Consultant work for Pru as well.