Tuesday, May 01, 2007

Pan American Silver (PAA) AGM April 30/07

Amid the packed ballroom at the Met Hotel, Ross Beatty presents a gift to fellow co-founder John Wright. Wright is leaving the board while Beatty is to become a non-executive chairman.
Eight directors are voted in - including John Wilson (ex-CEO of Placer Dome) and I believe three from Seattle including Bill Fleckenstein (MSN Money writer, with his own investment company) & Michael Larson of Cascades LLC (looking after the Gates interest, I suppose?)

A slide show of 4 different celebrations (ribbon cutting, presentation of safety awards, etc) at 4 different mines in Mexico, Peru, Argentina and Bolivia is presented. At the Mexico site, a local archbishop is blessing the problematic filter system. (At least, they'll have the NGOs on their side). In Bolivia, where the government is increasing the tax, their local managers have been successful in getting the tax stalled.

The slide shows do show the isolation and poverty of these places. Kudos to PAA for attempting to change the people's situations.

On the production side, they will produce 17M oz of silver this year, hoping to hit 25M next year. The meeting was short and sweet, but I wonder about the Wright departure and the Beatty switch to non-executive chairman. The last non-exec chairman noted in our AGM reports was Ian Telfer at UUU and we know what happened afterwards.

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