The following AGM was attended by a friend of the AGM Reporter and this is his report (he did tell me to include this little tidbit - Rick Rule was in attendance - google him).
Robert Quartermain, President and Director, chaired the meeting. The number of Directors was fixed at 6 and Price Waterhouse Coopers was retained as the auditors. Robert Quartermain has been with the company for 22 years.
It was the last meeting for Ross Mitchell who has been a Director for 10 years. Absent from the meeting was Sarbanes and Oxley (Joke!). Jonathan Singh was brought into the company to handle the reporting requirements under the Sarbanes Oxley Act under US laws.
Following the formal portion of the meeting was a slide show.
The theme of the meeting was:LEVERAGE
Silver Standard controls the world's largest public in-ground silver resources of any publicly-traded silver company. Silver Standard has just recently celebrated its 60th anniversary and the company gave a lot of silver souvenirs. Silver Standard has 30 subsidiary companies.
-Best electrical & thermal conducts
-Strength & fluidity
SSO's revenues are:
Comparing SSO with its peers, SSO is undervalued when looking at the Market Cap/Reserves & Resources
Core Asset Property Highlights
Pirquitas, Argentina Property
Silver (million oz.)
Annual production of 9.6 million oz. over 8.8 years with capital costs of about $146 million and construction expected to take 21 to 24 months.
Open pit and infrastructure includes a nearby air strip. A lot of locals are employed and 200 to 300 individuals are housed on-site. The project's energy requirements are met by gas fire co-generation. The project is located 850 km by road from port of Antofagasta in Chile and about 2,000 km by road from the port of buenos Aires in Argentina. Selling Indium as a by-product.
San Luis, Peru Property
San Luis is 55% joint venture with Esperanza Silver Corp. and potential 80% interest. Paid 1 to 5 cents per oz. for this high-grade gold-silver prospect and is the property is located within 20 km of Barrick's Pierina Mine. The main vein is the Ayelen vein. There is 1 drill on the property and another is coming. This is the next project to fast track. Gold is a by-product and forward selling of gold is being considered.
Pitarilla, Mexico Property
Open pit and property covers 29,680 hectares. There have been five zones of economically significatn silver mineralization have been identified. Throughout 2006, drilling has been focused on the Breccia Ridge and South Ridge deposits and massive sulphide mineralization has been discovered. The 2007 exploration program will continue agressive drilling on the Breccia Ridge and South Ridge zones with five diamond drills.
Diablillos, Argentina Property
Paid $3,000,000 for this property which was discovered in the 70's. There are 7 mineralized zones and the Oculto Zone is the largest. Metallurgical testwork done by Barrick indicated a open pit mine with approximately 7.0 million oz of silver and 70,000 oz. of gold per year.
Snowfield, BC Property
27 drill holes have been completed mineralization indicates gold and silver near surface and copper and moly at further depth. In 2007, 15,000 meter drill program is planned to expand the known mineralization.
The slide show had a lot of "Google Earth" shots of the different properties with zooming-in special effects.
The goal of the SSO is 30 million oz annual production by 2012.
There was 229.6 million in CASH on the Balance Sheet as of December 31, 2006.
Q & A:
SSO Shareholder: Are you having problems finding quality geologists?
Quartermain: Are you looking for a job?
SSO Shareholder: No, a general question.
Quartermain: We are not having any problems finding quality geologists. We have been very lucky since we have a very good portfolio of properties.
AGM lasted about 45 minutes and people in attendance were over 80% SSO people with a handful of retail shareholders and broker/analyst. Total attendance was about 30. Coffee, tea and water was served as refreshments.