Resource World Magazine

o c t o b e r / n o v e m b e r 2 0 1 6 www.resourceworld.com 9 gave them an hour to read it. I said I would sign it if someone could explain it to me. When they returned, no one could explain it to me. This was ridiculous considering that we had liability for what we sign. We made some improvements. RW: Regarding McEwen Mining, is your business strategy to build a vertically integrated company encompassing explo- ration, development and mine operating? RM: Yes, everything – that's where we are going. I'm a big believer in explora- tion as it's the R&D of the mining world. When I ran Goldcorp, it was exploration that built that company. A number of other companies that I have been involved with are predicated on exploration. When you explore and put into production, you cover the gamut. RW: Besides exploring, how else do you plan on replacing and expanding dwin- dling reserves at your operating mines? RM: We have organic growth; however, we also plan on considering mergers and acquisitions to add resources and more production in order to build a size of com- pany that will qualify for inclusion in the S&P 500. RW: What is your view on the future price of gold and why? RM: That's easy – it's going higher. And why? There are numerous reasons; the most fundamental is that governments of the developed world are pursuing a dan- gerous course to debase their currencies and burdening their countries and their citizens with enormous levels of debt. The way that they have tried to solve the problem is to try to stimulate the consumer to spend their money. I am finding that is not happening. In the US, a proxy for all the developing world, they have increased the money supply by over $4 trillion since 2008, doubled the national debt up to $19 trillion. Then look at the student loans; since 1990, they have grown to over a tril- lion dollars. When you push this money into the system you create inflation. Governments are telling you there is no inflation but when you want to insure your car, pay your rent, buy food or a house, you will find that most of these costs have gone up. The government has put in all this so- called 'stimulus' yet home ownership is going down, the velocity of money is slow- ing to the point that it is at a 65-year low and family incomes are down. Couple that with negative interest rates and there is a great deal of anxiety out there as to where to put your money to make it grow. If it doesn't grow, for a lot of people on fixed incomes, they will have to curtail their lifestyle. Low interest rates also have a huge impact on insurance companies and pension plans. So the government is going to continue to print money. If you look at economic history, every time governments do this they debase the currency and drive people to hard assets. When gold was released from central bank control in the 1970s, it went from US $40/oz to $800 – better than 20 times. The low in this most recent cycle was US $250/oz. Twenty times that and you are up

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