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Barrick Gold (NYSE:ABX)
Q1 2012 Earnings Call
May 02, 2012 4:30 pm ET
Gregory S. Panagos - Former Senior Vice President of Investor Relations & Communications
Aaron W. Regent - Chief Executive Officer, President, Director and Member of Corporate Responsibility Committee
Robert L. Krcmarov - Senior Vice President of Global Exploration
Jamie C. Sokalsky - Chief Financial Officer and Executive Vice President
Peter J. Kinver - Chief Operating Officer and Executive Vice President
Stephen D. Walker - RBC Capital Markets, LLC, Research Division
Greg Barnes - TD Securities Equity Research
David Haughton - BMO Capital Markets Canada
Paretosh Misra - Morgan Stanley, Research Division
John Charles Tumazos - John Tumazos Very Independent Research, LLC
John D. Bridges - JP Morgan Chase & Co, Research Division
Ladies and gentlemen, thank you for standing by. Welcome to the Barrick Gold First Quarter 2012 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded, Wednesday, May 2, 2012. I would now like to turn the conference over to Greg Panagos, Senior Vice President, Investor Relations at Barrick Gold. Please go ahead, sir.
Gregory S. Panagos
Thank you, operator, and good evening, everyone. Before we begin, I would like to point out that we will be making some forward-looking statements during the course of this presentation. For a complete discussion of the risks, uncertainties and factors that may lead to our actual financial results and performance being different from the estimates contained in our forward-looking statement, please refer to our year-end report or our most recent AIF filing.
With that, I'll hand the call over to Aaron Regent, our President and 4:31 AM CEO.
Aaron W. Regent
Thanks, Greg, and good afternoon, everyone. Thank you for joining our first quarter conference call. I'm joined here today by our CFO, Jamie Sokalsky; our EVP of Corporate and Legal Affairs, Kelvin Dushnisky; our Head of Exploration, Rob Krcmarov; and Peter Kinver, our Chief Operating Officer; and we also have Igor Gonzales with us today who's the Head of our South American unit, who's going to be our new COO going forward.
Along with the results we announced this morning, we did announce that Peter is retiring in June, and so this is a sad day for us as Peter has made an outstanding contribution to Barrick over his 9 years with the company and has been an important partner on our team. Although leaving as COO, Peter will continue to be an adviser with the company, while we complete Pueblo Viejo and Pascua-Lama. But amongst Peter's many accomplishments, he had developed a strong succession plan, and I'm delighted to welcome Igor Gonzales as our new COO effective today.
Igor has been the Head of our South American region since 2005 and has developed a strong track record and is perfectly positioned to take over for Peter. So again, I'd like to thank Peter for his years of outstanding service to the company and would like to welcome Igor with us today.
I'll start by covering some of the highlights of the quarter and provide an update on our projects. And then I'll turn it over to Rob to give an update on our exploration programs, and then Jamie will walk through our financial results.
So turning to the first quarter highlights. We reported solid financial results. Earnings per share were up 3% to $1.03 per share, which compares to $1 last year. And adjusted EPS increased 8% to $1.09 per share compared to $1.01 per share last year. First quarter adjusted net earnings translates into an annualized return on equity of around 18%. We generated operating cash flow of $1.27 billion and adjusted operating cash flow of $1.37 billion.
The first quarter gold production was 1.88 million ounces, with a total cash cost of $545 per ounce or net cash cost of $432 per ounce. Gold total cash margins increased 20% to $1,146 per ounce, while net cash margins rose 16% to $1,259 per ounce for the same prior year period. First quarter copper production was 117 million pounds at a C1 cost of $2.08 per pound.
I'm pleased to report that the Board of Directors has authorized a 33% increase in our quarterly dividend to $0.20 per share or $0.80 per share on an annualized basis. And this increase is consistent with our practice of paying a progressive dividend, reflects our commitment to returning capital back to shareholders while also continuing to make high return investments in the business.
Reviewing the operating results by region. North America produced 888,000 ounces of gold at a cash cost of $485 per ounce, reflecting better-than-expected performance from Cortez on higher-than-budgeted grades from the Cortez Hills underground. Cortez produced 416,000 ounces at total cash cost of $304 per ounce in the quarter.
The Goldstrike mine contributed 242,000 ounces at cash cost of $546 per ounce. Production for the quarter was impacted by increased maintenance activities and construction on the autoclaves to prepare the autoclaves as part of the implementation of our thiosulfate project. Second quarter production at Goldstrike will also be impacted primarily due to, again, planned maintenance at the roaster, but is expected to increase in the second half of the year, primarily due to the mine access to higher-grade underground ore. We continue to expect full year production from North America of 3.4 million, 3.6 million ounces at a cash cost of between $475 and $525 per ounce.
Our South American region produced 451,000 ounces at total cash cost of $421 per ounce. The Veladero mine produced 214,000 ounces at a cost of $461 per ounce. Lagunas Norte contributed 206,000 ounces at a cash cost of $284 per ounce.
Second quarter is expected to be the lowest production quarter for Lagunas, primarily due to mine sequencing. Production will begin ramping up to high levels in the third quarter as mining moves into higher-grade areas.
For 2012, South America is expected to produce between 1.55 million to 1.7 million ounces at a total cash cost of $430 to $480 per ounce.
Australia Pacific contributed 426,000 ounces at a cash cost of $748 per ounce. Production for the region was impacted by some operational disruptions at Porgera, including power supply interruptions. Production at Porgera is anticipated to increase in the second quarter. Full year production from Australia Pacific is expected to be between 1.8 million and 1.95 million ounces at a cash cost of between $700 and $750 per ounce.
Our share of the production from African Barrick was 107,000 ounces at a cash cost of $925 per ounce, that also reflects mine sequencing for 2012. Higher production levels is anticipated for the second half of the year, and our share of production from ABG is expected to be between 500,000 and 535,000 ounces at a cash cost of between $790 and $860 per ounce.
Turning to copper. Our first quarter copper production was 117 million pounds and C1 cash costs of 200 -- I'm sorry, $2.08 per pound, that includes 76 million pounds from Zaldivar, and 41 million pounds from Lumwana. Zaldívar's cash cost were $1.51 per pound, and Lumwana's were $3.15 per pound. The indicated production and cash cost at Lumwana in the first quarter were impacted by lower mine rates, primarily as a result of ground conditions from the wet season, which will also impact the second quarter. In addition, second quarter production is anticipated to be impacted by some planned maintenance activities that we have.
Total copper production is expected to increase in the second half of the year, primarily due to the commencement of mining in the large Chimiwungo pit at Lumwana and with the startup of production at Jabal Sayid.
Turning to our projects. We made good progress in the first quarter on our 3 major projects in construction. At Pueblo Viejo overall construction is currently about 93% complete and initial production continues to be expected at midyear. Our 60% share of 2012 production is anticipated to be around 100,000 to 125,000 ounces at the cost of about $400 to $500 per ounce. In its first 5 years, PV is expected to contribute between 625,000 and 675,000 ounces to Barrick at a cash cost of under $350 per ounce.
Approximately 90% of the mine construction capital has been committed at the end of the first quarter. During the quarter, power was connected to the site, and the first 2 autoclaves are now undergoing pre-commissioning and testing. They are expected to be commissioned in the second quarter, along with the oxygen plant. Commission of the third and fourth autoclaves and commercial production are scheduled for the fourth quarter.
We have more than 50 million tons of ore or approximately 1.7 million ounces of contained gold stockpiled. The tailings facility has now received all necessary approvals to permit construction of the starter dam to its full design height. We've also begun construction of a 250-megawatt dual-fuel power plant at an estimated cost, our share, of around $180 million. And we expect that the plant to be completed in the third quarter of next year.
At the Pascua-Lama project, overall construction is about 30% complete, and first production is anticipated in mid-2013. Average annual gold production for the first 5 years of operations is expected to be between 800,000 and 850,000 ounces, and we're also expected to produce about 35 million ounces of silver. Taking silver as a byproduct credit, our cash costs are forecasted to be a negative $225 to $275 per ounce. Approximately 70% of the mine's construction capital has been committed. The project is being impacted by labor and commodity cost pressures, primarily as a result of high inflation in Argentina and to a lesser extent in Chile. Competition for skilled labor is also a factor and labor productivity is also impacted in some of our development.
We have strengthened the project team with experienced supervisors and miners from our North and South American regions and have increased our oversight of external contractors and accelerate procurement of long lead items and other necessary equipment. In conjunction with these activities, we intend to complete a detailed cost and schedule review in the second quarter.
During the first quarter, the initial phase of pioneering road construction was completed. This will help enable the plant commencement of pre-stripping in the second quarter. We expect to finish the transmission line in Chile in the fourth quarter this year. Completion of the ore conveyor tunnel is scheduled for the first quarter of 2013. And the second quarter of 2013, we expect to complete pre-stripping and the transmission line in Argentina, which will enable us to achieve mechanical completion ahead of our first goal in the middle of next year.
In terms of more detailed progress, underground development is approximately 40% complete. Earthworks construction was about 97% complete at the end of the first quarter in Chile and 73% complete in Argentina. Approximately 45% of the concrete had been poured at the processing facilities in Argentina and about 20% of the structural steel has been erected to date. Occupancy of the construction camps in both countries continues to ramp up, with about 6,800 beds available by the end of the quarter. The camps are expected to reach their full capacity of about 10,000 beds in the middle of this year.
Once completed, the financial contributions from these projects is substantial. At $1,600 gold, PV is expected to contribute about $800 million of EBITDA to the company, and based on the same assumptions and $30 silver, Pascua-Lama is expected to generate about $1.65 billion of EBITDA to the company. So combined, these 2 mines will contribute about 1.5 million low-cost ounces and $2.5 billion of EBITDA a year to Barrick for their first full 5 years. They're world-class mines, and with their 25-year-plus mine lives, they will be major contributors to the company well into the future.
Our total cash cost basis, we are already positioned in the second quartile of the global cost curve as the lowest-cost senior producer. And you could see the positive impact PV and Pascua-Lama are expected to have when they come online in mid-2012 and mid-2013. When you combine this with our input cost hedging, we feel we're well equipped to mitigate inflationary and other cost pressures in the future.
Moving on to the Jabal Sayid copper project in Saudi Arabia. Overall construction was about 80% complete at the end of the first quarter. About 80% of the total mine construction capital of $400 million have been committed. Bulk earthworks are about 96% complete, and approximately 214,000 tons of our underground ore have been mined, representing about 10.6 million contained pounds of copper at the end of the first quarter. The process plant is scheduled for completion in third quarter, along with the receipt of all the necessary permits to begin shipping.
Subject to the final receipt of these approvals, we expect first production to begin in the second half of 2012. In this year, we expect Jabal to contribute about 35 million to 45 million pounds of copper at cash cost of about $2.15 to $2.50 per pound. But as we ramp up, we expect to produce on average around 100 million to 130 million pounds at cash cost of around $1.50 to $1.70 per pound.
In addition to these projects, we continue to advance the other projects in our pipeline, which are at various stages of permitting and feasibility. At Cerro Casale, we expect to complete the EIA permitting process by the end of 2012. Following this, we will then consider how best to advance the project. At the Donlin Creek project, we're working to conclude negotiations on surface land use agreements, at which time the board of Donlin expected to accept the revised feasibility study, and we'll then start the permitting process. Pre-feasibility studies are scheduled for completion on the Lumwana expansion and Turquoise Ridge open pit project by the end of this year and on the Zaldivar and Lagunas Norte deep sulfide projects by the first quarter of 2013. And we are moving forward in the scoping stage at Goldrush.
And with that, I'd now like to turn it over to Rob who'll give you an update on our key exploration programs.
Robert L. Krcmarov
Thanks, Aaron. It's been 2 months since our last comprehensive exploration update in the Q4 2011 call, so this will be a brief progress update on our key exploration projects. A more complete exploration update will be provided in Q2 once results from the programs underway are received.
Now exploration teams currently have around 100 drill rigs operating throughout the world and the top projects are Goldrush, Turquoise Ridge open pit and Lumwana. These are the key projects with large drill programs, which will add to and operate the gold and copper resources in 2012 and 2013 and which would directly contribute to various planned scoping feasibility and expansion studies. Today, I'll focus on just these 3 projects in the coming slides.
So in Nevada, we've currently got 52 rigs operating, 11 of which are located on the Goldrush complex, which we previously called Red Hill-Goldrush. Activities in Q1 have tracked well, with over 20% of this year's planned drilling completed to date. And this slide shows the year-end 2011 stated resource, 7 million ounces, in the blue outlines surrounding the colored shapes. The colored dots outside of the resource area represents the individual grade, multiplied by thickness of the holes, which weren't of sufficient drill holes spacing to qualify as compliant resources.
But from the colors, you can clearly see that we continue to index a strong mineralization well beyond the resource areas. And the yellow dash lines of minerals on the left is really drill constraint, and you can see examples with the arrows pointing to and particularly west and south of Goldrush.
While we've got many drill results pending, the stepped up drilling to the west and south is, in effect, a favorable and significant alteration including silica-sulfide breccias and replacement style alteration, and these are normally good indicators of strong mineralization. Additionally, in-field results to upgrade the resource were in line with expectations, as shown by the broad intercept from the top of the slide, sample at 108 feet at 0.14 ounces per ton. We'll provide a more extensive update next quarter as more results become available.
But the mine update on these projects since last quarter is concurrent with the exploration drilling. A full steering committee, comprising operations and other technical and support services personnel has been established to coordinate a scoping study. Pit optimization in pits have been initiated by the strategic planning group. The technical drilling will begin in earnest this quarter, and that should also contribute to realistic pit design assumptions. Hydrology studies are also continuing, as are various environmental baseline studies. We're also in the process of contracting to build a permanent camp nearby with this growing project.
The drill program at Turquoise Ridge continues to successfully upgrade and expand both the underground and the open pit mineable resource. In Q1, resource definition drilling ramped up to 14 rigs and completed over 91,000 feet of drilling. At year-end 2012, drill spacing will be adequate to upgrade all of the presently 9 category full mineralization and inferred resources to measured and indicated status. Of most significance, the pre-feasibility study for the open pit project is well underway, and scheduled completion by year-end 2012, assuming success of submission of the plan of operations and permitting could then be initiated by the joint venture. Based on positive results from ongoing exploration resource definition drilling, resource modeling and engineering evaluations, we expect to have a few potential major project milestones this decade.
I think it's worth reiterating that superpit concept contemplates simultaneous high grade underground mining in conjunction with large tonnage bulk -- excuse me, with large bulk tonnage open pit mine. And the reason we're attracted to this project is that: we already own it; it's a pure gold play in a safe jurisdiction, and we can conceptually see production reaching over 800,000 ounces per annum; and the mine life in excess of 20 years; also, ore occurs at the surface; and conceptually, the project will be largely self-financing; and there are also some potential processing synergies with Goldstrike. And so as we advance Turquoise Ridge, through our feasibility studies, towards a construction decision, we anticipate that the increased project definition will show this to be another world-class project and catalyst for our long-term growth and sustainability.
Over to Zambia now where we'll look at recent developments at the Chimiwungo deposit at Lumwana. When we contemplated the Equinox acquisition last year, we recognized the potential for tremendous upside at Lumwana, especially at Chimiwungo. An updated reserve and resource statement was released at the end of 2011, which showed increases across all resource categories. And almost the entire 10.7 billion pounds of copper in the inferred resource category lies within the Chimiwungo deposit as shown by the powder green shade on the slide. Drilling would test the powder green areas. It will also test the areas in between the shades of green which haven't been tested nor included in any resources. It's these areas that we expect to really add to the interred resource base in the future.
As we discussed last quarter, an aggressive and advanced exploration driller is underway where an 18-month, 300,000 meter program to commenced in mid-2011 will grow and provide increased confidence and resources to the expansion study to materially increase production. Today, about 35% of the program as shown on the screen is being completed.
Results from Q1 from the resource definition drilling are in line with expectations, including confirmation of the thickened eastern Equinox chute as shown with the results on the screen. Confirmation of the high-grade Roan chute especially on the eastern boundary, where the copper grades are higher than some of the original very widely spaced holes, intercepts within and also outside of the current resource block, highlighting potential resource growth. Also, we're increasing the confidence in resource upgrade and conversion from inferred resources. And we're also demonstrating resource growth potential from results outside of the current resource areas.
At present, the entire contingent of exploration drill rigs on site is within the $3.50 optimize pit shell. And more specifically, now that we're moving out of the wet season, we'll have more control and say on where the rigs are placed, which was previously dictated by geography and weather. The plan for the coming quarter is to really focus in on the 2 thicker and higher-grade chutes, especially the Equinox chutes, and preferentially and systematically test that potential.
And I look forward to providing results for that drilling in the next quarter.
So with that, I'll hand it over to Jamie.
Jamie C. Sokalsky
Thanks, Rob. As Aaron mentioned at the start of the call, net earnings in the first quarter were up 3% from the same prior year period to $1.03 billion or $1.03 per share. On an adjusted basis, net earnings increased 8% to $1.09 billion or $1.09 per share from the same period last year.
The significant adjusting items include $93 million in impairment charges, primarily related to the write-down of an investment in Highland Gold, which was partially offset by $36 million in gains from the sale of assets, foreign exchange gains and unrealized gains on non-hedge derivative instruments. EBITDA increased 9% to $2 billion from the same prior year period. Our quarter 1 operating cash flow $1.27 billion and adjusted operating cash flow of $1.37 billion compared to operating cash flow and adjusted operating cash flow of $1.44 billion a year ago. Our operating cash flow in the quarter was reduced by an increase in working capital balances, primarily due to the timing of gold sales and increased tax payments.
On a total cash cost basis, our quarter 1 cash margin increased 20% to $1,146 per ounce from the same prior year period. While on a net cash cost basis, including the copper credit, margins were 16% higher than the year-ago quarter at $1,259 per ounce. These results and the margin growth we've demonstrated consistently over the past several years clearly highlight Barrick's strong leverage to the gold price.
And we benefit from having a diversified operating portfolio, which increases the stability of our operating results, and our input cost hedging mitigates exposure to foreign exchanges and oil prices, which also gives us greater predictability to our earnings. Approximately 60% of our consolidated production costs are denominated in U.S. dollars. Our largest currency exposure is the Australian dollars, so we are substantially hedged on our remaining 2012 operating and administrative expenditures effective average rate of just
AUD $0.81 to U.S. For 2013, about 85% of our expected operating expenditures are also hedged, an effective average rate of just $0.79, and we have additional coverage well out to 2016 levels, all below current rates.
And we've also been mitigating the impact of higher oil prices through the use of financial contracts and production from Barrick Energy. Our combined financial and natural hedges provide protection for about 80% of our expected remaining 2012 fuel consumption. We also have floor protection in place on approximately half of our remaining 2012 copper production at an average price of $3.75 per pound and have 100% participation to any upside in copper prices.
Realized copper prices in the first quarter benefited from provisional pricing adjustments of $0.19 per pound due to the increase in market copper prices from year-end levels, which more than offset the amortization of premiums we paid for our copper position. In addition to our input cost management, our cost profile has also benefited from the contributions of new low-cost mines like Cortez. As a result, we realized significant margin expansion and earnings and cash flow growth with the increase in the gold price.
You can see that this slide highlights our exceptional financial leverage and shows that the company's earnings and cash flow have substantially outpaced the rise in the gold price over the past 7 years. Since 2004, Barrick's cash flow per share have increased by about 500% and earnings per share are up about 900% compared to the gold price increase of 260%.
Turning to our financial position. At the end of the first quarter, we had a cash balance of $2.7 billion and the gold industry's only A credit rating. We continue to generate very healthy operating cash flow and started the year with adjusted operating cash flow of $1.4 billion. In addition, we have $4 billion available under our 5-year revolving credit facility after repaying the $1 billion that was drawn on in early April. Our overall financial strength and liquidity positions us well to make high return investments in our projects and also, to provide a progressive dividend to our shareholders.
As Aaron mentioned earlier, we increased the quarterly dividend this morning by 33% to $0.20 per share. The substantial increase reflects not only our positive outlook on the gold price, but our continued strong financial results. We have a consistent track record of dividend increases, and this latest increase marks the fifth time we've raised the dividend since 2006. The current $0.20 quarterly dividend represents more than a 260% increase in capital returned to our shareholders in the last 6 years or a 24% compound annual growth rate. It's part of our balanced approach to capital allocation, which is a focus on extracting the highest rates of return for our shareholders, while also continuing to return capital on a sustainable basis.
Looking at our 2012 outlook, we have maintained our gold production guidance of 7.3 million to 7.8 million ounces for the year at total cash cost of $520 to $560 per ounce or net cash cost of $400 to $450 per ounce. Our gold production in the second quarter is expected to be lower than the first quarter, primarily due to mine sequencing at Lagunas Norte and Cortez and some planned maintenance of the roaster at Goldstrike.
Overall, gold production is expected to increase in the second half of the year, mainly as the result of Goldstrike and Lagunas Norte returning to higher production levels and also, with the commencement of production at Pueblo Viejo.
Our second quarter total cash cost per ounce are expected to be higher than the first quarter, in line with the lower anticipated production levels, but are expected to decrease thereafter from the second quarter levels in the second half of the year as lower cost mines contribute a greater proportion of overall production.
We continue to expect full year copper production of 550 million to 600 million pounds. Our total copper production is expected to increase in the second half of the year primarily due to higher production at Lumwana and also the startup of production at Jabal Sayid. With our first quarter results, we've also adopted the Brook Hunt C1 cash cost methodology for calculating copper cash cost per pound in order to better conform our presentation to other significant copper producers.
The primary difference between the C1 cash costs and our previous total cash cost per pound calculation is that royalties and non-routine charges are excluded from C1 cash costs as they are not direct production costs. Based on the C1 cash costs methodology, our original copper guidance would have been in the range of $1.80 to $2.10 per pound. Due to the higher-than-expected production cost at Lumwana then, full year 2012 C1 cash costs are anticipated to be slightly higher at $1.90 to $2.20 per pound. Our total CapEx guidance is also unchanged at $5.5 billion to $5.9 billion.
Before turning it back to Aaron, I would like to make a few brief comments on our outlook for gold and copper prices, an outlook which continues to be very positive. Our expectation is that the policy responses to the global financial challenges, like the eurozone issues, will continue to put pressure on reserve currencies, reinforcing gold's appeal as an alternative currency and that one that retains its purchasing power. There are also some very supportive industry-specific trends at work, which will complement this.
On the official sector front, central banks purchased 455 tons last year, almost 6x the level in 2010. And we've just seen recent buying from Mexico, Russia and Turkey, which added about 45 tons in March. There continues to be a huge attitude change with the central banks. The high inflation rates in India and China are also increasing the appeal of gold as a way to protect capital, and there are more and more ways to buy gold as a result of continued Asian market deregulation.
For copper, GDP growth rates and the industrialization of emerging economies continue to bode very well for increased demand, and our expectation is that mine supply copper is expected to be constrained over the longer term as the industry continues to be challenged to provide a supply response to this expected increase in demand. So we should see demand continue to outstrip supply well into the future, and we continue to remain quite bullish on both copper and gold.
With that, I'll turn it back over to Aaron.
Aaron W. Regent
Thanks, Jamie. So to summarize, as Jamie said, we're maintaining our gold production and cost guidance for 2012, with the expectation that the second half will be stronger with respect to production and lower cost. We believe the fundamentals for gold and copper are positive, and as the largest gold producer, with a strong cost profile, we will be and continue to be a major beneficiary in the current high price metal environment.
Our world-class gold projects are nearing completion. PV will begin contributing production in the middle of this year, and Pascua-Lama will be just behind that. We have a suite of other large projects that will continue to advance and derisk and create options for us for the future. And as Rob indicated, we expect further positive news from our exploration efforts, and we'll provide a more detailed update with our second quarter results. And we will constantly be maintaining a sharp focus on our responsible mining practice and continue to look for ways where we can do better to strengthen our performance.
So that concludes the formal part of our presentation. And at this point, operator, we'd like to turn it over to questions.
Question-and-Answer Session
[Operator Instructions] Our first question comes from the line of Stephen Walker with RBC Capital Markets.
Stephen D. Walker - RBC Capital Markets, LLC, Research Division
Just quick questions. The first one is on the thiosulfate technology. I guess, the question is twofold. First of all, the expected 2014 production of 350,000 to 400,000 ounces, is that effectively going to replace declining grades at the existing -- through the existing open pit and underground or will that be an incremental improvement to the existing production profile? Or if you could give us some sense of where production could be in 2014 vis-à-vis where we'd be in, say, 2012. And then, just second part of that would be -- my understanding is that this technology allows you to process more carbonaceous or blend the carbonaceous ore with some of the sulfide material in the autoclaves. Could you give us a sense of maybe the grades that you would expect to be processing through the autoclaves or through using the thiosulfate technology?
Robert L. Krcmarov
Maybe I can try and answer that. Let me start at tail end of the question. You're quite correct. This technology is going be amenable to process material that's going to be carbonaceous. So it's basically material that would have been treated in the roaster later in the life of the operation. We're bringing those ounces forward. They're not totally incremental because the overall profile of the other material has decreased slightly, so this will not be totally incremental. But there will be partial increments. And the grades, I'm not sure, I don't have it in front of me, but they'd be probably close to 2 to 3 grams, something like that.
Stephen D. Walker - RBC Capital Markets, LLC, Research Division
Okay, great. And then just on the dividend policy, congratulations on the increase in the dividend. This is again roughly an 18% payout of earnings. I'm just curious. Is there a goal or is there a guidance that the board and management are using as far as what the dividend policy is going forward? The 25% -- 24% compounded growth is impressive, but is this a level that we can expect going forward? And as part of that, where would you put, I guess, debt repayment, Jamie, in the use of capital aspect of the strategy between capital spending, paying down debt and increasing dividend payout?
Jamie C. Sokalsky
Why don't I take that, Stephen? We don't have a specific target from a payout ratio perspective. We really are trying to balance the advance for capital or the opportunities to deploy capital, whether be into developing projects or balance sheet management and returning capital back to shareholders. So I think when we look at the cash flow generation of the company, we can look at those 3 different buckets and allocate the capital accordingly. I think that what we are trying to signal is we do have a policy of paying the progressive dividend in line with the financial resources and the earnings generation of the company. I think the dividend announcement today is kind of consistent with that. It's the track record that has been established over the last 5 or 6 years, and we hope to continue to -- continue that trend in the future.
Aaron W. Regent
And Stephen, maybe I can just add that we definitely are focused on using some of our free cash flow particularly early as that starts to increase next year. We're paying down some debt. We have some debt maturities next year, and we are definitely looking at using some of that cash flow to reduce our debt.
The next question comes from the line of Greg Barnes with TD Securities.
Greg Barnes - TD Securities Equity Research
Reading through the press release, as mentioned in the Cortez Hills lower zone and you're doing a pre-feasibility study on that. It's going to be done by the end of 2012. I'm just wondering what it is you're looking at there, what's the concept and where is that taking you.
Peter J. Kinver
Greg, it's Peter here. The Cortez Hills lower zone is really a zone of ore that will not be taken out by the pits, and we're looking at how we can get access to that through a ramp system and a series of raised board shafts. And that's basically engineering work to figure out how we can actually do it.
Greg Barnes - TD Securities Equity Research
Any impact on production longer term? Does maintain the underground at current levels?
Peter J. Kinver
This would be probably incremental ounces to the current underground production. But it's still too early to actually put a number on it on the level of production.
Greg Barnes - TD Securities Equity Research
Just a follow-up to Steve's question on the thiosulfate, and you said a partial incremental production boost. How partial are we talking about?
Peter J. Kinver
Well, the current production at Goldstrike is roughly about 1.2 million ounces a year. We didn't do the thiosulfate, and the production of Goldstrike would probably drift down to below 1 million ounces a year over the next couple of years. But by bringing this project in, we should maintain more or less this level of production over the next few years.
The next question comes from the line of David Haughton with BMO Capital Markets.
David Haughton - BMO Capital Markets Canada
Just picking up the thread of this thiosulfate again. Is this allowing you some flexibility for how the Goldstrike facility could be used for potentially Turquoise Ridge in the future?
Peter J. Kinver
Yes, that's one of the equations. I mean, we have to look at where can we get the maximum value if we don't want to extend or expand existing facilities. So obviously, we will be doing trade-off studies to look at where we get maximum value.
David Haughton - BMO Capital Markets Canada
Okay. Over to Cortez, a very strong quarter at Cortez. Are you expecting this kind of level of production for the balance of the year because if so your guidance appears quite conservative?
Peter J. Kinver
No, we expect to see the next 2 quarters come back to more of a lower run rate. We expect to see the Q2 drop by about 40,000 ounces, which is in line for the average for the annualized run rates.
David Haughton - BMO Capital Markets Canada
Okay. Because whether -- I was looking at the combination of Goldstrike and Cortez, the North American maintenance guidance might be maintained. But Cortez picking up some of the slack of a slower Goldstrike, are you expecting Goldstrike to reverse its position quite markedly for the balance of the year?
Peter J. Kinver
Goldstrike had a roaster shutdown in this quarter, which was a 14-day shutdown, which, obviously, impacts the production. But the shutdown is now complete and we'll see an improvement in Q3 and Q4.
David Haughton - BMO Capital Markets Canada
Okay. Switching now over to Lumwana, I understand that you had the weather impediments in the first quarter likely to have an adverse impact to second quarter. What kind of throughput rate and grade should we expect through second quarter and then into the balance of the year?
Peter J. Kinver
The grades for the second quarter is going to be more or less in line with first quarter, which is about 0.45. But as Chimiwungo comes in, we're going to see the grade move to the 0.55 to 0.6 and with slightly better recovery.
David Haughton - BMO Capital Markets Canada
Okay. And the throughput, should we expect to see that get up towards the 60,000 tons per day mark with...
Peter J. Kinver
Yes, correct. We will actually have -- because we got a better ore availability, we will be processing a couple of million tons a month more in the Q3, Q4 and slightly better recovery.
David Haughton - BMO Capital Markets Canada
Okay. And given the kind of thinking that you've got for the second quarter, the cost structure that we're seeing first quarter likely to be sustained through the second quarter, maybe a slight improvement, but then a marked improvement at the back end of the year with the additional ore body coming on. Is that the kind of way you're seeing it?
Peter J. Kinver
That's correct, yes.
The next question comes from the line of Paretosh Misra from Morgan Stanley.
Paretosh Misra - Morgan Stanley, Research Division
One question on your Lumwana where you had a lot of success in exploration. As you think about maybe potentially even a larger expansion longer-term, what are the smelting and the power bottlenecks in that region?
Robert L. Krcmarov
We're currently doing trade-off studies, looking at those very issues. We're doing an expansion feasibility or pre-feasibility. And one of the issues we have to look at is power, water, infrastructure, housing, smelter offtakes. And those will be part of the pre-feasibility.
Paretosh Misra - Morgan Stanley, Research Division
Got it. And second, just on your 2 projects and your feasibility in Cerro Casale and Donlin Creek, how would you compare the attractiveness of these 2 projects to each other? Is there one of these which is more likely to proceed early on? Or how should we think about it?
Aaron W. Regent
I think the 2 projects are probably comparable in many ways in that they're about, I think, high-quality deposits, but they also have a large capital cost associated with them as well. From a timing perspective, they really are out of sequence, and that Cerro Casale is much further advanced than Donlin Creek. As I mentioned in my remarks, Casale permitting will be likely completed towards the end of this year, so that project will be in a position to make a construction decision a lot sooner, where Donlin is probably going to take us 3 to 4 years the permit, so we're a bit further away from making a construction decision. I think with Casale, we are looking at again, and I think we've mentioned before, we have an active exploration program on the property. It's a satellite deposit called Luciano, and we're continuing to drill that out. And there's the potential, if it plays out of the way we hope, you might have an attractive sweetener, if you will, to the project, which might have positive implications in terms of how we might advance the project. So we're doing a lot of work in parallel. But as I said, towards the end of this year, we'll have greater visibility on what the various possibilities might be.
The next question comes from the line of John Tumazos with John Tumazos Very Independent Research.
John Charles Tumazos - John Tumazos Very Independent Research, LLC
The Pueblo Viejo sequencing sounded a little remarkable with large amount of gold and ore stockpiled and tailings just getting permitted and electricity just getting hooked up and the oxygen plant underway and sounds like the mine is 6 to 12 months ahead of the rest of it. And adding the Argentine delays, I guess, just illustrate the era we live in. And you have 6 or 7 incremental projects or brownfield round-outs that are much lower risk than Casale, Donlin Creek, Kabanga greenfields. Why not put the greenfields all on the shelf? It's pretty clear that none of the big investors believe anyone's NPV model, and $5.2 billion, $5.5 billion it's a lot of money to spend in 1 year.
Aaron W. Regent
Well, John, look, I think our strategy is one of advancing all of these projects, derisking them and then giving us choices. And you're right, we will then look at a comparison of returns, do-ability, risk. And in an ideal world, you'll then sort of sequence and allocate your capital accordingly. But I think the immediate focus for us right now is to finish the projects that we're constructing. We've got to get PV done. We've got to get to Pascua done and get Jabal Sayid done. Once we...
John Charles Tumazos - John Tumazos Very Independent Research, LLC
Sure, you can't drop the bomb on -- the issue is if you want your stock to go up, it might be good not to start too many until the world cools off and the engineers rob you less.
Aaron W. Regent
Well, what I was going to say John is we're going to focus are finishing these 3. And as we get through that, then we'll be making some decisions about what to do next. And your points are not lost on us.
The next question comes from the line of Greg Barnes with TD Securities.
Greg Barnes - TD Securities Equity Research
Aaron, on Pascua-Lama, you made some comments about a detailed review in Q2 on the schedule and on the CapEx. Does it look like you're slipping from the second half of 2013 startup?
Aaron W. Regent
Well, Greg, we're -- right now we're still working towards that date. And we've had some slippage in some areas. We've made progress in other areas. We've got mitigation and plans that are being developed to get us back on track. And so there's a lot of -- as you can expect in a project like this, there's a lot of moving pieces. I think what we're just highlighting is that we are working in an environment where it is challenging, and there are pressures from a cost perspective, inflationary pressures in Argentina, as an example, productivity issues at altitude. We are spending additional capital. I think we've highlighted this before. We are spending additional capital to keep the projects on schedule. We think that's a good decision given the cash flow that this mine could generate. I think that what we're saying, second quarter, we'll be looking at a number of different factors, and we'll be in a better position to give more specific direction on the numbers and the schedule. But as I said, we're still working right now towards the mid-2013 time frame.
Greg Barnes - TD Securities Equity Research
Just quickly back to Lumwana. I know in the original pit they had some problems at the beginning with some transition ore that really negatively impacted recoveries. Are you seeing the same type of ore -- transition ore at Chimiwungo or not, does it look cleaner?
Peter J. Kinver
Well, we haven't got to the ore grade yet. We're basically one bench away. We did drill some holes into that -- it's called the transition zone, and some of the transitional will obviously put to one side. And then hopefully get into the clean ores quick as possible.
Greg Barnes - TD Securities Equity Research
Well, you don't expect that to impact your recoveries in the second half of the year really?
Peter J. Kinver
Recoveries will improve, in fact, and we expect to see a couple of percentage points improvement because any ore that's going to have a very low recovery, obviously, won't treat. So we'll only try and treat the cleaner ore.
[Operator Instructions] Our next question comes from the line of Kalpesh Patel with JPMorgan.
John D. Bridges - JP Morgan Chase & Co, Research Division
It's John Bridges. I don't have a question I just wanted to congratulate Peter on leaving what I guess is a pretty stressful job with telephone calls in the middle of the night. I seem to remember a few on the street, including myself. So congratulations, Peter and best of luck in whatever endeavors you have in front of you going forward.
Peter J. Kinver
Thanks, John, I appreciate the comments. Thanks.
And there are no further questions.
Aaron W. Regent
Okay, before concluding, John, thanks for making those comments. And we are going to miss Peter. He has done an amazing job over his 9 years with the company. But he does leave a great structure in place, and as I said, we got Igor here, and Igor I think has got big shoes to fill, but he's up for it. So I think again, like you said, we want to just thank Peter, congratulating him for the success that he's had at Barrick. And the good news is he's not leaving the family. He's still part of the family for quite a while yet, and so you may still see him from time to time.
But with that, we appreciate everybody taking time. It's the end of the day, but we appreciate you taking the time, and look forward to seeing you on the circuit. But at the very least, we'll see you during our second quarter call. And with that, we'll call it a day. Thanks very much.
Ladies and gentlemen, that does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines.
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Thursday, September 19, 2013
The Real Life Darkness Dwellers
I like to think of my books as collages. They're composed of little scraps of information that I've collected over the years. In my brain, nothing weird ever goes to goes to waste.
If you've read Kiki #3 (or glanced at its title), you know that the book features a secret organization called the Darkness Dwellers whose mission is to explore and protect the (very real) catacombs underneath the city of Paris. I based the group on a real-life organization known as Les UX. (I've written about them several times on this blog.)
However, there's a relatively new group in Paris know as We Are the Oracle who could have provided inspiration for the Darkness Dwellers.
These ladies and gentlemen are known for throwing parties in "impossible locations." (Love it.) Think abandoned subway stations (sound familiar?), forgotten mansions, and the dark recesses beneath famous bridges.
More (including some great photos) here at the fabulous Messy Nessy Chic.
4 comments:
- Pickles Picasso said...
Yet another reason to go to Paris!
- September 20, 2013 at 9:33 AM
- Tesha'e Keller said...
Omg love it! I would kill just to get an invite! No kidding!
- September 20, 2013 at 6:46 PM
- Jada Cullen said...
Paris is so awesome!!!!!!!!!!!!!!!!!!!!
- September 20, 2013 at 8:25 PM
The line to get into the catacomes is horrible but its worth it:):)
- September 30, 2013 at 10:03 PM
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subset: commoncrawl


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Artist-in-Resident for our 2015-2016 Season
GREG DEAN is an actor, director and designer in Houston, TX. Over the past two decades, he has worked with the Catastrophic Theatre, Mildred's Umbrella Theater Company, Bobbindoctrin Puppet Theater, the Houston Shakespeare Festival, the Classical Theatre Company, Horsehead Theater, the Alley Theatre, the West-Mon Repertory Theater, the Urban Theatre Project and Infernal Bridegroom Productions.
He has also appeared in the films Backroad, Persistence of Vision, Urban Shakedown, Let It Come Down, and music videos for The Manichean's "Leopards," and Glass the Sky's "Touch."


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2 posts tagged with spj.
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The Open Government Act
Secrecy no more? The first major overhaul of the Freedom of Information act in years is awaiting President Bush's signature. It will finally create an "independent" government agency to handle to disputes between records holders and information requesters. The passage of the act comes after, ironically, after an Arizona senator used a "secret hold" to block the bill. He was ferreted out by a group of journalists.
Senator Secrecy
A senator places a secret hold on a bill designed to counter secrecy in government. The Society of Professional Journalists, which supports the bill, smoked out Senator Jon Kyl (R-AZ) as the source of the hold, one of the more obscure parliamentary tactics possible in the Senate. The bill in question is the OPEN Government Act of 2007, which is an overhaul of the Freedom of Information Act. (See also.) Kyl claims the bill would force the release of "sensitive information." Kyl is also behind a measure that would criminalize the leaking of classified information.
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Once again, I must beg your pardon: my Father's Day entry in the Year of Blood is behind schedule, because sometimes you get the DVD when you need it, and sometimes you do not.
Regardless, here we are with a tribute to all that makes dads what they are: psychotic authoritarians whose desire to wreak retributive violence on their family is always just one bad day away from exploding. But heck, at least nobody ever saved their dad's mummified corpse in the basement while stabbing travelers in the shower, amiright?
The Stepfather: a long tracking shot across a suburban street ends on the upper window of a nice house, the music informing us that against all evidence, this house is goddamn terrifying. Cut to: the bathroom - this is only the second shot of the entire movie, mind you (less credits) - where we see a very youthful, very beardy iteration of irreplaceable character actor Terry O'Quinn, and he's just fucking coated in blood. From there, O'Quinn calmly washes his face and takes a shower (if you have, for reasons of your own, ever wanted to see Terry O'Quinn's junk, this film provides an opportunity), shaves, dresses, and takes a valise with him into the hallway, down the stairs, and as the camera tracks with him down the stairs we find them increasingly chaotic and disheveled, with blood smears on the wall from about halfway down, and once we get to the ground floor, we find that it is a nightmare out of Hieronymus Bosch: blood is absolutely everywhere, and now fewer than four corpses are spread out around the living room. O'Quinn takes a ride on a ferry, and nonchalantly drops the valise into the ocean, wiping out the last trace that he ever lived in that house. As he stands, placidly enjoying the sun, his face dissolves into that of a teenage girl, Stephanie Maine (Jill Schoelen), and the story properly begins, and if you can make it this far into the movie without feeling like you've been thrown over a cliff with no ground in sight, you are made of stronger stuff than I.
There are many reasons to open a film this way - to punch the view right in the gonads, for one - but the one that arguably matters most is because it tells us right at the start what kind of movie The Stepfather is going to be. The film came out in 1987, you see, and that largely meant one thing as far as horror movies and thrillers were concerned: slashers, slashers everywhere. The Stepfather is not a slasher film. Frankly, I don't even know that I can bring myself to call it a horror film of any stripe: this is a good old-fashioned suspense picture, not even all that far away, plotwise, from Alfred Hitchcock's own Shadow of a Doubt, and anytime you're able to drag Hitch's name into a conversation, you're at least a couple of steps removed from the "Jason Voorhees kills the shit out of horny teens with a machete" school of thrillers.
And this largely irrelevant generic distinction is all because of that opening scene, which finds the filmmakers laying all their cards on the table in the first five minutes, and setting up a subsequent 80 minutes in which we will be constantly aware that O'Quinn's character - a man of many names and no solid identity - is one breath away from slaughtering Stephanie and her mother, his new wife Susan (Shelley Hack). Since I've already invoked the holy name of Hitchcock, I shall refer to his famous allegory of the bomb under the table: set it off while two people are talking, the audience is momentarily shocked. Show us the bomb being placed under the table with a timer, we have ten minutes of agonising suspense watching those same two people idly chatting and not realising that they're about to explode. That's exactly what we have here, except that Stephanie isn't completely unaware that something is amiss: she hasn't trusted her new stepdad, "Jerry Blake", for one minute, though she can't entirely explain this feeling in a way that makes sense to anybody else.
So no, we are nowhere near the stuff of slasher movies, and if not for the horrible accident of timing that saw The Stepfather released in the heyday of tacky, pornographically violent American horror, I suspect it would be much more widely respected; like the previous year's The Hitcher, it is part of the American slasher wave only insofar as it pointedly stands apart from the movies to which it bears a certain superficial resemblance, presenting a much darker, more psychologically complex, more consequential vision of violence done unto innocents.
Of course, the mere fact that this is a thriller more than a horror film doesn't argue for or against it in any particular way: nor does a great opening scene mean anything once it's over, as a whole lot of '80s genre movies have proven. Fortunately for The Stepfather, it has other things in its favor, first among them Terry O'Quinn, whose performance is astoundingly good, and I say that as an entrenched fan of O'Quinn in all things and thus not prone to being astounded by him. But oh, his performance as the stepfather - Jerry, Bill, Henry, whichever name you prefer - is magnificent, nuanced and layered and always just slightly too overtweaked for us to lose sight of how deranged this man is, but also warm and friendly enough that it's not hard to understand why a lonely widow would be willing and eager to marry him. There are more grace notes than I can even start to mention: his nasty, satisfied smile when he gets to comfort his stepdaughter on the death of her psychiatrist (whom he killed); the way he has to take a moment to re-boot his personality when a little girl catches him out on mixing up which family he's living with at the moment; his sad expression when he watches an ideal nuclear American suburban family like he's always wanted and can't ever quite get right. There is, of course, a famous moment when he frustratedly asks himself, "Who am I here?" in the way that a normal person might try to recall where they left their keys, and O'Quinn underplays it perfectly. Where a hundred actors might have used the audience's knowledge of what's happening as an excuse to indulge in any number of crazy psycho tics, O'Quinn always makes certain to contribute to the truth of the character and the scenario, avoiding any and all moments where he plays big just because, as an actor, that would be the fun thing to do. It's one of the best movie psycho performances I have ever seen, and legitimately great screen acting by any measure.
The other major point in the film's favor is the direction by Joseph Ruben, whose career is littered with minor, decent thrillers (his immediate prior film, Dreamscape, was the second recipient ever of the PG-13 rating), and whose work here is not up to the masterpiece level of, well, Hitchcock. But it's still awfully intelligent filmmaking, with a number of sinewy camera moves that suggest the furtive movements of a predatory animal, and a flawless juggling of two POVs, switching from the Jerry-dominated scenes to the Stephanie-dominated ones without it ever feeling like the movie is out of balance. The whole film is kept taut enough that the shock of the opening moments never fully dissipates, and Ruben keeps the film moving fast enough that we're never allowed a chance to relax for even a moment.
These things are enough to make The Stepfather a singular and tremendous thriller, in despite of a number of debilitating flaws. Not least of these is the absence of any other performance that's nearly at the level of O'Quinn's: Schoelen is fine and no worse, but Hack is kind of shrill and dreadful, and it's gratifying that she's kept to the sidelines for the vast bulk of the movie. There is a subplot involving one of the stepfather's former brothers-in-law (Stephen Shellen), investigating what could possibly happen to his sister's murderer, that serves to drive the plot to a halt every time it shows up, and ends up failing to pay off anyway. Worst of all is the score by Patrick Moraz, at the time the keyboardist for The Moody Blues during that band's most objectionably synthesizer-heavy phase, and his work on The Stepfather sounds exactly like the worst-case scenario of what a horror movie progressive rock score with a drunken infatuation with synths ought to sound like; nor does Moraz understand subtlety or restraint, screaming at us with his terribly electronic noodling that THIS MOMENT IS NOW SCARY SO BE SCARED and often stepping on the movie's toes in the process.
On the other hand: holy shit, Terry O'Quinn. And that's really all the movie needs to work: a sublime villain, with tight, driven direction, perfectly sturdy, effective writing, and a heroine who we can believe in even if she never ignites the soul as a marvelously crafted character the way her adversary does. I do wish The Stepfather could be an unabashed masterpiece of suspense cinema to match its titanic namesake, but for the sheer pleasure of having been introduced to Jerry Blake/Henry Morrision/Bill Hodgkins, I am will to bump "merely good" up to "pretty damn special".
Body Count: 7, more than half in the first four minutes. It's not really a body count movie by any stretch of the imagination.
21 June 2012
Also sprach Tim at 11:44 PM
2 comments:
- RickR said...
"On the other hand: holy shit, Terry O'Quinn."
I concur.
If nothing else, LOST did us the favor of rooting out a few supremely talented character actors who had been laboring away in workmanlike semi-obscurity, and turned them into stars. (Michael Emerson's another one.)
- Gavin said...
"But heck, at least nobody ever saved their dad's mummified corpse in the basement while stabbing travelers in the shower, amiright?"
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Advanced Micro Devices' next-generation form-factor processors for socket AM2 systems have been listed by online store and the shop even takes pre-orders on the devices. This may be a proof that AMD's transition to the new form-factor will be relatively quick.
National Toner Warehouse store based in Advance, North Carolina, have started to list AMD processors for the socket AM2 infrastructure in its price-list. The offerings include such processors as Athlon 64 FX-62, Athlon 62 X2 5000 and Sempron 3600+, which have not yet been announced officially. The prices on the novelties are relatively high, for instance, the Athlon 64 FX-62 costs about $1400, whereas its predecessor, model FX-60, can be obtained for around $1000.
Usually stores and system builders do not start to offer processors about 1.5 months ahead of official launch, as chipmakers usually require their partners to remain quiet about unannounced microprocessors and not always stores and computer makers have enough chips at the date of the formal release. Listing of AM2 chips at the store may mean that AMD may start shipping the chips significantly ahead of launch.
Advanced Micro Devices is expected to officially unveil its dual-core and single-core processors, such as AMD Athlon 64, Athlon 64 X2, Athlon 64 FX and AMD Sempron, in socket AM2 form-factor and with DDR2 memory support on June 6, 2006. For Sunnyvale, California-based chipmaker the highlighters of the Computex 2006 show that begins on that date are expected to be the Athlon 64 FX-62 and Athlon 64 X2 5000+ processors that will support dual-channel DDR2 memory.
Originally it was expected that AMD's Athlon 64 processors in new socket AM2 will only officially support DDR2 667MHz (PC2-5300) memory modules, but will be capable of working with 800MHz memory as well. But recently it was reported that the new processors in AM2 form-factor will be able to work with high-speed 800MHz (PC2-6400) DDR2 memory legitimately.
AMD did not comment on the news-story.


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Rhinology and Skull Base Surgery Fellowship
Overview of Fellowship
This one-year fellowship program provides comprehensive training in the medical and surgical management of sinonasal inflammatory disease, anterior and central skull base lesions (utilizing both endoscopic and/or open management), allergic disease, and orbital pathology. Emphasis is also placed on research that ranges from basic science translational work to clinical trials. Our goal is to provide the highest-quality, broad-based training that will impart fellows with the knowledge and expertise to develop a successful tertiary Rhinology/skull base surgery practice.
Diversity of cases
The fellow will actively participate in a wide array of surgical procedures. Between the three faculty members 475 total OR cases were performed over the last 12 months. The operative experience includes primary and revision endoscopic sinus surgery, endoscopic and open frontal sinus surgery, endoscopic septoplasty, orbital decompression, as well as endoscopic CSF leak and encephalocele repair. The fellow also will participate in expanded endoscopic cases of midline and the anterior skull base, including surgery of the pituitary, suprasellar cistern, olfactory groove, clivus and infratemporal fossa. The fellow will also have an opportunity to perform open approaches for tumor pathology of the skull base.
Clinical Rotations
Fellows rotate with each of the three faculty members in an apprenticeship model. Elective time is also provided to allow fellows to focus on specific skills or areas of interest.
Weekly schedule
Varies with each faculty member. However, the fellows will have their own clinic one half day per week as well as time to schedule cases from their clinic.
Research Responsibilities
Fellows are expected to participate in research during the fellowship. There are numerous opportunities in basic science, translational, and clinical research. Fellows are provided administrative time as well as elective time to complete their research goals. Fellows are expected to produce at least 2 manuscripts during their training. Travel expenses are also provided for presentations at national meetings.
Call schedule
3 days per month as faculty member
Requirements for Appointment
• Applicants must be American Board of Otolaryngology-Head and Neck Surgery eligible/certified.
• Valid North Carolina State Medical License
• Ability to begin July 1st.
Appointment Details
• Position of Clinical Fellow
• Salary commensurate with PGY-7 level
• Standard medical, disability, and malpractice
• 3 weeks of vacation
• Availability and support to present research at national meetings
• Educational fund
Application information
Applications are reviewed during first 2 weeks of February and interviews are typically offered by the end of February. Two interview dates will be available during April and May.
Deadline for application
February 1.
Contact information
CB# 7070 Department of Otolaryngology-Head and Neck Surgery Division of Rhinology, Allergy, and Sinus Surgery University of North Carolina- Chapel Hill Chapel Hill, NC 27599-7070
919-966-3342 (office) 919-966-7941 (fax)
email: email@example.com or firstname.lastname@example.com
Fellowship Description/Aims | Department Mission | Requirements for Appointment | Benefits | Application | Contact Us


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July 2011
Before I regale you with my innermost brilliant thoughts again, let me acknowledge the passing of "Red Sox Royalty." 82 year old Dick Williams, the manager of the 1967 "Impossible Dream" Red Sox, has passed at the age of 82. The Hall of Famer was felled by a ruptured aortic aneurysm. Williams was the very first manager I was aware of as a young boy. He piloted the '67 Sox to a seven game World Series meeting with the immortal Bob Gibson and the St. Louis Cardinals. He later guided Oakland to a pair of World Series titles in 1972 and 1973. He also took the Padres to the Fall Classic in 1984. Williams was elected to Cooperstown in 2008. Just a random thought. Dick Williams has passed at age 82 and Jack McKeon, at age 80, is currently managing the Florida Marlins. Skipper, RIP.
It boggles the mind when you think of all the injuries and/or callups the PawSox have endured, yet still remain in the very thick of the I.L. North and the Wild Card playoff chase. I am hard pressed to think of anyone who hasn't made a significant contribution this season. I'm no "brown-noser", but allow me to be the first to say that Arnie Beyeler, in his first season as manager of the PawSox, warrants strong consideration as the 2011 I.L. manager of the year. There is obviously, still a long way to go, but Arnie has masterfully shuffled whatever deck of cards he is handed, on any given night. One of the latest "cards" is infielder Ryan Khoury. Khoury is off to a fast start in Pawtucket. It's his third stint in a Pawtucket uniform.
What makes this time around so special, is that Khoury was rescued from baseball "purgatory". He was released by the Red Sox late in Spring Training and hs found his way back. "I'd be lying if I said I'd ever expected to be back in a PawSox uniform. It's been awesome. Just like I remember it. Great support. It's great to be back." Khoury was all smiles as he talked about his return to professional baseball. He laughed out loud as I stole a line from ESPN legend and basketball Hall of Famer, Dick Vitale about Khoury having the "Greatest comeback since Lazarus." After his release, he was contacted by former PawSox teammate, Zack Borowiak, a coach with the independent Gateway Grizzlies. Khoury considered his offer to play, and accepted. Khoury compared the level of play to high-A ball. The major exception was that the pitching in indy ball is not as good on a consistent basis. Khoury said one of the best "perks" for him with the Grizzlies came on the bus. "It was kind of different for me. I was about the highest ranking or highest tenured guy in terms of playing in Triple A. It was kind of weird getting on the bus and getting the best seat, or getting a seat to myself. Those bus seats in independent ball are pretty valuable. The buses aren't as big. They're not as spacious. It was kind of cool to be able to do that for once." he chuckled. As a point of reference, on the PawSox bus, Kevin Millwood, a former National League All Star and winner of 159 Major aleague games is the guy who should always get the seat he deserves.
Ben Crockett, from the Sox front office called Khoury and made him the offer he couldn't refuse. Did he want to come back? Silly question. "Obviously, it was exciting and something I was eager to get back to." With this new lease on life, that not a lot of guys get, Khoury almost feels like he is playing with "house" money. "Oh yeah, but a couple of years ago I tried to start taking pressure off myself. That's when I'm the most loose and have the most success on the field. There's still wanting to prove yourself and wanting to play well for the team. We're right in the playoff hunt and you want to play as well as you can." Khoury is off to a fast start. He homered in his first at bat back and hasn't slowed dow, hitting near .300 so far. He admits that the fact that he has played in Triple A before with the PawSox has been helpful. "In terms of being comfortable and knowing the ropes and the guys, Yeah, it's been really helpful." Just another trump card for Arnie Beyeler.
THAT WASN'T JOE WALSH AT McCOY
I am a life-long Eagles fan. Not Boston College. Not Philadelphia. Eagles. As in Glenn Frey and Don Henley. Those Eagles. Imagine my excitement the other day when I heard the James Gang was going to be at McCoy Stadium. The James Gang was lead by current Eagle, Joe Walsh. They were never really too popular outside of Ohio in their heyday (roughly 1968-1977) They are a little more well known now, due to Walshs' success with the Eagles. Walsh is a legendary guitarist and in his day, a legendary partier. Any how, I was all revved up, until Dan told me "No, no. I didn't say the James Gang. I said James Kang." Ohhhhhhhhhhhhh. Never mind.
James Kangs' return to Pawtucket was just as exciting. The 5'9, 175 pound infielder belted a home run, a three run blast into the bullpen at Frontier Field to help lead the PawSox to a 6-3 win over the Red Wings. Kang was as shocked as anyone that he went deep. It was just his second professional homer, ever. "I was a little surprised. When I hit it initially, I knew I hit it well, but I didn't think it was going out. It felt good off the bat. I jumped on it." Kang admitted to getting a little "jacked" after going yard. "Of course, it was very exciting. I wasn't sure if the ball went over at first because it hit a railing and it bounced back onto the field. I was just happy to get a good piece of the ball and get some rbi's."
Kang follows guys like Ronald Bermudez, an outfielder that has made the jump to Pawtucket, directly from A ball, in Salem. It speaks volumes to the job the Red Sox do as an organization, that they can plug in young guys with little experience and still see great results. " Initially, I think it's the coaching staff that makes everyone feel comfortable. Guys like me and Ronny Bermudez coming up from the lower levels. They make us feel at home as we adjust to a higher level. They tell us to maintain our approach and don't change anything." Kang says they rely on older teammates. "The older guys help us with pitchers, adjusting our defensive positioning, things like that."
Kang finds inspiration from a man who is physically similar in stature. Former PawSox infielder and 2008 American League MVP, Dustin Pedroia. "It's always nice to see that there are smaller guys who make it up to the Big Leagues. I look up to a player like Pedroia, because it makes me feel that I could accomplish the things that he does."
Kang realizes the facts of the game. He realizes that his stint in Pawtucket could be short-lived. He takes a business-like approach and tries not to think too far ahead. "I try to take it one day at a time. I try not to think about what's going to happen the next day because nothing is really certain. One day at a time and I don't worry about it."
Kang heard from a lot of people after his three run homer, all with congratulations. "I heard from just about everybody I know. People back ion Boston, folks who were watching it on TV. A lot of texts from my teammates back in Salem, too. It felt nice." Kang welcomed the contrast. His season in Salem hadn't been going all that well. "It's been kind of a struggle. Playing time wasn't that consistent. I've been trying to figure out how to be a role player, not playing every day. It's a big adjustment. It's my first full season." The name "Kang" just rolls off the tongue. I like saying it. According to James, I'm not the only one. "A lot of people call me 'Kangaroo' or 'Killer'. They mess around. Yeah they seem to like it."
After I got over the shock of the James Gang not coming to town, I asked James Kang about the musical group. Surely, over the years, you've enjoyed some of their music?? The young Kang laughed. "I've never even heard of them." A few more three run homers and Joe Walsh will want his autograph.
The PawSox faced Rochester again on the Fourth of July and again, they thumped the Red Wings 6-3. Lars Anderson and James Kang each bashed three run homers to lead the way. The Red Wings were decked out in "flag" jerseys. The red and white stripes, etc. I liked them, Dan didn't. The Wings were auctioning off the uniform tops to benefit charity. Looking dashing, playing first base for Rochester, was our old friend, Aaron Bates. Bates was released by Boston, this spring and signed in May with the Twins. Bates was disappointed with his departure from the Sox. "It's always tough when you leave a situation with so many friends. We'd been together a long time. Basically, I grew up with those guys. It was tough, but I think the change has been good. I'm grateful that the Red Sox gave me the opportunities they did. It was tough to say goodbye."
Bates, who played in 122 games for Pawtucket last year sensed that the shoe might be about to drop late in March in Fort Myers. "I knew that unless there were some real injuries, it would be tough. They had a pretty full roster. It looked like it was going to be a tough situation. Going into the office, I had a good idea that something was about to happen. Arnie (Beyeler) came and got me. It was just one of those things. You've got to be professional about it. I thanked them for the opportunity and everything else." Bates says it's not ego or anything like that hurts when you're cut free. He says it's much more simple than that. "It's the camaraderie you miss most. It's your first organization, you grew up with these guys. It's the only thing you know as far as professional baseball goes."
Bates was fortunate. He was "on the beach" for a relatively short time after his release. "I was just working out in Boston with a former teammate, Jeff Natale. Working at his facility "Frozen Ropes", working some camps. The Twins got in touch with me early in May. They had suffered injuries this year, like Boston sustained in 2010. Their front line had been depleted, so they made me an offer. It was an easy decision for me. I'm excited to be a part of the Twins organization." Aaron says despite his release, doubt never crept into his mind. "No. I had a good Spring Training, probably the best one I ever had. I felt good all Spring. I was really swinging it well. I knew I wasn't done. I knew I could play the game. It was just a matter of whether an opportunity arose. A matter of being patient."
Bates and his fiance, Lacey Wilson maintain their residence in Boston. Wilson is the former Miss Massachusetts (2010) and the daughter of San Jose Sharks general manager, Ron Wilson. Bates was able to muster a little joy for the Stanley Cup Champion Boston Bruins. "I was very happy for the Bruins. I just wish the Bruins had to face the Roberto Luongo that the Sharks faced in the Western Finals. The way the Bruins played after their guy (Nathan Horton) got hurt was inspiring. Luongo against the Sharks was very similar to Tim Thomas against the Canucks. You just couldn't score on him. This guy was Patrick Roy and Dominik Hasek all rolled into one." For the record, I'm very content with the Luongo they faced.
Bates' only Big League time came in 2009, when he debuted with the Red Sox and hit an impressive .364 in his brief time there. "It was something I'll never forget. Making your Major League debut at Fenway Park. It was against the A's. I grew up in the Bay area, and having my family there…my friends back home got to see it. There are so many great guys up there. First time on a road trip, Mike Lowell took me out to dinner. The whole thing was something I'll never forget. Being a part of the Red Sox organization was a great experience. Unless you're in it, you don't realize how great the fans are. How smart they are. It's packed every night and the fans make it more special."
One of my favorite TV shows when I was growing up was "Happy Days." Teenagers growing up in the 1950's in Milwaukee, Wisconsin. The breakout star of that show was Henry Winkler, the actor who portrayed Arthur "Fonzie" Fonzarelli. The Fonz was ultra cool. He could seemingly command women with a snap of his fingers. He could start a jukebox or pinball machine with the bump of his fist. The one thing he couldn't do, was say the word "wrong". "Sorry, Mr. C- I was wwrrrrroooo", "Hey Rich, I might have been wwrrrroooo". A recurring joke, that always got a laugh. I am not the Fonz. I will admit that I was wrong, for at least one day.
The other day, in this very space, I wondered aloud what the Red Sox were thinking, promoting Yamaico Navarro. I detailed his history in 2011. His struggles with the PawSox since his return from the DL. (5-43, .116). I did everything but call the Red Sox nasty names for the promotion. I even got into it a little bit with Bostons' Director of Player Devlopment, Mike Hazen, when he appeared on "PawSox Insider" Saturday. "Who would you suggest we promote?" He asked me.
With the game on the line on Saturday night in Houston, Navarro got his first major League at bat of 2011, in a pinch hitters' role. He drilled a 3-1 pitch from J.A. Happ into the night. His very first Big League home run! That made it 5-2, Boston, as they eventually rolled to a 10-4 win. Navarro was caught by surprise. So much so, that he had to wear the helmet of an unidentified teammate. Navarro is a man with immense natural ability. The talent is not in question, not even for a millisecond. That homer may be the jump start Navarro needs. Tito Francona has tabbed him as the starter at shortstop on Sunday.
For the record, Mike Hazen, a man I like and respect very much, exchanged good natured text messages with me after his appearance on the show, and again, later that night, after Navarros' bomb. The Red Sox have a good track record with their development system, and when I doubt them, it is because I am such a huge Sox fan. Always have been. Nice job, Yamaico!!!
Pawtucket had a horrible day on Saturday, getting shut out in both ends of a doubleheader against the Scranton- Wilkes Barre Yankees. The PawSox managed a total of three hits in the twin bill (2 by Tony Thomas). My true regret is that Yankees Captain and future Hall of Famer Derek Jeter is rehabbing with AA Trenton, rather than with SWB. I would have loved to hear the reaction of the 10,000 assembled at McCoy when #2 stepped up to the plate. I also would have enjoyed the chance to interview my nemesis (even though he doesn't know he is.)
This has been a very busy week at McCoy Stadium. Aside from baseball, we enjoyed team President, Mike Tamburro unveiling Mondor Gardens outside the leftfield wall at the park. The serene setting, complete with statues of children playing baseball, park benches and lovely landscaping, is dedicated to the memory of the late Ben Mondor, the PawSox owner, who passed away last October. "Ben bought these statues over a year ago. It was just a question of where to put them. We were putting in this walkway at the time and he kept asking me when the walkway was going to be done. He just wanted to find a place for these. We thought that the perfect tribute to him would be a garden. that's why we did it. It's in a great area betwen the ticket office and the berm. All fans will walk by here. It's going to be a real special place. I can see him sitting on this bench and looking at the kids."
Mondor was a man who brushed aside fanfare and accolades. Ben was never interested in having a stadium named in his honor. That's why Tamburro feels that the Garden is the perfect tribute to the longtime PawSox owner. "We always talked about some type of "park" setting at the Stadium. This is perfect. It's a great day. It's a special day". After the brief ceremony ended, I told Mike what I pictured in my mind. Ben sitting in the Garden on a bench and jokingly telling us. "Alright you guys, I'm not paying you all to sit around and look at flowers. Now get back to work!" It would be nice to hear him one more time.
I'm not surprised that Matt Fox made the All Star team. The right handed pitcher clearly deserves the nod. It was interesting that he was the sole representative for the PawSox, however. We've compared Fox to a "Swiss Army Knife." One night he's the screwdriver, one night he's the bottle opener and on yet another night, he's the little pair of scissors. His versatility is what makes him so valuable. He has pitched well all season- 4-2, 3.73 in 18 games,(11 starts) Fox is second on the team in both strikeouts (62) and innings pitched (72.1).
I am surprised that Yamaico Navarro was promoted to Boston. Since coming off the disabled list for his oblique injury, Navarro has struggled, going 5-43 (.116) That's not going to "play" at Fenway. Navarro was on the shelf from May 7-June 16. I don't understand a lot of things the Red Sox do.
Still thinking about the masterful performance turned in by Kyle Weiland on Wednesday night at McCoy. Eight innings, 12 strikeouts, 1 hit, 1 run. It was truly a thing of beauty. Weiland tried to explain his success. "The last couple of times out, I didn't have my fastball command. I just tried to establish it. Usually when I do that, the other pitches follow." Weiland also showed appreciation to his catcher, Luis Exposito. "I gotta thank Expo too. He stuck with me and called a great game behind the plate." Weiland told me that his work between starts was also a big factor in his success.


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Quite the story could be written if you take each and every article about Sirius XM (NASDAQ:SIRI) and Pandora (NYSE:P) and bind them all together into a book. My guess is it would be thousands of pages long, and give little kids nightmares and parents headaches. Although so many people have read it, it seems only an intelligent few can predict the end.
This is not to say I'm intelligent. More often than not I'm the adult with the headache, or sometimes even the child with the nightmares. To me it seems the writing is on the wall here, and even though there may be 100 pages left, it's fairly obvious to me who will be alive and kicking at the end, and who will lay motionless and still on the ground.
To make money you want to be on the side of a winner. To make even more money you want to invest in a loser's failure. Because of this, there are two plays right now that deserve your attention.
Sirius XM : Winning!
You can cue the Charlie Sheen battle cry right here. Sirius XM is on a solid and steady path forward and upwards. They have a promising year ahead of them, and have been on a steady climb since last October when they bottomed out in the midst of America's apparent credit crisis that never really was. Consider the factors that will make 2012 a great year for Sirius XM:
- A modest price increase that should drive the bottom line.
- An increasing subscriber base, at a pace of over a million per year.
- Improving auto sales numbers and forecasts, driving additional possibilities for new subscribers.
- Increased penetration into used automobiles, again, driving subscribers.
- Roll out of Satellite Radio 2.0 (not speaking of new radios, but rather the evolution of satellite radio itself).
- The "clamp" effect of Liberty (NASDAQ:LMCA) now being able to make a move, and thus making shorting with serious money a very dangerous affair.
- Likely increases to guidance soon, either before the first quarter conference call, or within it.
Simply looking at the basic chart, anyone can clearly see the trajectory Sirius XM is on. It's up up and away, and I feel that there are great gains to be made moving forward.
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I continue to add to my position in Sirius XM as cash becomes available. I also invest monthly in call options to increase my exposure and potential gains. My suggestion? The stock is still a great buy as of the writing of this article at $2.27, and should be entertained as a strong buy as Sirius XM flirts with historical resistance around $2.35. Sirius XM is poised for a break out.
Pandora Media: A Crying Shame
I say crying shame here because it really is. For what is actually a cool little idea called the Music Genome Project, it just doesn't translate into a viable company today, and the stock has been reflective of the poor performance to date and poor guidance going forward. Consider the factors that will make 2012 a tumultuous year for Pandora:
- Reliance on a mobile data infrastructure that just is not ready for them.
- Reliance on audio advertising in a space which is generally untested.
- A recent quarterly report of misses and lower guidance chock full of expected losses moving forward.
- It is my opinion that the "free" model holds little to no customer loyalty. Ask yourself, what is the reason to stay if you are not invested in the product beyond the cool factor? What happens when something else is cool, and Pandora is not?
- Likewise, there is no hook to keep users tied to Pandora. The Music Genome Project is not enough of a hook.
- Low cost to entry for competitors. No walls, no moat, no barriers to entry for this company and thus, no safety in investment.
Looking at Pandora's chart since IPO, anyone can clearly see the trajectory that Pandora is on. It's down down down through the floor, and I feel that there are major losses coming very soon as the stock flirts with support at $10.
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I continue to consider buying puts or shorting the stock. I can't count the times I have suggested doing so, and then looked at the drops in the share price and wanted to kick myself for not taking my own advice. I have conviction that Pandora will fail, and am watching for one more "up" day to again entertain a short position. If I were to open up a short position it would be through put options with a medium term (3 to 6 months out) and one step in the money.
Each stock above affords an opportunity to make money in opposite directions. The question is, do you invest your capital with Sirius XM, and aim to make money by shooting for the stars? Or do you invest your funds in Pandora's trip to the grave, and aim to make money on the burial of a failed experiment? I think either way, you can't lose, and these are great plays for Friday and looking ahead.
Disclosure: I am long SIRI.
Additional disclosure: I am long SIRI June $2 calls.