Good morning, ladies and gentlemen, and thank you forstanding by. Welcome to Yamana Gold's Third Quarter Earnings Call. At thistime, all participants are in a listen-only mode. Following the presentation,we will conduct a question-and-answer session. Instructions will be provided atthat time. This conference call will contain forward-looking statementsthat involve a number of risks and uncertainties. Forward-looking statementsinclude, but are not limited to, statements with respect to the estimation ofmineral reserves and resources; the timing and amount of estimated futureproduction, cost of production; capital expenditures; future prices of gold andcopper, and timing of the development of new deposits; success of explorationactivities; permitting timelines; currency exchange rate fluctuations; requirementsfor additional capital; government regulation of mining operations; andenvironmental risks. Forward-looking statements are based on the opinions andestimates of management as of the date such statements are made. Risk factorsare discussed or referred to in the company's Management's Discussion andAnalysis of Operations and Financial Condition and Annual Information Form. Although the company has attempted to identify importantfactors that could cause actual actions, events or results to differ materiallyfrom those described in forward-looking statements, there may be other factorsthat could cause actions, events or results not to be anticipated, estimated,or intended. There can be no assurance that forward-looking statements willprove to be accurate, as actual results and future events could differmaterially from those anticipated in such statements. The company undertakes no obligation to updateforward-looking statements if circumstances or managements' estimates oropinions should change. Accordingly, participants are cautioned not to placeundue reliance on forward-looking statements. I would also like to remind everyone that this conferencecall is being recorded and will be available for replay today at 1:30 pm. Thereplay number is 416-695-5800 or toll free 1-800-408-3053, both with the passcode3239999 followed by the pound sign. I will now turn the conference over to Mr. Peter Marrone,Chairman and CEO. Please go ahead, sir.

Thank you for the introduction, and your attendance, gentlemenand ladies. On the last quarter's conference call, we highlighted thedepth and breadth of our operations team at Yamana, and some of you have heardme say that it is our view that the scarcest resource in this industry is humanresource. And with the combination of the Yamana, Northern Orion, and MeridianGold that we've completed in this quarter, we've taken the human resources thatwe already had within Yamana, and supplemented those with the people that havecome to us from both Northern Orion and Meridian. The new senior operating exploration and executive teams, aswell as the three Meridian Directors who have joined our Board, were announcedon October the 18th. And as a result of all of these activities and theseevents, we have now more than 5,500 employees in Yamana compared to the modest12 employees when we formed this company, just a little over four and a halfyears ago. And we have, certainly in my view, an unparallel depth ofmanagement. This includes approximately 130 geologists in this company, whowill be advancing our extensive exploration portfolio, and approximately that samenumber of mining engineers. It's a good mix of talents with very little overlap, interms of operations, and in terms of geographical presence between principally Meridian and Yamana, andthe integration of the two groups. And we are pleased that this first and mostimportant phase of the transition and integration of our companies relating tothe combination of those companies, has been completed as quickly as it has,and as seamlessly as it has. We undertook a task of creating a management and employeeplatform before our growth began, and before we embarked on our majoracquisitions. And we are pleased that our integration has added to that alreadyrobust human resource. Now, one of the clear messages that we have communicated,beginning at…

Thank you, Peter. Good morning and welcome to everyone.Peter has already given an overview of our very strong production and financialresults. On the last call, I talked briefly about the high qualityand hardworking Yamana staff. I'm glad to report that we have made asignificant addition to that team by virtue of the team that is joining us fromMeridian. Whenwe first went to Reno,we were definitely impressed with the high quality team there. We look forwardto working side by side. The third quarter saw the company realize various newfinancial records, including revenue, operating profit and cash flow. Theyear-over-year increases in operating profit and cash flow are extremely strong,and we made positive progress Q3 over Q2. The adjusted earnings of $71.5million after-tax, and sales of $200 million for the quarter, were milestonesthat continue to reflect the benefits of our organic and acquisition growth. Ouryear-to-date revenue now exceed the $0.5 billion level. Excellent progress has been made on the production front forthe third quarter, with quarter-over-quarter gold production increase of 9%. Goldproduction quarter-over-quarter increases were 13% at Chapada, 51% at Jacobina,26% at Fazenda Brasileiro. Concentrate production at Chapada was up 9%. And we've added a new line to the Sao Francisco mine statistic charts, called full recovery rate. Thefull recovery rate of 77% reflects the rate we are achieving for heap leachpads that have needs for the full extraction cycle. The recovery ratepreviously disclosed is a calculation of gold recovered, provided by goldplaced on the heap leach pads. That calculation does not take into account thesix-month leach cycle at Sao Francisco andfuture amounts of gold we'll recover. Cash flow from operations before changes in working capitalwas about $105 million, representing an increase of 15% over the second quarter,and 618% over the comparative year quarter. There are various overviewed pointsthat affect the financial statements.…

Thanks very much, Chuck. I want to leave you with somemessages before entertaining questions. As you know, I am a Yamana shareholderand I strongly believe that there is incredible value and upside to our stockprice. Last quarter, I noted that there are other gold companies that showcomparable profiles, financial profile than ours and those companies that aretrading at prices per share at multiples where Yamana is trading. And so, forthe benefit of the shareholders in this company that have been patiencethroughout this transaction, and as a shareholder myself, I hope I canconfidently say to you that it is only now a matter of time. Now, what I have referred to as the transaction noise surroundingthis transaction is dissipating, there is no reason why Yamana should be tradingat a level that it is trading at given the financial performance in particularthat we've demonstrated over this quarter, and quarter-by-quarter. Yamana'strading based on our estimation, a low cash flow multiple compared to peers, alow earnings multiple compared to peers, and a low multiple compared to netasset value. And which doesn't account for the eminent value enhancement eventsthat include: our resource estimate and feasibility study at C1 Santa Luz bythe end of the year; our resource estimate at Mercedes in the first quarter ofnext year followed by our feasibility study at the end of that year; ourresource estimate at each of Jeronimo, Millo, La Pepa, and Amancaya early nextyear. Continued advancement of Agua Rica, and capitalizing in its truevalue potential, particularly in light of recent comparable transactions whichwould place a significantly higher value on this project than what we hadassumed when we purchased Northern Orion, continued evaluation of ourdevelopment work at the Bonanza vein at our El Penon mine--where at present, wedo not have a published resource estimate, although it shows high grade andscale—suffice…

(Operator Instruction) Our first question is from DavidStein of Cormark Securities. Please go ahead.

Thanks, good morning, and congratulations on the quarter; itlooks pretty good. First, I wanted to ask about the hedge accounting. You havea realized accounting, or realized hedge loss, of $9 million, Now if Iback-calculate some of your revenue line, the copper that…realize, copperprice…I am getting $339 a pound, and should I take that $9 million divided byyour production and put that, as well, to get the real realized price? Is thathow the accounting works?

The other factor that I think you need to include, is thatin the revenue line, we got the treatment in refining costs. So, I think thatneeds to be taken into account,t the hedge being—are--losses, are not showingup either in the revenue line.

Yeah, right, I figured that out. And would you guys considerreporting a realized price of copper in the future, anything like you don'treport it?

No, we'll certainly look at that, David. I don't see anyreason why we wouldn't report a realized price of copper, and by realized priceof copper, to be clear, you're saying after deducting treatment and refiningcosts.

Yeah, and after hedging, is all.

Yeah, fair enough. We'll certainly consider that. I think Isee your point. I think, show the after hedge, and after TC/RC impact on our copperproduction.

Right, because the other thing is the timing of sales where theconcentrate can affect that number, as well, so?

There is an element of complexity to it, as all companies haveproduced concentrate, we'll tell you, and part of the reason for it is becauseof the method in which payments occur, with a provisional payment and thenfinal payment that is made. And often, that final payment is made during whatis referred to as, a quotational period, and that quotational period can beanything from two months to four months. And so, there is an element of furthercomplexity to it, is that we'll get some thought how the property reports, andwe may be in the position to be able to do it on the production basis, and alsoon a cost of copper sold basis, as well.

Okay, great, thanks. Second question: on the unrealizedmark-to-market thing in these financial statement, you thought, if I look atthe balance sheet and take your derivatives liability with that, will that onlybe covering the copper, or does that also include your reais hedges, as well?

Yes, it also includes the reais hedges.

Okay. And so your $51 million unrealized numbers, does thatinclude reais related hedging?

No, that’s on the copper.

That’s only copper. Okay.

What we are trying to show, David, is the impact if we wereable to get, as you further say, before the economic impact has a hedge. Butcompanies have produced concentrate and don't produce just the base metal, justthe copper and gold separately. It's difficult under accounting rules to gethedge accounting, and so what we are trying to assure the impact of, if onewere able to get hedge accounting, because truly, that’s the economic impact ofthis, but accounting rules don’t get up to that point. So, there is an impacton the mark-to-market, so we are adding back only the mark-to-market impact onthe copper, not on the real hedge.

Right, and I personally hate that rule, and I've beendealing with it for year now, for what its worth. But, if we know the number,that you are actually marking-to-market in the copper, then you might be ableto make an attempt at estimating it next, because next quarter, the copperprice is trading, you are going to be looking at a positive mark-to-market, Iwould assume. So, in any case if you want to semi it out later, split it outbetween more -- what is the actual liability on the balance sheet for copperonly versus the reais, that would help I think?

We consider that separately, yes.

Okay. And, finally…

Just on the reais, we are getting hedge accounting there.So, the benefit of that hedge is showing up in the operating cost line.

Okay. Finally, your G&A in the quarter, it wasn't out ofline from the previous quarter, but I am wondering, now that your Marine dealis out of the way, will that start to go down either in Q4 or Q1 or is the $11million a quarter going forward, is that what we should be expecting?

There is a little bit of noise in that number relating tothe transaction, but not substantial, in dollar terms. So, I think that thereis some reduction that will happen as a result of not having the ongoingtransaction, but it will be smallish in nature or it's not too far tocorrelate.

Okay. Thank you very much.

Thanks, David.

Thank you. The following question from Brian Christie ofNational Bank Financial. Please go ahead.

Yeah, good morning, guys. Just couple of quick ones. Chuck,you alluded to -- you're kind of restructuring your taxes. Just wondering ifyou can give us a ballpark 2008 tax rate? And then Peter, I am wondering ifwe've got kind of number out there for the cost of both the Northern Orion and Meridian transactions?

On the tax rate, as operationally now, we were runningeffective at 25% tax rate. And then, what we have quarter, is we haveadjustment to that, that reflect kind of the non-recurring activities that cantake it up or down, and the overall rate including differed taxes is 33%. So,the new international structure has the objective of reducing that 25%operational rate down. We are hoping to pick up 2-3 percentage points from that25% level. But we will continue to get the ups and downs from thenon-operational items that do affect the tax provision rate. I think I mentioned, in respect to the total purchase price,that Meridianwould be in the neighborhood of $3.2 billion, and Northern Orion total purchaseprice will be approximately $1.2 billion.

Yes, that was great.

Brian, so you were asking a question.

The ancillary fees, Peter, like what are we going to see as chargesfor investment banking fees, etcetera, for the transactions?

Yes. The Meridianhas in its financial results included a number for its transaction cost to theend of the quarter. So, including those numbers, we are expecting, in terms oftotal transaction costs, and we are just calculating these, Brian--so bear withus--we are expecting approximately in the range of about $120 million-$140million. That includes change of control numbers, as well.

Yes.

So, that would be the range that we would expect in, and myinclination would be to go towards that higher end, closer to $140 million aswe calculate the totality of it. How we treat it from an accounting point ofview, we are now determining.

Okay, great. Thanks, Peter.

Thank you. The following question is from Rodney Stevens ofSalman Partners. Please go ahead.

Hello there. Just quickly, the fees of the transaction. Doyou expect to report that in Q4, or by year-end, or is that something that'sgoing to be in next year?

I will leave it to Chuck, just to go through the detail ofit, Rodney. But my recollection for your benefit is that Meridian did report some of those transactioncosts that I have referred to in its quarterly results for Q3. Chuck, did youwant to supplement that?

Yeah. Those will all be paid primarily in the fourthquarter, and we will be treating those as part of the purchase priceconsideration for Canadian GAAP. We need to look at the US GAAP treatments andfor the US GAAP reconciliation that could be in the P&L.

So likely in the year-end report?

Yes.

Okay. And I presume you are going to continue to expense allyour explorations?

It is something that we are going through a complete reviewof all the accounting policies across the group as part of our transitionmeasures. So that one, is there is a clear difference between what we do andwhat Meridiandoes. So, we will be reviewing that during the fourth quarter as part of ourreview of making sure that all the accounting policies are consistent betweenthe three companies that are combined?

Just to be clear for the benefit of the people on the call,Rodney. As you are aware, we capitalized our exploration expenses, whereas Meridian had historicallyexpensed those numbers, and what Chuck is referring to is, we are looking at acomplete review of all of the accounting policies. So, we have beencapitalizing our exploration expenses for reasons relating to hot weather, ourexploration of the core Meridianwas taking a different approach as it related to their exploration efforts. Andnow, with this combination, we'll be looking at that, along with others, interms of how much of it we would be expensing, and how much of that we would becapitalizing.

Okay. And then I guess is it safe to assume that theoperations of Meridian and Northern Orion will begin to flow through theP&L in Q108?

No. It will start to pull through in the fourth quarter. Wetook up 78% on October 12, so we will effectively have pick up our share -- inthe income statement we'll actually pick up a 100%, but then there will be aminority interest for the portion that we did know, from October 12 andNovember 2, and then in November 2 we have 90%, so we'll pick up 90% of the earningseffectively in Meridian for the period from November 2 until a point in timethat we have a 100% ,which we should be, prior to the year-end. On Northern Orion,the amalgamation was effective October 13, so we will be picking up a 100% oftheir earnings from that date.

Okay, thanks. And just a couple of few other questions.CapEx going forward 2008, do you have any estimates yet?

We were going through the budgeting process now, so it'sgoing to be something that we're going to be looking at over the next,probably, month. So, it maybe a little bit early to talk about that. We'velooked at the fourth quarter, and fourth quarter would be around $120 million.

We have reported in our MD&A, though, that ourexpectations for CapEx between now and 2010 is approximately $1.1 billion -$1.3billion. And that's part of the effort to develop these new projects and theexpansion that we have in the works, and take it to the 2.2 million ounce peryear production level. I would anticipate a significant portion of that wouldbe in 2008 and 2009, then declining into 2010. But what the actual number isallocated for the fiscal year 2008 and 2009…we're just going through thebudgeting process now, Rodney, and we should be delivering that, along with ourguidance for 2008 and 2009, in early January.

Just finally, I don't want to hold up the call, have youpublished or are you about to publish, the scoping studies on the economics ofthe pyrite concentrate at Chapada? Can I get a copy of that or is that comingout?

Well, we already published the scoping study for the pyriteconcentrate. As we mentioned in that announcement, the next step was to look atthe marketing plan, and that is in progress. And then it goes through afeasibility study, and then, ultimately, it goes through the process ofstarting with the production and delivery of pyrite concentrate.

Okay.

As we said in that announcement, Rodney, we have one or twoopportunities. One is to build the sulfuric acid plant and operate it. And theother is to give it to a third party and take a royalty, along with theadditional copper and gold coming from that pyrite concentrate. And clearly,the return is about the same on both, but the expectation is that we will putit into third-party hands. It will be those nickel producers that are lookingat establishing nickel production in the areas around Chapada that we believewould be better suited to build the plant and operate it. And nickel production, if I understand correctly based onwhat we're doing on the marketing, roughly 60% of the cost of production ofnickel is allocated to sulfuric acid. And so clearly, a ready supply and alocal supply of sulfuric acid will be very important in terms of that nickelproduction. And that's clearly what's coming out of our marketing studies, sofar.

Okay. Thanks very much.

Thank you.

Thank you. The following question is from Anita Soni. Pleasego ahead.

Good morning, gentlemen. Congratulations on a good quarterthere.

Thanks, Anita.

My question is with respect to the shares outstanding. Canyou guys go over what the fully diluted number would be? I thought the basicwas $660 million. And just how many -- I missed on the Northern Orion -- howmany shares is that, one-tenth?

The Northern Orion was 84.

84, okay.

And that gave us a total of $666 million.

Okay.

And then, we have the amount of warrants outstanding thatwould add another $17 million, options, $10 million, Northern Orion warrants of$31 million and their options of $7 million, which would take the fully dilutednumber to $733 million.

Okay. And also, on your TC/RC, is that $.077 per pound, isthat right?

It's around $77 per ton for the treatment charge; $0.077refining charge per pound of copper.

Okay. I think that's it. All the other questions wereanswered.

Thank you. The following question is from Steven Butler.Please go ahead.

Good morning, guys, or almost, a good day. Chuck, is thereno price participation on your copper at the moment or is there?

In most of the contracts, there is some price participation.And it is limited in the largest contract to an amount exceeded a long timeago, so the amount of the price participation is not that large because of thatlimitation.

Okay. How do arrangements look like as you go into next year?I've been hearing from other producers that it looks quite good now from aproducer side of things going into next year's contracts.

Yeah, the market is fairly favorable for selling, enteringinto new contracts and selling copper on the spot market. We made the decisionvery early in the process that we wanted to make sure we had a homeconcentrate, and therefore, we entered into long-term supply contracts.Therefore, a large portion of our 2008 production is already arranged underthose contracts. We will have some spot sales that would allow us toparticipate in that favorable market, but it would be less than 15% of totalsales.

Okay. And just to clarify, Chuck, on the cash cost sinceyou've had a net of the copper credits per ounce, does that include or excludethe copper hedge, including both the forward sale and the coal optioncomponents?

It excludes the impact of the copper contract. The coppercontracts, because we're not treating as a hedge and we treated below themargin line, we treat that as a financial transaction, and we don't show theimpact in the cash line.

Okay. Just on the theme of Chapada again, Peter, is anybodyelse operationally in the line? The steps that you guys are taking to gettowards -- I think you touched on some, Peter, on the Analyst Day -- steps toget to the 16, at least the interim 16 million ton per year target level. Iknow you annualized out in Q3 at about $13 million tons.

And that $13 million that was all in the same quarter,original with the feasibility study. So we're right on target with the -- Ithink they're actually above the feasibility study. The feasibility study forthis year was annual rate of 12.7 million tons. So we're exceeding that rateand we're seeing throughput increases every quarter. So that's continuing. Andwe've got very specific programs of looking at ways that we can de-bottleneckwithin that plant and take the production level up to the first instance of $16million, and then we're looking at probably two years out of almost doublingthe throughput at Chapada.

Great. Any comments guys, not to pick on it big time, butthe gold recovery slipped a little bit in the third quarter despite a higherhead-grade down to 74%, recovery is still not bad, but a little bit of slipfrom Q2.

At Chapada?

Chapada, yeah.

Yeah, I think it's just the nature of the timing of the ore.We also have other initiatives on ways to increase the recovery rate atChapada. And I think we'll see them going back towards steady levels. Andagain, this whole program initiative is to increase the cash flow and the NAV ofour projects. We'll then be looking at ways to intake feasibility study levels.

And Steven, we, just if I can pick up on two points, as youknow, we've said that it would take 8 to 9 months -- we will take 8-9 months toget to our production profile at Chapada that was consistent with feasibilitystudy. So getting to 74% production, even if it's modestly lower than theprevious quarter. You would anticipate that on a quarter-by-quarter basis, butwe are ahead of where we thought we would be in terms of the productionprofile, recovery rate, and a throughput at Chapada at this point. The other point that I wanted to mention is, that I don'tknow if this is the part of what you are asking, when we report our co-productcost at Chapada, we aren't including treatment and refining costs andtransportation costs in those numbers.

Yeah, you are correct. That was more of a hedging issue.

Okay.

The last question, guys, the coarse gold, the timing at Sao Francisco in terms of -- perhaps, I guess, to ask itin a different way--mining more exclusively fresher ores, when will that occuragain?

We are expecting that Sao Franciscohas more complexities in ore body than what was initially anticipated in thefeasibility study, but we have a very good handle on it. As you know, we aregetting this coarse gold effect in the marginal ore. We are getting in thecoarse gold effect in areas that are mineralized at a great level that isconsistent with the dump pitch ore or better than the dump pitch ore. I think what you are asking, Steven, in the fresher ore asyou see some of the coarse gold effect in some of the harder rock and where wehave the main ore. And we had originally anticipated that we would be there andthis is late last year, we'll be there in the second half of this year. But[technical difficulty] continuing [re-implication] of the ore body -- in theareas of high-grade that are not the result of coarse gold, but the result ofmore conventional fine gold. And so we are looking at -- that would not beprocessed through the gravity plan. And so in terms of the optimization of SaoFrancisco, we're looking ultimately getting to that area of fresher ore that youare referring to into the middle, the second quarter of next year, by the endof the second quarter of next year.

Okay. Thank you, Peter.

Thank you. The following question is from [Senthal Goslan]. Pleasego ahead.

Good afternoon. Chuck, could you give us a sense of how muchline of credit do you have available besides the $700 million that you're goingto use for the acquisitions?

Yeah, the $700 million is the extent of our availablecredit. And with the future cash flows of $500 million to $600 million peryear, the plan is that that $700 million is split into $400 million term loanand $300 million line of credit. And with those robust cash flows, what we'llbe doing, time is drawing down, repaying the revolving line of credit, and thatpart is the available standby credit.

Senthal, we also have cash balances in the company. Well,let me rephrase that in the three companies coming together. And afterexpenses, those cash balances will be used to pay down lot of credit portion.So our expectation is that most, not all of the line of credit, by the time ofthe 100% take-up of Meridianby the end of the year will be completely free. And I should also mention that, as you are aware, there issignificantly more of credit capacity in the company than the $400 millionplus. So just to pick up on what Chuck was saying, the $300 million line ofcredit would be repaid almost immediately with the existing net cash balances andthe $400 million, we'll repay a portion from the existing cash and the balanceof it with the continuing cash flow that's generated in the efforts of threecompany now combined into one. And, as you may remember, that term facility of$400 million is five years, but we can make it early.

There is a lot of noise on the conference call. I don'tknow. I picked up most of it, but it's a little bit hard to understand. Sorryabout that. Secondly, could you give us a breakdown of the depreciation onasset per asset basis that you have in the quarter? You have like $16 million?

Yeah, on a per ounce basis, MFB was 66; Sao Francisco, 89; San Andres, 52; Jacobina, 114; and Chapada 102. Sowas that clear, Senthal?

Yes, that's good. And the first one you mentioned, 66 for…?

Brasileiro.

Okay. That's it. Thank you.

Thanks, Senthal.

Thank you. The following question is from Barry Cooper.Please go ahead.

Yeah. Some question on your guidance where you indicatedthat you would have basically 170,000 ounces for the fourth quarter or 30%higher than where you are right now. Where is that going to come from, and howare you going to achieve it?

For the fourth quarter, we are looking at ranges for Chapadaof 50 to 60; Sao Francisco, 30 to 36; Jacobina, 24 to 29; Brasileiro, 20 to 25;San Andres, 15 to 17; El Penon, 55 to 60; Minera Florida, 15 to 20; and Rossi, 5 to 7.

The 170, I think are you referring to just the amount ofmines?

Yeah, that's what my impression was. Basically, I think yousaid you are going to have 300,000 ounce in second half, which excluded theacquisitions. And your enroll number is 130 for Q3 so that implies 170 for Q4?

Yeah, that's correct. And most of that will come, pick up onwhat Chuck was saying, Jacobina has ramped up and starting to push Canavieirasor Jacobina will increase the Jacobina rate. So a big portion of it comes fromthere. It's a continued ramp up at Chapada and Sao Francisco performing into the fourth quarter at a better levelthan it performed in the third quarter. And as you saw that there was increasefrom second quarter to third quarter, and we expect that increase to continuefrom third quarter to fourth quarter.

Right. Okay. But I am correct in assuming that the 300 wasex the acquisition?

That's correct.

And then, maybe you could clarify in the end MD&A--yougive sort of a pro forma gold production for the combined units there--but youhave got an NA under the cost per ounce for Northern Orion. I am just wonderingwhy that occurs?

Sorry, you've faded out for a little bit, Barry, we'rehaving the same difficulty that Senthal had before. What was the question?

In the end MD&A, you've got a pro forma gold productionlevel there, along with operating cost for each asset. But in the NorthernOrion, pro forma portion, you've got an NA under the operating cost per ounce.And I'm just wondering why that's being shown as NA, whereas you give theoperating cost for everything else?

Yeah, we do an equity pick up on their interest in Alumbrera.And we need to get into more detail on what the forecast is for Alumbrera inthe fourth quarter.

No, that's not what I'm referring to. On page 22, you havethe amount of gold, the 131,000 ounces of production at negative 339, and then evenEl Penon, Minera Florida,Alumbrera, and you have 22,000 ounces of gold produced from so many tons ofcopper. But under the cost per ounce which you give for everything else, youhave got NA under Alumbrera.

Yeah, it basically wasn't available to us at that time.

I see. Okay. Good enough, and thanks.

Thank you. The following question is from [Robert McLeary.]0.34 Please go ahead.

Hi, my questions have been answered in the previousquestioning cycle. Thank you.

Thanks, Rob.

Thank you. The following question is from [Robert Dunn].Please go ahead.

Yeah, in essence, I'd like to ask that why do you sell theforward contract for copper for so far out. Is it a requirement by the lenderwho give you credit?

No, there is no requirement there. Robert, there is norequirement for us to do anything as it relates to hedging any of ourproduction. We made a strategic plan a few years ago that we would not hedgeour gold production. However, because we have by-products, and principally atthe ton copper--because we have that, what we'll do is we'll try to underpin alow cost of production for each gold ounce that we produce by applying coppersa by-product credit. And so, what we try to do, is we try to say, well, let'stake copper and hedge it forward--at least hedge a significant portion of ourproduction forward, so it allows us for a sustainable period of time tounderpin a low cost structure for our gold production. So that's why we hedgethe copper that we have into the four-year period that we have. If you consider it to be really look at it backwards, wesaid how do we get a number that's close to $3 per pound for our copper hedgesand what would we have to hedge to get that, while at the same time maintainingsome reasonable improvements as it relates to production at our mine. And so what it does is, it averages for the next four yearsapproximately 40% of our production as an average for the next four years ishedged. So we worked at it backwards and said, how do we get close to $3 perpound that we can then apply as a reduction to our cost of gold production andwhat do we have to hedge to get there, while at the same time coming close tothat 40% production level that we felt is prudent, from an operational point ofview. No requirement at all from any lender or anything of thatnature. Indeed, we took on this approach when we had zero, that in the companythere is no requirement, either even the facilities that we have the 400million ,and the 300 million that Chuck referred to, there is no requirementfor any hedging, and we would not agree to that, there any program that we havewith our lenders.

And do you anticipate that since we sell forward for thecopper, so do you anticipate no production -- production is no problem to be ableto do this again?

That's correct, and that's why, if you look at -- now that'swhat I meant by, you have hit the nail on the head, that's what I meant byoperational prudence, 40% is considered a number that we think is a reasonableand prudent number on a mine-by-mine basis. We wouldn't hedge more than thatlevel of production as an average going forward. That's a number that I thinkis consistent within industry practice and is prudent in terms of operationalperformance. Mining is a complex event, and so one never knows what couldhappen in a mine. If there's a slowdown in production, for things that arecompletely outside of your control, you want to be able say that you have adelivery program in place for something like our copper hedging that isreasonable than that is manageable, and that 40% of something that we think isvery reasonable and manageable.

Question is about, in the early beginning, the single figure,is that the current stock price trading -- doesn't it affect the real value ofthe company. Could you give us some figure on the enterprise value based onwhat our -- these certain resources, how much gold equivalent are we sellingright now on the market today is a 1450 per US dollar?

I wouldn't be able to give that number, and largely we'regoing on the basis of bearing in mind also, that we produce more than just gold,and we would have to do it on a gold equipment basis, if you're looking at thattype of analysis, but we go on the basis of analyst consensus. If you go on ourwebsite, we do indicate what the consensus views of analysts are, and themultiple as compared to a peer group that we show on those websitepresentations that indicate our multiple through net asset value, our multiplesof cash flow and our multiple earnings. And as you've heard me say before, I ama strong believer in cash flow, the growth in cash flow and sustainability ofcash flow. And that's where we are at our lowest point in terms of multiples,where we trade at a deep discount to the peer group in terms of our multiple tocash flow by comparison to the peer group. On the net asset value basis, we are close to peer, but wellbelow the top of the peer group. And in addition to that, we have some valueenhancers that I think are eminent, but over the course of the next few months,and certainly into the first quarter of 2008, we'll be able to demonstrate, Ibelieve, some of those value enhancers that I've referred to in thispresentation that will allow us to be able to justify our higher net assetvalue. And as a result of that, based on the current price, although themultiple to net asset value, that's what I was getting at, Robert.

Okay. So, for all the pricing, you mentioned on those copperand gold, are they differed to US dollar or Canadian dollar? I imagine the USdollar.

Yeah, we are referring to US dollar.

Thank you.

Okay. Thank you, Robert.

Thank you. The following question is from Anita Soni, pleasego ahead.

Hi. Just a couple of follow-up questions. Chuck, I missed theguidance for Q4 for San Andres and Minera Florida and Alumbrera because you were cuttingout there, could you just repeat that?

San Andres 14,000 to 17,000. Minera Florida, 15,000 to 20,000, and the El Penon 55,000to 60,000.

And Alumbrera?

No, we don't have a forecast at this time for Alumbrera.

Okay. And, can you just finally refresh my memory on the nextset of major deliverables from your point of view, in terms of year end updates,reserve resource statements, expressions results, I know you got the mine tourat the end of the month. So, what can we look forward to in the next fewmonths?

Yes, mine tour is the end of November, the first couple ofdays of December, and that will be the completion, Anita, of our marketingcamping that began on October 18th, with our Analyst Day. And then, in terms ofdeliverables, in terms of operations and exploration, an update on Amelia Ines/Magdalenain terms of an advancement of the resource estimate and feasibility study forthat at Gualcamayo. And again, as you are aware and others maybe aware ofGualcamayo is pretty distinct to deposits, QDD which is the main open-pitdeposit, Amelia Ines, which is now under construction. Amelia Ines/Magdalenawhich is the satellite open-pit, and then QDD Lower West, which I referred to,which is the area of underground for Central. And so, we would plan to have aresource estimate for an update to the feasibility study for the satelliteAmelia Ines/Magdalena. We are advancing a possible resources estimate for QDD LowerWest, as well. By the end of the year, we'll also have our feasibility study onC1 Santa Luz. And then, sometime after the year end with a cut off of the yearend, we'll have a resource update on all of our projects--and we are going tothat process now--but the ones that would be most meaningful would be Mercedes,and the advanced exploration projects that came to us as a result of the Meridian acquisition.

Thank you very much.

Thank you, Anita.

Thank you. There are no further questions registered. I'dlike to turn the meeting back over to Mr. Marrone.

Ladies and gentlemen, thank you very much for that, and Iappreciate you making the time and we'll look forward to a further discussionwith our year-end results, sometime into the new year, and my confidence, as Imentioned before in our continuing increase in production, as Chuck wentthrough, and an increase in cash flow earnings, and hope you will agree with methat we have delivered a strong financial performance as we promised at the endof the second quarter, and our expectation is to continue to deliver that intothe current quarter. So, thank you very much to everyone for attending the call.

Thank you, gentlemen. This concludes today's conferencecall. Please disconnect your lines. And thanks for your participation.