EDITORIAL

At Curragh Resources, our results are tied very closely to the value of the Canadian dollar. The present strength of our currency may help Canadians who are vacationing in Florida, but it’s a serious impediment to export companies like ours. The strong Canadian dollar is expensive for Curragh’s shareholders. For every penny the dollar increases, our cash flow is reduced by $2.3 million. Of course, we’re not unique in this respect — every Canadian mining company has to deal with a currency that is artificially overvalued. As Canada struggles to service its huge foreign debt abroad and a massive deficit at home, it’s easy for policy makers to overlook the strategic importance of the mining industry — an industry that accounts for 27% of Canada’s gross export earnings. Curragh alone has contributed close to $1 billion of those earnings over the past five years.

The economic benefits of higher exports are not to be measured only in terms of trade balances. By being competitive in world markets, we create more jobs here in Canada, directly and indirectly. For Canada, jobs created in the export-oriented sectors — including mining — are worth more to Canada’s prosperity than are jobs created in non-export industries. We must export to maintain our standard of living. It’s as simple as that.

By being competitive in world markets, we create more jobs here in Canada both directly and through secondary and tertiary businesses.

Because Canada’s well-being is closely tied to its mineral wealth, mining companies like Curragh are essential to realizing the country’s economic potential. And that means investment — putting money back into the business.

From an address to shareholders by Clifford Frame, chairman, president and chief executive officer of Curragh Resource at the company’s annual meeting.