IKN #258Premium

The IKN Weekly
Week 258, April 20th 2014
Contents
This Week: Adding BCM, Gold went down so did stocks, I’ve been elsewhere.
Fundamental Analysis: NOBS update report on Dalradian Resources (DNA.to).
Stocks to Follow: Overview, Bear Creek (BCM.v), Coro Mining (COP.to), Timmins Gold (TGD)
(TMM.to), Focus Ventures (FCV.v), Eco Oro (EOM.to), Dalradian Resources (DNA.to).
Copper Basket: Overview, Reservoir Minerals (RMC.v), Curis Resources (CUV.to), Cordoba
Minerals (CDB.v).
Low Cost Producer Basket: Overview, Agnico Eagle (AEM).
Regional Politics: Easter.
Market Watching: Tinka (TK.v) buys out Darwin (DAR.v), Quick observation on Taseko Mines
(TKO.to), Thoughts on the GLD gold bullion holdings dump.
I remind subscribers that no part of this newsletter can be copied, reproduced or
given to any third party without the express permission of the author.
This Week
Adding BCM
It won’t be much, but the plan from the start of the Bear Creek (BCM.v) has been to add when
an occasion shows between now and the limit date for negotiations between the company and
the Peru government. As BCM dumped hard last week, it’s a good chance to average down and
I’m taking that. The other thing to mention here is that I’m staring lustily at Reservoir Minerals
(RMC.v) again and wondering if fate has thrown me a lifeline. More on that in The Copper
Basket, top-of-shop headsup complete.
Gold went down, so did stocks
The Goldbug-o-sphere was complaining hard about obvious manipulation of the market last
week and for once, I had to agree. Gold dropped after popping Monday on those telegraphed
‘Ukraine worries’ (and this weekend I can’t help but feel Russia’s getting what it wants, though
it’s more difficult tot know exactly is what that is) but then turned and dumped hard, with
plenty of post-factum reasons offered by the chattering class.
I would have liked to poke a few more holes into my bullish stance on the market (take a look
at ‘Market Watching’ below as I spent a bit of time wondering just how important the GLD
bullion sell-off will be to gold prices in the days to come) but I’ve come away with no real
change of opinion from last week. The week just gone was weird, it traded strangely (and it
was short). Gold is still at-or-around $1,300/oz (i’m unimpressed with gold going up $20,
equally so on the way down) and the only thing that really changed was the amount of ridicule
received for being long the juniors. In other words, as you were. This market is a buy that will
pay you well in 2015 and I’m continuing to nibble at bargains.
I’ve been elsewhere
To be honest, this week has been something of a mini-mental vacation I didn’t concentrate
much on the market. There were some non-work paper matters to deal with, the eldest wants
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to buy a dog (wow, that’s one that used to be simple and now isn’t). Then I’ve been catching
up on some long-overdue fiction reading and really enjoying it, too. Then watching some sport
on TV, then there was all the Easter thing and that’s a big event down this way with kids off
school for five days, processions, events, church bigwigs grabbing news headlines with sermons
(I kid you not) and all sorts of traditions as well (one in Arequipa involves eating 12 (twelve)
plates of food in a single evening; small plates but all the same, the 11th and 12th are no fun).
All that’s my roundabout way of saying that today’s issue may come across as a little less newsy
and focussed than usual but it doesn’t affect the next part, our look at the very good numbers
put out by Dalradian Resources (DNA.to) last week.
Fundamental Analysis of Mining Stocks
This week we update our coverage on Dalradian Resources (DNA.to).
NOBS fundamental update report dated April 20th 2014
Dalradian Resources Inc. (DNA.to)
Company Overview
Dalradian Resources Inc. (Canada: DNA.to, US pinksheets DRLDF, Frankfurt DLR.f) is an
exploration stage junior mining company operating in Northern Ireland UK. Its flagship property
is the Curraghinalt gold project in Northern Ireland. Current share structure is as follows:
Shares out: 109.381m
Options: 6.6m
Warrants: 10.04m
Fully diluted shares: 126.021m
Current share price: $0.86
Market Cap: $94.07m
Approx cash per S/O: $0.12
All prices are in Canadian dollars unless stated. Forex U$1=CAD$1
Today’s update: This report should be read in conjunction with the original analysis and
recommendation for DNA published in IKN234, dated October 27th 2013. As usual, if you’d like
a copy of that (it’s missing from your files, you’re new around here etc) feel free to mail in and I’ll
send one over. As usual in the update reports we’re leaving a lot of the potentially repeatable
background material aside. IKN234 has talk about management (ok), biggest holders (ok), the
Curraghinalt exploration project (likeable back then, even more so now) and the
political/community risk factors of working in Northern Ireland (markets were slightly leery in
2013, we called them good, they’ve proven to be good so far). So, on with the update show.
What’s happened since then
Well in fact we’ve kept up coverage on DNA in the near six months since the original NOBS
report and recommendation on the company, but let’s make a little list here for the record:
1) DNA ran the expected financing. At the time we roughed out a scenario of 4q13 and
$8m to $10m for the needed financing, in the end it happened 1q14, was priced at 70c
a unit (unit = 1 share + ½ warrant at 90c with a 1 year expiry), closed February 19th and
once the over-allotment facility was fully taken up raised gross proceeds of a tad under
$13.9m. This should be enough (see financial review below) to see it through 2014,
2

though I’d expect a further raising to come before the end of the year (assuming DNA
isn’t bought out by then, of course).
2) It’s received its permits. In the previous call I’d assumed the better end of the results
spectrum on this and had a few concerned replies on the potential for nasty surprises
from Northern Ireland’s government. They didn’t pop out before or around Christmas as
posited either, but in the end the permits looked for by DNA in order to run their
underground and bulk sampling programs in 2014 were awarded. The whole political
and community risk atmosphere looks pretty good at the project so far, with supporters
heavily outweighing detractors by all accounts (not just those of the company).
3) The resource was updated. This is the catalyst seen last week and the main reason
for today’s update. We’ll go into the numbers in a little more detail below as we move to
update our valuation on DNA, but suffice to say here that they were good and the
market wholly approved.
4) DNA has been shopping itself to potential buyers. It’s always been the assumption
that DNA won’t bring this mine to fruition itself and the true exit strategy is to sell to a
larger mining company. What’s become plain as day sin the last half year is how
aggressively DNA has been looking for its deal, with the names of several companies
connected to talks floating across this desk.
5) The share price has gone up. Perhaps the most important and refreshing of the lot.
Compared to so many other juniors, very much including the ones picked here on these
pages, DNA has managed to deliver a reasonable share price improvement during a
tough market period. As of this weekend we’re 32.3% up on the investment and it brings
a bright blob of green to an otherwise depressing red scenario.
All in all, it’s good to be able to talk in detail about a share pick that’s doing well (for a change)
and the news last week makes it a topical subject, too. From here we’ll now take an abridged
look at the more relevant points of DNA’s financial development, then consider the main news
of the resource update, then plug all that into our adjusted model and come out with a new price
target. I’m going to try and get it all done in under six pages this week, too.
Financials overview
We update on the most relevant company financial charts to see how things are going. Balance
sheet items first, because the only real set of numbers to watch out for at DNA are the treasury
and working cap. Here are the assets and liabilities charts, and assets show the hit taken in
3q13 when DNA wrote off $16.3m for its Norway asset sideshow (those are now in default on
payment and are expected to lapse this year) and the way in which the cash raised during 1q14
positively affected the cash position. Liabilities show that DNA continues with basically zero in
the way of financial obligations (run-of-mine bills to pay) and will almost certainly stay that way.
DNA: Assets Breakdown per qtr
100
90
80
70
60
50
40
30
20
10
0
3
01q4 11q1 11q2 11q3 11q4 21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 tse41q1 tse41q2
source: company filings, IKN ests
srallod
fo
snoillim
DNA: Liabilities position
5
fixed 4.5
other current 4
cash 3.5
3
2.5
2
1.5
1
0.5
0
01q4 11q1 11q2 11q3 11q4 21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 tse41q1 tse41q2
$m
LT debt
current debt
source: company filings

Which brings us to working cap, which is a very close proxy to liquidity as well. We’re expecting
DNA to finish out 1q14 with a touch over $15m at bank, which will then drop towards $5.7m
according to our model by 3q14. That means the company now has enough cash to do what it
wants to do this year, but come the end of 4q14 we’d expect it to either running on fumes or
close to. This in turn strongly suggests that DNA will want to raise again before the end of this
year (the betting man in me says that this time yes, they’ll raise in 4q) assuming of course the
company isn’t sold by then.
50 DNA: Working Capital per qtr
45
40
35
30
25
20
15
10
5
0
4
01q4 11q1 11q2 11q3 11q4 21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 tse41q1 tse41q2 tse41q3
source company filings, IKN ests
srallod
fo
snoillim
Here’s the share count:
120 DNA: Shares Out
110
100
90
80
70
60
50
40
30
20
10
0
01q4 11q1 11q2 11q3 11q4 21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 tse41q1 tse41q2
source: company filings, IKN ests
serahs
fo
snoillim
We’re now up from the sub-90m count of before and our estimate is now 109.381m (we use
110m for valuation purposes). With the financing of February came nearly 10m warrants prices
at 90 and due to expire in February 2015. The clock is ticking on those so they’re a potential
overhang we need to take into account for nearer-term trade and investing purposes. If DNA
does break through that level (notably it tried and failed last week on the good news) there’s
$9m worth of treasury cash for the company to pick up, which is none too shabby. However,
that’s by no means a given in our current crappy market.
DNA: Net loss, per qtr
2
1.5
1
0.5
0
11q1 11q2 11q3 11q4 21q1 21q2 21q3 21q4 31q1 31q2 **31q3 31q4
U$m $m DNA.to: "corporate vs field" expenses
8
corporate field
7
6
5
4
3
2
1
0
source: DNA filings **= w/o $16.349m write down 2q12 3q12 4q12 1q13 2q13 3q13 4q13
source: company filings

As for the quarterly burn and losses, nothing out of the unexpected from DNA since the last
time. Here’s the net loss number (NB: I’ve backed out the $16.349m write down taken in 3q13
on the Norway project dumping, because it throws the numbers out too far) and as noted
before, the net loss doesn’t show all the burn because exploration costs are seen in a separate
place on these books. So put them together and here’s what you get, a 4q13 that was very
similar in spend and rhythm to 3q13. We expect that burn to rise in 2014, as DNA starts the
drills turning and writes the cheques for the consultancy work which will lead up to the new
PEA, due out 4q14.
The bottom line to the DNA financials is that the company’s in good enough shape for an
explorer. It will need to raise more in order to do its thing in 2015 and I’d expect that to happen
in 4q14 (around the same time as the new PEA?). Share count has popped up as a result but
it’s still fairly well under control. The above makes some slight alterations to our current model
and target price for the company, but overall everything’s in line and nothing’s come from left
field over the last couple of quarters. Now we move to something that has made a more
significant difference to the model.
The resource update
Last week’s news (1) got a round of applause from the market and a new bunch of buy recos
and upgraded target prices from the assembled market parasites usually known as analysts and
commentators. That’s not a surprise, because the contents of the new 43-101 resource have
more than one good thing going for them. First let’s use this older table to recall how the 43-101
compliant resource looked up until last week...
..., which showed its high gold grade advantages and decent ounce count upgrade from the last
time it was counted in 2010 (it was 1.5m all-count). With that done here’s the real news and how
it now looks today, via the updated table:
Three notes on the above, then the discussion
1) Both those counts come at a cut-off of 5g/t Au and other etcs, the important baselines
haven’t changed.
2) The important change to the new 43-101 resource count is a larger tonnage and a
larger amount of gold, all at a slightly lower grade.
3) The other stand-out is that we now have 3.491m oz Au under 43-101 compliance
(remember that we can add together M+I with inferred, DNA cannot) instead of the
2.7m oz Au of before. For our purposes of valuation (below) we’ll round that up to 3.5m
oz.
The most interesting part of the new resource count however, is that by diluting the grade and
upping the tonnage, DNA has now incorporated some of the rock around the main vein system
(three of those, but DNA also confirmed there’s still plenty of potential resource expansion from
5

exploration left in the pipe). It’s been known for some time that the vein host rock had some
interesting and potentially economic thin veined stockwork and now, after the geologists have
done the necessary, at least some of that material has
been incorporated into the resource. The main
Moz Au DNA: Evolution of resource* ounce count
advantage is the higher ounce count (and a not-very- 4
heavy grade dilution), but on the engineering side it
3
means that the thin-veined resource that was
previously assuming a 1.8m minimum mining width 2
(that’s thin and would have been tougher to mine
1
efficiently) is now assumed at a 2.6m minimum.
0
This is good news for our model. Back in our original 2003 2009 2010 2011 2014
plan we tipped a hat to those skinny veins and even
source: company data *P+P+M+I+inferred
though the average resource grade was a high 13g,
we were using an 8 g/t head grade in the model in order to run a conservative estimate on the
type of mine dilution we could expect from an operation at Curraghinalt. With this larger tonnage
and wider mining width, we can be a little more confident about the grade even though it’s
dropped to around the 10 g/t level (higher or lower, depending on whether M+I or inferred).
Back in IKN234 we noted the PEA assumptions of an 8.88 g/t head grade and diluted further,
using an 8g /t head grade in the model. We’re still not in the position to swallow whole any
optimistic case, but with 10g material i think it fair to use a more standard 15% dilution now,
thanks to those better width assumptions, so we’re going to assume an 8.5 g/t Au head grade
average now.
As for the tonnage increase, the good news is that we’ve now got 3m tonnes in the M+I instead
of just over 1m, which adds security to the eventual mine plan and feed. Behind that inferred is
also upped to 8m and the resulting 11m tonnes, if mined at the currently proposed rate of
1,700tpd, would give us nearly 18 years of mine life if all that inferred turns out to be good.
That’s a long mine life plan and it’s tempting to raise our model’s potential thoughput rate for
Curraghinalt on the back of this new resource, but in the end I’m going to stick with the current
1,700tpd average because 1) it’s the conservative path and conservative is good, then 2)
although the 2.6m minimum mining width is better, it’s hardly a massively easy access so DNA
(or the miner that eventually mines the thing) may have logistical problems in bringing a large(r)
quantity of mined material to the surface. We’ll know more about this in 4q14 when the updated
PEA is due to be published by DNA (October , they say) and come that time, it wouldn’t be a
shock if Curraghinalt is envisaged as a 2ktpd mine, but for the time being I’m going to stick with
1700tpd throughput in the model.
Updating our valuation on Dalradian Resources
Like I say, I’m trying to get to the point this week and as many of the model’s moving parts have
already been considered we go straight to our targeting. Last time we used an in-situ method
and a cash flow method and there’s no reason to change the plan as yet, though you will see a
difference in results between the two. So to earnings potential and parameters used here
include the following:
• We still assume DNA.to takes the project into production, even though that’s looking
unlikely and it wants to sell itself to the highest bidder. We’re still assuming its $192m
capex bill assumption is correct and we pay for that 50/50 debt/equity style via the sale
of 110m shares and $90m in debt, to which we assume a $15m servicing charge on our
model year. This means that we’re adding an extra 20m shares to the final S/O
assumption and going with 220m, compared with the 200m of IKN234.
• As per the PEA, Curraghinalt gets 1,700tpd machine. It then runs it 365 days per year
• Gold head grade at 8.5 g/t (see above) and recoveries set at the PEA’s currently
assumed 92%, even though we’ve seen NRs with even better recovery numbers than
that.
• A operating cash cost of $125/tonne, same as the previous assumption and the Micon
PEA. As mentioned last time, this is the one variable that I’m unsure about and it’s
6

unlikely we’ll get a real handle on it until a pre-feas is done. On the other hand, high
grade allows for higher costs. Margin’s the thing.
• Depreciation guesstimated at $8m/year and G&A at $12m/year, same as before.
• As before, although there are no worker participation laws in Northern Ireland, we
assume the company treats its workers better than the average and offers them a
collective 3% bonus on operating profit.
• An exchange rate of U$0.90 0 CAD$1. For simplicity’s sake (as all opex will be in euros
and sale sin nominal USD), we’re assuming DNA reports its financials in USD, including
all revenues and costs, then only at the end of the whole process is the forex
conversation applied to our target price.
• Income tax at the standard Northern Ireland corporation tax rate of 23%
• The 2% NSR due to Minco (see IKN234 for a bit more on that)
• Assumed 5% smelter/middleman deduction on total production
• Other smallstuff
We then use the same four gold prices for our model year of production: a base case of
U$1,000/oz, then $1,200/oz, $1,300/oz (which is still our preferred model price) and
U$1,400/oz. This is a repeated table and shows mine gate results:
DNT: Production and mine revenue forecasts (pre-smelter deductions)
$1000/oz Au $1,200/oz Au $1,300/oz Au $1,400/oz Au
process tonnage 620500 620500 620500 620500
Au prod (oz) 156023 156023 156023 156023
Au gross revs ($m) 156.0 187.2 202.8 218.4
COGS+deprec($m) 85.6 85.6 85.6 85.6
Gross profit ($m) 70.5 101.7 117.3 132.9
source: IKN ests
Because we’re not adjusting much away from the gold production hike on the grade, there’s
little difference between the above and IKN234. Same goes with our condensed income items:
DNA at Curraghinalt: Income items for model year
At 1,700tpd thruput $1000/oz Au $1,200/oz Au $1,300/oz Au $1,400/oz Au
Sales (U$m) 148.2 177.9 192.7 207.5
Cash COGS 77.6 77.6 77.6 77.6
Depreciation 8.0 8.0 8.0 8.0
SGA 12.0 12.0 12.0 12.0
Op income 47.7 76.7 91.3 105.8
Interest 15.0 15.0 15.0 15.0
Workers Part. 1.4 2.3 2.7 3.2
Tax 7.2 13.7 16.9 20.2
Net income 24.1 45.8 56.6 67.5
Shares out (m) 220 220 220 220
EPS 0.11 0.21 0.26 0.31
Capex -5 -5 -5 -5
FCF/sh 0.12 0.22 0.27 0.32
Source: DNA data, IKN ests
And here’s the target price box:
7

DNA: Sales and earnings Target price & valuation data at various gold prices
Gold Price $1000 $1200 $1300 $1400 using four different gold prices
Sales ($m) 148 178 193 208 12-month target $1.70 (on 6x annual EPS using
Upside to target 98% gold at U$1300/oz)
EPS 0.11 0.21 0.26 0.31 Mkt cap ($m) $95 Enterprise value $84
Cash flow 0.15 0.24 0.29 0.34 P/sales ($1000) 0.53 EV/sales ($1000) 0.47
P/E ($1000) 7.9 EV/EBITDA ($1000) 1.5
P/E ($1200) 4.1 EV/EBITDA ($1200) 1.0
P/E ($1300) 3.3 EV/EBITDA ($1300) 0.8
cash flow defined simply as EPS + depreciation
Keeping to the same 6X ratio assumption as before, the negative of the slightly higher share
count (+10% to 220m) is outweighed by the better production forecast (thanks to an 8.5 g/t Au
head grade, instead of 8g) plus the more favourable exchange rate for a company that works its
financials in united states dollars but has its PPS in CAD$ and the result is a target of $1.70.
This implies a 98% upside to Thursday’s close of $0.86.
As for the in-situ calculation, here’s the updated table with assumes the new 3.5m oz resource,
the new 110m shares out count as the baseline, as well as our forex assumption.
DNA.to Curraghinalt in-situ gold valuation
at 3.5m oz Au shares outstanding
PPS (S) 110m 120m 150m 200m
0.70 20.00 21.82 27.27 36.36
0.80 22.86 24.94 31.17 41.56
0.86 24.57 26.81 33.51 44.68
0.90 25.71 28.05 35.06 46.75
1.00 28.57 31.17 38.96 51.95
1.20 34.29 37.40 46.75 62.34
1.40 40.00 43.64 54.55 72.73
1.60 45.71 49.87 62.34 83.12
1.80 51.43 56.10 70.13 93.51
2.00 57.14 62.34 77.92 103.90
source: IKN calcs, U$0.90=CAD$1
It’s interesting to note that in IKN234 we ran one line at the then share price of 76c and today at
86c, the current valuation box of $24 is very close to the $25 in October. What seems to have
happened is the benefits of favourable advancement of the project at Curraghinalt have been
neutralized by the current market sentiment towards juniors, so even though it’s one of the few
companies out there that shines through with a strong and positive story, its gold ounces aren’t
being valued any higher...at present, anyway.
Therefore, the “you are here” highlights are at 110m shares and 86v to 90c share price, which
means DNA is still getting its gold valued at-or-around $25 an ounce in-situ. The argument as to
why $50/oz is a reasonable target was made in IKN234 and if we then apply that to a 120m
shares out count (by assuming the warrants get exercised or the company tops up later this
year) we’re offered a target price on its gold asset value of between $1.70 and $1.80. I like that
(and I didn’t fix it) because once again it fits in nicely with the earnings potential derived from the
other set of calculations.
Conclusion and recommendation
In another, more bullish market DNA would have sailed by now and last week’s news would
have been greeted with much more than a roughly 10% pop. The resource count of gold went
up by 800k ounces overall, but what grabs the attention is that those ounces have a better air of
8

quality about them. The grade dropped slightly but it’s still very good, while the ‘mineability’ is
improved by the new assumptions on mining widths and incorporating the stockwork gold into
the overall mix.
One of the few stocks we have running that’s going well, DNA deserves its target upgrade on
last week’s news. We’re re-setting our target to $1.70, representing a 98% upside to the current
share price and we should now consider DNA as a candidate for a takeover. If the October PEA
shows solid and strong new economics, that would push it to the very top of the pile of
companies in line to be bought out.
End of Report
Stocks to Follow
It wasn’t all bad, as four of the 13 open positions managed to register gains last week (DNA.to,
TGM.v, FCV.v, GORO short) and one remained unchanged (SRL.v). But bad it still was, as
among the eight stocks that sold off under the welter burden of gold’s $25/oz move down to
U$1294/oz (RIO.to, IRL.to, LRA.v, EOM.to, COP.to, SCZ.v, BCM.v, TGD) we had big losses
taken in Bear Creek Mining (BCM.v down 17.1%), Coro Mining (COP.to down 15.0%), Timmins
Gold (TGD down 9.9% and that one stuck in my craw, I don’t mind admitting to you all) and
Eco Oro (EOM.to down 8.8%). With both biggest holdings losing ground as well, it was a dreary
week to be long but it doesn’t change the plan, not one iota. This is the time to be positioning
for later gains, not sweating smallstuff. Yeah, I’m bullish; got a problem with that, buster?
We currently have 13 open positions on our ‘Stocks to Follow’ list, two less than our self-
imposed maximum. Three positions are green, ten are red. Sigh.
9

Company Ticker this week Avg Price Reco date Current PPS Gain/Loss% Notes
Top Picks
Rio Alto Mining RIO.to str buy C$2.30 07-apr-11 C$2.06 -10.4% best LT value
Minera IRL IRL.to hold C$0.30 22-jul-12 C$0.145 -51.7% top pick called at 24c
Longs
Lara Expl. LRA.v hold C$1.15 08-apr-12 C$0.86 -25.2% solid biz model, LT hold
Eco Oro Min. EOM.to hold C$0.48 22-sep-13 C$0.31 -35.4% waiting on paramo res.
Dalradian Res DNA.to hold/buy C$0.65 27-oct-13 C$0.86 32.3% VG NR, tgt up to $1.70
Coro Mining COP.to spec buy C$0.125 26-jan-14 C$0.085 -32.0% Cu spec play, can add
True Gold TGM.v hold C$0.395 02-feb-14 C$0.385 -2.5% LT hold, takeover play
Santacruz Silver SCZ.v hold C$1.04 26-jan-14 C$0.82 -21.2% added, now full position
Focus Ventures FCV.v str buy C$0.23 01-jul-12 C$0.295 28.3% tgt 50c, added, avged up
Bear Creek Min BCM.v Adding C$1.88 23-mar-14 C$1.50 -20.2% Ag/pol risk trade, adding
Timmins Gold TGD buy U$1.40 09-apr-14 U$1.28 -8.6% new trade improving fundies
Shorts
Gold Res Corp GORO short U$5.07 26-jan-14 U$4.60 9.3% Re-short now full position
Smaller/Riskier
Salazar Res SRL.v hold C$0.28 02-mar-14 C$0.25 -10.7% small risky spec, vg rocks
Closed in 2014 closed close price
Fortuna Silver FVI.to jan'14 C$2.80 23-dec-13 C$3.19 13.9% small ST trade closed
Rio Alto Mining RIO.to jan'14 C$2.06 07-jun-13 C$2.30 11.7% trading position finally closed
Network Expl. NET.v feb'14 C$0.01 22-jul-12 C$0.005 -50.0% position closed, did nothing
Tahoe Resources TAHO feb'14 U$13.10 08-apr-13 U$21.72 -65.8% short closed due to reality
Darwin Res DAR.v mar'14 C$0.10 14-jul-12 C$0.045 -55.0% tiny risk play dropped
B2Gold BTO.to mar'14 C$3.07 28-nov-12 C$3.35 9.1% closed to free up capital
Pretium Res PVG mar'14 U$5.38 22-nov-13 U$6.50 -20.8% short closed as port longer
2009, 2010, 2011, 2012 and 2013 closed positions in appendices below
Now for some notes on a selection of the above stocks.
Bear Creek Mining (BCM.v): Adding. Here’s the most interesting one of the week. BCM
dropped hard on zero volume and you’d be hard-pressed to find a reason why, except for 1)
silver was particularly weak and 2) BCM tends to do this from time to time. A stare at the chart
says it could go lower ($1.25 anyone) but I’m sorely tempted to add some silver risk here, buy
some more. It won’t be a big add but it’s a great window for averaging down during this Santa
Ana negotiation period that we’ve outlined as the period to slowly collect (or so goes the
theory. This isn’t a big position or nor will it be come this time next week, but I’m going to add
a few and average down. Slowly slowly catchy monkey.
Coro Mining (COP.to): Some significant corporate news from COP last week, as the news
finally came through from big holder Benton
Resources (BTC.v) (38% holder, not 61% as said
last week, my mistake and thanks to ‘DF’ for the
mail) on April 14th. BTC announced (2) it was
moving into the medical marijuana sector and as a
result would distribute its holding of COP to
shareholders before its change of direction. The
affect on COP is being perceived as new liquidity
that may dump the share lower once those tightly
held shares are in other hands and our stock
dropped as a result, down 15% from its already low
10c level to 8.5c. However, this 5 day chart shows
that volumes were tiny.
10

This is the type of price I’ve wanted to see for addition purposes, but I’m going to wait a while
to see how it trades because there’s the potential for it to go lower here. Volume needs to be
watched carefully, because an acceleration now would probably force it down and bring us a
gilt-edged buy price, not just the good one of now. On the other hand, things stay quiet and
we’re likely to rebound. This BTC news makes not one jot of difference to COP the company
and as it’s the company we’re looking to own (well, take a slice of) this god turn out to be a
good thing. As for BTC and its dope trade, I wish them the best of luck. They’ll need it.
Timmins Gold (TMM.to) (TGD): TGD traded horribly, let’s not beat about the bush. After a
great 1q14, the market decided that it didn’t matter any longer and just about everything
factored in was immediately discounted. Fear of gold price is the only possible explanation. It’ll
come back, but after buying to my own content I’m not wading back in again so quickly. Great
opportunity for those of you with more patience than I, though.
Focus Ventures (FCV.v): The only one of our motley crew that can lay claim to have traded
solidly last week, capped by a decent 203k volume day Thursday. We had no news from FCV
but we are now waiting for the first lab results from the Bayovar 12 project. If they come next
week that’ll be fine, but before end April would be equally received and it’d take silence for a
couple of weeks of May before starting to wonder why they’re a bit late, because they may wait
until they have that meaningful batch of holes before releasing. I expect good things.
Eco Oro Minerals (EOM.to): Well yes I may be bullish, but if EOM doesn’t come out with
some sort of company directive or strategy decision soon, this is one that will have to get cut
for a loss. I am puzzled about the passive stance being taken by EOM at Angostura, because it
does have enough on its side to say bullish and positive things about an eventual project that
doesn’t need the land inside the páramo border but doesn’t seem to want to make that clear to
anyone. I can only guess that its main line of strategy now is to win via courtroom litigation and
at the moment doesn’t want to make out that its position is anything but difficult. But it’s not
going well as the 31c Friday close on downright apathetic trading demonstrates to anyone’s
satisfaction.
Dalradian Resources (DNA.to): Best performing stock of the week, and for all the reasons
you see above in ‘Fundamentals’. Here
let’s talk market action just a little, which
was a clear case of before/after the halt
and the news of the resource upgrade.
That pop you see in the chart on 1.2m
shares traded in the day (though that
does include the slightly suspicious looking
300k chunk that traded pre-halt) is as
healthy a reception as you can wish for
from a junior exploreco in this market and
all you really need to know about the
quality of the information delivered.
The Copper Basket
After sixteen weeks of 2014 The Copper Basket is showing a 6.80% gain to level stakes.
11

company ticker price 1/1/14 Shares out Market Cap current pps gain/loss%
1 Augusta Res AZC.to 1.51 144.41 476.55 3.30 118.5%
2 NGEx Resources NGQ.to 1.43 168.71 320.55 1.90 32.9%
3 Reservoir Min. RMC.v 4.97 47.5 296.88 6.25 25.8%
4 Lumina Copper LCC.v 6.29 44.07 221.23 5.02 -20.2%
5 Nevada Copper NCU.to 1.35 80.5 144.90 1.80 33.3%
6 Hot Chili Ltd HCH.ax 0.425 333.11 103.26 0.31 -27.1%
7 Copper Fox CUU.v 0.375 402.96 92.68 0.23 -38.7%
8 Western Copper WRN.to 0.76 93.68 91.81 0.98 28.9%
9 NovaCopper NCQ.to 1.60 53.4 68.35 1.28 -20.0%
10 Panoro Minerals PML.v 0.35 204.71 65.51 0.32 -8.6%
11 Curis Resources CUV.to 0.57 74.79 56.09 0.75 31.6%
12 AQM Copper AQM.v 0.11 139.05 18.08 0.13 18.2%
13 Cordoba Min. CDB.v 0.45 31.88 14.98 0.47 4.4%
14 Coro Mining COP.to 0.10 159.37 13.55 0.085 -15.0%
15 Oracle Mining OMN.to 0.27 49.03 7.35 0.15 -44.4%
NB: HCH.ax priced in AUD$, rest CAD$ Portfolio avg 6.80%
A big drop in the overall basket average, down over 5.5% and that was mostly due to larger
drops in smaller cap stocks, along with the
general weakness in the junior exploreco The Copper basket 2014, weekly evolution
sector of course. Overall we had just three 25%
stocks posting weekly wins (LCC.v, PML.v,
20%
AQM.v) and one that stayed unchanged
(HCH.ax), which leaves a full eleven losers 15%
(not listing them all. Of those, the biggest
10%
hits were taken by Oracle Mining (OMN.to
5%
down 25.6%), Cordoba minerals (CDB.v
down 17.0%), Coro Mining (COP.to down 0%
15.0%), NovaCopper (NCQ.to down 9.9%)
and Curis Resources (CUV.to down 9.6%).
With all those and more, the basket average
is at its lowest level since January; ah, the
PDAC thing again.
All this in the face of a week that saw copper
market prices rise, too. The 60 minute chart
here shows how copper got hit with the rest
of them on supposed Chinese economic
weakness fears (hey that’s a new one) thanks
to a March industrial production number that
disappointed (+8.8% instead of +9.0%
forecasts, oh woe) but then China’s latest
GDP number came in at 7.4% and not the
forecast consensus of “only” 7.3%, so once
the dust had settled the world decided that
things weren’t so very bad after all and the
metal rallied back.
What can I tell you? These things happen. But
either way, a steady copper price and a
5.5+% drop in our basket means that the
juniors definitely were not taking their cue
form the underlying metal, which just points us right back at the sentiment expressed in
sections above; people are selling miners because they have the word ‘mining’ or ‘resources’ in
12
ht5naj ht21 ht91 ht62 dn2bef ht9 ht61 dr32 dn2ram ht9 ht61 dr32 ht03 ht6rpa ht31 ht02
source: IKN calcs

their corporate name, nothing else.
To inventories. It was Shanghai’s turn to remain quiet and unchanged last week, with
inventories staying at the same 142,671mt level we saw in IKN257. Comex saw a slight rise of
603mt (+3.7%) to finish at 16,976mt. The main move in a relatively quiet Easter week of
trading was in LME inventories, which dropped a large 15,150mt (-5.8%) to finish at
244,950mt. So overall a drop, with the world aggregate down 3.5% at 404,597mt, but less to
read in this week than previous weeks due to Shanghai’s quiet period. It remains to be seen
whether the bullish signal repeats next week, but for this week we leave the question
unanswered.
Now for updates on a few of our featured basket stocks:
Reservoir Minerals (RMC.v): You know how much I’ve kicked myself for missing several
windows of opportunity to own this stock (yes indeed, twas I who stuck in a bid 10c too low at
sub-$3 prices, remember). So I don’t want to even whisper this too loud, but it’s starting to
look as though a window is opening up again. The first of the two price charts today show 2014
year-to-date performance...
...and the takeaway is of a stock that’s finally feeling the sectorwide inertia drag itself down.
However, aside from a single large day’s trading (the 627k volume day of April 4th , and 402k of
that were larger blocks of the insider sales we noted an issue or two ago so they would likely
have been loosely arranged with a willing buyer beforehand) trading hasn’t been heavy and as
this second chart illustrates...
...things since then have been very thin for a stock as supposedly hot as RMC and its world-
class discovery story.
13

What I can say is that I’m holding back at least one part of my sidelined cash for a piece of
RMC if possible. If the price drops on a bit of extra volume a real last-chance-saloon buying
opportunity could show up. I’m not going to go long at any price, much will depend on how the
stock trades, not just at what price. But I’m a potential buyer and if so, I might be able to stop
the auto-flagellation at least a little.
Curis Resources (CUV.to): Further to last week, the low volumes here continue (no day over
50k volume) but this time the drift
direction was down. The 12 month chart
here shows the spiky volatility and
there’s a reasonable argument for
buying/adding at current levels (if you
believe the 2014 action more than the
2013 action anyway) but until volume
returns it doesn’t inspire confidence. And
volume won’t show up until resolution
comes from the town of Florence about
its permits. So it’s going to be a
wait’n’see for 2014, as only real news
will change things. That’s just about all I
have to say about CUV for the moment,
so I’ll turn gaze to somewhere else next
week.
Cordoba Minerals (CDB.v): This was thwacked down the most of any basket component last
week, with the 488k traded Tuesday doing the damage. It looks oversold and as later week
volume was thin we could easily see a rebound blamed on technical excuses. The good news
here is that the team and the plan is now just about fully in place, the bad news is that it’s in
Colombia.
The Low Cost Producer Basket
After 16 weeks, the Low Cost Producer Basket is showing a 6.92% gain to level stakes
company ticker price 1/1/14 Shares out Mkt Cap (Bn) current pps gain/loss%
1 Freeport FCX 37.74 1040 34.33 33.01 -12.5%
2 Goldcorp GG 21.67 812 19.16 23.60 8.9%
3 Barrick ABX 17.63 1000 17.98 17.98 2.0%
4 Newmont NEM 23.03 497.87 11.72 23.54 2.2%
5 Silver Wheaton SLW 20.19 357.39 7.82 21.87 8.3%
6 Franco Nevada FNV 40.74 147.01 6.80 46.25 13.5%
7 Agnico Eagle AEM 26.38 173.43 4.96 28.61 8.5%
8 Pan American PAAS 11.70 151.41 1.95 12.86 9.9%
9 B2Gold BTG 2.02 651.4 1.77 2.71 34.2%
10 First Majestic AG 9.80 117.02 1.08 9.24 -5.7%
all prices in U$, using NYSE ticker prices Portfolio avg 6.92%
The sector deterioration continues, with just the copper stalwart Freeport (FCX) registering a
weekly gain. The other nine names lost ground, with Agnico Eagle losing the most (AEM down
8.4%), mainly due to the news that it was mixing itself up in the Osisko (OSK.to) takeover
theatre. More on that below. As for our control benchmark, GDX is maintaining its gap over our
basket in the way you can see in this chart (4.63% this weekend, to be exact)
14

The Low Cost Producer Basket: Weekly performance and
comparative to GDX control
35%
30%
25%
20%
15%
10%
5%
0%
15
ts13ceD ht5naj ht21 ht91 ht62 dn2bef ht9 ht61 dr32 dn2ram ht9 ht61 dr32 ht03 ht6rpa ht31 ht02
basket
gdx control
source: Yahoo! Finance, IKN calcs
We’re back to an atmosphere of slowly grinding down the near-term momentum and
enthusiasm that brought in fresh (or hot) money
or to paraphrase Orwell, if you want a vision of Low Cost Basket: Percentage difference between
basket and GDX control, 2014
mining sector stocks, imagine a boot stamping
8%
on a human face – forever. OK, exaggerating a 7%
6%
bit, but the current feeling of being squeezed by
5%
much larger players and money is palpable. 4%
Again, it’s not mine to reason why as it’s been 3%
2%
shown over and over that trying to beat the big
1%
money at its own trading game doesn’t work, so 0%
the call is not to enter that arena and stick to a
longer view, where time dilutes the
disadvantages.
Agnico Eagle (AEM): The news Wednesday April 16th (3) that AEM was entering into the
white knight scenario to save (for the time being at least)
That looks like an overreaction to me, especially when we factor in the moves seen in GG and
the centre of all the drama, OSK.to. It makes AEM look like a decent near-term trading buy (or
perhaps for hedge fund desires, the long part of a long/short pairing with GG) and here’s why:
The deal means AEM and Yamana (AUY) (YRI.to) become 50/50 owners of Osisko (OSK.to) and
its Canadian Malarctic mine (along with the fringe benefits as seen in the NR, including spinco
items etc). The reaction to the improved friendly offer saw AEM hit down harder than AUY, as
sen in the chart. This might be the surprise factor, or it might be a reflection of extra risk being
taken by AEM due to its overall size (at ~U$5Bn mkt cap, AEM is nominally smaller than the
~U$6Bn AUY).
ts13ceD ht5naj ht21 ht91 ht62 dn2bef ht9 ht61 dr32 dn2ram ht9 ht61 dr32 ht03 ht6rpa ht31 ht02
source: ikn calcs, NYSE/Nasdaq data

This friendly deal is almost certainly going to be trumped by Goldcorp (GG) anyway. GG has
been after OSK for years, not weeks or even months, and it’s unlikely to let its quarry slip
through its fingers at this point when ‘just a few dollars more’ will secure a deal. The
AEM/AUY/OSK deal is unwieldy and has all the hallmarks of a thrown together deal that won’t
be able to go far in a bidding war. Meanwhile they’re up against a Goldcorp with cash, the
necessary corporate aggression and a clear bullish view of the gold market; they’ll want to buy
this asset before their envisaged bull run in gold gets moving.
Regional politics
Nothing much happened, it was Easter week.
Market Watching
Tinka (TK.v) buys out Darwin (DAR.v)
One of our riskier shots at glory over the last year or so which didn’t work out (they tend not
to) was Darwin Resources (DAR,v), which we bought due to the prospectivity of its Suriloma
project in the La Libertad region of Peru and eventually dropped (though perhaps should have
dropped earlier) once the project didn’t show rocks to match potential on its second round of
drilling. News late last week was that fellow Peru working junior Tinka Resources (TK.v) had put
in a friendly bid for DAR and was mopping up its book of reasonable looking early stage
projects into its structure for very little cost (pure paper in fact).
This doesn’t come as a surprise, as there were fairly close ties between the two companies on
an officer level and one of the main investors in both companies is Sentient Group, which would
have pushed to make this fusion happen (if only to clean up its own books).
Quick observation on Taseko Mines (TKO.to)
One thing I’ve noticed is the management’s serial self-serving attitude towards exercising
shares and insider sales when given the opportunity, a bitchy way of saying that inside selling
at TKO doesn’t bode well for its near-term future. With its quiet period just gone, TKO officers
are selling pretty heavily again as this Canadian Insider link shows (4).
No position in TKO, no respect for the company either.
Thoughts on the GLD gold bullion holdings dump
On Thursday evening I put a post up on the blog (5) that showed how the gold ETF (GLD) had
seen significant selling of bullion over the last couple of weeks. For some bizarre reason this
16

elicited the arrival of a critical remark to the mailbox, something along the lines of how I’m not
supposed to publish bearish gold news if I’m bullish gold (the author of that mail will read these
words and is advised to cancel their subscription to The IKN Weekly and waste his money over
at some Casey publication instead, he’ll get to read what he wants to read that way). No matter
that more facts mean better decision making process, best just to make like an ostrich I
suppose.
I digress. Back to the data and come...
GLD: Gold tonnes held, per day, 2014 to date
tonnes gold
830
825
820
815
810
805
800
795
790
785
780
31- 07- 13- 17- 24- 30- 05- 11- 18- 24- 28- 06- 12- 19- 25- 31- 04- 10- 16-
Dec- Jan- Jan- Jan- Jan- Jan- feb- feb- feb- feb- feb- mar- mar- mar- mar- mar- apr- apr- apr-
2013 2014 2014 2014 2014 2014 14 14 14 14 14 14 14 14 14 14 14 14 14
source: spdr
Please note cut-down Y-axis, used to illustrate contrast in figures
...this weekend we now have GLD bullion holdings at 795.14 tonnes, down another three-and-
bits tonnes from that post last week. That means in the last 18 trading days, GLD has put
26.33mt of gold back into the physical market and that’s a lot of gold, people (846,529 ounces,
to be more accurate). Or if you like, at an average U$1,300/oz that’s U$1.1Bn worth of gold for
the near-term market to absorb.
So far so spooky, but to get a better idea on whether (or by how much) this dumpage of bullion
has affected the spot market we now delve a little deeper into the numbers. We start by
considering the market price of GLD (it is, after all, a pretty good proxy for the day-to-day shift
sin the bullion price) and rather than subject you to another home-made chart on that, here’s
Bigcharts’ YTD version.
Once you have the daily closes in XLS it’s possible to play with them in several ways next to the
tonnage numbers, but
clear enough (for me at
least) is to keep things
really simple and divide
one into the other to
see how their
fluctuations are
showing against one
another. This chart
derives from just that
and along with the
notations, posits that
GLD tonnage is
something of a lagging
indicator to GLD price.
That’s exactly what
you’d expect of course,
17

because price shifts will make people confident/nervous (in turn) or holding paper-bullion and
accumulation/disposal will follow on from that. As you see from that above chart, the ratio
seems to revolve around 6.4X (well this year at least) so another way of presenting the same
argument is to multiply GLD by 6.4 and lay it next to the GLD tonnage figures. I’d agree this
chart is a little contrived, but it does show exactly the same argument as the ratio chart above
and in a visually more simple manner.
But the point I’d like to make is back on the ratio chart and on the right of the squiggly line. As
both tonnages held by GLD and the price dropped, the ratio has held close to the median
average and looks neither undercooked or overcooked. Why that might be is up for debate, but
I’d tentatively suggest that both price and holdings dropped in near-tandem because 1) some
light has been thrown on the GLD bullion sales recently (even by blogs as unimportant as IKN),
or 2) the trading jocks are looking for a reason to sell into Goldman Sach’s warning of low gold
to come or 3) the end is justifying the means, with this time the sales causing the price drop.
Or a mix of those ideas. Sentiment’s more difficult to judge and we may see further momentum
based selling next week, or even a rebound based on factors other than a near-term oversupply
to the market. But on a level-headed assessment, the ratio’s apparent stability at its median
suggests that there’s no reason to expect further price drops simply because GLD holders have
been liquidating a bit of paper bullion assets.
Bottom line: Gold’s moves next week will be for reasons other than last week’s selling of GLD
bullion holdings.
Conclusion
IKN258 is done, we end with bullet points:
• Yes, I continue with my modest nibbling at the market as it drops, out of fashion and
out of favour. I might not have the biggest amount of cash to throw at it, but picking
away suits my current mindset. Next week I’ll add some Bear Creek (BCM.v), as adding
along the way was part of the original plan and its drop makes the entry point easier.
I’m aware it could go lower and the chart points to a stomach churning ride in the near
future, that’s ok.
• On the shopping list behind BCM is a potential addition to Coro Mining (COP.to) but the
one on my wishlist that really has my eye now is Reservoir Minerals (RMC.v). Whatever
happens next week, I’ll be following it closely
18

• Eyes peeled on Focus Ventures (FCV.v) and its now due (or close to due) first assay
• Happy Easter to you all.
The top long-term picks are Rio Alto Mining (RIO.to) and Minera IRL (IRL.to). I thank
you in advance for any feedback. Flash updates will be sent promptly if required by events.
I wish you good trading fortune, ladies and gentlemen.
Otto
19

Footnotes, appendices, references, disclaimer
(1) http://finance.yahoo.com/news/dalradian-announces-updated-mineral-estimate-155156886.html
(2) http://finance.yahoo.com/news/benton-capital-executes-loi-acquire-170802465.html
(3) http://finance.yahoo.com/news/agnico-eagle-yamana-gold-announce-132400877.html
(4) http://www.canadianinsider.com/node/7?ticker=TKO
(5) http://incakolanews.blogspot.com/2014/04/selling-bullion-in-main-gold-etfgld.html
Stocks To Follow Closed Positions, 2012
Closed in 2012 closed close PPS
Soltoro SOL.v jan'12 C$0.87 07-nov-11 C$0.94 8.0% cash moved to BCM.v
Gold-Ore Res GOZ.to feb'12 C$0.84 13-oct-10 C$0.98 16.7% trade closed on ELG.v offer
Minefinders MFN feb'12 U$11.68 17-nov-11 U$14.80 26.7% target made, trade closed
Iron Creek IRN.v mar'12 C$0.58 26-sep-10 C$0.31 -46.6% time up on small bad trade
U.S. Silver USA.to apr'12 C$2.18 15-mar-12 C$1.86 -14.7% ST trade no good, cut loss
Augusta Res. AZC.to may'12 C$3.10 29-jan-12 C$2.07 -33.2% bad mkt, bad trade cut loss
Bellhaven BHV.v may'12 C$0.50 22-sep-10 C$0.28 -44.0% new mgmt not impressive
Zincore Metals ZNC.to may'12 C$0.325 29-jul-11 C$0.17 -47.7% bad mkt, bad trade cut loss
Soltoro SOL.v may'12 C$0.70 18-mar-11 C$0.41 -41.4% bad mkt, bad trade cut loss
U.S. Silver USA.to aug'12 C$1.78 27-jul-12 C$1.36 -23.6% fail ST trade close pre split
Estrella Gold EST.v aug'12 C$0.91 27-mar-11 C$0.14 -84.6% Closed on port realignment
Fortuna Silver FVI.to sep'12 C$1.07 03-may-09 C$5.32 397.2% sell call $6.17/ Mar25
Strait Minerals SRD.v oct'12 C$0.125 09-dec-11 C$0.12 -4.0% closing coverage til FY13
Sunward Res SWD.to oct'12 C$1.47 13-mar-11 C$1.21 -17.7% sold, took loss
Gold Res Corp GORO oct'12 U$21.47 09-sep-12 U$17.40 19.0% Short trade closed
Yellowhead Min. YMI.to nov'12 C$1.00 01-apr-12 C$0.63 -37.0% sold, took loss
Primero Mining PPP nov'12 U$7.26 07-oct-12 U$6.73 7.3% Short trade closed
Bear Creek Min. BCM.v nov'12 C$3.38 07-nov-11 C$3.72 10.1% Took small profit
Vena Resources VEM.to dec'12 C$0.70 31-may-09 C$0.18 -74.3% Failed trade (caps F)
Galway Res GWY.v dec'12 C$2.19 24-nov-12 C$2.30 5.0% closed good ST arb trade
Stocks To Follow Closed Positions, 2011
Closed in 2011 closed close PPS
Sunward Res SWD.v jan'11 C$1.05 21-nov-10 C$1.63 55.2% target made, trade closed
Serengeti Res SIR.v mar'11 C$0.245 05-dec-10 C$0.285 16.3% sold pre-tgt, ST trade fail
Fronteer Gold FRG apr'11 U$2.37 03-may-09 U$15.24 543.0% buyout, trade closed
Minefinders MFN apr'11 U$9.09 07-nov-10 U$16.89 85.8% target made, trade closed
Metalline Min. MMG may'11 U$1.04 26-jan-11 U$0.89 -14.4% exit, resource disappointed
Peregrine Met PGM.to jul'11 C$0.87 06-mar-11 C$2.60 198.9% buyout offer, closed
Dynasty Metals DMM.to jul'11 C$4.20 03-may-09 C$2.85 -32.1% Sold. Fail. Move on.
Aura Silver AUU.v aug'11 C$0.22 13-oct-10 C$0.16 -36.4% Bad pick. Take loss
U.S. Silver USA.v aug'11 C$0.52 26-jan-11 C$0.71 36.5% closed to make room
B2Gold Corp BTO.to sep'11 C$2.80 12-may-11 C$4.27 52.5% target made, trade closed
Bear Creek Min. BCM.v sep'11 C$3.80 27-may-11 C$4.17 9.7% macro sell call victim
Minefinders MFN sep'11 U$14.70 10-aug-11 U$15.15 3.1% macro sell call victim
Great Panther GPR.to sep'11 C$3.03 22-aug-11 C$2.64 -12.9% macro sell call victim
Fortuna Silver FVI.to sep'11 C$1.07 03-may-09 C$5.36 400.9% sold 20%, macro sell call
Focus Ventures FCV.v nov'11 C$0.40 20-apr-10 C$0.20 -50.0% cut losses, bad trade
Regulus Res. REG.v dec'11 C$1.17 14-aug-11 C$0.52 -55.6% cut on news of poor 43-101
2009 and 2010 closed positions in appendices below
20

Stocks To Follow Closed Positions, 2010
Closed in 2010 closed close PPS
B2Gold Corp BTO.to Jan'10 C$0.88 08-nov-09 C$1.49 68.2% target made, trade closed
Radius Gold RDU.v Jan'10 C$0.18 23-aug-09 C$0.40 122.2% target made, trade closed
MAG Silver MVG mar'10 U$5.60 23-nov-09 U$7.28 30.0% closed in pdac week
Riverside Res RRI.v mar'10 C$0.435 20-sep-09 C$0.60 37.9% closed in pdac week
Amarillo Gold AGC.v mar'10 C$0.81 31-may-09 C$0.70 -13.6% closed in pdac week
B2Gold Corp BTO.to apr'10 C$1.24 18-feb-10 C$1.50 21.0% target made, trade closed
Lumina Copper LCC.v apr'10 C$0.84 14-jun-09 C$1.55 51.2% total position now sold
Troy Resources TRY.to may'10 C$1.10 03-may-09 C$2.25 104.5% sold on negative results
AuEx Ventures XAU.to may'10 C$2.51 24-may-09 C$3.38 34.7% trade closed
Nevada Copper NCU.to jun'10 C$3.27 14-mar-10 C$2.03 -37.9% need to lower Cu exposure
Carpathian Gold CPN.to jun'10 C$0.39 14-mar-10 C$0.35 -10.3% too exposed to cap raising
Amerix PM Corp APM.v jun'10 C$0.065 08-nov-09 C$0.05 -23.1% victim of macro bear
Antares Minerals ANM.v jun'10 C$1.42 06-dec-09 C$2.10 47.9% sold half
Vena Resources VEM.to jun'10 C$0.37 31-may-09 C$0.23 -37.8% sold half
Minera Andes MAI.to sep'10 C$0.75 28-jul-10 C$0.95 26.7% ST trade closed
Gold-Ore Res GOZ.to sep'10 C$0.52 01-aug-10 C$0.75 44.2% target made, trade closed
B2Gold Corp BTO.to sep'10 C$1.45 25-may-10 C$2.01 34.5% target made, trade closed
Blue Sky Uran BSK.v oct'10 C$0.41 19-may-10 C$0.22 -46.3% v small v bad trade closed
Dia Bras Expl DIB.v oct'10 C$0.14 30-aug-09 C$0.35 150.0% target made, trade closed
S. Amer. Silver SAC.to nov'10 C$1.38 24-oct-10 C$1.60 -15.9% loss on short, small fail
Ventana Gold VEN.to nov'10 C$7.92 27-jun-10 C$13.51 70.6% trade closed on buyout
Lumina Copper LCC.v nov'10 C$1.42 11-aug-10 C$3.65 157.0% trade closed
Antares Minerals ANM.v dec'10 C$1.42 06-dec-09 C$8.40 491.5% trade closed
Rio Alto Mining RIO.v dec'10 C$0.69 23-mar-10 C$2.16 213.0% trade closed
Coro Mining COP.to dec'10 C$0.585 03-oct-10 C$1.24 112.0% target made, trade closed
Stocks To Follow Closed Positions, 2009
Closed positions closed closing PPS
Cardero Res CDY/CDU.to May'09 U$1.20 03-May-09 U$0.87 -27.5% sold on negative news
Eastmain Res. ER.to May'09 C$1.04 06-May-09 C$1.315 26.4% trade closed
Radius Gold RDU.v May'09 C$0.165 03-May-09 C$0.235 42.4% trade closed
Latin Amer Min. LAT.v May'09 C$0.12 03-May-09 C$0.158 29.2% trade closed
Aquiline Res. AQI.to July'09 C$2.03 16-Jun-09 C$1.68 -17.2% took loss, bad timing
Chariot Resources CHD.to Aug'09 C$0.20 12-Jul-09 C$0.415 107.5% trade closed
Castle Gold CSG.v Sep'09 C$0.64 02-Aug-09 C$0.60 -6.3% ST trade didn't work out
Guyana Goldfields GUY.to Sep'09 C$2.30 12-May-09 C$4.50 95.7% profit taken
Los Andes Copper LA.v Sep'09 C$0.09 21-Jun-09 C$0.09 0% trade closed
Pediment Gold PEZ.to Oct'09 C$0.80 09-Aug-09 C$1.00 25.0% trade closed
Minera Andes MAI.to Oct'09 C$0.68 03-May-09 C$0.71 4.4% too much bad news
Dynasty Metals DMM.to Nov'09 C$4.18 03-May-09 C$6.01 43.8% half sold
Rusoro Mining RML.v Nov'09 C$0.55 03-May-09 C$0.57 3.6% underperformed
Important Disclosure
The information and opinions contained within this report reflect the personal views of the author and therefore all
material within should not be construed as accurate or reliable or be utilized as advice for investment or business
purposes. Independent due diligence and discussions with ones own investment and business advisor is strongly
recommended. Accordingly, nothing in this report should be construed as offering a guarantee of the accuracy or
completeness of the information contained herein, as an offer or solicitation with respect to the purchase or sale of any
security or as an endorsement of any product or service. All opinions and estimates included in this report are subject to
change without notice. It is prohibited to copy or redistribute this report to any type of third party without the express
permission of the author.
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