IKN #273Premium

The IKN Weekly
Week 273, August 3rd 2014
Contents
This Week: Why Calculated Risk, Why not The IKN Weekly, Near term noise.
Fundamental Analysis: Minera IRL (MIRL.L) (IRL.to) sells Don Nicolas, Timmins Gold (TGD)
(TMM.to) reports its quarter.
Stocks to Follow: Overview, GoldQuest Resources (GQC.v), Reservoir Minerals (RMC.v),
Focus Ventures (FCV.v), Santacruz Silver (SCZ.v), Lara Exploration (LRA.v), NovaCopper
(NCQ.to), Rio Alto (RIOM) (RIO.to), True Gold (TGM.v).
Copper Basket: Overview, NGEx Resources (NGQ.to), Augusta (AZC.to), Cordoba (CDB.v).
Low Cost Producer Basket: Overview, First Majestic (AG) (FR.to).
Regional Politics: Comparing Peru and Bolivia on mining and macro, Peru’s quiet season for
protests: Enjoy it while it lasts, Codelco gets a new CEO and a U$4Bn cash injection from the
government of Chile.
Market Watching: The Los Cardones project gets environmental approval in BCS Mexico; we
consider the potential knock-on effects for Argonaut (AR.to) and Vista (VGZ), Argentex Mining
Corp (ATX.v) redux, Gold Resource Corp (GORO): On watch for the short trade.
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
Why Calculated Risk
I’ve extolled the virtues of the U.S macroeconomic tracking blog Calculated Risk more times
than I care to count, which is for a very good reason: Bill McBride is impressively accurate in
forecasts for his chosen subject. Take for example the BLS report out Friday, which gave us
NFP job growth of +209,000. In his Thursday preview McBride as always went through the pros
and cons, the things to consider, then added his own views and ended with:
“Conclusion: ... There is always some randomness to the employment report,
but the I'll take the under on the consensus forecast of 233,000 nonfarm
payrolls jobs added in July.”
Once again, right on the button.
Why not The IKN Weekly
With wonderful timing, your author chooses the wrong week to take a more vociferous position
against the consensus view of the Kitco Gold Experts. At least I admitted there was more than a
little sticky-neck-out involved, what with gold up against a FOMC and BLS week’s worth of
newsflow, but all the same my blasé call to fade the Kitco survey and expect an improvement in
the gold price last week was well and truly shot down in flames. Instead, GLD dropped 1.11%
on the week and proved right the 63.6% of the experts that called that option.
This means their overall score improves slightly and of course, leaves egg all over your author’s
ugly face. Quite right too, sticking one’s neck out that far on a single week’s movements
1

deserves its payback.
Near term noise
One of the few parts about this job that irks is writing script on a weekly basis that tries to keep
the narrative vaguely interesting, because sometimes it just plain isn’t. Or as one junior miner
CEO who’ll remain nameless told me, “You’re good at saying the same thing in different ways”.
Though probably true it’s not something about which I’m at all proud, and it most grates on me
those weeks where I sit down, write for a few hours and then on reviewing the work either edit
it into small pieces or simply delete it all (for the record I’ve just done exactly that again this
weekend, consigning about 1,000 words of what turned out to be little more than me spouting
to the great library in the sky).
Part of it is a reflection on how I keep myself interested in a too-flat sector and that’s by
proposing and running near-term trades. They provide material for commentary and while
things are slow I tend to grab them with both hands and make them out to be more important
and pressing than they really are. And that’s the point of this short intro today, a reminder that
they’re not. Bucks can be made by flipping in and out and there’s nothing wrong with that, but
the big bucks come from buying good stocks at discounted prices, then waiting. And waiting.
And then waiting some more as yes, it can be boring as hell and it’s not fodder for a publication
with a due date once every seven days. It comes to a head on days such as this, the first of
five Sundays this August that get me wondering what I can keep you people entertained with
during The Doldrums. So yes, a cute turn of phrase here, a sharp comment about company X
there, a trade idea floated past your eyes. Can do, Let Me Entertain You, blah blah blah.
All this near-term noise matters somewhere between little and nothing. What matters is:
Buy Rio Alto, go fishing, come back when it’s higher.
Or if you prefer:
Put your cash into decent assets now, because decent assets are heavily
discounted.
Or a third option:
Invest in a range of solid companies which will appreciate over time, while
enjoying a little side action through trading.
Or variations on the theme. While you’re at it, ask yourself why you’re paying good money on a
monthly or yearly basis to read somebody saying the same thing over and over again. Twenty
five dollars is ten shares of RIOM, after all.
Fundamental Analysis of Mining Stocks
Minera IRL (IRL.to) (MIRL.L) sells Don Nicolas
On Wednesday morning IRL announced it was selling out of its participation in the Don Nicolas
project in Santa Cruz Argentina, with its JV partner
CIMINAS paying a total of $11.5m for the IRL
share. As a result the stock did this (right) though
to be fair the volume was still light compared to
the 245m S/O total and last week wasn’t a good
one for most juniors, not just IRL. In the Flash
update sent Thursday (see Appendix 1) the call
was to hold through on this news and what
follows are more thoughts to back up that call.
On Friday I managed to catch up with company
CEO and head honcho Courtney Chamberlain, and
2

naturally the main subject of conversation with the corporate thought process behind the Don
Nicolas sale decision. CEO Chamberlain noted that Don Nicolas, far from being a self-contained
unit that was growing and building-out with minimal management needs, was taking up a lot of
management time in trouble-shooting due to the string of problems that came from working in
Argentina. Yes progress has been made on the build-out, but the project had got to the point
where it was interfering significantly with the day-to-day running of IRL at a corporate level.
When the main order of the day is securing financing for your flagship project, tha’s no small
issue. Next, CEO Chamberlain said that the accepted offer gave IRL the opportunity to
crystallize returns. We agreed that Don Nicolas is a good asset and in a better market (along
with improved political risk for Argentina) could be worth a lot of money, certainly a lot more
than the nominal $23m price tag put on it by last week’s announced deal. However even in the
good circumstances the mine would not generate free cash flow for the greater corporation in
its first years of operation, as profits were planned to be driven back into exploration of the
wider concession. With IRL needing cash for Ollachea, the offer from CIMINAS was made at the
right time (for which party is another question) and it was clear that there wasn’t a queue of
potential bidders for IRL’s 51% either. One of the things Chamberlain said that struck home
was that “It was a disappointing decision, but not a hard decision (to make)”. That’s an honest
assessment from an engineer who had invested a lot of time into the Don Nicolas project
(Chamberlain’s association with that particular tract of land goes back to before IRL and his
days in Newcrest) but was also clear about his main responsibilities towards company,
shareholders and the real value driver of IRL, Ollachea.
Next some personal opinion that expands slightly upon the Flash update of Thursday morning
and the first thing that needs to be said is that although I don’t like the deal to sell Don Nicolas,
it didn’t surprise me when I read about it. Two or three months ago I met with one of the IRL
officers (no names) and once the meeting was over, the person in question kindly offered to
drive me to the airport, the IRL date being my last meeting of the day. I accepted the offer and
on the way, in as casual a way as you could ever imagine, my lift-giver asked for an opinion on
whether selling Don Nicolas were a good or bad option.
Back then I said it was a negative for the company, because the thing a junior needs to do as
much as it possibly can is to keep hold of its assets through this fallow period. They’re not
being priced well and when the market picks up, buyers of decent projects will be the winners.
Here today my opinion hasn’t changed and I consider the news out of IRL last week to be a
negative for the company. It would have been better overall to have kept Don Nicolas and
perhaps find a better time to sell at a higher price (it’s carried on the balance sheet at around
$43m, so a nominal hit’s going to be taken there in the 3q14 numbers). But it has to be said,
it’s not a massive negative either. Every time IRL is the subject in The IKN Weekly it’s made
plain that Corihuarmi has its minor value and so does Don Nicolas, but this company will stand
or fall on Ollachea. Corihuarmi has been a nice little operation and may have an extra year or
three in it but the emphasis is on little, so as long as its free cash flow covers corporate G&A
you’ll hear no complaint from me but it’s not the reason to own the stock, either. Don Nicolas
was (we now use simple past) an asset that wasn’t going to provide much in the way of bottom
line profits for the first few years of its life and obviously (it takes the time you need to check
the company’s share price) it wasn’t giving IRL much or any sort of equity value.
The bottom line is that it’s an understandable call being made here.
Now for a little valuation work and today we’re sticking firmly with Ollachea as our value
driver. This model is similar to the one used in the (now rather long in the tooth) analysis on
IRL fund in IKN226, because at this this main asset held by IRL hasn’t changed much in that
time. However there are changes which are:
• We now consider U$1,300/oz gold as the valuation price for IRL (was $1,350/oz)
• CAD$1 = U$0.90 (was parity)
• We assume the final shares out total will reach 330m (was 350m). The lower count is
due to IRL having some cash to put to the capex for Ollachea, plus the cost-cutting
3

plans for the capex that have shaved ~$10m from the proposed bill.
• Interest servicing at $15m, as I was guided at the time of the last analysis by IRL that
my $20m assumption was too high. I’ll take their advice on that
With those variables in place alongside the previous assumptions (based largely on the IRL feas
parameters), here’s how our typical year income model stands for Ollachea alone:
Ollachea: Income items for model year
At 3,000tpd thruput $1,300/oz Au $1,350/oz Au $1,400/oz Au $1500/oz Au
Sales (U$m) 137.7 143.0 148.2 158.8
Cash COGS 70.4 70.4 70.4 70.4
Depreciation 12.0 12.0 12.0 12.0
SGA 6.0 6.0 6.0 6.0
Op income 42.4 47.4 52.4 62.5
Interest 15.0 15.0 15.0 15.0
Workers Part. 3.4 3.8 4.2 5.0
Tax 7.2 8.6 10.0 12.7
Net income 16.8 20.0 23.3 29.7
Shares out (m) 330 330 330 330
EPS 0.05 0.06 0.07 0.09
Sust. Capex -2 -2 -2 -2
FCF/sh 0.08 0.09 0.10 0.12
Source: IKN ests
In the final target, since the last look at the model I’ve bumped the PE multiple from 4X to 5X. I
toyed with raising it to 6X (which gives a 34c target and 77% upside) but decided against that;
the project deserves a better PE, but let’s take things one step at a time before throwing in
better multiples. However, due to its receiving all necessary permits and now with a free run to
construction and production, IRL at Ollachea does deserve a better PE providing IRL can raise
the cash.
IRL Ollachea: Sales and earnings Target price & valuation data at various gold prices
Gold Price $1300 $1350 $1400 $1500 using four different gold prices
Sales (C$m) 138 143 148 159 12-month target $0.28 (on 5x annual EPS using
Upside to target 47% gold at U$1300/oz)
EPS 0.05 0.06 0.07 0.09 Mkt cap (C$m) $47 Enterprise value $34
Cash flow 0.09 0.10 0.11 0.13 P/sales ($1500) 0.33 EV/sales ($1500) 0.23
P/E ($1500) 3.7 EV/EBITDA ($1500) 0.6
P/E ($1600) 3.1 EV/EBITDA ($1600) 0.6
P/E ($1700) 2.7 EV/EBITDA ($1700) 0.5
cash flow defined simply as EPS + depreciation
That’s no small matter of course, and also the manner in which it raises the capex cash will be
equally important (those devils are still in the details).
In sum, even without Don Nicolas and simply ignoring Corihuarmi, a very modest projection on
Ollachea with plenty of conservatism baked in and a lowered gold price assumption to boot
gives us a 47% upside to current share prices.
Conclusion
In 2014 we considered IRL on an ongoing basis several times and updated the model on a
formal basis too, but the three main decisions in recent times have been:
• To bring it down form Top Pick
4

• To add an extra portion of shares at a teens price in order to bring down the cost
average
• To wait and see how IRL manages to fund Ollachea before making any decision to
return the company to a Top Pick or to sell and leave.
For sure this hasn’t been a great trade so far and this company suffered more than most when
gold fell off its cliff in early 2013. Today isn’t shirking away from that, it’s more about the recent
developments and the moves to mitigate and as things stand today, I’m happy about the way
all three of those calls above have panned out. IRL’s decision to sell its participation in Don
Nicolas last week is a negative in my book, as I’d like to see it hold onto its assets during the
low valuation period we’re in, but it’s nothing even close to a company or trade killer and it’s
also perfectly understandable as a lesser of evils option. IRL needs working capital, this sale
brings $11.5m in working capital to the company which buys time and adds a small portion of
the money it will need to build its flagship. Aside from that, there’s a clear advantage in
removing its exposure to Argentina that’s likely to be viewed positively by those who would
finance Ollachea, no matter whether the selling price were one dollar or thirty million.
IRL remains a hold on last week’s somewhat disappointing news and will stay that way until we
have the deal for Ollachea capex in our hands. On that and to round off, CEO Chamberlain
confirmed that the company was working on a number of alternative in parallel (which fits what
I’ve picked up from other places) and that at the very least, having $10m in the bank means
that the immediate pressure is off and the company can seek a deal without having a clock
running.
Timmins Gold (TGD) (TMM.to) 2q14 results
The morning of Tuesday 29th saw Timmins Gold (TGD) (TMM.to) report its quarter (2), so a
brief round-up of what we saw in this (so far at least) winning position that’s basically a
continuation of the “in line) comment left on the blog that morning, pre-bell (3). In that post I
also wrote that “...gold's moves will affect its
share price this week more than this set of
numbers” and as this five day chart shows,
aside for a ~2% drift away and then back
Wednesday and Thursday, that call was right
enough (no sweating of the small stuff,
please).
I also did the ConfCall later that morning (so
that you don’t have to) which didn’t provide
any great extras in insight, but the tone of the
call was good and management seems to be
comfortable again with the slightly altered
new board after that proxy kerfuffle, now
blown over. Guidance was also confirmed for
the rest of the year and that’s not a
bad thing either, but it’s looking Timmins Gold (TMM.to) (TGD): Quarterly gold sales
increasingly like TMM is under- 40000
promising on that score and as I think 35000
we’re going to see production beat the 30000
125k oz Au upper level of guidance, I’m 25000
adjusting the model accordingly today. 20000
15000
So to the numbers and starting with 10000
gold sales, the 33k oz of 2q14 was pre- 5000
announced and fits in well with the
0
other bars. I’m expecting a little less
from 3q14, but 4q14 is now estimated
at 34,000 oz Auwhich would bring the
5
21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 41q1 41q2 tse41q3 tse41q4
Oz Au
source: Company filings

2014 annual total to ~135k oz Au.
The TMM average realized selling price for gold was U$1,284/oz in 2q14, slightly below our
house guesstimate of $1.3k and that difference explains nearly all of the slight (0.7m) op
earnings miss in the IKN model. For the rest of the year, I’m currently assuming U$1,310/oz for
3q14 and U$1,350/oz for 4q14, which might sound a little optimistic to you but it’s under my
forecast exit price for gold in 2014 of U$1,400/oz.
Timmins Gold (TMM.to) (TGD): Avg realized price for gold
1800
1600
1400
1200
1000
800
600
400
200
0
6
21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 41q1 41q2 tse41q3 tse41q4
U$/oz
source: company filings
So here’s how the overview earnings chart looks:
TMM.to/TGD: Quarterly Earnings overview
50
45
40
35
30
25
20
15
10
5
0
11q1 11q2 11q3 11q4 21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 41q1 41q2 tse41q3 tse41q4
source: company filings, IKN ests
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revenues
COGS
Gross profit
Revenues $42.282m were fine, COGS of $29.4m were slightly under our house guess and that’s
pretty good stuff, which means gross profit came in at $12.983m. For the rest of 2014 we’re
really in the hands of the gold price movements, but assuming a slight uptrend in COGS and
our gold price model assumptions above, gross profit should rise to around $15m come 4q14.
Here’s a closer look at costs and the news here is that the slight savings in mine site COGS
were countered by a sharp rise in G&A. At $5.373m it
TMM.to/TGD: Costs breakdown
was $3m heavier than in Q1 and according to the
40
TMM 2q14 MD&A, $2.0m of that was due to hiring 36
extra consultants to handle the proxy slate. That 32
28
would leave maybe $600k to $1m over our previous
24
estimate which is...well, it’s heavier than I expected, 20
with or without the legal beagles chewing up 16
corporate cash flow. 12
8
4
As a result, operating profit dropped to $7.246m. 0
That’s low end compared to previous quarters but we
can expect it to be back in the $9+m range come
3q14 and if gold treats us well, $12m in 4q14.
11q1 11q2 11q3 11q4 21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 41q1 41q2 tse41q3 tse41q4
U$m
other
impairment
G&A
COGS
source: company data, IKN ests

TMM.to/TGD: operating profit
25
19.166 19.253
20
15.793 16.384
14.345
15 13.043 12.861 12.000
9.63610.44910.334
9.2619.245 9.300
10
7.246
5 3.382
0
7
11q1 11q2 11q3 11q4 21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 41q1 41q2 tse41q3 tse41q4
U$m
source: company filings, IKN ests
One thing playing in favour of better bottom lines is that cash flow used in investing activities
was $7.5m, lower than in the same period of 2013 and will drop as the rest of 2014 plays our
too. 2q14 marked the tail end of the capex heavy investment programs launched in 2013 and
as a result, we can expect more free cash flow to make it to the company treasury. That
effect’s seen in our forecast for EPS in the quarters to come in this chart
TMM.to/TGD: Earning per share, per qtr
0.12
0.10
0.08
0.06
0.04
0.02
0.00
-0.02
-0.04
11q1 11q2 11q3 11q4 21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 41q1 41q2 tse41q3 tse41q4
U$
source: company filings, IKN ests for FY14
Which should improve from the low bottom lines we’ve had from the company in 2013 and this
year.
Over at the balance sheet there was a jump in cash held at treasury, which we’re expecting to
grow as the next quarters reap their profits and the forecast is for TMM to leave 2014 with
around $67m in cash. A useful number.
TMM.to/TGD: Assets Breakdown per qtr 350
325
300
275
250
225
200
175
150
125
100
75
50
25
0
I got my liabilities forecasting for this one wrong, though. Instead of seeing TMM working down
its current debt, the number increased to a touch over $40m.
11q4 21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 41q1 41q2 tse41q3 tse41q4
source: company filings
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TMM.to/TGD: Cash and ST
Trade/Rec 80
Inventory 70
fixed
other current 60
cash&ST 50
40
30
20
10
0
11q4 21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 41q1 41q2 tse41q3 tse41q4
source: company filings, IKN ests for 4q13

There’s zero problems here for the company, more a case of me getting my model wrong on a
company I haven’t followed for much time.
TMM.to/TGD: Liabilities Breakdown per qtr
120
110
100
90
80
70
60
50
40
30
20
10
0
8
11q4 21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 41q1 41q2 tse41q3 tse41q4
source: company filings, IKN ests
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LT debt
current debt
The lack of liquidity and general balance issues shows clearly in working capital. TMM is doing
just fine, has a shade under $70m in working cap and
100 TMM.to/TGD: Working Capital per qtr
as those capital projects are now largely completed,
90
we forecast that to push higher as the year 80
progresses. 70
60
50
As I’m sure you remember, I’m long TMM (well, TGD
40
the US ticker this time) because I am confident it’s a
30
prime buyout target for Argonaut Gold (AR.to). That’s 20
the kind of cash accumulation that can attract the 10
acquirer more quickly. 0
Semi-on-subject, here’s the share count evolution, and
there’s no reason to expect any change from the
~164m S/O of today in the indefinite future.
Overall, a solid quarter from Timmins that was very
much in line with our expectations. As for the house
plan, that’s staying with giving the stock 3q14 in which
to attract its official suitor and if it doesn’t arrive by
September 30th 2014, revisiting the stock and making
a revised buy/hold/sell decision on it. At the moment it
doesn’t look the cheapest gold producer out there, but
it’s not overly expensive either. An easy one to hold.
11q4 21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 41q1 41q2 tse41q3 tse41q4
source company filings, IKN ests
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TMM.to/TGD: Shares Out 200
180
160
140
120
100
80
60
40
20
0
11q1 11q2 11q3 11q4 21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 41q1 41q2 tse41q3 tse41q4
source: company filings, IKN ests
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Stocks to Follow
It was a bad week for the list, with just two of the 15 names registering gains (NCQ.to, EOM.to)
and two others unchanged (RMC.v, FCV.v). That means eleven losers (not listing them all) with
several large percentage losers counting among them such as Salazar (SRL.v down 25.0%),
GoldQuest (GQC.v down 15.7%), Coro (COP.to down 14.3%), Minera IRL (IRL.to down 13.6%),
and Lara (LRA.v down 10.3%). With gold dropping under $1.3k and going as low as $1,280/oz
for a while, the big fat reset button was hit.
We currently have 15 open positions on our ‘Stocks to Follow’ list, our normal and self-imposed
maximum. Six are in the green, one unchanged, eight are in the red.
Reco Current
company Ticker this week Avg Price date PPS Gain/Loss% Notes
Top Picks
Rio Alto Mining RIO.to str buy C$2.30 07-apr-11 C$2.54 10.4% Top pick, $3.30 tgt June 15
Recommended long positions (in current order of preference)
Timmins Gold TGD buy U$1.38 09-apr-14 U$1.82 31.9% $2 tgt but holding in 3q14
Minera IRL IRL.to spec buy C$0.27 22-jul-12 C$0.19 -29.6% Ready for financing deal
Goldquest Min. GQC.v buy C$0.26 27-oct-13 C$0.215 -17.3% drillplay spec, added end Jul
Reservoir Min. RMC.v buy C$6.05 18-jun-14 C$6.00 -0.8% 2nd add this week, M&A play
Focus Ventures FCV.v hold C$0.23 01-jul-12 C$0.275 19.6% tgt 50c, added, avged up
Dalradian Res DNA.to hold/add? C$0.65 27-oct-13 C$0.85 30.8% Poss add window, tgt $1.70
True Gold TGM.v hold C$0.395 02-feb-14 C$0.435 10.1% LT hold, takeover play
Amerigo Res ARG.to buy C$0.445 20-jul-14 C$0.445 0.0% new position, sm Cu play
NovaCopper NCQ.to spec buy C$1.05 09-apr-14 C$1.11 5.7% small, adding slowly
Santacruz Silver SCZ.v hold C$1.04 26-jan-14 C$0.85 -18.1% silver/M&A spec, rel. small
Lara Expl. LRA.v hold C$1.15 08-apr-12 C$0.74 -33.9% solid biz model, LT hold
Eco Oro Min. EOM.to hold C$0.48 22-sep-13 C$0.30 -37.5% paramo resolution missing
Recommended short positions
None at moment
Smaller/Riskier
Coro Mining COP.to spec buy C$0.125 26-jan-14 C$0.06 -52.0% Cu spec play, can add
Salazar Res SRL.v hold C$0.28 02-mar-14 C$0.15 -46.4% 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
Gold Res Corp GORO may'14 U$5.07 26-jan-14 U$4.12 16.7% Re-short now full position
Bear Creek Min BCM.v may'14 C$1.63 23-mar-14 C$2.05 25.8% Ag/pol risk trade, avged down
2009, 2010, 2011, 2012 and 2013 closed positions in appendices below
Now for some notes on a selection of the above stocks.
GoldQuest Mining (GQC.v): Added. As per the Flash update of Thursday morning (see
Appendix 1) I added a fair bit to this position at 23c and 22.5c and got the cost average down
to the mid-20s. The news (4) on which it reacted was covered in the Flash update and the
second update which underscored my intention to buy on this weakness. The central reason to
9

add last week was due to the location of the reported drill holes. It’s best to check out the
whole drill map here (5) but this section of the map gives the general idea if you can’t be
bothered to click through. The reported holes were ones trying to connect the known
mineralization of Romero and Romero South, something that GQC has tried to do on previous
occasions with little success. The holes showed little (you can tell that by the share price
movements last week) but the real reason we’re long GQC is on the potential it opens up a new
area of mineralization on the larger Tireo property and the first results of that will come once
the next set of holes are released.
As you can see on this map, there’s a minimum of 3km between the reported holes of last week
and the ones to come soon, often more. It’s a whole different show North of Romero and one
that could add real value to the property if they find
the right dirt.
The selling last week looks knee-jerk and way
overdone, it happened on drill results that were
fishing in a speculative-at-best zone, it doesn’t reflect
either the current value of the Romero twins nor the
wider potential, though some blame must be left at
the door of the company for springing a bunch of
dusters on us when they’d primed us all for new
exploration drilling numbers from previously
untrodden areas. In the words of a mailpal who
knows the company pretty well, “It is strange that
the company didn't make obvious that these holes
were not necessarily testing the newer targets. They seem to do this often, sort of
masochistic.”. Agreed.
Anyway, although still an obvious drillplay speculation position and all the risk that one of those
entails, the holding is now bigger and the cost average lower thanks to last week’s fun and
games. As this 12 month price chart shows, we’ve seen GQC down at these levels not so very
long ago and it bounced back, I’m betting on the same kind of recovery.
10

Reservoir Minerals (RMC.v): Trading is light and tight, with the stock being gently worked
back by someone to close unchanged at $6-dead on the week. No great shakes thee, but RMC
did offer us some news of a new land grab
it’s made around the Timok/Serbia region.
RMC: Working capital
This time on Thursday it announced (6) the
50
acquisition of four exploration licences
40
covering 278km2 of prime copper hunting
grounds in the central zone of Serbia. It’s a 30
good fit all round, for the country must be
20
happy with the way in which RMC has
operated to now, the company gets to start 10
a new grassroots exploration cycle and as
0
noted just last week (here’s a repeat of one
of the charts)
When the eventual FCX buyout comes, it’s
either more for the acquirer to like or more to spin out into a newco and add value to the deal.
Focus Ventures (FCV.v): FCV continues to bump around between 27c and 30c, which is fine.
At the beginning of last week we got the last of the drill numbers from the initial Bayovar 12
program (7) which again came in right on the button compared to expectations (they say,
“...remarkable consistency in phosphate grades within individual beds over long distances...”)
and have confirmed the company’s theory about what lies underneath.
The next step is the initial resource count, which seems to be on track for the originally planned
timeline of early September.
Santacruz Silver (SCZ.v): Yes I am beginning to wonder why I’m holding this stock. However
the second thoughts that come are the same old combo 1) it’s silver and although not
enamored of the metal in today’s market mix I want at least a little exposure 2) it’s a small
holding and does little damage to ride through this rough period 3) as a potential takeover play,
you never know when a suitor might make a move. So it’s getting held through, though
obviously one on the back-burner.
Lara Exploration (LRA.v): LRA dropped back after that sudden rush up the week before, but
it did ok and along the way we got decent news as well. On Tuesday LRA announced (8) the
closure of the deal to sell its Corina project to Ares (wholly-owned subsidiary of Hochschild
(HOC.L) via optioning in and that was a pretty speedy deal too, going from LOI to complete in
11
11'voN 21'beF 21'yaM 21'guA 21'voN 31'beF 31'yaM 31'guA 31'voN 41'beF 41'yaM
U$m
source: RMC filings, IKN ests

just over one month. Yet again and true to form, it’s another deal that will bring a steady
stream of funds into the company ($150k already paid, a total of just over $4m for LRA over
the next four years assuming all goes perfectly and HOC picks up the option stages) and LRA
gets to keep a 2% NSR on any eventual production, too.
Once again, it’s the type of deal that keeps LRA ticking over nicely and monetizing assets,
keeps the share count tight and value in our equity holding while the market works its way
through the current stodgy market. LRA’s prospect generator model works and further down
the line there’s always the possibility it gets a home run out of any of its larger projects. For
example on that the Sami project may have been picked up and then returned recently by
Antofagasta, but ANTO only nibbled at one specific corner of the large concession and basically
ignored the gold targets already understood to exist. For just one other, the book of copper
concession projects held by LRA is still strong, with interesting projects in both Peru and Brazil.
Any one of that handful could be a big win (and you know I like copper’s chances).
NovaCopper (NCQ.to): Yes it was up, but on gossamer-thin volume and the move can be
ignored. I strongly suspect we’re going to bounce around these levels until the copper price
picks up and carries the sector forward, so buy close to $1.00 than $1.20 if you want some
(more) of this deep bargain stock.
Rio Alto Mining (RIO.to) (RIOM): As expected, the special meeting on Wednesday 30th
went swimmingly (9) so once the legal odds and ends are tied up this Tuesday coming, RIO will
be able to begin extolling the virtues it can now offer the world as a bigger company. I do not
expect this company to hide its talents for very long. Trading-wise it just bobbed along with
GDXJ, basically. Let the re-rating process begin.
True Gold (TGM.v): I’m expecting a bit of selling pressure in the first couple of days’ trading
this week, but nothing has changed at the company and this is still very much one to hold for
the longer term. If 40c shows up on a downspike, consider it a decent fliptrade entry point
because TGM will bounce back soon enough.
Coro Mining (COP.to): COP dumped hard on the news that its break-up with Benton
Resources (soon to go into the medical marijuana trade, bless their hearts) was done, the
selling coming on volume. It recovered from lows and sits this evening at a very cheap looking
6c, which isn’t a price I’d sell no way José. The story here is 1) cheap 2) copper 3) assets in 4)
Chile, which is a nice combo even without the smart people running this company.
The Copper Basket
After thirty-one weeks of 2014 The Copper Basket is showing a 12.38% gain to level stakes.
12

company ticker price 1/1/14 Shares out Market Cap current pps gain/loss%
1 Augusta Res AZC.to 1.51 144.41 581.97 4.03 166.9%
2 Lumina Copper LCC.v 6.29 44.07 457.01 10.37 64.9%
3 NGEx Resources NGQ.to 1.43 186.475 406.52 2.18 52.4%
4 Reservoir Min. RMC.v 4.97 47.55 285.30 6.00 20.7%
5 Nevada Copper NCU.to 1.35 80.5 181.93 2.26 67.4%
6 Copper Fox CUU.v 0.375 402.96 94.70 0.235 -37.3%
7 Panoro Minerals PML.v 0.35 220.25 92.51 0.42 20.0%
8 Western Copper WRN.to 0.76 93.68 77.75 0.83 9.2%
9 Nevada Copper NCQ.to 1.60 60.15 66.77 1.11 -30.6%
10 Hot Chili Ltd HCH.ax 0.425 333.11 66.62 0.20 -52.9%
11 Curis Resources CUV.to 0.57 74.79 65.07 0.87 52.6%
12 Cordoba Min. CDB.v 0.90 58.81 37.05 0.63 -30.0%
13 AQM Copper AQM.v 0.11 139.24 13.92 0.10 -9.1%
14 Coro Mining* COP.to 0.10 159.37 9.56 0.06 -40.0%
15 Oracle Mining OMN.to 0.27 49.03 4.17 0.085 -68.5%
NB: HCH.ax priced in AUD$, rest CAD$ //CDB 2x1 split May'14 Portfolio avg 12.38%
The basket average is down 1.11% from this time last week, so yes it’s negative and no we’re
not sweating this one. As for the count,
four were up on the week (NGQ.to, AZC.to,
The Copper basket 2014, weekly evolution
NCQ.to, CUV.to), a full five remained 25%
unchanged (RMC.v, CUU.v, HCH.ax, PML.v,
20%
AQM.v) and six were down (LCC.v, NCU.to,
WRN.to, COP.to, CDB.v, OMN.to) and of all 15%
that lot, just two saw a double figure
10%
percentage move, namely the losses in
Coro Mining (COP.to down 14.3%) and 5%
Cordoba Mining (CDB.v down 10.0%).
0%
With copper the metal passing through a
relatively stable week in the low $3.20s/lb
range, off a little without any big moves,
we’re starting to slip back into the same type of
standard range we saw in 2013 and early 2014,
before that slip and gradual recovery move. This is
certainly a good thing for the bullish argument, as
building a baseline here makes a lot more sense
for longer-term valuations than some sudden
spring 30c or 50c higher. Those prices can wait
their turn; in fact I’m betting money on them but
patience is the virtue on those trades.
To our world copper inventories coverage, the
bullet points this week tell us that last week’s big
rise didn’t see a follow-through.
• For a second week, world stocks dropped
back a little with stocks down 4,976 metric
tonnes (mt) (-1.8%), to 276,286mt.
Another week to repair mid-July’s bearish
wobble and the bull case is getting back
on track.
• The Shanghai Futures Exchange copper warehouse inventories rose during the week,
up 6,248mt (+6.1%) at 108,393mt. That’s nominally bearish but in fact is less than
13
ht5naj ht21 ht91 ht62 dn2bef ht9 ht61 dr32 dn2ram ht9 ht61 dr32 ht03 ht6rpa ht31 ht02 ht72 ht4yam ht11 ht81 ht52 ts1nuj ht8 ht51 dn22 ht92 ht6luj ht31 ht02 ht72 dr3gua
source: IKN calcs

expected, with plenty of market watchers having expected more stocks to land at the
exchange’s bonded warehouses last week. Perhaps we’ll see the lag unwind this week.
• The LME copper warehouse inventories made a bigger downmove, losing a chunky
11,500mt from stocks (-7.3%) to sit at 146,200mt this weekend.
• The Comex warehouse stocks rose very slightly, up just 276mt to 21,693mt, no biggie.
We’re at the end of another month, so here are the tracking charts updated and ready.
Copper inventories, per month 2012-2014
1000000
900000
800000
700000
600000
500000
400000
300000
200000
100000
0
The one that catches my eye is the relative percentages held in each system, because the sharp
drop in LME stocks has meant Shanghai bouncing back to ~40% of world exchange stocks. The
pendulum has swung back again, the question is whether Shanghai can break past the 40%
barrier this time and move closer to taking the mantle away from big dog LME.
Now for updates on a couple of our basket stocks
NGEx Resources (NGQ.to): See ‘Regional Politics’ below for a few extra details, but NGQ.to
became more attractive in my eyes last week when its near neighbour Caserones was officially
opened (after more than a few permitting glitches this year) by Chilean and Japanese
dignitaries (including Japan’s PM Abe no less, plus Chile’s mining minister and all the assorted
bigwigs from Pan Pacific and Mistui). As Pan Pacific is NGQ.to’s JV partner in two of its big
copper deposits up there (Los Helados on the Chilean side of the border, Filo del Sol on the
Argentina side) and is now set to be producing copper in the high Andes for the next 40 years
or so right next to NGQ’s project, the political stability of this company has just seen a decent
upwards re-rating.
At over CAD$400m market cap for a 40% to 60% share in projects depending on the deal and
with those projects large in volume but relatively low in grade (typical 0.38% Cu or 0.52%
CuEq), NGQ isn’t trading at a bargain price in these markets. But as price is the only thing that
really puts me off from owning it and the eventual buyer is clear enough, it’s one I’m watching
more carefully now. After miscalculating (that cute way of saying “dumbo”) on the chances of
Lumina’s (LCC.v) Taca Taca going to a buyer (though timing was always going to be tricky and
I did at least shout avoid from the rooftops when it was at its high price) and watching how
China’s sniffing around Argentina now, looking for its bargains and offering investment cash,
this is one of the more obvious ways of play Argentina as it brings along a large safety net due
to its Chile assets. NGQ
The latest NGQ presentation is a decent overview (10) with the usual rose-tint of the corporate,
but I wholly agree with the company when it points to its 20Bn+ lbs Cu in situ and under 43-
101 and the likelihood of plenty more to come, then says that very large discoveries of this type
are rare indeed. No argument there, it’s a strong point to make. Which is why I own RMC.v
today.
Augusta Resource (AZC.to) (AZC): The deal with HudBay is now closed. We can expect
14
21.naJ bef ram rpa yam nuj luj gua pes tco von ced 31.naJ bef ram rpa yam nuj luj gua pes tco von ced 41.naj bef ram rpa yam nuj luj
Mt Cu Copper inventories: percentage held per exchange
80
LME Shanghai Comex
70
60
50
40
30
20
10
0
source: Cochilco
21.naJ bef ram rpa yam nuj luj gua pes tco von ced 31.naJ bef ram rpa yam nuj luj gua pes tco von ced 41.naj bef ram rpa yam nuj luj
LME Shanghai Comex
source: Cochilco

some small movements from the stock as minor remnants trade out, but from now on this stock
is nothing but a like-for-like with the bigger producer.
By the way, on the subject I don’t like HBM for my copper exposure. Yes I’m bullish the metal
and as such, should at least be interested in such a leveraged play as HudBay, but there are
two things that put me off.
1) The debt. I don’t like the way HBM keeps adding to its debt load and putting the equity
holders further back in the eventual benefits queue. We saw another U$170m raised by
the company last week in convertibles, which is good business for the creditors (as long
as copper does the right thing) but leaves less for us the smallfry
2) The debt. Yes, same thing but just to emphasize the other part of the equation is the
potential for losses if my bull call on copper is the wrong one. In such a case I’d expect
to take my losses, and surely would in stocks such as RMC.v (now my largest copper
holding aside from the Cu element in RIO.to)
Cordoba Minerals (CDB.v): What I don’t see here is a company being crushed by negative
vibes form its current drilling program (that
kicked off two weeks ago). What I see here
is yet another exploreco being crushed by
having the word “Colombia” next to its
name. I’ve heard from more than one
reliable source that the deposit is great and
the rocks could give up a lot more
mineralization that’s been found so far, all
it’s going to need is a decent expansion
drilling program and smart geols to work it
all out. But until things settle (and the
accelerating volume doesn’t help one little bit
either) and the stock finds its new level, it’s
not really touchable.
That and the simple fact that I don’t want Colombia exposure in the portfolio.
The Low Cost Producer Basket
After 31 weeks, the Low Cost Producer Basket is showing a 21.33% gain to level stakes
company ticker price 1/1/14 Shares out Mkt Cap (Bn) current pps gain/loss%
1 Freeport FCX 37.74 1040 38.25 36.78 -2.5%
2 Goldcorp GG 21.67 812 22.51 27.72 27.9%
3 Barrick ABX 17.63 1000 18.21 18.21 3.3%
4 Newmont NEM 23.03 497.87 12.55 25.20 9.4%
5 Silver Wheaton SLW 20.19 357.39 9.32 26.08 29.2%
6 Franco Nevada FNV 40.74 147.01 8.33 56.66 39.1%
7 Agnico Eagle AEM 26.38 173.43 6.52 37.62 42.6%
8 Pan American PAAS 11.70 151.41 2.22 14.63 25.0%
9 B2Gold BTG 2.02 651.4 1.72 2.64 30.7%
10 First Majestic AG 9.80 117.02 1.25 10.64 8.6%
all prices in U$, using NYSE ticker prices Portfolio avg 21.33%
The basket average was down 3.87% on the week, with a lot of that covered by the big drop in
15

Agnico Eagle (AEM down 10.0%) along with the medium-sized drop in B2Gold (BTG down
5.4%). There were another six losers as well as those two (FCX, ABX, GG, SLW, FNV PAAS), but
to their credit two of our ten managed to squeak weekly gains (NEM, AG) which was pretty
good under the negative gold price circumstances.
The Low Cost Producer Basket: Weekly performance and
comparative to GDX control
35%
30%
25%
20%
15%
10%
5%
0%
16
ts13ceD ht21 ht62 ht9 dr32 ht9 dr32 ht6rpa ht02 ht4yam ht81 ts1nuj ht51 ht92 ht31 ht72
basket
gdx control
source: Yahoo! Finance, IKN calcs
Low Cost Basket: Percentage difference between
basket and GDX control, 2014
8%
7%
6%
5%
4%
3%
2%
1%
0%
ts13ceD ht5naj ht21 ht91 ht62 dn2bef ht9 ht61 dr32 dn2ram ht9 ht61 dr32 ht03 ht6rpa ht31 ht02 ht72 ht4yam ht11 ht81 ht52 ts1nuj ht8 ht51 dn22 ht92 ht6luj ht31 ht02 ht72 dr3gua
source: ikn calcs, NYSE/Nasdaq data
First Majestic (FR.to) (AG): This company got a mention as a possible purchase a couple of
weeks ago and since then I’ve been playing with the model more carefully. Cutting a long story
short, so far I like what I see and as such, it didn’t surprise me to see (while doing the Friday
tot-up of numbers) that FR.to had managed to buck the trend and put in a weekly win.
I haven’t made up my mind yet and as there are a lot of moving parts to this company as well
as there being little or no rush to position into silver as far as I can see, it’s not a call that’s
going to get a snap decision either. But it’s on the shopping list as a potential trade for my
money, be in no doubt.
Regional politics
Comparing Peru and Bolivia on mining and macro
Last week, the preview to the Ollanta Humala quasi-State of Union address went into a little
more detail about the weakened macroeconomic backdrop of the country. In the end (and
quickly noted in last Thursday’s Flash update, Appendix 1) the speech was heavier on public
sector reactivation plans (education and health getting planned investment and spending
injections) and very light on private sector incentives, with the President preferring to insist that
everything’s much better than people try to make out. That’s his call of course, but it’s one from
a weak President who’s now entering an obvious dead duck period for his administration.
Between then and now we received macro news from Bolivia and I think it’s interesting from
our perspective as junior mining investors to sit the two countries’ mining industries and their
macro situations side-by-side economically, because it allows us to strip away the contentious

issue of regional left/right politics and get insight as to why Peru is a better place for your
exploration dollar today.
First step is to show how the drop in metals prices is affecting matters in a couple of countries,
as the stats bodies of both Bolivia and Peru reported this week (11) (12) on export figures for
the first six months of 2014
• In Bolivia, the value of metals exports has dropped 53% YoY in the first six months of
2014.
• In Peru, the value of metals exports has dropped 23% YoY in the first six months of
2014.
The better (or less worse) drop for Peru is largely due to it having increased the volume of its
metals exports by 9%, with the lion’s share of that from the new Antapaccay mine start-up and
the slow but sure start of Toromocho (recall, that one has a lot of ramping to do before it
reaches full capacity). However, the situation
in Peru is far more worrying for its
government than that of Evo Morales in
Bolivia (who is a shoo-in for re-election in
October, by the way). The problem faced by
Peru was outlined in last week’s note that
mining accounts for between 50% and 65% of
total exports, while Bolivia’s export mix is
dominated by natural gas exports to its
neighbours Brazil and Argentina. And if we
compare the trade balance chart first seen in
last week’s piece for Peru (right here, see last
week for the full-sized model) and focus in on the 2013 and 2014 portions on the right, you see
Peru running a trade deficit.
Now for Bolivia, and here’s the last year’s worth of its monthly trade balance figures (exports
minus imports), data from Bolivia’s INE (13):
Bolivia: Monthly Trade Balance
450
400
350
300
250
200
150
100
50
0
-50
17
31.nuj luj gua pes tco von ced 41.naj bef ram rpa yam nuj
Peru: Monthly Trade balance
1500
1000
500
0
-500
-1000
U$m
source: INE Bolivia
Apart from December, a time when gas exports slow for the Southern hemisphere summer and
imports of festive goods for Christmas tip the balance, Bolivia’s been enjoying a positive trade
balance of between U$200m and U$400 per month, which to cut a very long story short means
Evo Morales gets a lot of cash to fund his favourite social programs. In other news, the latest
GDP growth figures for Peru are down under 2% as seen last week, while Bolivia is batting at a
very handy 5.24% (though it was aiming for 5.7% in its original forecasts) so far.
I’ve stuck to the gauges mentioned for the Peru piece last week, but there are others which will
50enE 50luJ 60enE 60luJ 70enE 70luJ 80enE 80luJ 90enE 90luJ 01enE 01luJ 11enE 11luJ 21enE 21luJ 31enE 31luJ 41enE
U$m
source: Peru CenBank

register the relative health of the Bolivian economy compared to that of its larger neighbour,
which is the ultimate aim of semi-OT macro talk in a junior mining publication. The point
forming is that Bolivia doesn’t need to attract and keep attracting foreign direct investment into
its mining industry and that shows (my stars does it show?) in its policy towards the sector.
• It’s no secret that Peru wants to attract FDI into its mining sector
• It’s no secret that Bolivia has been particularly anti-FDI in mining since Evo Morales got
in.
For sure part of the reasons behind those two statements is political ideology, but I have, do
and will contend until blue in the face that it’s the economy, stupid. Or money talks BS walks,
or whatever is your preferred phrasing for the same concept. Bolivia has no need for FDI in
mining, so that fits in well with President Morales’ anti-Imperialist (his words not mine, just
adding a convenient label) leanings. But hey, Daniel Ortega of Nicaragua is every inch the
revolutionary as well, but he’s found a very useful and country-moving source of growth from
gold mining and exploration which has brought his practical side (let’s say) to the fore on the
question of mining, the opposite of Evo and Bolivia.
I digress. When push comes to shove our modern democratic period has demonstrated, time
and again, that political ideology can and will be put to one side when things get tight
economically. Bolivia is an avoid, Peru wants our FDI money and the latest round of political
economics have shown its national government willing to provide benefits to mining companies
wanting in. Come to think of it, it’s a long time since I’ve heard the phrase ‘resource
nationalism’ used around these parts. Luxuries are discarded when needs are to the fore.
Peru’s quiet season for protests: Enjoy it while it lasts
The Doldrums (enhanced by there being five Fridays, Saturdays and Sundays in this year’s
version of August) isn’t confined to summer in the North, down this way August is also a time
of relative quiet and calm in the political world. The reasons are both historical (August is the
fallow period for agriculture, post-harvest and pre-sow, which is used for town/village fiesta
periods, marriages and general merrymaking) and practical (the northern summer vacation
period means high season here and the main source of serious dollar income for the tourism
industry), but the upshot is that people who want to protest, demonstrate and make known
their complaints will wisely wait until this month is done before doing their thing.
Case in point 1: Cajamarca governor and anti-mining bugbear numero uno Gregorio Santos
who’s locked up in a Lima jail on remand, due to the corruption charges brought against him.
On August 8th there will be a probably small and symbolic protest gathering in the centre of
Lima to protest his detention as a “political prisoner” (his supporters neatly ignore the strong
evidence against him on those very charges), but said supporters are waiting until August 30th
to move into gear (14) with the first big protests in the Cajamarca region, with two big shows
of support set for the cities of Cajamarca and Jaen on that day. They’re bound to be followed
by others in the run-up to the October 5th election day as well, with each one having the
potential to be politically hot and with chances of violence (protesters, police or both).
Case in point 2: According to sources, his week and perhaps as soon as tomorrow Monday the
government of Peru via its Ministry of Energy and Mining (MEM) is expected to award the
environmental permits to the contentious Tia Maria copper project owned by Southern Copper
(SCCO) and located in the coastal region of Arequipa province (it’s about 150km as the crow
flies from this desk). To call this one a controversial project is to call Argentina an oasis of
political and economic tranquility, as this audience is likely to remember the protests and
deaths in clashes with police that caused the halt in development and the annulment of the
original EIA a few years ago. Locals against the project have already vowed to fight its
development tooth and nail and with those very same regional and local elections coming up
and SCCO stating that project construction will start this year, we have another potential socio-
economic flashpoint in Peru on our hands.
18

Case in point 3: Last week Peru’s Vice-Minister of Mines, Guillermo Shinno, announced (15) that
the population of the small town of Fuerabamba will be re-located at the end of August in order
to clear the way for the development of the massive Las Bambas copper project, recently
bought by MMG (Chinese capitals) from Glencore/Xstrata. There will be plenty of eyes focused
on whether the moving of this small township goes smoothly as least some local objections to
being forcibly relocated continue to this day.
All that and more. The longer the calm prevails the better, but don’t bet on September being a
calm period for Peruvian mining newsflow. But the potential flashpoints are there and it’s not
just Conga and Cajamarca, either.
Codelco gets a new CEO and a U$4Bn cash injection from the government of Chile
Plenty of fanfare in the Chilean pro-government news channels regarding its State-owned
copper mining company Codelco, as it has a new CEO in Nelson Pizarro and has been granted
U$4Bn in capital for its expansion projects. First the appointment, here’s Bloomie in English with
its take (16) and here’s how that note begins:
Codelco, the world’s largest copper producer, appointed a former manager of its
Chuquicamata mine with more than 50 years experience in the industry, to lead a $25
billion revamp of the state-owned company.
Nelson Pizarro, who most recently developed the $4.2 billion Caserones copper mine
in the Atacama Desert for Japan’s Pan Pacific Copper Co., was appointed chief
executive officer with a unanimous board vote. Pizarro inaugurated Caserones
yesterday with Japan’s Prime Minister Shinzo Abe.
Codelco sought a candidate with mine management expertise to oversee development
of two of the world’s largest underground mine projects as the company digs deeper to
profitable ore. Pizarro, a mining engineer who also once worked for Antofagasta Plc,
ran Codelco’s Andina and Chuquicamata mines, both more than a century old,
between 1990 and 1997.
Pizarro will carry out the biggest investment plan in Codelco’s history, Chairman Oscar
Landerretche said in a statement.
Bloomberg’s Matthew Craze is one of the better names working the newswires in South America
and does a decent job as usual (go see the whole thing). The appointment of Pizarro comes
just days after the official opening of Caserones, an event important enough to get Japan’s
Prime Minister Shinzo Abe to attend and do the ribbon cutting (let’s also remember that Pan
Pacific Copper, Mitsui et al, is in JV with NGEx Resources (NGQ.to) just a few kilometres further
up the road from Caserones, on the Chilean and Argentine sides of the border).
Codelco: Copper production per annum
(incl all JV operations pro-rata)
2 1.84 1.832 1.782 1.76 1.796 1.758 1.792
1.8 1.676
1.583 1.547
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
source: Codelco
19
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sennot
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snoilliM
Meanwhile, confirmation came of the investment package for Codelco a day after the Pizarro
appointment, which was greeted with cheering and speculation of just how much production
expansion we’ll see, but frankly I’m not so sure. The last decade in Codelco has been marked
by its tendency of running to stand still as far as production is concerned, with mine depletion
and drops in average head grade countering its investment and new mine openings to keep

production relatively level in the period. Among the commentary and analysis, one of the best
found was a report and interview done by CNN (17) and featuring Chile’s ex-Minister of Mining,
Hernán de Solminihac, who said that for one thing the big headline number meant around
U$800m per annum spread over four years, for another Codelco was sorely in need of capital
projects in its producing mines just to keep up speed and also, it’s one thing for a government
to pledge large amounts of cash, another for it to write the necessary cheques come the day.
All that’s true, even if it came from a mining expert who’s in the political opposition to Bachelet
and her government, so all the resulting thoughts about Codelco adding excess supply to the
world copper market due to this capital injection are way too premature to be taken seriously,
let alone start affecting spot and future prices for the metal.
Market Watching
The Los Cardones project gets environmental approval in BCS Mexico; we consider
the potential knock-on effects for Argonaut (AR.to) and Vista (VGZ)
Here’s one of those stories that could easily fit into the ‘Regional Politics’ section, but as it
points to a couple of potential trades it’s going here instead.
On Friday afternoon and Publisher without fanfare, Mexico’s national environmental body
Semarnat published its permitting approval (with some limitations) for Los Cardones gold mine
project in Baja California Sur (BCS), Mexico. Points to consider:
• Owned and developed for 12 years by Vista Gold (VGZ) (originally called Paredones
Amarillas, for those who remember that far back), VGZ recently agreed to sell its
remaining participation to Mexico’s Invecture Group for $13m. An extension on the final
payment was agreed upon just five days ago (18) as parties waited for the enviro
decision (though notably, these days VGZ refers to the project as “non-core”, when just
a few short years ago it was “flagship development”.
• Your author is impressed as to how VGZ can try and fail for many years to move the
ball forward, then suddenly the project changes hands to a producing Mexican mining
company (Invecture has a smallish copper cathode operation in Sonora) and lights turn
to green. By way of a little backstory, the financial capital behind Invecture comes from
Ricardo Salinas Pliego (19), Mexico’s 4th richest person and most famous for being the
owner of the influential TV channel ‘Azteca’ (I think ‘influential’ is the most diplomatic
word to use at this point). I do not believe in coincidences, though whether the
stepping back of VGZ or the stepping forward of Invecture was the catalyst to this
sudden parting of the waves and approval is up for debate.
• The positive permitting decision has already met with protests in BCS, with both local
government officials and anti-mine groups vowing to stop development.
• Right next door to this project is Argonaut’s (AR.to) troubled and environmentally
stalled San Antonio project. The last we heard from AR.to on this was that on April 10th
it failed in its appeal to get a previous EIA denial overturned (20), but it is still moving
on a “dual path” for permitting that involves community relations and legal work. We
didn’t see any sort of reaction from AR.to stock on Friday (five day chart below
compares AR.to and VGZ) so it’s possible the company gets a boost on the reflective
glory of its neighbour’s permitting success tomorrow Monday.
Overall, a positive weekend for mining projects in BCS but one permit approval won’t strip away
the controversy from this and other strongly opposed projects in the region, so it’s by no means
a done deal the mine happens yet. As for AR.to and San Antonio next door, as seen on these
pages enough times I’m not a fan of the company (imho even after its hefty drop from $10+
20

it’s still too highly valued for what it is, what it does and what it owns) but next week may offer
a trading opportunity on this news, particularly if its brokerage fan club pick up the ball and run
with it.
As for a trade on VGZ, as these days it’s down to a ~U$39m market cap company, the news
may also give the company a pop because it does virtually guarantee the final $6m payment to
close the Invecture deal. As there was some doubt about that final payment, VGZ could enjoy a
pop on this news. With $5.7m in cash as at June 30th, treasury would be more than doubled
and the closure would improve the overall balance sheet by a little under U$4.5m. Equity per
share was ~50c and would move to ~55c with the arrival of the final cheque, which at least
implies a 10% upmove in the share price here. Again, one for the traders seeking a near-term
edge, more than the longer-term future of VGZ (which is tied to the Midas Gold (MAX.to) in
Idaho project equity-wise, a stock I’ve been happy to avoid so far even though it has plenty of
fans for its rocks).
As for Los Cardones, it’s not a done deal yet by any way shape or form. We’ve seen previous
mining projects that get a pass from Semarnat only then to be stopped at a municipal level and
as the BCS local government has been vociferously anti-mining for years, there are plenty of
ways in which they can block progress. Whether or not they’ll be able to go up against the
public opinion shaper that is TV Azteca is
another question. As a mere taster of that
angle, this report (21) dated July 2nd 2014 in a
BCS regional newspaper begins “After the
stance taken for the local government in La
Paz (the city in BCS Mexico, not the city in
Bolivia) against the Los Cardones mine, the TV
Azteca television company has begun a
campaign against its local authorities,
according to mayor Esthela Ponce”, and then
carries on the much the vein you’d expect. If
only for the still uncertain future of Los
Cardones, EIA permit or not, I’d rate any trade
potential on this story (VGZ, AR.to) for you
people out there as strictly near-term.
Argentex Mining Corp (ATX.v) redux
As I watched the multi-billion dollar Argentine sovereign debt default story unfold last week,
along with Minera IRL’s decision to pull out of the country (Santa Cruz province too), my
thoughts often turned to the pennycrapper trade idea floated here last week so I kept an eye
on its daily trading. Or non-trading in fact, as things were very quiet and that suits me just fine
for the time being.
21

Gold Resource Corp (GORO): On watch for the latest short trade opportunity
The combination is simple enough:
1) GORO has its 2q14 earnings due this week
2) It’s share price is up handily over $5 again
3) The way in which Hochschild (HOC.L) has been keen to liquidate what remains of its
holdings before Q2 is filed isn’t a good sign for bulls.
4) From considering the slack I cut the stock on its 1q14 results in a cold light, I think
GORO loaded its 1q14 to make it look better than the sustainable rates for the
company. A disappointing profits number wouldn’t come as any sort of a surprise, but
I’m not going to try and second-guess these figures and will wait until publication
before making a call on whether to short GORO for a trade one more time.
If I decide to short GORO again, expect a Flash update. Meanwhile, here are the ten day and
year to date charts for your consideration:
Conclusion
IKN273 is done, we end with bullet points:
• Buy Rio Alto, own it, be ready for its re-rating.
22

• Yes indeed, with lesson learned I refuse to enter the fray and call gold this week.
Well..ok...just a word here...as the recent range has bottomed out at $1,280/oz yet
again so if that number holds we’ll just continue our waltz around $1.3k, $20 either
side, until Labor Day at least.
• Timmins Gold (TGD) gave us financials to match its decent Q2 of production and we
can expect more cash to flow through the P+L to the bottom line in the second half of
2014. It’s re-setting itself well.
• The Minera IRL (IRL.to) (MIRL.L) news, well let’s see what deal it strikes on Ollachea
before judging the minor events. Holding.
• GoldQuest (GQC.v) at sub-23c still looks cheap on a risk/reward basis this weekend, as
long as you’re clear and can handle the high risk of playing drillplay stocks. An example
of that risk was shown live and in the flesh last week, when it sold on news that’s a
little peripheral to the main story.
The top long-term pick is Rio Alto Mining (RIO.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
Footnotes, appendices, references, disclaimer
(1) http://finance.yahoo.com/news/minera-irl-announces-sale-don-060000098.html
(2) http://finance.yahoo.com/news/timmins-gold-reports-earnings-operations-100000734.html
(3) http://www.incakolanews.blogspot.com/2014/07/timmins-gold-tgd-tmmto-2q14-earnings.html
(4) http://finance.yahoo.com/news/goldquest-releases-drill-results-exploration-100000612.html
(5) http://www.goldquestcorp.com/images/maps/GQC_IPMap-Targets-July312014a.pdf
(6) http://finance.yahoo.com/news/reservoir-minerals-granted-exploration-licenses-201000527.html
(7) http://finance.yahoo.com/news/focus-drills-phosphate-over-6-123000074.html
(8) http://finance.yahoo.com/news/definitive-agreement-signed-sale-corina-145656874.html
(9) http://finance.yahoo.com/news/rio-alto-sulliden-announce-shareholder-222227808.html
(10) http://www.ngexresources.com/i/pdf/presentation201406.pdf
(11) http://www.eleconomistaamerica.pe/economia-eAm-peru/noticias/5986419/08/14/Exportaciones-peruanas-caen-
11-durante-el-primer-semestre-.html#Kku8LwrGebOB1bRd
(12) http://www.lostiempos.com/diario/actualidad/economia/20140802/en-pocas-lineas_268740_589499.html
(13) http://www.ine.gob.bo/
(14) http://caballeroredverde.blogspot.com/2014/07/gran-marcha-de-la-victoria-y-la.html
(15) http://www.aminera.com/index.php/mineria-internacional/item/5826-las-bambas-comunidad-de-fuerabamba-
ser%C3%A1-trasladada-a-finales-de-agosto.html
23

(16) http://www.bloomberg.com/news/2014-08-01/codelco-appoints-nelson-pizarro-ceo-to-revamp-chile-copper-
mines.html
(17) http://cnnchile.com/noticia/2014/08/01/hernan-de-solminihac-sobre-capitalizacion-de-codelco-el-compromiso-es-
interesante
(18) http://es.wikipedia.org/wiki/Ricardo_Salinas_Pliego
(19) http://finance.yahoo.com/news/vista-gold-corp-grants-six-113000654.html
(20) http://finance.yahoo.com/news/argonaut-gold-announces-q2-production-113123927.html
(21) http://www.bcsnoticias.mx/tv-azteca-emprendio-campana-sucia-contra-ayuntamiento-de-la-paz-por-rechazar-
mineria/
Appendix 1: Flash updates dated Thursday July 31st
Good Thursday morning, just after 8am, less than half an hour before the open, a windy winter morning with a cold
current coming down from the high Andes.
A busy time at desk and lots to get through, which is a good thing. As well as 'the majors' reporting we have significant
newsflow from stocks covered and monitored by the Weekly.
Minera IRL (IRL.to) (MIRL.L): hold
I've taken a lot of mails from people on the news yesterday...
http://finance.yahoo.com/news/minera-irl-announces-sale-don-060000098.html
...that IRL is selling its share of Don Nicolas to its JV partner for $11.5m. Thank you for all the mails and your opinions,
which varied from positive to negative (more of the latter than the former) and often came with "like they're out of
Argentina" and "don't like the price". To illustrate my position after working numbers, rather than make up a new
parapgraph here's an extract of a mail sent to company heads:
For what it's worth, my personal position: You've disposed of an asset at the wrong time that's likely to be more valuable
down the line. But I also understand the wait for any bottom line operating profits from DN was going to be years rather
than quarters, the "Argentina factor" made it easier to dispose, and that IRL really wants to concentrate (and hold onto)
as much of the Ollachea jewel as possible. Also, if you wanted to sell there was only one real buyer at this point, which
depresses the sale price. Finally, On a share price valuation basis it was always debatable as to how much DN was
adding to the PPS, so i don't think it'll be a big downside factor (though it may take away some upside potential).
Overall I'm not great about it, but i do understand it and I can live with this move. On the one hand it gets IRL out of a
tricky jurisdiction (no end of times i've had "ah, they're in Argentina right?" as comeback on owning IRL, with people
taking the idea no further; the optics may not be wholly fair but they're typical) and raises some needed cash, on the
other it's a low selling price with no sort of NSR (something that yes i would have liked to see) and will take a bite out of
the balance sheet. Trading on the news yesterday was fairly light (note that just one sale of 50k shares brought IRL.to in
Toronto down 2c to 19c...hardly wholesale panic) and that also makes sense.
I'm still working on getting information from the company, so expect more Sunday including a numbercrunch and
updated targets. The bottom line today is that IRL is a hold, the fundamental valuation of the company still largely
depends on Ollachea and securing the fianncing deal for that project. I'd liked to have seen more from Don Nicolas, no
denying that, but it's not and never has been the central reason why IRL is a bargain.
GoldQuest (GQC.v): Hold (or spec buy on weakness)
This morning sees the first set of drill results from GQC...
http://finance.yahoo.com/news/goldquest-releases-drill-results-exploration-100000612.html
...and they're inconclusive. These holes were ones that tried to connect the two known deposits of Romero and Romero
South and to cut a long story short came up dusters, but they're not the reason we're interested in this drill program. The
interest comes from the poten tial GQC can find new areas of mineralization in the wider concession and evidence (or
not) of that will start to come from the next set of results. Today's NR is a net neutral, so no reason to sell the news and
if there's a big sell-off you may want to consider a bargain entry point. See the drill map...
http://www.goldquestcorp.com/images/maps/GQC_IPMap-Targets-July312014a.pdf
...for more, and note holes 162/163/164 (currently in lab or drilling) have more potential for oiur cause.
Rio Alto (RIO.to) (RIOM)
The special meeting went through as expected and the merger with Sulliden is done and dusted, bar the court order
niceties. RIO's been necessarily quiet while this merger has been taking place, so now things are all but closed we can
expect more from the company.
Other numbers
I've kept an eye on the majors and other small producers coming through and for what it's worth some very quick
thoughts on a bunch (take with pinch of salt)
Kinross (K.to) (KGC) financials looked pretty good
Barrick's announcement of yet another large write down begs the question as to whether they'll ever stop the process
Detour Gold (DGC.to) was plain negative (I fail to see the attraction, large size or not and de facto pre-strip in Q2 or not,
at projected mine/waste ratios and grade) and there's a lot of lipstick being applied to that pig
Lake Shore Gold (LSG.to) again made me regret not owning it, as its earnings fulfilled its strong production quarter.
Stillwater (SWC) has been pumped as a star of the PGM sector, but for me now looks expensive compared to its
earnings potential and Q2 numbers
Argentina default
Finally, the macro news that Argentina is now officially in default came through yesterday. The events are going very
much according to expectations and once the screaming headlines have worked through, real world effects will be
minor. I'm quite sure you have better things to worry about than this story. Politically it's interesting and may become a
central issue in the 2015 election (therefore I'm following it closely) but that's a long way off as yet.
Peru economic measures
24

Mentioned in IKN272 as a possible market moving event, the eventual President Humala speech on Monday was a bit
of a damp squib for the mining industry in Peru. Nothing bad, but no concrete measures or changes to the current
outlook.Peru's still a fine place to go mining as long as you pick your zone correctly, but nothing new to report.
I hope that's everything. Enjoy your Thursday.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
A second Flash update in quick succession.
Adding to GoldQuest (GQC.v) at 23c or below
After sending today's first update I went for breakfast. On returning I kicked myself somewhat, as I missed an open in
which GQC.v traded as low as 22c. That's my idea of value, as explained in Flash update 1 this morning (bottom line,
the interesting drill hole #s are still to come).
I'll add to my GQC if given the opportunity at 23c again.
Please be clear this is a speculative drill play, it's not for everyone and it's not for betting the farm, either.
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
25

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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