IKN #299Premium

The IKN Weekly
Week 299, February 1st 2015
Contents
This Week: CAD1=USD0.8, One two three four five, Riffing from the B2Gold events last week.
Fundamental Analysis: The trade potential in Aberdeen International (AAB.to).
Stocks to Follow: Overview, McEwen Mining (MUX) (MUX.to), Starcore Intl (SAM.to), First
Majestic (AG) (FR.to), Fortuna Silver (FVI.to) (FSM), Focus Ventures (FCV.v), Rio Alto Mining
(RIOM) (RIO.to), Dalradian Resources (DNA.to), B2Gold (BTO.to) (BTG), Minera IRL (IRL.to)
(MIRL.L).
Copper Basket: Overview, Reservoir Minerals (RMC.v), Nevada Copper (NCU.to), Regulus
Resources (REG.v), Capstone Mining (CS.to).
Low Cost Producer Basket: Overview, Buenaventura (BVN), Newmont (NEM).
Regional Politics and Market Watching: Chile: Codelco cuts costs, Argentina: CFK visits
China, Ecuador: A petition, Ecuador gets a Mining Ministry, Peru: New environmental permitting
rules in the pipeline, Peru: Cañariaco plans a re-start, True Gold (TGM.v) redux, Pershimco
(PRO.v): Cheap and worth a second look.
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
CAD1=USD0.8
In fact it sneaked in last week as part of the MUX analysis and I forgot to make formal mention,
but what with the news Friday (1) on the soft Canadian GDP number that sank the Loonie
further, (it’s now under 79 US Cents to the Canadian Dollar), we need to adjust our forex here
at The IKN Weekly and announce as so, therefore until further notice, this publication will use
U$0.80 = CAD$1.00 for any and all forex calculations.
One, two, three, four, five...
...once I caught a fish alive.
Sad-sack number-nerds (your author most
definitely included) will enjoy the trivia;
the gold bullion ETF (GLD) closed at
U$123.45 on Friday. But gold bulls in
general (count me in again) will
appreciate the strong way in which the
metal rebounded from the post FOMC
(and options expiry date, I’m told) hit. We
saw a moment’s weakness in the US
Dollar on Tuesday but that soon
rebounded (the need-to-know: USD index
from 95 to 94 then back again) so that
wasn’t the cause and indeed, gold’s been
close to unique among the world’s main trading media in its ability to ignore greenback moves.
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No, Thursday’s downspike in gold has all the hallmarks of a speculative attack against its price
(and yes, include silver in the mix, but the main action was and will always be in the more
expensive of the two). This publication isn’t a fan of the non-stop conspiracy theories that are
weaved around gold (etc) and most of the time they are at best figments of fertile imaginations
(and at worst permabull excuses from those with need to whine about how it’s not their fault
gold isn’t at their U$5,000/oz target yet but The Rapture will sort it all out soon enough).
However, market manipulations do happen, they’re part and parcel of the longer-term discovery
process and the mechanisms of the free(ish) market means they will be used by people with
money and the necessary amount of greed to tilt markets for near-term gains. Your author isn’t
a conspiracy theorist (no, I didn’t say nutbar, not out loud anyway) but is a realist. I don’t give
a damn if it were JP Morgan, the Bilderberg Cartel or Extraterrestrials for the Planet Zog behind
it all; the tape shows a short attack, a short attack is what it was. Yes, markets get manipulated
from time to time by big money players and so freakin’ what? Get over it.
In short and without getting too flowery on you, gold saw a classic attack on Thursday that
matched a calendar window which left it vulnerable to such a move. We’ve seen them before
and the way in which in 2013 and 2014 the metal suffered from a lack of support afterwards,
but the way gold took its hit but immediately, 24 hours start to finish which gave time for all
who wanted to follow in and become opportunistic bear, bounced back in lively trading shows
something different and far more optimistic is going on.
It’s easy to read too much into such moments too, so beware of getting too bullish about its
near-term future. Gold’s strength in the first month of 2015 has been plain straight fear-trade
stuff, people are nervous about [ * ] and want protection, very rich people don’t want to
become very un-rich (see IKN297 intro), etc. For my money that’s not a signal for gold to zoom
straight through $1.3k and to $1.4k in the weeks to come (though if I’m wrong on that I’m sure
you’ll forgive me), but it is the sign you want from the wealth protection device. Just two weeks
ago I finished the intro ramble that talked about the Swiss deval with these words:
“Last week was no ordinary week for gold. We can expect the media to minimalize or
even ignore the issue and hope it goes away, but this time it really is different. I have
suspicions but don’t really know how it’s going to affect the price of gold in the next
week or even the next month. But a year from now? Gold under U$1.3k? No way.”
Here we are, the newsflow has moved on and the chattering world now cares about [ * ]
instead of the Swiss Central Bank. But that dynamic hasn’t disappeared, as the buying strength
that showed up after the spec hit on the metal showed, it’s merely disappeared from the
CNBC/BNN/FT/WSJ headlines. That’s a whole different thing.
*Hillary next prez, Jeb next prez, Dollar strong, Dollar weak, Greece, ISIS, Ukraine, China, Draghi, Merkel,...hell, name
your favourite.
Riffing from the B2Gold events last week
To print our poems, the propulsive cause
is Fame - the breath of popular applause
Fame Makes Us Forward,
Robert Herrick, 1591-1674
Every so often some post or other on the public IKN blog gets popular and I have to field a
round of “Hey you’re famous!” phone calls and emails (sidebar and perhaps a subject for
another day; it’s a continual mystery as to why one post gets popular while others are ignored).
Last week saw one of those occasions due to the way the Clive Johnson/BTO public fracas
notes attracted attention, with first the Canadian brokerages in particular hitting the merry hell
out of the post and then because it got picked up by larger media sources such as the Financial
Post, which caused a second wave of hits. It wasn’t the first time this phenomenon has
happened and when it shows up you get this big surge in traffic which lasts for a couple of
days, and then it goes away again. But then, maybe a week or so later, if you check the stats
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you’ll see the average number daily visits has risen slightly, because a few of the people who
came over fo the first time liked what they saw and have stuck around a while longer. That
modest organic growth is one of the two real benefits of a popular post, as the temporary effect
doesn’t matter at all.
The other real benefit is to sit and watch the back office stats for a while and realize just how
many people out there have never heard of IKN. I got a timely reminder last week that when
you’re linked by the Financial Post, suddenly hundreds of hits come in from places and people
who clearly only ever get their (business, stocks, financial) news from mainstream sources.
Advantage the little guy, because the longer things such as specialist sources on LatAm mining
stay small and under the radar, the better and more effective the intel edge will be. I worked
out a long time ago that small is beautiful for my corner of the investment world.
The IKN niche is a specific one that’s not going to appeal to the vast majority of market
participants and doesn’t pretend otherwise. And in my considered opinion, fame is a whole
crock of excrement anyway and I have no desire at all to become a “face” or a “name on the
circuit” (yes offers come in, yes they get refused). There’s a difference between work that
brings organic growth in your audience, and then adding aggressive marketing on top to attract
as much of the strange and wide world as possible. I do the former because it’s not about
quantity of eyeballs, it’s about the right kind of audience. My idea of a good day on the free-
access open blog isn’t tens of thousands of hits on a single post, it’s a couple of hundred from
like-minded people that don’t have to agree with me in any way, (as you well know, dear
reader) but are open-minded, critical, free-thinking and can consider a range of opinions and
arguments, just one of them being my own. Getting just one of those people to check out the
blog for the first time is my idea of a good day.
Those of you who’ve been subscribing to this Weekly for years (you have a special place in my
heart) will likely remember the way I used to rail and complain, back when the junior market
was hot, about seeing IKN Weekly recos jump 15% and 20% on the Monday morning after the
call. It could just be wishful thinking on my part and due more to the crappy state of the
market, but these days the Weekly readership seems to have blown off the BS quick hit seekers
who run up stocks just because Person X calls it a buy. A two year bear market for juniors and
a whole bunch of unsubs later, the readership is largely one that approaches the market in a
steadier, more reasoned way. I know there are a lot of you who ignore my market calls and
read the Weekly for the political content only (fine by me), I know there are others who use my
calls as starting points for their own DD (ditto) but whatever reason it might be I love the fact I
can call a buy on something as tiny as Starcore (SAM.to) and still get a reasonable entry point
in the next couple of days. And when it comes to bigger issues such as MUX, nobody gives a
damn. That’s the best.
Moments like last week’s view count surge get me thinking on just why I do this strange thing,
what’s motivated me to shut the office door for the last 299 weekends and churn out this
publication. The answer is nuanced, a patchwork of reasons. I like the intellectual challenge,
yes the rigour and structure that comes from a deadline helps concentrate the mind and
crystallize ideas which in turn has improved me as a private investor. Yes the income is useful
and allows me to play at middle class. Then there are the flexible work hours that let me spend
more time with my kids than most professional fathers (that one is latent but when you reflect
on it, ladies and gentlemen, it’s priceless). Yes I have met (virtually and physically) so many
interesting and stimulating people from doing this job that I’ve lost count of you all. And of
course there’s a corner of it that’s just plain straight capitalist “do job get paid” satisfying. But I
don’t write The IKN Weekly or the blog for the breath of popular applause. This is not poetry,
this is work. And fame sucks.
3

Fundamental Analysis of Mining Stocks
The trade potential in Aberdeen International (AAB.to)
The proxy fight for control of Stan Bharti’s Aberdeen International (AAB.to) is a story I’ve been
following on the blog since it started in November, but over there it’s been the normal snarky
stuff. At one point I also mentioned that I didn’t really care who won and that’s still true, but it
gets a mention in this weekend’s edition because there may be a trade potential in the offing
on this stock. That is more interesting for us smallfry third parties, because no matter what
company of how badly it’s managed, any occasion for a buy-low-sell-high is worthy of our
attention. Here comes an overview that maps out what we know, what we assume and what
the potential trade may look like.
What we know
• There is currently a proxy battle for control of Stan Bharti’s Aberdeen International
(AAB.to) vehicle.
• The dissenting party is led by one Ryan Morris and his company Meson Capital.
Morris/Meson together own 4,957,750 shares of AAB.to. The concerned shareholder
group as a whole (which includes Nightscape Capital and other holders) owns an
aggregate of 8,360,250 shares, or 8.6% of shares outstanding.
• There are 97,349,422 shares outstanding of AAB.to.
• The special meeting (aka extraordinary general meeting, or EGM) is set for next week,
February 3rd 2015.
That’s the easy bit done.
What we assume
According to AAB statements (2), Meson Capital paid an average of 15.5c for its position and its
one that was built not long before the proxy battle began. As the first public statement was
November 18th and there was apparently discussions between the two parties a few days
before things went public, it’s a fair guess that this is the period when Meson bought in.
Next, the main assumption for any potential trade purposes. We assume that the proxy
slate is going to fail on Tuesday. We know that between them, Bharti and the other current
directors officially own 14.82m shares, representing 15.2% of shares out (as at July 2014) .
What’s also very likely is that a large swathe of AAB shares are owned by ostensibly arms-
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length third party entities that are in fact controlled by Bharti & Co. Even if the ‘shadow support’
(let’s say) for the Bharti slate isn’t as large as I and most others suspect, the odds are still
stacked against the dissenting Meson Capital slate and I’d be surprised if things go against the
current board on Tuesday.
From there, if we assume that Meson is about to see its bid for control fail miserably the next
assumption is that it sells out of its position and walks away. This is not a guaranteed
occurrence but it is likely, as under normal circumstances a failed proxy bid will retire from the
scene, tail between its legs. This specific battle might not end this way and we may see Meson
decide to hang around, hold onto its shares and try again in the future (for just one example of
a reason to stick around, the severance pay deals with the current AAB board of directors mean
that it would be cheaper to oust them this time next year). There’s also the wildcard of egos in
play here and we don’t know exactly how the 30 year old Ryan Morris (who’s used to winning
this type of smallish activist proxy and has a name he wants to make for himself) is going to
react to failure. We’ll see, but on balance the likely thing is the sensible thing, which is Meson
Capital selling out and moving on.
If that happens, it’s not going to be tough to see it in the market action. We’re talking nearly
5m shares to be dumped onto a fairly thin market by Meson alone (though AAB does have its
days and volume spikes, as seen above) with a potential of 8.6m shares going in total and as
the share price action indicates, AAB has shown a distinct tendency to spike down.
Also of course, the presumed winners of next week’s showdown, Bharti and Friends, arne’t
likely to prop up the share price in the very near term as they’ll be happy (schadenfreude etc)
to see Meson Capital take a loss as they walk.
An estimate on Aberdeen’s true net worth
The asset book at AAB is a mish-mash of shares in public and private companies, some of
which hold immediate and tangible value and some of which may be more a figment of the
collective imaginations of Forbes & Manhattan than anything based in reality. However, among
the holdings are 4,762,500 shares of Rio Alto Mining (RIO.to), which as at October 31st 2014
(the last financial quarterly filings date) comprised 73.5% of the public investment portfolio. At
as this weekend those shares are worth CAD$17.29m, or 18.3c per share. Those shares alone
are worth more than the current share price of 14.5c and as at October 31st AAB.to reported
(claimed?) shareholder equity of 36c per share (3) which begs the question as to why AAB.to
trades where it does.
At least part of the answer lies in the entrenched management and their severance pay
contracts, as according to the June 2014 Management Information Circular if the board were
ousted the members would be due cash severance deals of over $12m (just three members of
the board getting the lion’s share, with around $3.7m in severance going to Stan Bharti, $3.8m
to George Fraught and $4m to David Stein...nice work if you can get it) There in one shot is
over 12c per share of equity value. Meanwhile, as long as the current board remain in place
they’ll continue to siphon off large salaries and bonus payments, so it’s a kind of Catch-22 for
AAB share price: keep the current scumbag board and the share price will stay low, drop them
and it will go low.
However, there is real value there underscoring the AAB.to asset book, as just the holding in
RIO.to makes plain. Given a fair run, AAB.to could go higher or much higher and under the
terms of the severance pay deal, which is calculated on the salaries and bonuses picked up in
the three trailing years, it’s going to be cheaper to get rid of the parasite three running the
shop in 2016 and beyond (as the biggest bonuses were paid in 2011 and 2012).
Overall, it’s fair to say that AAB.to is worth more than its current depressed 14.5c, on that score
the dissident proxy salte is absolutely correct. The problem is that you never know what kind of
underhand trick to siphon cash away from equities and to their own back pocket. But after
examining the asset book carefully, discounting the dubious values AAB claims for some line
5

items, giving correct value to those items that can be accounted for (first and foremost being
that chunk of RIO.to) and then sticking a finger in the air to guess the negative influence of the
Bharti crew in 2015, I’m going to best-guess AAB.to can see 20c easily enough.
Putting it all together
• We have a set date for a key meeting
• We have the strong probability that the proxy will fail
• We have the distinct possibility that AAB.to shares will trade lower after the meeting,
assuming Meson Capital (at least) dumps its holding and walks away with a loss, licking
its wounds.
• We have a share price that doesn’t reflect the underlying value in held assets and even
playing it safe and assuming negatives from this nefarious band of boardroom thieves
in the future, is worth at least 20c.
Which brings us to the trade potential in AAB.to next week
This is a conditional trade, the specific events need to fall into line before the potential scenario
firms up and becomes a live opportunity:
IF the EGM goes ahead as planned on Tuesday and then the Meson-led dissident slate loses as
expected.
IF the AAB.to share price then sees weakness (with or without heavy volume)
IF we then see a large volume spike in AAB that we presume to be Meson Capital (at least)
selling out and walking away
THEN your author is a buyer of AAB.to shares, with a near-term flip in mind, an ideal entry
point of 12c or below and a near-term target of something around 16c to 18c on the rebound. I
wouldn’t want to hold on to them too long and if the trade starts, I’d count to a month and sell
them at the price offered.
As the above chart suggests, a spike down price of 12c is a reasonable target for an entry point
as from Wednesday February 4th.
If this trade goes live, expect a Flash update before I make my own move. At a best guess, if
it’s going to happen it will happen between Wednesday and Friday. Nothing sure yet, though.
Stocks to Follow
Of our twelve open positions, five lost ground on the week (BTO.to, IRL.to, NCQ.to, LRA.v, FSM
short) and one was unchanged (GQC.v). The other six had a winning week (RIO.to, MUX,
DNA.to, SAM.to, FCV.v, AG) and included the best percentage wins from a strong Rio Alto
(RIO.to up 12.4%) and newly popular Dalradian Resources (DNA.to up 10.8%). The worst of
the percentage losses was taken by Lara Exploration (LRA.v down 9.6%). All in all, one of those
pleasant weeks where generally speaking the bigger positions rose and the smaller ones
dropped. A week when gold dropped too (GLD 0.6% down week-over-week).
I’ve done some shuffling on the name order for the list this weekend, reflecting as always my
preference and favouritism among open names. Top Pick RIO.to is still #1 of course. After that
I try to make my sentiments plain about the opportunity that MUX represents. Dalradian
(DNA.to) is now above B2Gold (BTO.to) (BTG) and Starcore (SAM.to) is above Focus (FCV.v)
for the time being, though that will get reviewed once we know how the pending FCV.v
financing round is getting on. Minera IRL moves up one slot because it’s starting to attract
some interest and volume, though it’s still a spec buy at best until an Ollachea financing deal is
nailed down. I’ve also shifted a few of the near-term sentiment calls though as a small
reminder, those don’t change my overall bullish opinion of the stock in question, it’s just my oft-
inaccurate near-term read on things.
6

With the addition of McEwen Mining (MUX) we now have 12 open positions on our our ‘Stocks
to Follow’ list, three less than our self-imposed maximum. Five of those are in the green, seven
are in the red.
Current
company Ticker this week Avg Price Reco date PPS Gain/Loss% Notes
Top Picks
Rio Alto Mining RIO.to buy C$2.30 07-apr-11 C$3.63 57.8% Top Pick, Best PM Jr, M&A tgt
Recommended long positions (in current order of preference)
McEwen Mining MUX STR buy U$1.18 25-jan-15 U$1.25 5.9% New position, excellent value
Dalradian Res DNA.to buy C$0.64 27-oct-13 C$1.03 60.9% Nov'14 tgt $1.25, top Au expl
B2Gold BTO.to hold C$2.32 12-sep-14 C$2.50 7.8% Dependent on Au price moves
Starcore Intl SAM.to buy C$0.12 10-jan-15 C$0.135 12.5% Small Pos., added, tgt 19c
Focus Ventures FCV.v hold C$0.23 01-jul-12 C$0.22 -4.3% tgt 50c, due Feb'15 financing
First Majestic AG spec buy U$10.51 10-aug-14 U$6.19 -41.1% Now in pair trade with FSM
Minera IRL IRL.to hold C$0.27 22-jul-12 C$0.06 -77.8% Waiting for financing news
NovaCopper NCQ.to hold C$1.05 09-apr-14 C$0.65 -38.1% small Cu play low vols, hold
GoldQuest Min. GQC.v hold C$0.26 27-oct-13 C$0.13 -50.0% no point selling so cheaply
Lara Expl. LRA.v hold C$1.15 08-apr-12 C$0.375 -67.4% solid biz model, LT hold
Recommended short positions
Fortuna Silver FSM SHORT U$4.12 10-nov-14 U$4.83 -17.2% In pair trade with AG
Smaller/Riskier
none at moment
Closed in 2015 closed close price
Argonaut Gold AR.to jan'14 C$1.47 14-dec-14 C$2.53 72.1% Big gain small time, profit taken
Amerigo Res ARG.to jan'14 C$0.405 20-jul-14 C$0.285 -29.6% Given up on weak Cu prices
Reservoir Min. RMC.v jan'14 C$6.05 18-jun-14 C$4.12 -31.9% sold on Cu downturn
Coro Mining COP.to jan'14 C$0.075 26-jan-14 C$0.035 -53.3% sm, sold on Cu downturn
2009, 2010, 2011, 2012, 2013 and 2014 closed positions in appendices below
Now for some notes on current basket stocks.
McEwen Mining (MUX) (MUX.to): Position opened. I got all the MUX I wanted on Monday
morning at a great price (please note, I own and will follow the US ticker on this one) and then
watched as the stock flew into the high 30s a day later. It was almost embarrassing. Then
came the Thursday sector correction and MUX dropped hard, you could have bought at U$1.15
and $1.16 without any sort of problem and though tempted, I didn’t add. The stock did well
Friday and so here we are, one week gone and already on the right side of the trade.
Starcore International (SAM.to):
Whisper it softly, this small spec trade is
starting to work.
One of the reasons I didn’t buy this in 2014
was the volume problem, as trading was
bitty and would often go stretches of days at
a time with less then 100k traded per day.
December and tax-loss selling helped things
on that score and dragged the price down,
but coming into January the trailing average
volume was still less than 200k per day.
7

Here’s last week’s trading, day-by-day:
Jan 26th 723k, Jan 27th 315k, Jan 28th 551k, Jan 29th 943k, Jan 30th 395k
That’s much more like it and combined with the rising share price that seems to have cracked
away from the 12c ceiling, it’s beginning to go the right way. Ambitions here are limited, we’re
not after the cash to fund the next Lamborghini, still it’s nice to see another line of green
consolidate on the above table.
Fortuna Silver (FSM) (FVI.to) and First Majestic (FR.to) (AG) Pair Trade: First our pair
trade tracking chart:
As per this weekend, FSM is roughly 5% up since the start of the pair, AG is up roughly 21%,
the trade is 16% to our benefit, and of basic update.
To clear up a couple of inquiries on this pair trade and to underscore that the performance
since mid-November, though good, isn’t the whole story and that in absolute terms I’m still in
the red on both trades, here’s a brief history of how we got here.
• The first move was to go long on First Majestic (AG) at the wrong time, mid-2014
before silver fell off its cliff.
• The second was the biggest mistake of all, doubling down and adding to the AG
position just before the waterfall drop.
• No, wait, the third move was the most stupid of them all, when I didn’t see the writing
on the wall and insisted that the fixed asset value at AG would prop up the stock and
see it perform better than the average silver play in the downturn.
• Then came the Fortuna Silver (FSM) short, the idea being to hedge at least some of the
portfolio in general with a short that looked, and still looks, overvalued to peers.
• But still the silver portion of my portfolio was causing me more stress than any other
part of the holdings. I jettisoned Santacruz Silver (SCZ.v) at what turned out to be the
right time (at least on that one I read the signs correctly) but having never been a
particular fan of the metal in the first place* (strong preference for gold and gold
miners) the whole complex was causing sleepless nights
• A week or two later the solution finally occurred to my rather slow brain; make the last
remaining silver exposures into a separate pair trade. The two positions were squared
off so they matched each other (by adding to the FVI short a bit, for what that’s worth
and since then, mid-November, my silver headache has largely died down. Being self-
contained and balanced against each other means I haven’t had to worry about silver’s
relative or absolute performance thought the December (tax loss) and January (bounce
or not) period and as it happens, the 16% gap that’s developed between AG and FSM
means the general thesis and bet that my long would outperform my short has worked
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out in the period, too.
So to sum up, be clear that you can see the red blotches next to both FSM and AG on the main
table because in absolute terms both trades are still losers. But this pair trade has been a useful
vehicle through a particularly volatile period and, most importantly, I’ve been able to sleep
better at night.
Which brings us up to date, what matters more is the future (of course). We’re now
approaching the period expected to be most influential to the FSM short, with reserve/resource
update and then the year-end financial results due mid-March. To answer a specific query at
this point (MZ), I know other people like Fortuna Silver as their ‘go to’ silver stock these days, in
fact it’s become quite the flag-bearer and market darling in the silver space recently. Here at
The IKN Weekly we’ve never said it’s a bad company (because it isn’t) but the numbers say it’s
an overvalued company, and substantially so. The contention here is that supporters (I’d go as
far as ‘fan club’ these days) of Fortuna are in for a rude awakening come the year-end
financials and 2015 guidance when it becomes apparent that its earnings potential is modest
and it needs to spend and spend again on capital projects just to keep itself running. The model
here indicates that at anything under U$19/oz silver, Fortuna Silver makes a modest net profit
at best and at $17/oz it’s breakeven maximum. San José is a well-run and profitable mine.
Caylloma was a great mine and now it’s expensive, with its reliance on zinc (and lead)
production that’s seen significant price drops at market in the last quarter. I’m also expecting
the company to take impairments on assets, what with its resource/reserve silver priced in the
20s.
Anyway that’s the reason for shorting FSM here. As the date approaches and depending on the
share price and the price of silver, I’m considering an add to the short and break the
equilibrium of this current pair. That’s still undecided, though.
*Having written this up and finished this part of the note, I was relaxing (?) and taking a
writing break this Sunday afternoon by reading Gary Tanashian’s latest NFTRH when I found
this written on page 20:
“There is a reason I am bullish on gold (or more accurately, its intrinsic value) and that is because
it acts as money in times of monetary stress. I don’t care how bullish the USD is, it is not a store
of value in this casino. It is a keeper of liquidity right now. Period.
Silver is sometimes money(ish), but I neither care for the speculation and drama it stimulates nor
its more positive correlation to commodities, economies and markets”
I thought, “Darn, I wish I’d said that”. Nicely done, Gary.
Focus Ventures (FCV.v): An insider purchase to put before you today, as on Wednesday
company chair Simon Ridgway bought 10,000 FCV share at 21.5c (4).
Now a single 10k purchase isn’t the biggest insider buy ever (and Ridgway owns 3.08m share of
this thing in total) but the timing strikes me as significant. We know that FCV has to raise cash
to pay its $3m option on the Bayovar 12 project by March and from all the noises, it’s going to
be an equity placement and it’s going to be this month. So what that above trade looks like is
the head of the company throwing down a marker and saying where the private placement
financing will be set.
I’m expecting it to be a unit deal, probably a share-plus-half-warrant thing, and with things as
they are I’m guessing a 20c price, with the ½ warrant set at maybe 25c or so. In other words,
9

we’re looking at an FCV that will add at least 15m shares to its S/O total, plus more to its fully
diluted total, and soon. For the above reasons I’ve notched the near-term sentiment call on the
above table down to ‘hold’ for the time being, as a treading water period is likely for FCV.
Rio Alto Mining (RIOM) (RIO.to): Just to underscore how bad I am at near-term moves,
last week I was the one warning the world about the apparent ceiling in our Top Pick’s stock
price and offering the sage advice to go looking somewhere else if it’s near-term upside that
you want. Here we are seven days later and RIO.to put in a top performance, adding over 12%
to its price and market cap on strong volumes and plenty of accumulative pressure.
We know that the RIO.to team was in Toronto last week for the TD Sec conference and
marketed to all that would listen, so maybe Alex Black and Co impressed the assorted suits. The
January presentation on the RIO.to website (5) doesn’t have anything particularly new and
stunning for those of us who follow the stock closely, but even I was impressed by slide 25 and
its bottom line message of “we make money where gold is today, we have leverage if golds
goes higher, but even if gold drops to $1,000/oz we make $100/oz net/net, so stop worrying”,
or words to that effect. Maybe that’s the one that cut ice with new money.
Dalradian Resources (DNA.to): I’ve had this stock labelled “top gold exploration company”
in the table notes for months, so it’s good to see other people agreeing. The news on Tuesday
(6) that Ross Beaty has bought into DNA.to via an $11.3m placement with units priced at 90c
(1 unit = 1 share + ½ warrant at $1.15) was greeted with a cheer by the market, volume that
day was over a million shares and the price closed at 99c (+13.8%). DNA too dropped hard in
the Thursday jitters but flew hard during the Friday rebound, closing at $1.03 and ending the
week with a real sparkle.
The news of Beaty buying in is a net positive for the optics here, and the treasury too. Tellingly,
its timing looks significant as well because the placement is set to close just days before those
near-10m warrants priced at 90c we considered recently. As things stand they’re now set fair to
be exercised in (near) full and the result
50 DNA: Working Capital per qtr
of the Beaty buy plus those warrants is
45
more cash in the treasury of course, but
40
extra share count to consider when 35
evaluating price targets. 30
25
20
First the treasury position and as liabilities
15
at DNA are minimal, the working capital
10
position tells the story as well as any other 5
metric. This chart has our adjusted 0
forecast working capital for DNA in 2015,
which includes the budgeted work at
Curraghinalt for the year and assumes the
Beaty placement closes correctly and all the February 19th dated warrants are exercised.
Previously we had DNA exiting 2015 with little more than fumes in the treasury chest and the
assumption that the company would need to finance again before the year was out (picking a
strategic moment). Well that last week may turn out to be the strategic moment. We now
forecast DNA to leave 2015 with slightly over $15m cash&eq and $16m in working cap. Pretty
healthy and it gives the company options on what to do cash-wise, assuming of course that it
isn’t bought out before then.
As for the share count, we make the same assumptions as above which will bring us to
approximately 163m shares out by the end of this month. As so far we’ve based at least part of
our target price on in-situ gold valuations (which has in turn been a reasonably close match to
the cash flow model) here’s the in-situ chart used in previous analyses and updated to include
the new share count and the new U$0.80/CAD$1.00 forex as well:
10
01q4 11q1 11q2 11q3 11q4 21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 41q1 41q2 41q3 tse41q4 tse51q1 tse51q2 tse51q3 tse51q4
source company filings, IKN ests
srallod
fo
snoillim

DNA.to Curraghinalt in-situ gold valuation
at 3.5m oz Au shares outstanding
PPS (S) 153m 163m 180m 200m
0.80 29.14 33.87 34.29 38.10
0.90 32.79 38.10 38.57 42.86
0.95 34.61 40.22 40.71 45.24
1.00 36.43 42.34 42.86 47.62
1.03 37.52 43.61 44.14 49.05
1.05 38.25 44.45 45.00 50.00
1.10 40.07 46.57 47.14 52.38
1.20 43.71 50.81 51.43 57.14
1.30 47.36 55.04 55.71 61.90
1.50 54.64 63.51 64.29 71.43
source: IKN calcs, U$0.80=CAD$1
At a CAD$1.00 share price. That fits fairly well with the current $1.25 target we have on DNA,
too (oops, bias confirmation alert). However, it’s not a case of being in love with the stock and
blithely assuming it will get a $2 (or whatever price) buyout bid. The target here is $1.25 and
as things stand today, if I see it in the next few weeks I’ll take it, sell, bank the profits. This
isn’t one I’m going to try and finesse by being sneaky on you and creeping the target higher.
B2Gold (BTG) (BTO.to): Away from extra-curricular headline making last week, the stock
remained flat compared to many (including the
larger caps, see below) and failed to raise much
buying interest. That’s pretty much along the
lines mentioned this time last week when we
noted that the 2015 (to date) price high came
on the day it announced its Q4 production and
2015 guidance. The stock isn’t some sort of
drop dead bargain compared to peers, it’s
priced correctly and likely to float with gold.
Happy to hold (and I honestly don’t care who
hits who in the end as long as they do their
jobs correctly while on company time) but no
big reason to add at the moment.
Minera IRL (IRL.to) (MIRL.L): Aside from Friday, when IRL got slightly forgotten by the
world and traded just a thousand shares (it happens), the stock had a better week on the TSX,
with volume and people prepared to pay the princely sum of 7c for ownership. Like I said last
week, gotta start somewhere. It’s still clearly highly speculative and the lack of news is the
issue. We wait.
The Copper Basket
After five weeks of 2015 The Copper Basket is showing an 8.63% loss to level stakes.
11

company ticker price 1/1/15 Shares out Market Cap current pps gain/loss%
1 Capstone Min. CS.to 2.03 381.95 443.06 1.16 -42.9%
2 Reservoir Min. RMC.v 3.96 47.55 213.98 4.50 13.6%
3 NGEx Resources NGQ.to 1.17 187.71 197.10 1.05 -10.3%
4 Nevada Copper NCU.to 1.65 80.5 108.68 1.35 -18.2%
5 Copper Fox CUU.v 0.135 402.96 62.46 0.155 14.8%
6 Western Copper WRN.to 0.68 93.68 53.40 0.57 -16.2%
7 Hot Chili Ltd HCH.ax 0.16 333.11 53.30 0.16 0.0%
8 Panoro Minerals PML.v 0.295 220.25 44.05 0.20 -32.2%
9 Amerigo Res ARG.to 0.27 173.65 41.68 0.24 -11.1%
10 NovaCopper NCQ.to 0.58 60.15 39.10 0.65 12.1%
11 Regulus Res REG.v 0.35 56.39 19.74 0.35 0.0%
12 Metminco MNC.ax 0.008 1822.6 12.76 0.007 -12.5%
13 Catalyst Copper CCY.v 0.305 31.39 9.42 0.30 -1.6%
14 AQM Copper AQM.v 0.06 139.24 9.05 0.065 8.3%
15 Coro Mining* COP.to 0.045 159.37 4.78 0.03 -33.3%
NB: HCH.ax & MNC.ax priced in AUD$, rest CAD$ Portfolio avg -8.63%
Something of an negative to unchy week, with no fewer
The Copper Basket 2015, weekly evolution
than six stocks unchanged (NGQ.to, PML.v, CUU.v, 4%
MNC.ax, AQM.v, COP.to) since IKN298. Seven others 2%
lost ground (CS.to, RMC.v, WRN.to, ARG.to, HCH.ax, 0%
NCQ.to. REG.v) which leaves just two weekly winners -2%
(NCU.to, CCY.v). Best percentage performer as Catalyst -4%
Copper (CCY.v up 20.0%), worst was Reservoir Minerals -6%
(RMC.v down 9.1%). -8%
-10%
Copper the metals tried and failed to rally on Monday
(plenty of fans out there in chatterland who were willing
it up), then managed to squeak it back over $2.50/lb on
Friday. Only next week knows whether the rally is real or
fake.
We move to our regular inventories tracking and the
bullet points:
• Overall world levels rose again, but this time
more modestly. We saw 14,749 metric tonnes
(mt) (+3.8%) added to the world’s official
warehouse stocks for copper to finish at
404,631mt. The trend continues.
• The Shanghai Futures Exchange saw a small rise,
up 2,905mt (+2.2%) to finish at 137,042mt.
• The LME copper warehouse inventories saw the
biggest move again, up 12,975mt (+5.5%) to
close Friday at 248,125mt.
• Comex inventories dropped again and remain
contrary to the other systems, though relatively small in absolute tonnage of course.
That sentence was copied verbatim from last week’s edition, by the way. Comex stocks
diminished by 1,131mt (-5.5%) to finish the week at 19,464mt.
Our tracking chart of the key Shanghai warehouse shows three weeks at out new level. We’re
basically two working weeks from the Chinese New Year period, this is starting to look like a
new consolidation level and may be around until March, when that country gets back to real
work.
12
ht4naj ht11 ht81 ht52 ts1bef
source: IKN calcs

Shanghai Futures Exchange Warehouse Stocks, 2014/2015
220000
200000
180000
160000
140000
120000
100000
80000
60000
13
ts13ceD ht5naj ht21 ht91 ht62 dn2bef ht9 ht61 dr32 dn2ram ht9 ht61 dr32 ht03 ht6rpa ht31 ht02 ht72 ht4yam ht11 ht81 ht52 ts1enuj ht8 ht51 dn22 ht92 ht6yluj ht31 ht02 ht72 dr3gua ht01 ht71 ht42 ts13 ht7 ht41 ts12 ht82 ht5tco ht21 ht91 ht62 dn2von ht9 ht61 dr32 ht03 ht7ced ht41 ts12 ht82 ht4naj ht11 ht81 ht52 ts1bef
Mt Cu
source: Cochilco
Last week I mentioned the new stats and data page at Cochilco and how great it is to use.
Here’s an example of what you can do there (with English language instructions). This chart
tracks inventory date from September 1st 2014 to date and and well as giving the LME total,
gives separate lines for each geographical area of LME stocks.
As is plain, the two big risers in the breakdown starting from mid-November are the Shanghai
warehouses and the LME Asia warehouses. Unlikely to be a coincidence. The only thing I’ve
done with this chart is re-label it in English, everything else was generated automatically at the
website. Tons of other options and datasets to choose from too (and not just copper). It’s very
cool and it’s here (7), a recommended tool.
Now for notes on a couple of basket stocks:
Reservoir Minerals (RMC.v): The numbers, conference call and overall downbeat mood of
the Freeport (FCX) quarter as announced on Tuesday seems to have weighed on RMC last week
(check out the ConfCall transcript here (8), it makes for pretty grim reading even when FCX-
friendly analysts ask the questions), even though the Timok JV wasn’t mentioned at all and the
heavy 2015 budget cuts at FCX seem to be in other areas. I say “seem to be” because the big
company uses general categories to explain its cost-cutting measures and the oil&gas division
took most of the $2Bn budget cut, but FCX said it was looking to cut in several areas and may
cut budgets again later in the year.
Overall and at the moment, the 2015 exploration campaign looks safe. But the issue here is
M&A and with FCX now in full austerity mode, we’re unlikely to see the big company move to
but out the small company yet. I could be wrong, but RMC for me is going to stay un-bought in
2015 and therefore I’m a little more relaxed about selling my chunk a couple of weeks ago (at
what turned out to be a bad price).

Nevada Copper (NCU.to): An update on that (in)famous shaft sinking effort that NCU needs
to complete in order to get its stage one operation going. As at January 7th 2015 (company
filing of its latest presentation (9)) the tunnel was at 1,655 feet and advancing, and I quote, “5
to 7 feet per day, depending on ground conditions”.
The last time we check in on this subject was IKN295 and in that edition, we noted that the
tunnel was reported by the company at 1,520 feet depth, with another 580 feet to be tunnelled
before the job was done. At that time we noted the rate of advancement was well below the “5
to 7 feet per day” the company claimed. With the new numbers we can check up on progress.
• November 25th to January 7th progress from 1,520 feet to 1,655 feet = 135 feet.
• Days elapsed = 43 days.
• Average progress per day = 3.14 feet
Once again, the reality doesn’t match up to the claims made by NCU. And even if we’re
generous and cut a week out of the time for the Christmas/New Year period the resulting 36
days is an average of 3.75 feet per day, well short of the 5 to 7 feet in the glossy brochures.
But the future is what concerns us most and we know that from January 7th, NCU has 445 feet
left to tunnel in order to reach the mineralization and complete the shaft. Here come the
calculations:
• At 5 feet per day: 89 days = 3 months less a couple of days = completion ~early March
• At 4 feet per day: 111 days = 3 ½ months = completion ~late March
• At 3 feet per day: 148 days = nearly 5 months = completion ~end May
Back in the more detailed analysis of IKN295 we noted that NCU’s cash treasury, even after its
recent refinancing with Red Kite, was scheduled to be dry by April 2015. That means at the
very least it needs to get this tunnel done by the end of March and even then (here’s a chunk
of the IKN295 text)...
“...there’s the little matter of the $24.3m they have earmarked a the bill for
the production equipment they need for the underground operation. Your
author understands from good authority that NCU hasn’t spent a dime on that
as yet, so it will need to fund the purchases some way.
...so even with the tunnel done it’s by no means out of the woods. But getting the tunnel
complete before the company runs out of ready cash is now an absolute minimum requirement
for the company (and please note, importantly, that when the company gets to the 1,906 feet
mark and digs no deeper it’s going to give you a fanfare NR for sure, but it will still need to
tunnel nearly 200 feet before the project is complete) and the way things are going, well, let’s
give them the benefit of the doubt but even so it’s nip and tuck here. And it remains to be seen
how NCU plans to pay for the machinery it needs.
There’s a difference here between NCU the company and NCU the stock. The company has
large insto support from Pala and from Red Kite, so it’s unlikely to be denied those last few
millions it will need to buy machines, go into production and produce real fanfare NRs come the
time. But how it gets that money is another story and there’s a pattern of cash raising here that
is squeezing equities out of the picture. Pala is of course a big holder of NCU stock, but the last
time the company tapped its backer the money came not in the form of another equity raise
but two small bridging loans, both with sizeable interest rates and specific payback criteria.
Then Red Kite, which is all about debt financing and not about holding shares or warrants. NCU
is collecting debt on its balance sheet and come March or April, if we see another debt deal to
secure machinery financing, in the current price climate for copper those holding shares should
look out below. And as for M&A, nobody but nobody is going to buy this thing, not with all that
debt on board and a long road before positive free cash flow. All that aside form the dubious
quality of the asset, particularly the marginal economics of the larger stage two operation.
14

Being a Canadian-listed company makes it difficult for the retail player, but all the same and
even with the PPS drop seen in January NCU is an obvious short here. Its share price could end
up in the pennies. Or in another way, the standard model mining stock...errr...“flow” chart:
Or to put it an
Regulus Resources (REG.v): A large-ish percentage drop (7.9%) last week, but it’s only the
stock bouncing inside its trading range on low volumes. Until we get news on the social
situation around Antakori (ex-Sinchao) this one is strictly to be watched, not touched.
Capstone Mining (CS.to): We had a new multi-year low from CS.to on Thursday, when the
stock touched $1.04 during the general metals sector sell-off. That recovered to this weekend’s
$1.16 but it was still a month to forget for the company. One year ago this was a $3 share
price, it’s not just the precious metals miners that have felt the violent end of the downturn.
The common denominator among the heaviest hit metals producers, no matter whether
industrial precious or specialist, has been large financial liabilities: Look to the balance sheet.
The Low Cost Producer Basket
After 5 weeks, the new Low Cost Producer Basket is showing a 23.46% gain to level stakes
company ticker price 1/1/15 Shares out Mkt Cap (Bn) current pps gain/loss%
1 Goldcorp GG 18.52 812 19.51 24.03 29.8%
2 Barrick ABX 10.75 1164.67 14.88 12.78 18.9%
3 Newmont NEM 18.90 499 12.54 25.14 33.0%
4 Franco Nevada FNV 49.19 156.08 8.99 57.60 17.1%
5 Silver Wheaton SLW 20.33 357.39 8.21 22.97 13.0%
6 Agnico Eagle AEM 24.89 173.43 5.85 33.72 35.5%
7 Kinross KGC 2.82 1114.5 3.78 3.39 20.2%
8 Buenaventura BVN 9.56 254.19 2.90 11.42 19.5%
9 B2Gold BTG 1.62 948.9 1.86 1.96 21.0%
10 Pan American PAAS 9.20 151.41 1.77 11.66 26.7%
all prices in U$, using NYSE ticker prices Portfolio avg 23.46%
15

Another good week for the larger cap
miners, with eight winners (GG, ABX,
The Low Cost Producer Basket: Weekly performance
NEM, FNV, AEM, KGC, BVN, PAAS) and
and comparative to GDX control
just two losers (SLW, BTG) on our list. 25%
The biggest gains were seen in Franco
20%
Nevada (FNV up 5.5%), Buenaventura
(BVN up 4.3%), Pan American Silver 15%
(PAAS up 4.3%) and Newmont (NEM up basket
10% gdx control
4.1%). The biggest loser was B2Gold
(BTG down 3.5%). In more ways than 5%
one. As a result of all that, our basket still
shows a modest advantage over our 0%
benchmark, the GDX ETF. Dec31st jan4th 11th 18th 25th feb1st
source: Google Finance, IKN calcs
Buenaventura (BVN): My obsession with BVN continues, I promise to get it out of my system
soon. But as it happens there’s solid news to report about the company from last week, starting
with the news that its Tambomayo gold project has received its environmental permits from the
government of Peru (10) according to statements made by CEO Roque Benavides at a mining
conference in Lima last week. Tambomayo will now go full green light and this U$200m capex
project is expected to produce around 150,000 oz gold per annum as from 2016. At the same
conference, BVN’s chief also said they were considering raising capex cash via debt financing,
likely bonds, this year but no final decision had been made (11). Interestingly, the news on the
EIA permit came just a couple of days after Benavides made a public moan via Bloomberg that
investment in the Peru mining sector wasn’t being held back by lower prices but by bureaucracy
and social issues (12). A strategically timed whine, methinks.
Newmont Mining (NEM): NEM’s 33% share price improvement in just one calendar month is
the standout performance among all large cap mining stocks, even in the gold space where
double figure gains have been common. Staid old NEM has even beaten out Goldcorp on a
percentage basis and has left its main rival Barrick in the dust. There was more chatter about
the merger potential of NEM and ABX last week, this time from the JP Morgan team led by (13)
John Bridges who pointed to several cost-saving synergies (Nevada and Indonesia ops in
particular) as well as the more obvious size and market leading advantages it would. This is the
merger I predicted at the beginning of the year and it still makes a lot of sense at a numbers
level and a basic logic level. The blockage is the ego level, with two boards of directors with
power top of their respective agendas. As things stand today, ABX would approach any
negotiation from a position of weakness but if either side played up that subject, it’s easy to see
a deep freeze descend on even exploratory talks. As things stand, I’d call a fusion of these two
today a possible for 2015, not a probable.
Regional Politics and Market Watching
Chile: Codelco cuts costs
The main mining news out of Chile last week came from Codelco on Friday and its
announcement that, faced with the new lower prices for copper and Cochilco forecasts for 2015
and 2016 (14) it plans to cut its cost profile by U$1Bn in 2015 from the previously announced
budget. An obvious move for any copper player big or small, you might think (and you’d
probably be right), but this is still big headline-grabbing news in Chile, what with its reverence
for the State-run company and world’s single largest copper producing company.
16

The announcement was made on Friday morning by the (fairly new) CEO of Codelco, Nelson
Pizarro, and one of the main messages he rammed home from the start of the presser (and
repeated on several occasions through the initial announcement and then during the Q&A with
journalists) was that no jobs were to be lost by the cost-cutting move. Job security at Codelco
is a politically sensitive subject, so Pizarro obviously wanted to cut that one at the roots.
Instead, the Codelco plan sees cost reductions in three main areas
1) Fuel savings. Thanks to the new lower prices for crude oil, all contracts with suppliers
will be renegotiated. Codelco looks to save around U$500m on this item alone in 2015.
2) Increased copper production. The plan is to raise production by 35,000 tonnes over the
previously budgeted production guidance, targetting improved metals recoveries at the
two specific smelter operations at Potrerillos and Chuquicamata. This adds U$200m to
the Codelco P+L, a de-facto saving.
3) Efficiency and productivity. This is the vaguest of the three prongs of attack that looks
to save a total of around $500m. They including productivity measures, renegotiation of
other (non-fuel) supply contracts, maintenance cost savings, cuts in third party
consultancy contracts and studies, general investments and other. As (a symbolic?) part
of this, salaries for high executives in Codelco would be cut by 5%. Although not
mentioned outright, this suggests that management will be looking for at least a salary
freeze when it negotiates with unions later in the year on annual wage rises, perhaps
even a wage cut. Only time will tell how that goes down. Another labour implication is
that the full-time employees of Codelco are safe, but the large numbers of third party
contracted workers may see layoffs. As this sector is often as militant in protecting its
jobs as the full-timers, there may be industrial unrest ahead in Chile’s copper sector.
And before you mention the basic math above, yes I know those three add up to $1.2Bn and
they announced $1.0Bn. I’m going on what they said, that’s all. Pizarro and Co also made it
plain these cost-cutting initiatives would not affect previously announced capital investment
plans for Codelco over the next five years that include the development of Chuquicamata’s
underground operations, new power plants and other large-scale investments and expansion
programs with a confirmed and government-approved ten year budget of $23.5Bn. As part of
the move to save administrative money he also announced, yes indeed, a new layer of
bureaucracy inside Codelco. Called the ‘Vice-Presidency of Productivity and Costs’ its role is
clear enough from its title but you have to wonder why such a mechanism (with or without a
formal department name) never existed in such a large company before.
Pizarro said at the press conference that Codelco’s current operating (C1) cash cost stood at at
U$1.591/lb Cu and total cash costs stood at U$2.38/lb Cu. With these initiatives Codelco looked
to bring down C1 costs to $1.398/lb and total cash costs to $2.154/lb. With Codelco’s budget
assumptions based on a copper price of $2.80/lb minimum and $3.00/lb average, cuts are
immediately necessary, he said.
17

Argentina: CFK visits China
On Monday President Cristina Fernández de Kirchner arrives in China on an official State visit
with the main objective of securing trade deals between the two countries. CFK is taking the
proverbial slower boat to China, having flown East out of Buenos Aires and taken the
opportunity for a stop-over visit to Morocco on the way this weekend (15). For what it’s worth
she’s also touring in a wheelchair, having broken her ankle in a household accident a couple of
weeks ago. Meanwhile her Minister of Mining, Jorge Mayoral, arrived in China before her (by
taking the more straightforward Pacific route) on Thursday (16) and is already lobbying in
Beijing for new deals for the country’s mining sector. The relationship between China and
Argentina is a good one in general terms. In trade it’s based around soybean deals and
financially it became closer this year due to the two currency swap deals that saw China adding
US Dollars to its Central Bank reserves at a moment when it was feeling pressure from the
vulture fund is-it-isn’t-it-default ruling in the USA. China’s currency deal meant that Argentina
now has more dollars in reserves than this time last year, to the surprise of most
commentators. Whether or not mining deals are advanced this time is more doubtful, as
Argentina has been pushing hard for Chinese investment dollars for large-scale mine projects
for at least four years with little to show as yet. However, with all the rumours connecting
Chinese mining companies to the Barrick (ABX) Pascua Lama bi-national (i.e literally straddles
the border with Chile) project, deals aren’t out of the question and if so, Argentina will be there
to ensure its position as friend and partner of China.
Ecuador: A petition
The process to hold an official referendum in the area around the Quimsacocha/Loma Larga
mine project in South Ecuador, currently owned by INV Metals (INV.to) and previously by
IAMGOLD (IMG.to) (IAG), has been started by locals who oppose the project (17). According to
the rules, as of last week they have 180 days to collect the requisite amount of petition
signatures to take the referendum forward. If so, the petition becomes an official referendum
with a binding vote held either later this year or in 2016. It must be stressed that this process is
different from the type of locally called and held polls that are subsequently considered
unofficial and ignored by the government (we’ve seen such results in Ecuador, Peru, Colombia
and plenty of other places). Using official channels the vote would decide the so-called ‘social
licence’ for the project, without which the mine cannot happen. As it’s understood that
opposition in and around the Quimsacocha/Loma Larga is strong and in the majority, this is a
serious threat not only to INV’s aspirations but also to the political and social risk optics of wider
Ecuador, right at a time when President Correa wants to push forward on the formalization and
growth of the mining industry there (see the next story for a topical example).
Ecuador gets a Mining Ministry
Yesterday Saturday January 31st, as part of his weekly live program and as anticipated on these
pages a few weeks ago, President Rafael Correa of Ecuador announced (18) the creation of a
Ministry of Mining for his country. He explained that there was already a vice-ministry of mines
inside the larger Ministry of Non-Renewable Resources, but as that ministry is now swamped
with matters oil & gas its responsibilities towards hard rock mining are too often overlooked.
The creation of a new ministry and a minister that reports directly to him will help advance
mining in the country, says he. We can expect an executive decree in the next few days that
will make the Ministry’s creation official.
Peru: New environmental permitting rules in the pipeline
Peru’s vice-minister of mine, Guillermo Shinno, announced on Monday (19) that new
environmental regulations would be unveiled and enacted “in the next few weeks”. We don’t
have every detail of their contents as yet, but we know they’ve been designed to speed up the
permitting process, cut costs of the permitting process and make Peru a more attractive
destination for mining investment, though the ministry insists that no corners will be cut on
environmental or social permitting requirements. We’ll see about that.
Peru: Cañariaco plans a re-start
Potentially related to the above, this long-standing project of ill-feeling in LatAm may make new
18

headlines soon. According to local reports (20) Candente Copper (DNT.to) is looking to re-start
its exploration activities at its Cañariaco project project in the Cañaris region of Lambayeque,
northern coastal-ish Peru. Local in Cañaris say they’ve heard from workers previously employed
by DNT who expect to re-start operations in April 2015 and get hired again. The Cañaris
community president, Florentino Barrios, says that the local opposition to the mine is now more
organized and that nearly 100% of the locals in the area are against the mine project moving
forward.
For what it’s worth and away from the question of whether exploration goes ahead this year,
we should note that DNT.to is currently a company with virtually zero cash in treasury and a
negative working capital, so if it plans to re-start exploration activities this year it will need to
raise capital in some way or another, the most likely being a new and dilutive equity placement.
True Gold (TGM.v) redux
We saw TGM try to spin the situation as well as it could in its Friday NR (21), downplaying the
most sensitive issue of religious pushback to its project and emphasizing that it’s now in
negotiations with locals. And for anyone looking for positives we can state that company head
Mark O’Dea has put his money where his mouth is over the last few days...
...with three separate buys of TGM on three consecutive days that total 165,000 shares (just
over $27k cash spent). That puts his personal total equity position at over 9.7 million shares.
Good for him, but this is still a clear avoid of a stock.
Pershimco (PRO.v): Cheap and worth a second look
This isn’t at the top of my potential shopping list but it’s one that’s worthy of further
consideration, not least because it’s being written up in positive terms in local press, as
witnessed by this report in Panama’s biz news site Panama America (22). Those of you search
and filtering for a cheap and advanced exploration/development gold play may want to put it
into your list of possibles.
Pershimco (PRO.v) is about the only junior that’s managed to make real progress in exploration
and development in Pamana, via its Cerro Quema project that I’ve watched on and off since it
picked up the property from what’s now the Bellhaven (BHV.v) structure. Last year it filed a
decent Pre-Feas study and two weeks ago (23) filed its environmental impact study (EIS) with
the government of Panama and if after the necessary consideration period the permit pops out
the other end it would have all major permits in and and be ready to develop its project.
As for a few basics about the project, according to the July 2014 PFS, Cerro Quema is an oxide
gold deposit grading 0.77 g/t gold. Capex is estimated at U$117m, and once operational would
produce and average of 79,000 oz gold over a short-looking five yera mine life, though thanks
to a low strip rate, speedy leach kinetics and decent expected recoveries (86%) it would be a
cheap operation with an estimated U$631/oz all in sustaining cost (AISC). For more overview
details, a good place to start is the latest corporate presentation that you can find on this link
(24). For what it’s worth, the weak point in the story for me is the short mine life for the oxides.
PRO.v has shown exploration and drill results on sulphide material that could easily extend
things, but that would also entail a re-geared operation and (likely) new permits. Those tend to
be easier to obtain for a working mine, but we’d still be facing new layers of capex at least.
With 222.5m shares out and a Friday close of 17.5c, PRO currently runs a $38.93m market cap
and for that you also get a company with money still in the bank. As at September 30th PRO.v
has $8.8m in cash and a working cap of a little under $12m, it’s been careful with its money in
19

recent quarters so it’s fair to assume a treasury of at least $6m and working cap still around
$10m. That allows breathing space and gives management strategic options on how to
approach 2015, as well as giving backbone to that cheap looking share price. And by way of
added extra, we note that Agnico Eagle (AEM), well-known for its habit of picking up
explorecos, holds 17.8% of shares out here. Also Sentient Group owns 19.8% as at its latest
disclosure.
At its high point this was a $1.50 stock in 2012 and even after gold dropped away we saw this
trading at 40c in 2014, so today’s
17.5c looks cheap. This isn’t
getting a buy call on it today, nor
do I plan to buy any soon. My
personal position is to wait for the
eventual approval (or otherwise)
of the environmental permits, one
because it’s in a non-trad
jurisdiction such as Panama (with
all the bad blood that might be
around after the mess literally left
by Petaquilla Minerals), two
because I know that a couple of
years ago there was still some
significant opposition from locals
who live around the project. The
eventual EIA permit would de-risk
that subject enormously. Meanwhile, those with a higher risk tolerance might want to move on
at the current level.
Conclusion
IKN299 is done, we end with bullet points:
• No clear-cut buy this weekend, which is normal really. Great looking buy opportunities
such as MUX or AR.to in December don’t come on a regular basis and are exceptions,
not rules. However there’s a potentially interesting near-term trade set up in Aberdeen
Intl (AAB.to) that does depend on the newsflow and trades going in the way envisaged,
but if they do there’s a quick flip winner in the offing. One to keep me watching the
screen during opening hours this week.
• Starcore (SAM.to) looks to be picking up momentum and it’s not too late to own this
smallfry stock, either. Its quarter end was January 31st, we can expect a production
update during the next two weeks. The Creston deal of two weeks ago has put a new
spotlight on the company.
• And must reiterate how much I like McEwen Mining (MUX) here and no matter that it’s
up from my own buy price, this looked cheap to me at $1.35 when first chewing it over
two weeks ago. It’s still very cheap and a great entry point.
• Happy to say that the rains have arrived in the South of Peru, a relief for all the region
though it also means its power-cut season in towns and cities. I’ve been suffering the
consequences this weekend, a minor downside to a better future for local reservoirs.
Meanwhile, in Sao Paulo Brazil they’re now talking about restricting water supply to the
city to two days per week due to the drought there. I remember growing up and
assuming water would always in the pipes, a quasi-human right. Ah, the folly of youth.
20

The current Top 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://business.financialpost.com/2015/01/30/canada-gdp-falls-0-2-below-economists-expectations/
(2) http://www.aberdeeninternational.ca/News/News/News/2015/Aberdeen-International-Alerts-Shareholders-to-
Destructive-Dissident-and-Importance-of-Current-Boards-Action-Plan-for-Value-Creation/default.aspx
(3) http://finance.yahoo.com/news/aberdeen-reports-shareholders-equity-0-120000651.html
(4) https://www.canadianinsider.com/node/7?ticker=FCV
(5) http://www.rioaltomining.com/_resources/presentations/RIO_Corp_Presentation_Jan_2015.pdf
(6) http://www.dalradian.com/news-and-events/news-releases/news-releases-details/2015/Dalradian-Arranges-C113-
Million-Investment-With-Ross-Beaty/default.aspx
(7) http://bd-elec.cochilco.cl:8080/boletin-web/pages/tabla4/buscar.jsf
(8) http://www.thestreet.com/story/13025144/1/freeport-mcmoran-fcx-earnings-report-q4-2014-conference-call-
transcript.html?puc=yahoo&cm_ven=YAHOO
(9) http://www.nevadacopper.com/s/Presentations.asp
(10) http://gestion.pe/economia/mem-aprueba-estudio-impacto-ambiental-proyecto-tambomayo-2122060
(11) http://gestion.pe/empresas/buenaventura-evalua-venta-bonos-este-ano-2122037
(12) http://gestion.pe/economia/roque-benavides-inversion-minera-no-se-retrasa-precios-sino-tramites-y-temas-
sociales-2121952
(13) http://blogs.barrons.com/stockstowatchtoday/2015/01/26/yes-a-newmont-mining-barrick-gold-merger-still-makes-
sense/?mod=yahoobarrons&ru=yahoo
(14) http://www.incakolanews.blogspot.com/2015/01/cochilcos-copper-price-2011-to-2016.html
(15) http://www.lanacion.com.ar/1764767-cristina-kirchner-llego-a-marruecos-escala-previa-a-su-viaje-a-china-para-
atraer-inversiones
(16) http://www.diariobae.com/notas/55280-mayoral-inicio-su-agenda-en-china-la-espera-de-cristina.html
(17)
http://www.ecuadorinmediato.com:8080/index.php?module=Noticias&func=news_user_view&id=2818775525&umt=for
mulario_recoleccion_firmas_para_consulta_popular_sobre_mineria_en_quimsacocha_fue_entregado_por_cne
(18) http://www.ecuadorinmediato.com/index.php?module=Noticias&func=news_user_view&id=2818775614
(19) http://semanaeconomica.com/article/extractivos/152721-guillermo-shinno-el-nuevo-reglamento-ambiental-minero-
entrara-en-vigencia-en-las-proximas-semanas/
(20) http://www.rpp.com.pe/2015-01-30-lambayeque-comuneros-de-canaris-alertas-por-reinicio-de-actividades-mineras-
noticia_764877.html
(21) http://finance.yahoo.com/news/true-gold-provides-progress-karma-182500912.html
21

(22) http://www.panamaamerica.com.pa/cerro-quema-apuesta-de-la-mineria-para-aumentar-el-pib-962283
(23) http://www.marketwired.com/press-release/pershimco-files-its-environmental-social-impact-study-its-cerro-quema-
project-panama-tsx-venture-pro-1984049.htm
(24) http://www.pershimco.ca/i/pdf/ppt/presentation-january-2015.pdf
Stocks To Follow Closed Positions 2014
Closed in 2014 closed close price
Fortuna Silver FVI.to jan'14 C$2.80 23-dic-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-abr-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-ene-14 U$4.12 16.7% took profit
Bear Creek Min BCM.v may'14 C$1.63 23-mar-14 C$2.05 25.8% Took profit, sm near-term win
Eco Oro Min. EOM.to aug'14 C$0.48 22-sep-13 C$0.26 -45.8% sold small loser to make room
True Gold TGM.v sep'14 C$0.395 02-feb-14 C$0.41 3.8% M&A won't happen, sold
Santacruz Silver SCZ.v sep'14 C$1.04 26-ene-14 C$0.86 -17.3% silver/M&A spec, rel. small
Timmins Gold TGD nov'14 U$1.38 09-abr-14 U$0.99 -28.3% failed trade, sell, raise cash
Kinross Gold KGC nov'14 U$2.90 20-oct-14 U$2.15 -25.9% V small trade, didn't work, chau
Salazar Res SRL.v hold C$0.28 02-mar-14 C$0.145 -48.2% lost China sponsor
Stocks To Follow Closed Positions 2013
Closed in 2013 closed close price
USA Graphite USGT feb'13 U$0.93 08-ene-13 U$0.17 81.7% short tgt made/trade closed
Lachlan Star LSA.to feb'13 C$1.50 30-sep-12 C$0.95 -36.7% sold to reduce port risk
United Silver USC.to mar'13 C$0.21 28-oct-12 C$0.095 -54.8% small Ag sector trade, failed
Aurcana Corp AUN.v apr'13 C$1.07 11-nov-12 C$0.55 -48.6% closed on poor YE results
Gold Res Corp GORO apr'13 U$14.11 25-ene-13 U$9.38 33.5% short tgt made/trade closed
Marlin Gold MLN.v apr'13 C$0.075 10-feb-13 C$0.065 -13.3% closed trade
Bear Creek BCM.v may'13 C$2.58 01-abr-13 C$2.40 -7.0% near-term, time ran out
Lupaka Gold LPK.to may'13 C$1.12 23-oct-11 C$0.32 -71.4% towel thrown in
Tahoe Resources TAHO may'13 U$18.62 08-abr-13 U$14.70 21.1% took profit on ST short
OceanaGold OGC.to jun'13 C$3.03 16-sep-12 C$1.18 -61.1% sold on gold drop
IMPACT Silver IPT.v jun'13 C$1.14 13-ene-13 C$0.62 -45.6% sold on silver drop
Duran Ventures DRV.v jun'13 C$0.045 10-may-13 C$0.025 -44.4% ST trade never worked
Plata Latina PLA.v jun'13 C$0.79 10-abr-12 C$0.13 -83.5% closed
Bellhaven BHV.v jun'13 C$0.065 03-jun-13 C$0.12 84.6% closed ST trade
B2Gold BTO.to aug'13 C$3.07 28-nov-12 C$3.44 12.1% sold 1/2 to raise cash
Colossus Min. CSI.to aug'13 C$0.72 24-jul-13 C$0.79 9.7% closed thru nerves on future
Pretium Res PVG.to aug'13 C$8.20 11-jun-13 C$10.14 23.7% closed to raise cash
Bear Creek BCM.v sep'13 C$2.06 30-may-13 C$2.20 6.8% sold on pol risk decision
MAG Silver MVG oct'13 U$7.00 12-sep-13 U$5.62 19.6% near-term short
Gold Res Corp GORO oct'13 U$9.52 03-may-13 U$4.98 47.7% short tgt made, covered
AQM Copper AQM.v oct'13 C$0.31 16-oct-11 C$0.125 -59.7% closed failed trade
First Majestic AG nov'13 U$11.51 07-nov-13 U$10.50 8.8% v near term short, closed
Fortuna Silver FSM nov'13 U$4.00 07-nov-13 U$3.68 8.0% v near term short, closed
Primero PPP nov'13 U$5.70 07-nov-13 U$5.75 -0.9% v near term short, closed
Starcore Intl SAM.to nov'13 C$0.235 08-sep-13 C$0.17 -27.7% ST trade didn't work, sm loss
B2Gold BTO.to dec'13 C$2.22 28-nov-12 C$2.16 -2.7% closed ST trade to raise cash
22

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
23

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.
24