IKN #328Premium

The IKN Weekly
Week 328, August 23rd 2015
Contents
This Week: A big edition, Buying and adding, It's brighter for gold stocks.
Fundamental Analysis: Four purchases (LSG add, TGZ add, NGD buy, MAX.to buy, TGM.v
buy).
Stocks to Follow: Overview, New Gold (NGD), Lake Shore Gold (LSG.to) (LSG), Teranga Gold
(TGZ.to) (TGZ.ax), Midas Gold (MAX.to), True Gold (TGM.v), B2Gold (BTG) (BTO.to), McEwen
Mining (MUX) (MUX.to), Dalradian Resources (DNA.to), Lara Exploration (LRA.v), Phoscan Chem
(FOS.to), Starcore Intl (SAM.to).
Copper Basket: Overview, NovaCopper (NCQ.to).
Low Cost Producer Basket: Overview, Barrick (ABX).
Regional Politics: Burkina Faso: True Gold (TGM.v) community risk in better shape, Ecuador:
Loma Larga (ex-Quimsacocha) getting two referenda, Guatemala: Otto Pérez Molina may not
survive his term after all, A focus on the Guatemala Presidential election.
Market Watching: Alex Black's new gig, Trade Alert for fund manager/insto readers: Peru
stock market is a buy on this news, Almaden (AMM.to) (AAU) gets a permit, Insider selling at
First Quantum (FM.to), Starcore Intl (SAM.to) Q4 production numbers, Minera IRL (IRL.to)
(MIRL.L) Redux.
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
A big edition
This is an extra-big edition with a lot going on in it, so I'd like to take a couple of lines to point
out the main and most important features of IKN 328 today:
• My newly bullish outlook on the gold stock sector
• The call to buy or add on five stocks
• The two 'Regional Politics' pieces on the situation in Guatemala
• The ongoing saga at Minera IRL
Of course there's a lot more besides those four, e.g. the potential for a insto-sized trade on the
Peru stock market as from tomorrow, and I wouldn't have written any of the other pieces you'll
see below if I didn't think they were worthy of attention. But by way of navigation, those four
above are the key issues in IKN328.
Buying and adding
As usual when purchases and sales are part of the Weekly's contents, here a brief headsup
here at the top of the shop. I plan to deploy some of my sidelined cash this week in the
following trades:
• Adding to Lake Shore Gold (LSG.to) (LSG). I plan to make this the biggest purchase
of the four in cash terms.
1

• Adding to Teranga Gold (TGZ.to) (TGZ.ax). I plan to make this the second biggest
purchase of the four in cash terms.
• Buying New Gold (NGD) (NGD.to). This will be a smaller trade than the two additions
above. It's a low-exposure starter's buy, the veritable foot in the door.
• Buying Midas Gold (MAX.to). I've decided to be cute, buy a small amount of MAX.to
and play what I think will be the upcoming promotional push on the stock. This is the only
purchase of the four that I consider to be a near-term trade, one that I'd like to be out of
by the end of September at the latest (five weeks is my idea of near-term).
• Buying True Gold (TGM.v). This will also be a smaller sized purchase that's designed as
a near-term trade. The reasoning is found in 'Regional Politics' below.
Two buys plus two adds will mean that this time next week, the 'Stocks to Follow' list will have
16 components, one higher than my usual self-appointed maximum. As 1) it's not the first time
I've broken my own rule and 2) it won't be like this for long and 3) these days I'm carrying a
couple of longer-term tinycaps as 'Land Grab' plays that aren't much more than fallow, I can
live with that easily. The plan is not to spend all my sidelined cash, but buying five new
positions is obviously going to take a decent wedge out of my sideline cash. Details on the whys
and wherefores below.
It's brighter for gold stocks
This time last weekend, as I outlined some new optimism I'm feeling without committing any
further, came these words (offered by way of a mind-jog):
However the facts remain that:
1) I don't know what gold's going to do in the next 48 hours, let alone next month.
2) Long I am, but I want to keep cash available.
3) The rah-rah brigade have been wrong so many times it's very easy to tune them
out.
4) But if they turn out to be right, I'll jump on a little further down the line.
A week is a long time in both politics and markets. What we saw last week had some specific
differences from previous minor gold rallies and I think there's real reason to be cheerful about
the state of the market. As a result, I'm going to deploy some more cash into the precious
metals producer stocks plus one smaller punt on a new exploreco position (names above, a few
words on each one further down). This chart is telling:
2

We've seen plenty of occasions in the last months when a shock (or supposed shock that turns
out to be a bit of a damp squib) hits and gold doesn't react. This time it did, what's more it
reacted on new buying volume in the most liquid way Wall St has to get into the metal, GLD.
With the USD dollar fading in index terms, the world scrambled for an alternative safe haven
and remembered the barbarous relic. But equally as interesting, for me sitting in Latin America
at least, is the way the dollar only truly faded against the Euro/Pound/Swissie, the "other first
world currencies" because here in the regions of "commodity currencies" the dollar is still
strengthening rapidly. Here's a chart that shows how the Brazilian Real and the Colombian Peso
have dropped 10% against the dollar in the last month, the Chilean Peso by 6% and the
Mexican Peso by 4.85%. I didn't include the Peruvian Nuevo Sol on the chart because Yahoo
doesn't have the right numbers, but that's also moved from 3.08 to 3.27 versus the dollar in the
last month, a deval of 6.2%.
And that, ladies and gentlemen, is a serious drop in input costs for any mining operation
located in these places. As is of course oil, now back to the U$40/bbl level and a particular cost
help to open pit mining operations. To cut a long story short, what we're seeing is the onset of
a perfect storm for gold mining companies
1) The gold price is improving.
2) Operation costs are dropping in dollar terms.
3) The stock market is newly nervous about all its recent favourite
investment places and looking for a new place to put its money.
And that's why I'm making a significant move and adding to my gold stocks exposure this week.
Because at long last, this time it really is different.
PS: I had a few mails commenting on the sagacity of the little quote I stuck at the end of last
week's introduction,"You can achieve anything you want in this life, as long as you're willing to
let somebody else take the credit". The compliments alone show that it didn't come from my
limited brain, I accept no credit for it at all, just passing it on. As for the back-story of who said
it to me and why, it wasn't a mining person and it was nothing to do with mining. For more, sit
me in a comfy chair, buy me a coffee and if you catch me on the right day I'll tell you.
Fundamental Analysis of Mining Stocks
Five purchases
I was very glad to see the mining stocks turn down on profit-taking/broad market nerves
Friday. It's given me an opportunity to take positions in the next days at slightly better prices.
3

As stated in today's intro, here are the stocks I plan on buying as from tomorrow Monday and
in expect order of purchase size, too:
• Adding to Lake Shore Gold (LSG.to) (LSG).
• Adding to Teranga Gold (TGZ.to) (TGZ.ax).
• Buying New Gold (NGD) (NGD.to).
• Buying Midas Gold (MAX.to).
• Buying True Gold (TGM.v).
As is my normal way, I won't be buying at the opening bell and will wait to see how the market
feels and looks before committing, so if it takes a couple of hours or even a couple of days to
buy what I want to buy, so be it. Now for some notes on each company and why I'm adding or
buying.
General buy thesis overview
There's a case to be made for buying other mining company profiles than the one I'm zeroing in
on today For example:
• You could go for the more highly leveraged companies such as beaten down gold
explorecos (eg ATC, LYD, AMM, FPC, CGT host of others) that could bring very quick a
sizeable wins in a short time IF gold continues with strength and IF they start catching a
bid.
• You could go for the highly indebted producers (eg GCM, DMM, AUN, ATN) that will get a
big relief pop if people think they could manage to squeeze out of their (often self-
induced) financial straits thanks to gold coming to save them Cavalry style.
• You could go for small or very small gold producers (e.g. SAM, GPR, SCZ) that have
natural leverage on their tiny market caps.
• You could go for silver producers rather than gold (host of examples, you know them) and
bet that the gold/silver ratio starts favouring the "poor man's" option at last after quite
literally years of being beaten up against the real money metal.
All those are valid theses, but they're for somebody else. With the notable exception of the
exploreco Midas Gold (MAX.to), which is going to be the smallest purchase of the four and with
a strict, near-term profile, I'm going for gold (or majority gold) producers for my additions.
What's more, I'm allocating more cash to the less risky trades and keeping the entries into the
two new stocks, NGD and MAX, at a lower level because they're riskier.
I still think the sweet spot for investment right now, here today, is in the medium-sized gold
producer sub-sector of our weird and wonderful mining world, that's because I'm biased. On
the underlying metals side, gold has held its value better than any of the others, from the PGEs
to silver to copper and any decently traded base metal you'd care to mention. As it happens
that hasn't surprised me (and it's a pleasant change to be able to say I've called a macro issue
right for once, my record isn't great) because gold dances to a different beat than all other
metals. But it's still true and now it's reacting well, putting on its safe haven costume and
attracting nervous money. I see no reason to abandon gold just because it's outperforming
today, chances are it's going to keep outperforming for a while to come as the current market
circumstances suit it best.
Moving from the metals to their overlaying stocks, I've been more optimistic about the outlook
4

for the gold stocks than any other metals group and, so far at least, that call has been the right
one as well. Riskier plays have both their proponents and their champions, but I'm more than
happy about bolting on a more reasoned and measured sort of risk by going for names and
stocks I understand and ones that can better handle any unexpected reversal in the market
(because hey, I've been wrong before…). So to underscore something I think I've already made
clear but will tell you again, the main purchases next week are the top three names of
Lake Shore Gold (LSG.to), Teranga Gold (TGZ.to) and New Gold (NGD) because they
all fit into the category I most like today, the producing gold miners. Alongside those
three I'm also going to stick my neck out a bit and buy some Midas Gold (MAX.to) and True
Gold (TGM.v), but those two are 1) near-term 2) smaller sized positions and 3) more about
market mojo and/or psychology than their fundamental attributes. In fact, I'm not going to
dwell much on what they have and what they offer project or corp-structure-wise.
With the preamble done, here are notes on the five stocks into which I'm going to lay money in
the days to come.
Lake Shore Gold (LSG.to) (LSG):
In IKN325 dated August 2nd 2015, we updated on LSG. Our fundies thesis rests squarely on
the shoulders of that recent and fresh analysis, so I urge you to revisit that piece.
In both IKN325 and today, our current model for LSG assumes an average gold price of
U$1,100/oz that converts to CAD$1,450/oz on the forex (recall that we run the numbers on LSG
in Loonies, as it both operates in Canada and reports in that currency). However, the pop in
gold prices makes a significant difference to this stock, as for example a U$1,200/oz average at
current forex points to a CAD$1,580/oz average and would add around CAD$5.6m, or
1.3c/share, to operating profits. That would be more than enough to move the current 3q15
period from a small operating loss (due to the amount of exploration drilling we're currently
modelling for LSG at its 144/144 Gap etc zones, that kind of thing costs money) into a small
quarterly profit.
So on a strict ops point of view the company will benefit from gold's move fairly directly; the
U$1,100/oz number is very close to its current all-in breakeven price point and the nascent
positives about gold mean that there's leverage to be had. All good, the direct profits benefit
LSG will enjoy from our modestly higher gold price is a plus for sure, but it's not one of the two
main reasons why I'm adding LSG today:
1) I've never made any bones about the real reason to like LSG, its takeover target potential
and with Goldcorp (GG) at the head of that particular queue. I want to add more LSG because I
firmly believe in this thesis (no matter how tough it is to second-guess M&A action) and in the
psychology of capital markets, one of the windows most conducive to M&A action is a new
bloom of optimism after a prolonged period of negative sentiment, as it comes at a time when
assets are still at a hefty discount (at least according to the buyers' brains).
2) It's still cheap.
5

Those two charts above are offered as evidence, because although LSG has been one of the
few positive performing gold stocks in 2015 (LSG.to is up 47.4% YTD) and beaten most others,
it hasn't rallied in the same sort of out-performing way in the last ten days. I mean hey, it's run
with its peers and no complaints, but this one has extra star quality in 2015 and I'd expect it to
regain that momentum soon. At $1.15 it's a good place to enter and average up.
I've been looking for an excuse to buy more LSG, last week gave me that in spades. Adding.
Teranga Gold (TGZ.to) (TGZ.ax):
This is another stock that's fresh in the fundies memory, as we also looked at its recently filed
2q15 financials in IKN325 (same day as LSG). In that edition I spent more time on the TGZ
numbers than those of LSG, because it was Teranga that most impressed with its quarter
That weekend TGZ had closed Friday at CAD$0.61 and gold bullion at U$1098.40/oz. This
weekend TGZ is at the same CAD$0.61 but gold closed Friday at U$1156.50/oz (London PM
Fix), or if you prefer, this chart of
TGZ.to versus GLD:
At the time in IKN325, after considering
its 2q15 numbers and adjusting
projections, I came away impressed
(even surprised) at the cost control TGZ
was now showing. By way of a little
quote from the IKN325 report, "…my
investment thesis for TGZ was based
on a company with a profit "tipping
point" of between U$1,150/oz and
$1,200/oz gold. That now looks too
conservative and that's a good thing".
The other good thing at TGZ is its
balance sheet, which is looking strong
and under no sort of financial structural pressure (and by the way, the more you stare at TGZ's
new balance sheet position the more you realize that streaming deals can be genuine win-win
situations, both FNV and TGZ benefit from the terms of the deal they stuck and both sets of
management should be applauded). Lots of liquidity and all the cash they need for the late
2015 and 2016 organic growth plans. Further down the line there's the potential bigger growth
move that would need a capex injection, but as things are today TGZ is rock solid financially
and free cash flow positive operationally.
I'm going to include just one more thing from that IKN325 piece, that price sensitivity chart that
assumed on the 4q15 production numbers. Back then I was working at U$1,100/oz average in
3q15 and U$1.150/oz in 4q15 and basing my calculations on the 4q15 quarter and a forecast
gold production of 57,350 oz (FNV stream backed out):
4q15 metrics at different gold prices (all U$)
Gold price Revenues Gross profit Operating profit
$950 $54.5m $5.5m $-1.0m
$1000 $57.4m $8.4m $1.9m
$1050 $60.2m $11.2m $4.7m
$1100 $63.1m $14.1m $7.6m
$1150 $66.0m $17.0m $10.5m
$1200 $68.8m $19.8m $13.3m
$1250 $71.7m $22.7m $16.2m
$1300 $74.6m $25.6m $19.1m
assuming IKN 4q15 production forecast of 57,350 oz gold
6

With gold already above that U$1,150/oz level, we see how the increments work (around
U$2.8m or $2.9m extra revenue per quarter for every U$50/oz hike). Or crunched another way,
0.8c per share per quarter in operating profit. Annualize that, stick a reasonable 6X Price/Op
Earnings multiple on it, convert the forex, it's 24c per share on the stock price. And I'm quite
certain it's not been factored into this share price yet, not at CAD$0.61.
Ok, one more thing (seriously, go see the whole piece again, much better for you). Here's a
piece of the conclusion:
The takeaway? TGZ is in very good financial shape. All the cash it needs and operationally very
sound. It wouldn't like to work under a gold price of $950/oz but if that negative came to pass
this mine wouldn't shut up shop, it could continue to operate for literally years without cash being
crunched.
…
Conclusion: I've gone on much longer than I expected to with this TGZ analysis, but in the end
for good reason. This is a better and more efficient operation than even I suspected and its 2q15
numbers show that clearly. With the production growth coming soon it will be able to stand
current (or even lower) gold prices and still remain profitable and the current market cap makes it
look a snip.
If you want a first-line stock that will benefit from a rebound in gold, look no further. Rock solid
financials and a lot going for it operationally. And darned cheap.
It's that very last bit that has me buying today (or at least the thinking behind it). Even though
gold's rallied over 6%, TGZ is the same price as it was and I think that's a tremendous bargain
under these more optimistic circumstances. That's why it's one of the ways in which I'm adding
to my gold exposure next week.
New Gold (NGD) (NGD.to): We took a careful look at New Gold (NGD) (NGD.to) in the NOBS
fundamentals analysis report in IKN321 dated July 5th 2015. That analysis is still good to go at
seven weeks old so again, in the same manner at LSG above I ask you to revisit that edition for
the necessary bones and investment thesis of this stock. What I will do here by way of
reminder (because I know most of you quite rightly won't bother to go find IKN325 and open it,
then read all that boring fundies guff about this company again) is to repeat the conclusion of
the analysis on the stock that day
To sum up, what NGD offers today is an interesting way to play leverage on gold, because its
current share price level is no reflection on a solid reputation and structure, good operations (or in
New Afton very good), strong project pipeline and amore than reasonable looking corporate
financial position. As should be clear by now I'm not charging out and buying anything on a whim
right now, things have to pick up in the sector before I deploy any new money so I'm no buyer of
NGD, not yet anyway. But it has the makings of a rebound play and would surely be one of the
first to make a move back up if the market decided to perk. In one sentence, NGD offers good
assets at a cut price, but when that price changes for the better is unknown.
Reasons to like NGD today: There are plenty, but first is the leverage it brings thanks to the
changing backdrop for gold. I'll point
you to the full NOBS report in IKN321 NGD: Quarterly Earnings Overview
240
for more on that, but include just one 220
ops chart here from that report as a 200
snapshot or memory jog (right). 180
160
140
No matter what NGD does or does not 120
100
claim as its cash cost per ounce, the 80
bottom line is that there's a big 60
40
distance between its revenues number
20
and its mine operating earnings 0
number. We'd modelled that to
continue in the quarters to come, so
any $50/oz or $100/oz you add to the
7
31q1 31q2 31q3 31q4 41q1 41q2 41q3 41q4 51q1 51q2 tse51q3
$m revenues
op-ex
Mine Op Earnings
source: company filings/IKN ests

gold price makes a sizeable difference to margins.
Second, I really like how NGD is dependent on open pit mining economics (the recent oil and
forex moves are big helps). NGD is exactly the type of company that will benefit from the
changes in relative value of the US Dollar and oil.
Next, I like the organic and obvious growth pipeline it brings to the table, mainly via Rainy River
but in the background there's the free-carry 30% of El Morro in Chile (if Goldcorp wants it they
build it).
Next, I really like the low asset prices being factored into NGD's share price and to illustrate
this, here's the price/book value ratio chart we
used in IKN321, updated to this weekend: 2 NGD: Price/Book ratio
1.75
I mentioned seven weeks ago and I'll say it again 1.5
here that NGD does have some fat on its fixed 1.25
asset carrying values and could take some 1
impairments, but even with that considered the 0.75
current 0.52X ratio is cheap and leaves a lot of 0.5
room for a rally. I wouldn't bat an eyelid to see 0.25
that return to 0.75X and that would imply an 0
approx U$3.35 share price. That's 44% higher
than this weekend.
And a final like is something that hasn't changed: NGD is run by "big boy" names in the
Canadian mining world (Oliphant and friends) so it's guaranteed to get the type of sycophantic
coverage that the Canadian houses do…and oh my they do so well.
Reasons to dislike NGD today: There are two main drawbacks in an investment in NGD at
this present time and neither can be talked down or mitigated. They're there, you consider
them as-is and afterwards consider the stock on its true merits. The first one is the amount of
exposure its revenues has to copper and this pie
chart gives you the story nicely. For example, in
2q15 $58.9m of its $167.7m in gross revenues
came from copper and it produced 23.6m lbs Cu
(mostly from the excellent New Afton mine
asset). If you start lopping 10% off the gross
revenues from its copper by-product, that's going
to counter a lot of the gains made by gold.
The other negative is less pressing in my book
but needs a line or three. There's the debt pile
that's out there with maturity in 2020 and 2022,
the type of timescale that gives room to breathe
but it's a still a latent threat. See IKN321 for more.
Overall, the current market set-up looks
good for NGD and I envisage it rallying nicely
towards the U$3 level. I'm going to take a piece of
that and will hold as long as gold keeps up its
current rebound. However be clear that I consider
this stock to be riskier (leverage etc) than LSG or
TGZ so if the market reverses, I won't have an
issue about dumping it quickly and taking a loss.
8
21q4 31q1 31q2 31q3 31q4 41q1 41q2 41q3 41q4 51q1 51q2 won
source: company data, NYSE, IKN calcs
NGD: Consolidated Metals revenue mix
2013 and 2014 aggregate
Ag, 4.10%
Au, 61.10%
Cu, 34.70%

Midas Gold (MAX.to): I'm not going to dwell a long time on this call or stock. As noted last
week in IKN327 it was still tempting me and its price chart action suggested a slow build of
momentum was going on. That continued last week and though it closed the weekend at 39c,
its real trading price is now 40c (I'll be happy to buy at that level).
However, the real reason to buy MAX.to this week is contained in IKN325 and rather than beat
about the bush I'm going to repeat that piece here today, the only change being the removal of
the price chart that's now out of date:
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Midas Gold (MAX.to): September 18th 2015 is a date for the diary
The effective date of distribution for the big (well, in 2015 terms at least) CAD$8m placement ran
by Midas Gold (MAX.to) earlier this year at 42c was May 20th (23) which means that the 19.1m
shares, along with their 9.56m half warrants (priced at 60c, valid for two years) printed in the
deal become free trading on Friday September 18th. That's now less than six weeks away, so this
is your first headsup on a likelihood of a Vancouver promo pump job in the making. What's
particularly interesting about this set-up:
1) The size: The $8m placement run by MAX.to is chunkier than most, the right size for the
promotion world to be interested.
2) The timing: The shares and warrants come out of escrow just a couple of weeks after US
Labor Day, traditionally the point where people in the North turn away from vacation life and get
back to serious work. The end of the doldrums period, in other words.
3) The recent newsflow. Or lack of, because there has been virtually nothing from MAX.to.
News releases since May 20th have been minor and we haven't even had an update of the
corporate presentation since April (24). This is a company deliberately in hibernation.
4) Price support. Yes we're down from the 42c placement price, but the 34c we see in MAX.to
this weekend isn't that much of a drop compared to the carnage we've seen in other junior
mining issues in the June and July period (no need to remind this audience about that).
5) The project and company. Unlike many other pump jobs, we can at least look at Midas and
its main Stibnite project and say there's plenty of substance there, it's a fairly decent junior
prospect that has received thumbs up from several serious mining professionals that I trust (e.g.
Brent Cook likes the thing's chances of becoming a profitable mine one day). Today's headsup
isn't really the place for a detailed look (we're about the pumpo here) but I'd direct you to that
April 2015 corporate placement again (24) for a decent overview of what it's all about. What also
plays to the promo pump set-up is the estimated timeline to construction and production because
this Idaho-located project still has plenty of permitting hoops to jump through in order to become
an operation, which leaves a relaxed timeline to pump it up at the moment without treading on
the toes of a real mine and its objectives.
6) The people who bought the placement. There were a total of 83 persons (natural or
judicial) who took parts of the placement and in among them are many that are involved in the
typical Canadian pump job. There are more promo and insto names on the list of placement
takers (23) than you can shake a stick at, but by way of a sample...
• M&G Investment Management of the UK ($1m of the placement)
• Sun Valley Gold Master Fund ($412k of placement)
• Jeff Phillips of Global Market Development ($126k of the placement), who also earned $91k
in finder's fees so there are plenty inside his sphere also in this deal
• Casey Research via its KCR LLC fund (25) ($420k of the placement), run in cahoots with
Rick Rule and his entourage.
• Marin Katusa ($42k of the placement)
• Plethora Precious Metals of The Netherlands ($84k of the placement)
• Sprott Funds via Exploration Capital Partners fund ($840,000 of placement)
• Kitco Gibson ($21,000 of placement)
All those and more with most of those less interested in the long-term wellbeing of the Stibnite
property and more interested in the near-term lining of their back pockets. Between them, noise
is bound to be made and we also note with interest that MAX.to was one of the lunch sponsors at
last week's Sprott/Stansberry conference, where those present got a plate of food while they
watched the company present and pitch.
It's never easy to guess when the promo pitch artists will hit the green light on a pump. It may
come before the September 18th/19th escrow date, it may come afterwards. If I had to bet I'd
9

say slightly before (the timing with Labor Day is unlikely to be a coincidence) and the other
matter here is what gold the metal will do in the meantime.
I think there's a trade on the back of these people at some point, though. If MAX is hanging
around at its current sub-40c levels come the end of August, stealing some of the pump's fire for
ourselves may turn out to be a profitable trade over the course of three or four weeks.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
IKN328 back. So I've decided to be cute and try to second-guess a large pumphouse. I may
turn out to be wrong on this and the
Casey/Stansberry/WhoeverElse industry doesn't
get behind this thing. If so I'll walk away with a
lesson learned. But I'm going to hold a few of
these through the period from now to mid-
September to see if this theory works out.
This is a small trade and will be closed come
the end of September, come what may.
True Gold (TGM.v): This is also going to be a small, near-term trade rather than the type of
gravitas I'm placing on the LSG/TGZ/NGD purchases. For the explanation, please see "Regional
Politics" below.
Stocks to Follow
We all know what gold did last week, so thanks to that it was a winning week for the portfolio
but it needs a word here to say that it was far from automatic zoom upwards for the list and in
individual terms, the performance was patchy. However thanks to the impressive rally in our
Top Pick B2Gold the week was a clear winner where it really matter, back pocket dollar terms.
We had six stocks make gains (BTO.to, LSG.to, TGZ.to, LGN.v, FCV.v, REG.v), two stay
unchanged (ATM.v, LRA.v) and five take a weekly loss (MUX, SAM.to, FOS.to, DNA.to, IRL.to).
Best percentage performances came from Legend Gold (LGN.v up 14.3%) and B2Gold (BTO.to
up 13.5%). No prizes for guessing which one of those I liked the most.
We currently has 13 open positions in our 'Stocks to Follow' list, two less than our self-imposed
maximum number. Still only three in the green and the other in the red (and some heavily so),
but at least we're moving in the right direction now.
10

company Ticker this week Avg Price Reco date Current PPS Gain/Loss% Notes
TOP PICK
B2Gold BTO.to STR BUY C$2.17 12-sep-14 C$1.68 -22.6% Top Pick, 1st tgt $2.70
Metals Producers (in current order of preference)
Lake Shore Gold LSG.to str buy C$1.04 07-apr-15 C$1.15 10.6% Will be bot out, bullish
Teranga Gold TGZ.to str buy C$0.55 15-feb-15 C$0.61 10.9% Good prod. 83c tgt
McEwen Mining MUX hold U$1.09 25-jan-15 U$0.92 -15.6% Recovering from lows
Starcore Intl SAM.to spec buy C$0.12 10-jan-15 C$0.105 -12.5% Also "land grab", tgt 19c
Land Grab Stocks (in current order of preference)
Phoscan Chem FOS.to hold C$0.28 29-mar-15 C$0.26 -7.1% 36c/share of cash, can add
Atacama Pacific ATM.v hold C$0.19 26-apr-15 C$0.145 -23.7% Spec buy, cheap adv proj
Legend Gold LGN.v hold C$0.085 01-mar-15 C$0.04 -52.9% Spec buy but v small trade
Lara Expl. LRA.v spec buy C$1.15 08-apr-12 C$0.25 -78.3% solid biz model, LT hold
Other Recommended Stocks (in current order of preference)
Dalradian Res DNA.to hold C$0.64 27-oct-13 C$0.90 40.6% Nov'14 tgt $1.25, top Au expl
Minera IRL IRL.to spec buy C$0.195 22-jul-12 C$0.07 -64.1% Another add, key AGM this wk
Focus Ventures FCV.v spec buy C$0.23 01-jul-12 C$0.20 -13.0% tgt 50c, 3q15 PEA
Regulus Res REG.v spec buy C$0.30 06-apr-15 C$0.27 -10.0% Bet on 2016 drill prog.
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
Fortuna Silver FSM mar'15 U$4.12 10-nov-14 U$3.75 9.0% Short used as hedge
GoldQuest Min. GQC.v mar'15 C$0.26 27-oct-13 C$0.085 -67.3% given up ghost
Rio Alto Mining RIO.to apr'15 C$2.30 07-apr-11 C$3.57 55.2% Top pick, bot out, big win
Timmins Gold TGD jun'15 U$0.60 19-apr-15 U$0.62 3.3% near-term trade, out of time
First Majestic AG jul'15 U$10.51 10-aug-14 U$4.55 56.7% horrible failed trade
NovaCopper NCQ.to jul'15 C$1.05 09-apr-14 C$0.50 -52.4% no more Cu exposure, sm sell
McEwen Mining MUX aug'15 U$0.695 21-jul-15 U$0.92 32.4% Closed nearterm flip for win
2009, 2010, 2011, 2012, 2013 and 2014 closed positions in appendices below
Now for some notes on current basket stocks.
New Gold (NGD): Buying starter position. A quick line here, with the main reasoning
above in 'Fundamentals…'. Please note that for my own portfolio reasons I'll probably use the
US ticker for the purchase.
Lake Shore Gold (LSG.to): Adding. See above for more.
Teranga Gold (TGZ.to): Adding. See above for more.
Midas Gold (MAX.to): Buying for near-term flip. Again a simple line, again more details
above.
True Gold (TGM.v): Buying for near-term flip. Again a simple line, but for the details this
time check out 'Regional Politics' below.
B2Gold (BTG) (BTO.to): As pictures paint (or save having to read) a thousand words, here's
a picture of the last ten days in BTO:
11

That's a very pleasing week's worth of share price action in BTO. What we see there fits very
closely with my thoughts in last week's note on the company too, that it went through an
understandable selling day on its 2q15 numbers (and not that they were bad, either). The
reaction last week was as close to optimum as I could have hoped and reaffirms all my
thoughts on this as a Top Pick and (by quite some way) largest holding.
And now something different for you on B2Gold, which almost went in the 'Regional Politics'
section below but in the end I've stuck it here, even though it's quite long. I noticed an article
doing the rounds in the Nicaragua press on August 20th and 21st (eg here (1) all about the El
Limón mine, its production targets for 2015, how much B2Gold has invested there, all with
suitable sound bites from the B2 country manager. It didn't contain any new news for us the
investment watchers so I wasn't going to mention it, but I thought it interesting and positive (I
suppose) that a pro-mine puff-piece should show up in the Nica press.
But then came a second very-pro-B2 report in the Nicaraguan press on August 21st and 22nd
(e.g. here (2)) which did a good job of reporting on the small businesses that have
mushroomed around the B2Gold mines in the country, with emphasis placed on the job creation
and social programs run by B2 around its Libertad mine. It included matters such as
• B2Gold has helped locals set up 59 small businesses
• The company provides interest-free loans for start-ups, basically micro-credit revolving
loans for capex matters that are then paid back to a central fund on an agreed timescale)
when paid back, the cash can be allotted to the next start-up)
• The company gives training in running a business (book keeping, self-esteem classes, all
sorts of other support programs)
• A total of nearly 500 people have benefited from the program so far, with 313 of those
living around the Libertad mine.
We then got three examples of the small businesses that have been set up:
• A water purification business that now employs 81 people
• A business selling milk, which started in 23014 and now provides 6,000 litres of quality
controlled milk to locals
• A cafeteria near the mine, which provides economic lunchtime meals
It was interesting stuff and certainly positive for the image of B2Gold in the country of
Nicaragua, but let's be cleat that two such pro-B2 puff pieces in a week is not a coincidence. It
may be the movements of a well-planned marketing campaign, but I like to see this type of
thing and consider it wholly positive. It also reminds me how B2Gold has always enjoyed
institutional support in the country of Nicaragua, which is often connected to the strong support
12

given it by the country's President Daniel Ortega.
Other mining companies should take note of two things: The good job that B2 does with its
marketing side of community relations, plus the welcoming pro-mining atmosphere in Ortega's
Nicaragua.
McEwen Mining (MUX) (MUX.to): For a while on Thursday it looked as though Rob
McEwen's dreams would come true,
MUX was about to break through the
U$1.00 barrier in style and start its
surge towards is approximate guess
$1.50/share level.
But Friday nipped his (and my)
reveries in the bud and come the
week's close MUX had managed to
lose a penny rather than gain several.
Not to matter, nor is it a big issue that
I missed out on selling the trading
block at my pencilled-in U$1.00 level,
because the good things far outweigh
the negatives in recent trading. MUX
is back, getting attention (and my,
Rob loves attention) and making gains for traders.
Dalradian Resources (DNA.to): After the write-up I gave DNA last weekend, in which I
called it a decent hold but now in need of a capital injection to complete its 2015 and 2016
expanded exploration and feasibility study, it didn't come as a shock to see DNA
underperforming on the week. Not pleased, but not shocked.
Another non-shock was to see other analysts coming to the same conclusion. The note written
by Adam Melnyk of National Bank to his clients dated August 17th was a case in point (and yes,
glad I got mine out a day before, thanks for asking), in which Melnyk dropped his target price
from CAD$1.30 to CAD$1.20 (mine's at CAD$1.25, therefore we basically agree) and wrote
these as his front page bullet points:
On Aug. 17, Dalradian released an update for its 100%-owned Curraghinalt gold project in
Northern Ireland.
• The PFS (pre-feasibility study) expected in late 2015 for the project will now be fast
tracked to a feasibility study for release in 3Q16. Based on the technical work
completed to date, Dalradian decided to upgrade the planned PFS for Curraghinalt to a
DFS (definitive feasibility study). We continue to view the examination of paste backfill and
dry stack tailings positively as this should help to simplify the permitting process by
reducing the proposed project footprint.
• Submission of planning application in 3Q16. During 3Q15, Dalradian acquired some of
the required surface rights for a potential mill site in proximity to the main deposit. The
company expects to complete additional land acquisitions over the balance of 2015. As
surface rights are required prior to the submission of a planning application to assess the
project footprint, land acquisitions appear to be progressing slower than implied by the
previously expected submission date of early 2016. Combined with the change in scope to
a full feasibility, this has delayed the anticipated permit submission date to 3Q16 (from
1Q16).
• Underground program has been expanded to include additional infill drilling and
stope development to support the feasibility study. This program is expected to cost
Cdn$45.2-51.2 mln from July 2015 to December 2016. Dalradian currently has Cdn$36.1
mln in cash and will require financing to complete this program.
• Maintaining Outperform rating. In our model, we delayed our project start-up date to
2021 (from 2020) and introduced a Cdn$30 mln equity financing assumption (at
Cdn$1.00/share). We also increased our NAV target multiple to 0.8x on Curraghinalt (from
0.7x) as a result of the receipt of an explosives permit, and the de-risking of the Northern
13

Ireland regulatory framework given the Galantas Gold permit approval near Curraghinalt.
Our target price is trimmed to Cdn$1.20 (from Cdn$1.30). Our Outperform rating on
Dalradian is unchanged, which is predicated on Curraghinalt’s high-grade and a supportive
regulatory framework in Northern Ireland. On P/NAV, DNA trades in line with the peer
group average at 0.63x vs 0.65x.
The only gripe I have about all that by Melnyk is the top bit, as DNA filed its quarter on Friday
August 14th and there was no need to wait for their news release on the 17th, it was already
all out there. Apart form that, it was good to see a take that closely matches IKN's (even if the
anal yst is ex-Canaccord ☺ ).
Lara Exploration (LRA.v): Some insider trades are more interesting than others. Over the
last two weeks, company chairman and CEO Miles Thompson has added a total of 100,000
shares of LRA to his personal holding of LRA (3).
He now owns 2.515m shares of the company. It's worth considering three things related to this
snippet. Thompson is:
1) A successful mining businessperson, who knows South America and the way it works well.
He's also hit big recently thanks to the success of his other company, Reservoir (RMC.v).
2) A long-term planner, who obviously sees this as the moment to buy into beaten down "Land
Grab" shares such as his own LRA. I think he's right.
3) One of the good guys in the industry. In a world of backstabbers and two-faced self-interest
merchants, the good'uns tend to stand out like beacons. Thompson is one of them and his way
of doing business, as well as being successful, deserves support. I'm all for weeding out the
bad guys from this most sordid of sectors, but an alternative route to success (and wealth)
needs to be offered to the world, to stop those entering from the call of the dark side.
Also recommended is the interview Thompson did with Tekoa da Silva of Sprott that I also
stuck on the blog yesterday Saturday (4) (5). Here's a segment from the script that is worth
highlighting here, as it's very similar to your author's 'Land Grab' philosophy*:
Personally, I’m hoping a little bit longer, because I’ve got a lot of stuff I would like to do
while things are still cheap.
@..
I think this is an excellent time to buy. I think there are two things that you really need
to understand, however, as you make your choices of what to buy. One is survivability.
There are lots of companies in the resource space that may not survive the next three
years. So you need to look very carefully at the way the business is structured. Will it
be strong enough to survive? And the other thing to understand is that I believe the
next bull market is three to five years from now.
So you cannot buy expecting to re-evaluate your position once a quarter for the next
12 months and decide when to sell. For bets that you take now, you need to
understand that you’re going to have to hold for a little while.
What I am personally doing is more on the asset side. I have bought a few remarkably
good value shares over the last year or so, but I don’t manage a fund of money. I have
a little bit of my own money that I am able to speculate with – but what I’m trying
primarily to do is add assets to the companies that I run. So I’m looking at projects. I’m
looking at, if you will, exploration real-estate that is currently very, very cheap (or free)
in this market.
I'll say it before and I'll say it again: I have a lot of patience for Lara Exploration, big bagholder
14

paper loss or not. My issue is whether to add some now or put money to work somewhere else.
Phoscan Chem (FOS.to): FOS.to dropped again, this time by just half a cent though volumes
remain higher than normal with just under 500k shares traded on the week, that's pretty
sprightly for this stock. And the reasoning behind the drop is the same as that of last week; it's
fairly logical that a defensive play such as this wouldn't gain much attention in the newly
buzzing (well, perhaps 'gently humming' would be better) and speculative juniors market.
I did note last week (I'm damned if I can remember where, think it was a NEX stock) of a
company that after running a strategic review decided to de-list and pay out a distribution of
assets to its shareholders. Thoughts of FOS crossed my mind when reading that, as FOS is
doing the same type of review and if the slightly disgruntled major holders (eg Sprott) lose
patience, they could force the same situation onto Stephen Case and his company. With net
assets all liquid and around CAD$0.35/share, that type of outcome would cause an immediate
pop as the arbitrageurs moved in.
Starcore Intl (SAM.to): Last week SAM published its 4q15 production numbers and we take
a look at the main things in a longer note in 'Market Watching' below. As for the price action
SAM rallied a little but never looked like breaking up to 12c and beyond before falling back with
the pack on Friday.
The Copper Basket
After thirty-four weeks of 2015 The Copper Basket is showing a 28.98% loss to level stakes.
company ticker price 1/1/15 Shares out Market Cap current pps gain/loss%
1 Capstone Min. CS.to 2.03 381.95 267.37 0.70 -65.5%
2 Reservoir Min. RMC.v 3.96 47.55 191.63 4.03 1.8%
3 NGEx Resources NGQ.to 1.17 187.71 114.50 0.61 -47.9%
4 Nevada Copper NCU.to 1.65 80.5 94.19 1.17 -29.1%
5 Copper Fox CUU.v 0.135 402.96 68.50 0.17 25.9%
6 Amerigo Res ARG.to 0.27 173.65 44.28 0.255 -5.6%
7 NovaCopper NCQ.to 0.58 60.15 40.90 0.68 17.2%
8 Western Copper WRN.to 0.68 93.68 37.47 0.40 -41.2%
9 Hot Chili Ltd HCH.ax 0.16 333.11 34.98 0.105 -34.4%
10 Panoro Minerals PML.v 0.295 220.64 25.37 0.115 -61.0%
11 Regulus Res REG.v 0.35 56.39 15.23 0.27 -22.9%
12 Metminco MNC.ax 0.008 2650 11.93 0.0045 -43.8%
13 AQM Copper AQM.v 0.06 141 6.35 0.045 -25.0%
14 Coro Mining COP.to 0.045 159.37 3.98 0.025 -44.4%
15 Catalyst Copper CCY.v 0.305 31.41 3.93 0.125 -59.0%
NB: HCH.ax & MNC.ax priced in AUD$, rest CAD$ Portfolio avg -28.98%
The overall basket dropped a little and is at a
new 2015 low but as the chart right shows, 5% The Copper Basket 2015, weekly evolution
the real message is how it's managed to 0%
level off at this new low level and not -5%
deteriorate much further. Yet. -10%
-15%
There were six component stocks that made -20%
gains (NGQ.to, CUU.v, ARG.to, NCQ.to, -25%
REG.v, CCY.v) and the other nine were losers -30%
(CS.to, RMC.v, NCU.to, PML.v, WRN.to, -35%
HCH.ax, MNC.ax, AQM.v, COP.to). Best
percentage performance by far was
15
ht4naj ht11 ht81 ht52 ts1bef ht8 ht51 dn22 ts1ram ht8 ht51 dr32 ht92 ht5rpa ht21 ht91 ht62 dr3yam ht01 ht71 ht42 ts13 ht7nuj ht41 ts12 ht82 ht5luj ht21 ht91 ht62 dn2gua ht9 ht61 dr32
source: IKN calcs

NovaCopper (NCQ.to up 30.8%), meanwhile there were a whole bunch of 10%+ losers in the
mix, headed by Coro Mining (COP.to down 16.7%) and followed by Western Copper & Gold
(WRN.to down 13.0%), Hot Chili (HCH.ax down
12.5%),
Price action for copper was a case of the metal
trying its best to hold the U$2.30/lb line (in fact
the one that's probably more important
psychologically is U$2.267/lb, because that's
U$5,000 per tonne and that the unit of
measurement on the LME). Briefly on Wednesday
copper broke through that $5k/t level for the first
time since the 2008/2009 financial crisis. As you
should be aware by now, I still think copper's got
lower to go.
Now for the regular weekly inventory bullet
points with data as usual from the excellent
Cochilco site:
• Total world copper stocks went up modestly, repeating last week's result. Stocks moved
by 5,864 metric tonnes (mt) (+1.2%) and saw them finish the week 508,182mt.
• Shanghai Futures Exchange stocks were up again, this time a small but habit-forming
2,762mt (+2.3%) to finish at exactly 124,020mt. Another bear signal from the SHFE
warehouses, but it's fair to say that by now everybody has the message.
• At the LME, copper stocks rose by their own modest 3,500mt (+1.0%) 353,825mt.
• Comex warehouses dropped by a slight 398mt to 30,337mt. No biggie.
Here's the key Shanghai-only tracker chart and the slow return of stocks to the SHFE continues.
The acid test will come in September when the Northern world gets back to work.
Shanghai Futures Exchange Warehouse Stocks, 2014/2015
260000
240000
220000
200000
180000
160000
140000
120000
100000
80000
60000
16
31'13ceD ht21 ht62 ht9 dr32 ht9 dr32 ht6rpa ht02 ht4yam ht81 ts1enuj ht51 ht92 ht31 ht72 ht01 ht42 ht7 ts12 ht5tco ht91 dn2von ht61 ht03 ht41 ht82 ht11 ht52 ht8 dn22 ht8 dn22 ht5rpa ht91 dr3yam ht71 ts13 ht41 ht82 ht21 ht62 ht9 dr32
Mt Cu
source: Cochilco
A comment on just one this week:
NovaCopper (NCQ.to): Since I dumped my position in NCQ it's managed to put in a bit of a
price rally, this weekend at 68c and one of only three stocks in the basket that's showing a
profit on 2015. So am I annoyed about having sold? Nope, not at all.
The comparative chart (to the copper producer's ETF, COPX) below shows the upmove in NCQ
but it's also been against the grain of the sector and on low volumes. We've seen this type of
action in NCQ previously, where it's walked up on low volumes only to collapse back again, so
as there's nothing in the way of news from the company it looks the same type of artificial

promo pumpette.
The Low Cost Producer Basket
After 34 weeks, the 2015 Low Cost Producer Basket is showing a 17.62% loss to level stakes.
company ticker price 1/1/15 Shares out Mkt Cap (Bn) current pps gain/loss%
1 Goldcorp GG 18.52 830 12.86 15.49 -16.4%
2 Newmont NEM 18.90 528.08 9.60 18.17 -3.9%
3 Barrick ABX 10.75 1164.67 9.33 8.01 -25.5%
4 Franco Nevada FNV 49.19 156.5 7.24 46.29 -5.9%
5 Agnico Eagle AEM 24.89 214.12 5.61 26.19 5.2%
6 Silver Wheaton SLW 20.33 403.75 5.48 13.57 -33.3%
7 Kinross KGC 2.82 1146.2 2.37 2.07 -26.6%
8 Buenaventura BVN 9.56 254.19 1.78 7.02 -26.6%
9 B2Gold BTG 1.62 926.68 1.19 1.28 -21.0%
10 Pan American PAAS 9.20 151.64 1.08 7.14 -22.4%
all prices in U$, using NYSE ticker prices Portfolio avg -17.62%
Nine basket stocks put in gains, but notably there was a loser too as Silver Wheaton (SLW) lost
two cents on the week and failed to join in the big gold pop party. To counter that, we're back
with a small splash of green on the
The Low Cost Producer Basket: Weekly performance
screen as Agnico Eagle (AEM) managed
30% and comparative to GDX control
to crawl back into positive territory on
20%
the year, the first to do so after the big
slump. The best performer of the lot is 10%
also a piece of good news, as my 0%
personal Top Pick B2Gold (BTG up -10%
12.3%)) managed to rally harder than -20%
all the others. Then Agnico (AEM up -30%
10.5%) got second place and a very -40%
honourable third spot goes to Goldcorp
(GG up 8.4%), which rallied hard for
the size of company it is.
17
ts13ceD ht4naj ht11 ht81 ht52 ts1bef ht8 ht51 dr42 ts1ram ht8 ht51 dr32 ht92 ht5rpa ht21 ht91 ht62 dr3yam ht01 ht71 ht42 ts13 ht7nuj ht41 ts12 ht82 ht5luj ht21 ht91 ht62 dn2gua ht9 ht61 dr32
basket
gdx control
source: Google Finance, IKN calcs

Low Cost Basket: Percentage difference between
3.0% basket and GDX control, 2014
2.0%
1.0%
0.0%
-1.0%
-2.0%
-3.0%
-4.0%
18
ts13ceD ht4naj ht11 ht81 ht52 ts1bef ht8 ht51 dr42 ts1ram ht8 ht51 dr32 ht92 ht5rpa ht21 ht91 ht62 dr3yam ht01 ht71 ht42 ts13 ht7nuj ht41 ts12 ht82 ht5luj ht21 ht91 ht62 dn2gua ht9 ht61 dr32
|
source: ikn calcs, NYSE/Nasdaq data
Here's a different way of considering the PM producer rally (relief or otherwise) with our ten
basket stocks set against GLD (the black line at the bottom) for the last two weeks of trading.
There have been clear winners and losers, with at the bottom of the pile Silver Wheaton (SLW)
which finds itself under-performing gold itself; so much for the leverage advantage for miners.
But the best over the two weeks is B2Gold (BTG) which stands to reason thanks to its relatively
smaller size and growth aspect, as well as having rallied from a very low point. But it's also
good of course, as I own some.
Barrick Gold (ABX): Once again commentary on specific basket stocks is minimal this week
(and to repeat, I fail to see what edge I can bring to the table with stocks that are widely
covered by dedicated anal ysts). What I would like to do is point you in the direction of the four
minute interview that BNN did with Macquarie's head analyst Ron Stewart, who's made the
ballsiest and best calls on the company this year (see editions passim).
You'll find the link to the interview at (6) in the appendix below. Aside from the concise nature
of the Q&A and the way in which Stewart covers all the main points well, it's refreshing to see
the call based on the underlying fundies of ABX, specifically its liabilities position. Stewart
recently upgraded ABX from sell to hold (I agree with that one) and also says that although
ABX could outperform peers if gold gets to U$1,200/oz, he prefers Goldcorp (GG) over ABX as
things stand (also agreed). Well worth a look.
Regional politics
Burkina Faso: True Gold (TGM.v) community risk in better shape
An interesting report from Burkina Faso's media source 'El Faro' on Wednesday, which has

covered the trials and tribulations of the True Gold (TGM.v) Karma project (via its wholly owned
subsidiary Riverstone S.A) better than just about anywhere else. The report (7) starts this way
(my translation):
In January 2015, the populations affected by the Riverstone Karma S.A. near
Namissuiguima overran the company's installations. Today, the two sides
seem to have smoked the peace pipe. Even better, they have decided to work
together in a transparent manner in order to avoid any other eventual crisis. In
relation to this, a community guidance and liaison committee was set up on
August 15th. This new structure consists of 80 members representing 36
localities in the Yatenga province that are impacted either directly or indirectly
by the mining activities of the project. The committee also has 12 observers.
It then continues by giving plenty of detail about the committee's composition and how the first
formal meeting went (hack: pretty well).
TGM dropped the ball big-time in 2014 and early 2015 on its community relations and paid a
heavy price for doing so (once again IKN reminds you how important this factor is in 21st
century mining matters, it'll kill a project as effectively as bad geology, metallurgy or
engineering if you foul up), but after firing the previous company chief and putting in place a
new and obviously better community relations team, plus making peace with the important
religious leader (the Chiek) at the nearby Mosque town of Ramatoulaye, they've got their
community relations back on track.
I'm not the biggest fan of this project by any means, I think there's still room for political risk
upsets and from what we've already seen, anything can happen at any time in the region either
during construction on in the years of operations. But credit where due, the company seems to
have turned around a potential mine-killing situation and got its construction and development
back on track by doing good remedial work on community relations.
For those of you looking at TGM.v as
a potential trade, it's the first time in a
year (literally) that I wouldn't try to
put you off the idea. As for what it
might do, your guess is as good as
mine when it comes to longer-term
matters but by taking a strict near-
term perspective, I'd say that a rally
back to the 25c to 30c range is
perfectly feasible and logical. That's
where it was when things fell apart,
first in the November/December
preliminaries and then on news of the
January uprising.
At this weekend's 18.5c, a move to 25c would imply a 35% upside. A move to 30c would imply
a 62% upside. As that's the type of percentage upside I like to see in a near-term (i.e. a few
weeks) trade potential and considering the newly positive atmosphere out there, I'm going to
risk a few shekels and buy myself some TGM.v, tacking the trade onto the other four purchases
planned this week. As for a target it all depends how the share moves (or doesn't), but I
suspect TGM will go into promo-mode around Labor Day and if momentum builds, 25c may turn
out to be the low end of possible sale numbers. We'll see how things go, but I will say that 28c
would get me hitting the sell button in a heartbeat. I'm not in this one for love or the future of
African mining or undying respect for Mark O'Dea, this one's a pure capitalist speculation.
Ecuador: Loma Larga (ex-Quimsacocha) getting two referenda
I made a mistake in a previous edition of the Weekly and today it gets corrected. Assuming the
19

voter verification process goes without surprises (and that starts on August 24th), the
communities who live around the Loma Larga (INV Metals, ex-Quimsacocha IAMGOLD) gold
project in Ecuador will have two binding referenda on which to vote (8). One, brought by the
anti-mining groups in the area will ask the question (translated), "Do you agree that mining
activities are carried out in the upland marsh areas and water sources of Qimsakocha, yes or
no?". The other, brought by the pro-mining groups in the area will ask the question
(translated), "Do you agree that those people living in the zone of direct influence of the Loma
Larga mining project benefit from 60% of the royalties generated by the operation of
responsible mining?". I'd find it funny if both referenda are voted up. By the way those
questions are phrased, it's not impossible.
Guatemala: Otto Pérez Molina may not survive his term after all
It was another tumultuous week in Guatemala politics. With the presidential elections now
drawing near and current President Otto Pérez Molina trying everything he can to remain in
office to make the transition smooth, three events rocked the fragile peace (with "everything he
can" basically meaning lay low, do nothing, keep out of view).
1) President Pérez Molina's (ex) Vice President Roxana Baldetti was finally arrested for her role
(I could put "alleged role" if you like, but there seems little point in playing niceties as she's
guilty as hell) in the 'La Linea' tax corruption scandal (see Weeklies passim).
2) The big one: The CICIG anti-corruption investigation body published its findings on the
President (9) (10) and accused him of being directly involved in the multi-million dollar
corruption scandal. The killer sound bite was (translated) "There is no doubt that all references
to "One" and "Two" correspond to the President of the Republic and to Roxana Baldetti",
referring to recorded telephone conversations that use "one" and "two" as code words for the
people who are to be paid off by companies in return for avoiding many millions of dollars in
import duties and taxes. Even worse, CICIG has called for formal charges to be made against
the President, so sure are they of the case.
3) Yesterday Saturday three of his government ministers (Education, Economy, Presidential
Committee for "Competitivity") resigned (11), saying they felt betrayed by the President and left
their posts feeling "deceived" and "sad". At the same time another "President Must Resign" rally
formed with many thousands of people packing into Guatemala City's main square in front of
the Presidential Palace (and yes, President Otto Pérez Molina is in residence).
From looking reasonably calm just a few weeks ago and weathering the storm of the first round
of the La Linea scandal, it's now once again nip and tuck as to whether Otto Pérez Molina
survives as President and gets to hand over power. Also, there are now serious calls for the
whole Presidential election to be postponed (12) until CICIG gets to the bottom of the La Linea
scandal. For one thing the scandal has gone way beyond the President and his party and affects
all the main political parties now (for example, frontrunner Manuel Baldizón's campaign has
been hit hard by accusations of corruption made against his Vice Presidential ticket running
mate, Edgar Barquín). But any delay to the electoral process would mean above all that there
would be nowhere left to hide for the President and would be very bad news indeed for him
and the general country's stability.
A focus on the Guatemala Presidential election
With all that breaking last week, it's now once again a serious and direct influence on the
Presidential election that's just two weeks away, September 6th (assuming of course the vote
takes place, see above). It's worth noting that Guatemala isn't just choosing its next President
on September 6th but is also voting for a new Vice-President, 158 members of Congress, 20
new members of the Central American parliament and mayors and town leaders for 338
municipalities. This is a big vote day.
Therefore I'd like to turn away from the current government's scandals just a little (because it's
still a big effect here) and take a good look at how the campaign has developed, because there
20

have been some very significant changes in the race. We can of course consider the human
political factors of this election, but the real and practical reason for taking an interest on these
pages dedicated to mining companies in Latin America is pure capitalism: We want to know
whether there's the potential for a trade, with our main target being the heavily Guat-exposed
Tahoe Resources (THO.to) (TAHO) as a potential prime target for any buy-low-sell-high action.
I proposed back then a call on a possible near-term trade/flip buy on TAHO, depending on how
the election looked. I'm bringing the analysis forward by a week because there's now a clear
picture emerging and it's something of a surprise, too.
The centerpiece of this article is this chart, put together from the last three voter intention
surveys run by the Guatemalan pollster Borge & Asociados for the respected news and current
affairs magazine "Contrapoder" (literal translation "against power", gist translation
"counterweight to power"). To give an idea of the survey technicals, the latest survey taken in
August and divulged to the public last week August 21st included:
• Adult males and females resident in Guatemala
• On electoral registered since 2011 minimum
• Sample taken in proportion to voter densities around country
• Head to head questioning, voter intention taken using simulated ballot paper/box
• 1,199 people interviewed
• Margin of Error +/- 2.8%
• Confidence level 95%
• Dates survey taken August 7th to 13th
In short, the right way to do a survey and Borge & Asociados has a reasonable reputation for
accuracy, much the way Contrapoder Magazine has a reputation for editorial balance. But you'll
also note that the date of the survey closes before the latest round of scandals hit. Enough
blahblah, here's the chart, notes below:
Guatemala Voter Intention Poll for September 6th Election
40%
35% June July August
30%
30.9%
25%
20%
20.6%
15% 15.8% 15.6% 17.1%
10%
5%
0%
Manuel Jimmy Sandra undecided/ no other
Baldizón Morales Torres answer
Borge & Asociados, 'Contrapoder' magazine
• Manuel Baldizón of the LIDER party, one of the most established (and establishment)
political parties in Guatemala, is still leading the polls but has seen his lead cut
dramatically.
• Jimmy Morales, running as an independent, has surged in the polls in the last two months
from under 10% to over 20% and has moved into second place.
• Sandra Torres, ex-wife of previous President Alvaro Colom and from the ostensible political
left (though hardly a radical left wing, more straight centrist in reality) has also seen gains
in voter intention, but not enough to stop Morales from surging past her. She's also
considered part of the political establishment.
21

• The "don't know/no answer/undecided" column has shrunk by nearly 12% in two months,
with more people making up their minds which way to vote. And Baldizón hasn't enjoyed
any of the new decisions.
• The "other" column (made up of several minor candidates with little hope of winning) has
also shrunk as people seem to be gravitating towards the main three candidates now.
• The final bullet point (and one we'll come back to): As Guatemala requires 50% +1 vote
for its President, it's now extremely unlikely that we'll get a winner in Round One and
we're all set for a second round run-off between the top two voted candidates that's slated
for November 8th. Two months between the two votes may turn out to be an eternity in
Guatemala.
Now for some analysis and what you see in visual form (or go to Reuters here (13) for its take
on the big electoral story) is the growing surprise that is Jimmy Morales. Morales (wiki page
here (14) is best known as an actor and one half of a long-running comedy TV show duo in
Guatemala called 'Moralejas', in which he stars along with his brother. They play a pair of
cousins who get into scrapes and then out of them again, it's reasonable but simple stuff.
Morales has also appeared as a TV presenter. He also has some form in politics already, as in
2011 he ran for the job of Mayor of the Mixco province in Guatemala and came third in the
voting. But despite this background, supporters are quick to point out that he's no intellectual
lightweight and left education with a stack of qualifications. He's also proved to be a formidable
speaker and debater in this campaign.
Despite his apparent qualities, he's still come out of nowhere. In December 2014 Jimmy
Morales didn't even figure on the electoral radar. He then started a very low cost campaign,
mostly via Facebook and other social media plus some very limited publicity space in the
"normal" outlets (street signs, newspaper ads) and to the surprise of many, was suddenly
polling around 5%. The campaign started to pick up the attention of some media and also of
those who were looking for a rallying point against the established parties and candidates of
always (in other words, the corrupt band of two or three parties who pretend to be in
opposition but in reality pass the power parcel between each other).
In short he's picked up support and momentum as the outsider candidate (for what it's worth,
"el outsider" is a phrase often used in Spanish for exactly this type of political candidate) and
has emerged from the pack as the one to challenge the established political class. And when
last week's voter intention poll results came out it reportedly shook the political establishment
hard; he's now being taken very seriously indeed. His message is strong on the main issue of
this campaign, anti-corruption. Disaffected voters are congregating around him, often because
they believe he couldn't possibly be any worse than the samo-samo options they'd have
otherwise. And it's that part of the story, the "jail them all" message for the Guatemala
corruption class politicos and people in power that we on the outside should most be concerned
about.
As things stand, the most likely outcome on September 6th is to see Baldizón (impossible to be
a more establishment politico) and Morales (impossible to be more of an outsider) go forward
into a second round run-off, with the vote on November 8th. And what happens then is
anyone's guess (at the moment pollsters have just two points between Baldizón and Morales in
a head-to-head runoff) but as my original thesis of buying Tahoe Resources (TAHO) (THO.to)
was on the back of a very likely Baldizón victory and a return to the normality (bad, corrupt,
self-serving but normal) of Guatemalan politics, it's now impossible to make that call. Bottom
line, I will not be buying TAHO before the Guatemala elections take place as it's just too difficult
to make a confident call.
One more thing: Over the years (as you'll recall, boringly) I've avoided an investment in Tahoe
Resources due to its prime weakness, the Achilles' Heel of being located in Guatemala. It's also
22

why I sold my RIO.to shares before the merger had completed, I simply don't want to be
exposed to the country's off-scale political risk. That call has been totally vindicated by the
stunning events of the past few months, but I'm also aware that on a micro-company basis,
TAHO's a great mining company with an excellent asset in Escobal. What could really ruin it for
the company is a black swan event that nobody sees coming and I'd vouch that if Jimmy
Morales wins the Presidency and takes office (without being assassinated beforehand, as I do
fear for his life now) the chances of such a black swan event would be much higher. I'd also
say that Goldcorp timed the sale of its shares in TAHO to near perfection.
Bottom line: Guatemala will be a fascinating place to watch in the next few weeks, but it's
definitely a case of "look but don't touch". Avoid exposure to the country.
Market Watching
Alex Black's new gig
On Wednesday I got to have lunch with Alex Black, of Rio Alto, Tahoe Resources and recently
resigning from Tahoe Resources fame. It was good to see him, the food was good (and he
picked up the bill, which was a bonus) and we chatted about all sorts of things. He's been
enjoying a little downtime since leaving TAHO and says that he's being peppered with all sorts
of ideas and plans for what to do next. Not surprising, he made a lot of people a lot of money
through Rio Alto and his personal stock is deservedly high. Let's recall, in 2009 when RIO.to
was set up (at the time of the Mexican Silver reversal) it was a 20c stock. TAHO bought the
company for around $4. Another thing to report is that he's clearly not ready for retirement yet
and itching to do something else in the mining sector. I fully approve.
The one matter I want to share here is this (15). On August 5th Alex Black registered a new
website, www (DOT) rio2mining (DOT) com, which gives a clue as to what his plans are. If
you'd like to find out more he's always been an approachable guy and the new e-mail address
alexb (AT) rio2mining.com is already working.
Trade Alert for fund manager/insto readers: Peru stock market is a buy on this news
Last week in IKN327 we mentioned how Peru's stock market got whacked on Friday August
14th to the tune of 5.2% on its "Top 25" index (and all sorts of chaos basically everywhere you
looked) when MSCI informed the market that it was putting the country under review and may
drop it down to "Frontier Market" category from its current "Emerging Market" category.
As today's chart shows, the chaos and mayhem continued all last week:
Add the MSCI news to the general weakness in world stock markets and the result was a
12.2% drop in the 'Top 25' list just last week (i.e. separate from the dumpage we reported last
23

Sunday).
That's a heavy drop of around 17.3% in just six trading days. But news this weekend may see
the Peru stock market rally next week and herein lies the potential trade, which may be of
particular interest to the brokerage desk or insto people who read these words (you know who
you are) as the access to trade Peru is that much easier. Alternatively, the Peru stock ETF that
trades in New York, EPU, may be of interest to retail investors (here are a couple of ten day
charts to show you the damage):
So to the news. On Saturday Peru's Vice-Minister of the Economy, Enzo Defilippi, announced
(16) that the Ministry of Economy and Finances (MEF) was considering dropping capital gains
tax on investments made in the Peru Stock Exchange. He specifically said that the measure was
being considered to help the exchange and make it and Peru more attractive as an investment
destination so that the MSCI didn't eventually downgrade Peru to Frontier Market status (that
decision's due on September 30th.
This is a good idea and it's long past time something of its ilk were done. One of the main
complaints you get from Peru market investors is the clunkiness of trading in the local market
(and I agree, I have a small and seldom used account there), with high relative commissions
payments and tax on profits at corporate levels. There are other problems that often have the
exchange itself (BVL) to blame, but the sight of the government getting proactive and trying to
rescue the country's Emerging Market status is a definite positive, which should go down well
with MSCI and help market liquidity in the larger traded stocks, one of the key criteria.
There has been an almighty rush for the door on the MSCI news, so if the chances begin to
look that Peru will not get downgraded, quite a bit of that cash can be expected to rush right
back. As long as the world market jitters don't scupper things entirely, I expect the Peru indices
to rebound from the lows touched last week on the Economy Ministry initiative. I may trade
EPU myself, but will keep it as an "off-list" trade if I do as the ticker doesn't sit well with the
normal fayre of juniors here at the Weekly.
Almaden (AMM.to) (AAU) gets a permit
I'm surprised Almaden (AMM.to) (AAU) didn't make an announcement about this last week. On
Tuesday August 18th Mexico's main environmental oversight body "Semarnat" granted the
permits Almaden (to be precise, AMM's wholly-owned Mexican subsidiary 'Minera Gorrión")
needs to start exploration work on the "Ixtaca III Bis" project area close to the main Ixtaca
project and resource (17). This is a piece of good news for the company. As well as getting
permission to get on and develop, it's evidence that the company has been doing well in its
battle (for want of a better word) against the local anti-mining groups that would stop it from
doing anything. This sort of tacit government approval of its work speaks its own volumes.
Insider selling at First Quantum (FM.to)
As mentioned in passing in the Lara Exploration (LRA.v) note-let above, some insider trades are
more worthy of consideration than others.
24

Martin Rowley is a respected, long-serving mining man (40 years in the business). He was one
of the co-founders of First Quantum Minerals (FM.to) back in 1996 and as is CV blurb states
(18) he was the company CFO and director for over a decade until he stepped aside, though he
retains his seat on the board and took the title of, "Executive Director Business Development".
In March this year he cut his personal holding of FM.to shares down from around 126,467 to
81,467 shares via two open market sales (20k and 25k sales). Last week he sold all but 5 (five)
of the FM.to shares he had left in his portfolio at an average price of CAD$7.60 (19).
In recent editions I've pointed a clear finger at copper producers such as Capstone (CS.to) and
HudBay (HBM) as being under clear financial pressure due to their financial debt and general
size of liabilities on their balance sheets. both CS and HBM are mid-sized copper producers that
added debt in order to make the jump into the large-scale producer category and the copper
price downturn has come at a most inconvenient moment for them. The same is true for the
larger FM.to, which I haven't mentioned on these pages due to its size but it's been in the back
of my mind.
I consider the selling by Mr. Rowley to be a clear tell on the state of this company (after all he's
a founder, a director and was the CFO; care to name more than three or four people who'd
know the state of this company's books better than him?). It's also my semi-excuse to make
mention of FM.to's pressures and to stick it on the same "in problems" category as the others.
Starcore Intl (SAM.to) Q4 production numbers
Last Wednesday, our small gold-producer-cum-land-grab investment play Starcore (SAM.to)
published (20) its production results for its fiscal 4q15 quarter (its one of those out-of-step
companies and its year-end is July 31st) at
SAM.to: Gold Equivalent produced
its producing asset, the San Martín mine in
7500 6900 Queretaro State, Mexico. 7000 6315
6500 6000
5 6 5 0 0 0 0 0 5100 5338 5749 5381 5130
This chart gives us the headline numbers, 5000 4800 4429 4694
4500
4,694 oz gold equivalent (AuEq) production 4000
for Q4 (end July) which compares 3500
3000
favourably to the previous quarter but is 2500
2000
still down significantly on the type of 1500
1000
production schedule we normally get from 500
0
the mine.
As tonnes mined and gold recovery
percentages were in the normal ranges, the reason for the low-end production was again the
low average head grades.
25
31.naj 31.rpa 31.yluj 31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa 51.yluj
oz AuEq
source: company filings
SAM: tonnes per day throughput
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa 51.yluj
tpd SAM.to: Gold recovery percentage
100
95
90 89.00 88.20 86.70 86.90
84.61 84.50
85 89.00 86.00 79.30 86.90 86.30 85.60
80 83.90
81.00
75 78.40
75.00
70
69.50
65
source: company filings
11.yluj 11.tco 21.naj 21.rpa 21.yluj 21.tco 31.naj 31.rpa 31.yluj 31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa 51.yluj
source: company filings

SAM.to: Avg gold head grade (g/t) per qtr
3.50
3.00
2.812.89
2.50
2.40
2.14 2.152.03 2.01 2.23
2.38 2.55 2.342.422.362.22
1.98 2.00
2.00 1.70
1.50
1.00
0.50
0.00
26
11.yluj 11.tco 21.naj 21.rpa 21.yluj 21.tco 31.naj 31.rpa 31.yluj 31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa 51.yluj
g/t Au
source: company filings
The 2.00 g/t average beats out only Q3 and is lower than as seen. SAM explained last quarter
that it was going through an area of lower than average grade and that was normal for this
mine. Presumably it will eventually perk up again but until it does, we see one of the limitations
of a small mining operation; not much chance to average things out from other mines or even
multiple stopes at the same operation.
Here's how we expect pure gold production and sales to look.
SAM.to: Gold produced vs gold sold, per qtr
7000
6300 6500
6000 5600
5240
5500 4900 4998 4814
5000
4500 4100 4315
4000
3500
3000
2500
2000
1500
1000
500
0
31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa 51.yluj
Oz Au
gold prod
gold sold
source: company filings, IKN ests for gold sold Jul'15
From the combo of tonnes/grade/recovery, we estimate SAM to have produced 4,315 oz of
pure gold with the rest of the AuEq
coming from 28,400 oz silver production.
SAM.to: Cash cost AuEq vs Au realized price
2000
Up to here we've had solid numbers form 1800
1600
which to work. From this chart down we
1400
now make reasonable guesstimates at 1200
revenues and costs in order to come to a 1000
forecast on earnings. Here's how the chart 800
600
that tracks evolution of costs versus
400
revenues per ounce (AuEq) looks. We're
200
still in the thin margin band that 0
effectively began four quarters ago and
there's not much between those lines to
leave any decent operational profit
Here's the same information on a per-tonne basis.
11.yluj 11.tco 21.naj 21.rpa 21.yluj 21.tco 31.naj 31.rpa 31.yluj 31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa tse51.yluj
U$/oz
Au realized price
cash cost AuEq
source: company data, IKN ests

SAM.to: Revenues/tonne vs cash cost/tonne
140
120
100
80
60
40
20
0
27
21.yluj 21.tco 31.naj 31.rpa 31.yluj 31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa tse51.yluj
$/mt
revs/tonne
cash cost/tonne
source: company filings, IKN ests
And from those, plus taking into account the other office costs we believe SAM has run up in
the quarter, we take a stab at a forecast for mine operating earnings.
SAM.to: Operations overview
11
10
9
8
7
6
5
4
3
2
1
0
31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa tse51.yluj
$m revenues
COGS
mine op earnings
source: SAM filings, IKN ests
We expect SAM to break even on operation, no more than that. It is of course very difficult to
estimate a small miner from the outside, as a small change in revenues or costs makes a big
difference to the gap between them. But taking everything into account, this operation won't be
far away from net zero ops this time.
Which then knocks on to a net earnings loss of just over $1m for the quarter.
SAM.to: Earnings
8
7
6
5
4
3
2
1
0
-1
-2
-3
11.rpa 11.yluj 11.tco 21.naj 21.rpa 21.yluj 21.tco 31.naj 31.rpa 31.yluj 31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa tse51.yluj
$m
pre-tax earnings
net earnings
source: SAM filings, IKN ests
I'm not showing any balance sheet items in this quick overview today, as I want to see how
SAM decides to book the incorporation of the Cortez (ex-CUT) acquisition first and that will
come when the financials are filed.
Overall I'm not surprised that SAM didn't managed to rally with the other producers last week.
The main problem is the low production schedule and that in turn is caused by the continuation
of the low grading material they're currently mining.

For me today, SAM is a hold. It's my small producer position (much smaller than BTO, LSG,
TGZX, MUX etc) and it's riskier by nature. But what it's also become is a 'Land Grab' play, to the
point where I'm considering re-classifying it in my 'Stocks to Follow' table because I think it's
going to get more oomph and value out of its asset book (Cortez, the ex-Mercator moly assets
etc) than San Martín, at least while this lacklustre production rhythm continues. It's less of a
trade and more of a longer term hold potential.
Minera IRL (IRL.to) (MIRL.L) Redux
NB: Please note that this section will be re-printed on the IKN public blog
Between the acting of a dreadful thing
and the first motion, all the interim is
Like a phantasma, or a hideous dream.
The genius and the mortal instruments
Are then in council, and the state of a man,
Like to a little kingdom, suffers then
the nature of an insurrection.
Julius Caesar, Act 2, Sc1, LL65-71
I've had a whole stack of feedback, comments and reaction from the coverage of Minera IRL
(MIRL.L) (IRL.to) in last week's edition of The IKN Weekly and on the open IKN blog. What this
note today does is collate that feedback and pass on the important stuff. This isn't going to be
the carefully constructed narrative like last week, more a coming together of notes. Some
things are connected, others are outliers, but it's all about the situation at Minera IRL with an
emphasis on the situation of its executive chair, Daryl Hodges.
I've now heard way more than enough evidence, anecdotal or otherwise, to underscore just
how poisonous the presence of Daryl Hodges in any company is, let alone in IRL. It's not an
understatement to say he's despised by those who have worked with him in other places and
those with the misfortune of working with him now. The somehow insular nature of junior
mining and its related capital markets means that in normal circumstances it's not easy for me
to get people to blow the whistle on others working at any given company, with the typical
scenario at IKN being someone, a single person or perhaps two, coming forward with
information about one of mining's negative characters. Not so with Daryl Hodges, I've had a
host of people coming to me with unsolicited mails and it's all of the same ilk. Many are simple
"congrats/thanks on shining the light on him" and are greatly appreciated, several others have
come forward with new information about Hodges and his modus operandi. All those sources
are off-record for today's piece, but I will say that the information that's made it to these pages
either comes from reliable places or it's come from people whose information has checked out.
I've chopped the notes into three rough categories for what follows, which are:
• Hodges today at Minera IRL
• Hodges previously at Jennings Capital
• The upcoming AGM
Hodges today at Minera IRL: Here are a few pearls to give you an idea of what Hodges has
been up to while running IRL.
Via the contract he drew up for himself when taking over as Exec Chair at IRL he claimed a
$100,000 bonus for closing the COFIDE financing deal when in fact he had virtually nothing to
do with the deal which was already in place before he took over. All the work had already been
done by Courtney Chamberlain (QEPD) and Diego Benavides, but Hodges walked in on the last
minute, signed the papers at the bottom and made off with $100,000 in cash of the money
from COFIDE.
28

Internally, several IRL technical staff have raised serious doubts in the way the tender for the
upcoming (now postponed) drilling program at Ollachea. Over the complaints of its technical
team, Hodges selected a drill company that was offering far fewer service for a lot higher billing
than others who applied for the contract.
He's recently spent U$33,000 of IRL money on a feature in a UK based business magazine,
which turned out to be no more or less than a personal puff-piece. Thirty-three thousand
(!!)…and here's me giving him space on IKN for free ☺.
There was a fascinating little episode in the IRL offices a couple of weeks ago, one that
demonstrates once again the total lack of understanding that Hodges has about working in a
mining company in Peru. What happens is the Ministry of the Interior will come around to
companies in Lima with foreign nationals working in them and "ask nicely" for a "small
donation" to this-or-that charity, or perhaps a donation that helps fund their Christmas party, or
perhaps they give the office a chance to purchase one of their newly printed 2016 calendars.
Look people, life is like this in Peru, it's not bribery by any shape or measure but it is the type
of "social lubricant" that makes things work smoothly and without frets. However, when one
such moment came up the other day while Hodges was present, he refused to buy or donate
and sent the Interior Ministry people on their way, claiming it wasn't ethical for the company to
do such things. We can debate that point if you like, but the consequence of Hodges' decision is
far more interesting. just a couple of days later, the Lima head office got a visit from Interpol
who asked to see the work visas of the foreign nationals at the company, people such as the
new COO Eric Olson who was there that day. But of course, all the new foreigners there had
got into the country on the free and easy 90 day vacationers stamp and not bothered to pay
money and spend time doing their entry visas correctly. The result: the new COO and a couple
of other individuals were obliged to leave the country that same day and can't get back into
Peru. Or in other words, because of Hodges' utter tone-deafness on how to do business in Peru
(not to mention that he speaks no Spanish at all), not only is the head of company not allowed
to visit its flagship project but the company COO can't even get into the country now!
Unknown to the world and as yet undisclosed even to the other members of the board, Daryl
Hodges has nominated a new director to the company. His name is Jaime Pinto, he's been
chosen as he's an ally of Hodges (i.e. in cahoots), he won't have to go through the tedious
affair of being ratified at the upcoming AGM (according to Hodges at least), he's coming from
the Peru-based disaster stock Lupaka Gold, and his plan is that as soon as the AGM is done he'll
be added as another lapdog member of the board in order to rubber-stamp any decision
Hoidges makes. We also note Hodges has already hired Carlos Yrigoyen, ex-Lupaka Gold, to be
his country manager. Something else he has yet to disclose to stakeholders or the market.
The press release from the community of Ollachea that deemed Hodges "persona non grata" at
the town and the project, the one that made official that the project was paralyzed by the
community, was by any measure a new material event for the company. However, Hodges has
not passed on the information to the market by way of a material change filing. On this subject,
it's worth making 100% clear that the community of Ollachea is not against the Ollachea mining
project. As made clear in its correspondence (21) the community is supportive of the mine. Its
objection is to Daryl Hodges, no more nor less and once he's removed, things can get back to
normal.
Hodges previously at Jennings Capital: On the blog last week (22) I ran some of the
background of Hodges's time at Jennings Capital, when he was made CEO and proceeded to
run the shop into the ground and get fired. Since that post I've received plenty more. As you'll
see, it's very safe to say that Hodges' made himself a whole stack of enemies while there.
One source joined the company from another brokerage just after the time Hodges was made
CEO and headed the Toronto shop. He joined as a high-ranking senior member of the new
Jennings team and soon realized the new people coming in were of higher quality than those in
Jennings at that time. The problem is that Hodges reacted badly to the new levels of quality, as
29

he wanted people that weren't as smart as him, not better. He felt threatened by the new
arrivals and quickly went about sabotaging their work. He fired an excellent (according to my
source) new head of sales and when he fired the head of equities it resulted in a wrongful
dismissal suit that, to the knowledge of my source, is still outstanding today (Mackie having
taken over the defunct Jennings when it went under after Hodges's treatment of it).
The trickle of leavers from Jennings became a steady stream, as those with talent didn't want
to work under Hodges. When employees who had also bought shares in the privately controlled
Jennings left Hodges bullied them into accepting less than face or market value for their shares,
often using Jennings treasury to hire the lawyers at Fasken to help with the bullying bargain-
down tactics. And again even today there is one ex-member of Jennings who was a shareholder
and has held out for full payment of his shares, the case outstanding under new owners Mackie
and dating from Hodges's time. To give an idea of how bad it was, one source flabbergasted
me when he said that for a short period there were more shares of Jennings held by people
outside the company than in it.
The final straw for my source came when Hodges, who watched all around as the Jennings
team made money in the bull market days for the miners, decided to get his cut of their action
by imposing a 5% management fee on any deal income into Jennings, all of which went to him.
It was at that point the trickle of talent leaving became a river and my source was one of
several to leave for better pastures.
In sum and according to a reliable source that's checked out well, Daryl Hodges decimated the
Jennings Capital Toronto office, all the best talent left and anyone who opposed him or who
was considered a threat to his position was fired. The end came when the Calgary office came
in with the Jennings directors and fired him, but by then too much damage had been done to
the integrity of the firm and a little while later, what was left was sold for residual value. My
source ended his part of the exchange by issuing a warning; that if you are a Minera IRL
shareholder and Hodges is left in power at the company, the only way the share price will go is
down. In his parting words to me, "Watch out".
The upcoming AGM: Last week I wrote that even if Hodges survives the AGM vote, he'll
eventually get shown the door anyway and I still think that's true. The problem is that after
collecting an extra week's worth of information on the person it's more than a little worrying to
consider what state he'd leave the company if he gets a pass vote at the AGM on Thursday and
then has time to wreak the type of havoc he managed to do while at Jennings. So I again ask
all shareholders of IRL to get their votes in and make sure they vote wisely on each item on the
agenda, as the AGM vote is clearly more important to the well-being of this company than I'd
supposed this time last weekend.
The bottom line: We should pay attention to what happens at the AGM this Thursday coming. It
has the makings of a critical juncture in the history and future of Minera IRL.
Conclusion
IKN328 is done, we end with bullet points:
• I'm buying or adding to five positions in total because this market is now turning and
the combination of better gold prices and lower cost inputs is of specific benefit to the
group of stocks I most care about today, the producing gold miners. Therefore the
biggest purchases will be (and be in order) LSG, TGZ and NGD. Yes I'm also going to
play it cute with the two near-term spec buys in TGM.v and MAX.to, but they're a type
of side-bet in my mind.
• The situation in Guatemala today is red hot for the sitting President and total
uncertainty as to who will be the next one. Very different from just a few weeks ago, I
30

recommend you avoid the country for investment purposes. Great and friendly people
though, so maybe a vacation destination.
• Last week's piece on Minera IRL (IRL.to) (MIRL.L) picked up a lot of attention and
without mincing words, I'm glad about that. Its current head need to be kicked out as
soon as possible and there's more about that today. Watch the AGM.
• After a long period in The Doldrums, this juniors market is suddenly interesting again.
I'm happy about that.
I thank you in advance for any feedback. Our Top Pick stock is B2Gold (BTG) (BTO.to). Flash
updates will be sent if required by events.
I wish you good trading fortune, ladies and gentlemen.
Otto
Footnotes, appendices, references, disclaimer
(1) http://www.elnuevodiario.com.ni/economia/368170-mina-limon-proyectan-producir-55-mil-onzas-oro/
(2) http://mineriaenlinea.com/2015/08/pymes-florecen-en-santo-domingo-por-apoyo-de-minera-en-nicaragua/
(3) https://www.canadianinsider.com/company?ticker=LRA
(4) http://sprottglobal.com/thoughts/articles/thompson-taking-advantage-of-a-bear-market-gave-us-a-$200mm-interest-
on-a-property-that-cost-us-nothing/
(5) http://incakolanews.blogspot.com/2015/08/the-tekoa-da-silva-files-interview-with.html
(6) http://www.bnn.ca/Video/player.aspx?vid=684523
(7) http://www.lefaso.net/spip.php?article66440
(8) http://www.lahora.com.ec/index.php/noticias/show/1101853910/-
1/Se_calificar%C3%A1__firmas_para_consulta_minera_en_Quimsacocha_el_24_de_agosto.html
(9) http://www.s21.com.gt/digital/aldia/centro/linea.pdf
(10) http://www.laprensagrafica.com/2015/08/21/cicig-y-fiscalia-denuncian-a-presidente-de-guatemala-otto-perez-por-
corrupcion
(11) http://www.radioformula.com.mx/notas.asp?Idn=527538&idFC=2015&sURL=
(12) http://contrapoder.com.gt/2015/08/17/aplazar-las-elecciones-he-ahi-el-dilema-de-la-cc/
(13) http://lta.reuters.com/article/domesticNews/idLTAKCN0QP22A20150820
(14) https://es.wikipedia.org/wiki/Jimmy_Morales
(15) http://dnstoolkit.net/whois/rio2mining.com
(16) http://gestion.pe/mercados/mef-evalua-eliminar-impuesto-ganancias-capital-bolsa-2140670
(17) http://mineriasustentable.com.mx/otorgan-a-minera-permiso-para-realizar-proyecto-ixtaca-iii-bis/
31

(18) http://www.first-quantum.com/Our-Company/Officers-and-Directors/default.aspx
(19) https://www.canadianinsider.com/company?ticker=FM
(20) http://finance.yahoo.com/news/starcore-produces-4-694-equivalent-212000742.html
(21) http://incakolanews.blogspot.com/2015/08/the-latest-letter-from-community-of.html
(22) http://incakolanews.blogspot.com/2015/08/daryl-and-chucks-excellent-adventure.html
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
32

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
33

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.
34