IKN #332Premium

The IKN Weekly
Week 332, September 20th 2015
Contents
This Week: Trades and changes, If your gold stock didn't go up by 10% last week it
underperformed, Fed and gold and timing, Perumin next week.
Fundamental Analysis: Dalradian Resources (DNA.to) and its bought deal, Timmins Gold
(TMM.to): Goldcorp (GG) sponsorship and a possible trade for us.
Stocks to Follow: Overview, Midas Gold (MAX.to), Lake Shore Gold (LSG.to) (LSG), True Gold
(TGM.v), B2Gold (BTO.to) (BTG), McEwen Mining (MUX) (MUX.to), Phoscan Chemicals (FOS.to),
New Gold (NGD) (NGD.to).
Copper Basket: Overview,
Low Cost Producer Basket: Overview, Silver Wheaton (SLW).
Regional Politics: Peru: Perumin next week, Argentina: The Barrick (ABX) Veladero cyanide
solution spill, Chile: Mining production unaffected by the 8.4 mag quake, Guatemala: Morales
versus Torres is now official, Yet more Chilean government propping of its mining industry
Market Watching: Continental Gold (CNL.to): The Colombia risk factor once again, First
Mining Finance (FF.v): Neumeyer keeps adding, CB Gold (CBJ.v), Batero Gold (BAT.v) Red
Eagle (RD.v): That buried lede, Standard Tolling (TON.v) redux, Fresnillo (FRES.L) halts
exploration and IKN thinks MAG Silver (MVG) (MAG.to), Minera IRL (MIRL.L) (IRL.to) update.
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
Trades and changes
As you'll see in today's edition, I'm planning to sell Midas Gold (MAX.to) this week, I may buy
some Timmins Gold (TGD) (TMM.to) if I can get in at a price around U$0.25 tomorrow (may
pay a penny higher if needed), then the target price on Dalradian Resources (DNA.to) has been
cropped to a round Loonie. Details below, top of the shop heads-up completed.
If your gold stock didn't go up by 10% last week it underperformed
Performance is always relative, so if we take the benchmark for the precious metals mining
companies last week as the 9.53% added by the miners' ETF (GDX), what that means is that A)
if you own a producer and B) your producer rose with the sector last week but C) it didn't add
nearly 10% D) you had your money in the wrong stock.
In my personal case I can be happy about the gains registered in the producing miners McEwen
Mining (+ 14.6%), Starcore Intl (+11.1%), Lake Shore Gold (+10.6%) and New Gold (+9.6%).
However, even though Teranga Gold and Top Pick B2Gold gave me weekly gains, their
performances didn't pass muster.
Fed and gold and timing
When it comes to the FOMC and its influence on the markets (specifically for the purposes of
this publication the movements in the price of gold and other metals), the IKN Weekly's position
has been clear all year; It's not a case of whether the Fed will raise rates, it's when.
1

Back in 2014 it was going to be "early 2015". When that didn't pan out, July was fixed as the
period when we'd lift off. Then it was the FOMC we've just witnessed in September, but the
market had been pricing down the chances for a while and the stay pat decision on Thursday
merely confirmed the market's 70/30 judgment call as a good one. We're now told it'll be
December, or 2016. And hey, the people telling us that are the experts right?
Facetiousness aside, position taken by your author has not changed over 2015 and those who
say the Fed will never raise rates again are wrong because they always do eventually. What we
are seeing is renewed strength in alternative asset classes such as gold* as the arguments
against are diluted with every month the Fed stays pat. There is a quant side to the relation
(negative real interest rates are good for gold, QED), but there's also a credibility factor which
is more subjective, more difficult to time and is becoming an important influence. Put simply,
gold took a dive in late '14 and early-mid '15 on the word of those who were confidently
predicting a robust and strengthening US economy (and therefore its satellites). We've already
seen that over-enthusiasm boil over into a heavy Chinese stock market crash and a decent
sized (overdue) correction in US and other industrialized nation stocks. What we're now starting
to observe is how the people spooked out of holding real money are beginning to doubt the
wisdom of not owning gold, which is the reason why I put that Goldman Sachs gold report
executive summary on the blog Friday (1). The message that generalists are showing more
interest in gold isn't one that rocks nations or moves markets in a day, it's how longer-term
tides turn.
I said it two weeks ago, said it last week, saying it again today. I'm more bullish on gold stocks
than I've been for a very long time. Though this week you might take a little more notice, what
with the GDX popping by 10%.
*Because like it or not, that's how the mainstream sees this metal
Perumin Arequipa
Next week sees Peru's big biannual mining bash, Perumin, in the city of Arequipa and with the
main entrance about seven kilometres from where these words are being written. I've done a
little write-up on what we can expect from the five day conference in 'Regional Politics' below,
but just want to say here that I'm likely to be a busy boy over the days ahead and that posting
on the IKN blog will be light (though I'm sure there will be time for at least some normal
coverage). Monday and Tuesday of Perumin tend to be the heavy days, after that it goes into
cruise control and there's more time to do other things.
2

Fundamental Analysis of Mining Stocks
Dalradian Resources (DNA.to) and its bought deal
The last time we looked at Dalradian Resources (DNA.to) was in IKN327 dated August 16th,
basically a month ago. It was just after the company had published its 2q15 financials and the
call I made in that piece has turned out to be half right. Well, perhaps three-quarters right. Due
to the change in plan at DNA announced in the 2q15 results period that means the company is
moving straight to a Feasibility Study (FS) that's due at the end of 2016 (at which time it will
apply for its environmental permits, all being well) we saw there was a projected cash shortfall
and that at some point in the future it would need to raise cash. That's the 3/4 I got right, the
bit I called badly was to assume the company wouldn't be in a hurry to raise the cash it needs
to complete to FS level and exit 2016. Here's a shot of a part of IKN327, the same piece I stuck
on the blog last week on hearing the news (3):
As it turns out DNA waited just a month. My mistake.
What follows is a brief-ish analysis split into three parts: The Facts, The Analysis and then The
Opinion of last week's news. We then wrap up by adjusting the price target on the stock and
yes, today it's getting adjusted downwards.
First the facts: On Tuesday September 15th Dalradian Resources (DNA.to) announced (4) a
C$35m bought deal with a range of
brokerages and led by Cormark (takes
40%). The company is selling 43.75m
units at CAD$0.80 apiece, with each unit
made up of one share and a half warrant
priced at CD$1.04. The bought deal is
scheduled to close on October 7th, just
after the end of the current quarter. On
the news the stock price sold off. Here's a
10 day chart and it doesn't need a rocket
scientist to spot exactly when the bought
deal bought was factored in. The 80c price
is a significant discount to recent trading
in the 85c to 90c range.
We also have a brand new investor presentation dated September 2015 (5) which information
worthy of consideration, not least the maps of Curraghinalt that gives the arm-waving idea of
the exploration potential there, aside from the current infill drilling campaign.
Now for some analysis and in the following handful of charts, I'm going to artificially assume
that the current C$35m bought deal closes before the end of the current 3q15 period, rather
than on October 7th and therefore changing only 4q15. I'm doing it this way to give a better
idea of the reality at DNA.
First the cash position at the company. We see that "real treasury" at end 3q15 will be at $61m
3

and assuming the same type of burn we'd forecast in IKN327, $53m at year end.
DNA: Cash treasury
65
60
55
50
45
40
35
30
25
20
15
10
5
0
4
01q4 11q1 11q2 11q3 11q4 21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 41q1 41q2 41q3 41q4 51q1 51q2 tse51q3 tse51q4
CAD$
source: DNA filings, IKN ests
Back in IKN327 we'd forecast a shortfall of around $15m to $20m on DNA's spending plans to
the end of 2016. So this is as simple a piece of math as you can get; by running a $35m gross
proceeds bought deal, that shortfall turns into a minimum $13m surplus and as long as we
assume the successful closing of the deal
(and why not, this is a bought deal after all)
this company is now fully funded to do
everything it wants to do in the next year
and a quarter. To underscore, here's the
very similar shape of the DNA working capital
chart with newly adjusted projections to end
2016.
Bottom line: If all goes to plan, DNA
completes all drilling, updates on the
resource, moves as much inferred
mineralization into M+I resource, publishes
its Feas Study and puts in the paperwork for its permits, it still leaves 2016 with $20m in the
bank. Perhaps my forecast on that (as seen in the chart) turns out to be slightly optimistic but
in a low end case there's still a working cap of $11m.
Share dilution getting heavy: But the good news about the cash position has its flipside, which
is the share count at DNA.to. With the
DNA.to: Share count
company estimating the post-close 220
200
shares out number at 207.64m (which
180
implies a fully diluted number at
160
262.5m), here's how the evolution of the
140
shares outstanding count looks (again, 120
remember we're being artificial about the 100
end 3q15 number). Back in October 80
2013 when I first recommended and 60
40
bought DNA.to shares here at The IKN
20
Weekly, the shares outstanding count
0
stood at 89.54m. Back then we knew of
course that Curraghinalt was going to be
developed aggressively by DNA, that
there was plenty of drilling in the
pipeline and that DNA would need to raise more capital to do its job. In short, we knew there
was dilution coming and so it turned out. Then back in 4q14 when I made my (if I say it myself,
very nicely timed) additional purchase of DNA during its price slump period, the shares out total
was at 140.05m. That's the kind of number i had in my head of a sweet spot, with the pre-feas
and the infill drilling program covered.
However that was then and this is now and with the combo of 1) the poor market conditions 2)
11q1 11q2 11q3 11q4 21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 41q1 41q2 41q3 41q4 51q1 51q2 tse51q3 tse51q4
80 DNA: Working Capital per qtr
70
60
50
40
30
20
10
0
source: company filings, IKN ests
21q4 31q1 31q2 31q3 31q4 41q1 41q2 41q3 41q4 51q1 51q2 tse51q3 tse51q4 tse61q1 tse61q2 tse61q3 tse61q4
source company filings, IKN ests
srallod
fo
snoillim

DNA's decision to go straight for the big prize of a FS at end 2016 3) the extra time and drilling
now budgeted and 4) the decision to raise cash sooner rather than later, we're now at a pro-
forma 207.64m S/O (262.5m F/D) and that's a big change.
Now for opinion. The theory behind this trade always included that of "if it hits my number I
sell", but as the number in question has been set at $1.25 to date, even the most bullish
moments of 2015 (March and June) haven't threatened my target. Now that could be because
I've been too optimistic about the target price (even though it sits at the bottom end of the
range of broker analyst target prices, as seen in the latest corporate presentation (5) or it could
be the crappy state of a market that manages to drag the price of even the best of breed
companies like DNA down, but the fact remains that $1.25 hasn't been challenged.
It now looks even further away. With the approx 21.5% dilution to the share count now in the
pipe, the direct math tells me that my new price should be 98c (78.5% of $1.25). That's of
course assuming that DNA doesn't add any value to its corporate structure and assets by using
the money it's raising to do good things, so we need to consider that before we go any further.
Another thing that I don't like very much all of a sudden is the warrant overhand at $1.04 that
this new bought deal is creating. It hasn't escaped attention that the warrants from the "Beaty
Deal" DNA did at 90c were priced at $1.15 and since then, DNA hasn't managed to surpass that
number. It created an overhand and now we've got another, this time at a lower price.
In theory at least, what DNA wants to deliver to us the shareholder come the end of 2016 is a
project with a feasibility study that's now being
permitted. As for how big that project might be, this Moz Au DNA: Evolution of resource* ounce count
5
chart shows the evolution of the resource over the
years and my best guess that the company will 4
have around 4m oz under 43-101 compliance come
3
end 2016. All those ounces might not make it into
2
the FS (inferred ounces are not allowed, hence the
current intense and costly drill campaign) and it's 1
tough to guess how many extra ounces they're 0
going to add, but sticking a finger in the air I think 2003 2009 2010 2011 2014 2016est
it's safe to say 4m oz Au is a reasonable guess (and source: company data *P+P+M+I+inferred
of course there's any number of extra ounces on
strike waiting to be discovered, but that's for another day).
And therefore, if we take the combo of the new 208m shares out (rounded up) and our
approximate of 4m oz in the resource, here's how the in-situ valuation table looks (using CAD$1
= U$0.80):
DNA.to Curraghinalt in-situ gold valuation
at 4m oz Au shares outstanding
PPS (S) 208m 220m 240m 260m
0.75 32.50 34.38 37.50 40.63
0.80 34.67 36.67 40.00 43.33
0.85 36.83 38.96 42.50 46.04
0.90 39.00 41.25 45.00 48.75
0.95 41.17 43.54 47.50 51.46
1.00 43.33 45.83 50.00 54.17
1.04 45.07 47.67 52.00 56.33
1.10 47.67 50.42 55.00 59.58
1.20 52.00 55.00 60.00 65.00
1.25 54.17 57.29 62.50 67.71
source: IKN calcs, U$0.80=CAD$1
5

Right now, the pro-forma price per ounce is around U$33 and to get back to (let's say)
CAD$1.00 we'd need those gold ounces to be priced at U$43 and bits. Now that's not
particularly extravagant for decent high grade ounces that are on paper at least cheap to mine
and produce. I agree DNA has always had that look of "quality ounces" and "serious junior" and
in fact, that's why I'm long the stock. But even taking into account that, comparing DNA to
other junior explorecos out there with in this current market and the conclusion is inescapable:
These are not cheap ounces.
One day further down the line, say in late 2016 when the whole deposit is backed up by a solid
and robust feas study (we hope), those ounces can to justify U$50/oz U$70/oz valuations or
even higher. It will all depend on the price of gold of course because if the underlying metals
goes on a run, just hold on tight to everything and we all win. But at U$1,100/oz or even
U$1,200/oz gold, I get the strong impression that there isn't so much upside left in this stock
any longer.
Bottom line: A combination of matters has me adjusting the price target on DNA downwards:
1) The stock is going to lag for the next three or so weeks anyway, while this bought deal
remains open.
2) Once it closes, we're up to nearly 208m shares out and that's a lot of paper these days.
3) We're a long way from the meaningful news period on DNA, which is slated to be 3q or 4q
2016 once the Feas Study comes out.
4) There's now a warrants overhang at $1.04.
5) The lower price makes this financing dilutive.
6) Assuming a steady gold price, there will be some upside in the in-situ value of these ounces
when the Feas Study is out (assuming it's a solid report, that is) but there doesn't seem to be
oodles of upside left.
7) All the above would quickly be negated if gold zooms higher. DNA would go with the metal,
but then again so would a whole lot of other stocks.
I'm not a seller of DNA at its current price, it makes plenty of sense to wait out the end of the
bought deal period and then watch as it finds its new level. I think the stock's good to get
to 95c or $1 and that's where I'm a seller of the stock. Therefore I'm setting the new
adjusted price target at $1.00, but may sell a little before that if we see those prices in the near
future. For me this has always been a trade with a specific exit strategy, that of "hit my price
and sell", others can decide to sponsor the new mine or wait out for the takeover. What's
changing today is the target price due to the dilutive placement, the thinking remains the same.
Timmins Gold (TMM.to): Goldcorp (GG) sponsorship and a possible trade
Late Friday NRs from juniors tend to be negative news, but this weekend Timmins Gold
(TMM.to) (TGD) brought us what may turn out to be the catalyst for a bit of a rebound. And as
this chart amply demonstrates, it would take much to get the stock moving up in large
6

percentage terms because even by the poor standards of the junior market in 2015, TMM.to
has a special place in the firmament. It hasn't been bad it's been awful, 75% down since
January 1st and I'm just glad I managed to sell out for a small profit (in real terms a breakeven
trade) when I was fishing for "value" at the time. Hey, maybe I am learning something at last.
But back to Friday and the late evening NR (2) was an interesting one because firstly it lightens
a little of the burden TMM is suffering from its ridiculously bad acquisition of Newstrike and its
Ana Paula project in Guerrero State, Mexico. It also sees none other than Goldcorp (GG) enter
as a near-10% owner of TMM.to. As it happens, form GG's perspective this must seem like an
absolute no-brainer and it has very little to lose. But it's not going to move that company's dial
in the slightest either, so we need to consider the effect on TMM and its new-found potential
for a trade here.
The main points are:
• Timmins buys the processing plant and specific auxiliary equipment owned by Goldcorp at
its El Sauzal mine in Chihuahua, North Mexico (El Sauzal is in the process of closing).
• Timmins pays a total of C$8m for the plant, with C$1 paid now, $3m via the issuance of
10m shares of TMM, then C$4m in one year's time.
• At the same time, GG buys 20 units of a TMM placement at 30c per unit (1 unit = 1 share
+ 1/2 warrant at 35c) that raises $6m for TMM.
The benefits for GG are that for a minimum outlay for a company this size (a fixed asset that
was idle, plus $6m cash) it gets 10% of a producing miner with a growth pipeline. This is the
no-brainer bit for GG, minimal outlay and an option on the future of gold in Mexico. If things go
badly for TMM in the future, GG won't bat an eyelid. If things go well, they've just bought in for
a chunky percentage at a rock bottom price.
The benefits for TMM in this deal are of more interest, because this is where our potential trade
lies. From where I'm sitting I see several:
• The Sauzal plant deal is a good one. With a 6,000tpd nameplate capacity it's the right size
of machine for Ana Paula (in ballpark terms) and at the purchase price, TMM estimates it
has saved between $40m and $60m from estimated capex to build out the mine.
• The deal gets Ana Paula moving. Up to now market conditions and a general lack of lack
at TMM have meant that the company hasn't moved much on its project. With this, TMM
will be able to show the world the start of a build-out. The terms are easy ($1m now, $3m
7

in shares, $4m cash a year from now) and TMM will have room to promote on the back of
the installation process of the equipment.
• For the record I don't rate the Ana Paula project very highly (and that's not even taking
into consideration its very difficult address in Guerrero) but do recognize this is a fillip for
the company's plans. According to TMM, it will leave around $100m left to be raised and
while that's big money, it's less big.
• The $6m TMM is raising from GG is much-needed working capital. As at 2q15, TMM had a
nominal working capital of U$40m and on the face of it that sounds okay, but U$46.7m is
current account "inventory" (i.e. gold production in progress) and that's a rolling asset,
quarter over quarter, that varies little. In effect TMM is working cap negative if it wants to
be considered an operator and a going concern and as we can assume results and
financials aren't going to be any better in 3q15, TMM needs this capital.
• The mere fact that TMM gets to team up with a bigboy miner like GG provides good optics
for the company. The optics on this level won't be lost on anyone, interest from a Tier 1
miner rarely goes without the subject of its affections getting a boost.
Which brings us to the potential of a trade in TMM. Along with the above chart this six month
price charts (this is TGD, in US Dollars) shows just how badly this stock has been beaten up in
the current rough period and it's worse than most. It's been a stock with "in trouble" written in
large letters over its financials and
operationally, at $1,100/oz gold it's not even
close to being profitable.
But we also see the recent uptick in volume
over the last week, undoubtedly because of
nervous sellers on one side of the counter but
also because some well-placed somebody
decided to bet on TMM/TGD receiving a
catalyst. Be clear, what we had from the
company post-bell Friday evening was exactly
that. I expect TMM will pop hard at the bell
tomorrow Monday and the obvious first stop
will be U$0.30. With roughly 330m shares out, we do the math, come up with a market cap of
U$99m and therefore state the benchmark for Timmins Gold's valuation at U$100m.
For U$100m you get and operating gold mining company in Mexico that's making a loss on
operations and has a debatable expansion project in a tough location with difficult metallurgy in
Guerrero. Up to a few days ago, it didn't have a sponsor or sector interest, but now suddenly
you have Goldcorp on the horizon, making a cheap entry (in its terms) and taking 10% of the
company as a sort of call option on its future viability. It's not the biggest seal of approval ever
awarded, but it's surely positive and the first thing it does is to show to the world that TMM.to
isn't going to die in the next couple of quarters. In other words, I think that all of a sudden, this
stock is worth a lot more than its current market cap (which I'm slating at a pro-forma U$75m)
and that's all thanks to Goldcorp and its new interest in TMM/TGD.
Bottom line: There may well be a trade here. I'm going to watch closely on the open tomorrow
and if (repeat IF) I get buy some shares at the U$0.25 range (for my own sweet reasons I'll be
fishing for TGD shares in the USA on this trade, rather than TMM in Canada) I'll buy some and
run a small near-term fliptrade. In fact I think TGD has the potential to go higher than U$0.30
and a number somewhere in the U$0.45 range, implying a market cap of around U$150m, isn't
out of the question if momentum starts to build. It's not easy getting number-y on this trade,
it'll be more seat of pants and sniffing the air later than hard number crunching. But if given the
chance at a reasonable entry point, I'm a buyer of Timmins Gold next week on its Friday
evening news.
8

Stocks to Follow
Of the 16 open positions currently in the Stocks to Follow list, ten showed gains (not listing
them all), two remained unchanged (ATM.v, FCV.v) and four registered weekly losses (DNA.to,
MAX.to, TGM.v, REG.v), each for its own sweet reasons. But aside from the larger-sized DNA.to
holding all the bigger positions held by your author and currently on the list were winners,
which is a good thing. Best percentage moves came from Legend Gold (LGN.v up 25.0%),
McEwen Mining (MUX up 14.6%), Starcore Intl (SAM.to up 11.1%), Lake Shore Gold (LSG.to up
10.6%) and New Gold (NGD up 9.6%). I was particularly happy to see NGD pop a decent move
after featuring it a couple of weeks ago, it's responded well and in the first rank of names.
We currently have 16 open positions in our 'Stocks to Follow' list, one more than my usual self-
imposed maximum number and a temporary state of affairs. Five of them are green, eleven are
red. Nothing to be proud about here.
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$1.61 -25.8% Top Pick, 1st tgt $2.70
Metals Producers (in current order of preference)
Lake Shore Gold LSG.to buy C$1.07 07-apr-15 C$1.15 7.6% Added Aug, M&A tgt
Teranga Gold TGZ.to str buy C$0.57 15-feb-15 C$0.62 8.8% Added Aug, 83c tgt v cheap
McEwen Mining MUX hold U$1.09 25-jan-15 U$0.96 -11.9% Recovering from lows
New Gold NGD buy U$2.18 23-aug-15 U$2.50 14.7% $3 Price tgt set Sep 6
Starcore Intl SAM.to spec buy C$0.12 10-jan-15 C$0.10 -16.7% 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$0.285 1.8% 36c/share of cash, can add
Atacama Pacific ATM.v hold C$0.19 26-apr-15 C$0.15 -21.1% Spec buy, cheap adv proj
Legend Gold LGN.v hold C$0.085 01-mar-15 C$0.05 -41.2% Spec buy, v small, not working
Lara Expl. LRA.v spec buy C$1.15 08-apr-12 C$0.245 -78.7% 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$0.77 20.3% New tgt $1 on bot deal Sep20
Minera IRL IRL.to BUY C$0.195 22-jul-12 C$0.075 -61.5% VERY cheap today
Midas Gold MAX.to SPEC BUY C$0.39 23-aug-15 C$0.37 -5.1% new near-term trade flip
True Gold TGM.v spec buy C$0.18 23-aug-15 C$0.16 -11.1% took pol risk hit, add?
Focus Ventures FCV.v hold C$0.23 01-jul-12 C$0.19 -17.4% tgt 50c, 3q15 PEA
Regulus Res REG.v hold C$0.30 06-apr-15 C$0.245 -18.3% Comm. Rels slow progress
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.
9

Midas Gold (MAX.to): Selling this week. In three words "It isn't working". I thought there
was a decent shot of pre-empting a market pump on this stock, but here we are two thirds of
the way through September and nothing much has happened.
The idea was to get smart and cute, neither of
which normally fit well in my description. But it
was also to sell and be done with this trade by
the end of September come what may and as
that date is now looming, I prefer to call it a
sell now (as nothing in the way of a big
pumpo has shown up yet) and wait for the
very end possible day.
I'll pick my spot when selling in the five days
ahead, the 37c finish last Friday looks a little
false and I think there's every chance of
seeing it float back up to 39c or 40c, which is
where I'd happily sell and break even. If those numbers don't show, I'll take less and a small
loss without any tears. That's the end of this trade, no damage but no win.
Lake Shore Gold (LSG.to): LSG offered two pieces of news to the market last week, both
positive. On Wednesday LSG published (6) the first ten results from its current underground
drill program at its very promising 144 Gap zone. As mentioned on the blog that day (pre-open)
it was the type of NR that would have seen a junior such as LSG rocket higher in trading just a
couple of years ago, but I wasn't sure how it would go down in today's turgid atmosphere. As it
happens it was received positively and though not a surprise it was a bit of a relief (as in
"there's hope for us all"). This drill map taken form the NR may be a bit small here, but it does
the best job of visualizing the strength of this new zone that's expanding mine life with every
hole.
10

Then on Friday LSG announced the successful completion of its buyout of Temex (7), the small
but potentially lucrative deal hat LSG managed
to chip away from the multi-merger "New
Oban" deal of a couple of months ago. Temex
is natural complement to LSG's current land
position and with its location close to LSG's
currently idle Bell Creek Mill, there's the
potential to turn the acquisition into a real
mine quickly. Also as Goldcorp (GG) was
Temex's JV partner, it creates another natural
link between GG and LSG.
Those two pieces of good news plus the
strongly positive market for gold rebound
stories made for a good week and the stock
that could be bought at C$1.00 on Monday morning closed Friday at a strongly bought C$1.15.
Not bad at all for the start of a real recovery, let's see what next week brings.
True Gold (TGM.v): So much for 18c being a strong resistance level. When news of the
military taking over the running of the
Burkina Faso started to filter into the
market on Wednesday, TGM did what any
self-respecting stock exposed to a suddenly
nervy African country would do and sold off
sharply on outsized volumes. In these
situations, Mr. Market shoots first and asks
questions later. Quite right too.
TGM reported on the effects of the unrest
in its NR Thursday (8) which basically said
"we're just fine here, no worries and as the
week turned into the weekend it looks as
though the military coup is being
downgraded rapidly to a military
intervention (9). The latest reports have the President of Burkina Faso not under arrest and
about to be allowed back in as interim President until the elections go ahead as planned on
October 11th.
These west Africa countries are always going to be tricky ones to gauge politically and this sort
of flare-up is why I'm very leery about exposure. As far as my taste goes, Teranga Gold (TGZ.to
site apart form the rest as in a great position with its community and wider politics. True Gold
was is and always will be an opportunistic trade on what I think is an improving local
community situation, but by buying even a few of these shares I'm exposing myself to the
wider risks of an institutionally unstable country in the run-up to a big election. Yes, things like
last week can and do happen and when they do, I take them on the chin.
The good news here is that this specific incident seems to be blowing over quickly, with not
much harm done save fro a dent in the stability image of the country. I expect TGM will make
up the 2c lost last week pretty quickly and as such it's my idea of a decent though risky trade
vehicle for those of you with the penchant for quick flip risk-taking. I won't be partaking, but
neither am I selling my shares in TGM for the moment. This trade is still on and it's going to
depend on the state of its local relations more than any upheaval in the capital city. Hold.
B2Gold (BTG) (BTO.to): As noted above in a couple of places, the IKN Weekly Top Pick stock
underperformed last week compared to its peers and this 10 day chart shows just how much of
a lag it has over the last two trading weeks
11

I still have time and faith in this stock, the plan has always assumed better numbers in 3q15
and especially 4q15 from BTO (with 3q15 providing the signal of better things to come and
4q15 delivering). But it would be nice to see it play catch-up to its group on strong volumes
next week.
McEwen Mining (MUX): MUX also did well on the gold and gold stock bounce, moving away
from that mid-80s "new normal" level and up into the 90s towards Rob McEwen's first goal,
back over U$1.00 for a meaningful time that will let the stock retain its NYSE listing.
In other news, I forgot to mention this last week so I'll play catch-up today. On September 9th
MUX raised its guidance for production
at the el Gallo I mine to 62,000 ounces
MUX: El Gallo 1, gold production vs sales
gold from the previous 50k oz (10). 20
This didn't come as any surprise to 18
16
readers of The IKN Weekly, as this
14
chart previously used in MUX analyses
12
(and unadjusted today) showed how 10
we expected MUX to easily beat its 8
6
original guidance, to the point where it
4
was pretty clear the company was 2
under-promising to an obvious extent. 0
In fact we estimated 2015 annual
production at 66,500oz Au, which is a
little higher than the MUX revised
guidance but I see no reason why my number can't be achieved so I'll leave the IKN house
estimates as-is for the time being. At least until we know the 3q15 numbers.
Phoscan Chemicals (FOS.to): The recent low prices on that selling spree have all dried up
and we're back in the green on this small value-heavy trade. FOS just has too much ultra-solid
fundies to stay down for too long and the volume as it came back was reasonable, too. Very
easy to hold this one, I just await the results of this strategic review as at some point this
company will have to do something with all that cash.
New Gold (NGD) (NGD.to): Last week we signed off on NGD with "Expect more volatility"
and that was a pretty accurate comment. This ten day chart shows that even though NGD is
following the GDX benchmark fairly closely, it has some specific spike and trough moments
along the way and that's the makings of a really interesting fliptrade vehicle (if only i were any
good at it I might join in).
12
31q1 31q2 31q3 31q4 41q1 41q2 41q3 41q4 51q1 51q2 tse51q3 tse51q4
Koz Au
Au prod
Au sold
source: company filings

But the real reason I'm beginning to really like this position taken is that NGD is performing in
just the way I'd envisaged it to do,
something that's not so common in this
crazy game (you don't get to be right for
the right reasons so often). And that's
also flashing a warning to my own ego
patrol, because the combination of
getting a company read right (IKN 321),
getting the entry point right (waited until
later for lower prices) and then watching
it move up for the reasons talked about
(decent producer, will greatly benefit
from modest gold price increases etc) is
absolute freakin' catnip to the fundies
anal yst and I'll need to watch myself
else fall in love with the stock.
The Copper Basket
After thirty-eight weeks of 2015, The Copper Basket is showing a 31.72% loss to level stakes.
company ticker price 1/1/15 Shares out Market Cap current pps gain/loss%
1 Capstone Min. CS.to 2.03 381.95 206.25 0.54 -73.4%
2 Reservoir Min. RMC.v 3.96 47.55 207.79 4.37 10.4%
3 NGEx Resources NGQ.to 1.17 187.71 116.38 0.62 -47.0%
4 Nevada Copper NCU.to 1.65 80.5 79.70 0.99 -40.0%
5 Copper Fox CUU.v 0.135 402.96 64.47 0.16 18.5%
6 Amerigo Res ARG.to 0.27 173.65 41.68 0.24 -11.1%
7 Western Copper WRN.to 0.68 93.68 42.16 0.450 -33.8%
8 NovaCopper NCQ.to 0.58 60.15 33.08 0.55 -5.2%
9 Hot Chili Ltd HCH.ax 0.16 333.11 36.64 0.11 -31.3%
10 Panoro Minerals PML.v 0.295 220.64 27.58 0.125 -57.6%
11 Regulus Res REG.v 0.35 56.39 13.82 0.245 -30.0%
12 Metminco MNC.ax 0.008 2650 10.60 0.004 -50.0%
13 AQM Copper AQM.v 0.06 141 5.64 0.04 -33.3%
14 Catalyst Copper CCY.v 0.305 31.41 5.03 0.16 -47.5%
15 Coro Mining COP.to 0.045 159.37 3.98 0.025 -44.4%
NB: HCH.ax & MNC.ax priced in AUD$, rest CAD$ Portfolio avg -31.72%
Over the basket average was 0.69% down and the week over week score for The Copper
Basket was six stocks higher (RMC.v, PML.v,
WRN.to, HCH.ax, AQM.v, CCY.v), three 5% The Copper Basket 2015, weekly evolution
unchanged (ARG.to, MNC.ax, COP.to) and six 0%
stocks lower (CS.to, NGQ.to, NCU.to, CUU.v, -5%
NCQ.to, REG.v). Biggest winners in -10%
percentage terms came from AQM Copper -15%
(AQM.v up 14.3%), Panoro (PML.v up 13.6% -20%
and proof if needed that gringos will buy -25%
anything) and Western Copper & Gold -30%
(WRN.to up 11.1%). Meanwhile, biggest -35%
losers were Regulus Resources (REG.v down
15.5%), this year's whipping boy Capstone
(CS.to down 12.9%) and Copper Fox (CUU.v
13
ht4naj ht81 ts1bef ht51 ts1ram ht51 ht92 ht21 ht62 ht01 ht42 ht7nuj ts12 ht5luj ht91 dn2gua ht61 ht03 ht31
source: IKN calcs

down 11.1%). So kind of honours even but not
really, because we also note that most of the more
liquid stocks were losers. As the tracking chart
shows, this weekend sees yet another new year low
for the copper corner.
That's likely due to the way copper traded, up
though the week and with spikes on the potential
for supply disruption on the Chile earthquake
(worries that didn't last long, see 'Regional Politics
for more), but then selling Friday as the US dollar
strengthened and some bearish data was gathered
from China on warehouse levels.
Now for the regular weekly inventory bullet points:
• Total world copper stocks dropped again
this week, this time down 5,904 metric
tonnes (mt) (-1.1%) to finish at 511,253mt.
• Another up week in Shanghai, where warehouse stocks moved up 7,013mt (+5.0%) to
finish the week at 147,847mt. This is bearish
• Meanwhile LME stocks continued their fall, down another 8,950mt (-2.6%) to finish the
week at 333,050mt. Market commentators that follow copper closely believe stocks are
being arbitraged between SHFE and LME. Makes sense.
• Comex warehouses put in a chunky drop, the first for a while as 3,967mt (-11.6%) to
30,346mt.
Here's the key Shanghai-only tracker chart and that's not plain bearish. September should be
selling and drawing down, not adding to SHFE holdings. This coincides with a lot of talking
among commodities people of "China Hoarding At These Low Prices", which is supposed to be a
signal that prices are as low as they're going to go. For me, that China Hoarding shtick is as bad
as politicos who wrap themselves in flags, the last refuge of the scoundrel.
Shanghai Futures Exchange Warehouse Stocks, 2014/2015
260000
240000
220000
200000
180000
160000
140000
120000
100000
80000
60000
14
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 ht6pes ht02
Mt Cu
source: Cochilco
As for individual stocks, still not much to report in this section. Capstone (CS.to) continues to
death-spiral, Reservoir is still the strongest trading thing on the list, but there are just too many
copper juniors being totally ignored these days. Difficult to raise any enthusiasm.
The Low Cost Producer Basket
After 38 weeks, the 2015 Low Cost Producer Basket is showing a 23.41% 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 11.23 13.53 -26.9%
2 Newmont NEM 18.90 528.08 8.97 16.98 -10.2%
3 Barrick ABX 10.75 1164.67 7.87 6.76 -37.1%
4 Franco Nevada FNV 49.19 156.5 6.87 43.90 -10.8%
5 Agnico Eagle AEM 24.89 214.12 5.24 24.46 -1.7%
6 Silver Wheaton SLW 20.33 403.75 5.01 12.40 -39.0%
7 Kinross KGC 2.82 1146.2 2.12 1.85 -34.4%
8 Buenaventura BVN 9.56 254.19 1.76 6.91 -27.7%
9 B2Gold BTG 1.62 926.68 1.15 1.24 -23.5%
10 Pan American PAAS 9.20 151.64 1.08 7.10 -22.8%
all prices in U$, using NYSE ticker prices Portfolio avg -23.41%
Last week was an excellent one for the big cap miners and our Low Priced Producer Basket list
benefited fully from the rebound. Here's
how "us vs GDX" looks this weekend
and if any of you more into TA than I
would care to take a guess as to what
that W shaped formation to the right
means (if anything) I'd be glad to take
your opinions.
All ten of our basket stocks rose, with
the smallest up from the slightly foot-
dragging BTO and the best a real
popping 22.5% rebound in the beaten
p Kinross (KGC). Other noteworthy
moves came from Pan American Silver
(PAAS up 12.7%) Buenaventura (BVN up 12.2%) and Agnico Eagle (AEM up 10.4%), a stock
that's nearly back to breakeven on the year. Not many producers can say that.
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%
15
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 ht03 ht6peS ht31 ht02
The Low Cost Producer Basket: Weekly performance
30% and comparative to GDX control
20%
10%
0%
-10%
-20%
-30%
-40%
|
source: ikn calcs, NYSE/Nasdaq data
Silver Wheaton (SLW): Monday evening saw SLW announce (11) it was starting a share
buyback program that would take and retire up to 5% of shares out. Obviously, Randy
Smallwood thinks his company's shares are a knockdown bargain right now. According to the
buyback terms, which were approved by the market authorities on Friday, SLE can, "...purchase
up to 20,229,671 Common Shares (representing 5% of the Company's 404,593,425 total issued
and outstanding Common Shares as of September 11, 2015) over a period of twelve months
commencing on September 23, 2015. The NCIB will expire no later than September 22, 2016".
Shares of SLW did well last week and the buyback news was probably a boost on that score,
but as this comparative chart shows it did no better than the GDX benchmarker.
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 ht03 ht6peS ht31 ht02
basket
gdx control
source: Google Finance, IKN calcs

Regional politics
Peru: Perumin next week
Perumin is the biannual mining event held in the city of Arequipa, Peru. It's Latin America's
biggest mining conference which attracted over 100,000 attendees during its last edition in
2013 (in fact the organizers headcount on a per day basis, so it was more like 20,000 or 25,000
people coming in over the four days.
This coming week (September 21st to 25th, though day five is basically packing up day) sees
Perumin happen again and though attendances are expected to be down on the record crowd
in 2013 it's still going to be the single biggest mining event of the year down this way, with
large-scale exhibitors from all over the continent, speeches galore, political declarations, deals
announces and many pisco sours quaffed.
It's also going to be a focus for protests and anti-mining activities, so there's a chance Perumin
will make headlines for the wrong reasons as well. By some strange coincidence and as
reported by Reuters here (12)...
Workers at iron miner Shougang Hierro Peru, a unit of China's Shougang
Group , will start an indefinite strike on Monday to demand better wages, the
union said Thursday.
Shougang produced 7.2 million tonnes of iron from its mine in Peru's southern
Ica region in 2014
...and that's not so very far away from Arequipa, certainly close enough for the connection to
be made. Then of course there's Tia Maria, the Southern Copper (SCCO) project and source of
much controversy this year (see coverage passim). The residents of the local towns in the
Tambo Valley next to the project have picked next week to renew their strike action and
marches against the project, with the strike set for September 23rd to 25th (which may then
become indefinite "if demands are not met", which they won't be). The anti-Tia Maria groups
also planned a two day parallel conference in the city of Arequipa to explain their position to
one and all, but last week the owners of the venue in the city cancelled on them. It's unclear
whether they'll be able to do the same thing form a different location at short notice, but what
we do know is that the Tambo Valley protesters (and their supporters) will march in Arequipa
cover the next couple of days and plan to march past the entrance to Perumin as well (13). The
potential for confrontation with authorities is obvious, let's see what happens.
One of the main thrusts of Perumin this time around is going to be the relationship between
mining and agriculture in Peru, or as conference organizer Roque Benavides (CEO BVN) has as
the title of one of his keynote speeches (13a), "Can Mining and Agriculture Develop in
Harmony?" (and take a wild guess as to Roque's answer on that one).
16

Overall, Perumin isn't as important as PDAC or other conferences and tends to be more heat
than light. The main benefit is that deals get done, but they tend to be between suppliers of
mining companies and mining companies, not mining company merger-type deals that make
splashy headlines. You get a lot of sound bites from bigwigs and there's triple the amount of ink
spilled on mining matters in Peru by journalists and commentaristas (especially those ignorant
about the sector who simply want to promote a political agenda, be it left right or centre). It's
not a conference that's big on junior mining a guy like me has to get benefit on different levels.
Firstly, you get to feel the group atmosphere of the sector, second the political pronouncements
are useful on a macro level because you get a lot of them in the same place at the same time,
third you get to catch up with friends in the business. So it's going to be a busy and tiring week
(there are evening receptions to attend) but ultimately a useful gig. And with the potential of
anti-mining sparks flying to boot.
Argentina: The Barrick (ABX) Veladero cyanide solution spill
You may not have heard much about it up there, but the incident at Barrick's (ABX) Veladero
gold mine in Argentina in which cyanide solution spilled from a ruptured pipeline is now making
headline news in Argentina's national newspapers.
At first, reports said (14) that some 15,000 litres of cyanide solutions had been spilled. But on
Friday five days after the incident last Sunday morning, the first preliminary but official report
released said (15) that 224,000 liters of cyanide solution had been lost due to a faulty valve.
According to the report, the leak was discovered by a worker at the mine at 10am on Sunday
13th September. At 11:15am the shift leader reported the leak and that the leaking fluid was
sodium cyanide solution. Two minutes later, the same shift leader was calling for heavy
machinery to the location of the leak in order to stem the flow and contain the flow, which was
turning into contaminated mud and moving downhill. At 12:30 the flow from the leak was finally
stemmed and at 3pm the incident was reported to Barrick Argentina management in the city of
San Juan, as well as to the necessary local and national government agencies and ministries.
The optics of the incident are very poor, too. At the same time that Barrick told the local
communities around its mine (mainly the 21,000 population town of Jáchal) that there was no
risk to the water supply and no contamination had been detected, it was ordered to close its
mine for five days and also to distribute one two litre bottle of mineral water per day to every
person in the district (16) by the judge who signed the closure order. Also, environmental
lawyers have already hit ABX with suits over the spillage and lawyers representing the
potentially affected local citizens are already talking about much larger quantities of spilled
sodium cyanide solution. For example one on a local TV station said (17) that the quantity
spilled could be as high as 3,800,000 litres NaCL solution:
"It could be a lot more, because the company said that the spill of 224,000
litres is from when the leak was discovered and the valve was closed 40
minutes later. Barrick said that the last inspection of the pipe was on Saturday
at 6pm, so if you use math it could have spilled as much as 3.8m lires of
sodium cyanide. It will be the job of the (independent) investigators to
estimate the size of the spill and the damage incurred".
Another part of that same report mentioned that other mining companies in Argentina are now
very annoyed at Barrick, partly because up until last week they could boast of national
operations that have never had a cyanide spillage incident, also because the company took five
days before informing the public about what went wrong, which is way too long for the
industry's own taste (let alone the affected locals).
All this in the run-up to the big election, in which all sides are looking to make as much political
capital as possible from any news item or incident. In this case, the anti-CFK/Scioli opposition
are the ones with the loudest voices so far, accusing Cristina of preferential treatment towards
ABX with no return for locals except pollution etc.
17

Chile: Mining production unaffected by the 8.4 mag quake
Wednesday evening's (Americas time) large earthquake off the coast of central Chile, around
290km North of the capital Santiago would have caused a lot more damage to the country's
infrastructure if its epicenter had been located closer to dry land. And of course, with its
location in the North of the country the potential to hit copper supply (via closure of ports,
roads, mines) is clear. But as things are, the country's government was able to announce the
next day that its mining industry had not been affected by the quake, save for a couple of
specific cases of power loss at two smallish copper mines in Coquimbo, the district of Chile
closest to the quake. In the words of Chile's mining minister Aurora Williams (translated) (18):
"Production in medium scale and large mining is operating normally, while in some affected
zones the operations of small mines are paralyzed for safety reasons."
Another bullet neatly missed.
Guatemala: Morales versus Torres is now official
Last Tuesday September 15th Guatemala's Supreme Court ratified (19) the run-off election
slated for October 25th to see who will be the country's next President will be between Jimmy
Morales of FCN and Sandra Torres of UNE. Over those days the big loser in round one, Manuel
Baldizón, shouted about "fraud" a lot but when it came to the crunch he withdraw he
accusations and admitted defeat, as well as resigning his position as leader of the LIDER party
(while stomping his feet and exiting stage left).
As for the early jousting, so far there haven't been any polls trying to predict a victory (and for
me it's way too fluid a situation to trust any poll at the early stage of the run-off) but the
consensus among Guatemala's political watchers is that Sandra Torres has the experience,
political nous and also the momentum (after her surprise second place) to beat Jimmy Morales
the newcomer.
Finally, worth mentioning a small positive (in theory at least) for miners currently operating in
Guatemala: In the aftermath of the Otto Pérez Molina resignation, a whole raft of laws put in
place by his administration in 2015 have been rescinded (19). These include the law to charge a
10% royalty on mining production, so as things stand companies will go back to paying the
previously levied 5%. This will probably change again once the new government is formed, but
as it's Guatemala and not a serious country, anything could happen.
Yet more Chilean government propping of its mining industry
Last week we reported on the measures Chile is bringing in to help smaller mining companies.
This week it was the turn of the medium-scale miners to benefit as Minister Williams announced
(20) on Tuesday that emergency loans would be available to medium-scale mining companies
via the State owned Enami mining company (roughly speaking, Codelco's little sister), for any
company of this size which sells its produce to Enami (and that's most of them in this bracket).
Market Watching
Continental Gold (CNL.to): The Colombia risk factor once again
As the ten day chart here shows, last week's announcement (21) by Continental Gold (CNL.to)
about its change of tack for permitting its Buritica gold project in Colombia was a piece of spin
that nobody took seriously. The company's stated message that it was withdrawing its EIA
modification application from the regional authorities Corantioquia (The Department of
Antioquia Environmental Agency) and moving its EIA application (CNL had the brass neck to
use the verb "elevate" in the title of the presser) to the national government authorities. Once
your actual analyst or shareholder had phoned CNL's IR department, they were all given the
same carefully hinted (though non-explicit) message that the locals couldn't handle the EIA
procedure, weren't equipped to do it right and it was better to hand it over to the national
authorities in order to get it done right.
18

Which is of course complete bull droppings. For one thing, this is the same Corantioquia body
that CNL chose to use over the national environmental authority because it's well known in
Colombia that dealing with regional
governments and their offices is far easier
than the national government. Secondly,
you heard no complaints from Red Eagle
(RD.v) about their dealings with
Corantioquia, as they managed to get all
their EIA permits and final approval on a
reasonable timeline. Thirdly, this is the
same Corantioquia about whom CNL.to
boasted in PDAC that would grant all their
permits in May, so the process was already
obviously advanced. Fourth, a lot of the
work done by Corantioquia will now be
completely ignored by the national
environmental agency which will insist on
doing its own research and studies, no
matter how "fast track" CNL would want you to believe they are. And lastly, most basic of all,
no company ever but EVER "voluntarily withdraws" an EIA application if they think it's going to
be granted, the only reason you ever get one of these oh-ever-so-voluntary decisions is when
the hammer's about to come down and their permits denied.
We on the outside don't know the exact circumstances of the problems found by Corantioquia
in the CNL Buritica EIA permitting track. What we do know is that the people running CNL have
a long and proven history of obfuscation and failure when it comes to mining projects in the
Americas and you only need to look at the complete mess Ari Sussman made of Colossus at
Serra Pelada for proof. It came as no surprise to me that once again, a whole bunch of people
in Canada have been burned by this snake oil salesman.
First Mining Finance (FF.v): Neumeyer keeps adding
Whatever my personal call on FF.v might be (it's "avoid", not the right time for a paper
merchant yet) you can't fault company chief Keith Neumeyer for putting his money where his
mouth is. His latest purchases (22) last week (he typically buys in blocks of between 25k or
50k) that totalled 147,500 for the five days brings his total personal holding up to 4.791m
shares, that's over 2m more than the 2.705m he owned when FF.v floated in 2q15 this year.
CB Gold (CBJ.v), Batero Gold (BAT.v) Red Eagle (RD.v): That buried lede
Just making sure that you saw the correction to last week's note that I sent out the same
evening. The 'romantic interest' mentioned last week is between Roque Benavides and Teresa
Navarro Grau, rather than the de facto head of the Navarro Grau family Michelle. But as
mentioned in that correction, though this might change the dynamic of its gossip nature, the
link between the Navarro-Graus and Benavides of Buenaventura (BVN) remains interesting and
one wonders how interested the big producer company is in all this Colombia gold politics.
Standard Tolling (TON.v) redux
Last week's piece on Standard Tolling (TON.v) came just before the stock price took another leg
down, with a Friday close of 5.5c and the price going as low as 4.5c on a volume seller earlier
in the week. So to answer a couple of mailers here in the publication (as well), no I'm not
tempted to buy in at the new lower price, this one is all about the de-risk and that's all about
seeing the final financing in place and then TON.v moving to production. Ideally I'd want to get
my hide up the to Huamachuco and see the thing working for myself, too.
As for specific feedback, I asked company CEO Len Clough if he had anything to add to my
piece last week and he kindly sent in this short paragraph. Worth your time:
19

"In short, I see ore feed as the quintessential factor in the business and
our ore purchase program is expanding with better visibility meaning the
business, in my opinion, is solid. Other factors such as general market
conditions, and day-to-day surprises will occur, and provided we can
complete the financing for commissioning we have a compelling
opportunity with a proven team."
Thank you CEO Clough, who has always struck me as the type of leader who will be able to
adapt to the type of day-to-day challenges working a small operation in Peru is bound to throw
at you.
Fresnillo (FRES.L) halts exploration and IKN thinks MAG Silver (MVG) (MAG.to)
Mexico's big silver miner and majority owned by the Peñoles Group isn't immune from market
conditions either. Last week, according to the leader of the union with which Fresnillo/Peñoles
has been working with for almost 70 years (yes, seventy) (23) at least 70% of exploration
projects owned by the company that were budgeted from exploration work this year are now
frozen. Reading this reminded me of just a few days ago when I ran the ruler past MAG Silver
(MAG.to) (MVG) on September 9th (24) and concluded that its current market valuation in
absolute and comparative terms looks very shaky on the back of its main asset, 44% of a
exploration stage mine with FRES as the major partner. Still my idea of a short, MAG's only real
exit is to be bought by FRES so with FRES doing the exact opposite of developing its exploration
stage stuff (as well as reportedly cutting down on production).
Minera IRL (MIRL.L) (IRL.to) update
The one repeated message I heard from people last week about the Minera IRL saga is how
"Diego Benavides has to clear his name" in order to progress and put together a credible
alternative to the sneak thieves who have tried to take over the company from Canada. And
that's fair enough, as he may have been victim of a smear campaign but as it's been working
and has got all of Lima's mining circles whispering about supposed Diego Benavides corrupt
acts during his time as President of the company and then interim CEO, that's what he's going
to have to do.
Or as somebody I consulted with last week who's been following the story closely but unlike
myself has tried to take as neutral a stance as he possibly can, it's time for "Team Hodges" to
put up or shut up. They've managed to spread word that Diego Benavides has been doing bad
things, but if they can't move beyond the whisper campaign and put together formal charges
against the man their position is going to dilute away with every passing week.
But Diego Benavides isn't waiting for that to happen, not any more. As of last week he's gone
20

onto the offensive and has filed his own charges against two of the protagonists of the dirty
tricks campaign, namely Daryl Hodges and Carlos Yrigoyen. Those two are now facing criminal
charges in Peru. Also, Carlos Yrigoyen and VP Exploration Don McIver have been fired from the
company, along with other people who contributed to a couple of acts undertaken by "Team
Hodges" that are against company regulations and to which "Team Benavides" has compiled
enough proof to make the charges stick. And Eric Olson, COO of the company, now has a date
with the nation's immigration authorities because he has apparently been working in Peru
without the necessary visas. Depending on how his appearance at the country's immigration
offices goes, he may be summarily deported.
What this does mean however is that the fight looks like it's going to be dragged down to a
legal and litigation level, which is not a good sign for any quick resolution. It also means that in
theory at least it will start to drag on the treasury position at IRL, though I hear that according
to the terms of the loan agreement with COFIDE, that state bank entity now has the right of
veto to any expense charged by the company and as COFIDE is firmly on the side of the people
who want to build the mine (Team Benavides) and not on the side of the people who just want
to drain the company's money into their own back pockets and don't care about anyone else
(Team Hodges), it means that the Canada end of this fight may soon find itself without funds.
and by the way, that drainage includes the $15,000 per month that the two-faced Daryl Hodges
is still charging the company for his "consultancy work" via the contract he signed with the
company in early 2014. It's nothing short of incredible to compare that man's holier-than-thou
words to his two-faced deeds.
Finally we can expect more public news from Benavides next week, as he's now starting to talk
with the press and is putting his side of the story forward for the first time ever in this sorry
mess. Up to now it's been pissant bloggers writing up the real story; as of next week,
professional journalists get to do it right.
As for the stock, we saw a little buying last week but we're still in that state of limbo as people
watch and wait for the next chapter to start to unfold actively. The market is nervous about
how the story might unfold, which is of course understandable. I'm much less nervous and still
consider the stock at an excellent entry price point. Once the bad guys are thrown out (and be
thrown out they will) this stock will have plenty of upside in it.
Conclusion
IKN332 is done, we end with bullet points:
• Dalradian Resources (DNA.to) gets its price target cut to $1 (and I may sell at 95c) on
the back of last week's dilutive financing. For sure its a great project but at over 200m
shares out, it's a different beast to the DNA of a couple of years ago. The relatively
quiet period on this stock is going to be long at a little over a year and if gold pops
higher, it's not the only stock that will benefit.
• Timmins Gold (TMM.to) (TGD) delivered positive and likely market-moving news to the
market on Friday evening and if there's a cheap entry point (U$0.25, I'd accept U$0.26)
to be had, I'm going to buy this for a trade. TMM has been horribly beaten up this year
but GG has injected liquidity and given it a decent deal on fixed assets for its An Paula
project. Cheap enough to bounce hard if momentum grows.
• Midas gold (MAX.to) was a failure of a trade, a case of your author getting too cute.
However it hasn't been a financial failure and if I get out slightly over or under
breakeven no harm has been done.
• Perumin will involve plenty of evening receptions. It's going to be a long week.
21

• IKN continues to be bullish the gold miners and gold, in that order. Be long this market.
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://incakolanews.blogspot.pe/2015/09/goldman-sachs-on-gold.html
(2) http://finance.yahoo.com/news/timmins-gold-acquires-process-plant-001301036.html
(3) http://incakolanews.blogspot.pe/2015/09/dalradian-dnato-bites-bullet-and-get.html
(4) http://www.juniorminingnetwork.com/junior-miner-news/press-releases/604-tsx/dna/11470-dalradian-resources-inc-
announces-c-35-million-bought-deal-financing.html
(5) http://www.dalradian.com/files/doc_presentations/2015/Dalradian-Presentation-Sep-14-2015-final-QP.pdf
(6) http://finance.yahoo.com/news/lake-shore-gold-reports-high-114917242.html
(7) http://finance.yahoo.com/news/lake-shore-gold-completes-acquisition-190513507.html
(8) http://finance.yahoo.com/news/true-gold-karma-mine-173704728.html
(9) http://www.theguardian.com/world/2015/sep/19/burkina-faso-coup-to-be-reversed-violent-protests
(10) http://finance.yahoo.com/news/mcewen-mining-increases-production-guidance-110000315.html
(11) http://finance.yahoo.com/news/silver-wheaton-receives-tsx-approval-210500493.html
(12) http://www.reuters.com/article/2015/09/17/iron-strike-idUSL1N11N2U420150917
(13) http://elcomercio.pe/peru/arequipa/confirman-protestas-tia-maria-durante-convencion-perumin-noticia-1840740
(13a) http://www.aminera.com/index.php/mineria-internacional/item/13583-perumin-%C2%BFminer%C3%ADa-y-
agricultura-pueden-desarrollarse-en-armon%C3%ADa?.html
(14) http://incakolanews.blogspot.com/2015/09/what-we-now-know-about-barrick-abx.html
(15) http://www.lanacion.com.ar/1829008-barrick-derramo-14-veces-mas-de-de-solucion-cianurada-de-lo-que-se-
pensaba
(15) http://www.lanacion.com.ar/1829162-reparten-bidones-de-agua-por-la-contaminacion-de-barrick
(16) http://www.eldestapeweb.com/las-mineras-fastidiadas-barrick-gold-el-derrame-cianuro-n10167
(17) http://mineriasustentable.com.mx/actividad-minera-de-chile-funciona-con-normalidad-tras-sismo-de-magnitud-84/
(18) http://www.centralamericadata.com/es/article/home/Guatemala_Anulan_impuestos_a_telefona_cemento_y_minera
(19) http://noticias.univision.com/article/2466366/2015-09-16/america-latina/guatemala/sandra-torres-y-jimmy-morales-
van-a-segunda-vuelta-electoral-en-guatemala
(20) http://www.latercera.com/noticia/negocios/2015/09/655-647389-9-ministra-williams-anuncia-credito-de-emergencia-
para-la-mediana-mineria.shtml
22

(21) http://www.marketwatch.com/story/continental-gold-elevates-the-environmental-permit-application-for-the-buritica-
project-to-the-national-level-2015-09-15
(22) https://www.canadianinsider.com/company?ticker=FF
(23) http://mineriasustentable.com.mx/paran-proyectos-de-exploracion-minera-en-fresnillo/
(24) http://www.incakolanews.blogspot.pe/2015/09/mag-silver-magto-mvg.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
23

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
24

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.
25