IKN #334Premium

The IKN Weekly
Week 334, October 4th 2015
Contents
This Week: That was the Q3 that was, Expecting the pump.
Fundamental Analysis: A short update on Minera IRL (MIRL.L) (IRL.to).
Stocks to Follow: Overview, Timmins Gold (TGD) (TMM.to), New Gold (NGD) (NGD.to), Lake
Shore Gold (LSG.to) (LSG), Teranga Gold (TGZ.to) (TGZ.ax), Dalradian Resources (DNA.to),
B2Gold (BTO.to) (BTG), McEwen Mining (MUX) (MUX.to), Focus Ventures (FCV.v).
Copper Basket: Overview, Nevada Copper (NCU.to).
Low Cost Producer Basket: Overview, Goldcorp (GG), Agnico Eagle (AEM).
Regional Politics: Regional Risk Review.
Market Watching: Electrum moves on Kaminak, but..., Buenaventura (BVN): Getting serious.
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
That was the Q3 that was
We find ourselves in another one of the calm periods before the storms in the mining sector,
with Q3 now history and a wait of a couple of weeks before solid datasets in the form of
production figures hit the wires. As a fundies mining anal yst the performances of peer
production are supposedly a cornerstone of what I do, the chance to compare and contrast,
pick and choose, discard underperformers, back potential outperformers, etc etc ad infinitum.
In a normal healthy market that's all true. Which is great until we consider the effects of the
present day bleedin' reality on what I (and others) do, because the dirty little secret is that it's
not like that out there and hasn't been for a very long time. We sellside anal ysts (and buyside
for that matter) peddling ideas for cash can pretend all we like, the fact is that it's not a
stockpickers' market and there's very little alpha out there. The bottom line is that I can call an
individual stock correctly to a tee, but if gold move up or down U$100/oz it won't matter a jot
because as long as you avoid the obvious Chapter 11 cases the stocks will ride the tide, not the
individual waves. They're all going to go up, they're all going to go down.
This week I find myself in limbo mode, waiting for new data to plug into spreadsheets and from
there come out with another original selection of wise saw and modern instances. All good fun
I'm sure, but if you manage to predict gold's next move you have a far greater chance of
making some money in the market than simply following my or anybody else's stock picks.
We now return you to our normal programming of subtle capitalism hypnosis.
Expecting the pump
Another month's US jobs report from the BLS came and went, this time the market decided it
was disappointed and dropped which of course means gold popped. Hay duly made by the
goldbug community and as the move came on the back of two things the mining promo-
merchants adore, 1) gold-friendly macro news from the USA and 2) on a Friday, leaving us the
1

weekend to either write or ponder on What. It. All. Means.
Tomorrow Monday (and as I write these words Saturday evening I hope to get the Weekly out
on the normal Sunday evening rather than use
the extra day) I expecting the mining
promotional people to move it up a few gears in
the days to come. There's an air of desperation
in the sector and sector parasites are hitting hard
times, so when there are straws to be grasped
they grab with both hands.
However, despite whatever level of noise us
commentary charlatans try to make it's a virtual
certainly that it's not going to work. For one
thing, talk about gold's rebound Friday all you
like, or scream about silver's "massive face-rip
rally" that same day, but the fact remains that we're only where we were two weekends ago
(see above chart for more). For another, we've seen time and again how rebound pops in gold
are reeled in by the market. Yes there are active players in the field, but the big stock market
money that doesn't know or care about gold’s
place in the firmament of financial and cultural
history still isn't participating much, not yet at
least. Until there's a change in the financial
world's overall attitude towards gold I fear the
current pattern, quick pops followed by re-traces,
is going to repeat. I’m the first to say that I
firmly believe I think we've found a bottom and
it's time to own, but I gave up hoping (no other
word) for a serious gold rally many months ago.
And finally, gold's one thing but the juniors are
quite another. As this chart (right) shows, 2015
to date has seen a roughly equal performance from gold, silver and the S&P500 index, but the
juniors (here represented by the GDXJ ETF) have lagged significantly. Now for sure we all know
of success stories in this period, but for every Lake Shore Gold (+35% YTD) there have been
two Trevalis or Argonauts. So expect the promo community to try and milk Friday's bounce for
all it's worth, but without a continued and significant move up in gold they're not going to get
anywhere. It's just the same money circulating around.
Fundamental Analysis of Mining Stocks
A short update on Minera IRL (MIRL.L) (IRL.to)
It goes without saying that we've done a lot on Minera IRL since this whole inside fight for
control hit the wires in early August, with last week's long piece the latest in the line. Today's is
going to be shorter and as the company is now under share trading suspension, it's all rather
academic for us outsiders watching and looking on as well. What you get today are a comment
on the news (1) announced by the company on Thursday October 1st last week that IRL's CFO
Brad Boland had resigned, plus a short redux on the main message from last week's IKN333:
The CFO resigns: There are a couple of truisms about director-level resignations from public
companies; Firstly, the shorter the news release the more "difficult" the departure. Secondly,
any resignation "effective immediately", rather than one that comes with a handover period,
lends its weight to the air of antagonism in the decision to part company. In this case Brad
Boland, the now ex-CFO of IRL.to, handed in his resignation to the company on Tuesday
September 29th. Later that day the company announced it would be late-filing its financials to
2

the London AIM market (under its rules) but decided not to tell the world that its CFO had
thrown in the towel. Only on Thursday lunchtime, after trying and failing to convince Boland to
stay, did the board fess up and announce the departure in a NR "effective immediately" that...
LIMA, PERU--(Marketwired - Oct 1, 2015) - Minera IRL Limited ("Minera IRL" or the
"Company") (IRL.TO)(MIRL.L)(MIRL.L) announces that Brad Boland, CFO and
Corporate Secretary of Minera IRL, has resigned from his position, effective
immediately. The Company has commenced the search for a replacement.
The Board would like to thank Brad for his service to Minera.
...in an NR was a mere 51 words long. It's fair to say that you the reader can completely ignore
anything I have to say on this event and work it all out for yourself; this departure was less
than amicable. Here at the Weekly we’ve followed this saga (sopa opera/comic opera/greek
tragedy) closely and have informed on the poor company morale and pathetic excuse for
leadership that IRL currently runs until blue in the face, but the wider world has less inkling of
that. However, the wider world does know what a "CFO resigns" news release means for the
integrity of any company and last week's news can be spun any way Team Hodges cares, it's
still a telling glimpse into the way IRL is being run, spoken in a market lingua franca that most
everyone gets. CFOs don't resign because the person running a subsidiary is getting stroppy,
neither do they resign on a whim; they go due to serious internal issues with the executive and
that means Team Hodges. It's also worth pointing out, sidebar style, that Brad Boland was one
of the very few people in an executive position at Minera IRL (the public entity) who was not
included in the criminal charges brought by Diego Benavides in September. Just sayin’.
And to add a little flavour, the straw that broke the camel's back for Boland was when the
current board decided to withhold the payroll cash and deprive the company's employees of
their salaries, as reported on the blog last week. It beggars belief that the people running a
company that operates in Peru have no idea that withhoolding salaries in such a way isn’t just
immoral in Peru, it’s illegal. Boland, quite rightly, wanted no part of the schoolboy games being
played by the fools who wish to asset-strip IRL.
The IKN IKN333 redux
The above on CFO Boland's departure gets a few lines because it's public information and it's
also a material event of substance (well, apart form that last paragraph...bite me Fasken) but
as clearly stated last week, due to the way this whole IRL affair has descended into legal
actions on either side and the respective teams of lawyers are looking to use anything to their
advantage I need to be careful about what I write on IRL at the moment (which is why I state
once more that everything here today is fruit of my personal opinion based on analysis of
publicly available documents along with consideration of what we know of the case). With that
in mind I just want to say one other thing today.
Last week I wrote that from feedback and opinion, many outsiders to the IRL saga are under
the impression it's going to drag on for months and months (even years), but I said last week
that I thought the time between now and a resolution can be counted in weeks rather than
months. This week I'd like to reiterate that, because not only do I think that we're just a few
weeks away from getting real movement and a positive resolution (by which my message
should be crystal clear by now; bye bye Team Hodges, welcome back real development and
project advancement) but my opinion is now even stronger. The idiots who tried to usurp this
company are on their way out and their days are now numbered.
But that's just my opinion. Based on a hunch, if you like.
3

Stocks to Follow
Of the 16 open positions in the 'Stocks to Follow' basket, just four registered a week-over-week
gain (MUX, NGD, TGD, LRA.v) while another four remained unchanged on the week (BTO.to,
SAM.to, LGN.v, IRL.tro suspended). That means eight stocks put in a losing week (LSG.to,
TGZ.to, FOS.to, ATM.v, DNA.to, TGM.v, FCV.v, REG.v) and of those the biggest percentage
losers were Regulus Resources (REG.v down 18.4%), Atacama Pacific (ATM.v down 14.3%)
and Focus Ventures (FCV.v down 11.1%). In other words, the smaller and more illiquid
positions got hit and the way it mostly happened was when somebody decided to liquidate. The
bigger and more widely traded stocks on the list either went up a little, down a little or stayed
where they were because they get traded in and out. So as far as my back pocket goes, overall
a neutral sort of week. It could have been worse.
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 stocks are in the green,
eleven are red.
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$1.48 -31.8% 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$1.14 7.0% Added Aug, M&A tgt
Teranga Gold TGZ.to str buy C$0.57 15-feb-15 C$0.58 6.5% Added Aug, 83c tgt v cheap
McEwen Mining MUX hold U$1.09 25-jan-15 U$0.935 -11.5% Recovering from lows
New Gold NGD buy U$2.18 23-aug-15 U$2.42 11.0% $3 Price tgt set Sep 6
Timmins Gold TGD buy U$0.245 20-sep-15 U$0.266 8.6% New position, quick flip idea
Starcore Intl SAM.to spec buy C$0.12 10-jan-15 C$0.09 -25.0% 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$0.27 -3.6% 36c/share of cash
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$0.035 -58.8% Spec buy, v small, not working
Lara Expl. LRA.v spec buy C$1.15 08-apr-12 C$0.285 -75.2% solid biz model, LT hold
Other Recommended Stocks (in current order of preference)
Dalradian Res DNA.to BUY C$0.64 27-oct-13 C$0.70 9.4% New tgt on financing Sep 20
Minera IRL IRL.to Susp. C$0.195 22-jul-12 C$0.075 -61.5% Trading suspended
True Gold TGM.v spec buy C$0.18 23-aug-15 C$0.17 -5.6% Sm. pol risk hit sep'15
Focus Ventures FCV.v hold C$0.23 01-jul-12 C$0.16 -30.4% tgt 50c, phospate great value
Regulus Res REG.v hold C$0.30 06-apr-15 C$0.20 -33.3% 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
Midas Gold MAX.to sep'15 C$0.39 21-sep-15 C$0.35 -10.3% Sm. trade idea that didn't work
2009, 2010, 2011, 2012, 2013 and 2014 closed positions in appendices below
4

Now for some notes on current basket stocks.
Timmins Gold (TMM.to) (TGD): On opening my mailbox early Friday morning and reading
the title line about a "Small Tear In New Leach Pads" (2) at the San Francisco mine, my heart
sank. It's the type of thing that can ruin a company's production schedule and first reports of
tear problems can sometimes be the prelude for worse news down the line. But on reading the
contents of the NR, the mood changed to relief because it turns out that the tear really is small,
the company has almost certianly caught the problem in time and what's more, they've done all
the right things by the Mexican enviro people PROFEPA.
I'm not a big fan of this operation or the company, I’m not here to support the next big thing or
whatever else. This is “biuy low sell high” and “sell is veyr much on the menu, this is a straight
deep value play on the opportunity TMM’s current price presents because of...
• The tidal change in gold (minimum is that we've hit a bottom, the realist in me says we're
consolidating at a reasonable price and should drift gently higher, the optimist in me says
we're at the start of a strong rebound)
• The beaten up stock price (many companies have been hit, this one's been really, really
hit)
• The incursion of Goldcorp (GG) into the company (if you want a sponsor, let it be a big
one).
...and despite its limitations as a gold mining company it's that last bit I like the most here.
TMM needs higher gold prices to be profitable
and that's part of the reason it’s been marked
down so hard by the market in 2015; For a
long time it had the look of a Chapter 11
candidate and as mentioned last week, the
apparently healthy-ish working capital position
hid an approaching liquidity and cash crunch
(ongoing inventories propping up the
numbers, something that doesn't help when
it's time to pay the bills).
But GG to the rescue in cavalry style, deus et
machina at the end of those black and white
Westerns. The bargain price for the machinery
that TMM will ship to Guerrero is one thing, the $6m liquidity top-up is quite another and that
cash alone has bought TMM both time (directly) and the look of a company that's attracted a
partner who won't walk away after a single investment. Thanks to GG what TMM now has is
time, which means the potential for real and nasty financial straits has dissipated. For that
alone, this is a decent value shot at buying a bottom in a producing junior.
The trade's started reasonably well and though my initial target of seeing the stock with a
three-handle hasn't happened yet, the 25c level has held nicely and there has been some
interested buyers' action along the way too (admittedly in fits and starts). Until otherwise
proven this one goes into the "have bought well" file, which means there won't be any rush to
take a profit on any bump. I'm not asking the world here, just the possibility to sell in perhaps
30% for today when a bunch of other people suddenly think it’s cheap and like the idea of
buying it. It might turn out to be just another chapter in the Greater Fool Theory, my strong
feeling is I’m not the biggest fool this time.
New Gold (NGD) (NGD.to): NGD is officially a fun one to own. Fun fun fun, again volatile,
the week's range took my cost average back into the red for a few hours on Wednesday and
Thursday before the BLS jobs numbers and the now well-documented reaction. What's loveable
instead of just likeable (once again) is how NGD zoomed up in the first rank of movers, it's
become a go-to ticker for people wanting to play in the gold sandpit. My slated target is still
5

U$3 and for the moment, as it bounces around inside a range, NGD doesn't look like
threatening it. But given the right circumstances and impetus, this is the type of stock that
could add 20% in hours, not even days or weeks. One of the few personal positions that stops
me from nodding off at the office desk from time to time, at least while the markets are open.
Lake Shore Gold (LSG.to): Down just a penny on the week, LSG traded well enough and
held its own among the junior producers without setting the world on fire (or managing the
match the returns of the bigger PM producers, see "Low Cost Producer Basket" for more). My
feeling is that we need to see some solid 3q15 production numbers in order to get a next leg
up. Exploration success news has come and gone, with only temporary effects on the share
price (in a bull market the 144 Gap news in September would have added real asset value,
today is far from a bull). It's easy enough to hold and my position addition of a few weeks ago
underscores that. Frnknly, the sooner GG makes its move the better.
Teranga Gold (TGZ.to) (TGZ.ax): Here's another one waiting for a catalyst in order to re-
gain traction. We know that TGZ has guided us to the lower end of its 2015 guidance range and
we also know they're reconfigured timing and will start mining the new higher grading Gora pit
later rather than sooner, which means the 3q15 production numbers aren't likely to be blow
out. Therefore this story and its potential catalyst will be on the costs items and as it's (finally,
thankfully) becoming trendy to have a mining company that makes a profit no matter where
gold might be priced, all eyes will be on the cash cost.
TGZ for me still represents tremendous and deep value on gold.
Dalradian Resources (DNA.to):
NB: Last week I wrote that the C$0.80 units in this bought deal were
comprised of a share and a half warrant at C$1.04. That was an error, as in
fact each unit comprises of a share and a full warrant at C$1.04.
The 80c bought deal placement weighed even more heavily on DNA last week and for a few
minutes on Wednesday I was thinking the unthinkable (at least unthinkable a few weeks ago)
and considering whether I'd have an opportunity to average down on my 64c cost average
instead of up...and whether I'd take that opportunity if it arose. In the end DNA rallied a little
and back out of the 60s, but the 70c finish on
Friday was a typical price for the week and it has
me wondering just how well (or otherwise) this
bought deal is going institutionally. For sure at
the appropriate moment in the week ahead we're
almost certain to get the "placement successfully
closed" NR from the company, but that's because
it's a bought deal. QED. The problems start if
brokerages are left holding bags of shares
because that would create an overhand at 80c,
not just at the $1.04 level where the warrants
are priced.
Yup it’s a bit of a downer to see DNA down at these levels after being at $1 and above recently.
Plus the new and more modest price target (95c to $1) reflects the dilution and the strategic
mistake I made in aiming too high. However, the prize of Curraghinalt is a quality project and
barring major surprises, DNA will be fully funded to the end of 2016 and the feas study by the
end of this week. I’ll have feelers out of how much of the book has been taken by “real”
shareholders” (rather than bagholding brokerages) and if the bought deal went well, we should
see it back in the 80s (at least) soon enough. That in turn means a reasonable risk/reward flip
opportunity at this 70c level for those of you with the penchant.
B2Gold (BTG) (BTO.to): The news last week about a protest and strike action at the El Limón
6

mine in Nicaragua (3) didn't put much of a dent in the share price and that was the right
market reaction. for one thing El Limón is BTO's smallest operation, for another the disruption
was far from comprehensive and the mine reportedly kept producing, and finally the company
position on the event, which centred on three union workers being fired, was supported by the
national government (so much for far lefty fears in Nica). I’m not worried about that one.
In trading, I got a couple of comments through about how BTO was underperforming again last
week and this YTD chart shows a gap has
formed between our Top Pick and the GDXJ
benchmark ETF. But these last couple of
months, BTO hasn’t under or out-
performed, it’s just marking the tide. On th
other hand I’m still not happy as I expect
more from what I consider the best value
junior in the bunch today, so when the
3q15 production numbers show up (BTO
usually announces them later than others)
it may be time to take a serious look at my
own assumptions. Then again, I may be
dead right here and the company is about
to improve in Q3 and Q4 and become a
flavour of the month all over again. For the
time being, I’ll just scratch my chin, wonder and stay pat on the stock. Still the house Top Pick,
but it’s all a little mysterious.
McEwen Mining (MUX): Seven types of fun and games out of MUX last Thursday October
1st, when after the bell the company announced in two separate NRs the departure of its CFO
and its intention to run a share buyback program. So first things first and the important one of
the two, the announcement (4) that Perry Ing was resigning as CFO of MUX. Ing is young (39
years old) and moving to pastures new may be part of the equation, but we note that he’s been
working for Rob McEwen since 2008 in different Rob Mac vehicles so his departure at this
delicate time for MUX and the market in general has to be considered a clear negative.
Which probably explains why Rob McEwen decided to sweeten the pill by announcing (5) a
share buyback program that same evening. It has the look of style over substance, but taken at
face value it supposes MUX will spend up to U$15m to buy back 15m shares, just under 5% of
the total number of shares out. It sounds correct and as one of Rob McEwen’s main objetcives
in 2015 is to prop the share price back over
U$1 and keep his coveted US listing (currently 60 MUX: Working Capital per qtr
under review) it passes the logic smell test too. 55
50
But if we take into consideration the company’s 45
working cap position and the IKN forecast for 40
35
the next couple of quarters, plus its stated 30
25
plans for expansion, albeit by funding the 20
smaller sized expansion projects on its books 15
10
such as Gold Bar in Nevada, you have to 5
0
wonder what’s going to give. Fair enough,
having $30m in cash and a cash flow positive
main operation at El Gallo I is a better profile
than many other junior miners out there today,
but it’s not a king’s ransom either and Rob McEwen won’t be able to spend $15m on equities
and move on the company’s organic expansion plans without financing. And that would almost
certainly be via share sales (the filing needed to sell shares is already in at the SEC) and that
would mean dilution of the share base and price...a circular argument. Inane and not going to
happen.
The share buyback announcement last week is, for me, no more than sequins thrown in eyes to
7
31q1 31q2 31q3 31q4 41q1 41q2 41q3 41q4 51q1 51q2 tse51q3 tse51q4
source company filings/IKN ests
srallod
fo
snoillim

divert attention from losing the CFO. And hey, knowing McEwen it’ll probably work. Hold MUX,
still looks cheap, bound to rally hard if gold obliges.
Focus Ventures (FCV.v): FCV got hit by a heavy selling moment last week. Well. in fact the
precise term should be relatively heavy selling, because the approximate half million shares
dumped on Monday September 28th at C$0.15 come to about C$75,000 which is quite a lot of
FCV paper in a single day but hardly a dollar count that sets a stock market a-trembling.
I asked the company if they knew who was selling and although they couldn't be 100%, it was
very likely a New York based fund that held just that number of shares and had asked for their
ledger to be lifted on their share certificates a few weeks ago. That's reasonably good news,
because the single block seller isn't going to surprise us with another round of dumping and in
theory at least, that should allow FCV's price to drfit back up to its 18c-20c recent trading
range. The lack of follow-through volume for the rest of the week plus the pop back to 16c
Friday also suggests just that.
The Copper Basket
After forty weeks of 2015, The Copper Basket is showing a 35.00% loss to level stakes.
company ticker price 1/1/15 Shares out Market Cap current pps gain/loss%
1 Reservoir Min. RMC.v 3.96 47.55 219.68 4.62 16.7%
2 Capstone Min. CS.to 2.03 381.95 179.52 0.47 -76.8%
3 NGEx Resources NGQ.to 1.17 187.71 103.24 0.55 -53.0%
4 Nevada Copper NCU.to 1.65 80.5 78.09 0.97 -41.2%
5 Copper Fox CUU.v 0.135 402.96 62.46 0.155 14.8%
6 Amerigo Res ARG.to 0.27 173.65 50.36 0.29 7.4%
7 Western Copper WRN.to 0.68 93.68 38.41 0.41 -39.7%
8 NovaCopper NCQ.to 0.58 60.15 29.17 0.485 -16.4%
9 Hot Chili Ltd HCH.ax 0.16 333.11 28.31 0.085 -46.9%
10 Panoro Minerals PML.v 0.295 220.64 26.48 0.12 -59.3%
11 Metminco MNC.ax 0.008 2650 13.25 0.005 -37.5%
12 Regulus Res REG.v 0.35 56.39 11.28 0.20 -42.9%
13 AQM Copper AQM.v 0.06 141 4.94 0.035 -41.7%
14 Catalyst Copper CCY.v 0.305 31.41 4.24 0.135 -55.7%
15 Coro Mining COP.to 0.045 159.37 3.98 0.025 -44.4%
NB: HCH.ax & MNC.ax priced in AUD$, rest CAD$ Portfolio avg -35.00%
Another new 2015 low for The Copper Basket, with the average standing at negative 35% for
the year. As for last week, five stocks put
in gains (CS.to, NCU.to, WRN.to, ARG.to, 5% The Copper Basket 2015, weekly evolution
COP.to), one was unchanged (MNC.ax)
0%
and the other nine were losers (NGQ.to,
-5%
RMC.v, PML.v, CUU.v, HCH.ax, NCQ.to,
-10%
REG.v, AQM.v, CCY.v). Big percentage
-15%
winners were Coro Mining (COP.to up
-20%
25.0%, though that was just a half cent
-25%
move in reality) and Amerigo (ARG.to up
-30%
9.4%), while double figure percentage -35%
losers are a more extensive list that
include Regulus (REG.v down 18.4%), Hot
Chili (HCH.ax down 15.0%), Panoro
(PML.v down 14.3%), NovaCopper
(NCQ.to down 13.4%), AQM Copper (AQM.v down 12.5%) and Catalyst Copper (CCY.v down
8
ht4naj ht81 ts1bef ht51 ts1ram ht51 ht92 ht21 ht62 ht01 ht42 ht7nuj ts12 ht5luj ht91 dn2gua ht61 ht03 ht31 ht72
source: IKN calcs

10.0%). In a nutshell, what we're seeing in the copper space are a few survivor stocks that
may be up or down on the year, but they're still reasonably liquid and tradable. Then there are
a whole bunch of complete dreg stocks that see heavy percentage drops every time just one
person decides to throw in the towel on a holding. What that suggests for Q4 and the tax loss
selling period is likely to send shivers down the spines of many a
junior exploreco director.
And the Copper Basket hit new lows even while copper market
prices put in a bit of a rally. Not a big one and we're still firmly
under the new resistance level of U$2.40/lb or so, but up is up
and should therefore be welcomed by the mining sector that
always wants better prices for its merchandise.
We move to the stocks section and as it's the end of another
month, here are the longer-term tracker charts. September was
marked by arbitrage moves between LME and Shanghai
warehouse systems, so around 30% of the world's traded system
stocks are now in the SHFE, up from 23% or so last month.
Copper inventories, per month, 2012 to date
1000000
900000
800000
700000
600000
500000
400000
300000
200000
100000
0
But as the right-hand chart indicates we're still clearly inside the normal and there isn't really
too much to read into the month-end number this time. Overall in 2015 we've seen stock levels
tread water on a worldwide aggregate level, which is in fact bearish because the anticipated
drawdown never appeared. Remember back in March and April when the world told us China
would snap up all the excess copper? Seems so long ago now. Now for the regular weekly
inventory bullet points:
• Total world copper stocks dropped slightly last week, down 8.855 metric tonnes (mt) to
finish at 508,402mt.
• Shanghai stocks saw a slight drop, down 2,963mt (+5.2%) to 152,551mt. More below
on that change in direction.
• LME stocks also dropped a little, down 5,850mt (-2.3%) to 319,425mt.
• Comex warehouses
changed a mere 43mt,
finishing Friday at
36,426mt. No biggie.
Here's the Shanghai-only tracker,
and that slight but welcome
downtick in stocks last week.
Nobody should bank on a week's
worth of data, especially in a
dataset that hasn't signalled the
copper price direction in a
9
21.naJ bef ram rpa yam nuj luj gua pes tco von ced 31.naJ bef ram rpa yam nuj luj gua pes tco von ced 41.naj bef ram rpa yam nuj luj gua pes tco von ced 51.naj bef ram rpa yam nuj luj gua pes
Mt Cu Copper inventories: percentage held per exchange
LME Shanghai Comex 80
70
60
50
40
30
20
10
0
source: Cochilco
21.naJ bef ram rpa yam nuj luj gua pes tco von ced 31.naJ bef ram rpa yam nuj luj gua pes tco von ced 41.naj bef ram rpa yam nuj luj gua pes tco von ced 51.naj bef ram rpa yam nuj luj gua pes
LME Shanghai Comex
source: Cochilco
Shanghai Futures Exchange Warehouse Stocks, 2014/2015
260000
240000
220000
200000
180000
160000
140000
120000
100000
80000
60000
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 ht4tco
Mt Cu
source: Cochilco

straightforward way for a while (you need to take stock numbers in context with other things).
We note the potential for a change and something different and move on.
Now for notes on just one basket stock this week:
Nevada Copper (NCU.to): After hitting new a multi-year low of 80c on Tuesday, NCU fought
back and finished the week over 20% higher than that lowly low due to the rebound in copper
(natch) as well as the latest chapter in its promo push NR campaign. Published Wednesday
morning (6), NCU announced a “Corporate and Project Update” which included a re-hash of its
recent achievements (permitting etc), but also provided news that was somehow construed as
positive by our market of weirdness. Experience teaches that when a exploration stage junior
mining company with no source of income announces an amendment to a loan facility, it’s bad
news. On Wednesday NCU amended not
one but two loan agreements. For sure
they’re both with long-term backers Pala
and Red Kite, but whenever a company
does these things (in order to retain
treasury liquidity and stay afloat) it’s a new
drag on the equity value.
We than also notice that even with the new
amendments, the loan deals mature in
2017 and just a few lines later in the NR
last week, NCU made its pitch to begin
production in 2018. Even if this turns out to
be the right date (unlikely, considering this
company’s woeful track record of deception
and doubletalk) the gap in the time between loans maturing and produciton starting is as
obvious a signal as you’d ever want; they’ll need to refi again.
But hey, WTFDIK anyway? Above is the 10 day stock price and there’s no doubt that NCU’s
share price reacted favourably to a NR that was, for my taste at least, full of fluttering red flags.
The Low Cost Producer Basket
After 40 weeks, the 2015 Low Cost Producer Basket is showing a 23.39% 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 10.79 13.00 -29.8%
2 Newmont NEM 18.90 528.08 9.02 17.08 -9.6%
3 Barrick ABX 10.75 1164.67 7.65 6.57 -38.9%
4 Franco Nevada FNV 49.19 156.5 7.34 46.91 -4.6%
5 Agnico Eagle AEM 24.89 214.12 5.95 27.80 11.7%
6 Silver Wheaton SLW 20.33 403.75 5.16 12.78 -37.1%
7 Kinross KGC 2.82 1146.2 2.11 1.84 -34.8%
8 Buenaventura BVN 9.56 254.19 1.61 6.35 -33.6%
9 B2Gold BTG 1.62 926.68 1.04 1.12 -30.9%
10 Pan American PAAS 9.20 151.64 1.03 6.78 -26.3%
all prices in U$, using NYSE ticker prices Portfolio avg -23.39%
The underperforming Goldcorp (GG) went down last week, but the other nine members of this
basket of stock made gains last week (not listing them all), with percentage gains headed by
10

Kinross (KGC up 9.5%) and the 2015 out-performer of larger cap gold names, Agnico Eagle
(AEM up 7.0%). So in general we can say that once again the larger caps out-did the smaller
juniors we follow above (and mainly hold for that matter).
The GDX benchmark continues to maintain a slight lead over our basket average. The
difference is all about the relatively bigger hit taken by the smaller cap stocks we list here
(PAAS, BTG etc).
The Low Cost Producer Basket: Weekly performance
30% and comparative to GDX control
20%
10%
0%
-10%
-20%
-30%
-40%
11
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 ht72 ht4tco
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%
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 ht72 ht4tco
|
source: ikn calcs, NYSE/Nasdaq data
Agnico Eagle (AEM): AEM continues to be the blue-eyed boy of the sector.
I’m good about its support, but I fail to see why it’s so popular compared to peers. It’s now
looking decidedly overbought.
Goldcorp (GG): The Friday night bad news NR is a classic of the genre in the junior world, but
it's a little disconcerting to see the biggest market cap gold mining company in the Western

world use the strategy. Friday post-bell saw GG announce (7) a strike at its new Cerro Negro
mine in Argentina and the main wrinkly is that it had been going on there since Wednesday
September 30th, so it's not as if they didn't have chance to report on this material event.
As it happens and from what I can gather, the move by the Argentine AOMA union (on pay and
conditions, surprise surprise) looks tightly tied to the wider political events about to happen in
Argentina on October 25th and GG's mine is being used as a bit of a football. We're likely to see
what's known as a "obligatory negotiated settlement" between the two sides that’s refereed by
the government and in the meantime while the parties pow-wow, the workers will go back to
work. This isn’t one that’s going to affect GG in the long-term and if this is the reason it did
badly last week on the rumour of unrest at its new and big mine, the call at IKN is to buy the
“bad” news first thing Monday morning because anything baked into the stock is an over-
reaction. Worth remembering that GG was the only one of our ten that returned a week-over-
week loss.
Regional politics
Regional Risk Review
We've got through another quarter, so today we run the review of regional political risk for
junior mining. This is the 10th edition of the revised format (as previously seen in IKN218,
IKN230, IKN243, IKN255, IKN269, IKN283, IKN295 IKN308 and IKN320). Now the standard
reminder of the scoring system (full details, IKN218). The 6 categories are:
a) National Government Miner Friendly: The country on its national stance towards
mining activity.
b) Community/Social Miner Friendly: The overall attitude of locals towards mining,
either in specific zones or in country regions.
c) Foreign Direct Investment (FDI) Friendly: The openness towards FDI and the
safeguards it gives to foreign capital looking for a home.
d) Mining Culture: Countries or regions with generational traditions in mining are easier
places in which to operate than those which have little previous exposure to formal
mining operations.
e) Geopolitical Optics: The way in which the outside world sees this country, an
important factor, no matter if the perception be right or wrong.
f) Internal/National Political Stability: A gauge of how stable the place is politically.
We tend to concentrate on nine countries with the potential to host companies, rather than try
to offer a comprehensive LatAm-wide view that takes in countries with little or no appeal for
investment or speculation in juniors. Therefore we focus on Chile, Peru, Mexico, Brazil,
Colombia, Nicaragua, Dom Rep, Argentina and Guatemala. However this month there's a
change in the "potentially relevants" sub-group, because Guyana deserves extra mention and is
on the way to a full upgrade. And that's good. Aside from that we keep an eye on Panama,
Uruguay, Ecuador.
12

September 2015 Latin American Country Risk For Foreign Mining Companies
Nat. Govt Community/Social Geopolitical Internal Nat.
Country FDI Friendly Mining Culture Total
Miner Friendly Miner Friendly Optics Political Stability
LatAm countries under active consideration for junior mining project location
Chile 9 7 8 10 7 7 48
Peru 9 5 9 9 5 6 43
Mexico 8 6 7 9 6 6 42
Brazil 7 5 8 8 5 6 39
Nicaragua 8 5 7 7 6 6 39
Dom Rep 7 5 7 5 5 8 37
Colombia 6 4 8 6 7 5 36
Argentina 8 6 4 6 4 7 35
Guatemala 6 4 4 5 3 3 25
Potentially relevant LatAm countries for junior mining
Guyana 8 7 7 7 6 5 40
Panama 7 5 9 4 8 6 39
Ecuador 7 5 5 4 8 7 36
Uruguay 5 5 7 3 6 7 33
Countries of little or no interest for junior mining exposure
Bolivia 4 6 2 9 6 9 36
Paraguay 7 5 6 3 4 6 31
Honduras 7 3 4 5 3 3 25
Costa Rica 1 1 5 1 6 7 21
Haiti 6 3 4 1 3 4 21
El Salvador 1 1 4 1 6 4 17
Venezuela 1 5 1 3 1 2 13
source: The IKN Weekly house estimates
Overview: I'm thinking about re-jigging the Regional Risk points categories again, which would
be the second time it's had a systems overhaul. The problem is the list’s scoring system is, for
my taste at least, moving away from its objective of practicality when it comes to our main
focus of mining investment. With the rise of some countries (recently Guyana, but also
Nicaragua) which are doing things right, against the fall of others (Colombia, Uruguay,
Guatemala to name but three) which are for their own reasons failing their mining sectors, then
a third category that have high scores but aren’t a practical destination for junior mining
speculation or investment cash (e.g. Bolivia) I’m seeing a skewing of the numerical results that
isn’t rewarding the things that matter the most in the mining sector while overemphasizing
some more general aspects of political and country risk that, while still important, are second
plane when it’s “buy low sell high” that really matters to us hard-nosed capitalists.
That aside, this quarter’s edition of the risk review sees overall deterioration in the
attractiveness of LatAm to the mining industry with plenty of points lost, precious few won. As
the downturn has all of us battening down hatches we continue to concentrate on major or
most talked about countries in the region, rather than the bottom end of our league table that
holds little or no love for mining FDI.
Chile: National government miner friendly up 1 point, Geopolitical Optics down 1
point
The government that best treats its mining industry in Latin America has got even better.
Acutely aware of the key role of mining in its economy, the Chilean government of Michelle
Bachelet via its Mining Minister Aurora Williams announced several initiatives for the mining
sector in the quarter just gone, with a emphasis on the small and medium scale mining
companies that are most feeling the pinch from the downturn in metals price, chiefly copper.
The government via its ENAMI state company and agency has put in place subsidy deals and
13

minimum prices for products that should keep the small/medium scale player in business and
jobs intact and while it doesn't really affect any of the stocks we cover apart from potentially
Amerigo (ARG.to) a small producer that may get to book an artificially high price for its copper
sales and better terms for some of its recent loan that's being used to expand production.
Peru: Community/Social Miner Friendly down one point, Geopolitical Optics down 1
point
There's a common thread in our "Top Four" LatAm mining countries this edition, and that's of a
geopolitical optics score that gets dropped by one point. What we've seen across the region in
the quarter is a general and generalized slowdown in mining activity, including lower growth
figures, jobs layoffs, lower tax harvests for governments, a drop in export dollars. The
perception hasn't been lost on the markets and country risk premiums are up across the board.
We who watch the juniors know that's it's been a tough sector for over two years, having
watched share prices drop and projects go into deep freeze due to the lack of funding
opportunities. It takes longer for the true effects of a recessive period to filter down into the
day-to-day workings of a producing mining company but that's where we find ourselves today,
the belly of the beast is now hurting, jobs are being lost and not replaced at an ever-quickening
pace.
The above is true for Chile, Peru, Mexico and Brazil. When it comes to Peru only, we see
another point subtracted from the total due to further deterioration in the "community social
miner friendly" category. Tia Maria rumbles on and despite all the best intentions voiced at
Perumin last month, there’s not much chance of getting resolution before the weak Humala
presidency is replaced next year. Then the latest high-profile case was just last week at Las
Bambas, where three (some reports say four) local community members died in violent clashes
with police and mine security forces. Their beef isn’t directly anti-mining, more about the way in
which the company has been operating at the project. Las Bambas last week boils down to a
fairly direct and crass “locals want more money” and with a government-led negotiation
committee now in place to try and reach a solution (8), that’s what they’ll probably get. Sorry
people, part of community realpolitik is the way they want a fat cheque as well, it’s not always
about clean water and bucolic paradises.
Peru is still a good place to go mining, but it’s clear that among casual observers both inside
and outside the country it’s a jurisdiction that’s picking up a bad reputation for community
problems wherever you might be. Weak laws and rules/regulations with several obvious
loopholes don’t help things at all, but neither do companies with a lack of empathy for the
concerns of local communities (Tia Maria a classic example of how-not-to-do-community-
relations).
Mexico: Geopolitical Optics down 1 point, Internal National Political Stability up 1
point
Strange the way these things happen. The flak being taken by the Peña Nieto presidency a
couple of years ago was all internal, with the corruption and favours scandal between his wife
(who’s looking and acting more and more like an ex-wife now, but that’s another story) and
millionaire construction companies. But at that time, the country and his right-wing leaning
administration was feted by the (mainly English language) foreign press for being hard on
crime, clamping down on organized crime/narcotrafficking through his “Plan Merida” and being
open for foreign investment and business.
Cut to 2015 and Peña Nieto is under fire from abroad due to the abject failure of Plan Merida
(narco-gang murder stats have shot higher, the shocking case of the 43 students in Guerrero,
El Chapo Guzman’s escaped and is still at large) as well as the failure of his FDI push.
Meanwhile at home, Peña Nieto has managed to stop the rot and is seen as in full control of the
executive and institutions again.
In mining, nothing much has changed with the country’s fate largely dancing to the rhythm of
the silver (and gold) price. That’s not good of course, but nobody in the country seems to be
14

blaming anything else but the metals price deck.
Brazil: Geopolitical Optics down 1 point, Internal National Political Stability down 1
point
Mention Brazil to your average North American stock market player and you’d hear about
BRICs, boom, yield and suchlike. The same country name immediately elicits “recession” as a
response in 2015, with “where did it all go wrong?” and “Petrobras corruption” hot on the heels
of that knee-jerk reaction. We’re not at the point where the Dilma Rousseff government is
about to fall, but calling it weak is the understatement of the year and with main PT Party
(government) people close to Dilma/Lula now under arrest on major orruption charges, it’s not
about to get any better. Its mining industry hasn’t suffered any worse than peer countries, it’s
the macro view that drags Brazil down two points this quarter.
Nicaragua: Unchanged
And be clear, unchanged is good. Nica continues to sit as a beacno of (relative) miner-
friendliness in Central America, unaffected by El Salvador/Costa Rica anti-mining sentiment
turned law, or the enormous upheavals in the Guatemala political scene. I only wish there were
a few more alternatives in the junior sphere than the companies operating there, as aside from
B2Gold I can’t find anything that suits my taste.
Dominican Republic: National government miner friendly down 1 point
The news that has seen Dom Rep get docked a point happened on September 22nd, (9), when
the National Congress approved a motion to get Barrick Pueblo Viejo (60% ABX, 40% GG) to
pay 5% of the company’s net profits to a investment fund run by the province in whch Pueblo
Viejo is located. The initiative is still a long way from becoming law because the country’s
President, Danilo Medina has to approve it first and there’s no word on which way he’ll jump,
but it’s a bad precedent of resource nationalism at the wrong time.
Colombia: FDI Friendly down 1 point, Geopolitical Optics up 2 points
Without doubt Colombia has brought the world the biggest and best political risk news from
LatAm this quarter, namely the breakthrough in negotiations between the government and the
FARC-EP terrorists as reported and considered in IKN333 last weekend. This alone is good
reason to bump up the Geopolitical Optics score by a hefty two points, as the feelgood factor
and the potential for a real cease-fire and eventual lasting peace between the two sides, the
last long-term conflict on the continent, would improve Colombia’s image far beyond its own
borders if they manage to close the deal.
Still, when mining is the subject the country remains as crazy as a box of drunken monkeys.
We’ve seen Colombia’s regional environmental authority in Antioquia give an implicit thumbs-
down to Continental Gold’s (CNL.to) Buritica project in that region, when the company decided
to move its EIA permitting away from the regional people and into the naitonal authority hands,
even though the very same Antioquia team ran and approved the Red Eagle (RD.v) EIA at its
San Ramon project. Even though anyone you talk to in Colombia say that dealing with regional
enviro bureaucracy isn’t easy, but it’s far easier than wading through the quagmire that the
national enviro people create. In short (and leaving aside my disdain for CNL the company and
its people) we’re once again left without a flagship gold project that Colombia might show the
world (San Ramon at 50k oz Au/annum is and always will be small).
Then there’s the current power struggle for the top job at the country’s main mining oversight
body, the National Mining Agency (ANM, Agencia Nacional de Minería), a fight that typifies
everything that’s wrong with teh country as two sides fight and cancel each other out, leaving
no room for progress or development between the political argy-bargy. This short note in
Colombia’ decent buisness media, Semana (10), does a good job on the story and explains how
after the exit of erstwhile head Natalia Gutiérrez, who was fired because she annoyed the
private sector by rescinding juicy inspection contracts with third party companies and handing
the inspection work over to her own ANM department. It was one of those decisions that goes
in the file marked “politically brave” (aka plug dumb stupid) because her boss the minister of
15

mining is a private sector mining guy at heart and eventually got her kicked out because she
kept money away from his friends. So that was then and this is now and the person the
government wants in to replace the ex-ANM head is one Silvana Habib, a member of the
presidential executive team and close friend of government minister María Lorena Gutiérrez (no
relation). However this choice is causing a big fuss in mining circles because they say Habib
knows precious little about the sector or anything mining, plus Habib is likely going to try and
keep those lucrative inspection contracts away from them again. Guess which is the real
reason? So the corporate bigwigs (plus in-pocket mining minister) have floated their own names
for the job (and to underscore, this job is a key one in the bureaucratic chain and mining
companies care who’s there). For example, they want the ex-head of public relations at Pacific
Rubiales in there (at which I simply laughed out loud), or the ex-boss at the ill-fated and now
fought over CB Gold. Jobs for the boys/girls sans pareil, we’re left with the choice of a
government candidate that will stop money flowing into the mining sector at a time when
companies are starving to death, or an alternative candidate that wil favour their own over all
others and keep the inner circle people funded without caring much what happens. Welcome to
Colombia.
Argentina: Community/Social Miner Friendly down one point
This time last quarter-end, while considering the race for the presidential election, the comment
was...
"Daniel Scioli will win, either in the first round of voting or in the second
round run-off between him and Macri."
...and that's something we can confirm this month. The first round vote is just three weeks
away and now as then, I'd still put the chances of Scioli has of winning the whole game in the
first round at 50% and if not, he'll get it in round two.
The interesting development, though somewhat secondary, is the rebound that Sergio Massa
has enjoyed in the polls, mostly at the expense of main Scioli rival Mauricio Macri. Once in
danger of dropping completely off the radar, Massa is now polling a solid 20% to 23% and with
a couple of scandals hitting the Macri campaign at this late stage (e.g. Fernando Niembro, who
is in turn a famous football commentator, a close friend of Macri’s and until recently also the
top candidate for Macri’s party in the key Buenos Aires province region, has stepped down from
the vote after being caught with his fat red hand in a very corrupt-looking cookie jar), it’s not
beyons the realms of the possible for Massa to stage a late challenge.
All the same, with the average of polls showing Scioli at a generally accepted 41%, Macri at
30% and Massa at 20% (perhaps 23%) the two most likely results are Scioli winning outright in
round one (he needs 45% of valid votes, opinion polls also take into consideration those who
say they’ll spoil their ballot, so it’s nip and tuck for the magic number) or Macri joining him in
round two, in which Scioli still wins.
The latest survey by decent pollsters
Rouvier & Asociados for October poll is
covered by the dots on the far right of the
interactive poll-of-polls tracker on this link
(11). Scioli is the blue dots, Macri the
yellow dots, Massa the green dots. The
Rouvier result from last week is basically
the same as the same company’s poll in
September.
To reiterate, all year I’ve called Scioli as
the next President with that opinion
firming up as we’ve gone along. That view
isn’t seeing any late challenges.
16

As for mining, we’ve seen bits and pieces of politicking on sector news, as befits the late stages
of any campaign. Recent examples include the Barrick Veladero cyanide solution spill, which
was jumped upon by the ecology-promoting parties as a fine example of why they should vote
for them and kick companies like ABX out of the country. Then last week the news (covered
above) about the Goldcorp (GG) Cerro Negro unions going on strike for better pay and
conditions. The chances of that event being unrelated to the October 25th election are precisely
zero and without doubt, the union leaders are using the opportunity to put pressure on the
local and regional politicos (who also fear for the future of their jobs, of course). Hence the
point docked from the score this quarter.
Guatemala: Internal National Political Stability down 1 point
The single point lost from Guatemala's score after losing its President to resignation through
corruption charges that stuck may seem light, but after the four point negative adjustment last
time when all hell had already kicked off in the country's political scene, the damage was
already mostly factored in. So this time around just one point docked from the political stability
score, as the Presidency of Otto Pérez Molina was already dead-duck in real terms and the
thing that matters now is whether a near-complete unknown in Jimmy Morales will become the
next Head of State on October 25th . The most likely answer to that is yes, with just the tough-
to-vote-for Sandra Torres standing in his way. What that will mean for the country is tough to
call, as an unknown in power could turn into a focal point of large-scale civil unrest, could see
stability as the ruling class take de facto rule from a weak figurehead and return the country to
the status quo, or any shade between those two extremes.
As mentioned on several occasions in recent Weeklies covering the downfall of Otto Pérez
Molina and the rise of Jimmy Morales, Guatemala is one place you should now run-not-walk
away from as a potential destination for mining investment. It's just too difficult to call what's
going to happen and there's no need to expose yourself to that added risk.
By the way, as mentioned a couple of weeks ago the recent striking down of the new 10%
royalty law on mining (and a couple of other economic sectors in Guatemala) is a non-event. As
soon as the new guys get in, we’ll see taxes bumped back up.
Potentially relevant countries
Guyana: Internal National Political Stability up 1 point
In the last edition, I wrote this about Guyana:
I'm now at the point where Guatemala may get swapped out of the main list
and replaced by Guyana.
After mulling it over I'm keeping the order of things the same in the official list, but as you may
have seen the line item for Guyana is now coloured orange-for-maybe. That’s what hedging the
bets looks like, or maybe it’s just me being chicken, but with the whole rise of Guyana dragging
my thoughts to a wider view that has me thinking about re-jigging the whole points scroing
system for next time I’m going to play it safe on Guyana this time around.
So without beating about the bush, I’ll state that I’ve heard a lot of positives about the attitude
the government of Guyana has adopted towards formal mining projects and FDI for the sector.
Not only are they talking the talk, unlike Ecuador they’re wlaking the walk and have put in place
practical measures that are wholly friendly towards mining. One such example comes from the
recently completed Guyana Gold (GUY.to) Aurora project, where the company built a custom
port on the banks of the nearest river to the project site to make transport of heavy plant and
materials easier. To this, the government decided to add a purpose-built customs post which
meant that GUY.to could miss out coming to port at Georgetown and ship straight to their own
port. It’s the type of detail that facilitates investment and creates good feeling. To this we can
add the positive reception that formal mining projects are getting from Guyana’s population.
17

The country may not have much in the way of serious. Large scale mining as yetm but there’s
plenty of informal mining going on, so he arrival of salary/waage-paying opportunities in a
sector that’s been hard and dangerous work for generations is welcomed.
But it’s not a perfect situation there for we investors, either. I’m taking baby steps (and not
diving in with a big positive shout-out this quarter because on the one hand there's no doubt
that Guyana is becoming an attractive place to go and play at mining, but on the other the
opportunities and options to play the country via the juniors is still somewhat limited. We’ve
seen the construction and commissioning of the Guyana Gold (GUY.to) Aurora project, which
has gone pretty much on rails (t the surprise of many, yours truly included) and although the
word out from the Troy Resources Karouni project isn’t so positive, the problems and glitches
they’ve hit are largely due to the company trying to cut corners, rather than a reflection of the
country’s risk. Aside from those, the problem with Guyana is the lack of plays available to us
though I must say at this point that I’m now tkaing a seocnd look at the Sandspring Toroparu
project and due to some interesting infrastructure development, it might not be quite as
mediocre as I’ve always thought it to be after all. We’ve also seen big industry hitter such as
Silver Wheaton (SLW) and the Frnak Giustra band of honchos move in on the stock, which
might not be to everyone’s taste but it’s a signal that bigger money is taking that project
seriously. And there tends to be good reasons for that.
Summing up, back when the Regional Risk Review began (now literally years ago), one of the
best success stories we tracked was the rise in reputation of Nicaragua as a minig destination.
What I see today is the same type of attitude adjustment about to happen towards Guyana. For
sure it’s not a perfect destination (none of them are) but what we have is the right mix; A
government and popualtion in favour of the arrival of mining FDI, a new flagship pathfinder
(GUY.to), other mines and projects in a (admittedly limited) pipeline, prospective for grassroots
exploration. Sandspring (SSP.v) may even be a stock to specifically watch, too.
Ecuador: Unchanged
The score unchanfed, because the country and its attitude towards mining activity remains
unchanged. The government of Rafael Correa (i.e. Rafael Correa plus a few people to transmit
his opinions via official ministry channels) remains a steadfast promoter and supporter of
“responsible mining”, wants to do deals and attract FDI. But outside the traditional (and
geographically limited) zones for mining activity where rural/jungle populations live, opposition
to development projects remains equally strong.
There are a couple of test cases going on at the moment, with one being the Loma Larga (ex-
Quimsacocha) project and the double-referendum on its advancement that are coming up soon
(se recent Weeklies for coverage on that). Then the long-delayed Mirador project, which last
week finally got a court order to remove the final hold-out families (two families, five people)
from its project location (12). It’s a potential headline-maker in the days to come, as when that
forced removal happens it has all the hallmarks of a situation that could quickly descend into
violence. We’ll see how it goes down and here’s hoping for no news (good news) in the next
couple of Weeklies on that one. So far 18 families have been removed from the project site and
once the last are re-located, we may even see the project start up. It’s already three years late
and has dropped off the radar of those who count potential copper supply deficit/surplus in the
years ahead, so if it ever gets of the ground we’ll have more concentrate going to China.
Uruguay: Unchanged
Uruguay has turned into one of the more frustrating stories in LatAm when mining is the
subject. Nowadays firmly in the grip of the environmentalists’ arguments on the industry
(normal range of green views, from cautious to outright knee-jerk anti-mine rhetoric) it missed
the window on getting its flagship Aratiri iron ore mine into produciton and and iron ore prices
and firmly in the dumpster, there’s no other serious project with another metal to take its place
in thw queue. As you may remember, a few years ago I had high hopes for Uruguay as the
next place, those have fallen away (these days Guyana is set fair to be the next Nicaragua).
18

Market Watching
Electrum moves on Kaminak, but...
Back in IKN323 dated July 19th we made the first mention of the new Thomas Kaplan 'Electrum
Special Acquisition Corporation' (ELEC) (ELECU), a public quoted-and-floated fund that's raised
a cool U$200m with a view to investment in third party companies and with a focus on precious
metals mining projects-
This week we got news (13) that Kaminak Gold Corp (KAM.v) was running a private placement
to the tune of $22.5m, by selling 27.44m units at 82c a shot (1 unit = 1 share + 1/2 warrant at
a $1.05 base). The placement is not for us mere mortals however, this time large investors
already on board such as Ross Beaty and Lukas Lundin were going to participate, but also new
money arrived in KAM.v via Kaplan and his "Electrum Strategic Opportunities Fund LP". That’s
not ELEC/ELECU. On closing the deal and assuming the warrants become fully paid up shares,
Electrum will own just over 10% of the junior and its main gig, the Coffee project in Yukon.
Three things arising:
1) It doesn't hurt any company's reputation to have names like Lundin, Beaty and now Kaplan
investing in you, these are heavy hitters in our little sector. First we've seen the Beaty/Lundin
duo go on board, now we see them willing to top up their respective investments and bring
another Top Table name in. Not shabby.
2) Regarding the IKN position on KAM.v, I've looked and passed on the project but it's one of
the better ones out there and it's certainly not one of the companies or projects I dismiss out of
hand. The on-paper economics aren't bad at all, there's plenty of exploration upside, the people
running the shop are serious. Personally I've passed previously because I'm leery about the
costs of working Yukon (particularly cost creep) and I'm nobody's idea of an expert on the way
the region ticks politically, either. However, I'll underscore my interest by saying it's a stock
that's been recommended and bought by several people in the mining world whose judgment
and opinion I respect greatly.
3) I'm interested that Kaplan has decided to move in on this project via the more closed fund,
rather than the public ELECU vehicle. Of course it's not anything different for the private fund
vehicle, this Electrum fund has invested in plenty of other gold and PM projects in this way over
the years. But with U$200m in the treasury and potentially burning a hole in the pockets of a
directorate that now has shareholders to answer to ("do something!"), it gets me wondering
about the strategic role Kaplan & Co has in mind for the publicly trading ELECU.
Buenaventura (BVN): Getting serious
I’m still working on my updated sheets re. BVN, but as noted last week I think this might finally
be a buy. There doesn’t seem much rush to purchase at the moment and I’d certainly be more
interested in BVN as a long-term position, so 50c here or there isn’t a worry this time. But I’d
now place it at or near the top of my shopping list, on first and second passes at least. More
next week if I’m comfortable enough.
Conclusion
IKN334 is done, we end with bullet points:
• Buenaventura (BVN) has kept my interest as a research project in the last seven days,
19

as has the market nibbling in Timmins Gold (TGD) (TMM.to). I like both.
• As we approach the next period of fundies numbers and the 3q15 produciton reports
from operating miners, the metals market is still trying to decide which way to jump. If
it does BVN, TMM.to and a whole bunch of stocks that deserve less success will all be
winners. Don’t take near-term stockpicking too seriously at the moment, it’s the price of
gold that matters, period.
• Minera IRL will need October and some of November to get its clear path to resolution
but be in no doubt, this is going to be one of those nice stories with a happy ending;
the good guys wins, the bad guys lose. A refeshing change.
• As for the Regional Risk Review, the main story has to be the rise and rise of Guyana.
Time to take that country far more seriously, it’s getting its mining ducks in line and
may become a hot zone for exploration.
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://finance.yahoo.com/news/minera-irl-limited-announces-resignation-154230754.html
(2) http://finance.yahoo.com/news/timmins-gold-reports-small-tear-100000512.html
(3) http://incakolanews.blogspot.pe/2015/09/b2gold-btg-btoto-news-el-limon-mine-in.html
(4) http://finance.yahoo.com/news/mcewen-mining-announces-management-change-205800405.html
(5) http://finance.yahoo.com/news/mcewen-mining-announces-stock-repurchase-204750429.html
(6) http://finance.yahoo.com/news/nevada-copper-provides-corporate-project-105654620.html
(7) http://www.juniorminingnetwork.com/junior-miner-news/press-releases/530-tsx/g/12148-goldcorp-announces-work-
stoppage-at-its-cerro-negro-mine.html#.VhA5bpjlvIU
(8) http://aminera.com/index.php/mineria-internacional/item/13842-las-bambas-seis-ministros-coordinan-con-
autoridades-agenda-tem%C3%A1tica-para-mesa-de-di%C3%A1logo.html
(9) http://elveedordigital.com/primer-plano/item/22409-diputados-aprueban-resolucion-pide-a-dm-solicitar-a-la-barrick-
gold-entregar-5-beneficios-a-fomisar
(10) http://www.semana.com/confidenciales-semanacom/articulo/puja-por-la-direccion-de-la-agencia-nacional-de-
mineria/444670-3
(11) http://www.andytow.com/blog/borra/?compe=Presidente%201ra%20Vuelta&pop=Nacional
(12) http://www.eldiario.ec/noticias-manabi-ecuador/369374-ministerio-familias-del-proyecto-mirador-seran-reubicadas/
(13) http://www.kaminak.com/news_releases/index.php?&content_id=640
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
20

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
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
21

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
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
22

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.
23