IKN #335Premium

The IKN Weekly
Week 335, October 11th 2015
Contents
This Week: Trade heads up, Mainstream decides to buy the sector and...
Fundamental Analysis: The five purchases in IKN328: A revisit.
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, Capstone (CS.to).
Low Cost Producer Basket: Overview, Franco Nevada (FNV), Buenaventura (BVN).
Regional Politics: Chile: Fourteen reasons, Argentina: Two weeks to the vote, Peru:
Opposition to Cañariaco project (DNT.to) still strong, Chile: Copper’s problems, Nicaragua: Pro-
mining and anti-mining marches in Rancho Grande, Mexico: Goldcorp (GG) plays politics.
Market Watching: Standard Tolling (TON.v): Of mice and men, Minera IRL (IRL.to) (MIRL.L)
and an EGM.
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
Trade heads up
In thr next couple of days I plan to sell my New Gold (NGD) shares and take the profit offered.
More details below, heads up completed.
Mainstream decides to buy the sector and...
...we're all suddenly geniuses again. As the ten day chart shows, the fun started last Friday on
the weak jobs number and when it came to last weekend and IKN334, my best call was that
we'd get a pump last week (got that right), it might have an effect (understatement) though
that over time it wouldn't hold unless gold moved up as well.
1

As things turned out, gold did move up and the U$1,157/oz finish on Friday has the look of a
price that's ready to float up to the U$1,200/oz level we last saw in June (though it feels much
longer ago than that).
As things turned out, the broad markets helped for once as well. Fed minutes were dovish,
Janet's "oh we'll raise in '16" comment of the previous week is now filed under "J" for Jawbone,
the S&P500 rebounded 6% in six sessions from last Friday. Add in a bullish call on large cap
commodity stocks from Morgan Stanley last week (porcine lip gloss duly applied and miners are
now "attractive") plus a study on copper that's predicting a lower than expected supply surplus
next year and you get the sort of chart you see above.
I tend to get cynical and knee-jerk reactionary at the mainstream and its views, particularly on
mining when the Top-Down brigade start ushering larger money into the sector on strategy
calls. It's the very essence of contrarian and that condition can be a blessing and a curse in
turns. As noted many editions ago in an intro (that I can't find after a search, I'd need to read
them all) being contrarian is a good thing, the tough part is knowing what to be contrarian
about. If the tide really is turning, it may be the moment to let yourself be swept by the tide of
the new and infinitely wiser money that moves in on the back of wise calls by wise fund
managers. One then simply goes with the flow, remains calm and holds everything while the
prices move higher.
Fundamental Analysis of Mining Stocks
The five purchases in IKN328: A revisit
The main analysis section of IKN328 dated August 23rd was dedicated to explaining why I was
about to purchase five positions in five stocks, two of which were additions to companies
already held and three were buys of new positions. Apart from the small purchase in Timmins
Gold (TMM.to) (TGD) in late September which was made on some specific company
fundamentals and newsflow, it's the last time I stuck my neck out and bought things in this
most difficult of markets.
We're now seven editions down the line and I'd like to update on the performance of those five
purchases, then award myself a scorecard number. What follows is first some context on the
trades' performance compared to the market, then a comment on each one and whether my
attitude towards them has changed in any way (though for MAX.to that kind of goes without
saying, having sold it as a loss a couple of weeks ago). We start with a simple chart, which
shows the performance of the five stocks bought, Lake Shore Gold (LSG.to) (LSG), Teranga
Gold (TGZ.to) (TGZ.ax), New Gold (NGD) (NGD.to), Midas Gold (MAX.to), alongside the gold
bullion ETF (GLD) and the junior mining ETF (GDXJ) for some reasonable context.
Relative performance of five purchases in IKN328, plus
Gold ETF (GLD) & junior ETF (GDXJ), August 23rd to date
40%
35% 32.8%
30%
25%
20%
15%
10%
5% 2.6% 2.1%
0.0% -0.2%
0%
-5%
-4.9%
-10%
-15% -11.4%
NGD LSG.to GDXJ TGM.v GLD TGZ.to MAX.to
source: Yahoo! Finance, IKN data
2

The visual here is fairly clear, New Gold (NGD) has turned out to be a very nice winner. Then
we have our trades LSG and TGM which have performed in-line with the ETF benchmarks GLD
and GDXJ, give or take a point or two either way. Then comes Teranga (TGZ.to), which has
underperformed since I added some to my position. Finally Midas Gold (MAX.to), which was the
smallest trade of the whole bunch and the one played as a too-cute call on a potential
newsletter market pump target. That didn't happen and I sold a couple of weeks ago at a large-
ish percentage loss.
Here's a chart put together with the same information, but in linear form on each component:
MAX.to is the clear underperformer, NGD the outperformer, the others are in a bit of a heap
around UNCH. Now for a few comments on each position.
Lake Shore Gold (LSG.to) (LSG). This was my biggest pruchas eof the five, adding a decent
slug to the LSG held previously and averaging up. Since then LSG hasn’t traded that well, even
though the newsflow has been good from the company.
The whole trade here is a buyout, with the most likely candidate GG. This in theory at least
makes LSG a stock that could do nothing for an extended period then put in the big win move
in just one day. I like the stock, its location and as Canadian junior golides are now all the rage,
it should eventually get its own love and move higher.
Teranga Gold (TGZ.to) (TGZ.ax). This addition was the second biggest purchase of the five
in cash terms and since the decision to buy more, TGZ has underperformed compared to the
general market (slightly) and to its own relative performance earlier this year when it was a hot
stock and had people talking about it all the time. The main problem seems to be its low-ish
guidance for 3q15 and perhaps 4q15.
New Gold (NGD) (NGD.to). This was smaller trade than either TGZ or LSG and the first of
three new positions in stocks, rather than addition to stock already owned.
Without beating around the bush NGD has performed very well as a trade, I’m up over 40% on
my position thanks to an even better entry price than was on display in IKN328 and as
metioned both above and below in today’s edition, I’m about to take those profits and turn the
trade into cold, hard cash. For more on why, see ‘Stocks to Follow’ below.
Midas Gold (MAX.to). I bought a small amount of MAX.to for what I supposed would be a
trget stock for a newsletter promotion, basically trying to second-guess a bunch of pump artists
3

(which is no reflection ont he company itself, I hasten to add). This one came with a strict sell-
by date of end September and when that last week of the month showed and nothing had
happened, I sold and took a small monetary loss which was around 10% in percentage terms.
Not a trade destined for the annals of history, but no real harm done.
True Gold (TGM.v). After buying this small position TGM basically flatlined aorund the 18c
and 19c range, though traded volumes were often decent. Then came the political uncertainty
in Burkina Faso from the attempted and botched coup attempt on the country’s President,
which hasn’t affected TGM per se, but got a whole bunch of people selling country exposure all
at the same time. TGM was one of the dumped stocks and it’s only now recovering from that
shock.
Discussion and conclusion
This can all be put down to one word, timing. Or two words if you like, ‘bad timing’. Or to push
the joke, “my bad timing”. NGD has saved the day and I did the right thing by cutting MAX.to
when I did (because it went a lot lower afterwards), but apart from those it’s fair to say that I
waded in too early and bought in late August when I would have been in better shape to have
waited until the end of September.
The other thing about timing is why this Fundamentals section exists at all. Up to around
Tuesday or Wednesday the intention was to cover Buenaventura here, but as that one has seen
last weeks value price disappear quickly, there’s little point at the moment and I’m left
frustrated. So this filler piece came to mind as I dwelled on just how bad my trade timing has
been recently.
Though I’m not going to be too harsh on myself as side from MAX.to which is closed, the other
four look good for the near future. LSG and TGZ have catch-up to play, NGD will look good in a
couple of days when cashed in, TGM is a small one that’s come back from a rocking political
boat in Burkina. So though my entry wasn’t great in any of them bar NGD, I see no reason to
throw in the towel on the three undecided movers.
Stocks to Follow
It was a good week for the 'Stocks to Follow' portfolio, of that there is no doubt, but we need to
state clearly that some of the components performed modestly compared to the strong gains of
some junior mining peers so there's not going to be any preening and virtual onanism on
display today.
Of the 16 open positions in the 'Stocks to Follow' basket, a hefty eleven of them registered
week-over-week gains (not listing them all), another four remained unchanged (TGZ.to, ATM.v,
LGN.v, IRL.to suspended) and just one stock was a weekly loser (FCV.v), so not bad at all.
Biggest percentage gains were found in New Gold (NGD up 27.3%), Starcore International
(SAM.to up 22.2%) and B2Gold (BTO.to up 13.5%) and all three of those give me a fuzzy warm
feeling.
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.
4

company Ticker this week Avg Price Reco date Current PPS Gain/Loss% Notes
TOP PICK
B2Gold BTO.to STR BUY C$2.17 12-sep-14 C$1.68 -22.6% Top Pick, 1st tgt $2.70
Metals Producers (in current order of preference)
Lake Shore Gold LSG.to buy C$1.07 07-apr-15 C$1.18 10.3% 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$0.988 -9.4% Recovering from lows
New Gold NGD selling U$2.18 23-aug-15 U$3.08 41.3% Target hit, taking profit
Timmins Gold TGD buy U$0.245 20-sep-15 U$0.274 11.8% New position, quick flip idea
Starcore Intl SAM.to spec buy C$0.12 10-jan-15 C$0.11 -8.3% 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
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$0.29 -74.8% 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$0.72 12.5% 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$0.18 0.0% Sm. pol risk hit sep'15
Focus Ventures FCV.v hold C$0.23 01-jul-12 C$0.15 -34.8% tgt 50c, phospate great value
Regulus Res REG.v hold C$0.30 06-apr-15 C$0.21 -30.0% 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 near term 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
Now for some notes on current basket stocks.
New Gold (NGD) (NGD.to): Selling. This has been a tough decision, but in the end I’m
going to go with my set target on NGD (as well as the chance to bag a decent profit in this
difficult year) and sell my NGD bought in late August for a nice near-term win. Though it must
be said, the way in which the stock rushed up to Friday’s close of U$3.08 suggests there may
be plenty more in the tank and I may be victim of seller’s regret down the line.
But anyway, I'm selling, taking the money and running so here’s a rundown starting with a
quick recall of the timeline:
• We first covered NGD in the NOBS report of IKN321 dated July 5th, in which it was
called interesting and a potential buy, but perhaps there was a better entry point to
come.
• Then in IKN328 dated August 23rd it was one of the five purchases called that day (see
5

above). The day after I got a decent U$2.18 entry point (though if I’d waited an extra
day or two sub-U$2 was possible).
• Then in IKN330 dated September 6th we ran an update report on NGD, taking a closer
look at its numbers and the potential upside at current gold prices. That piece came
with a target of U$3.00 to U$3.25 (officially settling at $3) and was based on asset
valuation of NGD at current gold (and copper) prices. By way of a reminder here's one
of the tables ripped from the anal ysis that day:
NGD: An asset-based price target estimate (U$)
Share price Market Cap P/BV ratio IKN adjusted P/BV
U$2.00 $1,020m 0.46 0.65
U$2.25 $1,148m 0.52 0.74
U$2.50 $1,275m 0.58 0.82
U$2.75 $1,403m 0.64 0.90
U$3.00 $1,530m 0.70 0.98
U$3.25 $1,658m 0.75 1.06
U$3.50 $1,785m 0.81 1.14
U$3.75 $1,913m 0.87 1.23
U$4.00 $2,040m 0.93 1.31
source: IKN calcs
The idea was to pitch its value at around 0.7X book value, which was a conservative type of
target that I considered reasonable and reachable at the time. And that's where we find the
NGD share price this weekend after its fine breakout run on Friday. So the main reason to sell is
that it’s hit my target, one of best ones I know. But I’m not averse to upping a target when hit,
so the choice here is to respect the recent opinion and guess that there won’t be much more
upside without outside fundy influences. Which brings us to the incognitos, the reasons why it
might move higher (and I leave cash on the table) which are:
1) I may be pitching too low with my NAV based estimates and the market may decide to value
NGD more richly. If so, and if it starts knocking on the door of a 1X P/BV ratio, we could see it
at U$4 and that would mean I'm about to leave a lot of cash on the table.
2) Gold may run higher. In fact I hope it does because a lot of my portfolio would benefit, but
the NGD target was absed on "gold at current prices" so where we are this weekend is at the
top of that range, but still inside it.
3) Pure momentum. The run on sentiment last week, especially Friday when it was at the very
front rank of winning metals stocks (see
chart right), suggests there may be more
to come. That’s perfectly posible and it’s
why (as usual) I’ll be watching the
market Monday and perhaps Tuesday
before picking my spot and price to sell.
The fear here is that it could go much
higher later in the week before running
out of steam and it could do, I know my
wekanesses as a trader and I’m
notoriously poor at micro-timing sales
and purchases.
Overall, I’m going to be chicken and take
some money off the table by selling my
NGD. The run has been quick and good,it’s only a small-ish position anyway, if gold improves in
the days to come I’m still largely long via other stocks, it’ll do the portfolio some good to cash it
6

up a little and nobody should ever complain about a 40% gain in a short period of time. A
decent result, this one.
Timmins Gold (TMM.to) (TGD): On Tuesday TMM announced (1) that it had fired its CEO
Bruce Bragagnolo (as well as removing him as a director, though they did at least thank him
“for his contributions” to the company...sweet). Then at the end of the NR we also got this
paragraph that as the week wore on became the focus of the company chatter:
In conjunction with the release of its third quarter financial results, Timmins intends to
provide an updated mine plan which reflects the current market conditions. In
accordance with International Financial Reporting Standards ("IFRS"), the Company is
reviewing the carrying value of its assets and anticipates that it will incur a significant
impairment charge in its quarterly financial results for the period ending September 30,
2015.
Seeing the back of (now ex) CEO Bragagnolo is a good thing, the guy made obvious bad
decisions (girst and foremost buying Newstrike) and his departure allows the company to go at
2016 with a clean slate. The initial reaction to Tuesday’s news was to pop the stock above
U$0.30, but then as people read below the good news of the CEO departure and considered the
pending impairment it tracked back and ended the week only slightly higher. I think that’s
slightly bizarre, anyone with a decent idea of this company’s numbers would have known that
an impairment were in order here, there’s nothing to fear on this score. With 285m shares out
and a book value (equity) as at 2q15 of just under U$280m (i.e. all assets minus all liabilities
according to the latest balance sheet), the math is easy:
• Book value per share is U$0.982
• Current market price U$0.274
• BV/ share ratio 0.29X
That’s a mile too low and although I firmly believe at least some of it may be due to the
artificially low price of the shares today (otherwise I wouldn’t be long), most of that is due to
the assets being caried at a higher value
than cruel reality. A write-down or
impairment is what should have happened
already, we know that TMM is biting the
bullet in the next quarter and that’s all
good. But it shouldn he curre’t come as a
surprise.
A BV/share ratio this low is indicative of a
dysfunctional company. As noted
previously, I’m not trying to pull the wool
over anyone’s eyes on this trade and I
know TMM isn’t the best thing out there.
But hell’s bells it’s cheap at the moment,
with all bad news now baked into the price it’s not going to take much to see it rally, as
underscored last week Goldcorp’s (GG) new sponsorship of TMM means its not going under at
any point in the near future. And now we have irrational concerns about write-downs that
anyone can see are necessary. I think 30c is just the first stop for this one when it starts
recovering the way it’s due to recover.
Lake Shore Gold (LSG.to) (LSG) and Teranga Gold (TGZ.to) (TGZ.ax): The
underperformers. I’ve stuck them together because we cover them above in the ‘Fundies...’
section and a quick note is all that’s required. This chart shows how the GDXJ benchmark
outperformed both our holdings last week, with TGZ particularly disappointing at UNCH.
7

Though I did take a mail from one reader who was concerned about the underperformance of
his TGZ shares, noted (i think correctly) that the recent company guidance towards the low end
of the production this year is probably weighing on the stock and asked whether he should
lighten. I replied that I think the key to TGZ in the upcoming 3q15 production-then-financials
reporting will be on costs. The low-end production is now baked in, but the reality of the mining
market in 2015 is that bottom line profits matter and costs do too, so if TGZ can come in with
the type of financial performanc ein 3q15 that I think is in the pipes (plus guide handily for
4q15) there’s plenty of space for the stock to rally, with or without further gold upside.
Dalradian Resources (DNA.to): Right on time DNA announced (2) the closure of its bought
deal placement last week, and it came with good news. Originally set to raise C$35m, the
vendors moved all the overallotment facility as well and gross proceeds came to C$40.25m.
That means the share count has moved to 214.2m, it also means that the deal was warmly
accepted and there’s none of the feared brokerage bag-holding out there.
The only thing DNA disn’t do was to rally, because its small 2c improvement to 72c still looks
depressed, particularly against the strong gins registered in plenty of other junior mining places.
Let’s see how things develop as the promo machine begins to roll out as of this week.
B2Gold (BTG) (BTO.to): There’s good and bad to report about BTO this week, so we’ll start
with the bad and how I underestimated the strength of the protest and blockade at the El
Limón mine in Nicaragua last weekend in IKN334. As a matter of fact, today Sunday marks the
14th straight day of the protest with the last ten of those keeping the mine shuttered. WE’ve
also seen the Nicaraguan authorities get involved in a (unfortunately typically) heavy-handed
manner, arresting the three ringleaders of the protests (the three union reps who were causing
trouble both before and after being fired by the company. The problem was in the manner of
the arrests, which reportedly involved baton charges at protest lines, beating up the men before
and during their arrests and stripping them naked before carting them off to the cooler. For
those of you with Spanish in your armoury, these three links provide decent coverage from a
number of angles (3) (4) (5). For those of you without Spanish there’s always Google Translate,
but I’ve tried to get the need-to-know stuff in this paragraph above.
You might say “Life in Central America” about the event and its deterioration (and you’d be
right) but it’s fuel to the fire of an already delivate situation and has done the mine no favours
at all. The company has been calling for calm and stating to the world that the three arrests
were for reasons unconnected to the mine (the warrants speak of damage to vehicles, attacks
on police officers etc) and that the three were also fired for just causes. But what really gets my
attention is the way in which the mining company can do no wrong in the eyes of the Daniel
Ortega government (also see Regional Politics below), the judiciary is quick to charge the
protesters (already ten people have been accused of crimes due to the disturbances (6)) and
8

the mainly pro-Daniel press has been critical of the protesters’ position as well.
So that’s the bad, the good is that the market doesn’t care about a two week stoppage at BTO’s
smallest operation (which is athe bit I got right last week) and at long last has rallied hard and
started to play a bit of catch-up. It was fun being a holder of the stock last week.
McEwen Mining (MUX): We now know what happened to Perry Ing:
TORONTO, ONTARIO--(Marketwired - Oct 5, 2015) - Kirkland Lake Gold Inc. ("Kirkland Lake
Gold" or the "Company") (KGI.TO), an operating and exploration gold company with operations in
Ontario, Canada, announces the appointment of Mr. Perry Ing, as Chief Financial Officer effective
November 2, 2015.
With all the signals Mr. Ing was headhunted, it’s a reasonable result for the MUX optics as well,
it indicates he wasn’t kicked out or came to loggerheads with the...errrr... on occasion difficult
Mr McEwen.
As for MUX the stock, it had a good week but as this chart shows, there’s now a clear “SEC
Ceiling” to the stock as it bumped its head against the U$1.00 level and failed to get over. The
problem at MUX is that even if it manages to clear
that level it will need to do so on strong volume
and momentum, else risk being dragged under
again. And what that suggests is we need solid
fundies numbers from the stock in the 3q15
production and financials in order to attract the
type of support it will need.
I recently played MUX on a rebound side bet and
did okay from the trade, selling at 92c. We’re now
up from that but I’m not in any hurry to dump the
core position, so for me it’s now a hold. But I’d say
to others that if you managed to buy any of the
cheap ones, just unde rU$1 is a good place to
take your profits unless you are like me and have
decided to hunker down for the longer-term on this
particular stock. Hold.
True Gold (TGM.v): We’re back at 18c again and
with a little extra in the way of volume, too. I
haven’t given up hope on this near-term play and if
18c now holds, the technicals are looking good.
9

Starcore Intl (SAM.to): At a 22% gain since last weekend a good week on the percentage
gain for sure, but it’s still only two cents in real terms and with the continued low volumes (no
day last week broke 100k shares traded) it’s still backwater stuff. SAM rebounded with the
market from a low price and that’s fine, it’ll need its own news before we can say it’s truly
stopped the rot.
Phoscan Chemicals (FOS.to): FOS still bouncing around the level at which I bought a few
months ago and managed to finish in green, which is fine by me on a purely cosmetic level.
We’re still waiting for news from the third party strategic review, the most likely thing to move
the stock on fundies. Volumes are still low but neither are they non-existant and it looks as
though someone is nibbling at this level.
The Copper Basket
After forty-one weeks of 2015, The Copper Basket is showing a 31.33% loss to level stakes.
company ticker price 1/1/15 Shares out Market Cap current pps gain/loss%
1 Capstone Min. CS.to 2.03 381.95 255.91 0.67 -67.0%
2 Reservoir Min. RMC.v 3.96 47.55 201.14 4.23 6.8%
3 NGEx Resources NGQ.to 1.17 187.71 97.61 0.52 -55.6%
4 Nevada Copper NCU.to 1.65 80.5 86.94 1.08 -34.5%
5 Copper Fox CUU.v 0.135 402.96 74.55 0.185 37.0%
6 Amerigo Res ARG.to 0.27 173.65 57.30 0.33 22.2%
7 Western Copper WRN.to 0.68 93.68 40.28 0.43 -36.8%
8 Hot Chili Ltd HCH.ax 0.16 333.11 33.31 0.10 -46.9%
9 NovaCopper NCQ.to 0.58 60.15 28.27 0.47 -19.0%
10 Panoro Minerals PML.v 0.295 220.64 27.58 0.125 -57.6%
11 Regulus Res REG.v 0.35 56.39 11.84 0.21 -40.0%
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 4.87 0.155 -49.2%
15 Coro Mining COP.to 0.045 159.37 3.19 0.02 -55.6%
NB: HCH.ax & MNC.ax priced in AUD$, rest CAD$ Portfolio avg -31.33%
It wasn't all positive, with five losers (NGQ.to, RMC.v, NCQ.to, MNC.ax, COP.to) to offset the
ten winners (CS.to, NCU.to, PML.v, WRN.to,
5% The Copper Basket 2015, weekly evolution
CUU.v, ARG.to, HCH.ax, REG.v, AQM.v, CCY.v)
0%
and a couple of the losers were heavy
-5%
percentage losses as well, namely Metminco
-10%
(MNC.ax down 20.0%) and Coro Mining
-15%
(COP.to down 20.0%), but this was definitely
-20%
a better week for the Copper Basket and the
-25%
upmoves were led by the big face-rip rally in
-30%
Capstone Mining (CS.to up 42.3% on
-35%
impressive volume) and followed by other big
moves in Copper Fox (CUU.v up 19.4%), Hot
Chili (HCH.ax up 17.7%), Catalyst Copper
(CCY.v up 14.8%), AQM Copper (AQM.v up
14.3%), Amerigo Resources (ARG.to up 13.8%) and Nevada Copper (NCU.to up 11.3%). So
without a doubt it was a good week for the average, rallying 3.67% and snapping the losing
streak in fine style.
As for copper prices, they popped again and this time over the U$2.40/lb barrier. The rise came
on the back of that previously mentioned bull call on minnig stocks from Morgan Stanley on
Wednesday (7), then a study from the International Copper Study Group Thursday (8) which
10
ht4naj ht81 ts1bef ht51 ts1ram ht51 ht92 ht21 ht62 ht01 ht42 ht7nuj ts12 ht5luj ht91 dn2gua ht61 ht03 ht31 ht72 ht11
source: IKN calcs

said oversupply wasn’t going to be as bad as people thought in 2016 due to mine closures.
Even the normally sceptical Andy Home over at Reuters put his bullish hat on and talked up the
sector in this note on Thursday (9) which is well worth a look. The result was a big pop end of
the week as new hot money piled into a sure thing....now where have I heard that one before?
We move to our regular warehouse tracking section:
• Total world copper stocks dropped again last week, this time down 12,861 metric
tonnes (mt) (-2.5%) to finish at 495,541mt. That's makes 21k tonnes dropped in two
weeks and a reasonably positive signal for bulls to latch onto.
• Shanghai stocks saw a very slight increase of 383mt (+0.3%) to 152,934mt which is
basically treading water.
• This time it was the LME stocks number that made the difference, down a big 14,200mt
(-4.4%) at 305,225mt this weekend.
• Comex warehouses changed moved up a little more and closed Friday up 956mt
(+2.6%) to sit at a recent record high of 37,382mt. I'm wondering this weekend just
when I might stop saying "no bigger" about this part of the world stocks system, but
for the time being it's still minor.
Here's the Shanghai-only tracker, which shows the last three weeks of relative flatlining after
the summer rise in stocks. The bulls in the audience would be happy enough for it to stay that
way until Christmas, I'd safely assume.
Shanghai Futures Exchange Warehouse Stocks, 2014/2015
260000
240000
220000
200000
180000
160000
140000
120000
100000
80000
60000
11
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
Capstone Mining (CS.to): I wasn’t going to mention any basket stocks this week, but it
would be remiss not to at least tip a hat towards Capstone and its impressive 42.3% rally last

week. I was again reminded how few people read balance sheets before hitting buy buttons
and we’ll see if CS can keep this one going when its 3q15 financials are reported.
The Low Cost Producer Basket
After 41 weeks, the 2015 Low Cost Producer Basket is showing a 13.77% loss to level stakes.
company ticker price 1/1/15 Shares out Mkt Cap (Bn) current pps gain/loss%
1 Goldcorp GG 18.52 830 12.02 14.48 -21.8%
2 Newmont NEM 18.90 528.08 10.00 18.94 0.2%
3 Barrick ABX 10.75 1164.67 8.86 7.61 -29.2%
4 Franco Nevada FNV 49.19 156.5 7.65 48.91 -0.6%
5 Agnico Eagle AEM 24.89 214.12 6.15 28.73 15.4%
6 Silver Wheaton SLW 20.33 403.75 5.83 14.45 -28.9%
7 Kinross KGC 2.82 1146.2 2.56 2.23 -20.9%
8 Buenaventura BVN 9.56 254.19 2.01 7.91 -17.3%
9 B2Gold BTG 1.62 926.68 1.20 1.30 -19.8%
10 Pan American PAAS 9.20 151.64 1.19 7.83 -14.9%
all prices in U$, using NYSE ticker prices Portfolio avg -13.77%
They all went up big time. Well, AEM “only” put on 3.4% (it seems to have a leading indicator
thing going on) and FNV “only” added 4.3%, but the other eight stocks in the basket improved
by over 10% and the real outsized gains from BVN (up 24.6%...no kidding) and KGC (up
21.1%) put many a junior to shame.
This was a full scale rebound rally and
agin, it had that air of being really
different, instead of just different.
In theory at least, you’d want to see
new large money move into the big
liquid mniers before it rotates into the
smaller names, juniors and explorecos.
Therefore even though this publication
is dedicated almost exclusively to the
junior end of the sector there’s no envy
or jealousy about the move enjoyed by
the big(ger) caps; this above is a shot
in the arm for all us mining players and yes, you guessed, I’m bullish about the future again.
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%
12
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 ht11
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
Franco Nevada (FNV): My one line comment about the deal FNV has struck with the
Antamina mine in Peru was the most visited single post of the week (10), an award it hardly
deserved (because there was virtually no content in it) but it shows how this deal between two
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 ht11
basket
gdx control
source: Google Finance, IKN calcs

names has captured the limelight. I’ve read several brokerage published numbercrunches on
the deal Friday night bad news and they’re all of an ilk, calling the deal “fair” and “win-win”, but
I think on a conceptual level it deserves far more praise than mere numbers can indicate. This
is exactly the type of deal FNV should be doing, locking down a generational stream with a
company that wants the cash and can afford to forward sell (de facto) one of its minor metal
products from the mine without sweating.
FNV’s share price performance this week reflects its conservative exposure to metals swings
compared to the traditional (and very beaten up) mining companies. We’re seeing it move from
“good idea” to the type of long-term holding that will become a must-own part of any metals
fund portfolio, the next BHP or Rio Tinto.
Buenaventura (BVN): In IKN334 last week I voiced my interest once again in BVN as a
potential trade, but once again I’m left eating my words. Compare my “...(t)here doesn’t seem
much rush to purchase at the moment... 50c here or there isn’t a worry...” to the face rip
U$1.56 gain (+24.6%) the stock delivered in the five trading days of last week. It’s mightily
frustrating and it’s not the first time that I’ve seen deep value in BVN slammed in my face,
there’s a Murphy’s Law thing going on between your author, his timing and BVN.
In so many words, the value I’d tentatively identified in the stock last week (but was too slow
to act upon) has disappeared into a puff of smoke. Rats.
Regional politics
Chile: Fourteen reasons
A well-publicized piece in Chile’s El Merciurio this weekend (11) has Chile’s Mining Council, via
its president Joaquín Villarino, complaining about the changes in laws and regulations that they
say are putting people off investment in Chile’s mining industry. Villarino lays it on thick and
tries to make Chile out to be a jurisdiction becoming evermore unfriendly towards mining,
stating that there are fourteen possible changes on the books in Chile’s laws and mining code
and that taken together, there “, exist(s) an internal uncertainly that they Chile may no longer
be the pin-up region for mining as it has been in previous decades”. He goes on (translated):
When you have at least 14 rule changes, some more important than others, that in some way
or another modify the jurisdiction under which mining activity is developed, it’s only to be
expected that an investor who is looking to put around U$8Bn into Chile for the next 30 years
postpones their decision untul many of these law proposals are resolved, because only then will
they knwo whether Chile is still attractive (as a mining destination).”
According to the El Mercurio report, here are the 14 items that are bugging Chile’s Mining
Council today:
1. Reforms in the tax laws
2. Reforms in the labour laws
3. Possible changes in the Constitution
4. Modification in the Environmental Impact permitting system (SEA)
5. Implementation of Covenant 169 regarding indigenous rights
6. Prohibition of undersea tailings
7. Changes in the labour laws for working at altitude
8. The new energy transmission law (in which the cost is added to energy demand)
9. Modification of the Glaciar Protection Law (in which glaciers will be deemed fresh water
reseves and sources of systems to ecosystems)
10. Water Law reform (water supply may be limited in function with public interest)
11. Laws against improper subcontraction of workers (in which third-party sub-contractors
will not be allowed)
12. Service to protected areas and biodiversity (which may restrict production activity)
13

13. A Congressional motion regarding conservation rights inside mining concessions
14. Waste management and responsibilities of the producer (which may bring costly
requirements for producers)
Argentina: Two weeks to the vote
Today is the last day before the opinion poll blackout comes into force in Argentina, two weeks
before the October 25th main day. We’ve see a raft of numbers and commentary from biased
individuals of all sides, but again the interest is more about who comes second to Scioli and
whether that second place will get close enough to stop the CFK Dauphin from winning outright
in the first round. Sergio Massa, in third place and between seven and ten points behind
Mauricio Macri for that key second place, has changed tack in the last few days and has
attacked Macri (after signing a non-aggression pact with him ealrier this year), saying that (12)
a vote for Macri is a wasted vote because he has no chance against Scioli in round two (and
frankly, Massa has a good point there).
Expect the noise in English press to ratchet up in the next two weeks (and expect it to be anti-
Scioli too). As for the big vote, it’s going to be Scioli first and almost certainly Macri seond, but
I’m now favouring Scioli to get the gap he needs and the presidency to be won in round one.
We’ll see.
Peru: Opposition to Cañariaco project (DNT.to) still strong
In a community meeting last week in the Cañaris zone of Lambayeque region Peru, location of
the Cañariaco copper project owned by Candente Copper (DNT.to), locals again ratified their
opposition to the project and said they would block or stop any type of exploration activity
attempted by the company. The leader of the community, one Rosa Pinza, told reporters (13),
“90% of community members in the latest meeting have raised their unanimous voice and
ratified their negative toward mining activity. We want now more than ever to defend our water
supply and springs in our zone”. I’m not sue how 90% becomes unanimous in the space of a
few words (and it reads just as weirdly in Spanish too) but I’m sure you get the idea. She went
on to say that the locals feeling deceived by the national government because nothing has ever
come from the round table meetings they chaired at which investment and public works were
promised. The local populations have also sent a letter to the Ministry of Energy and Mining
asking them never to grant concessions in the locality again and stop granting permits for
exploration work.
Chile: Copper’s problems
In an an institutional press release dated October 7th (14), Chile’s copper (and other metals)
beancounter body Cochilco told of the appearance of the entity’s executive VP Sergio
Hernández at The International Copper Study Group (ICSG) meeting in Lisbon, Portugal on
5th - 6th October 2015. As well as the new ICSG forecasts for tighter copper supply in 2016
(see Copper Basket above), Señor Hernández had his own moment in the sun when telling the
conference that it wasn’t only the copper price that had problems, but mining activity in
general. For sure I’m quite aware that this is hardly news for this esteemed audience (up to and
including you all giving me the collective “Duh”), but it’s a break from the narrative for the very
very official Chilean metals people and an indication of how keenly felt the downturn now is in
the world’s number one copper country (by a distance).
Nicaragua: Pro-mining and anti-mining marches in Rancho Grande
Alongside the goings-on and doings at the B2Gold (BTO.to) (BTG) El Limón mine in Nicaragua
(see ‘Stocks to Follow’ above), we saw another side of the institutional support that B2 enjoys
in the country in the town and area of Rancho Grande in the North. Last weekend October 3rd
(15) Daniel Ortega’s ruling FSLN party organized a pro-mining march in support of B2Gold and
its El Pavon project there. The marchers spoke of the benefits of mining and the financial
effects that jobs and royalties would bring to the area. By all accounts well-attended by local
party members (these things tend to be obligatory events for party members who get a free
lunch, drinks, t-shirts etc in return for their support).
14

Then three days later on October 6th anti-mining protesters ran their own protest march that
was attended by “thousands” according to the scant coverage it got. And then just a day later
in a total coincidence B2 announced (16) to the local press (nothing in the Reg Fs yet) that it
was starting a feasibility study on the El Pavon project which even managed to pick up a little
English language coverage (17). Here’s a snippet:
"... Project manager Pavon B2Gold in Rancho Grande, Aiser Sarria, said in the
same statement that "If the results of all mining studies show that you can
build a mine which is economically viable, socially responsible and
environmentally friendly, then B2Gold will request the relevant permits to
extract ore in Rancho Grande.'"
The interesting aspect is how the supposedly left-wing government is actively supporting
B2Gold, both in this project and in the disturbances at El Limón via the deployment of police
and armed forces personnel. Meanwhile, social movements with local support are either ignored
or outright repressed. Clearly the ruling Sandinista National Liberation Front has come a long
way since Daniel Ortega quite literally fought against the evil forces of capitalism and for
“Ideological Pragmatism” in the 1970s and 1980s.
Mexico: Goldcorp (GG) plays politics
Last week Acapulco (and why not?) played host to Mexico’s main mining conference, the “31st
International Mining Convention 2015” (XXXI Convención Internacional de Minería 2015) and
keynote speaker at the bash was Chuck Jeannes, head cheese at Goldcorp (a company with
significant exposure to Mexico, of course). His speech was interesting as it made three main
points, all of which were more political in nature:
He said that he’d like proof that the recently launched government Mining Fund (Fondo Minero),
that came into being in President Peña Nieto’s fiscal reform, is getting money to populations
and communities close to and most affected by mines. (18). He said (translated from report),
“We want to see that this moneyis getting to the communities, in the way the legislation was
planned. I hope that this process can be advanced urgently”. That’s a cool way of saying that
he thinks corruption is stopping the flow of cash to the people who most need it.
He then said that Goldcorp was against the proposed new taxes that Mexico wants to impose
on mining (19) and that the 7.5% (plus an extra 0.5% for precious metals) that funds the
Fondo Minero is more than enough already. He rounded off his message to Mexico’s great and
good by saying (20) that crime and insecurity was raising the costs of mining in Mexico and
called on authorities to do more to combat crime (organized or otherwise) and the rise of
narcotrafficking in the country. That one was interesting because at the very same conference
Pierre Alarie, who is Canadian Ambassador in Mexico, said that crime and insecurity is not a
critical matter for Canadian mining investment in Mexico. Ambassador Alarie said (quote
translated (21)), “It’s not a big problem, it’s a problem which we have to face but it’s not an
important problem...the question of insecurity is an important one in Mexico butit’s not critical
for Canadian investment”. Another fool put in charge.
Market Watching
Standard Tolling (TON.v): Of mice and men
The announcement last week (22) that Standard Tolling (TON.v) has agreed a merger with Inca
One (IO.v) brings to an end my idea of buying TON.v shares. For one thing, it was the right call
to watch and wait to see if the financing deal the company was trying to put together would
close correctly because a clear part of the implied message in the NR is that TON.v couldn’t
agree terms on the deal and the IO.v offer was some kind of least-worst alternative.
For another, I’ll never invest a penny in any company run by Edward Kelly. Suffice to say on
this point that I strongly believe he does not have the best interests of shareholders as one of
15

his main business values.
Minera IRL (IRL.to) (MIRL.L) and an EGM
In last week’s episode of the IRL Soap Opera entitled A short update on Minera IRL (MIRL.L)
(IRL.to), I finished the piece by writing:
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.
This weekend we know that an Extraordinary General Meeting (EGM) has been called by a
group of Concerned Shareholders representing a little over 10% of all shares held. We know
that because on Friday I broke the news on the blog in the morning (23) and that very
afternoon the company announced the following in its NR (24). Here’s the body of the NR and
note the words I’ve bold-typed/underlined in the text:
LIMA, PERU--(Marketwired - Oct 9, 2015) - Minera IRL Limited ("Minera IRL"
or the "Company") (MIRL.L)(MIRL.L)(IRL.TO) announces that a group of
shareholders ("Proposing Shareholders") have requested the Company to call
for an Extraordinary General Meeting (EGM).
The Proposing Shareholders are seeking to requisition an EGM to consider
special resolutions to appoint six new directors: Messers. Leonard Harris,
Julian R. lngham, Diego Benavides, Jorge L. Ramos, Frank S. O'Kelly and
Jesus A. Lema and to remove Messers. Robin Fryer, Douglas Jones and
Jaime A. Pinto as directors of the Company. If successful, this would have the
effect of removing all of the independent non-executive directors and replace
them with six appointees of the Proposing Shareholders.
The Company is currently considering this request and a further
announcement shall be made in due course.
Three things:
1) The word is not “Messers.”, it’s “Messrs.”
2) His last name is not “Ingham”, it’s “Bavin” (you can see why that mistake might be
made by reading Mr. Bavin’s CV section below)
3) The correct grammar in this case is not “replace”, it’s “replacing”.
Now I’m not the best in the world about weeding out my own typos (as you well know, IKN
reader/sufferers), but to make a name mistake, a repeated spelling mistake and a grammar
error in such a short NR indictes it was written in a hurry by someone who doesn’t have a
strong command of the English language. That would be COO Eric Olson and that would be
because neither he nor the company had any intention on Friday of telling the market the news
they had in their possession since Wednesday October 7th and only did so because the
regulatory authorities read the IKN post Friday morning and got in contact with the company (it
was fun to watch the TSX crawl all over the blog that morning, then hits from Fasken, then a
couple of other legal buffets, then IRL hits from Lima). So I enjoyed all that ☺.
With the news out, we can now consider what happens and to start that, we go with the real
documents. I managed this weekend to get my hands on a paper copy of the EGM resolution
documents from one of the group of concerned shareholders (not telling you which one). As
usual in such cases the documents are long-winded and full of legalese, but the bottom line
16

information in held in three sections.
1) The Special Resolutions (there are eleven of them)
2) The rationale for calling the EGM (there are six)
3) The CVs of the proxy slate directors (there are six brief CV overviews here)
Therefore I’ve typed out as faithfully as possible (same formatting etc) the contents of the
three main parts, starting with the Special Resolutions:
SPECIAL RESOLUTIONS
1. THAT recognising the concerns which have been raised in respect of the management of
the Company and the proposal to bring about a change in such management pursuant to
the following resolutions and that it being considered to be in the best interests of the
Company that the business of the Company and its subsidiaries and affiliates be preserved
until such management change proposals have been considered at the EGM and
notwithstanding the terms of Article 27 or any other provisions of the Articles, that during the
period from the receipt of notice of the requisition of the EGM until the date of the EGM the
Company shall not and shall not enter into any agreement or arrangement to, and the
Company shall procure that its subsidiaries and affiliates shall not and shall not enter into
any agreement or arrangement to, directly or indirectly dispose of any of its or their
business, assets or operations (including without limitation any interests held in any mines)
at any time, that any purported disposal is not approved by the Company and is to be
terminated, save only to the extent that the board of directors as constituted immediately
following the EGM may resolve otherwise.
2. THAT Robin Fryer be removed as a director of the Company with effect immediately
following the conclusion of the EGM, notwithstanding any provision to the contrary in the
Articles.
3. THAT Douglas Jones be removed as a director of the Company with effect immediately
following the conclusion of the EGM, notwithstanding any provision to the contrary in the
Articles.
4. THAT Jaime Pinto be removed as a director of the Company with effect immediately
following the conclusion of the EGM, notwithstanding any provision to the contrary in the
Articles.
5. THAT any other person appointed as a director of the Company prior to the conclusion of
the EGM be removed as a director of the Company with effect immediately following the
conclusion of the EGM, notwithstanding any provision to the contrary in the Articles.
6. THAT Leonard Harris Littlejohns be appointed as a director of the Company with effect
immediately following the conclusion of the EGM, notwithstanding any provision to the
contrary in the Articles.
7. THAT Julian Richard Frank Bavin Ingham be appointed as a director of the Company with
effect immediately following the conclusion of the EGM, notwithstanding any provision to the
contrary in the Articles.
8. THAT Diego Francisco Helge Pablo Christian Benavides Norlander be appointed as a
director of the Company with effect immediately following the conclusion of the EGM,
notwithstanding any provision to the contrary in the Articles.
9. THAT Jorge Luis Ramos Felices be appointed as a director of the Company with effect
immediately following the conclusion of the EGM, notwithstanding any provision to the
contrary in the Articles.
17

10. THAT Frank Sidney O'Kelly Bowskill be appointed as a director of the Company with effect
immediately following the conclusion of the EGM, notwithstanding any provision to the
contrary in the Articles.
11. THAT Jesus Armando Lema Hanke be appointed as a director of the Company with effect
immediately following the conclusion of the EGM, notwithstanding any provision to the
contrary in the Articles.
The rationale for calling the EGM
Next up, here are the arguments being used in the filing against the current board of directors:
Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Further to the annual general meeting of the Company held on 27 August 2015 ("AGM"), we are
very concerned with the Company’s current financial and trading position, the relationship with
the Ollachea community (“Community”), and the performance of the directors of the Company.
The following issues, among others, became apparent at the AGM, as well as consequence of
the recent actions taken by the board:
(a) Mismanagement: The actions taken by the board over the last weeks (led by its former
chairman Mr. Daryl Hodges) have damaged the relationship with the Community, have
caused a corporate governance crisis within the Company and have put in serious jeopardy
the development of the Ollachea project. Said conduct has created concern and doubts
among the shareholders as to whether the board is capable of properly managing the
development of the Ollachea project.
(b) Community: The boards´ decision to have Mr. Hodges directly renegotiate with the
Community caused serious distress to the relationship with the Community. This affected to
the point that it denied any authorization for the Company to continue with the drilling
campaign, being unacceptable.
(c) Corporate Governance Crisis: Due to the actions taken by the board, the Company is
involved in a corporate governance crisis that has generated (i) the board’s decision to
dismiss Mr. Diego Benavides as the interim CEO of the Company, (ii) the overwhelming
vote (more than 90%) by the shareholders not to re-elect Mr. Hodges as chairman of the
board, and (iii) the suspension from trading on the AIM market. Following the removal of Mr.
Hodges as director, the remaining directors appointed Mr. Jaime Pinto as new director
hours after the AGM ended. While we acknowledge that the Company’s articles of
association provide that there should be at least three directors at all times, a few hours is
not sufficient time to adequately evaluate a candidate. The board should have taken due
time to consider additional candidates.
The decision not to re-elect Mr. Hodges and the subsequent appointment of Mr. Pinto as
director have proven insufficient to restore the shareholders’ confidence on the board. It is
in the best interest of the shareholders to replace all current members of the board with new
directors.
(d) Increase of Number Directors: Three board seats are insufficient for the Company, as was
evidenced in the AGM when the board was left temporarily with only two directors. The
board number of seats should be increased to Six.
(e) Dismissal of Mr. Benavides: The dismissal of Mr. Benavides as interim CEO is based on
recently alleged anonymous whistleblower cases. During the AGM, the board explained that
the anonymous allegations against Mr. Benavides were not investigated or proven, but
nonetheless the board considered it appropriate to remove him from his position as interim
CEO. Material questions from shareholders in connection with the dismissal of Mr.
Benavides were repeatedly made at the AGM, but no convincing answers were provided.
Mr. Benavides has not been given an opportunity to answer the allegations against him and
18

has not even been formally informed of what are these allegations. Further, even after being
dismissed as Interim CEO due to the alleged anonymous whistleblower cases, Mr.
Benavides continued acting as General Manager and Executive Chairman of Minera IRL
S.A. and Compañía Minera Kuri Kullu S.A., which on one hand recognises his importance
to the business, but on the other calls into question why he was removed from his office as
interim CEO in such a manner. We feel confident that the allegations held against Mr.
Benavides will be ultimately declared unfounded and we believe that he continues to be a
valuable asset for the development to the Company.
(f) The purpose of these appointments is to provide the Company with a new board with
experience developing mining projects in Peru, to examine and to report on the Company’s
affairs and to establish a more stable management.
The CVs of the proxy slate directors
Finally, here are the brief CVs of the six people nominated as the new directors ready to replace
the current three. The full documentation has the extended CVs of all six, but the brief version
as contained in the main filing is more than sufficient for our purposes:
(a) Julian Richard Frank Bavin Ingham has more than 30 years of experience in mining (27
years working at Rio Tinto), former CEO and Director of Pan Global Resources and
currently Director of Prism Resources and Exeter Resource Corp. He holds a MSc degree
in Mineral Exploration from the Imperial College.
(b) Jorge Luis Ramos Felices has more than 20 years of experience in finance. He is the CEO
of COFIDE (Peru’s state-owned second-tier development bank). He holds a law degree
from Universidad de Lima and a MBA from Universidad Peruana de Ciencias Aplicadas.
(c) Leonard Harris Littlejohns has more than 45 years of experience in mining. He is the
Chairman of Resource Development Inc. and is a former director of Sulliden Gold Corp.,
Glamis Gold, Alamos Gold, Corriente Resources, among others. Holds a metallurgy
degree from Mount Morgan Technical College.
(d) Frank Sidney O´Kelly Bowskill has more than 45 years of experience in mining. He
previously worked for Exxon, Anaconda and Rosario Mining and served as an officer for JP
Morgan and a partner of Elders Finance acting as Director for Glamis Gold, Alamos Gold,
among others. He serves currently as director in Los Andes Copper and Buena Vista Gold.
He holds a mining engineering degree from Imperial College London.
(e) Diego Francisco Helge Pablo Christian Benavides Norlander has more than 36 years of
experience in mining. He is currently General Manager and executive chairman of Minera
IRL and Compañía Minera Kuri Kullu and is a former director of Minera Newcrest Peru and
Minera Mount ISA Peru. He holds a Law degree from Universidad Nacional de San
Marcos.
(f) Jesús Armando Lema Hanke has more than 25 years of experience attending many clients
in corporate matters, being actually partner at Thorne, Echeandia & Lema Law firm. He
holds an International Economic Law in the Universidad Catolica Peru (1999) with
specializations in Corporate Law, Stock Market, Foreign Investment.
And now some comments on the whole document and process.
First up an item that needs to be stressed before any other: As all the resolutions in the EGM
are classified as “special resolutions”, they will all need 2/3rds majority of votes (i.e. people
voting in person or voting by proxy) in order to pass. What that means in real terms is to
kick out Team Hodges, the concerned shareholders will need 2/3rds of the votes in
every resolution. In my opinion that isn’t a given, it means this fight isn’t over yet and every
vote will count. If you are a shareholder of Minera IRL, you’ll know what my baseline
recommendation is on this matter.
19

I’m told that with the handing over of the proxy slate material, we’re now in a legal process
with a specific time limit before the EGM must be called. Team Hodges may try delaying tactics
in order to postpone the vote but assuming the normal course, the EGM must be held within six
calendar weeks of when the clock started last week. Again in real terms, the EGM has to
happen before the end of November so yes, we’re talking weeks rather than months now.
In my conisdered opinion, the six-points in the rationale behind the proxy give plenty of good
reason to kick out this board of directors.
Diego Benavides is nominated as one of the directors. I know that Benavides’ preferred position
would have been to become CEO of the company again rather than a director, as he told me
directly early on in this process exactly that. When I asked him about this during the week
(once the proxy was public knowledge, of course) he told me that it’s a compromise he had to
make in order to get the other members of the slate on board. Which is fair enough.
I find the CV of Julian Bavin interesting, considering that he was with Rio Tinto for 27 years and
that multinational is IRL’s biggest single shareholder with nearly 20% of shares outstanding.
Another interesting name on the list is Jorge Ramos, head of Peru’s quasi-State owned COFIDE,
the people who have agreed to finance the Ollachea project (and have already forwarded $70m
in bridge loans). That’s a strong support for the new board and any deal that will fund the
development of the mine right there.
The other members of the board slate more than pass muster, Team Benavides has put
together a decent team with plenty of mining and Peru experience.
To sum up, barring some some of legal challenge that ties up the EGM on a tehcnical this-or-
that, the stage is now set and we’re about to get resolution in the sorry affair of IRL in 2015.
The next few weeks will likely see the normal sot of he-says-she-says mudslinging from one or
both sides as they try to influence shareholders and their vote, but the fact that Benavides has
managed to put together a strong proxy slate under what might otherwise be difficult
conditions (if any of the false rumours and salacious gossip about his acts as company head
were true) is its own testament as to what the other members of the proxy slate board have
decided. They’re putting their reputations on the line by backing Benavides at this point which
means they must be very confident that the charges laid against him by the nefarious usurpers
we know as Team Hodges are a waste of time (particularly the Peruvians on that slate).
However, be clear that reaching 66.67% on all resolutions is nobody’s idea of a given, so if you
have a vote I strongly suggest you make it count.
Conclusion
IKN335 is done, we end with bullet points:
• New Gold (NGD) worked well as a trade, I’ll take the money and run thanks.
• With the publication that there’s an EGM and a new slate of directors waiting in the
wings, the end of this sordid IRL affair is now in sight. Make your vote count and we
can all get back to supporting a company building a mine, instead of fending off
parasites.
• More production number should flow this week and they should be interesting ones.
I thank you in advance for any feedback. Our Top Pick stock is B2Gold (BTG) (BTO.to). Flash
20

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/timmins-gold-corp-announces-leadership-142618539.html
(2) http://finance.yahoo.com/news/dalradian-closes-c-40-million-131047123.html
(3) http://aminera.com/index.php/mineria-internacional/item/13974-incrementa-incertidumbre-en-mina-el-
lim%C3%B3n.html
(4) http://noticias.lainformacion.com/economia-negocios-y-finanzas/mineria/denuncian-detencion-de-lider-de-protestas-
contra-minera-canadiense-en-nicaragua_ucFvtMxPkodTFPCoeQWER3/
(5) http://www.nicaraguahoy.info/detenidos-tres-sindicalistas-en-mina-el-limon/
(6) http://noticias.lainformacion.com/economia-negocios-y-finanzas/mineria/fiscalia-de-nicaragua-presenta-cargos-
contra-10-personas-por-disturbios-contra-minera_aae0pVJqWKag0EKhjIgQ27/
(7) http://blogs.wsj.com/moneybeat/2015/10/07/turning-tide-morgan-stanleys-bullish-on-miners/
(8) http://www.icsg.org/index.php/111-icsg-releases-latest-copper-market-forecast-2015-2016
(9) http://www.reuters.com/article/2015/10/09/us-copper-balance-ahome-idUSKCN0S12T320151009
(10) http://incakolanews.blogspot.pe/2015/10/franco-nevadas-fnv-deal-with-antamina.html
(11) http://aminera.com/index.php/component/k2/item/13979-mineros-advierten-catorce-cambios-regulatorios-que-
mantendr%C3%ADan-paralizadas-las-inversiones.html
(12) http://www.lanacion.com.ar/1835511-a-15-dias-de-las-elecciones-macri-y-massa-se-cruzaron-por-el-ballottage
(13) http://rpp.pe/peru/lambayeque/pobladores-de-canaris-continuan-la-resistencia-minera-noticia-
903395?ns_source=self&ns_mchannel=portada.home&ns_campaign=content.cronologico&ns_linkname=43
(14) http://www.cochilco.cl/
(15) http://www.nicaraguahoy.info/fsln-respalda-empresa-minera-en-rancho-grande/
(16) http://mineriaenlinea.com/2015/10/minera-b2gold-realiza-estudios-de-factibilidad-en-rancho-grande/
(17) http://www.centralamericadata.com/en/article/home/Mineral_Exploration_in_Nicaragua
(18) http://www.elfinanciero.com.mx/empresas/goldcorp-pide-pruebas-de-que-recursos-del-fondo-minero-llegan-al-
pueblo.html
(19) http://pulsoslp.com.mx/2015/10/10/empresas-mineras-se-oponen-al-incremento-de-impuestos-al-sector/
(20) https://mexico.quadratin.com.mx/Inseguridad-eleva-los-costos-en-la-mineria-reprocha-Gold-Corp/
21

(21) http://www.81siete.com/acapulco/2189-inseguridad-no-es-tema-critico-para-inversion-minera-canadiense-pierre-
alarie
(22) http://finance.yahoo.com/news/inca-one-gold-corp-acquire-162008200.html
(23) http://incakolanews.blogspot.pe/2015/10/the-directors-of-minera-irl-irlto-mirll.html
(24) http://finance.yahoo.com/news/minera-irl-limited-announces-group-180359274.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
22

Stocks To Follow Closed Positions, 2012
Closed in 2012 closed close PPS
Soltoro SOL.v jan'12 C$0.87 07-nov-11 C$0.94 8.0% cash moved to BCM.v
Gold-Ore Res GOZ.to feb'12 C$0.84 13-oct-10 C$0.98 16.7% trade closed on ELG.v offer
Minefinders MFN feb'12 U$11.68 17-nov-11 U$14.80 26.7% target made, trade closed
Iron Creek IRN.v mar'12 C$0.58 26-sep-10 C$0.31 -46.6% time up on small bad trade
U.S. Silver USA.to apr'12 C$2.18 15-mar-12 C$1.86 -14.7% ST trade no good, cut loss
Augusta Res. AZC.to may'12 C$3.10 29-jan-12 C$2.07 -33.2% bad mkt, bad trade cut loss
Bellhaven BHV.v may'12 C$0.50 22-sep-10 C$0.28 -44.0% new mgmt not impressive
Zincore Metals ZNC.to may'12 C$0.325 29-jul-11 C$0.17 -47.7% bad mkt, bad trade cut loss
Soltoro SOL.v may'12 C$0.70 18-mar-11 C$0.41 -41.4% bad mkt, bad trade cut loss
U.S. Silver USA.to aug'12 C$1.78 27-jul-12 C$1.36 -23.6% fail ST trade close pre split
Estrella Gold EST.v aug'12 C$0.91 27-mar-11 C$0.14 -84.6% Closed on port realignment
Fortuna Silver FVI.to sep'12 C$1.07 03-may-09 C$5.32 397.2% sell call $6.17/ Mar25
Strait Minerals SRD.v oct'12 C$0.125 09-dec-11 C$0.12 -4.0% closing coverage til FY13
Sunward Res SWD.to oct'12 C$1.47 13-mar-11 C$1.21 -17.7% sold, took loss
Gold Res Corp GORO oct'12 U$21.47 09-sep-12 U$17.40 19.0% Short trade closed
Yellowhead Min. YMI.to nov'12 C$1.00 01-apr-12 C$0.63 -37.0% sold, took loss
Primero Mining PPP nov'12 U$7.26 07-oct-12 U$6.73 7.3% Short trade closed
Bear Creek Min. BCM.v nov'12 C$3.38 07-nov-11 C$3.72 10.1% Took small profit
Vena Resources VEM.to dec'12 C$0.70 31-may-09 C$0.18 -74.3% Failed trade (caps F)
Galway Res GWY.v dec'12 C$2.19 24-nov-12 C$2.30 5.0% closed good ST arb trade
Stocks To Follow Closed Positions, 2011
Closed in 2011 closed close PPS
Sunward Res SWD.v jan'11 C$1.05 21-nov-10 C$1.63 55.2% target made, trade closed
Serengeti Res SIR.v mar'11 C$0.245 05-dec-10 C$0.285 16.3% sold pre-tgt, ST trade fail
Fronteer Gold FRG apr'11 U$2.37 03-may-09 U$15.24 543.0% buyout, trade closed
Minefinders MFN apr'11 U$9.09 07-nov-10 U$16.89 85.8% target made, trade closed
Metalline Min. MMG may'11 U$1.04 26-jan-11 U$0.89 -14.4% exit, resource disappointed
Peregrine Met PGM.to jul'11 C$0.87 06-mar-11 C$2.60 198.9% buyout offer, closed
Dynasty Metals DMM.to jul'11 C$4.20 03-may-09 C$2.85 -32.1% Sold. Fail. Move on.
Aura Silver AUU.v aug'11 C$0.22 13-oct-10 C$0.16 -36.4% Bad pick. Take loss
U.S. Silver USA.v aug'11 C$0.52 26-jan-11 C$0.71 36.5% closed to make room
B2Gold Corp BTO.to sep'11 C$2.80 12-may-11 C$4.27 52.5% target made, trade closed
Bear Creek Min. BCM.v sep'11 C$3.80 27-may-11 C$4.17 9.7% macro sell call victim
Minefinders MFN sep'11 U$14.70 10-aug-11 U$15.15 3.1% macro sell call victim
Great Panther GPR.to sep'11 C$3.03 22-aug-11 C$2.64 -12.9% macro sell call victim
Fortuna Silver FVI.to sep'11 C$1.07 03-may-09 C$5.36 400.9% sold 20%, macro sell call
Focus Ventures FCV.v nov'11 C$0.40 20-apr-10 C$0.20 -50.0% cut losses, bad trade
Regulus Res. REG.v dec'11 C$1.17 14-aug-11 C$0.52 -55.6% cut on news of poor 43-101
2009 and 2010 closed positions in appendices below
23

Stocks To Follow Closed Positions, 2010
Closed in 2010 closed close PPS
B2Gold Corp BTO.to Jan'10 C$0.88 08-nov-09 C$1.49 68.2% target made, trade closed
Radius Gold RDU.v Jan'10 C$0.18 23-aug-09 C$0.40 122.2% target made, trade closed
MAG Silver MVG mar'10 U$5.60 23-nov-09 U$7.28 30.0% closed in pdac week
Riverside Res RRI.v mar'10 C$0.435 20-sep-09 C$0.60 37.9% closed in pdac week
Amarillo Gold AGC.v mar'10 C$0.81 31-may-09 C$0.70 -13.6% closed in pdac week
B2Gold Corp BTO.to apr'10 C$1.24 18-feb-10 C$1.50 21.0% target made, trade closed
Lumina Copper LCC.v apr'10 C$0.84 14-jun-09 C$1.55 51.2% total position now sold
Troy Resources TRY.to may'10 C$1.10 03-may-09 C$2.25 104.5% sold on negative results
AuEx Ventures XAU.to may'10 C$2.51 24-may-09 C$3.38 34.7% trade closed
Nevada Copper NCU.to jun'10 C$3.27 14-mar-10 C$2.03 -37.9% need to lower Cu exposure
Carpathian Gold CPN.to jun'10 C$0.39 14-mar-10 C$0.35 -10.3% too exposed to cap raising
Amerix PM Corp APM.v jun'10 C$0.065 08-nov-09 C$0.05 -23.1% victim of macro bear
Antares Minerals ANM.v jun'10 C$1.42 06-dec-09 C$2.10 47.9% sold half
Vena Resources VEM.to jun'10 C$0.37 31-may-09 C$0.23 -37.8% sold half
Minera Andes MAI.to sep'10 C$0.75 28-jul-10 C$0.95 26.7% ST trade closed
Gold-Ore Res GOZ.to sep'10 C$0.52 01-aug-10 C$0.75 44.2% target made, trade closed
B2Gold Corp BTO.to sep'10 C$1.45 25-may-10 C$2.01 34.5% target made, trade closed
Blue Sky Uran BSK.v oct'10 C$0.41 19-may-10 C$0.22 -46.3% v small v bad trade closed
Dia Bras Expl DIB.v oct'10 C$0.14 30-aug-09 C$0.35 150.0% target made, trade closed
S. Amer. Silver SAC.to nov'10 C$1.38 24-oct-10 C$1.60 -15.9% loss on short, small fail
Ventana Gold VEN.to nov'10 C$7.92 27-jun-10 C$13.51 70.6% trade closed on buyout
Lumina Copper LCC.v nov'10 C$1.42 11-aug-10 C$3.65 157.0% trade closed
Antares Minerals ANM.v dec'10 C$1.42 06-dec-09 C$8.40 491.5% trade closed
Rio Alto Mining RIO.v dec'10 C$0.69 23-mar-10 C$2.16 213.0% trade closed
Coro Mining COP.to dec'10 C$0.585 03-oct-10 C$1.24 112.0% target made, trade closed
Stocks To Follow Closed Positions, 2009
Closed positions closed closing PPS
Cardero Res CDY/CDU.to May'09 U$1.20 03-May-09 U$0.87 -27.5% sold on negative news
Eastmain Res. ER.to May'09 C$1.04 06-May-09 C$1.315 26.4% trade closed
Radius Gold RDU.v May'09 C$0.165 03-May-09 C$0.235 42.4% trade closed
Latin Amer Min. LAT.v May'09 C$0.12 03-May-09 C$0.158 29.2% trade closed
Aquiline Res. AQI.to July'09 C$2.03 16-Jun-09 C$1.68 -17.2% took loss, bad timing
Chariot Resources CHD.to Aug'09 C$0.20 12-Jul-09 C$0.415 107.5% trade closed
Castle Gold CSG.v Sep'09 C$0.64 02-Aug-09 C$0.60 -6.3% ST trade didn't work out
Guyana Goldfields GUY.to Sep'09 C$2.30 12-May-09 C$4.50 95.7% profit taken
Los Andes Copper LA.v Sep'09 C$0.09 21-Jun-09 C$0.09 0% trade closed
Pediment Gold PEZ.to Oct'09 C$0.80 09-Aug-09 C$1.00 25.0% trade closed
Minera Andes MAI.to Oct'09 C$0.68 03-May-09 C$0.71 4.4% too much bad news
Dynasty Metals DMM.to Nov'09 C$4.18 03-May-09 C$6.01 43.8% half sold
Rusoro Mining RML.v Nov'09 C$0.55 03-May-09 C$0.57 3.6% underperformed
Important Disclosure
The information and opinions contained within this report reflect the personal views of the author and therefore all
material within should not be construed as accurate or reliable or be utilized as advice for investment or business
purposes. Independent due diligence and discussions with ones own investment and business advisor is strongly
recommended. Accordingly, nothing in this report should be construed as offering a guarantee of the accuracy or
completeness of the information contained herein, as an offer or solicitation with respect to the purchase or sale of any
security or as an endorsement of any product or service. All opinions and estimates included in this report are subject to
change without notice. It is prohibited to copy or redistribute this report to any type of third party without the express
permission of the author.
24