IKN #362Premium

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The IKN Weekly
Week 362, April 17th 2016
Contents
This Week: Trade heads-up, In today’s issue, Clarifying last week’s bullish call on precious
metals and their miners.
Fundamental Analysis: Sandstorm Gold (SAND) (SSL.to) NOBS update report.
Stocks to Follow: Overview, INV Metals (INV.to), Starcore International (SAM.to), HudBay
(HBM), B2Gold (BTG) (BTO.to), Regulus (REG.v), Focus (FCV.v), Nevada Sunrise (NEV.v).
Copper Basket: Overview, Cordoba Minerals (CDB.v), Copper Fox (CUU.v), NGEx Resources
(NGQ.to).
Low Cost Producer Basket: Overview, Buenaventura (BVN), Sibanye Gold (SBGL).
Regional Politics: Keiko Fujimori will be Peru’s next President, Colombia: Government versus
Paramilitary at Buriticá.
Market Watching: Correcting on and adding to last week’s Starcore International (SAM.to)
note, Tahoe Resources (TAHO) (THO.to) and Richmont Mines (RIC) (RIC.to).
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
I’m a buyer of Sandstorm (SAND) next week. I’ve put it off until now, which has turned out to
be a mistake because like most other sector stocks it’s risen nicely. But there’s too much to like
about it now, I see no reason not to own it any longer. Another mistake would be to ignore it
any further, two wrongs do not make a right.
In today’s issue
• We clarify the house bullish position on gold and the PM sector stocks.
• We bask in the glory of big percentage gains in holdings. Oh my, we’re suddenly all
geniuses.
• We again warn on copper in 2016, it’s looking weak and that’s not just my call. If
HudBay catches a bid between now and its 1q16 financials due at the end of the month
I may take the opportunity to add to my short position.
Clarifying last week’s bullish call on precious metals and their miners
April is the cruellest month, breeding
Lilacs out of the dead land, mixing
Memory and desire, stirring
Dull roots with spring rain.
Winter kept us warm, covering
Earth in forgetful snow, feeding
A little life with dried tubers.
1

,
TS Eliot, The Waste Land, 1922
I’m glad to say I plenty of feedback from last week’s edition of The IKN Weekly, IKN361, with
comments and thoughts on Starcore, Peru elections, B2Gold and my new fully bullish position
on the precious metals sector to the forefront. I thank you all, but the repetition of one matter
has me writing again on the gold price call this week, as if at least two of you missed the point
and wrote in about it it’s likely that others did too. Last week’s main intro piece was a mea
culpa on my entrenched attitude towards the gold price, my previous game plan and
expectation it would drop under U$1,200/oz and why? Because I said so. As reality has reared
its ugly head and laughed at me on that matter, it was past time to re-examine my position to
gold and the precious metals stocks, admit fault, change the call and become an unadulterated
bull on the PM stocks sector.
However, I did NOT not dismiss the possibility that gold would drop below U$1,200/oz.
Here’s what I really called last week in the intro, a part that I even bold-typed and underlines to
make it as clear as possible:
It’s time to be long gold stocks, ladies and gentlemen. It’s time to
buy and hold. It’s time to position for the big wins, not the small
fliptrades.
To underscore that, I also wrote these words:
“The person who tries to call the detailed price moves in something as fickle
as gold is on a fool’s errand. Foolish I may be, especially about the short-
term, but the real money is made by getting the big calls right, not the
details. Gold’s going higher, name your own price and timescale, be long the
sector.”
Because you see, I tried to be cute and get every single micro-turn in gold correct and for a
while at least, in February and early March, the darned thing got me thinking that I was much
smarter than I was by concurring with the game plan.
Therefore to be clear, I do not know whether gold will stay where it is for the next few hours or
days, even weeks. I don’t know if it’s about to drop under U$1,200/oz, nor do I know if it’s
about to zoom through U$1,300/by this time next weekend. Don’t know whether this chart of
GLD holdings I’ve featured several times in recent editions (updated for the occasion) is a
leading indicator, or a lagging indicator, or in any way useful at all.
GLD gold holdings, March/April 2016 (metric tonnes)
840
835
830
825
820
815
810
805
800
795
790
785
780
775
770
2
61/1/3 61/3/3 61.7.3 61/9/3 61/11/3 61/51/3 61/71/3 61/12/3 61/32/3 61/82/3 61/03/3 61/1/4 61/5/4 61.7.4 61/11/4 61/31/4 61/51/4
mt
source: SPDR GLD data
Again, please be aware of the cut-down Y-axis, as
we’re trying to be illustrative rather than dramatic

,
Because the point of last week’s bull call on gold is that IT DOESN’T MATTER WHAT GOLD
DOES IN APRIL. Or May. Or June. That’s the big change, it’s why you’re not going to see me
running any new near-term trades or any new flurries of sales as seen in the first quarter (ten
closed positions was a lot for me).
Ir’s also why I’m not even considering a sale of B2Gold (BTO.to) any longer, even if it pings my
current C$2.50 target in the days to come. For sure it’s good fun to trade in and out of stocks
and it gives me something active to write about on a weekly basis too, but it’s not where the
real money is going to be made.
The bottom line: I’m not second-guessing gold’s near term any longer. It may go down to my
previously desired U$1,180/oz, it might not. In fact I’d quite like it to do so because I’m not a
seller of stocks at the moment, I’m the guy with a cash pile who’s buying. But no matter, gold
can fiddle around $50 lower or $50 higher or $10 or $20 or whatever. I do not care. All the
current prices are cheap compared to where we’re going to be in 2017 and 2018, in bullish
times you stop sweating after the pennies in order to win the dollars. Or if you like we can get
it down to three words: Buy. Hold. Win.
Fundamental Analysis of Mining Stocks
This week we update Sandstorm Gold (SAND) (SSL.to).
NOBS report dated April 17th, 2016
Sandstorm Gold Ltd. (SAND) (SSL.to)
Company Overview
Sandstorm Gold Ltd. (Canada: SSL.to, USA: SAND, Frankfurt AYS1.f) is a precious metals
streaming and royalty company, with exposure to operations in the The Americas and Africa. It
has several streams and royalties that provide current income plus a pipeline of potential
revenue generating streams and royalties. Current share structure is as follows:
Shares out: 136.68m
Options & Restr.Shares: 7.42m
Warrants: 28.0m
Fully diluted shares: 173.1m
Current share price: U$3.89
Market Cap: U$531.69m
Approx working cap per S/O: $0.33
All prices are in US Dollars unless stated. Forex U$0.80=CAD$1
Today's SAND analysis
We first looked at SAND in IKN355 dated February 28th 2016 in a NOBS report that covered a
lot of the operational and assets background of the company. That means today’s note is going
to be shorter (not covering the same information) which is good news for both you and I, but if
you want to read IKN355 and don’t have a copy feel free to shoot me a mail, I’ll send you the
edition by return.
3

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At the time in IKN355 I called SAND as very interesting and on my shortlist but didn’t call buy, I
was waiting for a potential better price and a window that might come along from a potential
drop in the gold price. Today we update on the stock, consider what’s happened between then
and now, we concentrate on some of its main numbers and I lay out the reasons why I’m a
buyer next week. So to sum that up...
Reader: “So Mark, back in IKN355 you liked Sandstorm but you weren’t ready to buy”-
Mark: “Yes, that’s right”.
Reader: “You were looking for a lower entry point”.
Mark: “Right again”.
Reader: “At that time SAND was priced at U$2.85.”
Mark: “True.”
Reader: “And now, with SAND 36.5% higher at U$3.89, you’re telling me it’s cheap and
it’s time to buy.”
Mark: “Exactly right, dear and respected reader.”
Reader: “Okay, I’m listening...tell me all about it.”
What’s changed between now and then
First let’s get up to date with a list of notable events at SAND since IKN355, February 28th:
• On March 1st SAND announced (1) a revised deal on its Entree Gold (ETG.to) future
stream on its Mongolia project. In exchange for U$5.5m cash and 5,128,604 ETG
shares (priced at CAD$0.3496), SAND agreed to drop the amount of metals under its
stream by 17%, which in effect means SAND has 5.62% of the gold, 4.26% of the silver
and 0.42% of the copper that eventually comes from that deposit.
• of the gold and silver by-products produced from the Hugo North Extension and Heruga
• On March 30th SAND announced (2) its 4q15 and year-end results. Those are now in
the model (and I made one silly error in the 4q15 estimates as seen in IKN355 and
didn’t notice it until I plugged in the real numbers...no biggie really but I’ll point it out
below). Operationally 4q15 was right in line with expectations and there were no
surprises.
• On March 31st SAND announced (3) preliminary sales for 1q16 of 11,000 oz AuEq. That
beat the market consensus, beat my house estimate of 10,400 oz AuEq and was a
good result all round.
• On April 6th SAND announced (4) it had sold its shares in Aurico Metals for U$10m,
booking a $1.4m win on the trade. Not bad at all.
And to tie a couple of those developments together, consider this: In April SAND also published
its latest corporate presentation and although a lot of the information was either the same as or
very similar to (just with updated financials) the
February 2016 corporate presentation, one
newly added slide at the end caught my eye.
Here it is:
In the first section, SAND is telling your author
exactly what he wanted to hear. The company
plans to pay down its financial debt with cash
flow, strengthening its balance sheet. Combined
with the second part of the slide, the key word
there being “small” after the big recent spends
in the Yamana and True Gold deals, SAND
reiterates that it’s done with the heavy deal
lifting for a while and will now concentrate on
reaping the rewards that come from doing deals
during the market bear period.
Then the third section isn’t just good to read,
but SAND has already acted on that statement
4

,
twice in 2016. First it re-worked its Entree Gold deal and got $5.5m cash for its treasury, then it
sold the Aurico Metals position for U$10m (those were bought for U$8.6m, so good deal). In
both cases, the cash raised came from fixed assets and in both cases, the company stated it
intends to use it to pay down debt. Which brings us to the next section in this (hopefully) concise
update on SAND.
Financials overview
Today we do three things with the financials presented in IKN355:
• Update the numbers to include the 4q15 results
• Add a few more charts to the section, because last time we did overview basics only
• Project for the rest of 2016, we didn’t do much of that last time.
We start with balance sheet items and assets. There are two big changes here with fixed assets
rising sharply in 4q15 and the cash and current assets side now much lower.
This was my mistake in IKN355, I’d
SAND: Assets assumed SAND wouldn’t touch its cash
pile very much in 4q15 and pay for the 550
500
Yamana deal using the entirety of tit’s
450
U$110m revolving loan facility. In fact 400
SAND was smarter than that, as they 350
paid Yamana using as much treasury 300
250
as they dared, then using just U$83.5m
200
of the revolver. That’s financially
150
prudent of course (less interest to pay). 100
You’ll note that this corporate decision 50
0
also fits in with the company’s prudent,
conservative stance and policy for 2016
(see that corp pres slide above). This is
good and once again, it strongly
suggests that Nolan Watson and his
team have learned the lessons taught
by going too fast and loose in the past
on Colossus or Luna.
The flipside of the low cash level is the
benefit to the liabilities. Here in IKN355
we had liabilities topping out at almost
U$120m in 4q15 and staying the same
level in 1q16. Now the model forecasts
total debt at end 1q16 at U$86.5m, with
U$81.5m of that in financial debt.
What’s more, with a clear 2016 policy in
place, we now expect liabilities to drop
further as the year goes on and
estimate total liabilities at U$64m (of
that financial debt at U$60m) at year end. We have to assume of course that SAND does no
new big deals, but that’s our guidance we’re given at the moment and the combo that has
changed the story is:
• SAND used less of its revolver than assumed for the big Yamana deal
• SAND using the cash received from the Entree Gold and Aurico Metals deals to pay
down debt
• SAND targets the use of free cash flow to pay down debt further.
All this is music to my ears, ladies and gentlemen. If I want risky mining plays I can go play in
junior exploreco land (and I do), but what I want from a streamer/royalty play is the FNV or
RGLD model; financially rock solid, cash generation, conservative outlook that gives its shares
a low risk premium. If you hadn’t noticed, Franco Nevada is now trading at 23X sales. SAND
5
31q4 41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 tse61q1 tse61q2 tse61q3 tse61q4
fixed $m other current
cash
source: SAND filings
SAND: Liabilities Breakdown per qtr
120
110
100
90
80
70
60
50
40
30
20
10
0
31q4 41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 tse61q1 tse61q2 tse61q3 tse61q4
source: company filings
srallod
fo
snoillim
LT debt
current debt

,
trades at 10X, because it’s considered
smaller, riskier, less solid financially than
the sector leader.
Here’s working capital at SAND (plus
below the cash treasury position, to show
you how the two sets of figures are very
closely related). The big change is again
the drop in 4q15, cash and working
capital is now at rock bottom levels. Or if
you like, you can say that SAND spent
the last of its cash in 4q15 at the right
time, getting bargains just before the
market started its rebound and the
mining sector got bullish. Okay yes, you
can say they have the remains of the
revolver on stand-by ($27.5m) but with the new
“we’re going to pay down debt” policy, I’d only
imagine that being used if a drop-dead fabulous
deal comes its way.
I’m modelling some slight additions to cash and
working cap in 2016, but really I’m just guessing
because the 4q15 working cap looked mightily thin
and I’d expect they’d like a bit more of a cushion.
Finally and just to round off, the shares out count
which has clicked up to nearly 137m. I expect it to
stay there now.
SAND: Shares Out
160
140
120
100
80
60
40
20
0
6
31q4 41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 tse61q1 tse61q2
source: company filings/IKN ests
serahs
fo
snoillim
120 SAND: Working Capital per qtr
110
100
90
80
70
60
50
40
30
20
10
0
Operational results
Over at the P+L, things are already looking better than I expected. The 1q16 preliminary sales
number of 11,000 oz AuEq, coupled with SAND’s new guidance for 2016 of “...between 40,000
– 50,000 attributable gold equivalent ounces”, mean that my previous estimates on production
this year and in years to 2019 are likely to be too conservative (see IKN355). That’s good, as is
the rise in the price of gold (and other things), because the average of U$1,189/oz for gold in
1q16 (London Fix) looks likely to be beaten this quarter and in quarters to come. All that adds
up to more income in the pipeline for SAND and that’s what I’m now modelling.
We start here below, the quarterly revenues chart and the U$9.863m registered in 4q15 looks
set to be blown away by the 1q16 number (I have it at U$13.07m, I’m rounding down to $13m).
Then in the quarters to come we have the stream from True Gold/Endeavour at Karma coming
on line (first gold pour happened last week according to Burkina press) and with sustained gold
prices, the revenues expected look much better and as a reminder, just about every dollar a
streamer/royalty company gets from better prices moves straight through to EBITDA.
31q4 41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 tse61q1 tse61q2 tse61q3 tse61q4
source company filings/IKN ests
srallod
fo
snoillim
SAND: Cash treasury per qtr
120
110
100
90
80
70
60
50
40
30
20
10
0
31q4 41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 tse61q1 tse61q2 tse61q3 tse61q4
source: company filings/IKN ests
srallod
fo
snoillim

,
SAND: Quarterly Revenues
20
15.295 15.559 15.285 15.429
15 13.153 12.487 12.086 13 13.5 13.8 14.3
9.863
10
5
0
7
41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 tse61q1 tse61q2 tse61q3 tse61q4
$m
source: company filings/IKN ests
As in IKN355 we’re going to eschew a close look and consideration of the classic operational
results and net results at SAND, these get thrown out by excessive weight on depreciation etc.
The model at SAND is about cash
SAND: Cash generation capacity
generation and last time we used items 18
from the cash flow statement to make the
16
point. This time, in much the same way, we 14
separate the wheat from the chaff on the 12
P+L and show the company’s cash 10
generation capacity (for want of a better 8
expression) with this chart. Here we back 6
out the “other financials” largely swayed by 4
2
changes in asset valuations, we also back
0
out depreciation/depletion/amortization, we
ignore the tax man (which tends to be a
small bill anyway). This chart stacks
revenues against production costs (e.g.
cheques they write for $400/oz gold from
Bachelor) and administration costs (which
include all G&A, salaries, fees and even non-
cash share awards) to give a close idea of
how much cash is generated per quarter. This
is the money SAND can use to pay down its
debt in 2016, add to treasury etc.
Here’s a chart from the same dataset, the
“difference” above divided on a per share
basis. SAND right now is in the lowest point of
its revenues cycle, in absolute terms and on a
per-share basis, come the end of the year it’s
going to be churning out 6.8c/share according to
our model. And that’s with gold where it is today, if
you’d like to add another $100/oz to the gold price
that per-share cash generation capacity jumps to
7.6c/share.
Finally, a tip of the hat once again to balance
sheet items and the price/book ratio at SAND,
which this weekend sits at an IKN estimated
1.28X. The improvement has been marked, but
there’s still plenty of room to run on this metric and
with better revenues and a corporate policy of
improving the balance sheet before embarking on
41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 tse61q1 tse61q2 tse61q3 tse61q4
$m total revenues
prod costs + admin costs
difference
source: company data, IKN calcs
Cash generation capacity per share
10
9
8
7
6
5
4
3
2
1
0
41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 tse61q1 tse61q2 tse61q3 tse61q4
source: SAND data, IKN calcs
erahs/stnec
SAND: Price / Book Value Ratio
2.20
2.00
1.80
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
31q4 41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 tse61q1 WON
P/BV
source: SAND filings, IKN ests

,
the next round of big purchases, the solid financials will pay by improving this ratio. I see no
reason why SAND cannot regain the 1.8X level last seen in 2014 (in the pre-Luna/Colossus
SNAFU boom years it was much higher, of course). As it happens, a ceteris paribus 1.8X
price/book ratio would mean that SAND shares were at U$5.50, this would represent a 41.4%
upside to this weekend’s closing price.
Conclusion and recommendation
Back in IKN355 I mentioned that at first sight a market cap of U$400m for a company
“producing” 50,000 ounces and not making a bottom line profit may look steep, but the low
running costs of a SAND and its low execution risk compared to the traditional sort of PM miner
made it a different sort of case. Now that U$400m is over U$500m so to put this another way,
for semi-serious illustrative purposes before getting to the real point, Sandstorm this weekend
has a market cap of CAD$684.8m is you use its SSL.to ticker. Also this weekend that after its
latest all-paper buyout, this time Clifton Star, plus the latest Daniel Ameduri pump promotion to
the greenhorns who’ll believe anything you tell them as long as you shout it and use yellow
highlighter pen, First Mining Finance (FF.v) has a market cap of CAD$247.4m. FF.v markets
itself as a “Mineral Bank” and has collected a bunch of properties that it says will be worth a lot
more at the top of the cycle. That’s up for debate (in fact I think most of the FF.v portfolio is
worthless junk no matter what the price of gold might be), but what isn’t is the quality of the
“Bank” that SAND has put together, with a lot of the new and valuable streams and/or royalties
added to the structure in the last couple of years, when the market was at lows and companies
were struggling for funding. Not only are they long-lasting, but they generate profit both now and
in the future. In other words SAND is today is a REAL mineral bank, not a fake one. Its 134
assets, be they NSRs royalties or stream deals, include 19 which are producing and making
money today. Growth is already baked in to the pie at no extra cost (with particular emphasis on
2019 onwards when the Yamana stream deals kick into overdrive and every dollar added to the
price of gold has a tangible effect on the income at SAND, it gets more money on its sales. The
only thing that grows at FF.v is the share count (and the deal success fees pocketed by
Neumeyer) but that hasn’t stopped the market from buying the merry hell out of the stock. We’re
in a bullish market and promotions are getting traction, but when the effect dies down people
are going to start looking for real fundamental value, not make-believe stuff. SAND is real.
In in February I wrote, “The key to understanding SAND is to consider its cash generating
capacity, not necessarily its bottom line”. That’s not changed in the short period between then
and now, but what has changed is the company’s potential for cash generation. My estimates
on sales in AuEq terms now look low and to that we can add the improvement in the gold price
in both real terms and in terms of future expectation. We’re in a bull market, people are paying
up for good assets and SAND has risen as a result, but it’s by no means too late to get on board
this company.
The other thing that’s changed at SAND since we last spoke, and in an obvious way, is the way
it has officially franked the “We Are A Conservative Streamer Not A Risky Junior” message. It
model is Franco Nevada, not a risk-taking insto that ploughs millions into a junior on the hope of
hitting it big while assuming massive risks. The FNV model works because people are willing to
pay up to own the stock (23X sales) and the message being flashed by SAND is that it’s going
to do the same thing. SAND is going to pass 2016 paying down its debt and once it’s out the
other end of this year it might even be in a position where FNV, SLW or even RGLD are
interested in paying up to buy the company and add it to their empire. Today it trades at 10X
sales, it would need less than 15X sales to reach U$5.80 which is again in the ballpark of what
I’m looking for from this trade. Nolan and Company made mistakes, the important thing is how
they’ve learned from those mistakes, they’ve got the model right now, they realize that the
reward for a streamer is to project an image of solidity and guaranteed cash generation, not
swinging for the fences.
The IKN Weekly recommends Sandstorm Gold (SAND) (SSL.o) as a buy and sets a 12
month price target of U$5.50 on the stock, representing a 41.4% upside to this weekend’s
close. I am a buyer of the stock next week and it will feature on our ‘Stocks to Follow’ list as
from next weekend. The price target is based on the type of premium I am confident that the
market will be willing to pay once it realizes that SAND is a different animal these days, with
8

,
improving financials and solid base. A real bargain at today’s price deck in absolute and
comparative terms, I’m going to buy myself a decent slug of these as from next week.
End of Report
Stocks to Follow
Last week, two of of our eight open positions lost ground (REG.v, HBM short) while the other
six all put in a winning week. Some darned fine percentage gains in there too, here’s a list:
• INV Metals (INV.to): Up 65.5% (yeah, seriously)
• Nevada Sunrise (NEV.v) up 47.4%
• Focus Ventures (FCV.v) up 36.4%
• Starcore International (SAM.to) up 23.4% (new Top Pick reacting well)
• Lara Exploration (LRA.v) up 10.0%
• B2Gold (BTO.to) up 7.4%, which isn’t bad for the other Top Pick play
Now yes for sure the whole sector went on a rip last week and it’s easy to look like a genius.
However I will meekly propose that the above list compares favourably to the 3.5% put on by
GDX, the 7.1% put on by GDXJ or the 4% added by the Canadian TSXV index last week.
We currently have eight open trades, seven less than our self-imposed maximum, we’ll click
that count up another notch by this time next weekend. Six positions are green, the other two
are deeply in the red being as they are long-term positions that have had patience* applied to
them over the years.
Please note the new, re-arranged format of the ‘Stocks to Follow’ table.
*you say pig-headed stubborn, I say patient ☺
9

,
company Ticker this week Avg Price Reco date Current PPS Gain/Loss% Notes
TOP PICKS
B2Gold BTO.to buy C$2.11 12-sep-14 C$2.32 10.0% New 2016 tgt C$2.50
Starcore Intl SAM.to buy C$0.49 10-jan-15 C$0.58 18.4% New Top Pick, Added 81c tgt
Long positions (in current order of preference)
INV Metals INV.to buy C$0.25 27-apr-16 C$0.48 92.0% new near-term trade
Focus Ventures FCV.v hold C$0.23 01-jul-12 C$0.075 -67.4% Hit hard by PFS news
Nevada Sunrise NEV.v spec buy C$0.185 28-feb-16 C$0.28 51.4% V small Li spec play
Lara Expl. LRA.v spec buy C$1.15 08-apr-12 C$0.44 -61.7% solid biz model, waking up
Regulus Res REG.v hold C$0.30 06-apr-15 C$0.36 20.0% Comm. Rels slow progress
Short positions
HudBay Min. HBM short U$3.60 03-apr-16 U$3.32 7.8% new short, near-term trade
Closed in 2016 closed close price
Phoscan Chem FOS.to jan16 C$0.28 29-mar-15 C$0.265 -5.4% Buyout trade, bot but poor deal
True Gold TGM.v jan16 C$0.18 23-aug-15 C$0.25 38.9% okay trade, sold on pol risk
McEwen Mining MUX jan16 U$1.09 25-jan-15 U$1.20 10.1% sold due to lack of value
Lake Shore Gold LSG.to feb-16 C$1.10 07-apr-15 C$1.69 53.6% bot out, sold early in process
Atacama Pacific ATM.v feb-16 C$0.19 26-apr-15 C$0.40 110.5% sold for a double on big pop
New Gold NGD feb-16 U$2.06 24-jan-16 U$2.96 43.7% closed good near-term trade
Sandspring Res SSP.v mar-16 C$0.195 18-oct-15 C$0.32 64.1% Hit tgt, took profit
Teranga Gold TGZ.to mar-16 C$0.54 15-feb-15 C$0.60 11.1% disappointing trade
B2Gold BTG mar-16 U$0.85 13-jan-16 U$1.30 52.9% Separate trade on B2, hit tgt
Dalradian Res DNA.to mar-16 C$0.67 27-oct-13 C$1.00 49.3% Hit target, sold, good win
2009, 2010, 2011, 2012, 2013, 2014 and 2015 closed positions in appendices below
Now for some notes on current basket stocks.
INV Metals (INV.to): Position added. INV Metals is up over 100% since the anal ysis and
buy call on the stock in IKN359 dated March 27th. I’m personally up 92% on my position,
designed to be a near-term trade based around an expected revaluation of the stock. I think it’s
fair to say that this one is working out quite nicely ☺.
This time last week I noted the intention to add some more INV if possible and was willing to
pay around 25c. Monday brought a stroke of luck which allowed me to do just that, as the
company announced (5) a private
placement consisting of 15m shares
at 20c apiece (compared to last
weekend’s 29 close), with insiders
and management participating for
nearly 5m of those shares, that INV
explained away as giving them the
funds necessary to kick-start the
bankable feasibility study process on
the back of the release of the
upcoming pre-feas update.
Which is of course complete BS. As
noted in IKN359, INV already has
nearly $11m in cash treasury so why
they “need” an extra $3m right now is beyond my ken. No folks, the minute I read the Monday
NR I knew we were looking at a fairly classic “friends and family” placement that allows those
closest to the team to get in at a discount before the big pumpo begins. Unfair? Yup maybe,
and I knew that a guy like me wasn’t going to be able to get his hands on any of that 20c paper
10

,
(it was undoubtedly filled long before the announcement was made) but I guessed that others
might think the stock would trade lower at the open due to that (and despite the strong
showing in gold on Monday as it popped to 1255) so laid in some bids and I’m happy to say
that, for once, I read a very-near term situation nicely. What followed during the week may
include some overbought tape-painting on Friday and an artificially high close on the week, but
this same chart shows decent buying action all week at 35c
Back in IKN359 and on the anal ysis I called INV a buy, but with specific criteria:
• A near-term trading buy
• A 48c target assuming U$1,200/oz gold, representing a double
• I gave myself a three to four month time window, as the PFS is due “in 2q16”.
As it happens, it took three weeks to hit 48c rather than three months. I could take the profits
and run at this point, but I’m not going to. The way this market has suddenly woken up, with
an almighty jolt, I think it’s worth letting my INV shares ride a while longer and the way in
which the company played up the contents of the Loma Larga upcoming updated PFS in last
week’s NR was very positive. The general plan to cash in this position and not become a project
sponsor still holds, I am concerned about certain aspects of the INV story (not least the sketchy
community relations situation) so I will sell once the PFS contents are known, but for the time
being I’m going to ride my luck. It’s been pretty good so far.
Starcore Intl (SAM.to): As planned I added to the position last week, a couple of purchases
that have clicked my cost average up to 49c. The stock traded strongly early week, popping
higher at the open Monday, then popped
further and staying there and trading at 57c
and 59c late week on a reversion to its normal
low volumes. The interesting action came
Monday (300k+ volume) and Tuesday (100k+
volume) and it would have been nice to see
that kind of volume continue, but little by little
and (to be absolutely selfish about it), I’m
happy to see interest wane as it means I’ll
have a better chance to get my next tranches
at competitive prices. Meanwhile, see ‘Market
Watching’ below for a necessary correction to
last week’s piece on SAM. My renewed
enthusiasm for this company’s chances hasn’t
changed one iota, but there was a pretty
stupid error in the numbers last week and you deserve an explanation as to why.
HudBay Minerals (HBM): It
was always going to be a bit of a
wild ride, HBM moves and shakes
along with the copper price and
the way copper rallied early week
(see ‘The Copper Basket’ below)
meant that HBM popped back
over my short baseline and,
briefly at least, I thought about
taking a second bite and adding
to the position. But come the end
of the week my short was back in
positive territory thanks to the
weak copper price finish and the
obvious leverage this company is
showing to its underlying metal at
11

,
this price range. Makes for good volatile stuff ☺. It would take copper over U$2.30/lb to shake
me out and book a loss, the vibes I’m getting from watching the tape fit in with my thesis of
market nerves about a soft set of quarterly results at the end of the month.
B2Gold (BTO.to) (BTG): It might not have sparkled as brightly as other stocks, but the 7.4%
win in my largest position and Top Pick was very welcome, much perkier than the week before
when BTO failed to rally with the rest and a beat on the GDX/J benchmarks, too.
In much the same way people get cursed with short memory for good news in bearish times,
bad news gets forgotten quickly when the markets get bullish. All that about BTO’s insider
selling spree we mentioned last weekend dragged on the stock for exactly three days, come
last Monday morning all was forgiven, all forgotten and I even got “more fool Clive for selling
too early” mails hit my inbox.
Regulus Resources (REG.v): Part of my week to come includes a meeting with John Black of
Regulus. With a little luck and a following wind I’ll have more on this latent position in IKN363
next weekend. The key aspect continues to be the community relations situation, so I’ll be all
ears on how the company and its community team have advanced and how they think the local
panorama may have been affected by last week’s voting results.
Focus Ventures (FCV.v): A pulse! FCV managed to rebound two cents last week and on
volume traded too, 1.4m shares traded Wednesday and 0.75m on Thursday the highlights of a
week in which FCV became almost tradable, on no news too. I wonder whether there’s some
sort of underground promo running on FCV, what with closure of that 6.5c placement that gave
away full warrants at 6.5c too. We know Rick Rule at Sprott likes these guys, for example.
In other news, an amended version of the December 2015 Pre Feas for Bayovar12 was
published to SEDAR Friday afternoon, after the regulatory authorities asked FCV to add a couple
of unimportant things like QP certificates, an extra line of cautionary language on one of the
resource tables, the typical jobsworth BS that the Canadian desk jocks do instead of actually
doing something about their corrupt market. The changes are so minor FCV doesn’t even have
to publish a NR about them. However, getting it done now is probably part of the deck-clearing
process for the updated pre-feas that, as noted last week, I’m expecting at the June end of
2q16 rather than this merry month of April.
Nevada Sunrise (NEV.v): This one
popped very strongly on large-scale
volume as the whole Lithium sector
pump went up yet another gear (notice
the central Clayton Valley Li junior, the
Frank Giustra’s LIX vehicle, hit $2.50 last
week after being under 50c when the
whole promo pump job began). It was a
very small position for me, it still is and it
will be in the future no matter how high
the stock price goes. I’m going to let it
ride a while but not forever. Nice
percentage win, but I can’t say I care
much.
The Copper Basket
After fifteen weeks of 2016, The Copper Basket shows a 50.23% gain to level stakes.
12

,
company ticker price 1/1/16 Shares out Market Cap current pps gain/loss%
1 HudBay Min. HBM.to 0.35 235.23 1002.08 4.26 -19.8%
2 Ivanhoe Mines IVN.to 0.61 778.96 724.43 0.93 52.5%
3 Reservoir Min. RMC.v 4.08 48.69 348.62 7.16 75.5%
4 Capstone Min. CS.to 0.44 382.04 213.94 0.56 27.3%
5 NGEx Resources NGQ.to 0.65 205.06 149.69 0.73 12.3%
6 Nevada Copper NCU.to 0.66 80.5 74.06 0.92 39.4%
7 Cordoba Min. CDB.v 0.16 86.86 73.83 0.85 431.3%
8 Western Copper WRN.to 0.38 94.19 73.47 0.78 105.3%
9 Copper Mtn CUM.to 0.445 118.8 58.21 0.49 10.1%
10 Copper Fox CUU.v 0.125 417.64 56.38 0.135 8.0%
11 NovaCopper NCQ.to 0.395 104.33 53.21 0.51 29.1%
12 Atico Mining ATY.v 0.28 97.59 31.23 0.32 14.3%
13 Hot Chili Ltd HCH.ax 0.09 445.723 29.42 0.066 -26.7%
14 Amerigo Res ARG.to 0.205 173.61 20.83 0.120 -41.5%
15 Revelo Res. RVL.v 0.055 99.19 7.44 0.075 36.4%
NB: HCH.ax priced in AUD$, rest CAD$ Portfolio avg 50.23%
A very strong week for The Copper Basket, populated as it is with the type of junior exploreco
that saw buying action across the board last
The Copper Basket 2016, weekly evolution
week. Just two of our charges registered a 60%
weekly loss (NCU.to, HCH.ax) and no UNCH 50%
either, so that means thirteen winners to 40%
report. Not listing them all, just going with the 30%
biggest percentage winners which were led 20%
yet again by Cordoba Minerals (CDB.v up 10%
32.8%) and followed by Capstone (CS.to up 0%
-10%
17.9%), NovaCopper (NCQ.to up 13.3%),
-20%
Copper Fox (CUU.v up 12.5% and defying all
commonsense, see below for more) Western
(WRN.to up 9.9%) and NGEx (NGQ.to up
9.0%). All good scores that battled well against the
weak copper price action.
In world metals markets, copper put in a spurt and
rallied a full 5% on Tuesday as it decided to join the
new-fangled commodities party but the move was
short-lived. Instead of powering up through $2.20,
copper tried failed and finished weakly on Friday at
U$2.15/lb for the most popular futures contract. That
may be something to do with the opinions and expert
calls on the sector heard in Santiago last week as
Chile’s capital played host to the country’s CRU-CESCO
conference, one of the biggest annual events in the
world for the copper industry. To get an idea of the
atmosphere, check out this report from Reuters’ own
Andy Home (6):
THE NEW GLOOMY CONSENSUS
And everyone seems to agree that with Chinese demand
losing much of its sparkle the price must go down before it goes up.
It totally fit the downbeat mood of the conference that it actually rained on Tuesday, an unusual
event in a city that averages just one day of rain per month over the December-March period.
The logic for lower prices is strong.
In an oversupplied market more production must exit and it will not exit until it is forced to do so.
As producers have slashed costs, the global cost curve has fallen steeply. At current prices only
the most financially vulnerable of producers have had to pull down the shutters.
The price, it follows, must travel further into the cost curve for a sizeable supply response to
13
dr3naj ht01 ht71 ht42 ts13 ht7bef ht41 ts12 ht82 ht6 ht31 ht02 ht72 dr3rpa ht01 ht71
source: IKN calcs

,
materialize.
When Goldman Sachs last year forecast the price would hit $4,500 by the end of 2016, it was
deemed a super-bear.
Goldman's analyst Max Layton reiterated the reasons for the bank's prognosis last week but he is
no longer the sole super-bear.
Many others have followed him downwards in the intervening period with much talk of prices
bottoming out in the low $4,000s at last week's meeting.
Contrarians were in noticeable short supply.
The new consensus, it seems, is for more rainy days in Santiago and other copper production
centers.
That’s what I call raining on a parade. For context, U$2.00/lb works out at U$4,409/tonne (and
twenty four cents) and with copper closing out the LME week at just over U$4,800/tonne, the
type of downside price targets bandied about at CRU-CESCO last week suggest a 10% cut from
current levels. And yes, I’m short HudBay thanks for remembering ☺.
There were more positive speakers at the bash, including Robert Friedland (see the CDB piece
below) and the Minmetals people talking their Las Bambas book. But the consensus also talked
of depressed demand for copper and an industry that will only slip into a significant supply
deficit from 2020 onward. That’s a long time if you’re a company like Capstone that needs
copper above its current price deck right now.
We move to the weekly copper warehouse inventory bullet points:
• Total world copper stocks in the three official warehouse systems dropped by 28,335
metric tonnes (mt) (-5.0%) to 543,524mt as the Shanghai de-stocking season gets into
gear.
• The main mover was Shanghai, where stocks dropped 28,983mt (-8.9%) to 331,942mt.
Stocks were due to go down, they’re going down, the question remains as to where the
metal is being moved to as a lot of talk last week was about the lack of real end user
demand and how China’s copper stocks are now “a part of its financial system”. If
that’s true I will safely predict it all ending in tears, this metal is not gold and it is not
an asset class, no matter how much China might wish it to be.
• LME stocks moved up slightly for the first time is a long time, adding 2,300mt (+1.6%)
and closing the week at finish at 147,975mt.
• Comex stocks dropped by 1,652mt (-2.5%) to finish the week at 63,607mt.
Here’s the Shanghai-only chart and it’s clear we’ve now peaked out and things can only get
lower. How fast and to what levels, those are the big unknowns.
Shanghai Futures Exchange Warehouse Stocks, 2014-2016
400000
350000
300000
250000
200000
150000
100000
50000
14
31'13ceD ht91 ht9 dn2ram dr32 ht31 ht4yam ht52 ht51 ht6yluj ht72 ht71 ht7 ht82 ht91 ht9 ht03 ts12 ht11 ts1bef dn22 ht51 ht5rpa ht62 ht71 ht7nuj ht82 ht91 ht9 ht03 ht02 ht11 ts1von dn22 ht31 dr3naj ht42 ht41 ht6ram ht72 ht71
Mt Cu
source: Cochilco
Now for brief comments on a couple of our basket stocks:
Copper Fox (CUU.v): Thanks to the message received from reader JM way up North, On

,
Tuesday April 12th (7) IKN broke the news about the monumental SNAFU suffered by Carmax,
the exporeco majority owned by Copper Fox (CUU.v) which has, due to sheer ineptitude,
managed to forfeit its claims on the Eaglehead property by failing to update the paperwork on
its properties. So far we’ve had no word at all from CUU and the almost certainly livid Elmer
Stewart but on Friday afternoon we were given a NR from Carmax (8) which confirmed the
story and also stated that the company was looking to reverse the decision and get its
concessions back. Here’s an extract:
On April 14, 2016, the Gold Commissioner gave notice to all parties that had filed "intervening
claims" over the Eaglehead Property that an application had been made by Carmax to set the
forfeiture aside in order to allow for a further period of time for Carmax to comply with the
filing requirements under the Mineral Tenure Act. If this application is successful, the effect
would be for the intervening claims to be deleted from the Registry and for the Eaglehead
Property to be reinstated as being in good standing under the Mineral Tenure Act.
Carmax thinks it has a chance of getting the land back, IKN laughs at that thought. One of the
things about concession lapses is that everyone knows the rules, you can’t plead ignorance
after the fact and historically there’s no leeway given to the stupid companies that let their
paperwork get out of date. Carmax can file all they want, but they’re the people that screwed
up and the rules are clear. Now that Carmax has filed its NR, we can expect one from CUU.v on
Monday and if they don’t, somebody should really ask them why they show no respect to their
shareholders.
Cordoba Minerals (CDB.v): CDB had another excellent week and the momentum it’s created
at the right time sees it over 400% higher in just four calendar months, so if my piece last week
casting doubt om the project and the company sounded like sour grapes well....hey y’know,
perhaps it was ☺. Fear not, I’ll live.
On that subject and by way of right to reply, I got a much longer mail from company CEO Mario
Stifano last week who took time to outline his more positive view of the company’s relationship
with Robert Friedland and his private company, HPX. Here’s a section of his mail to me for your
consideration:
HPX has to spend a total of $19.5M for a 51% interest in the project and has
the right to a 65% by carrying the project to feasibility. At the time of the
transaction and joint venture agreement, Cordoba had a approximately a $8M
market cap, so the partnership was a fantastic deal for cordoba shareholders.
With HPX we have a partner with deep pockets and the most aggressive
explorer out there while also delivering world class assets. HPX has to carry
the project to feasibility and Cordoba shareholders retain a 35% interest in the
project Yes HPX is a significant shareholder, but that ensures we are aligned.
I have dealt with many large shareholders in my career, and I can tell you that
Robert and HPX are the most professional and supportive group I have ever
worked with. I had options in picking a joint venture partner and I chose
Friedland and HPX and I think it was by far the best decision and huge benefit
to Cordoba. I learnt from the other JV deals out there with the majors, and I
insisted that HPX also become a Cordoba shareholder so that we are all
working for the same thing – the success of the San Matias project and the
success of Cordoba.
I think we have a fantastic project and so does HPX.
Now I think that’s fair enough and a good answer to my doubts, I thank CEO Stifano for taking
the time out and giving me a detailed reply to my doubts. In other news potentially related to
the continued bullish action in CDB, Robert Friedland was one of the keynote speakers at the
big CRU/CESCO copper conference in Santiago Chile last week. According to eyewitness reports
(and 100% unsurprisingly) he wasn’t backwards about coming forward and extolling the virtues
of the copper projects in which he is involved currently.
15

,
NGEx Resources (NGQ.to): I’ve been re-evaluating NGQ in light of the new bullish tide in the
sector and despite it being a copper story, I think this could become my Argentina play. I like
the management, I like the new silver zone that could be the start of a mining camp, I like the
arm-waving potential. Perhaps if copper drops there is a neat and pretty entry point in the near
future, but that’s also the trap I fell into when not buying SAND in February or March, for just
one example. We’ll see, but in the meantime, consider this one as back on my short-list.
The Low Cost Producer Basket
After 15 weeks of 2016, the Low Cost Producer Basket shows a gain of 83.00% to level stakes.
company ticker price 1/1/16 Shares out Mkt Cap (Bn) current pps gain/loss%
1 Barrick ABX 7.38 1164.67 18.22 15.64 111.9%
2 Newmont NEM 17.98 529.12 15.54 29.37 63.3%
3 Goldcorp GG 11.56 830.22 13.92 16.77 45.1%
4 Franco Nevada FNV 45.75 176.298 11.91 67.58 47.7%
5 Agnico Eagle AEM 26.28 217.67 8.80 40.42 53.8%
6 Ang/Ashanti AU 7.10 405.27 6.06 14.96 105.1%
7 Sibanye Gold SBGL 6.09 228.71 3.49 15.28 150.9%
8 Detour Gold DGC.to 14.41 170.85 4.40 25.78 78.9%
9 New Gold NGD 2.32 509.89 2.12 4.15 78.9%
10 Buenaventura BVN 4.28 254.19 2.05 8.08 88.8%
Prices in U$/NYSE tickers, except DGC.to (CAD$) Portfolio avg 83.00%
Another week of nine winners and just one loser, this time the turn is taken by Goldcorp which
managed to lose 2% on the week for its own sweet reasons. All others were winners and the
best of the bunch was Detour (DGC.to up 12.1%), with a another batch of takeover rumours
swirling around that company. More logical and likely, I’d say.
The Low Cost Producer Basket: Weekly performance
90% and comparative to GDX control
80%
70%
60%
50%
40%
30%
20%
10%
0%
-10%
16
dr3naj ht01 ht71 ht42 ts13 ht7bef ht41 ts12 ht82 ht6 ht31 ht02 ht72 dr3rpa ht01 ht71
basket
gdx control
source: Google Finance, IKN calcs
Low Cost Basket: Percentage difference between
basket and GDX control, 2016
5%
0%
-5%
-10%
-15%
-20%
-25%
dr3naj ht01 ht71 ht42 ts13 ht7bef ht41 ts12 ht82 ht6 ht31 ht02 ht72 dr3rpa ht01 ht71
source: ikn calcs, NYSE/Nasdaq data
The basket kept its 20%+ lead over the benchmark GDX last week. That’s good.

,
The notable take-away from our ongoing coverage in this section is how the smaller cap stocks
and junior explorecos, the ones that live on the TSXV and the lower cap end of the TSX, had a
far better week than the big boys we have here. We’re seeing the type of rotation from large
into small move into a third round, people in mining stocks are getting more comfortable about
adding risk to their portfolios and the consolidation in the ABX, GG and NEMs of this world
doesn’t mean that cash is leaving the sector, for once it’s staying in and looking to position in
the stocks that GG NEM and ABX would buy out.
Regional politics
Colombia: Government versus Paramilitary at Buriticá
Last week we reported how the far-right wing “Urabeño” paramilitary group (also known as the
“Úsuga Clan”) had issued a formal death threat communique against personnel of Continental
Gold (CNL.to). This week we note that the Colombian government has not been slow to
respond: Firstly, in several actions against the paramilitary group the government claims to
have arrested (9) 135 Úsuga members including the people responsible for the murder of three
police officers at the end of last month (at the same time, a separate grande attack in Buriticá
left four police officers seriously injured (10) (11). Secondly, President Santos has named the
head of the Úsuga/Urabeños clan, one Dairo Antonio Úsuga David, as the country’s most
wanted man and doubled the reward for information leading to his capture to 3 billion pesos
(U$1m and loose change).
The Santos government is playing hardball with the threat posed by this paramilitary group and
as part of the back-story, we’re now getting another raft of “illegal gold trade now worth more
to criminal groups than drugs trade” articles, a theme that comes round on occasion and it
complete BS of course, but there’s no doubt the criminal bands are behind at least some of the
illegal gold mining activity and they’re using it to help launder their ill-gotten gains. In sum it’s a
situation that may or may not turn out well for CNL.to and we certainly applaud the Santos
government for not backing down. They’re doing the right thing by confronting the
Úsuga/Urabeños but the reality of today’s situation must also be recognized; the political and
social risk of working Buriticá continues to be off-scale high until the problems are resolved.
Don’t expect to read or hear about this in any of the CNL corporate presentations.
Keiko Fujimori will be Peru’s next President
For unimportant reasons it takes a long time to get a full and official result for an election in
Peru. I took this screenshot of the top of Peru’s national newspaper “La Republica” yesterday
Saturday afternoon and with 99.93% of votes counted the numbers stack as follows:
Therefore the most likely scenario has come to pass and Keiko Fujimori now faces off against
Pedro Pablo Kuczynski (PPK) in the second round run-off to decide who becomes the next
President of Peru. And let’s be clear: Barring accidents or a campaign changing turn of events
(anyone with Panama Papers problems perhaps?) Keiko Fujimori will win it.
For many people, your author included, the mere thought that the daughter of Alberto Fujimori,
Peru’s quasi-dictator of the 1990’s and in jail after being found guilty over very serious
corruption and human rights matters during his mandate is about to become the country’s next
President is an affront to all logic and morality. But hey, that’s the way Peru is and I’m just
going to have to get used to the idea. I’ve called Keiko as most likely all year (12) the results of
last weekend’s election have made it a near-certainty. With nearly 40% of valid votes, Keiko’s
lead going into the second round run-off against PPK looks unassailable on the straight headline
numbers and if you start diving deeply into the vote data, as in this solidly researched report
did (13) (NB Spanish language and you’ll need to know about the subject to follow it, because
17

,
the author is a well-known political commentator in Peru and is speaking to those who read him
regularly), the writing is even more clearly on the wall. I’ll even give you a call on the second
round numbers, with Keiko getting between 53% and 55% of valid votes and PPK coming up
short with 45% to 47%.
Added to this is the results (no second round on this) of the make-up of the next Congress and
due to the nationwide support for Keiko’s “Fuerza Popular” (Popular Force) party (FP), it is now
guaranteed an absolute majority in parliament with an expected 71 seats in the 130 seat
Congress (the proportional representation system is complex and it might turn out to be one
seat less or more than 71, but the majority is now a certainty). This gives an eventual Keiko
presidency a lot of power to push through its agenda, which brings us to our focus subject of
mining here at The IKN Weekly and what a Keiko government will mean to the industry.
First up the most important point, one we’ve repeated until blue in the face here on these
pages, that the new government’s economic policy will be classic neoliberal and the FP party
fairly standard right wing in its aspect (though it’s never cut and dried in South America, as
governments of all stripes in the region enact and run social hand-out programs that look very
lefty to the average Northern onlooker, a Keiko government will have plenty of populist
measures on a social level too). The legal framework for mining may get some tinkering, it’s not
going to change much, Peru will still be awarded the title “Miner Friendly” by the world a couple
of years down the line. There will be some changes but there always are, the basic message
won’t change though.
Secondly, we can expect institutionalized corruption to increase in a Fujimorista-ruled Peru.
Corruption has never gone away here, but the Fujimoristas have an especially poor reputation
for getting rich quick and the way a lot of them get into politics specifically to make money. On
this score, let’s just say that the experienced mining companies will “know how to handle the
situation” and leave it at that.
Now for some details. The FP manifesto (14) covers their proposals for the mining industry and
alongside the normal platitude type of policy statements, FP wants the following for the
country’s mining industry:
• Better levels of staffing at both the Ministry of Energy and Mining and the Environment
Ministry in order to attend to the sector’s needs.
• Closer government involvement in the conversations and agreement processes between
communities and mining companies on social and community relations.
• Effective environmental controls at all stages of the mine development, from
exploration onward. It’s up for debate what “effective control” means, but this suggests
more red tape.
• Official policy that water and its supply is first and foremost for humans, then for
agriculture/livestock, then available for mining projects.
• Support for mining projects and companies that go about their jobs responsibly.
• The implementation of a new government policy to replace the current “prior
consultancy” system set up under Olanta Humala, called the “National System of
Prevention and Management of Social Conflicts” (Sistema Nacional de Prevención y
Gestión de Conflictos Sociales). The idea will be to form a body that heads off conflicts
before they arise and in the case of a conflict, will be able to pass judgment.
• Establish a “Ollachea Plan”, modelled on IRL’s community relations success at its
flagship project (something that contrasts to its well-documented corporate in-fighting
and problems), which would be a law that would allow companies to offer a minority
shareholding in a mining project. This would not be an obligatory law, but a framework
that mining companies can use if seen fit (i.e. watered down from Keiko’s original idea
last year to make it a standard policy). Alongside that, enact protocols that will
encourage mining companies to use local service providers instead of bringing in their
own third parties.
• Finally, one of the more polemic policies proposed by the Keiko FP party is the scrap
18

,
the current formalization process for informal/artisanal/illegal (delete according to
taste) miner and re-start the process form zero. In theory a good idea as the current
law is not working, in practice it’s a tacit licence for informal miners to keep on being
informal indefinitely, a clear populist move. This risks the expansion of the illegal
mining sector in Peru and that would be to the detriment of the formal mining sector
over the medium and long-term.
Overall, the changes for Peru mining under a Keiko administration will be in the margin, not in
the main text.
Market Watching
Tahoe Resources (TAHO) (THO.to) and Richmont Mines (RIC) (RIC.to)
As promised some more information on the news broken on the blog last week (15) that Tahoe
(TAHO) is looking to close another empire building deal and snap up Richmont (RIC). The
notable move in RIC once the information about the talks was revealed, which was sustained
on 2X average trading volumes Thursday and 1.5X average volumes Friday (volumes are
roughly equal on its NYSE and TSX tickers) lends its own credence to the information; there’s
no point in bring a greenhorn and thinking that you’re the only person who knows something.
I want to add details and comment here today, but you surely understand the need to protect
sources as well (which, by the
way, have moved from
singular to plural on this
story).
First the major difference
between the information
gleaned about the TAHO /
Lake Shore Gold deal,
published on February 4th
before that deal was
announced on February 8th.
In that scoop post (16) I wrote
that “...the talks are at the
stage where the only question
left on the table is the final
price for a friendly deal (by the
way, THO wants it to be all-
paper)”. It’s not been that
easy this time for Kevin MacArthur and his team, last week’s post on the Richmont / Tahoe
Resources negotiations (17) had no such detail and that’s because TAHO is finding the RIC
board to be a tougher nut to crack. Yes the talks are advanced, once again it’s framed as an all
stock deal (several longer-term holders of RIC are in at higher prices, they’re not likely to
accept cash at this point but RIC, under chair Chamandy, isn’t in a hurry to buckle the same
way that Tony Makuch was. More than one person commented to me late last week (after the
post went up) that the RIC people have had a “we don’t sell at any price” attitude in place for a
long time, which may be real or may be represented but as anyone in business knows, there’s
always a price. Always. What’s also true is that RIC may offer that position but I know darned
well that the talks have continued, it’s not as if they’re not answering the phone or refusing to
meet for discreet social meals. One of the matters IKN is led to believe is that the all-share deal
is the only true way forward but the RIC side is concerned about future deals TAHO may do as
it build its empire and wants some sort of assurance that its participation in New Tahoe won’t
be diluted away. That, in essence, is a way of asking for a better share ratio on the merger.
That TAHO has been pushing hard for a deal at this time may also be due to a potentially
19

,
lacklustre 1q16 at the company. Market expectations may have been raised too high for this
quarter at least, if so it would make sense for TAHO to close a deal at a better relative share
price ratio (and notice the use of modals and conditionals, I’ve had to be very careful in the
way this paragraph got phrased).
To sum up (this piece isn’t as detailed as I’d like, but that’s the nature of the beast). Yes the
two sides have been talking and they are still talking, the advanced nature of the potential deal
is clear. However it’s not a done deal yet, not in the way LSG was at the time of that scoop. I
mentioned to one of the people with whom I talked last week that at this time it’s a probable,
by no means a definite and I’d put the chances of it closing at 75% or 80%, not 100%.
Finally, please note I hold no position in RIC. In fact I was asked about this last week by reader
PJ, summed it up very neatly in a one line mail, “If you have this information why don't you buy
RIC?”. Fair enough and to boil it down and avoid the obvious arguments (i.e. I’d be open to
criticism if I were long, neutral or short, there’s always something you can accuse me of under
any circumstances) there are two reasons. First after watching the way LSG got no “takeover
bonus” from the deal with THO (i.e. it would have risen by the same amount with or without a
deal TAHO got in without paying extra) I see no reason to pay up for RIC stock this time.
Second this information is relatively new to me, it’s not the same situation as LSG when I knew
for weeks and months they were being courted by more than one entity (plenty of evidence, I
said as much all through late 2015 and early 2016). When presented with information such as
that of THO/RIC, I’m not going to keep it to myself because it’s one of the basic points of the
IKN blog, the IKN Weekly and the way of doing things round here. It’s one thing to talk the talk
against the BS way that the mining industry does its business, another to walk the walk. The
truth will set you free, as somebody much smarter than I once wrote that somebody else said.
He-said-she-said BS and considerations of strategic advantages are for somebody else, I’ll just
tell you what I know (or more accurately, as much as I can tell you without dropping other
people in it) and move on, you can do what you will with the information. We’re all big girls and
boys round here.
Correcting on and adding to last week’s Starcore International (SAM.to) note
I received no end of mails regarding the obvious math error at the end of last week’s note on
Starcore (SAM.to) in which I promoted the stock to house Top Pick and upped its price target.
To cut to the chase, here’s how the end section started because it’s where the error is loudest
and most clear (bold type added today):
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
I’ve split SAM up into its main moving parts and tried to give a share price value on each
piece. Let’s start with the basic count as stands today which goes like this:
• Real Estate Deal: Assuming correct closure, 17c per share
• Altiplano: If all goes well with the commissioning and ramp up to FCF+ status, we
discount to $7m value and 14c/share
• San Martin: Assuming an easily reached $2m annual net profits at current gold
prices, then a 6X P/E, San Martin is valued at 24c/share.
• Asset Book: Currently booked at just over $3m, or 6c/share
• Strong financials: Using the consistent $10m working cap number as guide,
20c/share.
That little lot comes to 75c, which is where....(continues)
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
IKN362 back and yes indeed it doesn’t add up to 75c, it adds up to 81c. What you need to
know regarding that:
1) Yup, it was a dumbo number mistake, I have no excuses and have been kicking myself
all week. I know my record on spelling errors in The IKN Weekly isn’t the world’s
20

,
greatest but when I spot one on re-reading any given edition it annoys me a little. But
when it comes to number errors I feel utter shame and self-loathing.
2) I know why it happened too. Without getting long-winded, I was playing around with
the model all weekend and even while writing up the note on Sunday. Late-ish Sunday
I was still undecided between two basic scenarios, one more conservative and another
slightly more aggressive. It got late, I finally decided on the slightly more ambitious
target model but by that time I’d already laid down a lot of the script.
3) My error wasn’t really in the math but in poor proofreading, I didn’t weed out on
everything I’d written. My circumstances included being somewhat tired and also
distracted by the Peru election news that was coming through realtime, plus a personal
matter or two that I needed to address in the next days (Monday and Tuesday). I do
not deny my complete stupidity on this matter and I’m not pleading guilty with
mitigation either, I’m guilty as charged and merely offering background to explain why
I was stupid.
4) While here and on an unrelated side issue, two mailers noted that I hadn’t taken into
account the company’s debt position. In fact I’d addressed this by using working cap as
the benchmark for its 20c/share structural value and while I admit that doesn’t take
into account the minor $1.3m financial loan due August 2017, it does take into account
the larger $4.5m loan due November and it also deliberately ignores the non-financial
long-term liability position of SAM, which makes precious little difference to the
company as a going concern.
The bottom line: Crass communications error or not I’m comfortable with my new Top
Pick stock and set the first price target for SAM.to at 81c, which means that even after
last week’s substantial price rise there’s still over 42% between us and ringing that particular
bell. This is a good thing but I stress that SAM.to has been promoted to Top Pick not just for
the type of number the model spits out. When the prospect of “multi-bagger winners” is on the
table, they’re always going to require a dose of luck, SAM is no different to that. What SAM
offers in the longer-term is the opportunity to benefit enormously, not just 42%-sized, if the
right macro-market things happen. To repeat, by valuing the fixed asset book at $3m
(6c/share) we get to allow a lot of potential upside if just one of the any pieces of land on its
books gets to become a hot exploration play. If moly runs to $20/lb, what’s Creston worth? Et
cetera.
Conclusion
IKN362 is done, we end with bullet points:
• We add Sandstorm to the portfolio as from this week coming. It’s already moved, but
there’s more than enough meat left on this bone for the rest of 2016. A longer-term
position, a serious stock, not a small position.
• INV Metals has turned into a star, and more quickly than I’d imagined too. As for the
new Top Pick Starcore, I’d like it to cool its jets and come back a bit, around 50c
(perhaps 55c) and I’ll add some more.
• Be clear, I’m in accumulation and buy mode so I’ll be hoping for a drop in gold this
week, The difference is that the timescale of my investments has now changed, I’m still
a buyer whatever gold does in the near-term, the prizes are now further out and a lot
bigger.
I thank you in advance for any feedback. Our Top Pick stocks are B2Gold (BTG) (BTO.to) and
Starcore Intl (SAM.to). Flash updates will be sent if required by events.
I wish you good trading fortune, ladies and gentlemen.
Mark
21

,
Footnotes, appendices, references, disclaimer
(1) http://www.sandstormgold.com/news/2016/index.php?&content_id=487
(2) http://www.sandstormgold.com/news/2016/index.php?&content_id=491
(3) http://www.sandstormgold.com/news/2016/index.php?&content_id=492
(4) http://www.sandstormgold.com/news/2016/index.php?&content_id=493
(5) http://www.marketwired.com/press-release/inv-metals-announces-private-placement-financing-tsx-inv-2113599.htm
(6) http://www.reuters.com/article/us-chile-copper-ahome-idUSKCN0X812F
(7) http://incakolanews.blogspot.pe/2016/04/interesting-reader-mailbag-part-2.html
(8) http://www.marketwired.com/press-release/carmaxs-eaglehead-property-2115402.htm
(9) http://www.elheraldo.co/local/buscamos-extradicion-de-miembros-del-clan-usuga-embajador-de-eeuu-254794
(10) http://www.rcnradio.com/locales/tres-uniformados-muertos-cuatro-heridos-dejan-amenazas-del-clan-usuga-
antioquia/
(11) http://www.radiosantafe.com/2016/04/16/capturan-al-jefe-de-sicarios-del-clan-usuga-que-operaba-en-antioquia/
(12) http://incakolanews.blogspot.pe/2015/12/ten-random-predictions-for-2016.html
(13) http://mad.utero.pe/2016/04/14/conoce-el-peru-primero-2-todos-los-mapas-que-has-estado-compartiendo-no-
sirven/
(14)
https://www.google.com.pe/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&cad=rja&uact=8&ved=0ahUKEwjby6Oy-
pPMAhWBOSYKHZVEB8UQFggyMAM&url=http%3A%2F%2Fwww.telesurtv.net%2Fpages%2FPDF%2Fkeiko-
pdf.pdf&usg=AFQjCNFJpSFyaimF19MrBSeP8t5G54kM-g&sig2=zanpTJjs-Kf9XazZGDyAlg&bvm=bv.119745492,d.cWw
(15) http://incakolanews.blogspot.pe/2016/04/tahoe-resources-taho-thoto-close-to.html
(16) http://incakolanews.blogspot.pe/2016/02/tahoe-resources-taho-thoto-in-late.html
(17) http://incakolanews.blogspot.pe/2016/04/tahoe-resources-taho-thoto-close-to.html
Stocks To Follow Closed Positions 2015
Closed in 2015 closed close price
Argonaut Gold AR.to jan'15 C$1.47 14-dec-14 C$2.53 72.1% Big gain small time, profit taken
Amerigo Res ARG.to jan'15 C$0.405 20-jul-14 C$0.285 -29.6% Given up on weak Cu prices
Reservoir Min. RMC.v jan'15 C$6.05 18-jun-14 C$4.12 -31.9% sold on Cu downturn
Coro Mining COP.to jan'15 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
New Gold NGD oct'15 U$2.18 23-aug-15 U$3.05 39.9% trade closed, profit taken
Legend Gold LGN.v nov'15 C$0.085 01-mar-15 C$0.035 -58.8% tiny "land grab" idea, failed
Timmins Gold TGD nov'15 U$0.245 20-sep-15 U$0.15 -38.8% small near-term loser
22

,
Stocks To Follow Closed Positions 2014
Closed in 2014 closed close price
Fortuna Silver FVI.to jan'14 C$2.80 23-dec-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-apr-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-jan-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-jan-14 C$0.86 -17.3% silver/M&A spec, rel. small
Timmins Gold TGD nov'14 U$1.38 09-apr-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-jan-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-jan-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-apr-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-apr-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-jan-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-apr-12 C$0.13 -83.5% closed
Bellhaven BHV.v jun'13 C$0.065 03-jun-13 C$0.12 84.6% closed ST trade
B2Gold BTO.to aug'13 C$3.07 28-nov-12 C$3.44 12.1% sold 1/2 to raise cash
Colossus Min. CSI.to aug'13 C$0.72 24-jul-13 C$0.79 9.7% closed thru nerves on future
Pretium Res PVG.to aug'13 C$8.20 11-jun-13 C$10.14 23.7% closed to raise cash
Bear Creek BCM.v sep'13 C$2.06 30-may-13 C$2.20 6.8% sold on pol risk decision
MAG Silver MVG oct'13 U$7.00 12-sep-13 U$5.62 19.6% near-term short
Gold Res Corp GORO oct'13 U$9.52 03-may-13 U$4.98 47.7% short tgt made, covered
AQM Copper AQM.v oct'13 C$0.31 16-oct-11 C$0.125 -59.7% closed failed trade
First Majestic AG nov'13 U$11.51 07-nov-13 U$10.50 8.8% v near term short, closed
Fortuna Silver FSM nov'13 U$4.00 07-nov-13 U$3.68 8.0% v near term short, closed
Primero PPP nov'13 U$5.70 07-nov-13 U$5.75 -0.9% v near term short, closed
Starcore Intl SAM.to nov'13 C$0.235 08-sep-13 C$0.17 -27.7% ST trade didn't work, sm loss
B2Gold BTO.to dec'13 C$2.22 28-nov-12 C$2.16 -2.7% closed ST trade to raise cash
23

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

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