IKN #374Premium

,
The IKN Weekly
Week 374, July 10th 2016
Contents
This Week: In today’s issue, Gold demand and a public apology for AK, Still preferring gold
plays over silver plays.
Fundamental Analysis: Updating on Sandstorm Gold (SAND) (SSL.to), Updating on Starcore
International (SAM.to).
Stocks to Follow: Overview, Miranda Gold (MAD.v), Regulus Resources (REG.v), Riverside
Resources (RRI.v), Wesdome Gold Mines (WDO.to), HudBay Minerals (HBM) (HBM.to), B2Gold
(BTO.to) (BTG), Lara Exploration (LRA.v), Continental Gold (CNL.to), INV Metals (INV.to),
Starcore Intl (SAM.to).
Copper Basket: Overview, Ivanhoe (IVN.to), NGEx (NGQ.to), NovaCopper (NCQ.to).
Low Cost Producer Basket: Overview, Newmont (NEM).
Regional Politics: Colombia: The peace process has hair, Brazil tailings dams, Argentina: Gas
price rises deemed illegal, Ecuador: Rafael Correa threatens to run for President, Colombia:
Segovia and Gran Colombia Gold (GCM.to).
Market Watching: Dalradian Resources (DNA.to): Sprott selling, Two 43-101 technical reports
filed on Friday evening, IMPACT Silver (IPT.v) has a new large shareholder, Marin Katusa’s
upcoming pump, Asanko Gold (AKG) redux, Orla Mining (OLA.v-H): Something is brewing.
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
In today’s issue
• We change the price targets on Sandstorm (SAND) (SSL.to) and Starcore (SAM.to),
both those pieces in the Fundies section.
• The market is again rotating out of the Tier One stocks and money is flowing into the
mid-tiers We see it in the price changes of our Stocks to Follow, we see it in the results
from the Low Cost Producer basket. That suits me fine
• There’s a more speculative feel to the gold market all of a sudden. That won’t
necessarily mean that gold tops out at or around the current price price and please be
clear, I’m not calling a top. The way things are gold could blast much higher and it
wouldn’t surprise me much, all I’m picking up is a gold market with newer, more
volatile and probably weaker hands driving the price.
• There were plenty of interesting filings on SEDAR on Friday, so check out the snippets
and bits and pieces on BTO, WDO, DNA, IPT and others.
• Stick Orla Mining on your radar, something is happening there.
1

,
Gold demand and a public apology for AK
I’m kicking off this week’s edition by both thanking and making a public apology to reader “AK”,
who put me in my place last week. Quite right too, here’s what happened.
Thursday morning I got this mail from AK:
HI Mark,
Thought this might be of interest to you.
Nice chart of ETF holdings vs Gold price!
http://www.zerohedge.com/news/2016-07-07/following-near-record-buying-spree-
gold-etf-holding-rise-above-2000-tons-highest-201
Can you tell me if you are a ZH reader, or do you have other mailers that link to
the site? If so I’ll stop sending you stuff.
As some of you know, I think Zerohedge is a general waste of time. Also as it so happens I’d
had a rather stressful early week due to non-work matters which I offer in slight mitigation, but
it’s still no excuse for the mail I sent back:
I'm not a zero hedge reader. Therefore you do not need to send me any zero
hedge links. Life is too short.
That was stupid. It matters not whether I’m sometimes a cantankerous piece of excrement
early morning, nor do any personal issues matter much. In hindsight that kind of snippy remark
is inexcusable and it’s why I’m starting today’s intro with this, a public apology. However the
other reason I get to share it with you today is the upstanding nature of AK who handed back
my bad attitude with a large dose of interest and got my head straight. He replied with this:
Growing up, my folks always taught me that is costs nothing to be nice. When I
started in business I realised that I could make that same 0 cost item go a long
way with my customers.
It was a very good lesson.
To which I replied:
Well said. I apologize.
To which he kindly added:
TBH I thought the article was very relevant as a confirmation to your ongoing
thesis that GLD holdings are an excellent guide to where we are at - and where
we are going. That chart seems to imply your thesis is 100% spot on (but maybe
you knew that already). That is why I thought you might be interested.
And on reflection (and after
reading the ZH article), he’s
GLD gold holdings, April to July 2016 (metric tonnes)
right. I’ve noticed on the few
1000
occasions I’m put in front of a 980
ZH piece that they come in 960
wildly varying levels of quality 940
and to start, the one AK sent 920
900
over was at the better end of
880
the range. It talked about the
860
rise in the level of gold bullion 840
tonnages at the large ETF, with 820
first among equals the SPDR 800
ETF (GLD), the biggest of the 780
lot and the one I’ve used to
track the influence of “paper
2
61/1/4 61/5/4 61.7.4 61/11/4 61/31/4 61/51/4 61/91/4 61/12/4 61/52/4 61/72/4 61/92/4 61/3/5 61/5/5 61/9/5 61.11.5 61/31/5 61/71/5 61/91/5 61/32/5 61/52/5 61/72/5 61/1/6 61/3/6 61/7/6 61/9/6 61/31/6 61/51/6 61/71/6 61/12/6 61/32/6 61/72/6 61/92/6 61/1/7 61/6/7 61/8/7
mt
source: SPDR GLD data

,
gold” on the gold price market this year. There above is the latest update of my usual suspect
chart on GLD holdings and as you can see we’re now knocking on the door of 1,000 metric
tonnes for the first time in a long time (to be exact, the 18th of June 2013). Not only that, but
GLD has added over 65 tonnes since Brexit day, June 23rd. That’s U$2.8Bn or so’s worth of gold
(yeah, with a B) and my idea of serious safe haven money.
The main thrust of the ZH piece was that GLD and ‘paper gold’ was being used as a speculative
vehicle more than for longer-term investment and as such, was a gauge to near-term sentiment
in gold. Here’s an excerpt:
“...the subset of gold-buyers who prefer to trade a "paper" version of gold in the form of ETFs only
start buying when prices rise, with buying - ironically - peaking just around the time the price of
the commodity does the same. Whether this has to do with momentum-chasing algos or is simply
a travesty of what new normal "investing" is all about, is unknown...”
That’s the same thing that these pages noted a few weeks ago (just in different terms), that
GLD and it ilk were a leading indicator in gold price moves. I think that’s still true and here ar a
couple of extra snippets to add to the evidence.
Firstly, I won’t plague you with a chart or pretend analytical expertise on this subject as there
are many places that do it better than me (start with Gary Tanashian over at Notes From the
Rabbit Hole), but much has been made of the fact that the Comex Commitment of Traders
report (COT) this week shows a record net long position in the “specs”. This would be
conducive to a gold price that’s reaching a near-term sentiment limit and ready to correct.
Secondly, let’s take a better
GLD gold holdings, Bexit vote to date (metric tonnes)
look at the bullion holding
1000
levels of the last few days at 990 982.72 982.44 978.29 981.26
GLD, via this close-up chart 980
970
from “Brexit Day” onwards:
960 953.91
Yes, there has clearly been a 947.38 947.38 950.05 950.05
950
couple of safe haven buying 940 934.31
days in the last couple of 930
920 915.9
tradnig weeks, notably Brexit
910
result day and then Tuesday
900
July 5th, when the USA got 890
back to work after overeating 880
on hot dogs. Those are
interesting but so is Thursday
July 7th. You see how GLD
holdings suddenly dropped by over four tonnes? That
was the day before the US BLS jobs report and if we
take a look at what happened to gold that day (right), I
get the strong impression that somebody got their hind
quarters handed to themselves on a metallic platter, all
the trimmings.
The point can be summed up in one word: Speculation.
It would seem to me that the active end of the gold
market isn’t about safe haven risk factors or long-term
investment planning, because at the cutting edge of the
gold market we’re now seeing speculative hot money
slosh in and out. If they make a profit or a loss it’s up
to them, their skill and their timing, I’m more concerned
(yup, that’s the word) about the more generalized
signal coming from such action, gold is now moving into
volatile waters.
3
61/32/6 61/42/6 61/72/6 61/82/6 61/92/6 61/03/6 61/1/7 61/5/7 61/6/7 61/7/7 61.7.8
mt
source: SPDR GLD data

,
Time jump: The above was written on Saturday morning, cut now to Sunday and I’ve just re-
read my script and thought “Oh my stars, it sounds like I’m calling a top in gold!”. I’m not,
please be clear on that. And even if I am (or it sounds like it) I’m not particularly averse to the
idea, though in a perfect world the correction comes after INV Metals gives us its officially late
PFS update and allows me to get out at a cozy price (oh, asking too much am I? ☺). I think
there’s reason today for caution on the gold (and silver) price with juniors queueing up to run
bought deals...another signal that the value-sniffing CEOs of this world think now is the right
time to fund up. The best advice I have for everyone who reads this publication hasn’t changed
for weeks on end, it’s “Buy. Hold. Win.” and the way the real money will be made in this bull
market for precious metals miners by the people smart
enough to do nothing, to be right and sit tight (Mr.
Partridge). In fact, one of the ways you can maximise
your profits this year is to unsubscribe from The IKN
Weekly, because in my opinion you’re better off buying
10 shares in Sandstorm per month than four editions of
this letter. Or any other newsletter, too. Seriously.
So I’m not going to lighten exposure to the market just
because of a feeling (that’s all I have) that gold’s close to
a near-term top and hot money has got the sector all
frothy. What I will do is stick to my plans, hold the
serious trades though as I look for the serious longer-
term wins, stick to the laid-out plans for the nearer-term
speculations (e.g. INV.to) and allow myself the fun of
playing around at the small pennyflip end of the game
(e.g. Miranda Gold last week and this) because those can
be a lot of fun. But I’m not adding to the “real
investments” for the time being and will keep powder
dry, let’s see how July pans out. And thank you again reader AK, yours was the most valuable
thing that happened in my working week and I am in your debt, sir.
Still preferring gold plays over silver plays
The reason (apart from my typical pig-headed obstinacy of course) is that silver mining
companies look really expensive. Below a chart and to get it here are the parameters used:
• The current market cap of typical PM companies in US Dollars
• The current gold/silver ratio (67.4X according to Kitco this Saturday)
• The 2016 production guidances for all companies in gold equivalent terms
• Divide AuEq guidance by market cap
I consider those to be reasonable ways in which to value these companies on their expected
production today. Here’s what comes out:
Market cap per ounce of Gold Equivalent production in 2016
9000 8315
8000
7192
7000
6000
5081 5064 5000 4727 4354 4213
4000
3000
2000
1000
0
FR FVI PAAS BTO ABX NEM BVN
source: company guidances for 2016, NYSE
4
6102
ni qEuA
zo/$U

,
Now for sure this chart’s results don’t take into account things such as guidances for profit
margins (fwiw gold miners tend to do better) or growth expectations down the line (e.g. BTO
has a lot of growth getting priced in now), so I’m not claiming an objective result of empirical
final proof. But when silver companies such as FR.to or FVI.to with a track record of thin profit-
making (they never seem to be able to translate gross margins into net margains, the reason is
often sustaining capital) can command a per-ounce value approaching double that of gold
names, my value nose doesn’t even need to run the numbers.
Silver’s been on a tear yes, but I’m going to play my “Choose Your Battles’ card on this and
defer from entering the fray.
• Yes I’ve missed the boat on silver stocks. Big gains for others, me in the bleachers, so
be it.
• But no, I haven’t missed the other boat on a whole bunch of (mainly) gold stocks.
• And I’m quite happy about the way things are, in terms of risk management versus
returns to date. Which is a different and third boat, it’s called the boat that I am not
going to rock.
On the one hand there’s evidence to suggest silver’s rush up to the recent U$20/oz has put it
into very overbought status, for another the silver stocks seem to be baking in silver prices
even higher than the ones we see today. That keeps me in the gold names, thanks and all that.
Fundamental Analysis of Mining Stocks
Today we cover changes in two of our main stock plays, Sandstorm and Starcore.
Updating on Sandstorm Gold (SAND) (SSL.to)
Last week saw two significant events out of Sandstorm Gold (SAND) (SSL.to), namely the
closure of its U$57.5m gross proceeds bought deal placement (8) in which, as expected, the full
overallotment was taken. Then once the placement was closed SAND announced its preliminary
2q16 sales results of 12,500 ounces of gold equivalent (AuEq). On the back of these changes
we today take the opportunity to update on our coverage and change our target price.
Although not a full NOBS report, the changes in the corporate numbers mean a look at our
normal top-box isn’t such a bad idea.
Shares out: 151.21m
Options & Restr.Shares: 7.42m
Warrants: 28.0m
Fully diluted shares: 186.63m
Current share price: U$4.90
Market Cap: U$740.93m
Approx working cap per S/O: $0.10
All prices are in US Dollars unless stated. Forex U$0.80=CAD$1
As for recent coverage, along with the weekly coverage it’s worth checking back at the NOBS
reports we’ve run on SAND, those are in IKN355 dated February 28th and IKN362 dated April
17th . It was in that second report with SAND trading at U$3.89 that we called buy on the stock
and set a U$5.50 share price target. Today SAND is at U$4.90 and has already covered 62% of
the run to our target price in just one quarter (minus a week). Not bad at all. So to today and
there are three matters to cover:
• The change in the balance sheet at SAND due mostly to the placement
5

,
• The latest production numbers and what they mean
• The change in market attitude towards the company
Those are the three subjects for today’s note (it’s not an extensive look, I’m going to try and
keep each section brief), once they’re done we wrap them together and consider a revised price
target. So here come the main three issues, in no particular order.
Balance sheet changes
The recently closed U$57.5m bought deal placement (1) was well timed, the right size and the
difference it brings to SAND’s balance sheet is impressive. We see its effect in the balance sheet
and start with the overview liabilities and assets charts, but as the the vast majority of value in
SAND is still in its fixed assets and the real changes are in the financial pieces of SAND, we
need to see other charts to get the full picture.
SAND: Liabilities Breakdown per qtr
120
110
100 90
80
70
60
50
40
30
20
10
0
The two places we’ll see the real change
are cash/working capital and financial
debt. SAND still has its U$110m
revolving debt facility but, as its main
objctive this year has been to pay down
debt, we expect the majority of the
raised cash to go to that job. It’s
impossible to know precisely how much
it will put towards paydown and how
much it will keep in treasury for any
deals in the pipeline, but here’s my best-
guess, with bank debt paid down to
U$20m at the end of the current
quarterand working capital at just over
U$20m, assuming of course SAND does
nothing with its new influx of cash between
now and then (which is unlikely, they’re in
dealmaking mood I suspect but we on the
outside have to start somewhere).
The point is that all of a sudden, SAND has
managed to reduce its debt facility to the very
controlled level and that’s gone down very well
with the marketwatchers. The hit taken to the
share count isn’t so big either, now with
151.2m shares out (below):
6
31q4 41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 61q1 tse61q2 tse61q3 tse61q4
source: company filings
srallod
fo
snoillim
SAND: Assets
600
550
500 LT debt 450
400 current debt
350
300
250
200
150
100
50
0
31q4 41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 61q1 tse61q2 tse61q3 tse61q4
$m fixed
other current
cash
source: SAND filings
U$m SAND: Long-term bank debt position
90 83.5
77
80
70 64.5
60
50
40
30
20
20 15
10
0
0
3q15 4q15 1q16 2q16est 3q16est 4q16est
source: SAND filings, IKN ests for rest of 2016
60 SAND: Working Capital per qtr
55
50
45
40
35
30
25
20
15
10
5
0
51q1 51q2 51q3 51q4 61q1 tse61q2 tse61q3 tse61q4
source company filings/IKN ests
srallod
fo
snoillim

,
SAND: Shares Out
160
140
120
100
80
60
40
20
0
7
31q4 41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 61q1 tse61q2 tse61q3
source: company filings/IKN ests
serahs
fo
snoillim
Summing up quickly (trying to be brief) there are a couple of extra influences on the much-
improved balance position of SAND, other than this bought deal money. For one thing it’s
making cash and that gets to treasury as well, for another its equity assets such as the very
successful investment in Mariana Resources (MARL.L), now 300%+ up, adds to liquidity as well.
But it’s the result that’s the thing and SAND as a company suddenly looks very solid.
The latest sales numbers
On Thursday SAND announced its preliminary sales figure for 2q16 of 12,500 oz AuEq (2).
That’s more than my model assumed and a good number. Also, with the improvement in the
gold price, if we take the average LME fix for the quarter and factor it in estimated revenues for
2q16 stand at U$15.7m.
SAND: Quarterly Revenues
20
15.295 15.559 15.285 15.429 15.7
15 13.153 12.487 12.086 13.384
9.863
10
5
0
41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 61q1 tse61q2
$m
source: company filings/IKN ests
That compares well to previous quarters, as you can see. From there we can go to the “cash
generating capacity” for SAND (which is more important than its net profits, we went through
all that in IKN355 and IKN362) and that looks like this:
SAND: Cash generation capacity
18
16
14
12
10
8
6
4
2
0
41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 61q1 tse61q2
$m total revenues
prod costs + admin costs
difference
source: company data, IKN calcs
On a per-share basis, that looks good:

,
SAND: gross profit per share
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0.00
-0.01
-0.02
8
41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 61q1 tse61q2
$
source: company financials/IKN ests
All these criteria are plenty ahead of our previous conservative forecasts for 2016. For example,
up to now we’ve based our model on
just over 41k oz AuEq sales this year, U$m SAND: Adjusting Conservative revenues forecasts
100
while the first half of the year have
IKN362 price deck
already seen 23,881 oz AuEq and that 80 IKN365 price deck
suggests SAND will be close to the IKN374 price deck 80
upper end of its guidance for the year 60 64
(50k oz AuEq). Therefore it’s time to 58 60
40
adjust both the conservite model’s
production estimates and average 20
metals prices and when I do, here’s
0
how the chart looks now:
2016 2017 2018 2019
source: SAND data, IKN calcs
Those are big jumps and I stress, even
that U$58m revenue forecast is conservative compared to the U$29m in the first half of this
year (price rises will see to that).
The change in market attitude towards SAND
The IKN362 buy call and purchase were predicated at least in part on the decent sales results
we expected from SAND, but the strategic reason was what we saw as a change in corporate
attitude and strategy at the company. SAND has previously suffered from an image of being too
fast and loose for its own good and a couple of its biggest and highest profile investments had
blown up in its face in spectacular style (e.g. Luna, Colossus). But in April we confirmed a
process that we’d already suspected was happening, that SAND was becoming “serious”.
What we’ve seen in the last few days, particularly since SAND ran and closed that balance sheet
improving placement, is a market that’s now putting it in the same ”serious” frame (and yes,
now you mention it I am pleased about seeing this trend change before others, thanks for
asking). Here for example is some script that appeared in Stockwatch last week about ratings
upgrades from two coverage brokerages (3):
The Globe and Mail reports in its Friday edition that Raymond James analyst Phil
Russo says Sandstorm Gold continues to make progress at becoming a stronger,
more diverse company. The Globe's David Leeder writes that Mr. Russo resumed
coverage of the stock following the closing of its $57.5-million (U.S.) equity financing
with an "outperform" rating. Mr. Russo boosted his share target to $7.25 (Canadian)
from $6.75 (Canadian). Analysts on average target the shares at $6.88 (Canadian). Mr.
Russo is forecasting a 50-per-cent increase in cash flow from 2016 to 2019 due to
recently acquired cash flow streams being realized. Mr. Russo says in a note: "The
financing provides the company the needed balance sheet flexibility to pursue further
potential acquisitions in the mold of those recently acquired over the last 12 months.
Those acquisitions have been favourably received by the market and seen a
restoration in sentiment towards the name. Coupled with some of its streams falling
into stronger hands through sector M&A, the investment case for Sandstorm continues
to strengthen, in our view." BMO analyst Andrew Kaip maintained a "market perform"
rating with a target of $5.50 (U.S.), up from $5 (U.S.).

,
That’s exactly the type of gravitas we want from the new-look SAND. And for what it’s worth,
that BMO Andrew Kaip is the very same anal yst I mocked on the blog on more than one
occasion for putting a U$4.50 price target on SAND in mid-June (4). It appears he’s upped his
target not once but twice since then. Just saying.
Conclusion: Reviewing and updating the IKN Weekly price target for SAND
Last time in IKN362, the U$5.50 price target was based on the lesser of the 1.8X Price book
target at the company, as well as the target of a easily reachable 15X price/sales ratio which
would place the stock target at U$5.80. Both of those target generation methods put SAND at
lower multiples than the royalty/streamer sector leaders such as FNV, SLW or RGLD and as
such eminently gettable (in my opinion). For example FNV commands a 23X price sales ratio, so
SAND at 15X isn’t any type of stretch. With the changes in the balance sheet items against
share price, that previously mooted 1.8X
price/book level now points to a price SAND: Price / Book Value Ratio
2.20
target of U$6.25 according to the model, 2.00
meanwhile the increase in earnings 1.80
potential thanks mainly to the price rise 1.60
1.40
in gold puts the 15X price sale method at
1.20
U$5.95 using the conservative earnings 1.00
model for 2016, or U$6.20 if we assume 0.80
0.60
SAND can repeat the U$15.7m in
0.40
revenues we expect it to pull in in 2q16. 0.20
0.00
Ok, I’ve just read that last paragraph
again and though I understand what I’m
getting at, it’s a bit gobbledegooky. What
I’m getting at is that it’s easy to justify a
higher price target for SAND these days, thanks to its improving fundamentals and/or its
improved earning power, plus of course the way in which it’s now being looked upon by the
market as a “serious company” and worthy of better multiples. That’s why today I’m
increasing the 12 month price target on SAND to U$6.20, representing a 26.5%
upside to this weekend’s price of U$4.90. This trade has started very well and of course it’s
benefitting from the better gold price and general market conditions, but it’s also reaping the
benefit of good managerial decisions, for example the move into Hot Maden and the recent
successful equity placement.
9
31q4 41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 61q1 tse61q2 WON
P/BV
source: SAND filings, IKN ests

,
Updating on Starcore International (SAM.to)
A phrase that moved into the language 121 years ago thanks to this Punch cartoon (a genteel
sort of publication even in its day) “curate’s egg” came to mind when reading the Starcore
International (SAM.to) news release of Wednesday last week (5). It was the first time we’ve
had solid news on the high grade mineralization reported by the company on May 11th, but
before we dive in let’s first let’s back up and give a brief history of recent calls here at the
Weekly on SAM:
• We’ve had SAM on board for a year and a half as a recommend on the ‘Stocks to
Follow’ list. I’ve thought for some time that the company offers tremendous value due
to its decision to go asset collecting at the right time in the cycle, plus its operating San
Martin mine which provides cash flow and keeps share dilution to a minimum.
• Things changed this year when The IKN Weekly went ‘Top Pick’ on SAM.to in IKN361
dated April 10th. At the time of that anal ysis SAM was a 47c stock, it traded at or
around 50c the next week and that means there are likely to be people reading this
anal ysis today who are sitting on 75% to 90% gains. At that time I upped the price
target to 75c, taking into account its present, its potential, the gold price, etc. But we
were also aware that thanks to its various parts, given luck in running SAM had the
potential to be a real live multi-bagger winner.
• Then in IKN 366 dated May 15th I upped target from 75c to $1.26. In that edition I
wrote (among other things) “If it weren’t a Top Pick already it would be as of this
weekend, we’re staring at a real opportunity here.” That was all about the new high
grading discovery announced at the company’s San Martin mine in Mexico and in that
edition we ran a lot of numbers, considered a range of possibles for what the new drill
hit might mean and sketched in some conclusions.
Now with more information on the drilling discovery thanks to last week’s NR we get to adjust
and tighten the anal ysis a little more. The Wednesday NR brought a lot of information and to
its credit, SAM also included detailed geological maps of the area in question. You can see them
here (6) and I recommend that you check them out, even if like me you’re not a geologist. I
came away with a conceptual grasp of the new high grade zone but lacking in qualifications it
was clear I needed back-up in this case, so I got the help of A. Person, a professional geologist
with a strong CV (no names no packdrill). But before we get to the interpretations we thrashed
out together, a couple of quotes from the NR itself which basically had two messages, one
about what SAM had found and one about what they could find. First, this:
In May of 2016, 536 tons were mined from the west block with an average
grade of 11.47 g/t Au and 76 g/t Ag. In June, the east (upper) block was
explored by drifting and raising and through June 20th, a total of 986 tons
have been produced at 8.92g/t Au and 67 g/t Ag. Geologists estimate that
10

,
1500 tons remain to be extracted from this zone at similar grades.
The simple math is 3,000 tonnes of 10g/t mineralization (with a strong silver kicker) from the
manto drilled and discovered by SAM in May. That, ladies and gentlemen, is smaller than we
would have liked and it therefore crimps any forecasts for higher head grades at the San
Martin. We’ll come back to that in a moment.
But the NR also contained news of more drill discovery since May, here’s the paydirt prose:
Drill hole 31-92 was recently completed to test the small remaining segment
between these blocks and the previously mined stope to the north. This hole
has returned a 9.1-meter interval grading 50.7 g/t gold and 115 g/t silver. This
hole appears to have located another of these fault bounded ore segments.
This is good news, as it strongly suggests that the
small mineralization pod hit and currently being
mined by SAM at San Martín isn’t the only one in
the location. It’s at this point that I handed over to
my geol pal who took a good look at the maps and
reached some reasonable conclusions from the
available data (it’s tough to nail these things down
and he was at pains to note that this type of first-
pass analysis only gets us in the ballpark, it
doesn’t predict with accuracy). Here I’m including
a couple of the details from the main map offered
up by SAM last week to ilustrate the more
important areas, but for brevity’s sake (and
because the quantative anal ysis of the zone is my
friend’s rather than mine, so I don’t want to sound
above my station) I’m going to cut to the
conclusions drawn from the evidence supplied.
It’s clear that this particular zone of San Martin is very broken up by faults, which may be why
Goldcorp (GG) didn’t develop the area when it was mine owner in the period to 2008, preferring
the non-faulted areas to look for the high grading lenses. We also know there’s a strong
geological precedent for high grading zones in San Martin, even though they were mined out by
GG. It’s therefore reasonable to say that the most likely situation is there are will probably be
lots of small high grade pockets that have been fractured by faulting. SAM so far has hit and is
mining one that comes in at 3,000 tonnes or so (in fact my geol pal says it may be 4k), but it
already has evidence of another and as the discovery process continues, they’re likely to get a
better handle on controls which means that if there are more areas to find (most likely) they’ll
be able to find them. So that’s better news than the topline “3000 tonnes and done” message
already, but it could possibly get a lot better than that. My geol pal notes that the heavily
faulted area where the original discovery was made is very localized. There’s reason to assume
that 1) the high grade zone continues to depth along strike where 2) it may be much less
fractured. If so, there’s a decent high grade zone that’s more easily mined waiting to be found.
11

,
So the bottom line from the NR on the San Martin high grade zone is a Curate’s Egg, good in
parts:
• The mineralization they’ve found and are mining is high grade, but it’s small in size. The
type of size that can make a positive contribution to one or maximum two quarters’
worth of production, we’re not talking years.
• But the location is heavily faulted, there’s likely to be more of these small zones and in
fact, SAM has already hit a new area showing similar characteristics.
• There are likely to be other small zones, it’s also possible that a larger, less-faulted
zone exists that would provide more regular, longer-term high grading feed.
So what does all this mean for San Martín production forecasts?
We now get to the real world matters of what
this high grading material can mean for
production and profitability at San Martin. Let’s
start by repeating a couple of charts from
previous notes, this one being the historical
annual head gades from the mine. They
reached a maximum average of over 4 g/t in
the four years ended 2005, then dropped away
as the high-grading zones which complement
the standard grade of rock became scarce. But
in Starcore’s time (2009 onwards) there have
been years of 2.5g/t averages, which is
reasonable.
For more detail, this second chart which shows recent quarterly average head grades.
SAM.to: Avg gold head grade (g/t) per qtr
3.50
3.00 2.81 2.89
2.50 2.23 2.38 2.55 2.34 2.42 2.36 2.22 2.22
1.98 2.00 1.99
2.00 1.66
1.50
1.00
0.50
0.00
12
31.naj 31.rpa 31.yluj 31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa 51.yluj 51.tco 61.naj 61.rpa
San Martin mine: Average annual gold grade
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
g/t Au
source: company filings
The tailing off in the last few quarters has been notable, but back in 2013 and 2014 grades
were strong and peaked at 2.89 g/t Au, the type of numbers we can reasonably expect if small
high grading areas get to become a regular occurance again.
Which brings us to an update of the economic analysis we ran in IKN366 and we’re modifying
the show in four ways from the IKN366 first pass:
1) This first one is style rather than substance, you don’t get all the tables that were in
IKN366 this time. Today’s is a condensed version to save time and space (but the back
house dataset is still the same, nothing’s missing). No biggie, promise.
2) In IKN366 we used a range of possible average head grades to show the potential at
different levels, but we based our argument around an average of 3.0 g/t gold. That
now seems too optimistic, so I’m reducing the base case grade to 2.5 g/ gold. This is a
simple function of knowing more about the mineralization found at the zone and its
relatively small size to date. However, we recognize the likelihood that more small
areas are found and 2.5 g/t is probably sustainable over a longer period than just one
or two quarters.
3) Since IKN366, the gold price has changed. Back then we assumed a gold price of
3991 4991 5991 6991 7991 8991 9991 0002 1002 2002 3002 4002 5002 6002 7002 8002 9002 0102 1102 2102 3102 4102 5102
g/t Au
source: SAM.to data

,
CAD$1,650/oz for our economic anal ysis, this weekend gold sits at CAD$1,780. I’m
therefore using CAD$1,750/oz for the spreadsheet, one hundred dollars higher than
before. I think that’s reasonable and it helps offset the grade loss, or course.
4) In IKN366 I used a range of 4X, 6X and 8X PE ratios to offer different price target
potentials, depending on how bullish/bearish the market was about gold stocks. That’s
now changed as 4X seems way too low for an operating mine such as San Martin, no
matter how small it might be. Today we used 6X, 8X and 10X for the range.
So with those three in mind, here’s how 2.5 g/t gold (as well as other head grade levels for a
range of options) runs through our model to mine operating earnings (MOE) at San Martin:
SAM:to Production potential and Mine Operating earnings/qtr at different gold grades (CAD$)
cash Cash Total mine op
G/t Au Tpd Recovery Prod Au/qtr cost/tonne cost/qtr COGS/qtr Revenues/qtr earn
2.00 850 84% 4132 60 4.59 6.79 7.23 0.44
2.25 850 84% 4649 60 4.59 6.79 8.14 1.35
2.50 850 85% 5227 63 4.82 7.02 9.15 $2.13m
2.75 850 86% 5817 65 4.97 7.17 10.18 3.01
3.00 850 86% 6346 67 5.13 7.33 11.11 3.78
3.25 850 87% 6955 68 5.20 7.40 12.17 4.77
source: SAM data, IKN
calcs
Back in IKN366, with a higher head grade and a lower gold price, we had San Martin’s quarterly
MOE at $3.15m. That’s now a million lower at $2.13m, which is a lot of change for a small mine
but it’s still decent earnings potential for a company with less than 50m shares outstanding.
I’m now going to skip a couple of the tables we used in IKN366 and go straight to the bottom
line, our price target generation grid which adds the value assumptions for San Martin to the
other parts of SAM.to the company (and for details on those, IKN361 is the place).
SAM consolidated price target at various P/E ratios
G/t Au 6X P/E 8X P/E 10X P/E
2.00 n/a n/a n/a
2.25 0.78 0.84 0.91
2.50 0.93 $1.04 1.15
2.75 1.21 1.42 1.62
3.00 1.46 1.75 2.04
3.25 1.78 2.18 2.57
source: SAM data, IKN calcs
Back just eight weeks ago, I was even allowing for a low case 4X P/E ratio for this mine but
these days, even the best assumption 8X P/E may be underestimating the market’s appetite for
gold miners and stories. So there’s a 10X option for your consideration now (if you feel more
aggressive than I about this story) but overall, I’m going to stick with a happy medium 8X.
Therefore we can state that...
• Knowing more about the size of the high grade discovery at San Martin announced in
mid-May
• Assuming a 2.5 g/t average head grade for production going forward, rather than 3g.
• Taking into consideration the improvement in the gold price.
• Taking into consideration the new bullish atmosphere in the market for gold stocks
...and leaving other parts of SAM untouched, our new price target is CAD$1.04 for the stock, a
drop from the $1.26 target announced in IKN366.
13

,
Discussion and conclusion
To begin and to make a formal call, I’m reducing the 12 month price target on Starcore
International to $1.04, representing a 16.8% upside to this weekend’s share price
of 89c. It may seem disappointing to you at first to see the current price target for SAM drop
like that but it shouldn’t be and it’s now time to tell you why.
• First and most importantly, The IKN Weekly doesn’t mess around with the silly coded
messages or the subtle sentiment hints you normally get from the classic sell side
brokerage coverage. This is an independent publication, always has been and always
will be, what’s written here should be taken at face value so don’t bother searching for
the nuanced message because there isn’t one. If I consider a stock as a sell then I say
it out loud, period. SAM is not a sell today, period.
• The reduction of the share price target is a simple function of today’s market
circumstances, not yesterday’s and not tomorrow’s. Under the same criteria as IKN366
but with different number inputs SAM is now at a $1.04 target price, a reflection of new
information gathered that tempers the enthusiasm on one part but boosts the stock in
others.
• But the beauty of owning SAM today is less for its new and probably intermediate price
target. As stated in IKN361 on the day it was advanced to a Top Pick, “...if things start
going well for both company and the macro market, this one has clear-cut chances of
being one of your fabled multi-bagger
opportunities”. That’s as true now as it was
then and it will only take improvement in
the moly price (already showing a pulse), or
the Altiplano toll milling arm moving into
full production (signs are positive so far) or
good news from its largely ignored (by the
market at least) exploration assets for SAM
not just to go higher, but a LOT higher.
And take a good hard stare at the price chart of
SAM for 2016 to date, that’s some relentless
acumulation going on there. SAM is a triple from
February, it’s 89.4% up since I promoted it to ‘Top
Pick’ and the stock has responded in fine style to
the new bull market for gold and all who sail with
her. Seriously, that’s not a chart that anyone (bar top pickers who get lucky) should ever sell.
I’m reducing my current target to $1.04 today because I’m a realist, I like to keep my models
and expectations to the conservative side, I don’t try to BS either myself or anyone that reads
me. But be clear, I still consider SAM to be a Top Pick stock this weekend.
14

,
Stocks to Follow
We now have thirteen open positions on our ‘Stocks to Follow’ and just two of those registered
week-over-week losses (REG.v and TK.v, both base metals plays). One other remained
unchanged on the week (HBM short) which means we saw ten winners and that’s very good.
No point in listing them all of course, but we highlight the big percentage winners as is our
normal wont. The best weekly gain came from Miranda Gold (MAD.v up 72.2%), then the best
personal news came from B2Gold (BTO.to up 20.1%), then more good numbers from Riverside
Resources (RRI.v up 11.9%) and Starcore International (SAM.to up 11.3%).
With the addition of MAD.v to the list we now have 13 open positions, two fewer than our self-
imposed maximum of fifteen at any given time. Twelve of the thirteen are in the green, with
just long-term legacy baghold Focus Ventures there to remind us all that my picks suck when
they run out of luck.
company Ticker this week Avg Price Reco date Current PPS Gain/Loss% Notes
TOP PICKS
B2Gold BTO.to hold C$2.11 12-sep-14 C$3.89 84.4% Impressive recent strength
Regulus Res REG.v hold C$0.64 06-apr-15 C$1.25 95.3% Long-term exploreco top pick
Starcore Intl SAM.to STR buy C$0.59 10-jan-15 C$0.89 50.8% New $1.04 tgt, still top value
Long positions (in current order of preference)
Sandstorm Gold SAND STR buy U$3.80 17-apr-16 U$4.90 28.9% New tgt IKN374
Tinka Res TK.v buy C$0.195 19-apr-16 C$0.225 15.4% Top value Zn/Sn/Ag stock
Wesdome Gold WDO.to STR buy C$1.90 22-may-16 C$2.10 10.5% KGI M&A target
Riverside Res RRI.v buy C$0.38 27-jun-16 C$0.47 23.7% new pick, now 60c tgt
Continental Gold CNL.to buy C$2.68 22-may-16 C$3.88 44.8% permit in 2016, $4.80 tgt
Miranda Gold MAD.v buy C$0.125 03-jul-16 C$0.155 24.0% new pick, small play, flip
INV Metals INV.to hold C$0.25 03-apr-16 C$0.58 132.0% PFS news now late
Lara Expl. LRA.v hold C$1.15 08-apr-12 C$1.30 13.0% solid biz model
Focus Ventures FCV.v hold C$0.23 01-jul-12 C$0.095 -58.7% financing sept next hurdle
Short positions
HudBay Min. HBM short U$4.98 09-jun-16 U$4.88 2.0% re-short on Cu, port balancer
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
HudBay Min. HBM may-16 U$4.10 03-apr-16 U$4.36 -6.3% Short trade, poor timing
Nevada Sunrise NEV.v may-16 C$0.185 28-feb-16 C$0.23 24.3% V. small, no big deal either way
Richmont RIC jun-16 U$7.60 01-may-16 U$9.30 22.4% near-term trade, profit taken
2009, 2010, 2011, 2012, 2013, 2014 and 2015 closed positions in appendices below
Now for some notes on current basket stocks.
Miranda Gold (MAD.v): Position opened. MAD by name and MAD by nature. Just for the
record got a few at 12.5c, just enough to say I’ve opened a position in this, but I’m nowhere
near full and won’t be until the stock comes down in price. Hell’s bells people, we didn’t need to
15

,
do that! At one point on Wednesday MAD.v was 100% up on its weekend price as seen in the
NOBS report of last weekend. I know the market is bubbly and looking for new idea, but what
we saw here is frankly ridiculous.
So this may be the last tinystock idea you’re going to get from me. The IKN Weekly is not going
down the road of “buy this because I say so”. Wrong place, wrong publication, if you’re here for
that I strongly suggest you unsubscribe right now. I’d also strongly suggest that if you
managed to get size on some 12c or 13c shares that you sell them at 15c and 16c to take
profits, because they’re going to be cheaper soon.
Regulus Resources (REG.v): The news we were expecting arrived last week, as REG
announced it was raising $10m in a placement that was quickly adjusted upwards to $12m (7).
The terms of the deal are good for us already in, units priced at $1.20 (unit = 1 share + ½
warrant at $1.60 strike) and the placement was attractive to the point where the book filled
within hours. Here’s how the new approximate share count and structure will look once it’s all
done and closed:
Pro-Forma Share Structure, assuming full take-up of placement
Shares out: 67.89m
Options: 4.58m
Warrants: 11.31m
Fully diluted shares: 83.78m
Current share price: C$1.25
Market Cap: C$84.86m
Approx working cap per S/O: C$0.22
This placement, plus the recent run-up in the share price, means that the market cap has more
than doubled since we moved REG up to a Top Pick stock in IKN367 dated May 22nd.
Buried a little further down the original placement NR was news that the 2016 drill program at
Antakori is now expected to kick off in 4q16, rather than Q3. Fair enough. I also got my query
in as to when they’ll take me up and visit, that’s now tentatively scheduled for August (but as
it’s as much a question of Coimolache as REG these days, I’m not pushing them too hard for a
solid date yet).
Riverside Resources (RRI.v): It’s really strange how these things go. RRI, a quality prospect
generator (unlike MAD, I underscore we’re in that one for very different reasons) trundled along
for so many weeks at or around 30c, when suddenly someone points a finger at it and the
world goes, “Oh yeah! That one as well!”. Here we are two weeks later and RRI is happily
trading 50% above its previous level, as if it’s understood that it’s worth at least that much.
16

,
The fact that it was me who pointed the
finger is secondary, because I’m under no
illusions whatsoever that if I hadn’t done it
in IKN372, somebody else would have and
the result would have been the same.
Anyway, RRI is in good shape and the
way in which direct peer compny Lara
Exploration (LRA.v) has been running
recently gives good reason to suppose
that there’s more upside to come. I’m
pencilling in 60c as a place to target,
could be a lot more though.
Wesdome Gold Mines (WDO.to): An interesting filing came in for WDO post-close Friday
and it’s one that, ostensibly at least, puts a dent in my intel that WDO is going to be taken over
by KGI. Tom Stanley’s Resolute Funds has been selling WDO shares and here’s a segment from
the SEDAR filing:
Since the last report filed by Resolute on May 4, 2016, the holdings held by the Fund
have decreased by 5,940,000 shares, representing a decrease of 4.7% of the Fund’s
proportionate share of the issued and outstanding common shares of Wesdome.
As a result of the dispositions reported above, together with shares acquired
previously, the Fund held 27,060,000 common shares of Wesdome at the end of June
representing approximately 20.84% of all outstanding shares of that class.
At the time of the fractious AGM, Resolute owned 33.35m shares. That went down to 27.06m
by the end of the month, just two weeks later. At face value at least it’s not a piece of news
that supports the intel about WDO being on the block. However
1) We don’t know who Resolute sold to and why (even though it was open market) and it
may be connected with Resolute’s large holding in KGI.
2) Resolute still has over 20% of shares out and is therefore a control person in the
company. That means the activist element in Resolute’s position is still active.
3) Resolute may have decided to deploy its funds in other places and made a simple
portfolio management decision. See the note on IMOPACT Silver (IPT.v) below in
‘Market Watching’ for more.
Overall I’m not too worried about this development, but it will be interesting to see how WDO
trades tomorrow Monday, the first time the shares has the chance to adjust to this filing news.
HudBay Minerals (HBM) (HBM.to): As noted on the blog last week (8) HBM saw its May
2016 production at
HBM: Constancia monthly copper production
Constancia lower than
16000
expected by our model in 14050 13733 14377
our short thesis anal ysis. 14000 13124 12856
12000 11146
In that short call, I’d 9979 10476 10679 10604 9852
10000 8965
pencilled in conservative
7849 7843
(in this case 8000
“conservative” meaning a 6000
high end number because
4000
I’m running a short trade) 2488
92m lbs of production 2000 683 714
from Constancia in 2q16. 0
That now looks high (and
that’s good for me)
17
51.naJ bef ram rpa yam nuj luj gua pes tco von ced 61.naJ 61.beF 61.raM 61.rpA 61.yaM
mt Cu
source: MINEM Peru

,
because if June 2016 comes in similar to May, Constancia’s produciton is pegged down at 75m
lbs approx. So maybe 80m lbs? Even so, that’s a good number as far as I’m concerned and
whatever happens, it looks as though the April production spike was a one off.
B2Gold (BTO.to) (BTG): I’m long overdue a close look at BTO and that’s going to happen as
soon as we get 2q16 production
numbers from this stock. In the
meantime hold on tight and enjoy the
ride as BTO makes up for lost time and
then some, it’s just about the best
performing stock in the whole of the gold
space right now (at least biased old me
thinks so).
But in the meantime some weekly
comment and BTO was already having a
good week when Friday just before
midday, a regulatory filing hit SEDAR.
The bigboy insto BlackRock (BLK)
announced that it had recently increased
its participation in BTO. In the words of
the filing, “As at June 30, 2016, BLK exercised control or direction over 100,952,728 common
shares representing approximately 10.86% of the 929,307,324 issued and outstanding common
shares of the reporting issuer.” The result of that news can be seen in the above chart and to
labour the point, here’s the Friday one minute chart which shows its effect more clearly
The news accelerated the buying in BTO and turned a very good 10% (or so) weekly win into
the excellent 20% upmove come the close (with a lot of the buying action concentrated at the
close).
Lara Exploration (LRA.v): On Tuesday 5th July LRA announced (9) it was raising $2m in a
1.6m unit placement priced at CAD$1.25 (unit = 1 share + ½ warrant with $1.85 strike).
Notably, company top dog Miles Thompson, who bought a lot of cheap shares in 2015 to get
his own total LRA holding above 10%, is taking 10% of this placement himself in order to keep
his participation percentage intact (and of course, send a strong positive message to the
market). LRA doesn’t raise at market very often and over the years has kept its share count
low. Assuming the current placement closes correctly, the shares out count moves to 33.1m
shares. I’m sure LRA could raise more cash at the moment if it wanted to, but prefers to keep
the count tight. I like that. In trading, the recent strong bull momentum continued. I’m going to
stick to the plan of just holding, watching and seeing how far these Agora jokers can push this
stock before the price move stalls.
18

,
Continental Gold (CNL.to): CNL has been trading very powerfully recently and on
Wednesday got as high as $4.32 before profit-takers moved in. It’s the type of classic bull
market pattern that I’d got used to not seeing for a couple of years, but cast one’s mind back
further and it’s the ebb and flow of a popular stock at work, no more no less. So trade the
channel on this one if you’re smarter/luckier than me, I’ll just stick to the plan and get my
$4.80 pinged eventually.
INV Metals (INV.to): Still no news on the updated PFS that was due from INV during 2q16.
I’m not antsy enough about this to consider selling before the news, but the radio silence from
the company isn’t the best of situations. Trading in the stock last week was positive but light,
everyone seems to be waiting for the same thing.
Starcore Intl (SAM.to): Plenty of fundies on SAM in the previous section, here we note the
strong share price action of the stock last week, with volume averaging the 100k level (healthy
for this issue) and the way in which it pinged a new 52 week high of 91c on Wednesday, the
day of the NR, before settling for the week at a very respectable 89c.
The Copper Basket
After twenty-seven weeks of 2016, The Copper Basket shows a 85.39% gain to level stakes.
company ticker price 1/1/16 Shares out Market Cap current pps gain/loss%
1 HudBay Min. HBM.to 5.31 235.23 1500.77 6.38 20.2%
2 Ivanhoe Mines IVN.to 0.61 778.96 841.28 1.08 77.0%
3 Reservoir Min. RMC.v 4.08 48.69 449.41 9.23 126.2%
4 Capstone Min. CS.to 0.44 382.04 332.37 0.87 97.7%
5 NGEx Resources NGQ.to 0.65 205.06 215.31 1.05 61.5%
6 Western Copper WRN.to 0.38 94.19 114.91 1.22 221.1%
7 NovaCopper NCQ.to 0.395 104.33 81.38 0.78 97.5%
8 Cordoba Min. CDB.v 0.16 86.86 72.96 0.84 425.0%
9 Copper Mtn CUM.to 0.445 118.8 66.53 0.56 25.8%
10 Copper Fox CUU.v 0.125 417.64 58.47 0.14 12.0%
11 Nevada Copper NCU.to 0.66 80.5 57.96 0.72 9.1%
12 Atico Mining ATY.v 0.28 97.59 45.87 0.47 67.9%
13 Hot Chili Ltd HCH.ax 0.09 445.723 32.09 0.072 -20.0%
14 Amerigo Res ARG.to 0.205 173.61 27.78 0.16 -22.0%
15 Revelo Res. RVL.v 0.055 99.19 9.92 0.10 81.8%
NB: HCH.ax priced in AUD$, rest CAD$ Portfolio avg 85.39%
Another great week for this selection of
copper stocks, with +14% last week and
The Copper Basket 2016, weekly evolution
+13% this there’s been strong value added to 100%
the junior coppers in a short space in time, in 80%
percentage terms at least. Just two stocks of
60%
our 15 were weekly losers (ATY.v, CDB.v) and
40%
another two were unchanged, which means
eleven winners and the biggest percentage 20%
moves were found in Hot Chili (HCH.ax up 0%
28.6%), Revelo (RVL.v up 25.0%),
-20%
NovaCopper (NCQ.to up 20.0%), NGEx
(NGQ.to yp 16.7%), Copper Fox (CUU.v up
16.7%), NovaCopper (NCQ.to up 16.2%). In
other words the market’s buying up the dogs, but it’s tended to be on low volume trades (see
below). Woof woof.
19
dr3naj ht01 ht71 ht42 ts13 t7bef ht41 ts12 ht82 ht6 ht31 ht02 ht72 r3rpa ht01 ht71 ht42 1yam ht8 ht51 dn22 ht92 ht5nuj ht21 ht91 ht62 dr3luj ht01
source: IKN calcs

,
The copper metals market didn’t give any backbone to
the speculative moves in the small copper plays. The
hourly chart shown here shows the trend, this time last
weekend was the top of the move and copper never
looked like threatening U$2.30/lb again (I feared it
might). Even the decent jobs number of Friday couldn’t
reverse the trend and the fundies news out of China
(see inventories matters below) outweighed any bull
desires to consider copper an asset class again. It’s not,
it never will be, get used to the idea.
A decent little 20 page report came out of Chile’s
Cochilco last week (10), in which the bureau reaffirmed
its forecast for a U$2.15/lb average copper price for this
year (it’s getting easier to predict, but at least this time
they haven’t changed it from a quarter ago). The
presentation also had this chart (below right) among
many, which I like because it’s graphic on the way
China rules the whole copper show. These percentages
combine SHFE inventories and the LME Asia warehouse numbers,
a nice way to split things. Now for the weekly copper warehouse
inventory bullets, data as usual from Cochilco (11):
• After the previous week’s “small but significant” move up,
last week total world copper stocks in the three official
warehouse systems confirmed the tide change and
moved up a large 34,337 metric tonnes (mt) (+8.4%) to
442,005mt. Bulls beware!
• Shanghai SHFE inventories saw another small move up,
the same as two weeks ago. Stocks closed Friday 481mt
(+0.3%) higher on the week and 162,130mt.
• The news is at the LME, where stocks showed for the
first time that the rumours and hearsay about large
quantities of unsold copper inventory leaving China were
based on fact. LME stocks rose a whopping 34,100mt
(+18.0%) to finish the week at 223,225mt. This is a very
bearish signal for the copper market, be in no doubt.
• Comex stocks did nothing and rose exactly one metric tonnes to finish Friday at
56,650mt.
Below is the Shanghai-only chart, the bottoming out process consolidating. That’s not good
news for anyone left bullish out there, either. Staying with the China theme, all eyes next week
will be on the Chinese macro data due out overnight Americas time Thursday/Friday, with
forecast GDP growth at 6.6% median (12) and your rank and file anal ysts telling us that 6.5%
or under wouldn’t go down well with anyone. The way in which copper moved into the Chinese
mainland has moved back out again leaves me worried (well, not really really worried because
I’m betting short on HBM, but more worried for the long-term growth prospects and so forth),
the market seems to be whistling past a rather large graveyard at the moment. I’m happy to
stick with the monetary metal of gold for my speculations at the moment, too many mixed
signals out of Dr. Copper to have any confidence.
20

,
Shanghai Futures Exchange Warehouse Stocks, 2014-2016
400000
350000
300000
250000
200000
150000
100000
50000
21
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 ht8 ht92 ht91 ht01
Mt Cu
source: Cochilco
Ivanhoe (IVN.to): Arguably back after a period of consolidation, IVN moved up last week and
did well on volume too. We had more news from the stock (13) which isn’t surprising as its
range of top level projects plus the amount of cash it’s throwing at exploration and
development mean that IVN is always going to have something to report to the market. This
time it was met testing results from the copper mineralization at Kalula and of course it was
good and positive news, it’s always good and positive in Friedlandia.
NGEx Resources (NGQ.to): It’s close to the top of my list for copper play possibles and I’d
buy this if 1) I weren’t so leery about Argentina and 2) I weren’t so leery about the copper
price. The percentage upmove was strong but
there’s a notable lack of volume running through
NGQ at the moment, just one day in the last ten
has seen a 100k+ share trading day and as such,
I don’t think we should be fooled by its move
above the Loonie mark this week. Waiting it out.
NovaCopper (NCQ.to): This is another copper
name making big moves on small volumes
(there’s a lot of it about) and projecting optimism
when, just by scratching the surface, speculation
and nerves are the real drivers. It’s about the
copper price of course, as such I find it easy to
stay away from these type of shares at the
moment. The low-hanging fruit is in the gold arena, not the copper.
The Low Cost Producer Basket
After 27 weeks of 2016, the Producer Basket shows a gain of 139.28% 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 26.00 22.32 202.4%
2 Newmont NEM 17.98 529.12 21.77 41.14 128.8%
3 Goldcorp GG 11.56 830.22 16.55 19.93 72.4%
4 Franco Nevada FNV 45.75 176.298 13.98 79.28 73.3%
5 Agnico Eagle AEM 26.28 217.67 12.15 55.84 112.5%
6 Ang/Ashanti AU 7.10 405.27 8.45 20.84 193.5%
7 Detour Gold DGC.to 14.41 170.85 5.89 34.46 124.3%
8 Sibanye Gold SBGL 6.09 228.71 3.60 15.74 158.5%
9 Buenaventura BVN 4.28 254.19 3.29 12.96 202.8%
10 New Gold NGD 2.32 509.89 2.48 4.86 109.5%
Prices in U$/NYSE tickers, except DGC.to (CAD$) Portfolio avg 139.28%

,
Even though all ten of our basket stocks filed gains for the week, things were nowhere as
bullish in some stocks than others and to illustrate the split clearly, here’s a little chart:
Week-Over-Week gain in our ten basket components
11% 10.2%
10% 9.5%
9%
8%
7% 6.6%
6%
4.7%
5%
4%
3% 2.0% 2.3%
2% 1.3%
1% 0.4% 0.5% 0.7%
0%
AEM ABX FNV GG NEM NGD BVN DGC AU SBGL
source: NYSE/TSX
22
ssol
ylkeew
%
The “big names”, i.e. Tier One producers plus market-leading names such as Agnico and Franco
Nevada, could only score modest gains on a week in which gold jumped by 1.6% (GLD as
proxy). We could make a case for Newmont (NEM) performing equally to New Gold (NGD), or
the outsized win un AngloGold Ashanti (AU), but the fact remains that the smallest five wins
were all in stocks with over U$10Bn in market cap, the biggest wins were the other five, all
under U$10Bn market cap this weekend.
In other words, we watched as money rotated out of the gateway names and into second level
mining stocks. This is the second time in this bulish cycle that we’ve seen this happen, as we
spotted the same phenomenon in April and then sat back and watched the smaller names
power ahead. The signal from last week is that it’s about to happen again and that’s really the
essence as to why I bother with this Low Cost section. Expect volume increases into Tier Twos
and midcaps to continue next week (see the way B2Gold traded above for more details).
The Low Cost Producer Basket: Weekly performance
160% and comparative to GDX control
140%
120%
100%
80%
60%
40%
20%
0%
-20%
Newmont (NEM): It’s important to know what complete bullshit from a mining CEO sounds
like, even more so when the person in question is the head of a Tier One. When your author
heard that the CEO of NEM stated last week (off record unfortunately, and though it happened
I can’t find a trade paper report on it to save my life) that NEM didn’t need to think about
replacing reserve ounces, I couldn’t help but laugh. I then ran off to the NEM website and put
the chart together that you see below.
As for the IKN 2016 estimate for reserves in that chart, we start by assuming the NEM guidence
of +4m ounces at a U$1,300/oz gold price. Then we subtract two items as of the 2015 number
of 73.7m in reserve ounces, 3.3m belong to the recently sold Batu Hijau mine in Indonesia.
Then there’s the small matter of the 5m ounces of organic depletion set for this year. We finish
by rounding to 69m ounce at the end of 2016 if nothing changes from here.
dr3naj ht01 ht71 ht42 ts13 t7bef ht41 ts12 ht82 ht6 ht31 ht02 ht72 r3rpa ht01 ht71 ht42 1yam ht8 ht51 dn22 ht92 ht5nuj ht21 ht91 ht62 dr3luj ht01
Low Cost Basket: Percentage difference between
basket and GDX control, 2016
5%
basket 0%
gdx control -5%
-10%
-15%
-20%
-25%
source: Google, IKN calcs
ht01 ht71 ht42 ts13 ht7bef ht41 ts12 ht82 ht6 ht31 ht02 ht72 dr3rpa ht01 ht71 ht42 ts1yam ht8 ht51 dn22 ht92 ht5nuj ht21 ht91 ht62 dr3luj ht01
source: ikn calcs, NYSE/Nasdaq data

,
NEM: Year-end gold reserve count
M oz Au
98.8 99.2
100 91.8 93.5 88.4
90 85.0 82.2
80 73.7
69.0
70
60
50
40
30
20
10
0
2008 2009 2010 2011 2012 2013 2014 2015 2016e
source: NEM filings
For the record, NEM also claims 53.1m ounces of “non-reserve gold ounces”, but as 15.33m of
those are inferred and another 7.49m oz are contained in the Conga deposit that’s never going
to be mined in a hundred years, it’s more like 30m. This could be the reason why we’re seeing
the big miners stall at current valuation levels while the mid-tiers play catch up. This could be
why BlackRock is busier buying companies like B2Gold, with the right size and shape for a
buyout offer.
Regional politics
Colombia: The peace process has hair
Ay me! for aught that I could ever read,
Could ever hear by tale or history,
The course of true love never did run smooth;
But either it was different in blood
A Midsummer Night's Dream, Act 1,
Sc1, ll 132–136, William Shakespeare
The news from Colombia (and Cuba, where the negotiations are taking place) of the agreed
permanent cease fire between Colombia’s government and the FARC-EP mentioned in the last
couple of editions is undoubtedly good, but there’s not going to be an easy, cut and dried finish
to this decades’ old conflict. An example of that hit the wires on Wednesday 6th (14) when news
of the first “dissident brigade” of the FARC was announced. The so-called “First Front” or
Armando Rios” section of the FARC had already told its negotiating colleagues that they would
not down arms some 15 days previously, but the news was made official when the FARC
leadership branded the First Front as dissidents for their decision not to lay down arms and
move to the de-mobilization phase now required by the peace agreement. That was quickly
followed by unconfirmed reports that another FARC batallion, the Seventh Front, was ignoring
the stand-down order. This weekend, another four FARC batallions are also suspected as
dissenters to the peace agreement and cease-fire (15).
The First Front/Armando Rios FARC section historically controls the South-Eastern tropical
regions of Colombia that board Brazil and Venezuela. Although a long way from most of the
formal mining and projects being moved forward by most public traded junior mining
companies, the region is known to be geologically richly endowed and a location for a lot of
illegal mining activity. Along with the Seventh Front, the First is traditionally connected with
narcotrafficking.
Brazil tailings dams
The Samarco tailings dam failure may not have held attention or caused the outrage it should
have done on a worldwide level (more is the pity, but it’s what we jaded cynics must expect in
a money vs environment story) but its repercussions are going to be felt by the Brazilian mining
industry for a long time in the future. The latest angle was picked up and reported by Bloomie
in English (16) so this time I don’t need to translate. Here’s an excerpt, more on the link:
23

,
Spurred by Brazil’s worst-ever environmental disaster, the proposal would toughen
supervision and maintenance at existing waste storage facilities in Minas Gerais state
and prohibit construction of the cheapest type of tailings dams. The draft bill cleared
one commission on Thursday on its way to the state assembly, according to the office
of state legislator Agostinho Patrus.
The current version would ban so-called upstream tailings dams, the method used
at the Vale-BHP Billiton Ltd. joint venture Samarco, where a collapse in November
killed 19 people and contaminated waterways in both Minas Gerais and Espirito Santo
state.
“We have to balance economic activity with social risk,” said Patrus, one of the bill’s
sponsors. He expects the ban on new upstream dams to survive alterations the
proposal might incur on its way to a final vote. “We can’t be thinking about using a
method that is 5 to 10 percent cheaper for the company, yet puts countless
communities at risk.”
So far at least we’re in the State of Minas Gerais and the target is just one type of tailings
construction, the cheapest “upstream” type (reportedly 20% to 30% cheaper to construct in
Minas Gerais for iron ore mines). But it’s fair to assume that this would be the first of many
regions inside Brazil to tighten up on its tailings construction rules and there are also law
projects doing the rounds that would “prohibit dams from being built within 10 kilometers (6.2
miles) of populations or key waterways”.
This may well be the reason that Belo Sun (BSX.to) saw its grand environmental permit signing
ceremony suddenly disappear without trace during 2q16, a event that didn’t happen and
something BSX don’t want anyone to talk about any longer. As one of your author’s trusted
industry friends put it in a mail last week, it’s not a “...stretch to connect the dots between the
proposed ban on new upstream tailings dams in Minas Gerais and BSX’s permit delay. That the
latter’s project is in Para State...is one thing, however it would seem unlikely that any sort of
mid-level bureaucrat would recommend issuing a permit for the very thing that a proposed law
looks to ban.”
Agreed. Added to the strong local opposition to the Volta Grande project, it calls into serious
doubt whether BSX is going to see its permits this year. I also get to wonder about any
advantageous timing of the BSX bought deal announced last week (17), in which Belo Sun is
raising $75m by selling 77.32m 97c shares (with a 15% overallotment facility on board and
Agnico already committed to their portion). That’s not a bought deal I’d be interested in and
that’s putting it mildly.
Argentina: Gas price rises deemed illegal
We’ve already seen court decisions go against the Macri government’s decision to raise prices
for household services in several provinces of Argentina, but last week the federal law chamber
of the city of La Plata in Buenos Aires province handed down a ruling that declared the gas
price rises (which vary from place to place but have averaged at around a 400% price rise) to
be “null and void”, that they were unconstitutional and that they were an attack on the private
property of Argentines (18).
Along with other rulings against the same type of steep price rises in water, electricity and
other matters such as house ownership taxes, they represent a blow to the government’s plans
to move away from generalized subsidies and towards a free market economy.
In other inflation news (19) Buenos Aires province saw road blocks in front of ten supermarkets
last week (an organized effort, of course) in which local communal meals organizations asked
for free food due to their precarious financial position as well as the people who rely on them
for a daily hot meal. This is symptomatic of the Macri government’s policy to bring inflation
down, as salaries are crimped under the rate of inflation, a policy that in theory at least would
put a top on price rises but hits people hard in the pocket in its first stages. The government’s
ability to rein in inflation is the key economic policy and they have to get it right in the next six
months, else lose control of the country.
24

,
Ecuador: Rafael Correa threatens to run for President
In the latest installment of “A Week Is A Long Time In Politics”, let’s check on part of the
Ecuador section of the ‘Regional Risk Review’, last Sunday July 3rd:
Internal National Political Stability loses a point because we’re now starting to feel the
shadow of the upcoming February 2017 Presidential election in which current President
Rafael Correa isn’t running (he’d have completed ten years in charge come the day of
the handover). Ecuador is in for a rough campaign, with the opposition parties
smelling their first chance of getting back into power now that the successful and
popular (despite all you’ve heard) Correa is stepping aside. Meanwhile, the Correa
government will be looking to continue its mandate under a new leader, probably
current VP Glas.
And as luck would have it, President Rafael Correa on July 4th announced to his country during
a TV interview that he might run again! In fact he mentioned the possibility not once but twice
last week, doubling up during another Q&A on Friday July 8th and stating that it still wasn’t his
intention to run again, but in his opinion if the opposition to his government didn’t stop braying
and moaning in their normal way he’d run again just to shut them up and he’d win (and on that
last subject I have little doubt, the popular Correa would trounce the opposition while any
eventual successor would have a harder time in the election February) (20).
In other news, the grassroots political organization “Rafael Contigo Siempre” (Rafael With You
Always) has spent the last three weeks collecting signatures for a petition to get Rafael Correa
on the ballot (there is apparently a constitutional loophole that would allow Correa to be re-
elected under the circumstances of popular clamor). On Friday according to organizers they
have already collected 210,487 signatures of the 934,585 they’d need in order to present the
demand to the Constitutional Court that would allow Correa to run. According to the reported
rules (21) they need to get the petition complete by September 2nd.
Whether a re-re-re-running of Correa for President is good or bad for political stability in
Ecuador is up for debate. I personally would guess that it wouldn’t be so bad for the near and
medium-term future of Ecuador, but a) in the long-run the (benign) quasi-dictator level of
control Correa has in the country brings decadence and b) the USA, via its active CIA arm in
Ecuador, wouldn’t like any eventual Correa decision to run one little bit and would kick up a lot
of fuss on the world stage, thereby increasing the perception of political risk in the country. This
potential wrinkle in the political scene in Ecuador is worth putting in the mix if you’re
considering an investment opportunity in the country.
Colombia: Segovia and Gran Colombia Gold (GCM.to)
One of those piece that could be in Regional Politics or could be in ‘Market Watching, we’ll put it
here today. On Monday shares
in the scammy Serafino
Iacono/Frank Giustra
controlled Gran Colombia Gold
(GCM.to) rose sharply, despite
the obvious problems it has
with its creditors (but let’s not
confuse people with balance
sheets and debt re-structuring
agreements that effectively
mean the company doesn’t get
any profit from its own
mining), because news from
the town of Segovia in
Colombia (22), home to its
main operations, was that the
town Mayor had signed a
controversial closure order
25

,
against local informal miners who are working what GCM.to says is its legally owned mining
concessions (something the local miners bitterly dispute). According to GCM people (though
only at a local level, they are notably silent in Canada) they demanded the closure order
because of the breakdown of negotiations between the company and employees of the ‘Cogote’
mine, the largest informal mining cooperative in Segovia. However representatives of the
Cogote mining co-op say that GCM simple refused to budge on any point during the negotiation
and waited for the formal negotiation period to lapse on June 12th, then went to the regional
government of Segovia to get its closure order signed without any regard to the needs of locals.
As the price chart here shows, shares were popular through Monday and Tuesday but then
things went into reverse as it emerged that the local informal miners were staging a protest in
the town centre, had stopped the Mayor from carrying out the closure order and were
threatening to organize a full scale strike in the town in order to stop their mines from being
closed off. They say that some 2,000 workers and their families would be put out of a job by
such a move and that the GCM position was not legal (23).
Aside from the share price action in GCM (a stock you should avoid at all costs) this situation
has the potential to become a social flashpoint in Colombia.
Market Watching
Dalradian Resources (DNA.to): Sprott selling
There were several interesting SEDAR filings on Friday and we’ve already mentioned a couple of
them above. Here we note that according to its July 8th filing (24) Sprott as at June 30th has
disposed of 4,423,240 shares and
518,478 warrants of DNA. This moves
the total Sprott holding in DNA to
15,587,171 shares and 5,763,750
warrants, which is 9.6% of fully diluted
shares. That’s 2.3% less than its last
filing and the reason for the threshold
trigger filings. We hear it’s the Toronto
end of Sprott that’s doing the selling
and we hear it’s because they don’t
trust the mining widths in the plan.
Although I closed my personal position
in DNA.to a while back for a pleasant
sized win, these pages called Sell on
DNA.to in IKN372, the weekend after
Brexit, due to the heightened political risk of operating in Northern Ireland. As this chart shows,
since then the stock has basically flatlined (and held stubbornly to the CAD$1 level), which is a
clear underperformance compared to the market for PM stocks.
Two 43-101 technical reports filed on Friday evening
The quickest of mentions here that the both AQM Copper (AQM.v) and Largo Resouces
(LGO.to) filed 43-101 technical reports late Friday night. There’s probably a good reason why
they filed at that time.
To add a little, I’d like to like AQM’s 30% owned Zafranal copper project more than I do but the
fact is that it’s low grade, copper would have to be a lot higher in price for it to work
economically and even in the best of situations, it’s way behind in the queue for the next
copper mine to be built. On top of that, the project is reasonably close to the controversial Tia
Maria project in the Arequipa region of Peru and has already picked up its own share of the
anti-mine feeling that’s arisen in the area due to the Tia Maria fight. The bottom line is that
when it comes to copper explorecos in Peru, Regulus (REG.v) beats this one hands down.
26

,
As for Largo Resources, as a mining operation it’s mediocre at very best but as a share play it’s
plain horrible. Avoid like the plague, even mentioning its name on these pages makes me feel
the need for a hot shower.
IMPACT Silver (IPT.v) has a new large shareholder
Along with many other silver names, IMPACT
Silver (IPT.v) has been on one hell of a tear
so far in 2016, as this year-to-date chart
clearly shows (and yes, every step of the
way without a penny of my own money, it’s
that thing about choosing one’s own battles
again). Therefore I found it interesting to
learn in the post-close filing on Friday (25)
that IPT has a new big shareholder. The
Resolute Fund of Tom Stanley (yes, the very
same one involved in the Wesdome story).
Here are the paydirt lines from the filing:
Since the last report filed by Resolute on
June 2, 2016, the holdings held by the
Fund have increased by 2,060,000 common shares and 800,000 warrants,
representing 2.24% of the issued common shares of IMPACT and assuming the
exercise of the warrants held by the Fund.
As a result of the private placement reported above, together with other shares
acquired during the month of June, the Fund held 14,130,000 common shares and
3,000,000 common share purchase warrants of IMPACT at the end of June
representing approximately 19.34% of all outstanding shares of that class, assuming
the exercise of the warrants held by the Fund.
So Resolute now owns 19.34% of IMPACT Silver and let’s consider how this position has been
built so far in 2016:
• Before the latest AGM was called at the end of April, Resolute owned 7.67m shares and
no warrants of IPT. That was just under the 10% disclosure barrier (exactly 10% at the
time was 7.679m) and shows Resolute was under the radar, tracking IPT.
• At the end of May Resolute began to show its hand by announcing it held 12.07m
shares and 2.2m warrants, with the new position taken vai the purchase of 4.4m units
of IPT’s placement during the period. At the time this was 17.1% of the F/D count.
• On Friday, it announced it had added to its position by buying 1.6m shares and 0.8m
warrants in the latest brokered private placement, as well as buying an extra 460,000
shares on the open market.
At 19.34% of shares F/D Resolute is now at the limit of its minority position and if it moves
above 20% it takes a control position of the company, which as Wesdome shows isn’t against
its philosophy but we’d normally expect a insto to sit back at this point. The way in which
Resolute has taken most of its second 10% via placements implies the tacit agreement of IPT
with the arrival of its new big holder and the 460k top-up at the end just nudges Resolute to its
maximum position without going over. On the other hand, we know from the WDO case that
Tom Stanley is an activist shareholder and it’s also interesting to note the background of IPT, a
company that’s an offshoot of the Energold drilling company, has plenty of management in
common with Energold and is still near-10% owned by Energold. We should also note how
Energold has traditionally benefitted from IPT as the drilling company of choice at its properties
(and let’s leave that particular sidebar subject there for the time being).
Marin Katusa’s upcoming pump
I’ve been asked by several people for an opinion on which gold mining stock names are about
to be pumped by Marin Katusa, with the whole promo show ready to be rolled out on July 18th.
Three things to say:
27

,
• Katusa is very good at making money for Katusa. Utterly untrustworthy and liable to
front-run his own clients at a moment’s notice with an example the way he was one of
the very few people to have made money on the PRD Energy debacle, as he
encouraged people to buy while he and his close friends at Casey Research were
selling. His trade is legalized theft, period.
• I doubt his pump will have the same amount of heft as the Porter Stansberry promotion
earlier in the year. For one reason Katusa is more lightweight, for another the amount
of cols hard cash needed to move stocks now is greater.
• I don’t have much of a clue on which exact stocks will be his picks, but I’d bet dollars to
doughnuts that one of them is Midas Gold (MAX.to). For a second idea that’s lass sure,
another that’s possibly being set up for the pump is Gold Mountain (GUM.v) as it was a
Marin Katusa controlled company that bought the large 20m share block from Almadex
Minerals (AMZ.v) last week for $2m cash (26). We also note that Gold Mountain is from
the same stable as Copper Mountain (CUM.to), a company at which Marin Katusa was a
director and large shareholder for a few years (until dumping all his stock before it
crashed).
That’s all I have, don’t bother mailing me on this subject any more because I don’t care. And I
do not own nor will I own a single share of MAX.to, before during or after the Katusa dog and
pony show. I have no inkling to delve deeper into the scum-infested world of that particular
sociopath and have better things to do with my time.
Asanko Gold (AKG) redux
We noted a few extra things about the fight between Asanko Gold (AKG) and its short attacker,
K2 Associates, in IKN373 last weekend. Since that time AKG stock has done well and in the last
five days has clawed back the previous losses. Or to be more accurate:
• The evening before the K2 short report was published, AKG closed at U$4.17.
• It hit a low of U$3.58 two days later on Thursday June 30th.
• This weekend the stock stands at U$4.24.
• Therefore AKG is up by 7c, or 1.7%. For context the GDX index is up 12.9% in the
same period.
Summing up, although still lagging the benchmarks during this strongly bullish period for gold
stocks AKG shares did very well under the
circumstances last week. A point scored
for the bullish side to this fight and the
performance with undoubtedly helped
when news reached the market that AKG
bigwigs Peter Breese and Colin Steyn had
both bought an extra 100,000 shares of
their company, just the type of strong
‘step up to the plate’ signal the market
likes from their management teams. But
Friday lunchtime brought a new twist to
the tale, when AKG announced (27) it
would release its 2q16 production figures
on July 20th and also hold a Conference
Call that day which will be accompanied
by a presentation file available on the day from its website.
This struck me as an unusual thing, as it’s common for companies to have a CC on their
quarterly financial results, but rare indeed for the preliminary production numbers. Therefore a
discreet inquiry was made and I heard that AKG had received a chewing out from the OSC just
28

,
days before, the reason being the news about the way the company had offered two “selective
conference calls” to anal ysts and instos on good with the company in order to address their
concerns about the K2 Associates short report and attack, the ones we noted in last week’s
edition of the Weekly and also on the blog. It appears that during the friendly chart between
the OSC and AKG, the deal was reached to hold an open ConfCall in order to get all information
on a fully disclosed standing across the market, the way things should be.
I can only assume K2 Associates are licking their lips at the opportunity to grill the AKG
management in public on the Conference Call and even though I’m not going to change my
neutral stance on AKG (not long, not short, not changing) this is one CC that I won’t miss.
Orla Mining (OLA.v-H): Something is brewing
Up until recently Orla Mining (OLA.v-H) was a ten cent shell stock sitting on the NEX end of the
TSXV and doing nothing. That’s now changed, as this 2016 price chart shows.
So far in price moves we’ve seen:
• Spotty purchases between mid-February and end May around the 15c level
• New activity in June that got it to 20c
• Then a sudden rush up to the approx 50c level on new levels of volume
At face value that’s quite impressive for what’s nothing more than a shell at this time, but once
we check out a few of the details of the company it becomes more obvious why this shell is
creating noise. To do so, let’s zero in on the company’s latest NR dated July 8th in which it
announced the closure of a $7m round of financing (28). This was the funding round of a soon-
to-be unleashed new junior on the block. Its backers have already got in on various rounds of
early financing at cheap prices (6c, 8c, 10c) from mid-2015 up to February 2016, but it’s when
you see the names of the main players that things start to get interesting. After this latest 50c
financing round in which they all participated, Marc Prefontaine, Hans Smit, Troy Fierro, Richard
Hall, John Graham and Pierre Lassonde between them own a total 66.3% of Orla’s fully diluted
share count and if you don’t recognize those names as the top table A-Team of the Canada
mining scene, then I suggest you change your sector of interest immediately. Just seeing one
or two of those names connected to a start-up junior would be enough for my blood, all five
and the bells should be ringing already.
As for what it owns and plans to do, its flagship property at this point is the Blue Quartz project
which is described in these terms in its most recent MD&A:
The Blue Quartz Property is located approximately 12 kilometres north-
northeast of Matheson, 73 kilometres east-northeast of Timmins and 56
kilometres northwest of Kirkland Lake, all located in the Province of Ontario.
It then goes on to describe Blue Quartz in more detail, including the results of limited drilling
29

,
programs back in 2010 and 2011 which returned hits such as 2.0m of 13.95 g/t gold at a depth
of 340m. It finishes the description with “To date the mineralized zone is open to depth and
down plunge with indications that the hydrothermal alteration system is increasing in intensity
along with both the grade and width of the mineralization”, which is probably going to be
connected with the promo on this stock if Blue Quartz turns out to be the main thrust of OLA
this year. However, OLA may have other plans and a new project to fold into the company, I
have no special information to offer you on that.
All in all, just the calibre of the mining men on board this play makes it very interesting and
with the $7m placement now signalling that the company is about to come alive, this is your
heads up on a potential exploreco trade for the second half of 2016. At present I do not own
any shares and I don’t plan to change that in the near future. If I decide to buy I’ll tell you first.
Conclusion
IKN374 is done, we end with bullet points:
• Another long edition today with over 16,000 words laid down (and unlike last week, not
extended quotes padding things out. It’s just that there’s a lot to talk about in the
markets at the moment.
• We’re all slaves to the gold price and if I’m reading this right, gold is now becoming
another method of market speculation rather than its real role, that of a steady anchor.
These periods don’t have to be brief, either.
• I really like the way Sandstorm (SAND) is shaping as one of the solid, central pillars of
the portfolio. Having winners like this one on board allow me to play the more
speculative end of things while keeping the asset value of the port intact.
• Interesting to read through the Friday SEDAR filings, big girls and boys doing their
position things and so forth. I haven’t even mentioned the large scale Van Eck
purchases that went through last week, certainly connected to their ETFs.
• Buy. Hold. Win.
I thank you in advance for any feedback. Our Top Pick stocks are Regulus (REG.v), 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. Namaste.
Mark
30

,
Footnotes, appendices, references, disclaimer
(1)http://finance.yahoo.com/news/sandstorm-gold-announces-closing-bought-124500645.html
(2) http://finance.yahoo.com/news/sandstorm-gold-announces-12-500-110000395.html
(3) http://www.stockhouse.com/companies/bullboard/t.ssl/sandstorm-gold-ltd#RDiFGbfrQ2dDRlWL.99
(4) http://incakolanews.blogspot.pe/2016/06/when-sellside-brokerage-anal-ysts-get.html
(5) http://finance.yahoo.com/news/starcore-mines-ore-drill-hole-090000495.html
(6)https://www.starcore.com/assets/docs/projects/5-181.pdf
(7) http://www.benzinga.com/pressreleases/16/07/m8189258/regulus-announces-increase-to-equity-financing
(8) http://incakolanews.blogspot.pe/2016/07/hudbay-hbm-hbmto-constancia-copper.html
(9) http://www.laraexploration.com/news/news-details/2016/Lara-Exploration-to-Raise-Up-to-2-Million-by-Private-
Placement/default.aspx
(10) http://www.cochilco.cl/Archivos/presentaciones/20160707124644_Informe%20trimestral%20Junio%202016.pdf
(11) http://www.cochilco.cl/Archivos/destacados/20160708112646_MERC%202016%2007%2008.pdf
(12) http://www.bloomberg.com/news/articles/2016-07-08/china-s-stocks-pare-weekly-advance-as-energy-companies-
retreat
(13) http://finance.yahoo.com/news/excellent-copper-recoveries-concentrate-grades-113000072.html
(14) http://www.elheraldo.co/politica/farc-desautoriza-frente-primero-para-hablar-de-disidencia-270706
(15) http://www.eluniversal.com.co/colombia/bogota/los-cinco-frentes-de-las-farc-que-estan-en-la-mira-por-posible-
disidencia-229920
(16) http://www.bloomberg.com/news/articles/2016-07-07/vale-facing-more-spill-costs-as-brazil-lawmakers-seek-dam-
ban
(17) http://www.marketwired.com/press-release/belo-sun-mining-announces-75-million-bought-deal-financing-tsx-bsx-
2140319.htm
(18) http://www.20minutos.com/noticia/53391/0/gobierno-argentino-defiende-suba-tarifas-tras-fallo-adverso/#xtor=AD-
1&xts=513357
(19) http://www.lanacion.com.ar/1916617-piden-comida-a-supermercados-del-gran-buenos-aires
(20) http://www.elcomercio.com/actualidad/firmas-recoleccion-rafaelcorrea-reeleccion.html
(21) http://www.elcomercio.com/actualidad/rafaelcorrea-reeleccion-corteconstitucional-aprobacion-transitoria.html
(22) http://www.elcolombiano.com/antioquia/mineros-paralizaron-a-segovia-por-planton-LD4533519
(23) http://www.elespectador.com/noticias/nacional/antioquia/riesgo-de-paro-segovia-antioquia-cierre-de-minas-inform-
articulo-642366
(24) http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00030076
(25) http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00001640
(26) http://finance.yahoo.com/news/almadex-minerals-limited-sells-common-233000987.html
(27) http://finance.yahoo.com/news/asanko-gold-conference-call-details-155451705.html
(28) http://www.marketwired.com/press-release/orla-mining-closes-c7-million-non-brokered-private-placement-tsx-
venture-ola-2140907.htm
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
31

,
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
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
32

,
Fortuna Silver FSM nov'13 U$4.00 07-nov-13 U$3.68 8.0% v near term short, closed
Primero PPP nov'13 U$5.70 07-nov-13 U$5.75 -0.9% v near term short, closed
Starcore Intl SAM.to nov'13 C$0.235 08-sep-13 C$0.17 -27.7% ST trade didn't work, sm loss
B2Gold BTO.to dec'13 C$2.22 28-nov-12 C$2.16 -2.7% closed ST trade to raise cash
Stocks To Follow Closed Positions, 2012
Closed in 2012 closed close PPS
Soltoro SOL.v jan'12 C$0.87 07-nov-11 C$0.94 8.0% cash moved to BCM.v
Gold-Ore Res GOZ.to feb'12 C$0.84 13-oct-10 C$0.98 16.7% trade closed on ELG.v offer
Minefinders MFN feb'12 U$11.68 17-nov-11 U$14.80 26.7% target made, trade closed
Iron Creek IRN.v mar'12 C$0.58 26-sep-10 C$0.31 -46.6% time up on small bad trade
U.S. Silver USA.to apr'12 C$2.18 15-mar-12 C$1.86 -14.7% ST trade no good, cut loss
Augusta Res. AZC.to may'12 C$3.10 29-jan-12 C$2.07 -33.2% bad mkt, bad trade cut loss
Bellhaven BHV.v may'12 C$0.50 22-sep-10 C$0.28 -44.0% new mgmt not impressive
Zincore Metals ZNC.to may'12 C$0.325 29-jul-11 C$0.17 -47.7% bad mkt, bad trade cut loss
Soltoro SOL.v may'12 C$0.70 18-mar-11 C$0.41 -41.4% bad mkt, bad trade cut loss
U.S. Silver USA.to aug'12 C$1.78 27-jul-12 C$1.36 -23.6% fail ST trade close pre split
Estrella Gold EST.v aug'12 C$0.91 27-mar-11 C$0.14 -84.6% Closed on port realignment
Fortuna Silver FVI.to sep'12 C$1.07 03-may-09 C$5.32 397.2% sell call $6.17/ Mar25
Strait Minerals SRD.v oct'12 C$0.125 09-dec-11 C$0.12 -4.0% closing coverage til FY13
Sunward Res SWD.to oct'12 C$1.47 13-mar-11 C$1.21 -17.7% sold, took loss
Gold Res Corp GORO oct'12 U$21.47 09-sep-12 U$17.40 19.0% Short trade closed
Yellowhead Min. YMI.to nov'12 C$1.00 01-apr-12 C$0.63 -37.0% sold, took loss
Primero Mining PPP nov'12 U$7.26 07-oct-12 U$6.73 7.3% Short trade closed
Bear Creek Min. BCM.v nov'12 C$3.38 07-nov-11 C$3.72 10.1% Took small profit
Vena Resources VEM.to dec'12 C$0.70 31-may-09 C$0.18 -74.3% Failed trade (caps F)
Galway Res GWY.v dec'12 C$2.19 24-nov-12 C$2.30 5.0% closed good ST arb trade
Stocks To Follow Closed Positions, 2011
Closed in 2011 closed close PPS
Sunward Res SWD.v jan'11 C$1.05 21-nov-10 C$1.63 55.2% target made, trade closed
Serengeti Res SIR.v mar'11 C$0.245 05-dec-10 C$0.285 16.3% sold pre-tgt, ST trade fail
Fronteer Gold FRG apr'11 U$2.37 03-may-09 U$15.24 543.0% buyout, trade closed
Minefinders MFN apr'11 U$9.09 07-nov-10 U$16.89 85.8% target made, trade closed
Metalline Min. MMG may'11 U$1.04 26-jan-11 U$0.89 -14.4% exit, resource disappointed
Peregrine Met PGM.to jul'11 C$0.87 06-mar-11 C$2.60 198.9% buyout offer, closed
Dynasty Metals DMM.to jul'11 C$4.20 03-may-09 C$2.85 -32.1% Sold. Fail. Move on.
Aura Silver AUU.v aug'11 C$0.22 13-oct-10 C$0.16 -36.4% Bad pick. Take loss
U.S. Silver USA.v aug'11 C$0.52 26-jan-11 C$0.71 36.5% closed to make room
B2Gold Corp BTO.to sep'11 C$2.80 12-may-11 C$4.27 52.5% target made, trade closed
Bear Creek Min. BCM.v sep'11 C$3.80 27-may-11 C$4.17 9.7% macro sell call victim
Minefinders MFN sep'11 U$14.70 10-aug-11 U$15.15 3.1% macro sell call victim
Great Panther GPR.to sep'11 C$3.03 22-aug-11 C$2.64 -12.9% macro sell call victim
Fortuna Silver FVI.to sep'11 C$1.07 03-may-09 C$5.36 400.9% sold 20%, macro sell call
Focus Ventures FCV.v nov'11 C$0.40 20-apr-10 C$0.20 -50.0% cut losses, bad trade
Regulus Res. REG.v dec'11 C$1.17 14-aug-11 C$0.52 -55.6% cut on news of poor 43-101
2009 and 2010 closed positions in appendices below
33

,
Stocks To Follow Closed Positions, 2010
Closed in 2010 closed close PPS
B2Gold Corp BTO.to Jan'10 C$0.88 08-nov-09 C$1.49 68.2% target made, trade closed
Radius Gold RDU.v Jan'10 C$0.18 23-aug-09 C$0.40 122.2% target made, trade closed
MAG Silver MVG mar'10 U$5.60 23-nov-09 U$7.28 30.0% closed in pdac week
Riverside Res RRI.v mar'10 C$0.435 20-sep-09 C$0.60 37.9% closed in pdac week
Amarillo Gold AGC.v mar'10 C$0.81 31-may-09 C$0.70 -13.6% closed in pdac week
B2Gold Corp BTO.to apr'10 C$1.24 18-feb-10 C$1.50 21.0% target made, trade closed
Lumina Copper LCC.v apr'10 C$0.84 14-jun-09 C$1.55 51.2% total position now sold
Troy Resources TRY.to may'10 C$1.10 03-may-09 C$2.25 104.5% sold on negative results
AuEx Ventures XAU.to may'10 C$2.51 24-may-09 C$3.38 34.7% trade closed
Nevada Copper NCU.to jun'10 C$3.27 14-mar-10 C$2.03 -37.9% need to lower Cu exposure
Carpathian Gold CPN.to jun'10 C$0.39 14-mar-10 C$0.35 -10.3% too exposed to cap raising
Amerix PM Corp APM.v jun'10 C$0.065 08-nov-09 C$0.05 -23.1% victim of macro bear
Antares Minerals ANM.v jun'10 C$1.42 06-dec-09 C$2.10 47.9% sold half
Vena Resources VEM.to jun'10 C$0.37 31-may-09 C$0.23 -37.8% sold half
Minera Andes MAI.to sep'10 C$0.75 28-jul-10 C$0.95 26.7% ST trade closed
Gold-Ore Res GOZ.to sep'10 C$0.52 01-aug-10 C$0.75 44.2% target made, trade closed
B2Gold Corp BTO.to sep'10 C$1.45 25-may-10 C$2.01 34.5% target made, trade closed
Blue Sky Uran BSK.v oct'10 C$0.41 19-may-10 C$0.22 -46.3% v small v bad trade closed
Dia Bras Expl DIB.v oct'10 C$0.14 30-aug-09 C$0.35 150.0% target made, trade closed
S. Amer. Silver SAC.to nov'10 C$1.38 24-oct-10 C$1.60 -15.9% loss on short, small fail
Ventana Gold VEN.to nov'10 C$7.92 27-jun-10 C$13.51 70.6% trade closed on buyout
Lumina Copper LCC.v nov'10 C$1.42 11-aug-10 C$3.65 157.0% trade closed
Antares Minerals ANM.v dec'10 C$1.42 06-dec-09 C$8.40 491.5% trade closed
Rio Alto Mining RIO.v dec'10 C$0.69 23-mar-10 C$2.16 213.0% trade closed
Coro Mining COP.to dec'10 C$0.585 03-oct-10 C$1.24 112.0% target made, trade closed
Stocks To Follow Closed Positions, 2009
Closed positions closed closing PPS
Cardero Res CDY/CDU.to May'09 U$1.20 03-May-09 U$0.87 -27.5% sold on negative news
Eastmain Res. ER.to May'09 C$1.04 06-May-09 C$1.315 26.4% trade closed
Radius Gold RDU.v May'09 C$0.165 03-May-09 C$0.235 42.4% trade closed
Latin Amer Min. LAT.v May'09 C$0.12 03-May-09 C$0.158 29.2% trade closed
Aquiline Res. AQI.to July'09 C$2.03 16-Jun-09 C$1.68 -17.2% took loss, bad timing
Chariot Resources CHD.to Aug'09 C$0.20 12-Jul-09 C$0.415 107.5% trade closed
Castle Gold CSG.v Sep'09 C$0.64 02-Aug-09 C$0.60 -6.3% ST trade didn't work out
Guyana Goldfields GUY.to Sep'09 C$2.30 12-May-09 C$4.50 95.7% profit taken
Los Andes Copper LA.v Sep'09 C$0.09 21-Jun-09 C$0.09 0% trade closed
Pediment Gold PEZ.to Oct'09 C$0.80 09-Aug-09 C$1.00 25.0% trade closed
Minera Andes MAI.to Oct'09 C$0.68 03-May-09 C$0.71 4.4% too much bad news
Dynasty Metals DMM.to Nov'09 C$4.18 03-May-09 C$6.01 43.8% half sold
Rusoro Mining RML.v Nov'09 C$0.55 03-May-09 C$0.57 3.6% underperformed
Important Disclosure
The information and opinions contained within this report reflect the personal views of the author and therefore all
material within should not be construed as accurate or reliable or be utilized as advice for investment or business
purposes. Independent due diligence and discussions with ones own investment and business advisor is strongly
recommended. Accordingly, nothing in this report should be construed as offering a guarantee of the accuracy or
completeness of the information contained herein, as an offer or solicitation with respect to the purchase or sale of any
security or as an endorsement of any product or service. All opinions and estimates included in this report are subject to
change without notice. It is prohibited to copy or redistribute this report to any type of third party without the express
permission of the author.
34