IKN #377Premium

,
The IKN Weekly
Week 377, July 31st 2016
Contents
This Week: Trade heads up, In today’s issue, Hot summer or August Doldrums?, And then
there’s copper.
Fundamental Analysis: HudBay Minerals (HBM) 2q16 financials and shorting update.
Stocks to Follow: Overview, Atico Mining (ATY.v), Riverside Resources (RRI.v), Continental
Gold (CNL.to), Tinka Resources (TK.v), B2Gold (BTG) (BTO.to), Sandstorm Gold (SAND)
(SSL.to), Regulus Resources (REG.v), Starcore Intl (SAM.to).
Copper Basket: Overview, Ivanhoe Mines (IVN.to), NGEx Resources (NGQ.to).
Low Cost Producer Basket: Overview, Goldcorp (GG), New Gold (NGD).
Regional Politics: Argentina politics makes the Goldcorp (GG) quarter, Argentina: The
national government calls Chubut to the table, Argentina: More Bergman, Colombia: The
Ibagué referendum now set to happen, Colombia: A ruling on mining concessions, Bolivia: No
foreign interest.
Market Watching: A Valgold (VAL.v) and Venezuela update, Dynasty Metals & Mining
(DMM.to): Many rumours, IMPACT Silver (IPT.v) and Energold (EGD.v), Starcore International
(SAM.to) April 2016 financials (quarter and year end).
I remind subscribers that no part of this newsletter can be copied, reproduced or
given to any third party without the express permission of the author.
This Week
Trade heads up
In standard manner here at the top of the shop so it’s all clear, I’ve decided to cover my
HudBay Minerals (HBM) short next week. Details in the Fundamental Analysis section below.
In today’s issue
• Copper is today’s main subject and it’s all about a personal change of position on this
most important of metals. I’ve been moderately bearish on its prospects for most of
2016 to date and the way in which it has failed to rally while other metals have had a
strong year to date (gold, silver and zinc are the most obvious, even lead, nickel and
alu are showing signs of life recently) shows that being leery on Dr. Copper has been a
reasonable call. But it’s starting to look as though copper is finding its legs and ready to
start a price improvement in the second half of 2016. I see no reason to remain bearish
on the metal and without becoming fully bullish, I’m certainly more optimistic about its
chances. See the HBM, The Copper Basket and one part of today’s intro for more.
• The move to buy Atico (ATY.v) last week fits in with this new moderate bullish outlook
towards copper. This week’s decision to cover my HudBay (HBM) short is cut from the
same cloth.
• Starcore (SAM.to) reported its quarter and new year end on Friday. The anal ysis on
that is in Market Watching, the TL:DR here is that operations numbers came in slightly
1

,
better than expected so despite heavier expenses than budgeted, the company is doing
just fine and the current recommendation (Top Pick, $1.04 target) is maintained.
• Buy. Hold. Win. Seriously, it’s the only piece of advice I have for you this year. Beats
me why you’re still reading this weekly missive, just grab a bunch of whatever gold
company shares you prefer and hold on tight, we can chat about the results in 2017.
Hot summer or August Doldrums?
Down dropt the breeze, the sails dropt down,
'Twas sad as sad could be;
And we did speak only to break
The silence of the sea!
All in a hot and copper sky,
The bloody Sun, at noon,
Right up above the mast did stand,
No bigger than the Moon.
Day after day, day after day,
We stuck, nor breath nor motion;
As idle as a painted ship
Upon a painted ocean.
Water, water, every where,
And all the boards did shrink;
Water, water, every where,
Nor any drop to drink.
The Rime of the Ancient Mariner
Samuel Taylor Coleridge
It’s sometimes called The Doldrums, after the region of equatorial Atlantic Ocean in which ships
would becalm for long periods in the times when sails were the main power source and you
didn’t even need to shoot an albatross to get
caught up in one. That was in ye olden days,
here in the 21st century we have the
thrusting business world and the relatively
short period of August, when markets calm
and in our specific focus sector, the world of
mining, will wait until US Labor Day before
coming out with any new news.
Is that our fate next month? So far at least
(and forgiving a dollar or two on Friday) gold
has kept inside the IKN predicted Northern
summer range of U$1,300 to U$1,350 per
troy ounce, but for one thing we haven’t got
close to the bottom of the range (U$1,315/oz
was the worst if memory serves) and for
another, the way last week panned out GLD gold holdings, Brexit vote to date (metric tonnes)
there’s every reason to cast doubt on that 1000
990
arm-wave call. And for yet another thing
980
there’s the above chart of GLD and XAU 970
960
that shows how the market reacted once
950
the FOMC announcement was out and it’s 940
930
difficult to call that anything else but
920
bullish. You can take all the geopolitical 910
events and wrap them up in a tight ball but 900
890
they don’t come close to the real catalysts 880
for gold price movements, such as a couple
of carefully worded lines in a Fed release.
Money talks, bullshit walks and money
2
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 61/11/7 61/21/7 61/31/7 61/41/7 61/51/7 61/81/7 61/91/7 61/02/7 61/12/7 61/22/7 61/52/7 61/62/7 61/72/7 61/82/7 61/92/7
mt
source: SPDR GLD data

,
spoke loudly as from last Wednesday lunchtime.
Another reason to cast doubt on the Doldrums scenario is my interpretation (rose-tinted specs
or otherwise) in what’s happening in to GLD physical inventories today (regular chart above). In
last week’s intro piece “The metal is leading the miners”, part of the theory proposed for
expecting the miners to catch up again (which happened right in cue I might add...toot-toot)
was GLD inventories were showing that the most speculative money from the desk jocks had
been largely blown off, leaving gold in safer and smarter hands again. That process continued
last week with another nine metric tonnes sold until Friday came along and four tonnes added,
the first real add in a couple of weeks.
That’s indicative of a new appetite for gold from the speculative end, the type of money that
pushes gold higher on momentum. From Brexit to peak spec, we saw 66.82 metric tonnes (mt)
added to GLD. That retraced to last week’s low by 28.21mt. If that hot money is about to slosh
back in and momentum runs again, this move would see GLD holdings challenge that big round
number of 1,000mt. And talking of momo, it’s not my idea of entertainment and never watch it
personally but trusted friends who do note that the talking heads on CNBC started giving bullish
predictions on gold again. Here’s (1) an example and here’s a typical paragraph on offer:
"Until and unless central banks begin to tighten policy, gold continues to be an
unabashedly strong buy," said Schlossberg on Thursday on CNBC's "Trading Nation."
"That's been the theme we've seen building up all through this year, and yesterday
was simply a confirmation of that."
Whoever Boris Schlossberg might be (but great last name, “mountain castle” or “mountain
palace”). We need of course to be clear that when CNBC latches onto a bullish idea it’s already
mature, but these people are and are watched by the momo crew par excellence.
Summing up the gold chat intro, the metal did indeed lead the miners, the miners did a good
job of catching up but there’s evidence and enough momentum talk post FOMC to say that gold
is going to blow away my early July prediction of a slow summer. So to answer my own
question in the title, put me down for a hot summer and let’s see gold break away from
U$1,350/oz next week. Reasons to be cheerful.
And then there’s copper
Copper is the main river running through
this edition of The IKN Weekly. This
chart is a hack on the way I’m finally
coming round to the bullish case for
copper and as it says on the chart,
although one can draw lines here, there
and everywhere on a chart, the one I’ve
drawn in shows to my own satisfaction
that my personal bearish tendencies
towards copper are beginning to look like
the wrong side of the trade. The way
copper prices have held out better than I
expected, plus the fundamental demand
signals from China now coming through
that the negative and/or worst case
scenarios are not playing out are
pointing me in the same direction. It’s
time to abandon my tentatively bearish
position on copper. That doesn’t mean I
have to flip 180° in a week and become
the evangelical bullmeister for the metal
amen, it does mean that it’s time to
reconsider the portfolio.
3

,
For more on copper, see today’s Fundamentals talk on HudBay and the regular Copper Basket
section. I know The Copper Basket isn’t the most popular part of the letter but I like writing it a
lot. Addressing the metal’s market on a weekly basis demands intellectual rigour, as data comes
in it’s a constant test of dogma. Evidence has piled up to the point where the only honest thing
to do is let go of my moderately bearish subjective opinion. As that (contested and apocryphal
(2)) JM Keynes quote goes, “"When the facts change I change my mind. What do you do, sir?”.
Fundamental Analysis of Mining Stocks
HudBay Minerals (HBM) 2q16 financials and shorting update
Today’s main fundies event is a look at the 2q16 financials of HudBay (HBM), the current short
position at The IKN Weekly and in my portfolio. We first covered HBM in IKN360 dated April 3rd
2016, in which I called short on the stock and went short that week afterwards. In the end I
covered the short because it was turning into an expensive loser, but not before doubling down
and fortunately recuperating nearly all he loss thanks to the second tranche. No big harm done.
I then took a second bite at the cherry in IKN370 dated June 12th, some seven weeks ago in
which I called short once again and went short personally the next week, at a higher price than
before which allowed for an easier and less stressful hold. The IKN370 short is still open today
and was predicated on two basic ideas:
1) I was bearish on copper the metal and expected it to drop under U$2/lb.
2) HBM is a financially fragile company, heavily indebted and in need of better copper
prices to show itself capable of covering its long-term obligations. Out simply, it
provides good leverage to a weak coppe price scenario.
One of the objective tests of the short position has always been the HBM 2q16 financial and
operating results when they were reported at the end of July (a position reiterated in IKN375
just two weeks ago). Those numbers are now with us (3) so the job is to look at what’s
happening at HBM but the TL:DR answer is “not a lot”, the quarter came in largely as per.
Details of 2q16
Before diving in, it just so happens that the spreadsheet I’ve concocted on HBM is one of my
favourites (each to his own) and because of that I need to resist the temptation to show you a
squillion charts examining the nooks and corners of this company. I’m going to try hard to keep
this concise and convey the main points, which are three:
1) Operationally, the key Constancia mine came in as per our adjusted
expectations of a couple of weeks ago when we found out the May 2016
production numbers were lower than expected. Profits were a little lower than
forecast, but outloook is in line for the rest of 2016. No big surprises.
2) Also operationally, the Manitoba end of HBM performed better than I
expected. The IKN short thesis was about “keeping Manitoba neutral”, as it
was neither an advantage not a burden to the share price performance. That’s
now changed and with the continued rise in zinc prices, I expect the Manitoba
division of HBM to be a moderate plus for its share price.
3) Corporate financially, HBM performed as expected overall with some pluses
and other minuses cancelling each other out in the quarter. The model for
profitability under different copper price held up well and the financials didn’t
bring many surprises.
So, a few details on those.
4

,
At Constancia: This one went according to plan, or at least according to the revised plan that
was in once it was clear Constancia would return Q2 production of around 75m lbs. In the end
it was 76.5m lbs and cash costs on that production were U$0.97/lb, which was slightly better
than expected. All fair enough.
HBM: Commercial production of copper at U$ HBM Constancia cash cost
Mlb Cu Constancia 2015 and estimates to 2q16 1.60 (per Lb Cu after credits)
100 1.40 1.23 1.32
1.15
1.20
80 0.96 0.97
1.00
60 0.80
40 0.60
0.40
20
0.20
0 0.00
2q15 3q15 4q15 1q16 2q16 2q15 3q15 4q15 1q16 2q16
source: HBM source: HBM
However sales were lower than expected, as seen here. One reason was in the NR where HBM
reported that, “Sales of copper contained in
concentrate lagged production in the second Mlbs Cu HBM Constancia: Copper production vs Sales
quarter of 2016 mainly as a result of a delay in 120 107.80 Cu Lb prod
Cu Lb sold
loading a 20,000 tonne parcel of concentrate at the 100
83.00 83.19
p sw or e t l ls o f in M la a t t e a r J a u n n i e . i ” n A P s e c r o u n c d e u n e t ra to te e fr x o te m n d C e o d n s o ta c n e c a i n a 80 60.39 64.25 68.95 76.50 58.56
60
is around 24% to 25% Cu, that would imply around
40
5,000 tonnes or 11m lbs copper. The other 7m lbs
or so can likely be justified by pre-sales from 1q16 20
and the payable terms of the smelters. It does 0
mean we can expect around 11m lbs of extra sales 3q15 4q15 1q16 2q16est
on the 3q16 numbers, which should provide a source: HBM filings
useful boost in revenues for the
current quarter. U$m HBM Peru Division: Operations overview per qtr
250 Revenues Costs DD&A Gross Profit
Constancia reported a gross profit of
$20.6m which was lower than our 200
model, but that’s those missing sales
150
for you. For 3q16, we’re pencilling in
a gross profit from Constancia alone 100
of U$39m, with benefits including
50
those deferred sales and moderately
better copper prices than in 2q16 0
(HBM averaged U$2.11/lb) while 2q15 3q15 4q15 1q16 2q16 3q16est
noting that the big March 2016 source: company filings, IKN ests for 3q16
month (14,377mt) isn’t going to
happen again as Constancia settles
into a rhythm of producing around U$m HBM Manitoba Division: Operations overview per qtr
10,000mt per month (66mlbs/qtr
160 Revenues Costs DD&A Gross Profit
approx).
140
120
At Manitoba: Both ore mined and
100
ore processed (at the Flin Flon
80
concentrator) increased by 17%.
60
Along with costs reductions and the
40
modest improvement in (mainly) zinc
20
prices, this improved margins and
0
got cash costs of copper after by-
-20 1q15 2q15 3q15 4q15 1q16 2q16 3q16est
products to U$1.10, down 43%. The
source: company filings, IKN ests for 3q16
5

,
results of all that can been seen in the segmented financials for Manitoba (above). Up to and
including 1q16 gross profits from Manitoba could have been summed up as “break even” but
that changed in 2q16, as HBM posted a U$17.69m gross profit (the IKN Weekly model had the
Manitoba division gross profit forecast at $6m). With the continued improvement in copper and
zinc prices since 2q16 closed (we know that zinc’s on a run, but note the average HBM copper
price in 2q16 was U$2.11, we’re likely to get U$2.20/lb as a minimum in 3q16), we are now
modelling some U$26m in gross profits from the Northern end of HBM in the next quarter,
3q16. That, ladies and gentlemen, is suddenly a long way from “break even at best”,. That’s
now around 10c/share in gross profits and needs to be acknowledged.
Corporate financial results: They came out very much in-line with expectations. The net loss
was 2c/share (which HBM claims would have been 0c/share if that delayed copper shipment
had left port). I’m not going to do a lot of charts here, but a few are good so here’s the
consolidated operations overview
U$m HBM: Operations breakdown
HBM: Op. Earnings
400 140
Revenue Mine Op Costs Deprec/Amort gross profit 120 117.5
350
100
300 80 50.0 60 35.3 250 40 14.2
200 20 -2.3 -0.3
0
150 -20
-40
100 -60 -29.9
50
0
1q15 2q15 3q15 4q15 1q16 2q16 3q16est
source: Company filings, IKN ests
Which shows the $48.29m in gross profits. That
turned into an operating profit of U$35.328m and a
pre-tax profit of U$6.557m, that big gap due to the
fact that HBM has (and will have for the indefinite
future) a lot of money to pay out in interest
servicing. Here right is the preferred chart on that
(which covers most but not all the burden), the
expense on long-term debt. As for 3q16, we’re
expecting HBM to post a gross profit of $65m and a
net of $14m, for the same reasons noted above.
Over at the balance sheet, the battle between assets and the heavy debt burden goes on.
There’s not a lot that’s changed on these charts, except for cash treasury expanding as HBM
managed to reduce its trade receivables. Here are just two of the usual suspect charts to
peruse at your leisure, others on request ☺.
6
51q1 51q2 51q3 51q4 61q1 61q2 tse61q3
source: company filings/IKN ests
fo snoillim srallod
U$m HBM: Interest expense on long-term debt
35
30
25
20
15
10
5
0
1q15 2q15 3q15 4q15 1q16 2q16 3q16est
source: HBM data, IKN ests for 3q16
HBM: Liabilities Breakdown
3500
3000
2500
2000
1500
1000
500
0
31q4 41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 61q1 61q2 tse61q3
U$m other LT
700 HBM: Current Assets Breakdown L O T th f e in r . c d u e r b re t nt
600 Trade & Pay
500
400
300
200
100
0
source: company filings
41q4 51q1 51q2 51q3 51q4 61q1 61q2 tse61q3
U$m
cash & eq Trade & Rec Inventories other current
source: company filings

,
The improvement of cash vs receivables along with $30m in extra credit was spun heavily by
160 HBM: Working Capital per qtr
140
120
100
80
60
40
20
0
the company in its NR as “Total liquidity increased to $293.5 million compared to $190.1 million
at the end of the first quarter of 2016” but that’s a crock for the viewing galleries and those
who don’t bother to read the financials, what matters is working capital and that dropped by
$5m or so to under $113m. Expect working cap to rise a tad in Q3, but not much. As you were.
The IKN model for HBM holds up well to examination: Finally, by luck or judgment
(probably both) the financial model we ran in
IKN370 to consider the estimated corporate
breakeven level at differing copper prices has
turned out to be spookily accurate. In IKN370
we showed the calc table as well as this chart,
today we’ll just go with the visual to save time
and space (if you care enough about the
inputs, check out IKN370).
The upshot is, by estimating production, costs
and so forth and adjusting inputs for various
copper prices, we expected pre-tax profit
breakeven to occur at HBM at a U$2.04/lb
average spot copper price. At U$2.10/lb, we
forecast a U$5.22m pre-tax profit. The result: HBM filed a U$2.11/lb received copper price and
a pre-tax profit of U$6.557m in 2q16. That means our model was darned close.
The bottom line to HBM 2q16: You can sum it up in two words, “IN LINE”, but why should a
mouthy numbernerd like me take two words when a thousand plus a dozen charts can do the
same job? ☺. A larger, multi-operation company earnings will always have an element of
swings and roundabouts, the trick is to get close on a consolidated level and look for the
underestimations to cancel out the over-estimations. That’s happened here, Constancia wasn’t
quite as good as expected, Manitoba is performing better than the IKN model. The balance
sheet is still the big problem at HBM and it’s not going away, but the market again showed after
the results came in nobody seems to care that much except wonky old me. The chances of the
long-term dues affecting this stock’s performance in the next three months are, sadly, minimal.
Now for the trade call: Covering the short
As already announced above I’m going to cover my short on HBM this week coming and close
the position here at The IKN Weekly. The main reason to cover and give up is contained in the
conclusion section from IKN370 dated June 12th , the day I shorted HBM a second time. Here
I’m re-printing the whole thing to give full context, below notes on what we know now:
Discussion and conclusion from IKN370
I’m re-shorting HBM after the first failed attempt in April (closed early May) and here’s
a list of reasons:
• The U$5-ish entry point is a far easier place from which to begin. Simple and
7
41q4 51q1 51q2 51q3 51q4 61q1 61q2 tse61q3
source company filings/
srallod
fo
snoillim
HBM: Isolated Long-term financial debt
1400 (red bars in chart left)
1200
1000
800
600
400
200
0
31q4 41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 61q1 61q2 tse61q3
U$m
source: HBM filings, IKN adjusts to U$
HBM: Profit sensitivity to copper spot price
60
50
40
30
20
10
0
-10
-20
-30
-40
1.70 1.80 1.90 2.00 2.04 2.10 2.20 2.30 2.40 2.50 2.60
Source: IKN calcs from HBM data
tiforp
xat-erp
rtq/m$U

,
true, last time I screwed up because I bought badly.
• The copper price is the main driver of HBM’s share price and that’s been
particularly bearish in the last week. With signals that it’s going lower and
prepared to break U$2.00/lb to the downside (see ‘The Copper Basket’ for
more macro background on that), timing looks good.
• However, HBM has recently zigged while copper has zagged and that’s almost
certainly due to the strong April production number out of Constancia. The
market is betting on a Constancia (and therefore HudBay) that can withstand
the lower price deck due to better production numbers.
• We acknowledge the good production figures but our numbercrunch indicates
that even with the new higher production numbers at its key asset, HBM is
going to struggle to make anything like a significant net profit with copper
under U$2.20/lb and at current spot it’s a breakeven company at best. With
copper looking to go lower, we expect the market to be disappointed by the
financial results even after the better production numbers are taken into
account.
• With a welter burden of debt on its books that’s not going away anytime
soon, the clock is ticking ever more loudly at HBM. Copper under $2 would
show how leverage works both ways when prices are at key hinge levels.
In the end, my short on HBM is essentially a short on copper. But it’s one with
leverage and one that is taking advantage of what I believe to be a large
overestimation of the positive effects of the April production numbers out of
Constancia. HBM rallied nearly 30% from June 2nd, that’s a lot of bang for what’s
essentially small bucks compared the to true influence on revenues at this company,
the copper price.
The IKN Weekly goes short HBM and although I’d like this to be a near-term trade,
this time will give the position time to mature if necessary. It’s more about the copper
price and less about HBM’s own performance, so all eyes on the spot price charts and
if Dr. Copper does what I think it’s about to do HBM will quickly return to the U$3.50
price level and when it does, I’ll take my profits. That’s the price target.
IKN377 back and although I got some things right...
• The entry point was a good one
• The market overestimated the production numbers from Constancia that month
• The debt hasn’t gone away
• HBM is a copper leverage bet
• It’s a near-term trade
...the big mistake was on the price of copper, which I expected to go South when in fact it’s
held out well at the U$2.10/lb level and is now edging higher into the U$2.20s. Part of the HBM
short rationale was also to check on 2q16 numbers when they come out and take the pulse of
the market, the copper price and the state of play in this short come the end of July. Today is
July 31st, it doesn’t come much more end-July than today and we now know that HBM has
given us an in-line result for 2q16 and that copper is holding up. Therefore:
• Of lesser importance, I have no active reason to keep this short open from HBM’s own
performance now that I know the 2q16, without being a sparkling quarter, contained
no bad surprises or corporate bombs and thay 3q16 looks modestly better for the
company.
• Of greater importance and summed up in the line from IKN370, “In the end, my short
on HBM is essentially a short on copper”, my prediction on lower copper prices simply
hasn’t come to pass. I was wrong to call copper going under $2/lb and bought into the
bearish talk from inside China on demand matters in July too much (it seems).
In other words, there’s not much left of this bear case and short trade thesis. Due to that and
because the market is giving me a chance of getting out at what’s going to be breakeven plus
8

,
or minus a percentage point next week, I’m going to throw in the towel on this short position.
It will be closed this time next weekend.
Stocks to Follow
We have thirteen open positions on the ‘Stocks to Follow’ list at the moment and eight of those
registered gains on the week (BTO.to, SAM.to, SAND, ATY.v, CNL.to, WDO.to, LRA.v, FCV.v),
then two remained unchanged (TK.v, MAD.v) and three others showed us losses (REG.v, RRI.v,
HBM short), but none of those losers were serious and they were more than made up for by
some excellent winners, including Atico Mining (ATY.v up 20.5%), Continental Gold (CNL.to up
17.7%), B2Gold (BTO.to up 10.8%) and Sandstorm Gold (SAND up 9.7%). All in all, a most
satisfactory week for the portfolio.
With the addition of Atico Mining (ATY.v) to the list last week we now have 13 open positions,
two fewer than our self-imposed maximum of fifteen at any given time. Eleven stocks are in the
green and two are net losers since inception.
company Ticker this week Avg Price Reco date Current PPS Gain/Loss% Notes
TOP PICKS
B2Gold BTO.to buy C$2.11 12-sep-14 C$4.09 93.8% new tgt $5.30 IKN375
Regulus Res REG.v buy C$0.64 06-apr-15 C$1.35 110.9% Long-term exploreco top pick
Starcore Intl SAM.to STR buy C$0.62 10-jan-15 C$0.79 27.4% $1.04 tgt, good qtr posted
Long positions (in current order of preference)
Sandstorm Gold SAND STR buy U$3.80 17-apr-16 U$5.68 49.5% New tgt IKN374 $6.20
Tinka Res TK.v buy C$0.195 19-apr-16 C$0.225 15.4% Top value under radar Zn play
Atico Mining ATY.v buy C$0.48 24-jul-16 C$0.53 10.4% new pick, 70c tgt, Cu play
Riverside Res RRI.v buy C$0.38 27-jun-16 C$0.435 14.5% Proj. Gen. model. 60c tgt
Continental Gold CNL.to buy C$2.68 22-may-16 C$3.86 44.0% permit in 2016, $4.80 tgt
Wesdome Gold WDO.to hold C$1.90 22-may-16 C$1.94 2.1% KGI M&A target
Miranda Gold MAD.v spec buy C$0.125 03-jul-16 C$0.135 8.0% new pick, small play, flip
Lara Expl. LRA.v hold C$1.15 08-apr-12 C$1.35 17.4% solid biz model
Focus Ventures FCV.v spec buy C$0.23 01-jul-12 C$0.105 -54.3% refi news good
Short positions
HudBay Min. HBM COVERING U$4.98 09-jun-16 U$5.00 -0.4% covering next week
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
INV Metals INV.to jul-16 C$0.25 03-apr-16 C$0.95 280.0% Trade closed on time
2009, 2010, 2011, 2012, 2013, 2014 and 2015 closed positions in appendices below
Now for some notes on current basket stocks.
9

,
Atico Mining (ATY.v): Position opened.
And I was all “Oh rats here were go again”
when ATY opened up nearly 9% on Monday at
48c, but after a few minutes of thought I
bought some anyway because 48c isn’t outside
its recent trading range. ATY proceeded to
spend nearly all week at the same level but
seems to have had its tape painted Friday with
a 53c close, so although it’s up by over 20% on
the week (and puts me 10% up) I’m not
holding my breath on the 50c+ prices sticking.
I urge you to consider that the low sales
numbers for Q2 as disclosed by the company
will make for a soft looking 2q16 financial
report and that should be with us by the middle of August. There’s a potential buying window
for anyone, like myself, who’d like to pick some (more) shares up.
Riverside Resources (RRI.v): Still trying to add on weakness. No change to that title
note and though RRI traded up at 48c (some Sprott Vancouver buyer perhaps?) it couldn’t hold
the number. Half a cent down on the week is neither here nor there, I’m still looking for a sub-
40c number in order to add.
Some positive news from RRI on Tuesday when it announced (4) it had optioned its Glor gold
property to Centerra (CG), its already established JV partner. This is a good thing because 1) it
validates the model used by RRI, 2) it shows RRI had great market timing when picking up Glor
last year, 3) it’s securing properties that are interesting to larger mining companies. The terms
of the deal are standard-type, with CG required to spend $3.5m over the three year period in
order to earn 70%. From there the deal turns into a straight JV with RRI required to fund its
30% pro-rata.
Continental Gold (CNL.to): On Tuesday CNL announced (5) that it had been awarded the
environmental impact permits from the
Antioquia regional authorities to construct
the necessary electricity power pylons that
will connect its mine project to the
national grid of Colombia. Although only
one of the minor permits in the big list of
papers a company such as this needs to
build its mine, it was received positively by
the market as indicative of how the
reigonal and national permitting bodies
are now working together in order to
move the mine project forward. In fact it’s
clear evidence that the national enviro
people are looking over it regional’s
shoulder and making sure things move
forward, which is exactly why I changed
position regarding CNL and went long the stock in May (see IKN367 for more details).
We then got an excellent rally in CNL into the Friday close. Last weekend in IKN376 while
commenting on it recent weakness I mused, “Potentially the price just got ahead of itself a little
and has now oversold on the way down”. That fits with the decent rally it put in, so some
tentative franking of that idea already received.
Tinka Resources (TK.v): Monday morning saw TK announce (6) to the world that they’d
hired an IR person to raise awareness of the company in the marketplace.
10

,
1) About time too.
2) No, I’d never heard of him either and I don’t know how effective he’s going to be.
Thanks for the mails, though.
3) But I’m good about sitting back and watching, let’s give him the benefit of the doubt
and on this score, something is better than nothing.
Mr. Rob Bruggeman comes from a previous IR job with Wellgreen Platinum, so he’ll probably
enjoy promoting a company that has a serious project and a real chance of becoming a mine
instead of that Wellgreen dog on wheels thing. In trading, TK continues subdued.
B2Gold (BTO.to) (BTG): Dont touch that dial! Our Top Pick and my biggest position had
another cracking week and closed above CAD$4 for the first time in many years. It reports its
quarter on Thursday August 4th, so that (and Sandstorm) will keep me busy next weekend.
Sandstorm Gold (SAND): To put at your mind at rest (on a subject you probably weren’t
worried about anyway) the lapse in copper production at the Yamana (AUY) (YRI.to) Chapada
mine, as disclosed by AUY in its 2q16 financials on Thursday, won’t affect the stream held by
SAND in 2016. As SAND gets 4.2% of production up to 3.9m lbs per year and AUY expects
Chapada to get to a lowered guidance of 106m lbs, that puts 4.2% at 4.6m lbs, so it will still
get the ceiling number of its annual delivery.
In other news SAND reports its quarter this Wednesday, August 3rd. All eyes on the balance
sheet...well, my eyes at least, I want to see how much debt they’ve managed to pay down.
Regulus Resources (REG.v): Strong fundies news last week from REG, when it announced
(7) that Stewart Redwood was joining the company as Chief Geologist to work with Kevin
Heather (who is now called Regulus Chief Geological Officer, which looks like a bit of verbal
gymnastics for a first among equals situation). The point here is that a geologist of Redwood’s
standing and CV wouldn’t care about joining any old company and look at any old rocks, he’s a
world class brain on skarns who was one of the main players in the definition of the (relatively
nearby) Antamina mine. Getting Redwood on board this means that serious pro geols see a
serious deposit in front of them and it’s notable how the name Antamina came up in the NR, as
that was the frame behind the IKN Weekly’s analysis that made this into a Top Pick.
In other news (8) Regulus closed its round of financing and along with the full overallotment
and a separate sidecar non-brokered placement on the same terms, raised gross proceeds of
$14.355m. That’s more than enough to fund this project through 2017 and maybe even beyond
that. According to my Casio the placement closure puts the REG shares out count at 68.353m
and that means it has a market cap this weekend of $92.28m; a far cry from its $39.47m
market cap when we raised the stock to Top Pick in IKN367 dated May 22nd. How time flies.
A final thing re. REG is to note how well it’s been trading recently, even with the placement
open and running as that’s usually a volume squasher. This story is getting more traction and
I’ve noticed talk on the stock popping up when the whole “what’s in the copper sector” is the
subject of conversation. That’s a striking contrast from this time last year and that’s all
connected to the excellent deal REG managed to strike with its neighbours.
Starcore Intl (SAM.to): See ‘Marketing Watching’ below for all you can eat on the SAM.to
quarter ended April, filed on Friday evening. Here we note that trading in the stock was quiet
and a 1c gain on the week shows how it’s not one of the first rank movers. Which is fine by me,
I have all the time in the world for this potential multi-bagger position.
The Copper Basket
After thirty weeks of 2016, The Copper Basket shows a 85.48% gain to level stakes.
11

,
company ticker price 1/1/16 Shares out Market Cap current pps gain/loss%
1 HudBay Min. HBM.to 5.31 235.23 1531.35 6.51 22.6%
2 Ivanhoe Mines IVN.to 0.61 778.96 1113.91 1.43 134.4%
3 Reservoir Min. RMC.v 4.08 48.69 449.41 9.23 126.2%
4 Capstone Min. CS.to 0.44 382.04 328.55 0.86 95.5%
5 NGEx Resources NGQ.to 0.65 205.06 235.82 1.15 76.9%
6 Western Copper WRN.to 0.38 94.19 112.09 1.19 213.2%
7 NovaCopper NCQ.to 0.395 104.33 80.33 0.77 94.9%
8 Cordoba Min. CDB.v 0.16 86.86 71.23 0.82 412.5%
9 Copper Mtn CUM.to 0.445 118.8 62.96 0.53 19.1%
10 Copper Fox CUU.v 0.125 417.64 54.29 0.13 4.0%
11 Atico Mining ATY.v 0.28 97.59 51.72 0.53 89.3%
12 Nevada Copper NCU.to 0.66 80.5 47.50 0.59 -10.6%
13 Amerigo Res ARG.to 0.205 173.61 31.25 0.18 -12.2%
14 Hot Chili Ltd HCH.ax 0.09 445.723 23.18 0.052 -42.2%
15 Revelo Res. RVL.v 0.055 99.19 8.93 0.09 63.6%
NB: HCH.ax priced in AUD$, rest CAD$ Portfolio avg 85.48%
The Copper Basket rose by over 11% last week and reached a new year’s high thanks to some
strong buying action in specific stocks,
especially Thursday and Friday. It’s looking The Copper Basket 2016, weekly evolution
100%
bullish for copper all of a sudden. Only six
stocks posted gains (HBM.to, IVN.to, 80%
WRN.to, ARG.to, ATY.v, CDB.v) but as four 60%
of those six were big winners it tipped the
40%
balance. The best move came from Ivanhoe
20%
Mines (IVN.to up 26.6%), followed by Atico
Mining (ATY.v up 20.5%), Cordoba Minerals 0%
(CDB.v up 13.9%) and Western Copper & -20%
Gold (WRN.to up 13.3%). A full five stocks
were unchanged on the week (RMC.v,
NGQ.to, CUU.v, NCU.to, RVL.v) and
four registered losses (CS.to, CUM.to,
NCQ.to, HCH.ax).
This despite an apparent lacklustre
week for copper metals prices that
rarely strayed inside a trading range
centred on U$2.22/lb But here’s the
thing with this chart, I think over there
on the right is a near-term chart that’s
far more bullish than first meets the
eye, as it’s showing one of the keys I’ve
been looking for in order to feel more
bullish about the metal’s prospects.
Note that the lows were reached on
Wednesday morning, before the FOMC
announcement showed up. From 2pm
EST through Friday copper rallied by
5c/lb, which isn’t unusual for the metal
but it is the first time both copper and
gold have rallied off the Fed together
for many moons (by my reckoning at
least a year). What this suggests is that
the dovish monetary position that helps
12
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 ht71 ht42 ts13
source: IKN calcs

,
gold the monetary metal has this time been a boost to the metal with a doctorate in economics.
And it takes roughly two seconds to work out which country will benefit from cheaper dollars
while getting its own economic house in order and propping up its own GDP growth, one that
still needs to import around 80% of the copper it uses, one that accounts for nearly 50% of
world copper demand. Yeah you got it, that one. Eats a lot of rice. Invented fireworks. Yup.
And if word from China is good, the latest round of weak economic data will provide a boost to
the copper price. Why so? Because it’s now being widely assumed that the Central government
will step in to provide a Keynesian interventionalist boost to its macro. Here’s a quote from this
Reuters piece (9):
China's manufacturing sector struggled for growth in July, a Reuters poll showed,
adding to expectations that Beijing will step up measures to boost growth. Weaker than
expected figures on Sunday could lift prices on Monday.
China has sent teams of officials to seven regions to investigate a rapid slowdown in
private investment, the country's cabinet said late on Thursday.
And here’s another quote from a different report (10):
"Demand is in better shape than many people recognise, we'll likely see pretty good
Chinese demand to come due to spending on infrastructure and the power grid," said
Dan Smith, analyst at Oxford Economics.
Exhibit B in “Hard Evidence For Bullish Copper” is the amount of trading activity in the metal,
which was nicely illustated in this chart out of Chile’s coppermeisters Cochilco last week (11).
Although annoted in Spanish I don’t think you’re going to have much problem with key vocab
such as “contrato”, “precio” and “cobre” so I didn’t scribble over it.
The red line shows the ‘Managed Money Trader’ index on the Comex Futures market, which is
simply the net number of futures contracts traded on the exchange (in this case for copper). As
you can see, its evolution gives an implicit signal on copper price and last week there was a
significant uptick in contract trading which, true to form, saw copper spot prices kick higher.
This is again likely tied into the FOMC announcement and the implicit weak dollar/better
demand scenario in China, but I chose this chart to show that the pop in copper last week isn’t
just on a technical basis; there’s real extra money moving into this market and that’s as good a
sign as they come.
Moving on, it’s the end of the month (bar one day) so here’s the updated long-term inventory
tracker charts. This month sees the LME’s resurgence confirmed and also the creeping rise in
Comex stock levels. Overall inventories clicked up a little from June and we’re unlikely to see
the underside of 400k this year, but thanks mainly to lower LME levels we’re still lower than this
time last year.
13

,
Copper inventories: percentage held per exchange
80
70
60
50
40
30
20
10
0
14
21.naJ bef ram rpa yam nuj luj gua pes tco von ced 31.naJ bef ram rpa yam nuj luj gua pes tco von ced 41.naj bef ram rpa yam nuj luj gua pes tco von ced 51.naj bef ram rpa yam nuj luj gua pes tco von ced 61.naj bef ram rpa yam nuj luj
LME Shanghai Comex source: Cochilco
Copper inventories, per month, 2012 to date
1000000
900000
800000
700000
600000
500000
400000
300000
200000
100000
0
21.naJ bef ram rpa yam nuj luj gua pes tco von ced 31.naJ bef ram rpa yam nuj luj gua pes tco von ced 41.naj bef ram rpa yam nuj luj gua pes tco von ced 51.naj bef ram rpa yam nuj luj gua pes tco von ced 61.naj bef ram rpa yam nuj luj
Mt Cu
LME Shanghai Comex
source: Cochilco
Overall the monthly numbers are fine without holding any big trend change data but the near-
term change is more interesting, for my taste at least. To show that, here are the regular
weekly copper warehouse inventory bullets:
• Total world copper inventories put in a significant drop last week, down 21,838 metric
tonnes (mt) (-4.8%) to finish Friday at 434,262mt.
• The most interesting move happened to the Shanghai SHFE inventories, down 9,503mt
(-5.4%) to finish the week at 174,971mt. That’s the second week running that SHFE
numbers dropped in the July period when the market had been expecting inventories to
rise. The impression is that buyers in China are stronger than most people expected
(including myself) and that State purchases haven’t collapsed, with supply to the power
industry build-out being cited by some observers.
• LME stocks also dropped, down 13,725,mt (-6.0%) to close the week at 222,725mt.
After its big pop in late June/early July LME stocks have lost 21,825mt in just two
weeks and that’s another piece in of evidence for the stronger than expected Chinese
buying action.
• Over at the Comex system, stocks rose by 940mt (+1.6%) to finish Friday at 59,344mt.
Another rise of similar level, though we note that Come now holds over 13% of world
official inventory and with this exchange’s stated intent to grow its warehouse system
and influence, we keep an eye on things.
Below is the Shanghai-only chart and visual evidence of that unexpected drop last week. To be
absolutely objective it’s still doing little else than fiddling around at the current level after its big
de-stock process, but along with the rise in trading volume in copper this isn’t the pattern of a
commodity stuck in inertia.

,
Shanghai Futures Exchange Warehouse Stocks, 2014-2016
400000
350000
300000
250000
200000
150000
100000
50000
15
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 ts13
Mt Cu
source: Cochilco
To sum up today’s Copper Basket section, there are several factors that all point in the same
direction:
• Copper prices have been resilient and haven’t buckled under U$2.00/lb at any point, in
fact they’re showing modest improvement compared the the U$2.15/lb average on the
LME in 1q16. The way in which copper has held firm above $2 is a bullish signal all by
itself, it’s how bottoms are put in prices.
• The FOMC announcement last week saw both copper and gold rally, the first time in a
long time that we’ve seen that happen. In effect, the market is saying that copper’s
benchmark currency is dropping in price in order to stimulate the economy but, in
copper’s case, its demand is doing fine and doesn’t need propping. So up goes the
price.
• Signals from China are for sustained demand that is set to at least maintain and
probably improve from upcoming government stimuli packages.
• Trading in copper contracts is picking up, the market is becoming more interested in its
fate and that’s a bullish signal for metals prices.
• Inventory data backs up the talk of better demand in China, with SHFE and LME stocks
both dropping last week. This is not part of the normal annual cycle, the de-stocking
should have finished by now.
One of the things I’ve been working on internally is to avoid entrenching my positions towards
the market, here today is a real-live example. I’ve never been a full bear on copper in 2016, but
yes I’ve been moderately bearish for the most part and always sceptical of the unalloyed bullish
talk based largely on hope. That’s now changed, because evidence now abounds that it’s now
riskier to assume a bearish position on copper than a bullish one and that’s the essence of
today’s attitude change towards copper, pure risk management. I’m not saying that I’m right to
be bullish copper, I am saying is that the probability is now to the upside and the surprise is to
the downside. I’m not saying that I’m a full-bore copper bull, I am saying that I’m confident the
bottom is in and that over time copper prices are set to improve modestly. Don’t expect U$3/lb
as my most optimistic position would be U$2.50/lb by the end of the year and my best guess
perhaps $2.35/lb (but hey, I’ll tell you now, U$2.25/lb come year end would be good enough,
it’s the lack of downside potential that I like the most). So don’t make the mistake of summing
all this up into “Mark’s Bullish copper”, the world doesn’t work in black and white.
Enough blah blah, some practical trade thoughts are in order, we’re not here for long-winded
economic pet theories or to witness my own navel-gazing, what’s needed are a few “buy low
sell high” ideas around copper. On reflection my personal portfolio is already adjusted (and
adjusting) to the better macro for copper in several ways:

,
• I’m covering my HBM short, which is a de-facto lengthening of my copper exposure
• I’m long Regulus Resources (REG.v) as a Top Pick, it’s my idea of a big potential winner
this copper cycle and I’m in for the long haul on this one (and you should be too)
• I’m long Atico Mining (ATY.v) as of last week, a neat little play that relies on copper for
80% of its revenues. I can see myself adding to this position very easily.
• Lara Exploration (LRA.v) and to a lesser extent Riverside Resources (RRI.v) are project
generators with plenty of copper real estate on their books. They should get a boost
from deals struck on their properties.
However, I’m also quick to agree that there’s space in my current juniors portfolio, i.e. the
‘Stocks to Follow’ list, for another copper name. Honestly as things stand today I’m undecided
on what I might add, I’m not the person who easily swallows ‘optionality plays’ (a neat way of
saying ‘total dogs with assets that will never work but can get a boost from speculative idiot
trading´) which automatically excludes things like CUU.v or HCH.ax. Nor am I going to buy into
indebted operators that see share price moves weighed down by obligations to to their real
owners (yes we like to pretend that shareholders always own companies and have absolute
control over their futures, so cute), so CS.to, CUM.to and HBM are not for me.
As things stand today and keeping my life simple by concentrating only on the components of
The Copper Basket list, there are the three that most interest at the current price deck:
Ivanhoe Mines (IVN.to): The ‘Friedland Factor’ was obvious and in-play last week as (along
with CXO (12)) IVN became the darling stock of last week’s Sprott Vancouver show. Not only
did Robert Friedland pop up on several occasions including a keynote speech, but the way main
man at the show Rick Rule called it his number one pick, his biggest ever position and all sorts
of wonderful along the way also made it flavour of the week.
The thing with IVN is that yes it may be aggressive marketing, but it’s not BS pumping of a dog
either. The big pill to swallow is its exposure to DRC but get over that (and hey, even I may be
able to in the end) and IVN holds multiple assets of world class stature. Or put it another way,
if Joe Mazumdar raves about these projects so should I. It’s up a lot since the start of the year
and it put in an eye-popping rally last week and the Friedland Factor mixed with the Rule
Factor, but there could be a lot more upside in this stock.
NGEx Resources (NGQ.to): The potential downside to NGQ is Argentina. The potential
upside to NGQ is Argentina. As projects go it’s the type of massive target in the upper Andes
that can add multiples to its asset value in a short period of time. It’s also better defined than it
was in the previous cycle and the Chilean, Argentina silver (to be spun off) and Argentina
copper projects can now be thought of as separate or part of the larger camp.
I won’t lie to you, I’m closest to pulling the trigger and buying on this stock. The problem may
be that I know too much about Argentina and as Hamlet pointed out, thus conscience does
make cowards of us all.
Amerigo Resources (ARG.to): This is my idea of a leverage play, because its potential
downside is low if things go wrong and if things go right, namely an improving copper price
right at the time its expansion kicks fully into gear, it’s one of those stocks that can potentially
double quickly as people spot the bargain.
It’s by no means a perfect stock, for one thing being Klaus Zeitler’s personal cash cow and a
small one to boot (less milk for the rest of us). But it goes through sweet spot phases in the
copper cycle when costs are low and margins grow. If I went for this one as my next purchase
it would be my most speculative choice and a smaller absolute cash amount deployed.
16

,
The Low Cost Producer Basket
After 30 weeks of 2016, the Producer Basket shows a gain of 150.34% 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 25.46 21.86 196.2%
2 Newmont NEM 17.98 529.12 23.28 44.00 144.7%
3 Goldcorp GG 11.56 830.22 14.84 17.88 54.7%
4 Franco Nevada FNV 45.75 176.298 13.58 77.03 68.4%
5 Agnico Eagle AEM 26.28 217.67 12.66 58.14 121.2%
6 Ang/Ashanti AU 7.10 405.27 8.88 21.91 208.6%
7 Detour Gold DGC.to 14.41 170.85 5.83 34.14 136.9%
8 Sibanye Gold SBGL 6.09 228.71 4.27 18.65 206.2%
9 Buenaventura BVN 4.28 254.19 3.72 14.65 242.3%
10 New Gold NGD 2.32 509.89 2.65 5.20 124.1%
Prices in U$/NYSE tickers, except DGC.to (CAD$) Portfolio avg 150.34%
A big up week with nine winning components and just one loser, the woefully performing
Goldcorp (GG). Of the winners, a shout out to the massive 18.8% gain recorded by New Gold
(NGD) as well as the 15.3% put on by Buenaventura (BVN).
The gap between the 2016 basket and its GDX benchmark is growing at speed now, there’s
over 27% between us and them.
The Low Cost Producer Basket: Weekly performance
160% and comparative to GDX control
140%
120%
100%
80%
60%
40%
20%
0%
-20%
Goldcorp (GG): If you care about the large cap miners you’ll already know that the negative
vibes for GG we mentioned a couple of weeks ago in IKN375 turned into nasty reality on
Wednesday. The company reported a stinker of a quarter so I won’t do the big details here,
save to say that on a pure production basis the main hits came from production problems at
Peñasquito and Cerro Negro.
One-time hits? Well yes they happen and aren’t good, but they happen to them all over time
and that’s no reason to judge the new CEO negatively on that alone. GG is “under new
management” and you could cut David Garofalo slack if you considered that he inherited a
company badly in need of restructuring. Take for example the implicit message of “we were
high grading the crap out of Peñasquito last year and it’s going to take until 2019 to repair the
damage” in the NR. But there are other things that make me wonder whether this new direction
for GG is going to turn out like Spinal Tap’s new direction of free-form jazz. Example one,
Garofalo said (13) during the prepared notes at the Conference Call:
"While lower production was expected in the second quarter, the decision to
accelerate a significant organizational restructuring had a short-term, negative
impact on gold production.”
17
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 ht71 ht42 ts13
Low Cost Basket: Percentage difference between
basket and GDX control, 2016
5%
0%
basket
gdx control -5%
-10%
-15%
-20%
-25%
-30%
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 ht71 ht42 ts13
source: ikn calcs, NYSE/Nasdaq data

,
And though blandly put, that’s one helluva thing to say. It’s one thing to swallow the cash hit
from a much-vaunted re-organization and in this case, CEO Garofalo’s new broom has cost
U$39m in restructuring charges to date. It’s quite another to see production hit by the changes,
the actual amount of gold and other things affected by the upset of staff redundancies and so
forth. The whole point of corporate restructuring is to make a company more efficient, not less
efficient! I honestly thought that here in the 21st century we’d moved on from the ‘beatings will
continue until morale improves’ method of corporate captaincy.
The second thing that concerns me, the analyst on the outside looking in, is the decision to sell
Los Filos, as well as Marlin and Alumbrera. Here’s how Garofalo put it:
"Los Filos, Marlin and Alumbrera are smaller scale mines. They don't have the
economies of scale that our existing five camps offer us" or that a newly acquired gold
project, Coffee, "potentially offers us once it's built out".
And here’s what it says in the quarterlies (with CODM = Garofalo):
Effective January 1, 2016, the Company's CODM reviewed the results of its mines and
associate that have short mine lives and are headed for closure together as one
operating segment. Accordingly, the Company has grouped Los Filos and Marlin into
one operating segment, Other mines, and presented its 37.5% interest in Alumbrera as
the Other associate operating segment.
So I understand the decision behind Marlin, there may be something for a smaller mining
company to explore and re-define there but for the GG size of company it’s now depleted (not
to mention the crappy political risk of operating in Guatemala). I also understand the Alumbrera
decision, it’s also near closure and a minority stake.
But Los Filos? Really? This is a 250,000oz to 300,000oz gold per annum mine that’s very
profitable (in 2q16 op. Cash cost U$704/oz, AISC U$822/oz). Those cash costs are slightly
above the GG average, but both production and costs ae a darned sight better than Eleonore. It
can hardly be called depleted either, with the potential to go underground on the Bermejal
Deep deposit with 1.3m oz M+I plus 1.1m oz inferred (and open along strike and at depth).
However, Garofalo has decided it’s up for sale and if it goes, it’s another 10% sliced off an
already sharply depleted corporate production rate. Can somebody please tell this man we’re in
a bull market?
New Gold (NGD): What made NGD jump so highly? The combo of better than expected
production, lower than expected costs and no new round of bad capex news from Rainy River.
Plus the fact we’re in a bull market for gold. Somebody tell David Garofalo.
Regional politics
Argentina politics makes the Goldcorp (GG) quarter
Staying with Goldcorp for one more segment, the Outlook section of the GG MD&A was pretty
thin on content but one subject that got space was the macro situation in Argentina. Here’s
what they wrote:
“The new Argentine government implemented positive structural measures at the end
of 2015 and in the first quarter of 2016 to reduce or remove controls and restrictions on
capital flows and foreign exchange. While these changes have eased restrictions, the
economy continues to recover slowly with some obstacles yet to be overcome. The
official Annual inflation rate was published as per the government's commitment and
the latest official figure stands at more than 40 percent. The increase in the inflation
rate was expected as many subsidies were eliminated. Economic activity, while slow in
the first two quarters of 2016, is expected to bounce back in the second half of 2016 in
response to the government’s market-oriented reforms.”
I’d agree with all that except for the assumption that inflation is going to come under control
18

,
and an improvement in Argentina is a shoo-in. Macroeconomic theory stats that it should
happen, I’m not arguing against that. My objections are that 1) the Macri government is
starting to get significant social pushback from people tired with salaries that aren’t rising as
fast as prices (under CFK the race was neck and neck for many years and absolute purchasing
power was largely unaffected) 2) it’s Argentina, it’s not a normal country and the normal rules
don’t apply.
To repeat (until blue in the face), once Argentina offers hard data that inflation is coming under
control in this six month period (critical in itself because all the Macri promises have been based
around “the second half of 2016” from the getgo) I’ll be more enthusiastic about its potential
for investment. It’s the key dataset, the big clue that the country is a real bargain place to buy.
Its one thing to potentially speculate on Argentina today, quite another to invest with
confidence. Goldcorp can want it to happen but unlike that company, I don’t need to be
exposed until it does.
Argentina: The national government calls Chubut to the table
On Wednesday 27th the Argentina National Minister of the Environment, Sergio Bergman, was in
the southern province of Chubut (14). He was there to sign agreements on waste management
with the regional Environment minister but come the press conference, the subject quickly
turned to mining and the current ban on large-scale mining in the region. Minister Bergman put
the national government’s position forward, that the mining industry needs to be developed and
made special mention of the Central Meseta region of Chubut, location of the very large and
very stalled ‘Navidad’ silver/lead/zinc project owned by Pan American Silver (PAA.to) (PAAS).
Berman said (translated):
“I believe that in Chubut a debate needs to begin on mining operations....This debate on mining
activity should take place in the political institutions and without previous impositions because
to debate is not to recruit, nor impose, nor seduce, it’s to give an opportunity to all in the
context of a Republican culture and to respect points of view. This is a cultural issue, not even
one of mining”.
That was so much blather and wordiness on “it’s good to talk, we need to talk”. He then talked
about a recent visit to the western Chubut region at the foothills of the Andes where anti-
mining pressure groups were in active protest during his visit and that he had listened to their
case. He commented that, “I believe that people are more suspicious of bad political practices
than of mining”. That may or may not be true, but it’s an interesting way of framing a situation
based around the town of Esquel, locality of Yamana Gold’s (YRI.to) (AUY) Suyai project, which
was voted down by binding referendum a decade ago and although AUY have been working
hard on improving its community relations for at least a year have got nowhere.
His final point was the most interesting. He said, “The province shouldn’t be analysed as a
single district for mining, we have to look (at it) by its (different) eco-regions...in the case of
Chubut it’s not the same situation in the Andean West as it is in the centre or the Atlantic
coast”.
This was a clear allusion towards the PAAS Navidad project, which is in the central ‘Meseta’
region of the province but is bound by the same laws and rules as the rest of Chubut. The
company has successfully lobbied the Macri national government recently, President Macri hs
spoken publically on its importance for economic development and wants it to happen, but as
things stand today it’s blocked because Chubut doesn’t separate itself into three different
regions, it’s all or nothing.
At the press conference, the reply from the Chubut environment minister was quick in coming.
He said he wasn’t going to enter into an argument with his national counterpart, but the position
of the provincial government and specifically that of regional governor Mario Das Neves had
been made very clear recently. He said, “The debate must happen in parliament, where there is
currently a law that prohibits mega-mining activity”. In other words, the law must be changed in
19

,
order for Navidad to move forward and to do that, the provincial parliament must propose,
debate and pass a change in the law. That of course is perfectly possible but here we’re not
talking about a board meeting of a company, we’re talking about an Argentina legislature and
the time scales involved are not weeks and they’re very unlikely to be months, either. As
Governor Das Neves has already made his ostensible anti-mine position clear, in real terms
we’re talking years on Navidad. The other interesting thing is the way Environment Minister
Bergman wants to separate the Meseta’s fate from that of the West zone because and again in
real terms, he knows that West region is a lost cause. I’d agree that Navidad has chances in the
long-term, but Yamana and Suyai are flogging a dead horse.
Argentina: More Bergman
For those of you who know Spanish (or how to work Google Translate) and want more on
Argentina’s Environment Minister Sergio Bergman’s position on mining, this Q&A (15) with
Argentina biz paper InfoBae (which has a moderately pro-CFK editorial line) makes for
interesting reading. I’ll be frank, he comes across as somebody swallowing his own convictions
and an apologist for the a pro-mining government position. He may be the weak link in the
government and the type that prefers to resign in the future.
Colombia: The Ibagué referendum now set to happen
Last week the city of Ibagué in Tolima got the official courtroom approval necessary to go
ahead with its referendum on whether it wants large scale mining in its region. Despite lobbying
and legal protests from the mining world, the referendum was officially sanctioned by the
necessary set of judges (by a vote of four to two) and the referendum must now be called
within 30 days (16). That’s likely to happen more quickly what with the local mayor being the
driving force behind this anti-mining campaign and vote which will be legally binding if at least
33% of the near 130,000 people on the local electoral register turn out.
This is mainly a vote for/against the presence of AngloGold Ashanti and its La Colosa project in
Tolima and it will be the first officially approved and registered referendum on mining in
Colombia. We can expect two things from the result when it happens. First the anti-mining side
will win and second it will cause negative political risk feedback for the whole of Colombia, even
though the vote is a strictly local and regional matter.
Colombia: A ruling on mining concessions
We had another ruling from Colombia’s Constitutional Court last week, one that didn’t get as
much attention as the previous two or three and that’s probably because it’s a constructive one
that’s good for the country in the long-term. The decision (17) states that before any mining
title or concession is awarded by the State, the relevant authorities must guarantee
mechanisms are in place that guarante the participation of local populations in affected zones in
the decision-making process.
The ruling came from legal cases made against the current mining law, which as stands does
not force holders of concessions to involve locals in their activities or explain what they are
doing. This new ruling may make the concessioning process slower at the moment of issuance,
but the inclusion of locals from the start of the process is likely to head off future problems
before they begin to manifest.
Bolivia: No foreign interest
The interesting part of the Third International Conference of Mining, Energy and Environment
(Fimen 2016) held in the traditionally mining city of Oruro in Bolivia last week isn’t about what
happened, but what didn’t happen.
At the opening press conference (18) (19), the organizers stated that there were 64 exhibitors
at the conference including State entities, private companies and co-operatives as well as
service industry providers, who together show new technologies in mining, heavy machinery,
industrial safety and new energy projects. Also, that the objective of Fimen 2016 is to learn
more about advances in mining projects in Bolivia.
20

,
Then came the killer line (translated): “Among international companies, to date we only have
one that has confirmed its participation, Mintec International, a Russian company. We hope to
have the confirmation of a Chilean company (too).”
Nobody loves Bolivia.
Market Watching
A Valgold (VAL.v) and Venezuela update
In IKN366 dated May 15th, while noting the recently imposed 60 day State of Emergency in the
country and the potential that the current Nicolas Maduro presidency implodes, I made quick
mention of a potential junior play on the country. Here’s part of the script from that day:
“...if the Maduro left wing government falls and Venezuela goes through a period of
bigtime political turmoil, we the mining investors may unfortunately have an
opportunity to do just that. Most people know the names Gold Reserve and Crystallex
when it comes to Venezuela exposure in mining projects, Rusoro might come to mind
too. But one I have in mind is Valgold (VAL.v), a totally forgotten dog-with-a-million-
fleas with a 4.5c share price, a C$1.7m market cap and nothing but $0.5m or so of
debt on its balance sheet. It’s a real live mess of a stock and trading is thin, but it has
managed to keep hold of its Venezuela concessions over the years and I recall waaaay
back when looking at what they had and thinking “not bad”. If Venezuela falls to
pieces, it may be an alternative to (what I believe to be the untouchable and wholly
crooked pairing of) Crystallex and Gold Reserve. It’s certainly cheap enough and could
be snapped up by some smart junior looking for a quick way in to Venezuela mineral
acres. Not one to buy today, just a ticker to stick in the back of the mind if/when
Venezuela’s current government goes down the tubes.”
Not much has changed inside VAL.v since then, it’s still a dog with no money and claims on
decent pieces of Venezuela mine exploration
land, it’s still a total pennycrapper. Here’s the
chart of VAL.v since then. It touched 3.5c last
week after being as high as 6.5c in June and
that’s probably because of one main thing; The
Maduro government is still there and still in
power. However, things are getting
progressively worse on the streets of Caracas
by all accounts so this isn’t a dead idea, just a
continuing latent one. As noted in IKN366 its
“...a ticker to stick in the back of the mind
if/when Venezuela’s current government goes
down the tubes”. There’s no way I’d buy in
before then, because you can comfortably
predict a bad ending for Maduro, but the “when” part could be any period of time between a
few days and years. I gave up trying to predict the unpredictable a long time ago.
Dynasty Metals & Mining (DMM.to): Many rumours
A short note on Dynasty Metals & Mining (DMM.to) in order to state the IKN position on the
stock: AVOID. This is not a company I’d go long or short on at the moment, there are all sorts
of rumours and stories swirling around about its current and future prospects and although
some of them could tempt the risk-tolerant player into taking a position, for me it’s just too
darned uncertain as to how the chips will fall. Along with the fact of the Vertex technical default
(now on its 30 day grace period), the potential interest ex-GG head Ian Telfer has in the
Jerusalem deposit and the strongly sourced (i.e. more than one person, no duplicity) intel (20)
that Goldgroup Mining (GGA.to) wants to take either a minority equity position or buy the mill
and plant assets owned by DMM, there are other stories besides. Example, Robert Washer is
21

,
under criminal investigation. Example, a private mining company has offered 300kg of gold
bullion (call it $13m) to buy out DMM lock stock and barrel but the bullion has very dubious
provenance and the government objects to the deal. Example, the people running the Special
Committee are ignoring best offers in order to favour proposals that suit themselves first and
the company second. All sorts of other things, too.
If you like crapshoots then go ahead. But if so you’d be better off playing craps at a real casino
and getting the free drinks while you do. It’s not always the case, but in most of these quasi-
bankruptcy situations where financial debt is owed and the only assets left are on the fixed
column with debatable true values, equity holders are left holding the short straw.
IMPACT Silver (IPT.v) and Energold (EGD.v)
Back in IKN374 when talking in passing about IMPACT Silver, I mentioned that it had a close
business relationship with Energold (EGD.v), the drilling company and approximate 10% holder
of IPT stock (as well as having officers in common, such as Fred Davidson). Early last week a
mail popped up from subscriber M who asked if I could expand a little on this specific passage
of IKN374:
“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).”
By checking back through the financials, the first thing to note is that IPT hasn’t had a decent
profit-making year for quite a while. The last period of true profits in the company was in 2011
and 2012 when IPT returned Mine Operating Profits of nearly $17m ($12.9m in 2011, just over
$4m in 2012). In other words, coming into 2012 and then leaving it IPT had good money in its
coffers thanks to a couple of decent years.
Second up, this chart showing the payments made by IPT to EGD in the quarters 2012 to date.
IPT.v: Drilling fees paid to Energold per qtr, 2012 to date
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
22
21q1 21q2 21q3 21q4 31q1 31q2 31q3 31q4 41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 61q1
$m
source: IPT filings
There haven’t been any charges recently, but in the period 2012 to 2014 IPT was charged
$8.382m by EGD for drilling services (a large amount of those for the failed Capire project,
which turned into a classic white elephant and was eventually mothballed after initial production
showed it to be uneconomic).
But that’s not the only financial relationship IPT has with EGD, because it also rents offices from
the drilling company mothership. For example it paid $300,000 for office space and services in
2014, $265,000 last year and what looks like the same $265k this year as well (we won’t know
until the year is over). Then there’s the question of the financial debt held by EGD over IPT,
which is filed like this on a quarterly basis.

,
$m IPT:v: Total amount owed to Energold at end qtr
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
4q12 1q13 2q13 3q13 4q13 1q14 2q14 3q14 4q14 1q15 2q15 3q15 4q15 1q16
source: company filings
Typically between $1m and $1.5m since 2013, it was supposed to be paid back in full many
moons ago because IPT holds it as a current liability and says it is considered current because
it’s to be paid back within 12 months. Also, up to 2q15 it was non-interest bearing but now this
debt carried a 4% interest rate.
But leaving that rather strange “near term” debt aside and going back just to services charged,
if you take in the whole of the 2011 to 2016 period and examine how much IPT has made
against how much it has paid to EGD, you can create a chart that looks like this:
$m
IPT and Energold: 2011 to 1q16
20
15
source: IPT filings
10
5
0
-5
-10
drill and office fees mine operating operating profit for net profit for years
due to EGD profit for years years
Between 2011 and 2016, IPT returned a mine operating profit of $14.687m. But then $9.023m
of that has gone to EGD, the major cause behind the mine operating profit turning into an
overall operating loss over the period (not to mention the net loss). Put another way, in the two
“good years” of 2011 and 2012, IPT returned Mine Operating Profits of nearly $17m ($12.9m in
2011, just over $4m in 2012). It was after the big positive result in 2011 that the big money
was spent by IPT with Energold, those $8.3m in drilling bills. It’s fair to say that EGD has
benefitted far mor from operations at IPT’s mines than its shareholders. But that may just be a
coincidence, of course.
Starcore International (SAM.to): April 2016 financials (quarter and year end)
NB: As SAM reports in Loonies, prices are in Canadian Dollars unless otherwise stated.
Overview: On Friday afternoon our Top Pick stock Starcore International (SAM.to) reported its
quarter and year-end results to April 2016. This comes as a change to its previous financial year
end of July and it means that in effect, the 2016 period is a stub year of 9 months (retroactive).
Even though SAM had already announced its production numbers for the period on May 11th
(21) and I already had a ballpark idea of what to expect from the quarter it took me a while to
pick through the results because at first it looks like a big miss, but on closer inspection there
are a couple of non-recurring items that made the bottom line look worse than it is and overall,
23

,
the company is in good shape and I’m happy enough to reiterate its Top Pick status and the
current target price of $1.04, representing a 31.6% upside from this weekend.
April quarter results: Before diving in, I’m going to refer to the quarter and year-end results
for the period February 1st to April 30th as filed
by SAM.to on Friday as “the April quarter”, SAM.to: Gold Equivalent produced
just to avoid confusion about year-ends and 8000
6900
quarter-ends and what have you. First up the 7000 6315
operations, but as we covered the pre- 6000 5100 6000 5338 5749 5381 5130 5194
announced production numbers in IKN366 5000 4800 4429 4686 4544
dated May 15th I’m going to concentrate 4000 3476
mostly on the financial results. After 3000
considering the somewhat light production 2000
totals for the quarter of 3,476 AuEq oz due to 1000
what is framed by the company as a one-off
0
glitch in ore access during the month of
February, then considering normal costs
parameters and making a few adjustments,
back then in May the forecast was for (and I quote from IKN366), “...a projected revenue of
C$5.4m sets against total COGS of C$6.2m and that means, yes indeed, unless SAM can pull a
financial rabbit out of the hat from
somewhere in the company other than
the San Martin operation we’re heading
for a quarterly loss.” In numerical terms,
the IKN mine operating earnings (MOE)
forecast was for negative $0.8m. From
there the forecast net loss was $1.3m.
So much for the theory and my
guesstimates, here’s how revenues,
costs and MOE came in with this chart
(right) comparing the last eight quarters.
SAM reported revenues of $5.668m and
COGS (which includes depreciation and
depletion) of $5.955m. Therefore, the small MOE loss
you see on the right of the picture. Below right is a
closer look at the sky blue columns in that above
chart, MOE coming in at negative $0.287m, around
half a million dollars better than my model with the
combo of slightly better revenues and slightly lower
costs doing the trick. In short it was still a losing
quarter but we’d been expecting that and it wasn’t
quite as bad as I’d feared. A minor positive. So far so
good, but then came a nasty surprise as I plugged
other numbers into the model (below right).
Somehow SAM had taken a minor loss on
MOE and turned it into the worst pre-tax
earnings number it had posted in many
years (since the dog days of 2009 in fact),
a horrid looking $-2.672m hole in the P+L.
And even though it applied a large slug of
its income tax credits to the loss it still
ended up with a net loss of $607k, its worst
since July 2011. This needed a careful look.
Here below is what happened in chart form,
24
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
oz AuEq
source: company filings
SAM.to: Operations overview
10
9
8
7
6
5
4
3
2
1
0
-1 41.yluj 41.tco 51.naj 51.rpa 51.yluj 51.tco 61.naj 61.rpa
$m revenues
COGS
mine op earnings
source: SAM filings, IKN ests
SAM.to: Mine Operating Earnings
1.4
1.2 1.126 1.136
1
0.8 0.67
0.6 0.451
0.374
0.4
0.213
0.2
0
-0.2
-0.4 -0.393 -0.287
july.14oct.14 jan.15 apr.15july.15 oct.15 jan.16 apr.16
source: company filings
srallod
fo
snoillim
SAM.to: Earnings
1.5
1
0.5
0
-0.5
-1
-1.5
-2
-2.5
-3
-3.5
41.tco 51.naj 51.rpa 51.yluj 51.tco 61.naj 61.rpa
$m pre-tax earnings
net earnings
source: SAM filings

,
though it’s a little busy and needs explanation.
$m SAM: Main below-the-line financial expenses
1 Financing cost forex cost
0.8 prof consult fees mgmt fees
office & admin
0.6
0.4
0.2
0
-0.2
-0.4
-0.6
-0.8
-1
oct.14 jan.15 apr.15 july.15 oct.15 jan.16 apr.16
source: company filings
On the SAM.to financials as in most others, there are a bunch of “below the line” financial type
expenses that sit between MOE and pre-tax earnings. On the SAM sheets, the main five are
financing credit/cost, Forex credit/cost, professional consulting fees, Management fees and
Office & Administration. Above you see the last seven quarters’ worth of data on those five.
To explain the way the chart works, when the column is above zero any given line item it’s a
cost to the company in any given quarter. Equally and inversely, if it’s below zero it’s a
“negative cost”, i.e. a net income for SAM. So as you can see in the quarters previous to the
April 2016 quarter, SAM benefitted from its Forex Cost position and always managed to get
“income” (virtual or otherwise) to cancel out some of the typical and necessary costs of doing
business. Also true in some quarters for Financing Cost (e.g. April 2015 or October 2015).
Meanwhile, typical expenses such as professional consultancy fees tend to come in around 200k
or 300k, except for one quarter back in January when they had to spend more on third party
advice. That’s kind of normal, sometimes a mining company has to get more brains in for
certain jobs and the third party expenses will rise for a quarter, nothing nefarious or underhand
going on. Ww then have other costs of running a company such as management fees and
Office/Admin, which tend to be regular.
Summing up so far, before the April quarter SAM had fluctuating financial costs to cover,
sometimes it got a credit from the Financing Cost line item, it could typically rely on getting a
credit from the Forex item, then other costs would sometimes fluctuate a little but overall they’d
be reasonable and regular. Which brings us to this quarter, April 2016, in which we got
something akin to a perfect storm.
• To begin, all five of the main line items were a cost to the company. Forex provided no
relief at all and cost the company nearly $900k (the biggest negative of the lot), neither
did financing cost. In fact financing cost at $341k was much heavier than normal.
• Next, professional consultancy fees came in hotter than normal at $557k. As SAM has
plenty of things going on (Altiplano ramp up, Creston, Toiyabe project getting
underway) it’s understandable but it’s still an extra expense in the quarter.
• The only good news came from management fees which were in line, then the office
and admin item which at $204k was around half the normal number.
The result of this perfect storm is in the above chart, but to put it in clearer context here below
is how the sum total of those five major items have weighed on the company in the last few
quarters.
25

,
A typical cost for SAM from the financial expenses section of the P+L revolves around $500k
per quarter, but this time in our perfect storm situation where there were heavy charges all
round and virtually no relief, it came in at
a whopping $2.365m
The bottom line to the operations at SAM
in April is that the numbers came in just
fine and in fact the $0.287m mine
operating loss was better than expected.
There was a nasty surprise waiting on the
bottom line though, the financials took a
big bite out the quarter and I simply didn’t
expect that to happen. But I’m not overly
concerned, because one thing that’s easy
to do is to ignore an anomalous quarter.
This “perfect storm” situation is unlikely to
repeat itself and the big loss on forex is almost certainly a one-off, as although no details are
offered it’s likely connected with the one-time pre funding of the Altiplano toll milling operation.
That type of tolling op needs a pre-funded piggy bank to pay the vendors of ore. Once cash
flow starts (and SAM announced pre-commrcial production of 2kg gold and 38kg silver, that’s
still slow but it means $100k of cash flow out the other side and the virtuous circle can begin)
Altiplano becomes self-funding, but it needs the starter cash and the timing say that’s what
we’re seeing here (we see it in the balance sheet, too).
Balance sheet items: First up assets and liabilities overview charts, as per normal.
SAM.to: Assets Breakdown per qtr
90
80
70
60
50
40
30
20
10
0
26
11.yluj 11.tco 21.naj 21.rpa 21.yluj 21.tco 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
$m
cash st inv other current fixed
source: company filings, IKN ests
Fixed assets above showed a slight dip compared to January’s numbers as deferred tax assets
dropped by around $900k and mine/plant/equipment dropped by nearly $1.8m. The tax asset
was swallowed by the CFO who tried to offset as much of that financial loss as possible on the
net loss, that’s good housekeeping. As for liabilities below, the story is of markedly lower...
SAM.to: Liabilities per qtr
50
40
30
20
10
0
11.yluj 11.tco 21.naj 21.rpa 21.yluj 21.tco 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
source: company filings/IKN ests
srallod
fo
snoillim
$m SAM: Total effect of main BTL expenses
2.5 2.365
2
1.5
1 0.82 0.692
0.45 0.474 0.552
0.5
0.248
0
oct.14 jan.15 apr.15 july.15 oct.15 jan.16 apr.16
source: company filings
LT debt
current debt

,
...long-term liabilities (all that’s really left is the $10m tax deferral, that’s not a biggie for going
concern matters) while short-term liabilities grew
as the two sets of financial debts are less than SAM: Cash & short-term investments
12
12 months from payday (that are easily covered
10
by cash, cash flow and expected revenues, so no
fears), the first in November and the second 8
early next year. This effect was expected and as 6
this liquidity chart shows, SAM has enough cash
4
and equivalents on board to pay the bills coming
2
due even if operations aren’t profitable in the
quarters to come (but they will be). For the 0
record, the short-term investments column is
mainly two time deposits (currently worth
$3.766m and $1.976m repectively) that pay a
little bit of interest. The big one is due November 5th 2016, just a couple of days before SAM
pays back the first of its larger financial debts,
the $4.5m loan due November 12th (8%
interest, roughly $4.86m to pay).
When we get to working capital that shows a
big drop, down $4m minus a spit. That’s a big
drop and again alludes to cash being tied up
in the pre-pay piggy bank to get Altiplano off
and rolling. It also smacks of a weakened
balance sheet and all the things I try to warn
people about, but in this case I’m not
concerned about this drop for four reasons:
• The cash drop is almost certainly a one-time hit, as noted above.
• The extra production expected from San Martin in the current quarter (to end July, i.e.
today) and probably the quarter to October as well, plus the improvement in gold
prices, means that San Martin is going to give us decent free cash flow in the months
to come.
• Even if SAM doesn’t return profits it has enough cash to pay down its financial debts to
zero and leave the company practically debt free (as long as you don’t sweat on the
long-term tax obligation with Mexico). There’s zero chance of this company hitting
liquidity problems.
• And the ace in the hole: Remember that the closure of the real estate deal that’s due to
bring in U$7m net cash to the company is due in September. For sure it will be good to
hear it’s closed, but the nature of the deal means we should be confident of it
happening in good order. When it closes, SAM gets an impressive cash boost and its
balance sheet will be strong by any measure you care to imagine.
Summing up the SAM quarter, the nasty surprise waiting for us on the financials isn’t that nasty
on closer inspection. The company is in good shape and has just filed its weakest quarter of the
year, as from here we can expect much stronger production numbers and significant
profitability. There’s nothing to put me off the stock in these numbers, the Top Pick rating and
$1.04 price target is reiterated and please be clear, that target could turn out to be the first
staging post for a SAM that goes a lot higher if just one of its many project fronts delivers the
goods.
27
31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa 51.yluj 51.tco 61.naj 61.rpa
$m
source: SAM filings, IKN ests
SAM.to: Working Capital per qtr 14
12
10
8
6
4
2
0
31.yluj 31.tco 41.naj 41.rpa 41.yluj 41.tco 51.naj 51.rpa 51.yluj 51.tco 61.naj 61.rpa
source company filings
srallod
fo
snoillim

,
We can expect the July quarter production numbers soon, perhaps the second week of August.
To wrap up, it’s worth your time to check out the latest corporate presentation dated July 26th
here (22). On operations and such there’s nothing super-new, but at the end of the PDF there
are some photos of the recently started drilling program at its Toiyabe project, drill rigs set up
and all. I’ll leave you with the SAM.to 2016 year to date chart, because it’s pretty.
Conclusion
IKN376 is done, we end with bullet points:
• I throw in the towel on my HudBay (HBM) short as I get more bullish about the future
of its main metal, copper. Copper really is the main theme of today’s Weekly and the
piece on HudBay needs to be read in conjunction with the main thinkpiece section on
the metal in The Copper Basket today.
• As for the next move, the three mooted names for a new copper trade are there too
(IVN, NGQ, ARG). However I have limited myself so far to copper plays included in the
house Basket and I’m always open for suggestions, so if you have any better ideas feel
free to write in. I’d prefer them LatAm based, but it’s not mandatory.
• We like Starcore (SAM.to) and the next set of production numbers have the potential to
really move the stock higher.
• I love Argentina. Such a basket case.
• In next week’s edition I’ll probably get all wonky on the quarterlies from Sandstorm
(SAND) and B2Gold (BTO.to) (BTG). Although the smaller position of the two, SAND is
the one that most interests me at the moment.
• 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
28

,
Footnotes, appendices, references, disclaimer
(1) http://www.cnbc.com/2016/07/28/these-three-conditions-could-push-gold-past-1400.html
(2) http://factsandotherstubbornthings.blogspot.pe/2011/12/that-keynes-quote.html
(3) http://finance.yahoo.com/news/hudbay-announces-second-quarter-2016-210508677.html
(4) http://finance.yahoo.com/news/riverside-options-glor-gold-project-130000788.html
(5) http://finance.yahoo.com/news/continental-gold-granted-environmental-license-103000584.html
(6)http://finance.yahoo.com/news/tinka-appoints-investor-relations-consultant-124500257.html
(7) http://www.regulusresources.com/regulus-resources-announces-appointment-dr-stewart-redwood-chief-geologist-
antakori-copper-gold-project-peru/
(8) http://www.regulusresources.com/regulus-announces-closing-financing/
(9) http://www.dailymail.co.uk/wires/reuters/article-3713919/Nickel-eyes-12-pct-jump-July-copper-targets-second-
monthly-gain.html
(10) http://af.reuters.com/article/metalsNews/idAFL4N1AE33F?sp=true
(11) http://www.cochilco.cl/Archivos/destacados/20160729113301_MERC%202016%2007%2029.pdf
(12) http://incakolanews.blogspot.pe/2016/07/colorado-resources-cxov-big-winner-at.html
(13) http://www.reuters.com/article/us-goldcorp-divestiture-idUSKCN1082MM
(14)
http://www.diariojornada.com.ar/noticias/noticia.aspx?id=165815&s=politica&t=Bergman_pidio_abrir_el_debate_por_la_
mineria_en_Chubut_y_el_Gobierno_salio_a_responderle
(15) http://www.infobae.com/politica/2016/07/29/que-piensa-sergio-bergman-del-glifosato-el-fracking-y-la-mineria-a-
cielo-abierto/
(16) http://www.elcolombiano.com/colombia/consulta-minera-en-ibague-es-una-realidad-NH4669087
(17) http://www.wradio.com.co/noticias/actualidad/corte-constitucional-condiciona-la-entrega-de-titulos-
mineros/20160727/nota/3200693.aspx
(18) http://prensa-latina.cu/index.php?option=com_content&task=view&idioma=1&id=5100381&Itemid=1
(19) http://www.lapatriaenlinea.com/?t=ma-s-de-60-empresas-estara-n-en-la-iii-fimem-bolivia-2016&nota=263434
(20) http://incakolanews.blogspot.pe/2016/07/more-dynasty-dmmto-keith-piggott-in.html
(21) https://www.starcore.com/news/news-releases/starcore-drills-10-25-metres-of-65-17-g-t-au-and-128-26-g-t-ag
(22) https://www.starcore.com/assets/docs/presentations/july-2016.pdf
29

,
Stocks To Follow Closed Positions 2015
Closed in 2015 closed close price
Argonaut Gold AR.to jan'15 C$1.47 14-dec-14 C$2.53 72.1% Big gain small time, profit taken
Amerigo Res ARG.to jan'15 C$0.405 20-jul-14 C$0.285 -29.6% Given up on weak Cu prices
Reservoir Min. RMC.v jan'15 C$6.05 18-jun-14 C$4.12 -31.9% sold on Cu downturn
Coro Mining COP.to jan'15 C$0.075 26-jan-14 C$0.035 -53.3% sm, sold on Cu downturn
Fortuna Silver FSM mar'15 U$4.12 10-nov-14 U$3.75 9.0% Short used as hedge
GoldQuest Min. GQC.v mar'15 C$0.26 27-oct-13 C$0.085 -67.3% given up ghost
Rio Alto Mining RIO.to apr'15 C$2.30 07-apr-11 C$3.57 55.2% Top pick, bot out, big win
Timmins Gold TGD jun'15 U$0.60 19-apr-15 U$0.62 3.3% near-term trade, out of time
First Majestic AG jul'15 U$10.51 10-aug-14 U$4.55 56.7% horrible failed trade
NovaCopper NCQ.to jul'15 C$1.05 09-apr-14 C$0.50 -52.4% no more Cu exposure, sm sell
McEwen Mining MUX aug'15 U$0.695 21-jul-15 U$0.92 32.4% Closed nearterm flip for win
Midas Gold MAX.to sep'15 C$0.39 21-sep-15 C$0.35 -10.3% Sm. trade idea that didn't work
New Gold NGD oct'15 U$2.18 23-aug-15 U$3.05 39.9% trade closed, profit taken
Legend Gold LGN.v nov'15 C$0.085 01-mar-15 C$0.035 -58.8% tiny "land grab" idea, failed
Timmins Gold TGD nov'15 U$0.245 20-sep-15 U$0.15 -38.8% small near-term loser
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
30

,
Pretium Res PVG.to aug'13 C$8.20 11-jun-13 C$10.14 23.7% closed to raise cash
Bear Creek BCM.v sep'13 C$2.06 30-may-13 C$2.20 6.8% sold on pol risk decision
MAG Silver MVG oct'13 U$7.00 12-sep-13 U$5.62 19.6% near-term short
Gold Res Corp GORO oct'13 U$9.52 03-may-13 U$4.98 47.7% short tgt made, covered
AQM Copper AQM.v oct'13 C$0.31 16-oct-11 C$0.125 -59.7% closed failed trade
First Majestic AG nov'13 U$11.51 07-nov-13 U$10.50 8.8% v near term short, closed
Fortuna Silver FSM nov'13 U$4.00 07-nov-13 U$3.68 8.0% v near term short, closed
Primero PPP nov'13 U$5.70 07-nov-13 U$5.75 -0.9% v near term short, closed
Starcore Intl SAM.to nov'13 C$0.235 08-sep-13 C$0.17 -27.7% ST trade didn't work, sm loss
B2Gold BTO.to dec'13 C$2.22 28-nov-12 C$2.16 -2.7% closed ST trade to raise cash
Stocks To Follow Closed Positions, 2012
Closed in 2012 closed close PPS
Soltoro SOL.v jan'12 C$0.87 07-nov-11 C$0.94 8.0% cash moved to BCM.v
Gold-Ore Res GOZ.to feb'12 C$0.84 13-oct-10 C$0.98 16.7% trade closed on ELG.v offer
Minefinders MFN feb'12 U$11.68 17-nov-11 U$14.80 26.7% target made, trade closed
Iron Creek IRN.v mar'12 C$0.58 26-sep-10 C$0.31 -46.6% time up on small bad trade
U.S. Silver USA.to apr'12 C$2.18 15-mar-12 C$1.86 -14.7% ST trade no good, cut loss
Augusta Res. AZC.to may'12 C$3.10 29-jan-12 C$2.07 -33.2% bad mkt, bad trade cut loss
Bellhaven BHV.v may'12 C$0.50 22-sep-10 C$0.28 -44.0% new mgmt not impressive
Zincore Metals ZNC.to may'12 C$0.325 29-jul-11 C$0.17 -47.7% bad mkt, bad trade cut loss
Soltoro SOL.v may'12 C$0.70 18-mar-11 C$0.41 -41.4% bad mkt, bad trade cut loss
U.S. Silver USA.to aug'12 C$1.78 27-jul-12 C$1.36 -23.6% fail ST trade close pre split
Estrella Gold EST.v aug'12 C$0.91 27-mar-11 C$0.14 -84.6% Closed on port realignment
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
31

,
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.
32