IKN #403Premium

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The IKN Weekly
Week 403, February 5th 2017
Contents
This Week: In today’s issue, The gold price gets tougher to call but starts to indicate higher.
Fundamental Analysis: Excellon Resources (EXN.to) 4q16 production and 2017 thoughts.
Stocks to Follow: Overview, Belo Sun (BSX.to), Focus Ventures (FCV.v), Starcore Intl
(SAM.to), Wesdome Gold (WDO.to), Regulus Resources (REG.v), B2Gold (BTO.to), Cordoba
Minerals (CDB.v), Sandstorm Gold (SAND), Tinka Resources (TK.v), Red Eagle Mining (R.to),
Riverside Resources (RRI.v), Lara Exploration (LRA.v).
Copper Basket: Overview, Excelsior Mining (MIN.to), Cordoba Minerals (CDB.v), Revelo
Resources (RVL.v).
Producer Basket: Overview, Barrick Gold (ABX).
Regional Politics: The Philippines: Mine closures may be more difficult than imagined, Peru:
Ex-President Toledo in the bribery line of fire, Peru’s new Vice-Minister of Mining,
Mexico/Canada/NAFTA/love/mining, Argentina: The Federal Mining Agreement in the spotlight,
Ecuador: Two weeks to go for the Presidential election, Peru gets more copper production,
Chile: The La Escondida pay negotiation update.
Market Watching: Still fishing for some Eros Resources (ERC.v), Minera IRL begins trading in
Canada.
I remind subscribers that no part of this newsletter can be copied, reproduced or
given to any third party without the express permission of the author.
This Week
In today’s issue
• The trade in Belo Sun (BSX.to) started well, less than one week between purchase and
the desired permit award. It’s a near-term flip on re-rating news, if that turns out to be
very-near-term you won’t hear me complaining. If my $1.28 target hits I sell, period.
• Excellon (EXN.to) is the main fundies event today, on the back of its 4q16 production
numbers. The bottom line is that the expansion is now behind schedule but as long as
improvement shows in the first part of 2017, no worries. If not I’ll sell.
• Gold had a good week but is still inside the house’s price frame. That may not last, but
I’m finding it harder to be confident about its next near-term move.
• The most interesting thing about copper is the way it keeps failing at $2.70/lb or so,
this fits with my view of the metal at the moment.
The gold price gets tougher to call but starts to indicate higher
Gold had a good week, with the GLD up 2.3% and the mining stocks leveraging well as they
should (GDX up 5.5%, GDXJ up 6.5%) but no illusions people, we’re still inside the recent
trading range this weekend, it’s still New Normal for both TIPS and the gold price. The first
chart in this opener has a little red box with The IKN Weekly’s best guess on a trading range for
gold these last few weeks (for the record, “SWAG” = Stupid Wild Assed Guess). With one small
exception the range has held, which is fine and dandy I suppose but I’m not claiming
greatness, you should be bored to death by now with my fixation on the Gold/TIPS relationship
and the way it’s been working as a predictor. It’s held as the overriding factor in gold’s price
1

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movements, which has made this whole prediction
game a lot easier than it usually is. TIPS yields
found a new normal, therefore gold did. End.
Nope, no greatness here, quite the contrary in fact
because the past is of little use to us in
tomorrow’s trading and I’ll be honest, after
scratching my head for the last few days I’m
finding it far more difficult to guess the metal’s
next move. For the last couple of months gold has
been relatively easy to predict, its movements
dictated by the US economy and its underlying
numbers, jawbone has been less of a factor. But
now it looks as though the whole US financial
edifice is taking more influence from its politics,
something surprisingly lacking in Trump Phase
One or Trump Honeymoon period that’s now
behind us.
However, there is some good news among all this
guff and hand-wringing; With that caveat about
being less sure, I’m now expecting gold to break
to the upside of the box, rather than the
downside. Evidence is tentative but it’s out there,
first with a dollar that’s showing some weakness
and certainly off the euphoria highs we saw in
December when all America Needed To Be Great
Again Was A Real Leader With Balls*. A simple
relationship, a weaker dollar = more dollars
needed to buy world stage things and the inverse
relationship between the greenback and gold is
tried and tested, it’s solid 85% to 90% of the
time, a high correlation.
The second piece of tentative evidence is here
below in the GLD inventory chart, which finally
showed an uptick last week and added 15.43
metric tonnes (mt), or just under half a million
ounces, to finish the week at 814.5mt. That
included over 10mt added on one day, Feb 1st.
GLD gold holdings, US Election to date (metric tonnes)
1000
980
960
940
920
900
880
860
840
820
800
780
760
2
61/9/11 61/11/11 61/51/11 61/71/11 61/12/11 61/32/11 61/82/11 61/03/11 61/2/21 61/6/21 61/8/21 61/21/21 61/41/21 61/61/21 61/02/21 61/22/21 61/72/21 61/92/21 71/3/1 71/5/1 71/9/1 71/11/1 71/31/1 71.81.1 71/02/1 71/42/1 71/62/1 71/03/1 71/1/2 71/3/2
mt
source: SPDR GLD data
The reason I track this one so carefully is that it’s a reliable window into near-term speculative
buying from the larger financial houses. The drag on gold holdings since Trump won the

,
election has been impressive, but so has the way the price of gold has ignored the Wall St. jock
desk sellers for coming on two months. Note how GLD prices reached their low on December
15th, but GLD inventories took another six weeks to reach their lows and seven to move away
from them. I’m not putting too much stock in a single week’s data of course, we need to treat
this one as tentative, but seeing GLD tick back up over the last five days needs to be put into
the positive column.
But why should this be so? Why should US instos be buying gold again and why is the dollar
showing some weakness? Aside from the clear signals sent by Trump to the part of the market
that’s been listening about the dollar being too strong for his plans, here’s where all that heavy
political stuff needs a mention. Though I’m loathe to dip my toe in on these pages (and add to
far too many column inches from millions of others) there’s clear reason to believe the way
Trump has started his presidency, quite deliberately ruffling feathers and upsetting the normal
diplomatic order of things, has raised more than a few eyebrows around the world. Now be
clear, I’m not saying that Trump is failing now, nor am I passing any sort of judgment on
whether his obviously more rumbustious style will eventually a success or failure. What I am
saying is that the world sees new doubt and mystery about The USA and, as ultimately the
strength or weakness of any currency is a reflection of confidence placed in a country by the
world community, a moderate weakening in the dollar vs its index is at least understandable.
Depending on how the rest of the first 100 days goes we may see it continue for a while, too.
Hey, maybe Trump is deliberately roughing the waters in order to weaken the dollar...hey...
*wearing a baseball cap made in China
Fundamental Analysis of Mining Stocks
Excellon Resources (EXN.to) 4q16 production and 2017 thoughts
On Tuesday January 31st Excellon Resources (EXN.to) announced its 4q16 production numbers
(1) as well as giving the market an update on the progress of its optimization program, water
pumping and all. Then later in the week we got a second announcement from the company
that reported strong grades from a recent drilling campaign (2). The job today is to add the
new information into our model and try to fathom what it means for The IKN Weekly’s only
direct silver play. Let’s start here, with the production chart for EXN with the 4q16 period
confirmed, as well as the newly adjusted house forecasts for 2017:
EXN: Silver and Silver Equivalent production per quarter
800000
700000
600000
500000
400000
300000
200000
100000
0
3
41q3 41q4 51q1 51q2 51q3 51q4 61q1 61q2 61q3 61q4 tse71q1 tse71q2 tse71q3 tse71q4
Ozt Ag/AgEq
Other AqEq source: EXN filings
Ag Ozt
In 4q16 EXN produced 159,524 oz of pure silver. Once zinc and lead by-products are thrown in,
that’s a silver equivalent production of 305,934 oz. Slightly better than the soft 3q16, but only
just and it’s a long way from the type of performance we want from this company in the year

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ahead (we’ll get to the 2017 production forecasts later). The reasons for the continued low
production are in these next charts, first these two that lay out average quarterly grades for
silver (left) and the Zn and Pb by-products (right):
EXN: Average Ag head grade (g/t), per qtr
684
700 614 594 632
600 550 533 547 536
475 483
500 406 427
375 400
300
200
100
0
What we see is a clear deterioration of grade as EXN mined the lower grading material largely
above or at the underground waterline. The drop-off in grade above is all the evidence you
need to see why the current underground infrastructure upgrading is so necessary, access to
the better grading material held deeper at La Platosa is no longer an option. Then comes these
two, showing average processed tonnes per day at the facility (left) plus recovery levels (right):
Here we see the good news about recoveries, which have stayed solid and predictable for quite
a while (except for a lapse in 2q15). Meanwhile on the left we see that throughput levels are
back to around the levels seen in the preceding years after that soft Q3, but we’re still way off
the type of performance promised by EXN once the new accesses and faces are made available.
The whole premise of our investment is that the new water pumping system will allow access to
higher grading rock and at better rates of extraction, thereby feeding its underused plant at
something closer to its nameplate capacity for the first time in a long time. We haven’t seen
that happen yet, but it’s the bet we have on for 2017. If we then take into account the
difference between produced and payable ounces per quarter (above left) then take a ballpark
guess at the average selling price achieved by EXN for silver by doing the comparative to the
4
31q4 41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 61q1 61q2 61q3 61q4
EXN: Zn and Pb avg head grades (%), per qtr
11
10
9
8
7
6
5
4
3
2
1
0
source: company filings
31q4 41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 61q1 61q2 61q3 61q4
%
Pb %
Zn %
source: company filings
EXN: Tonnes per day thruput average, per qtr
250 230
225 210 215
200
175 155 154 161 167 162 159 158 170
150 127 141 132
125
100
75
50
25
0
31q4 41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 61q1 61q2 61q3 61q4 tse71q1
tpd EXN: Average metals recoveries/qtr
100
95
90
85
80
75
70
source: company filings
31q4 41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 61q1 61q2 61q3 61q4
%
Ag % Pb % Zn %
source: EXN data
EXN: produced vs payable AgEq per qtr
500000
450000
400000
350000
300000
250000
200000
150000
100000
50000
0
51q1 51q2 51q3 51q4 61q1 61q2 61q3 tse61q4 tse71q1 tse71q2
AgEq EXN: Avg realized price vs London Fix, per qtr
AgEq oz produced 25
AgEq oz payable
20
15
10
5
0
source: EXN data, IKN ests
51q1 51q2 51q3 51q4 61q1 61q2 61q3 tse61q4
U$/oz
avg realized price/Oz Ag
London Fix Avg
source: EXN data, Yahoo! Finance

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London Fix average (above right), we can estimate revenues for 4q16. With operating costs
expected in line (right) with previous quarters, this points to a company that’s marginally free
cash flow positive for 4q16 but running a marginal operating loss once depreciation of fixed
assets is factored in. We’ll find out the exact number on March 23rd when EXN reports its 4q16
and year-end financials, but the IKN estimate is for a $0.5m operating loss for the quarter.
EXN.to: Revenues and operating earnings, per qtr
6
5
4
3
2
1
0
-1
-2
-3
And this bit is important(cid:1) Yes, it’s a loss, but it’s manageable. I’m in EXN for a different reason
than instant love. This one isn’t a Belo Sun type trade, this is about that rarest of things, locking
down a value price in a silver company. EXN promises growth in 2017 due to its current capex
and investment in the Platosa mine, so the quarters in which the capex heavy lifting and
installation is done aren’t going to be anything like as interesting and shiny. However, there is
an issue on the horizon and it needs to be taken into account.
The growth timeline is slower than anticipated
The original coverage of EXN.to came in the double-header NOBS reports of IKN387 dated
October 9th 2016 and IKN388, the following week (we cut it in two because it was a big
subject...still is in fact). This chart covering pure silver production forecasts at EXN (not AgEq)
is the shorthand for the segment that follows, understand the bars here and there’s no need to
read all the gubbins under it.
Oz Ag EXN: Change in ramp-up estimates, IKN388 to IKN403
800000
700000
600000 IKN388
500000 IKN403
400000
300000
200000
100000
0
1q16 2q16 3q16 4q16 1q17est 2q17est 3q17est 4q17est 1q18est 2q18est
source: EXN data, IKN ests
Back in IKN388 we had production numbers up to and including 2q16. We were ready for a
softer 3q16 but expected improvement from 4q16 onward as the pumping system started to
show its worth. Then production was to be improving measurably by 1q17, really hitting stride
by 2q17 and with the second half of 2017 going great guns, close to or at the new production
target rates (and by way of reminder the IKN model is based on an eventual 3.6m oz AgEq per
year, which was lowball compared to EXN’s 4m oz AgEq estimates). What we’ve seen since
then doesn’t match our original forecast, therefore adjustments have to be made. Indeed 3q16
was soft, in fact it was much softer than forecast because of low grades. But we’ve just seen
5
51q2 51q3 51q4 61q1 61q2 61q3 tse61q4
U$m
EXN.to: Costs overview
revenues 6
Op earnings
5
4
3
2
1
0
source: company filings
51q2 51q3 51q4 61q1 61q2 61q3 tse61q4
U$m
production costs deplet + amort G&A
Source: EXN.to filings, IKN ests

,
the same pattern repeat in 4q16 and with EXN stating during 3q16 and 4q16 that the pumping
system wouldn’t start going in until the end of 4q16, we haven’t seen any of its benefits yet.
And now last week we get the NR from the company that among other things said this:
“Well drilling remains on schedule, with nine of fourteen wells now ready for
pump installation and drilling expected to be completed during March. The
project remains on budget and the Company expects to complete installation
by the end of Q1 2017, with dry mining conditions being achieved during Q2
2017.”
This compares to the information set out in its 2q16 MD&A, dated August 2016, that tells us the
final phase of installation of the pumping system was starting to be installed and that...
“...(t)he installation of the system is expected to take approximately ten
months, though the benefits of the increasing drawdown rate will begin to be
realized during implementation.”
With 4q16 ending on December 31st, we can at a pinch agree with the company statement that
the drilling is “on schedule”. Just. Zero room for margin. We can also applaud the fact that the
project remains on-budget but one thing’s for sure, we haven’t seen anything of the benefits
from the increasing drawdown in the last quarter. Fact is, this project is behind the original
schedule and that’s what I’ve tried to reflect in the above chart. The first adjustment is to start
from a lower level 3q16 with increments from what we now know about that quarter and its low
grade. The second is to note that the first modest production increases didn’t happen in 4q16,
so let’s see them in 1q17. From there we get “fully dry” by 2q17, which will allow the real
growth to kick in and now, in effect, I’m two quarters behind my original estimates. That’s not a
great thing but it’s by no means a disaster either, as long as EXN can show it’s on the track of
increased production, first modestly in 1q17, then more meaningfully in 2q17, then serious
strides in the quarters that follow, I’m okay about being them being a little slower to execute
than expected (and likely myself being a little too sharp in expectations). But they have to
start showing results soon. Another UNCH quarter for 1q17 will be a small red flag, only
minor improvements in 2q17 will be a big fat red flag and all the warning we’ll ever need that
this project isn’t going the way it should be going. Therefore what we want to see is:
• A better 1q17 than the last two quarters
• A much better 2q17
• And if those come in correctly, continued improvement in 3q16
That last bullet comes with a conditional, because if the first two don’t show up I won’t be
around to see if EXN gives us better numbers
in the second half of the year because value
proposition or not, this timeline gets delayed
further and it will be my own stupid fault if I
recognize the fact and fail to take action.
To sum up, in the original NOBS reports of
IKN387 and IKN388 I went a pretty
conservative route to arrive at a target price
valuation of $3.13 and as there were several
conservative parameters built in, I’m good
about sticking to that target price today.
However what is absolutely essential is
that EXN delivers on its plan for better
grade and tonnage from Platosa via the
successful dewatering of the lower levels of the mine, because with a current market
cap of CAD$142.5m (approx U$107m), EXN is expensive if it’s going to keep cranking out
breakeven/slight loss quarters of 1.2m to 1.4m oz AgEq per year, just as it’s done the last two
6

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quarters. But it’s decidedly cheap if it can indeed double its production at no big extra operating
cost, as it has promised to do this year. I continue to hold despite a somewhat disappointing
set of 4q16 production numbers because a flat quarter doesn’t put EXN under financial pressure
(all balance sheet items expected to be in good shape come the financials, including liquidity)
and in the end this is mining, delays to good plans are part of the playing field, shit happens.
But EXN needs to show it can deliver on its promises in 2017 and that show must start with the
1q17 numbers then followed in 2q17, else I will sell.
Stocks to Follow
Despite the strong rally in precious metals mining stocks (GDX up 5.5%, GDXJ up 6.5%) it
wasn’t all sweetness and light in our ‘Stocks to Follow’ list on a weekly basis and it’s fair to say
our list underperformed the average. Despite that, it was still a winning week with nine of the
14 names below registering gains (BTO.to, SAND, CDB.v, SAM.to, BSX.to, EXN.to, RPM.v, RRI.v,
LRA.v) and the other five losers (REG.v, TK.v, WDO.to, ATY.v, R.to). The biggest loser was the
12.1% drop in Regulus, the biggest winners the 25.9% gain in new addition Belo Sun, followed
by the 15.9% gain in Riverside Resources. Those were very welcome.
With the disposal of Focus Ventures (FCV.v) and the addition of the near-term trade in Belo Sun
(BSX.to) we’re still at 14 open positions on the ‘Stocks to Follow’ list, one less than our self-
imposed maximum number at any given time. Twelve of the positions are in the green, one is
unchanged, one is left in the red.
company Ticker this week Avg Price Reco date Current PPS Gain/Loss% Notes
TOP PICKS
B2Gold BTO.to STR buy C$2.11 12-sep-14 C$4.05 91.9% tgt $5.30 Top Pick prod.
Regulus Res REG.v buy C$0.64 06-apr-15 C$1.45 126.6% LT exploreco top pick
Long positions (in current order of preference)
Sandstorm Gold SAND buy U$3.80 17-apr-16 U$4.56 20.0% $7 tgt IKN378, good Q4
Tinka Res TK.v buy C$0.195 19-apr-16 C$0.305 56.4% Under-radar Zn.
Wesdome Gold WDO.to hold C$1.72 22-may-16 C$2.63 52.9% Will sell at $2.88
Cordoba Min. CDB.v buy C$0.73 15-sep-16 C$1.50 105.5% First $1.50 tgt hit
Starcore Intl SAM.to part sell C$0.61 10-jan-15 C$0.62 1.6% ex-Top Pick, reducing position
Belo Sun BSX.to buy C$0.90 30-jan-17 C$1.07 18.9% near-term trade $1.28 tgt
Excellon Res EXN.to STR buy C$1.71 09-oct-16 C$1.90 11.1% $3.13 tgt, Ag growth story
Atico Mining ATY.v buy C$0.51 24-jul-16 C$0.87 70.6% tgt $1.10, Cu play
Rye Patch Gold RPM.v STR buy C$0.31 02-sep-16 C$0.295 -4.8% 75c tgt, bot more IKN400
Riverside Res RRI.v buy C$0.39 27-jun-16 C$0.51 30.8% Added IKN380, 60c tgt
Red Eagle Min. R.to buy C$0.71 13-dec-16 C$0.80 12.7% Big growth potential
Lara Expl. LRA.v hold C$1.15 08-apr-12 C$1.15 0.0% solid biz model
Short positions
None at present
Closed in 2017 closed close price
Continental Gold CNL.to Jan'17 C$2.68 22-may-16 C$4.17 55.6% trade closed, profit taken
Focus Ventures FCV.v Jan'17 C$0.23 01-jul-12 C$0.05 -78.3% Give up
2009 to 2016 annual closed positions in appendices below
7

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Now for notes on some of the current basket stocks:
Belo Sun (BSX.to): Position opened.
“That Escalated Quickly”
Anchorman: The Legend of
Ron Burgundy, 2004
They don’t often work out this elegantly. Last Sunday in the main IKN403 article “Belo Sun
(BSX.to) offers a trade on permit award re-rating” we called a new reco on BSX due to the
increased chances of the key permit awards for Volta Grande. Monday BSX popped to 95c at
the open, but buying pressure soon eased and I got my shares at 90c later in the day. The
week went on with the stock trading between 89c and 92c until Thursday morning and the NR
(3) from BSX that started this way:
TORONTO, ONTARIO--(Marketwired - Feb 2, 2017) - Belo Sun Mining Corp. ("Belo
Sun") (BSX.TO) has received the "Licenca de Instalacao" ("LI" or "Construction
Licence") for its Volta Grande Gold Project from the Brazilian State Government of
Pará under the environmental authority, SEMAS ("Secretaria de Estado de Meio
Ambiente e Sustentabilidade do Pará" or "Para State Secretary of Environment and
Sustainability").
As you’d expect the stock launched from that moment and closed the week a penny off its
higher at $1.07, which represents a 25.9% gain on the week and an immediate 18.9% gain to
my personal position. The near-optimum timing is, of course, sheer luck on my part but it’s also
very welcome of course.
As for the plan as per IKN402, that hasn’t changed one iota. I believe there’s room for share
price improvement in the days ahead and the IKN $1.28 target is a reasonable one under the
circumstances. The catalyst has come early, but at $1.07 there’s still nearly 20% between this
weekend and the pay number, that’s almost playable in itself. Meanwhile and as a caveat to the
confirmed price target I’m going to keep a
close eye on any local and community
backlash to the decision by authorities to
award the construction permit for Volta
Grande, the last main one BSX needed,
because even before the decision came in
the Brazilian “Defender of the People”
bureau was calling on Pará state not to
award the permit and there is a possibility
of significant social protest in light of the
decision. Put simply, if it gets too hot on
the ground around the project I won’t wait
for the target price and would take early
and smaller profits. If things look
manageable (and there’s bound to be a
level of grumbling and anti-mine noise, just
a case of how much) I’ll be happy enough to stay in.
The bottom line: This is a near-term trade and will stay that way. It’s started well and if it
finishes far more quickly that I expected then all good, but the target is the target and the only
thing that will put me off is large-scale unrest in local communities, which would get me selling
early.
Focus Ventures (FCV.v): Position closed. The sorry story comes to an end. There was a
decent amount of liquidity available at 5c last week, which may hint at me selling too early and
too cheaply on this new management/new financing deal. No matter, as stated last week I’ve
now done what I should have done a long time ago, cut away this abject failure of a trade and
taken the loss in real terms, rather than in just paper portfolio terms.
8

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Starcore Intl (SAM.to): Still trimming position. Even though I thought about it hard I
didn’t sell any more last week, even though it traded regularly in the low to mid-60s range. The
recent Eadie insider purchases, plus seeing the latest quarter end (end Jan’17) go by and
thinking about what might have pushed Eadie into buying, froze me into a state of inertia. I
might regret that, so be clear that I’m still likely to trim down this position at any given
moment, though it will definitely remain a component of our Stocks to Follow.
Wesdome Gold (WDO.to): Still selling at $2.88. Just so you remember. In trading WDO
was higher most of the week but at no point did it threaten to take out $2.70 on the way to
$2.80 and then to the moon and beyond, Alice. It’s gone quiet again, which surprised quite a
few people but not me. Waiting patiently for my out.
Regulus Resources (REG.v): In an unwelcome but unsurprising development, the REG share
price action stayed true to the now regular pattern of channel trading and reversed and
dropped on reaching the low $1.60s range, as seen last weekend. I can’t see it dropping to its
previous lows of $1.15 to $1.20 under present circumstances though, for one thing we’re on the
verge of seeing real work happen at AntaKori for the first time in many many years. It would
also need a wholesale drop in the price of copper and though Cu may weaken a little more, the
days of $2.10/lb look long past us now. Then again, it wouldn’t be the first time I was wrong
about market action but whatever happens, this for me isn’t a near-term trading proposition,
REG is very much a Top Pick and a keeper.
B2Gold (BTO.to): A week of news from BTO, but not the type I was looking for (yet again no
Q4 production NR forthcoming). On Thursday we learned from The Philippine government’s
DENR environment people that a whole bunch of mines were being forcibly closed outright
(many of them private nickel concerns) and another, smaller bunch had been placed under
suspension until such time as they get their house in order (including the Didipio gold mine
owned by OceanaGold (OGC.to) (OGC.ax)). As for the only one I really care about, the Masbate
mine of B2Gold, it escaped penalty but the DENR decision was “deferred” until a later date.
What that means exactly is up for debate, as ostensibly at least it means that Masbate still has
a Sword of Damocles suspended above and could theoretically see its operating suspended in
the same way as OGC at Didipio, but after talking to a well-placed individual who is very close
to the Masbate operation (no name no packdrill) I’m led to understand that B2 isn’t worried
much about that eventuality. Word is that DENR has its own politicking to do and giving a clear
green light to Masbate would have upset
Cordoba Minerals (CDB.v): This time last week I was weighing up the idea of promoting
CDB to Top Pick (and by definition adding
more to my personal portfolio) but sided
against the idea, as I thought it might
retrace a bit first. Silly old me, CDB
consolidated very well at the $1.40 line and
moved forward again, closing the week at a
significant $1.51 number.
Why significant? As pointed out on the blog
last week (4) that Friday close is exactly
one penny above the $1.50 strike price of
the raft of 15m warrants set to expire this
week coming, on February 7th to be exact.
With EXN now at (and slightly above) the
money, plus the way in which a large chunk
of the warrants are held by HPX/Robert Friedland, there’s every reason to expect some/most
(or even all) of them to be exercised. Yes that will push up the shares out count, but it will also
mean CDB gets to raise all the working capital it might need (and then some) in a neat and
9

,
easy way. What’s more, with HPX obviously keen to sponsor CDB and still handily under its
45% standstill agreement limit on CDB holdings, it wouldn’t be surprising if Friedland & Co. opt
to exercise their portion of the warrants even if CDB trades slightly under $1.50 on the day.
CDB really has the wind in its sails now and after buying in and waiting as it fiddled around our
entry point price, it’s now a 100%+ winner for the list. This is good.
Sandstorm Gold (SAND): A good week for SAND, as the stock kept track of the industry
benchmarks with really threatening to break loose from the pack. News affecting our preferred
streamer play came from Luna Gold (LGC.to), in which SAND has a large equity holding plus
plenty of the debt and also NSRs on eventual production if Aurizona gets re-started. LGC has
announced a friendly merger with JDL Gold
(JDL.v), the weird hotch-potch comapny put
together by the Pathway people. As LGC is
also a Pathway baby (and SAND was once
greatly behest to that shop too, once upon a
time) the deal makes corporate sense, even
if the end result looks like a dog’s breakfast
and nothing I would touch personally (plus
it’ll be pumped to the rafters by those
Katusa/Casey scoundrels, on that you can
bet money). I think this deal is potentially
good news for SAND however, as the
eventual mergeco (to be called “Trek
Mining”, so ugly that “Shrek Mining” would
be more apt) deal when closed will give
SAND a perfect and politically correct opportunity to sell some (maybe all?) of its position in
LGC equity and raise cash to put somewhere more interesting (and less pumperooney). We’ll
see if Nolan decides to do so, I hope he does.
The other piece of semi-official news floating around the market is that Orion is selling its suite
of royalty/stream assets and SAND is one of the companies in talks with them for some/all the
deals. There are all the other usual suspect streamer/royalty companies bidding too,
apparently. The whole set-up smacks of something in which there will be little value in the
near-term for the eventual “winner” and sharp competition for the best bits of the book. I hope
SAND doesn’t overpay for something.
Tinka Resources (TK.v): Hmmm. TK seems to have stalled after that run-up, which isn’t so
great. At some point we were always going to need real fundies news to push TK higher, but I
kind of hoped we’d get a move up towards 40c before the momentum ran out.
As for those catalysts, there are two obvious opportunities on the horizon. TK starts its 2017
drilling campaign soon and that’s going to provide plenty of substantive newsflow all year. But
before then TK has its analyst site visit, scheduled (so I hear) for the week of Monday February
20th , and as there’s every reason to expect good reviews from that visit we may see renewed
(though temporary) buying interest generated from that.
Red Eagle Mining (R.to): Here are the last couple of lines from last week’s comment about
Red Eagle (R.to):
“...it wouldn’t come as the greatest shock to me to see the company run an
extra, top-up placement before it hits 100% speed at San Ramón in order to
give the balance sheet some breathing space”.
And lo and behold, on Wednesday R.to announced (5) a $10m bought deal financing, the plan
to sell 13.33m shares at 75c a shot (no warrant) along with a 15% overallotment facility. The
placement opportunity came in 10c below the closing price that day and was obviously popular,
10

,
because the very next morning R.to upped the size to $15m (6), which means that with the
overallotment the company is set to raise around $17.2m in gross proceeds (just under $17m
net when the dust has settled). That’s a very fair chunk of change of course, way more than
just comfort money to see R.to though any potential temporary financial tight spot before free
cash flow goes positive, it suggests they’re keen to use money in other ways too and my best
guess on that is to improve the balance sheet by partially paying down the financial debt it
holds (before refinancing it later). Another thing to note is how the open market price stayed
above the nominal 75c bought deal price, there’s no better signal than that of a popular
financing.
Riverside Resources (RRI.v): Good looking price
chart. And talking of charts, if you see any of the
charts used in last week’s review of the 2016 year-
end financials floating around in other documents
created by RRI, there’s no worries, John-Mark Staude
asked permission to use parts of the piece in
presentations for shareholders. The answer was yes.
Lara Exploration (LRA.v): I’m meeting Miles
Thompson for lunch tomorrow Monday. Expect notes
and thoughts arising from that next weekend in
IKN404. If you have questions for him, you have til 11:30am tomorrow Monday to get them in.
The Copper Basket
After five weeks of 2017, The Copper Basket shows an 16.80% gain to level stakes.
company ticker price 1/1/17 Shares out Market Cap current pps gain/loss%
1 Imperial Metals III.to 6.06 93.587 616.74 6.59 8.7%
2 Capstone Min. CS.to 1.26 382.04 588.34 1.54 22.2%
3 NGEx Resources NGQ.to 1.20 205.06 276.83 1.35 12.5%
4 Western Copper WRN.to 1.86 94.19 156.36 1.66 -10.8%
5 Excelsior Min. MIN.to 0.63 167.364 147.28 0.88 39.7%
6 Copper Mtn CMMC.to 0.94 118.8 144.94 1.22 29.8%
7 Cordoba Min. CDB.v 0.73 86.86 131.16 1.51 106.8%
8 Regulus Res. REG.v 1.20 68.368 99.13 1.45 20.8%
9 Atico Mining ATY.v 0.95 97.59 84.90 0.87 -8.4%
10 Coro Mining COP.to 0.15 483.425 79.77 0.165 10.0%
11 Trilogy Metals TMQ.to 0.66 104.33 68.86 0.66 0.0%
12 Amerigo Res ARG.to 0.345 173.61 67.71 0.39 13.0%
13 Nevada Copper NCU.to 0.77 80.5 63.60 0.79 2.6%
14 Copper Fox CUU.v 0.125 417.64 58.47 0.14 12.0%
15 Revelo Res. RVL.v 0.070 128.486 8.35 0.065 -7.1%
NB: All stocks priced in CAD$ Portfolio avg 16.80%
A down week, with copper the metal losing The Copper Basket 2017, weekly evolution
ground and our basket tracker dropping 1.8%
20%
due to the mix of eight losers (III.to, WRN.to,
ATY.v, REG.v, COP.to, NCU.to, ARG.to, CUU.v) 15%
and one unchanged stock (TMQ.to) versus six
winners (CS.to, NGQ.to, CMMC.to, MIN.to, 10%
CDB.v, RVL.v). There balance of big wins vs big
5%
loses was against the basket too, double figure
percentage losses coming from Copper Fox
0%
(CUU.v down 17.7%) and Regulus Resources
Jan1st jan8th 15th 22nd 29th feb5th
(REG.v down 12.1%) with Coro Mining (COP.to source: IKN calcs
11

,
down 8.3%) a steeper adjustment too. The one big winner was Excelsior Mining (MIN.to up
14.3%), a stock which generated its own good
news (see below).
This five day chart of the copper price shows the
main reason for the week weak. Copper again
nudged at that strong ceiling we’ve seen in the
low.$2.70/lb region early in the week and again it
failed to crack through. The result was a sell-off,
copper back down to the U$2.60/lb level come the
end of the week and moving in quite the opposite
direction than to gold (or silver, for that matter).
In copper fundies news, an interesting datacrunch
from Chile’s Diario Financiero (7) shows how
mining exploration spending in Chile (which
invariably hangs greatly on the search for copper)
dropped by 28% in 2016. That’s an awful lot, not
just a lot, because the majority of exploration
holes aren’t sunk by small junior explorecos such
as the ones above, but by larger operators who
need to keep reserves and resources up at their
mines. The report is upbeat about 2017 however, with most companies they surveyed saying
they’re back to spending a normal amount on exploration drilling.
We move to copper inventory talk. The end of the first month of 2017 is behind us, so it’s time
to check out the long-term monthly tracker charts:
Copper inventories: percentage held per exchange
80
70
60
50
40
30
20
10
0
12
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 gua pes tco von ced 71.naj bef
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 gua pes tco von ced 71.naj bef
Mt Cu source: Cochilco
LME Shanghai Comex
The big change is obvious enough: The LME/SHFE lines are apparently doing the same dance
they did last year, with the Shanghai stock number about to overtake that of the LME as

,
Chinese New Year passes. The main difference between 2015/2016 and this time 2016/2017 is
that the Shanghai stocks were already piling up by October 2015, this time it’s taken until
January to rise from the lows. That may mean this years stock peak in SHFE (and therefore
China) isn’t as accentuated as it was last year when we reached a new record of nearly 400,000
tonnes in the SHFE warehouses. We shall see.
Now for the regular weekly copper warehouse inventory bullets:
• Total world stocks levels moved marginally higher last week as SHFE warehouse stocks
found their level for the New Year break. World stocks stood at 566,863 metric tonnes
(mt) at the Friday close up 7,906mt (+1.4%).
• I wasn’t expected SHFE Shanghai warehouse inventories to move up any further, in
New Year week but they did, as final shipments hit the docks for New Year. They were
up by 10,928mt (+5.1%) and now stand at 223,853mt.
• LME inventories dropped again, a modest 6,625mt (-2.5%) decline to close at
257,150mt.
• Comex stocks continued their trend, his time up 3,603mt (+4.0%) to close the week at
93,766mt. When it hits 100k the market may start considering Comex copper
significant, we who follow the numbers closely are already there.
Here’s the Shanghai-only chart, and the peaks that start building in January of each year are
one of the main features of this particular squiggly line.
Shanghai Futures Exchange Warehouse Stocks, Dec'13 to date
400000
350000
300000
250000
200000
150000
100000
50000
13
ht5naj ht9 ht61 ht02 ht52 ht92 dr3gua ht7 ht21 ht61 ts12 ht52 ts1ram ht5rpa ht01 ht41 ht91 dr32 ht72 ts1von ht6ced ht01 ht41 ht02 ht42 ht92 dr3luJ t7guA ht11 ht61 ht72 ts1naJ ht5beF
Mt Cu
source: Cochilco
It’s not a case of whether SHFE stocks will climb sharply once China is back from its vacations,
it’s by how much. For what it’s worth, my best guess is slightly lower than in 2016, perhaps
between 300k and 350k. That’s the type of stocking period that wouldn’t surprise the market
(and the market doesn’t like surprises), so ifit comes in higher or lower than that it might have
an effect on price. However the most likely price driver isn’t on stocks moving up, it’s whether
they move back down again afterwards.
Now for some notes on a couple of our basket stocks:
Excelsior Mining (MIN.to): This in-situ project stock made the best move of the week on the
back of the news (8) it has graduated from the TSXV Venture exchange to the main board,
thereby becoming a Dot Tee Oh. This brings in new buyers in a near-automatic manner, from
institutions now allowed to allocate fund capital that was barred from .V issues, to index
tracking stocks that need to hold MIN.to in the right quantity in order to copy the moves of the
TSX index (and others).
The result was double the normal amount of trading volume for this stock from the day of the
announcement, January 31st, until the end of the week.

,
Cordoba Minerals (CDB.v): Athough we do the main stuff on CDB above, after writing up
the previous note on MIN.to I thought it worth mentioning that this desk has reliable intel that
Cordoba (CDB.v) is also currently doing to necessary paperwork in order to graduate to the big
board, leave behind its Dot Vee ticker and become a fully fledged, Dot Tee Oh.
Revelo Resources (RVL.v): Our tiniest capper on the list has been out of favour so far this
year, but Thursday (518k traded) and Friday (200k traded) saw a bit of a pulse and the first
time RVL has traded 100k+ on two consecutive days this year. The spike in volume, plus the
way in which the main chunk traded under the
prevailing market price, suggests to me a changing
of hands with one backer’s patience running out and
a new or existing holder willing to buy them out.
As a reminder, RVL is a small market capper with big
land holdings, nearly all in Chile. It was formed a
little over two years ago from the merging of Iron
Creek Capital and Polar Star, with Iron Creek’s chief
geologist and CEO Tim Beale chosen to head up the
new entity. It has plenty of deep pockets as backers,
including Eurasian Minerals (EMX). So far it’s been
long on promise and short on results, it costs a lot to
keep those thousands of hectares in good standing and it’s lost JV partners too, which adds to
holding costs. Its combo of low market cap with copper as main target may appeal to those of
you looking for a risky spec in the sub-sector, but I personally prefer to stay on the outside and
watch until such time as they or their partners make a significant discovery.
The Producer Basket
After 5 weeks of 2017, the Producer Basket shows a gain of 18.27% to level stakes.
company ticker price 1/1/17 Shares out Mkt Cap (Bn) current pps gain/loss%
1 Barrick ABX 15.98 1165.33 22.06 18.93 18.5%
2 Newmont NEM 34.07 530.595 19.50 36.76 7.9%
3 Goldcorp GG 13.60 832.381 13.55 16.28 19.7%
4 Franco Nevada FNV 59.76 178.01 11.93 67.00 12.1%
5 Agnico Eagle AEM 42.00 223.475 11.00 49.21 17.2%
6 Ang/Ashanti AU 10.51 405.27 5.28 13.03 24.0%
7 Kinross Gold KGC 3.11 1245 4.88 3.92 26.0%
8 Royal Gold RGLD 63.35 65.281 4.57 69.94 10.4%
9 Buenaventura BVN 11.28 254.19 3.48 13.70 21.5%
10 Sibanye Gold SBGL 7.06 228.71 2.03 8.86 25.5%
Prices in U$, NYSE or NASDAQ tickers Portfolio avg 18.27%
Nine winners on the week, RGLD was the only The 2017 Producer Basket: Weekly performance and
loser (a little surprisingly down 0.8%, though comparative to GDX control
20%
it may have been a hangover from the
previous week’s strong performance) and the basket
15% gdx control
best gains were returned by AngloGold
Ashanti (AU) and Kinross (KGC), both up an
10%
impressive 8.6%. The general story was one
of boats rising on the Precious Metals waxing
5%
tide. Our basket still has its nose ahead of the
source: Google, IKN calcs
GDX by just over a percentage point, but
0%
there’s really nothing much in it so far.
Jan1st 8th 15th 22nd 29th feb5th
14

,
Barrick (ABX): This is one that could go in ‘Regional Politics’ below, but its ramifications are
such that the company may eventualy be materially affected so I’ll put it here. Last week
Argentina’s InfoBae newspaper reported (9) that Barrick Argentina was being sued by the
regional manager it employed between January 2013 and March 2014. The manager, one
Raman Autar, was headhunted in 2013 to lead its Argentina operations including Pascua Lama
and was ratified in the post after his initial six month trial period, but in his suit against the
company he says that after visiting Veladero he questioned the quality of mining practice at the
mine. His position was opposed and after a time he was fired because of, he says, his
opposition to the way the mine was being run. As we all know, just a few months after he was
fired Veladero suffereed a large contmaination event in which cyanide solution was spilled and
reached the local water supply.
Mr Autar says that in his report after visiting Veladero he identified five weaknesses
• Poor condition of plant and equipment
• The fatigue caused by working and driving at high altitude with only short time given to
adaptation
• Unacceptable and dangerous levels of dust
• The mine operated below general standard of work safety
• The intentional elimination and non-functioning of extraction and dust contention
systems
He says in his suit that his findings caused problems with his immediate superiors inside
Barrick. After a while he was considered a troublemaker due to this, and he was eventually let
go. He’s suing the company for U$10.5m and of course Barrick is vigorously opposing the
lawsuit and stated for the record that Mr. Autar’s dismissal was unrelated to his findings at
Veladero. Which of couse they must say, because if not they will tacitly admit that they knew
beforehand about unsafe work practices at Veladero and could have prevented the
environmental accident. And if they admit that, they will be deeply in the doo-doo in Argentina,
Lama and all.
Regional politics
The Philippines: Mine closures may be more difficult than imagined
Yes I know it’s not a part of LatAm, but as it’s the big political risk story for miners this week
and it potentially affects (though that now unlikely, see above) our Top Pick B2Gold (BTO.to)
(BTG), it’s worth a few lines here.
We know that as of last Thursday, Environment Secretary Gina Lopez and her DENR
department announced the rescinding of licences for 23 mining companies in The Philippines,
plus the suspension of licences for another five (including OceanaGold at Didipio). We also
know that the mining companies involved are strongly opposed to this ruling and are already
appealing to the Ministry of the Economy and other outlets. But what is now apparent is that
the closure orders are likely to be unconstitutional according to the Constitution of The
Philippines, as the companies were denied due process during the audit and the government
has refused to publish details of its findings.
According to national senator Francis Escudero, violations of due process mean that all the
affected companies should at least be able to remain open until their cases are heard by the
judiciary. Here are quotes from this report (10)
“It appears that the mining companies were not given a copy of the audit findings so
that they could respond, correct, dispute or come up with remedies if necessary,”.
Escudero said this is all part of due process, a right which is guaranteed under the
Philippine Constitution. “Due process dictates nothing less. It seems that the DENR fell
short in this aspect if what the mining firms are saying are true,” Escudero said.
15

,
We are of course talking about The Philippines which is turning into a quasi-dictatorship under
the rule of new President Duterte. If he decides to close down the mines tomorrow morning
that’s probably going to happen, he’ll ride roughshod over the law in the same way he’s been
doing with extra-judicial killings of drug pushers, but assuming some sort of order is installed,
it’s going to be much tougher to stop the mining from happening at the apparently affected
operations.
Peru: Ex-President Toledo in the bribery line of fire
Since the story changed from rumour to fact late last year, the unravelling of the Odebrecht
bribery network has promised to upset plenty of political apple carts in LatAm and one of the
countries pressing hardest to get to the bottom of its branch of the mess has been Peru (so far
at least). Last week we had a major development in the case, when the public prosecutor
announced (11) it had evidence to show that ex-President Alejandro Toledo had, via the
accounts of a close friend and business partner, received bribes of up to U$20m in total (with
U$11m of that money already confirmed via a paper trail which leads from Odebrecht to a bank
account in London UK) in exchange for the awarding of the contract to build the Peru section of
the Interoceanic Highway that joins the Pacific coast of Peru to Brazil and the eventual Atlantic
coast. The announcement caused exactly the type of storm you’d imagine, because the public
prosecutor wouldn’t make this type of call on spec, accusing a President of bribery is no small
deal in a country with the 1990’s history of Peru. Also, as Toledo is currently out of the country,
we don’t yet know whether he’ll show his face, get arrested when he does, all sorts of
variables.
What’s also interesting is that simple math indicates we haven’t seen the last of the accusations
against high-ranking Peru politicos. Odebrecht has admitted paying U$29m in bribes in Peru,
the first two cases add up to a maximum of U$26m and so far at least, they only cover the
Toledo and Garcia periods of office. Odebrecht has said that some of the bribes were paid
during the Humala presidency and to add to the mix, O Globo of Brazil has already stated some
U$3.5m was paid to ex-President Humala himself. And please be clear that Peru may be one of
the more advanced investigations into Odebrecht bribery, but it’s by far the only one. In total,
Odebrecht has admitted giving bribes for contracts in 12 LatAm countries for a total of U$788m.
Only this weekend, President Rafael Correa of Ecuador, out campaigning for his party candidate
Lenin Moreno (see below) has hinted that Odebrecht may become a hot campaign issue in the
week to come in Ecuador. The fun is just beginning.
Peru’s new Vice-Minister of Mining
We noted a change in Peru’s Ministry of Energy and Mining last week on the blog (12), with ex-
Vice Minister of Mining Guillermo Shinno out and new Vice Minister of Mining Ricardo Labó in.
We’re unlikely to see any substantive change in mining policy under the new guy, we’re seeing
the replacement of one orthodox mining person with another, but it’s interesting to see a long-
standing government official such as Shinno “be resigned” right at the time the whole
Odebrecht scandal is unfolding. These facts may or may not be connected.
Mexico, Canada, NAFTA, love and mining
President Trump had already rescinded TPP in The USA, last week (among many other issues
that are keeping the news channels full of conversation material) as expected he turned his
attention to NAFTA, the agreement covering Canada, The USA and Mexico, and said he wants
to re-negotiate it as soon as possible (and wants to add an F for “Fair” to the acronym to, bless
him). On the back of Trump’s new plans, Canada was very quick to tell Mexico that it wasn’t
going to be double-teaming with them against the new US position and that it would be looking
out for number one (13):
Canada will focus on preserving its U.S. trade ties during talks to renegotiate NAFTA
and may not be able to help Mexico avoid being targeted by the Trump administration,
Canadian government sources say.
"We love our Mexican friends. But our national interests come first and the friendship
16

,
comes second," a source said on the sidelines of a cabinet retreat in Calgary, Alberta.
"The two are not mutually exclusive," the source added.
Which sounds great, but it’s not as if Mexico is entirely toothless in any newly negotiated
NAFTA (or NAFFTA) and as this op-ed in Mexico’s El Universo points out (14), such re-
negotiation may open a veritable can of worms for the Canadian mining industry in Mexico.
Here’s a translation of an excerpt from the article:
“Even if the objective of NAFTA was to create one of the largest free trade zones in the
world and establish a base for strong economic growth and prosperity for Canada, The
USA and Mexico, the reality is that this prosperity has only been for a select few. It’s
clear that the bonanza and benefits of the mining industry have not been for
communities and towns where the mines are located and that the extractive economic
model has created different forms of wealth gaps and increased social conflicts even
more, in an atmosphere that was already complicated.
“Due to this, it is imperative to retract the preferential deals offered to the mining
industry (by Mexico) and foment new and alternative economic activities.”
...
“In Mexico, we also love our Canadian friends, but we reject the poor practices of its
mining companies. Our national interests are first and friendship comes after.”
Be careful what you wish for up there, people.
Argentina: The Federal Mining Agreement in the spotlight
Last week, much to the dismay of the Macri government and the secretary of mining Daniel
Meilan in charge of the initiative, a draft copy of the Federal Mining Agreement (FMA was
leaked and published on Argentina’s trade paper site, Mining Press (15). That link will take you
to a PDF of the whole thing (stamped confidential on each of its 18 pages) so peruse it at you
own leisure. What I can tell you after reading the draft a couple of times is that the document is
a poor sort of agreement in real terms. What they’ve clearly tried to do is get an agreement to
which even the most reactionary and traditionally anti-mining provinces of Argentina such as
Mendoza, Rio Negro, Tierra del Fuego and Chubut can agree to. Which is fine, as above all the
national government wants a piece of paper signed by all 23 provinces of the country which
they can then show to the world (the plan is to have it signed before PDAC and show it there)
and say, “Hey everybody! Argentina is now one big flat level playing field! We all agree on
mining !”.
Which is, of course, bullshit. The lax wording of the document may indeed allow places like
Chubut to sign on (though it’s still not a certainty), but when they try the next stage of taking
this Federal Mining Agreement to the national Congress and designing laws that will govern
mining over the whole country, the reaction of any province that doesn’t like any of the clauses
the nation tries to shove down its throat will be predictable and obvious, “We didn’t agree to
that!”, and the whole FMA is shown to be the worthless document that it is. Style over
substance, it’s the Argentine way.
Ecuador: Two weeks to go for the Presidential election
Tonight, Sunday 7pm local time, the eight official candidates for President of Ecuador line up in
what’s billed as a crucial live TV debate. And that may turn out to be true, because according to
the latest polls the government (Correa) backed candidate Lenin Moreno is leading with
between 35% and 37% of voter intention among those decides, with second placed Guillermo
Lasso on around 23% (others 15% or less). To win in the first round, Moreno must get either
50%+1 vote (not going to happen) or poll at least 40% and have at least 10% on the second
place candidate. That’s more likely but by no means certain, but what might help the
government cause is the number of undecided voters, said to be still around 35% according to
the pollsters with just two weeks to go before the vote. Hence the debate tonight being called
“crucial”.
17

,
If Moreno wins in round one, expect the same direction to Ecuador as we have seen in the
Correa years, for good or evil (personally I think for good, he’s been a fine President and will
retire with honours on May 24th). But if Moreno doesn’t make the finish line and there’s a round
two run off between him and (most likely) Lasso, all bets are off and alliances and pacts could
make it it a very tight thing.
Peru gets more copper production
An interesting development on a delayed project. On January 30th China’s Chinalco (16), owners
of the Toromocho copper mine in Central Peru, announced it had agreed to fund its local
subsidiary to the tune of U$1.3Bn in order to expand its operations. This expansion was
originally planned to happen straight after the announcement of commercial production at the
mine, but was put on ice in late 2015 due to low metals prices and the uncertain outlook for
copper. Clearly the Chinese owners are feeling more confident about the future and the
expansion is now green for go, with throughput set to move from 120,000 tonnes per day (tpd)
to 170,000 tpd once the upgrade is completed in 2018.
Chile: The La Escondida pay negotiation update
We’ve been through the first phases of the likely scenario, we’re now at the point in my
playbook (of two weeks ago in IKN401) where workers have voted to strike and the last-ditch
negotiation period comes into operation. That’s where we are now as Thursday BHP, the
operators of La Escondida, (as expected) used what amounts to the “last ditch” clause in the
Chilean labour laws (17) to delay the strike for one week (it was set to begin tomorrow, we
now wait eight days). We now have the period in which the two sides try to thrash out a deal
acceptable to workers, who then have the chance to vote and avoid industrial action. It
wouldn’t surprise me.
Market Watching
Still fishing for some Eros Resources (ERC.v)
It spent the week at 19c and volume was thin so I didn’t get my 18c entry point, but that
doesn’t mean I’m going to stop trying. This ERC.v still offers great potential value and I want
some shares at the right price, so to keep it onboth my and your mind here’s the updated
chart of marketable securities (plus cash) we’ve featured on previous occasions, as per this
weekend:
Marketable securities held by ERC.v
ticker company shares held* current pps value C$m
HRT.to Harte Gold 2.12 0.380 0.81
SKE.v Skeena 48.69 0.090 4.38
SBW.v Strongbow Expl 1.60 0.150 0.24
TIM.v Toachi 1.00 0.400 0.40
TKU.v Tarku 3.30 0.050 0.17
Canamex debent. 0.25
Other 0.60
Subtotal C$m 6.84
approx ERC cash C$m 4.40
total liquid assets C$m 11.24
A lot of its underlying valuation rests with Skeena (SKE.v) obviously, and I know both SKE and
the guys at ERC like the chances of its SNIP property, but we’ve also seen valuations rise in the
other company stocks held by ERC, it’s looking like a neat and interesting little portfolio of
exploration risk shots. This combo of marketable securities and cash compares to the $7.95m
market cap of ERC this weekend, a 41.3% difference. Or to put it the other way again, “fair
value” on shares would be 26.9c instead of this weekend’s 19c.
With patience and on a soft day for juniors, I should be able to get my price. When I do, ERC
18

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will join the Stocks to Follow list.
Minera IRL begins trading in Canada
As followed on the blog last week Minera IRL received approval from the CSE market and began
trading on Friday. The dedicated page to IRL on the CSE website (18) offers plenty of
information on trading as well as information of regulatory filings and is pretty good, but what
really matters is the following:
• The most basic fact is the most important: Minera IRL is back trading in Canada, which
means another promise made by CEO Diego Benavides has been fulfilled.
• Trading was reasonably good for a first day, with 638,200 shares trade don the first
day.
• The stock ended the day at CAD$0.185. That compared with a Forex-adjusted close in
Lima trading on Thursday of CAD$0.15, the day before Canada trading began. In other
words, IRL was up a de facto 23.3% on the day. It’s also up 61.1% from the last time
it traded in Canada, at 7c in 2015.
All the main things are good, now for other matters arising. I’ve received plenty of mails on the
resumption of Canadian trading in IRL with subject matter split roughly into two. For people
congratulating me on this latest development, you’re wrong. I’m not the person you should
thank as my role in this extended and sorry story (with an increasingly happy ending) has been
minor. The person to thank is Diego Benavides, who put up an impressive fight against the
odds to stop the waves of white collar criminals from stealing IRL’s assets and keeping them in
the hands of us, the shareholders. It’s also interesting to note that if the last board of directors
hadn’t been ousted at the last AGM in late November, Messrs Weyrauch, Bavin, Schafer et al
would have been given the opportunity to emit tens of millions of shares in December to
whoever they wanted at 7c Canadian apiece. Seeing MIRL trade at 18.5c on its first day out of
the Canadian deep-freeze really puts that scam into perspective. Sure glad that one was
stopped in its tracks.
The other main subject mentioned in mails last week was the difficulty some of you are having
in getting access to the CSE exchange, either to purchase shares on the open market or to sell
your positions (I’d prefer you do the former, I totally understand if you want to do the latter,
it’s been a long time and I’m just glad you have the opportunity). Some of you have Canadian
bought shares with brokerages that don’t trade on the CSE (true for me, I have some IRL with
Interactive Brokers and they don’t talk with the CSE). The main query is whether IRL plans to
eventually move to the TSXV and the answer to that one is a resounding yes, IRL would like to
move over to the TSXV as soon as possible, it’s simply a case of convenience so far, it was
easier to get going again via the CSE. And while on the subject, as mentioned in last week’s
NR IRL is busy trying to get re-listed on the London AIM (a subject close to many a reader’s
heart here, I know).
Last week saw another big step forward in the re-birth of Minera IRL and although the company
has made massive strides in the two months (and a bit) since CEO Benavides took over, there’s
still a lot of work to be done. More good news should be forthcoming soon, I know you
shareholders as a collective have been incredibly patience and supportive of the right side in
this sorry affair, but a little more patience will be needed before the company is trading
smoothly and completely over all platforms.
And now for the wonderful thing: We can now talk about potential share price catalysts for IRL
(after a year and a half, slightly surreal) and as far as I can see, there are two main items to
consider:
1) The results of the drilling program at Minapampa, conducted last year. These were
partially published in November by the previous board, just before the AGM as they
tried desperately to hang onto their undeserved positions. We have 5,200m to report
and from them, an updated overall resource for the Ollachea mine. Considering the
19

,
initial results we’ve seen plus the pattern of the drill program (ordered by Cofide as a
part of their conditions to fund the capex), I would not be surprised to see a substantial
increase of resources at Ollachea, over 1.5m oz gold total is not out of the question.
2) The funding package. The ball is in the court of Cofide and I am aware that initial
negotiations are already underway and the feeling between the two sides is friendly
and positive. The eventual closure of the deal to fund the capex at Ollachea, as well as
the repayment of the initial $70m bridge loan, will be a key moment in the fortunes of
the company and when the market sees that IRL has indeed got the cash it requires to
move forward and build this long-overdue project, its shares will certainly re-rate higher
(and the only question is by how much, that’s going to be dependent on the terms of
the deal).
Therefore and aside from the new trading in Canada, the eventual transfer to the TSXV and the
re-listing in London, all of which set to create its own news, there are fundamental reasons to
follow IRL closely in the weeks ahead. Chances are that news on both points 1) and 2) above
are closer than the vast majority of market participants realize.
Conclusion
IKN403 is done, we end with bullet points:
• There are potential sales on my list, in Belo Sun (BSX.to) Wesdome (WDO.to) and the
partial remnant in Starcore (SAM.to), but each of those needs to see the right price.
• I’d like to be more certain about my positive outlook on gold. I’d like to be one of those
strident commentators who can confidently predict U$5,000/oz by next Friday (they
never seem to be short of an audience either, do they?). Hell, I’d like a lot of things in
fact, a break in this damned El Niño-esque weather down this way would be nice for a
start.
• Watch out for action in Cordoba Minerals (CDB.v) on Tuesday, the expiry date for those
$1.50 warrants. Could be interesting.
• Expect a write-up on Lara (LRA.v) next weekend, what with my meeting with CEO
Thompson tomorrow. It’s been a while since I caught up with both him and the
company. Overdue coverage.
• A shorter edition this week, done in 20 pages (or 24 with the footnotes below). Not a
bad thing.
I thank you in advance for any feedback. Our Top Pick stocks are Regulus Resources (REG.v)
and B2Gold (BTG) (BTO.to). Flash updates will be sent if required by events.
I wish you good trading fortune, ladies and gentlemen. Namaste.
Mark
20

,
Footnotes, appendices, references, disclaimer
(1) http://www.excellonresources.com/news/details/index.php?&content_id=159
(2) http://www.excellonresources.com/news/details/index.php?&content_id=160
(3) http://finance.yahoo.com/news/belo-sun-receives-construction-licence-173541814.html
(4) http://incakolanews.blogspot.pe/2017/02/cordoba-minerals-cdbv-and-those-warrants.html
(5) https://www.juniorminingnetwork.com/junior-miner-news/press-releases/555-tsx/r/28835-red-eagle-mining-
announces-10-000-000-bought-deal-financing.html
(6) http://www.marketwired.com/press-release/red-eagle-mining-announces-increase-previously-announced-bought-
deal-financing-15000000-tsx-r-2192648.htm
(7) https://www.df.cl/noticias/empresas/mineria/exploracion-minera-cae-28-la-mitad-de-los-proyectos-de-firmas-
medianas/2017-01-30/214556.html
(8) http://www.marketwatch.com/story/excelsior-mining-to-commence-trading-on-the-toronto-stock-exchange-2017-01-
31-9160226
(9) http://www.miningpress.com/nota/305215/barrick-replica-a-infobae-por-gerente-despedido-y-derrame
(10) http://www.philstar.com/business/2017/02/05/1669074/escudero-urges-due-process-mines-shutdown
(11) http://elcomercio.pe/politica/justicia/soborno-us20-mlls-alejandro-toledo-habria-recibido-11-noticia-
1965770?ref=grid_home&ft=bajada
(12)http://incakolanews.blogspot.pe/2017/02/peru-gets-new-mining-minister.html
(13) http://www.reuters.com/article/us-usa-nafta-canada-mexico-idUSKBN1582MV
(14) http://www.eluniversal.com.mx/blogs/fundar/2017/02/3/y-nosotrosrechazamos-las-pesimas-practicas-de-las-
empresas-mineras
(15) http://www.miningpress.com/documento/2222/acuerdo-federal-minero-de-argentina-el-borrador-definitivo
(16) http://www.portalminero.com/pages/viewpage.action?pageId=124487505
(17) http://www.miningpress.com/nota/305208/bhp-juega-ultima-carta-en-escondida
(18) http://thecse.com/en/listings/mining/minera-irl-limited
Stocks To Follow Closed Positions 2016
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-ago-15 C$0.25 38.9% okay trade, sold on pol risk
McEwen Mining MUX jan16 U$1.09 25-ene-15 U$1.20 10.1% sold due to lack of value
Lake Shore Gold LSG.to feb-16 C$1.10 07-abr-15 C$1.69 53.6% bot out, sold early in process
Atacama Pacific ATM.v feb-16 C$0.19 26-abr-15 C$0.40 110.5% sold for a double on big pop
New Gold NGD feb-16 U$2.06 24-ene-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-ene-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-abr-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-abr-16 C$0.95 280.0% Trade closed on time
HudBay Min. HBM aug16 U$4.98 09-jun-16 U$4.80 3.6% short trade covered, no big deal
Miranda Gold MAD.v oct-16 C$0.125 03-jul-16 C$0.10 -20.0% tiny spec trade, didn't work
Avino G & S ASM nov-16 U$2.00 21-oct-16 U$1.40 -30.0% Abandon trade on bad bot deal
21

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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
22

,
Colossus Min. CSI.to aug'13 C$0.72 24-jul-13 C$0.79 9.7% closed thru nerves on future
Pretium Res PVG.to aug'13 C$8.20 11-jun-13 C$10.14 23.7% closed to raise cash
Bear Creek BCM.v sep'13 C$2.06 30-may-13 C$2.20 6.8% sold on pol risk decision
MAG Silver MVG oct'13 U$7.00 12-sep-13 U$5.62 19.6% near-term short
Gold Res Corp GORO oct'13 U$9.52 03-may-13 U$4.98 47.7% short tgt made, covered
AQM Copper AQM.v oct'13 C$0.31 16-oct-11 C$0.125 -59.7% closed failed trade
First Majestic AG nov'13 U$11.51 07-nov-13 U$10.50 8.8% v near term short, closed
Fortuna Silver FSM nov'13 U$4.00 07-nov-13 U$3.68 8.0% v near term short, closed
Primero PPP nov'13 U$5.70 07-nov-13 U$5.75 -0.9% v near term short, closed
Starcore Intl SAM.to nov'13 C$0.235 08-sep-13 C$0.17 -27.7% ST trade didn't work, sm loss
B2Gold BTO.to dec'13 C$2.22 28-nov-12 C$2.16 -2.7% closed ST trade to raise cash
Stocks To Follow Closed Positions, 2012
Closed in 2012 closed close PPS
Soltoro SOL.v jan'12 C$0.87 07-nov-11 C$0.94 8.0% cash moved to BCM.v
Gold-Ore Res GOZ.to feb'12 C$0.84 13-oct-10 C$0.98 16.7% trade closed on ELG.v offer
Minefinders MFN feb'12 U$11.68 17-nov-11 U$14.80 26.7% target made, trade closed
Iron Creek IRN.v mar'12 C$0.58 26-sep-10 C$0.31 -46.6% time up on small bad trade
U.S. Silver USA.to apr'12 C$2.18 15-mar-12 C$1.86 -14.7% ST trade no good, cut loss
Augusta Res. AZC.to may'12 C$3.10 29-jan-12 C$2.07 -33.2% bad mkt, bad trade cut loss
Bellhaven BHV.v may'12 C$0.50 22-sep-10 C$0.28 -44.0% new mgmt not impressive
Zincore Metals ZNC.to may'12 C$0.325 29-jul-11 C$0.17 -47.7% bad mkt, bad trade cut loss
Soltoro SOL.v may'12 C$0.70 18-mar-11 C$0.41 -41.4% bad mkt, bad trade cut loss
U.S. Silver USA.to aug'12 C$1.78 27-jul-12 C$1.36 -23.6% fail ST trade close pre split
Estrella Gold EST.v aug'12 C$0.91 27-mar-11 C$0.14 -84.6% Closed on port realignment
Fortuna Silver FVI.to sep'12 C$1.07 03-may-09 C$5.32 397.2% sell call $6.17/ Mar25
Strait Minerals SRD.v oct'12 C$0.125 09-dec-11 C$0.12 -4.0% closing coverage til FY13
Sunward Res SWD.to oct'12 C$1.47 13-mar-11 C$1.21 -17.7% sold, took loss
Gold Res Corp GORO oct'12 U$21.47 09-sep-12 U$17.40 19.0% Short trade closed
Yellowhead Min. YMI.to nov'12 C$1.00 01-apr-12 C$0.63 -37.0% sold, took loss
Primero Mining PPP nov'12 U$7.26 07-oct-12 U$6.73 7.3% Short trade closed
Bear Creek Min. BCM.v nov'12 C$3.38 07-nov-11 C$3.72 10.1% Took small profit
Vena Resources VEM.to dec'12 C$0.70 31-may-09 C$0.18 -74.3% Failed trade (caps F)
Galway Res GWY.v dec'12 C$2.19 24-nov-12 C$2.30 5.0% closed good ST arb trade
Stocks To Follow Closed Positions, 2011
Closed in 2011 closed close PPS
Sunward Res SWD.v jan'11 C$1.05 21-nov-10 C$1.63 55.2% target made, trade closed
Serengeti Res SIR.v mar'11 C$0.245 05-dec-10 C$0.285 16.3% sold pre-tgt, ST trade fail
Fronteer Gold FRG apr'11 U$2.37 03-may-09 U$15.24 543.0% buyout, trade closed
Minefinders MFN apr'11 U$9.09 07-nov-10 U$16.89 85.8% target made, trade closed
Metalline Min. MMG may'11 U$1.04 26-jan-11 U$0.89 -14.4% exit, resource disappointed
Peregrine Met PGM.to jul'11 C$0.87 06-mar-11 C$2.60 198.9% buyout offer, closed
Dynasty Metals DMM.to jul'11 C$4.20 03-may-09 C$2.85 -32.1% Sold. Fail. Move on.
Aura Silver AUU.v aug'11 C$0.22 13-oct-10 C$0.16 -36.4% Bad pick. Take loss
U.S. Silver USA.v aug'11 C$0.52 26-jan-11 C$0.71 36.5% closed to make room
B2Gold Corp BTO.to sep'11 C$2.80 12-may-11 C$4.27 52.5% target made, trade closed
Bear Creek Min. BCM.v sep'11 C$3.80 27-may-11 C$4.17 9.7% macro sell call victim
Minefinders MFN sep'11 U$14.70 10-aug-11 U$15.15 3.1% macro sell call victim
Great Panther GPR.to sep'11 C$3.03 22-aug-11 C$2.64 -12.9% macro sell call victim
Fortuna Silver FVI.to sep'11 C$1.07 03-may-09 C$5.36 400.9% sold 20%, macro sell call
Focus Ventures FCV.v nov'11 C$0.40 20-apr-10 C$0.20 -50.0% cut losses, bad trade
Regulus Res. REG.v dec'11 C$1.17 14-aug-11 C$0.52 -55.6% cut on news of poor 43-101
2009 and 2010 closed positions in appendices below
23

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