IKN #600Premium

The IKN Weekly
Week 600, November 22nd 2020
Contents
This Week: Trade heads-up, In today’s edition, More Covid-19 vaccines and stimuli.
Fundamental Analysis: The bullish case for copper, Copper Mountain (CMMC.to) is a call
option on copper.
Stocks to Follow: Cartier Resources (ECR.v), Excelsior Mining (MIN.to), Trilogy Metals (TMQ),
Minera Alamos (MAI.v), Rio2 Ltd (RIO.v), Kuya Silver (KUYA.cse), Minera IRL (MIRL.cse),
Norsemont Mining (NOM.cse), Pucara Gold (TORO.v), Tinka Resources (TK.v).
Copper Basket: Overview, Capstone Mining (CS.to), Atico Mining (ATY.v).
Producer Basket: Overview, Buenaventura (BVN).
Tiny Dogs: Overview, Wolfden Resources (WLF.v).
Regional Politics: Argentina: The gloves are now off in Chubut, Another scalp for the Chilean
mining unions, People Power, Peru’s political crisis blows over, Updating the anti-mine fronts in
Ecuador.
Market Watching: Aurelius (AUL.v) gets whacked, On the bargain hunt with Wesdome Gold
(WDO.to).
I remind subscribers that no part of this newsletter can be copied, reproduced or
given to any third party without the express permission of the author.
This Week
“
Trade heads-up
In order to make room for the planned purchase of Copper Mountain (CMMC.to), I need to
raise funds and also make space in the Stocks to Follow list. As a result, I am selling my
position in Cartier Resources (ECR.v) and will explain exactly how in ‘Stocks to Follow’, below.
In today’s edition
 Even someone as stubborn as your author cannot hold out forever, today I go back to
bullish on copper because, quite frankly, it’s getting a little silly not to be. After adding
to the position in Excelsior Mining (MIN.to) last week and watching copper spot prices
lift again on macro news, today’s main Fundies section is dedicated to the metal…
 …as well as the new planned trade, that of Copper Mountain (CMMC.to). It’s time to
add copper length to the portfolio and to do so, I’ve chosen this small scale producer
for the leverage it should provide, even after its recent price run.
 The price drop in Wesdome Gold (WDO.to) has been sharp, recent and mostly
undeserved. We return to this previous successful trade vehicle in ‘Market Watching’
today and consider its attraction at its current C$10 price range, the window of
opportunity looks open.
 The sale of my Tinka Resources (TK.v) shares looks to be in the near future, we prime
the trade in ‘Stocks to Follow’.
1

 Peru calms, Chile takes over the city centre protesting, then Guatemala takes it up
another level again. It’s a season of social unrest in LatAm, don’t be shocked to see
more. Meanwhile, Ecuador is still in its pre-election campaign quiet period, but that’s
about to come to a stop for the mining sector as there are all sorts of anti-mining
initiatives in the pipeline. Avoid the country.
More Covid-19 vaccines and stimuli
“The upper class keeps all of the money, pays none of the taxes.
The middle class pays all of the taxes, does all of the work.
The poor are there just to scare the s__t out of the
middle class, keep 'em showin' up at those jobs.”
George Carlin, Jammin’ In New York, 1989
That superlative George Carlin quote gets an airing because the financial powers are suddenly
worried about their middle class. It also reminds us the current economic situation is nothing
new and inequality was not invented by millennials, but that’s another story so let’s K.I.S.S. and
start with gold, via a segment of last week’s script:
“That liquidity needs mopping up and until the recession lifts, gold will remain
popular in its safe haven role. As the GLD chart below shows, inventories did
indeed drop 26 metric tonnes (mt) on the week to stand at 1234.32mt this
weekend, but that’s a drop in the bucket compared to 2020 gains…”
Gold continued to perform well last week, though from the mails received you would not have
thought so. More excellent vaccine results cheered the markets early week, risk went on and
nother 14 metric tonnes left GLD, but that includes the 3mt add on Friday and by the time, the
chop on equities had stopped. Notably, the GLD inventory/price ratio held up well, the
fluctuations in inventory have the air of insto traders more than gold holders. In turn, that
suggests the world market is paying closer attention to Wall St.’s attitude toward gold at the
moment and that, temporarily at least, GLD is the price discovery mechanism for gold bullion.
The tail wags the dog, as it were.
GLD gold holdings, 2020 to date (metric tonnes)
1300
1250
1200
1150
1100
1050
1000
950
900
850
800
It may have taken a couple of inconvenient weeks longer than this desk imagined, but market
direction under the nascent Biden admin is beginning to show and POTUS45 can now play golf
for two months solid, as far as the market is concerned. In the real world the US (and therefore
world) economy is still on artificial support, which suits an incoming Dem admin just fine. We
also saw a U-turn on the next round of stimulus cheques and Keynesian solutions* because it
also occurs to the outgoing team that a full scale market crash would not be a good idea. This
is 2020, Covid-19 may have several vaccines now but we are still firmly fixed in the macro
world of Whatever It Takes, but these days with a specific add: Whatever It Takes To Keep
Consumers Buying. What’s more, so far at least in Q4. the wholesale debasement of the US
Dollar has happened fairly smoothly despite all financial logic screaming the word
“unsustainable”. We are not at the endgame yet, that can only happen the middle class are
encouraged to tap their ultimate source of wealth and again moves to “unlock the capital” tied
up in its real estate. At that point, and not before, will the house of cards collapse, the moment
2
02/1/2 02/1/21 02/1/22 02/2/1 02/2/11 02/2/12 02/3/2 02/3/21 02/3/22 02/4/1 02/4/11 02/4/12 02/5/1 02/5/11 02/5/12 02/5/13 02/6/01 02/6/02 02/6/03 02/7/01 02/7/02 02/7/03 02/8/9 02/8/91 02/8/92 02/9/8 02/9/81 02/9/82 02/01/8 02/01/81 02/01/82 02/11/7 02/11/71
mt 7.60 GLD: Inventory/Price Ratio, 2020 to date
7.40
7.20
7.00
6.80
6.60
6.40
6.20
6.00
5.80 source: SPDR GLD data
5.60
2/1 21/1 22/1 1/2 11/2 12/2 2/3 21/3 22/3 1/4 11/4 12/4 1/5 11/5 12/5 13/5 01/6 02/6 03/6 01/7 02/7 03/7 9/8 91/8 92/8 8/9 81/9 82/9 8/01 81/01 82/01 7/11 71/11
Source: SPDR data, IKN calcs

of highest wealth transfer from have-nots to haves is all-but certain to occur. Until then, we can
enjoy the steady rise in the price of gold and not worry too much about real dystopia. It is the
time to be bullish, the recent price weakness is set to disappear as the metal re-sets course to
U$2,000/oz next year. In fact, laying the main house calls next to each other…
It is time to be bullish gold stocks
We expect U$2,000/oz gold by mid-2021
…serves as clear perspective. I sometimes set-up a near-term trade, but the preferred outlook
on these pages is medium term and a 12 months
price target is default. The uncertainties that
came with the US election are dissipating,
financial arrows are back pointing toward weak
dollar policies. Those are often gold-friendly, but
that rises to near certain during periods of
negative real interest rates and make for
patterns like we see below, the trend clearly a
friend. We don’t need a dramatic blast off in the
gold price in the months to come, all it needs to
do is follow that channel and that is what your
author now expects, after a bumpy start to the
Biden era.
Nothing wrong with boring.
Fundamental Analysis of Mining Stocks
The bullish case for copper
Though the house bearish stance toward base metals prospects has been weakening recently,
today is the day when we throw in the bearish towel, admit I underestimated China’s
gravitational pull on copper and note that even if I manage to top-tick the metal, it will still
trade over U$3.00/lb if it drops 20c tomorrow morning. Even for a bear that’s a good price and
allows me to walk back the nerves about buying the sector (see part two)
The straw that broke the camel’s back was last week’s trading, when after consolidating at an
already strong U$3.20/lb level, copper shot higher on Friday as its Perfect Storm of influences
reached a head. With a mix of renewed talk of US stimulus plans, the solidification of the
upcoming Biden administration’s plans for “green growth” (power, construction, EVs), plus of
course further evidence (if needed) that Chinese copper demand remains undiminished and a
Plenum that highlighted the need for
more technological advancement in
China. After a couple of slack months of
imports due to scheduled smelter
maintenances, China returned to record
concentrate imports last month and as a
result, Chinese smelter treatment costs
(TC) dropped to multi-year lows (chart
and annotations from Reuters, right).
Demand continues to be red hot for the
red metal in red China. Notably, we also
have the TC benchmark for 2021, which
was recently set at U$58 (and 5.3c/lb
3

refining) by China’s cabal. That’s plenty above today’s rate, due to the fact that the industry
expects TCs to rebound somewhat in 2021 as more concentrate supply reaches China.
At this point, it’s worth stepping back a moment to consider how fast Chinese demand for
copper has rebounded in 2020. At the start of the pandemic, London’s International Wrought
Copper Council (IWCC) dropped its forecast 2020 world refined copper output to 22.9 million
tonnes (mt), from the 23.5mt we saw in 2019. That would have been the first annual drop in
recent history, but by October it was all forgotten and the same body had its forecast was back
up to 23.6mt. Meanwhile, even as the market bakes in extra supply in 2021, with current
forecasts at 24.7mt for 2021, there is no sign in the rally in copper prices stopping.
As for that demand, in the first 10 months of 2019, the IWCC reports (1) Chinese imports of
copper concentrate at 17.92mmt, up 8.3% from the same period in 2019 (which was in itself a
record year). Here’s how Australia’s Roskill put it (2) in August:
The starting point is that China is experiencing a shortage in the raw materials needed
for its smelting and refining industry. Its refined output rose 4.7% to 5Mt in H1 2020
according to official statistics, mainly due to the ramp up of new capacity. Yet imports
of concentrates, the primary raw material feed for smelters, have barely increased this
year due to the impact of COVID-19 on mine output in Peru, Panama and Chile.
Purchases of anode and blister have risen substantially (+19%), but not as much as
Chinese buyers would have liked due to production disruptions in the African copper
belt and temporary closures at South African ports.
At that point in 2020, we saw two months of record refined copper imports into China, which
then dropped back as concentrates began to arrive again. In so many words, China covered a
shortfall in any way it could and we have yet to mention how longer-term data on copper
supply and demand is famously bullish. Most industry watchers are aware of the projected
supply gap starting next year and expected to continue until 2024 (minimum, e.g. Fitch here
(3), other papers online). Once again, Covid-19 had those projections on hold for a while but
we need to factor in the likelihood of higher copper prices from classic market scarcity.
Fitch Solutions expects the copper market deficit to ease from an estimated 416,000
tonnes in 2019 to 299,000 tonnes in 2020 before widening again from 2022, according
to a mid-September report. The analytics provider forecast a shortfall of 489,000
tonnes in 2024, rising to 510,000 tonnes in 2027.
Even more impressive when one considers that even before Covid-19 at the end of last year,
the market was still debating whether copper would be in a slight overall surplus or deficit in
2020. China has bought all the copper, keeps coming back for more and the above scenario,
ladies and gentlemen, is the move I totally missed this year. My mistake was to assume that
Chinese infrastructure build-out would eventually back up as the world recession affected its
home economy. That was silly, it turns out China bought all that copper for its own internal
economy and demand would only get stronger as the rest of the world came out of its virus
lockdown. It is time to rectify my mistake (and make some money).
4

The price chart for copper also looks primed for higher prices. This is why I am buying Copper
Mountain next week.
Copper Mountain (CMMC.to) is a call option on copper (in CAD$)
Having been forced into becoming a copper bull, action is now required. To date, The IKN
Weekly has kept copper exposure via Exclesior (MIN.to) and Trilogy (TMQ) so its not barren,
but even after my addition in MIN.to last week the personal portfolio is light on copper
exposure. This needs addressing and recent editions of the Weekly have made mention of the
value offered by Copper Mountain (CMMC.to), a company that was for a long time the object of
house criticism due to its misfiring operations. Today we run the numbers on CMMC, as its
combination of steady state production and higher-tier costs provide the right sort of leverage
to copper the metal as it moves firmly into the U$3.00+/lb price bracket.
Company overview
Today’s piece is not CMMC101, as one of the advantages of this company and trade is that it’s
well known to the market. CMMC has been a go-to ticker for copper speculation for many years
and for most of them has disappointed its shareholders. As such, today we overview the basics,
then add relevant and recent corporate news before moving on swiftly to the main event.
Copper Mountain’s principal asset is the 75% owned Copper Mountain mine in BC, with Japan’s
Mitsubishi the minority owner (and destination for the concentrate). Alongside the main asset,
CMMC has the New Ingerbelle property that has recently given good exploration results and
looks to be the life extension of the mine. Finally, through M&a a couple of years ago CMMC
has an early stage Australian project called Eva. The
company is finally moving on that, as seen by the 220 CMMC.to: Shares Out
200
bought deal earlier this month (4), priced at $1.15
180
with funds destined for Eva exploration. As we 160
140
assume the 15% overallotment facility will be fully
120
filled, this adds 15m shares to the CMMC count and 100
80
we estimate shares out at 207.3m at end 2020. The
60
apparent corporate decision to division the company 40
20
and budget only new funds to Eva in Australia makes
0
sense and keeps Canadian operations clean. And that
is all the company overview you get on CMMC for
5
71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 tse02q4
source: company filings
serahs
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more non-number information the latest corporate presentation is here (5) and well worth half
an hour of your time.
CMMC by the numbers
Intro done, we get to the reason for today’s note. CMMC is attractive today because it is a
reliable copper producer, therefore we focus on the prize and to begin, CMMC operations
starting with basic metal production. This is the main chart, showing copper production typically
in the 18m to 2m lbs range and sales that keep track closely (to ready customer Mitsubishi).
CMMC: Copper production and sales, per qtr
6
030.02 114.02
382.81 216.71
826.02
134.91 016.81 843.91 054.81 139.71 203.61 120.71 885.81 895.71 274.71 268.71 290.81 978.81 439.81 428.71
Mlbs Cu
22
21 Cu prod (mt)
20 Cu sales (mt)
19
18
17
16
15 14
13
12
11
10
2q18 3q18 4q18 1q19 2q19 3q19 4q19 1q20 2q20 3q20
source: company financials NB: cut-down Y-axis
A typical quarter sees around 80% to 82% of
CMMC: Gold production and sales, per qtr revenues from copper, with the rest from gold
(16% approx) and some silver (2% approx).
We don’t feature the very minor silver data
here, but a look at how the gold sells is in this
chart: A typical quarter sees CMMC selling
perhaps 6,300oz gold, a significant by-product.
However CMMC falls and stands on its main
product and from this point we focus on copper
alone.
Production data illustrates the mine well. Here
is tonnages mined, ore to waste. That results in
a strip ration that can bounce around, but trends to an average of 3.5X.
Next up, head grade at the mine is low compared to most other copper operations. Copper
Mountain is a high tonnage, low grade operation that needs all the working parts to run
smoothly in order to remain on good margin. That’s also true for recovery rates, which were an
issue in 2019 but the company now has them back at the benchmark 80% and expects
improvement in the quarter to come.
4256 4846 2357 9436 4218 5747 7217 6207 2296 4407 8946 0046 0026 8006 9316 4636 9947 9826 0366 2326
Oz Au
10000
Au prod
9000
Au sold
8000
7000
6000
5000
4000
3000
2000
1000
0
2q18 3q18 4q18 1q19 2q19 3q19 4q19 1q20 2q20 3q20
source: company financials
mmt CMMC: Tonnes mined, per qtr 6 CMMC: Strip ratio, per qtr
22
20 waste mined
5
18 ore mined
16 4
14
12 3
10
8 2
6
4 1
2
0 0
2q18 3q18 4q18 1q19 2q19 3q19 4q19 1q20 2q20 3q20 2q18 3q18 4q18 1q19 2q19 3q19 4q19 1q20 2q20 3q20
source: company filings source: company filings

Copper Mountain works on paper because it benefits from simple mining and low cost inputs
(e.g. power). In practice, as we’ve seen over the years it only takes a few glitches to stop the
flow and crimp margins, so seeing the company run as it has in 2020 as a reliable, steady state
producer (at last) is a key element in today’s trade decision. The bottom line to production is
that now CMMC has its mine running smoothly, it has become a reliable and profitable
operation. Now we move to the money side and see how CMMC benefits in the new price
environment for copper.
We begin with the overview chart and C$94.922m in revenues is a company record, but was
helped along a positive mark to market and final adjustment on concentrate sales of $11.3m.
One of the benefits of fast rising copper prices is that you are eventually paid more than you
assumed you’d be paid in previous quarters, that adjustment shows up in Q3. We may see a
further positive adjustment in the current 4q20 and if so, there’s a chance revenues busts over
C$100m, however our model assumes C$96m
CMMC.to: Quarterly Earnings overview
100
90
80
70
60
50
40
30
20
10
0
-10
-20
7
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 tse02q4
source: company filings, IKN ests
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CMMC: Average mil feed grade Cu%, per qtr
revenues COGS Gross profit
Regarding our Q4 estimates, CMMC stated in its 3q20 filings they expect production
improvement due to “higher grades and improved
recoveries”. FWIW, a brief phone call to an
acquaintance in BC last week confirmed CMMC is
still on track for that guidance. As such, it’s
reasonable to assume a good quarter in the
pipeline for CMMC.
In pale blue, COGS came in at under $53m. This
was one-off chap, but as previous quarters
suggest the mine is highly dependent on its fixed
costs for activities and any number that varies
from $60m/qtr is unusual. This makes modelling
simpler, of course. To present the costs figures in
43.0 82.0 03.0 92.0 82.0 62.0 13.0 03.0 82.0 92.0
% Cu CMMC: Copper recovery rates
0.40
0.35
0.30
0.25
0.20 0.15
0.10
0.05
0.00
2q18 3q18 4q18 1q19 2q19 3q19 4q19 1q20 2q20 3q20
source: CMMC filings
%5.08 %1.97 %0.18 %6.18 %2.87 %0.37 %3.57 %0.97 %4.08
100%
90%
80%
70%
60%
50% 40%
30%
20%
10%
0%
3q18 4q18 1q19 2q19 3q19 4q19 1q20 2q20 3q20
source: company financials
CMMC.to: Revenues
649.77 402.48
27.06
941.37 78.68
441.56 307.26
347.37
465.94
980.19 299.49
100
90
80
70
60
50
40
30
20
10
0
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3
U$m
source: company filings

a different deck, this is the U$ denominated AISC per Lb Cu. The last quarter’s U$1.43/lb is not
sustainable and benefited from one-time changes, but 2q20 and its U$1.67/lb is a good
benchmark for longer term.
CMMC: AISC per Lb Copper in USD, per qtr
8
87.1
31.2
37.1 78.1 58.1
82.2 72.2 41.2
76.1
34.1
U$
2.50
2.00
1.50
1.00
0.50
0.00
2q18 3q18 4q18 1q19 2q19 3q19 4q19 1q20 2q20 3q20
source: CMMC filings
The combo of production running on rails and improving copper prices come together here:
CMMC.to: Operating profit
50
40
30
20
10
0
-10
-20
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3
source: company data, IKN ests
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When considering the margins run by CMMC in the
past (most charts today run back to 2017, the
house spreadsheet goes to 2011) I feel justified in
passing on CMMC to date, it was never a reliable
operator. However, the last two quarters of low
costs have driven cash to the bottom line with
little resistance and the change in fortunes is
stark, the net income chart is the picture that
paints a thousand words.
This next chart offers unadjusted EPS for the
mine, which came in at 17.3c in 3q20 and is set at
nearly 15c for the quarter to come (we do not
assume positive adjustments from previous
quarter deliveries).
CMMC.to: Unadjusted earnings per share, per qtr
0.20
0.15
0.10
0.05
0.00
-0.05
-0.10
-0.15
-0.20
-0.25
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 tse02q4
CMMC.to: Net income, per qtr
50
40
30
20
10
0
-10
-20
-30
-40
-50
C$
source: company filings
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3
source: company filings
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The 17.3c above compares to an adjusted EPS of 8c for 3q20, once minorities and one-time
charges were taken into consideration. With the company set to repeat that type of quarter
indefinitely (or as long as copper prices stay bullish), the optimization of the mine has turned it
into a veritable cash cow at a most opportune moment.
It’s when we arrive at the balance sheet that the hard work becomes most evident. The assets
overview chart is dominated by the $630m or so in fixed assets and not particularly
enlightening, so the sharp rise in cash last quarter shows best on its own.
CMMC: Assets breakdown, per qtr CMMC.to: Liabilities Breakdown per qtr
500
C$m
1000 450 cash&eq A/C Rec
900 Inventory fixed 400
800 350
700 300
600 250
500 200
400 150
300 100
200
50
100
0
0
4q17 1q18 2q18 3q18 4q18 1q19 2q19 3q19 4q19 1q20 2q20 3q20
source: CMMC filings
As for liabilities, the refinancing of the loan book under minority partner Mitsubishi has brought
relief to debt repayment schedule and frees up capital. That comes together in the working
capital chart, which shows how the combination of better loan profile and those cash profits
being delivered to treasury have tipped working capital positive, an impressive achievement
considering where the company was this time last year. Finally, BV/share shows the recent
improvement, but hides the fact that cash is the main asset now being added. CMMC has
turned into a cash cow and the big difference this time is how it won’t stall at the previous
$1.60 level. Instead it is collecting cash at perhaps 15c/quarter and that alone should push the
share price North of $2.00 in 2021.
9
71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3
source: company filings, IKN ests
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LT debt
current debt
100 CMMC.to: Working Capital per qtr
80
60
40
20
0
-20
-40
-60
-80
-100
-120
71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3
source company filings, IKN ests
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CMMC.to: Cash and ST
80
70
60
50
40
30
20
10
0
71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3
source: company filings, IKN ests
CMMC.to: BV/share
2.60
2.40
2.20
2.00
1.80
1.60
1.40
1.20
1.00
0.80
0.60
71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3
source: company filings, IKN ests

Now is the right time for CMMC, with copper prices moving again and a market that hasn’t
appreciated how much the now dependable
operations will benefit from that. The company
is less a turnaround story, more a Turned
Around that hasn’t been fully appreciated by
the market. The big difference today is a mine
that works and is profitable at lower copper
prices, which has allowed the company to
benefit from every penny of the recent copper
price hike. That is set to continue and adding
15c to 20c in liquid assets per quarter will not
go unnoticed for much longer. Even after the
price run to this weekend’s C$1.31 this
company is trading at a deep discount to its
new earnings power and your author is a buyer
of CMMC.to in the week ahead, with no formal price target set for the time being as the trade is
designed to leverage rising copper prices.
Stocks to Follow
During a week in which no fewer than 13 of the 16 open positions lost ground, is it too arrogant
to say there are only two companies on the list that are real cause for worry? Aurelius (AUL.v
down 15.4%) and Norsemont (NOM.cse) continue trading weakly in the market, but aside from
those two the portfolio picks held up well to a week of constant headwinds, with minor losses of
a penny here and there in most positions and even three winners in the shape of base metals
trades Trilogy (TMQ up 2.5%), Tinka (TK.v up 13.5%) and Excelsior (MIN.to up 17.9%). The
biggest loser was Pucara (TORO.v down 18.4%), but that’s good as it need to get lower before
we take any sort of position.
Until Tinka Resources leaves as planned, we have 16 open positions which is one above our
normal, self-imposed maximum. Ten are in the green, five are in the red, one is unchanged on
its cost average.
company Ticker this week Avg Price Reco date Current PPS Gain/Loss% Notes
TOP PICKS
Minera Alamos MAI.v STR BUY C$0.21 13-Oct-19 C$0.69 228.6% New $1.14 tgt Aug'20 #1 idea
Rio2 Ltd. RIO.v STR BUY C$0.83 22-Apr-18 C$0.85 2.4% $1.58 tgt, bot again Nov'20
Recommended stocks (In order of preference)
Fiore Gold F.v STR BUY C$0.98 21-May-20 C$1.47 50.0% $2.00 target, small growth PM
New Gold NGD BUY U$0.76 9-Feb-20 U$1.82 139.5% 3q20 tgt $2.80 confirmed
Norsemont Mining NOM.cse STR BUY C$1.55 6-Sep-20 C$1.06 -31.6% Add 3rd time, for 2021 run
Great Bear Res GBR.v STR BUY C$15.83 26-Aug-20 C$15.64 -1.2% M&A major tgt, added IKN590
Trilogy Metals TMQ BUY U$1.78 15-Sep-19 U$1.65 -7.3% Permit received. Holding thru
Excelsior Mining MIN.to BUY C$0.93 10-Mar-19 C$0.99 6.5% added Nov'20, catch-up Cu play
Royal Road Min. RYR.v spec buy C$0.155 17-Mar-19 C$0.31 100.0% Good progress in Nica
Orezone ORE.v BUY C$0.79 21-Jun-20 C$0.93 17.7% Now in news period, trade buy
Minera IRL MIRL.cse hold C$0.195 22-Jul-12 C$0.185 -5.1% 25c first tgt on Cofide deal
Kuya Silver KUYA.cse spec buy C$1.66 8-Nov-20 C$2.14 28.9% new Peru Ag jr w/good plan
Cartier Resources ECR.v hold/sell? C$0.155 3-Aug-18 C$0.26 67.7% running out of time
Aurelius Res AUL.v spec buy C$0.075 28-Jun-20 C$0.055 -26.7% 1st assays promising, spec buy
Pucara Gold TORO.v wait to add C$0.80 4-Oct-20 C$0.71 -11.3% Will add at under 65c
Tinka Res TK.v SELLING C$0.195 19-Apr-16 C$0.21 7.7% SELL ON NOV'20 DRILL NR
10

Short positions
no current short positions
Closed in 2020 closed close price
TMAC Resources TMR.to Jan'20 C$3.41 20-Dec-19 C$3.61 5.9% TLS flip play, sold new year
Regulus Res REG.v Jan'20 C$1.10 20-Dec-19 C$1.30 18.2% TLS flip play, profit taken
Bonterra Res BTR.v Jan'20 C$1.90 9-Dec-19 C$1.66 -12.6% TLS flip play, loss taken
McEwen Mining MUX Jan'20 U$1.12 2-Dec-19 U$1.18 5.4% TLS flip play, profit taken
Core Gold CGLD.v Jan'20 C$0.255 7-Apr-19 C$0.305 19.6% arb trade, profit taken
HudBay Min HBM Jan'20 U$3.56 9-Dec-19 U$3.36 -5.6% TLS flip play, loss taken
Midas Gold MAX.to Feb'20 C$0.71 5-Jan-20 C$0.57 -19.7% sm & silly trade
Warrior Gold WAR.v Feb'20 C$0.08 3-Aug-18 C$0.05 -31.3% clean out non-perf sm stocks
Contact Gold C.v Feb'20 C$0.40 19-Aug-18 C$0.18 -55.0% clean out non-perf sm stocks
Sandstorm Gold SAND Feb'20 U$3.73 17-Apr-16 U$7.21 93.3% Sold during port rebalance
NexGen Energy NXE Feb'20 U$1.20 2-Dec-19 U$1.06 -11.7% TLS flip play, loss taken
MAG Silver MAG Apr'20 U$8.95 1-Mar-20 U$10.07 12.5% Sold to cut silver exposure
Alexco Res AXU Apr'20 U$1.69 7-Sep-17 U$1.69 0.0% sold to close Ag exp. in FY20
Bonterra Res BTR.v Jun'20 C$1.62 2-Feb-20 C$1.10 -32.1% under-performer cash moved
Regulus Res REG.v Jun'20 C$0.64 6-Apr-15 C$0.79 23.4% moved $ TMQ/MIN & Au stocks
Great Panther GPR.to Aug'20 C$0.60 21-Jun-20 C$1.10 83.3% Profit taken, good trade
Jaguar Mining JAG.v Aug'20 C$0.42 21-Jun-20 C$0.65 54.8% Profit taken, good trade
Sandstorm Gold SAND Aug'20 U$7.76 10-May-20 U$9.37 20.7% Profit taken, good trade
Integra Resources ITR.v Aug'20 C$2.23 13-Aug-18 C$5.40 142.2% Profit taken, good trade
Wesdome Gold WDO.to Aug'20 C$2.37 14-Oct-17 C$14.82 525.3% last 1/2 of big win closed
INV Metals INV.to Sep'20 C$0.40 17-May-20 C$0.45 12.5% Cut all Ecuador exposure
2015 to 2019 annual closed positions in appendices below, 2009 to 2014 closed positions in editions IKN553 or earlier
Now for some notes on our covered stocks:
Cartier Resources (ECR.v): SELLING ONCE RESOURCE NEWS ARRIVES. As noted a
couple of weeks ago, ECR was most likely
to be cut away if a space is needed on the
Stocks to Follow list. In this case, the fact I
am swapping gold exposure for copper
exposure makes the choice even easier, the
portfolio weighting getting a double boost
to copper. However, please note the plan
involves waiting until ECR announces its
resource update for Chimo before selling. If
that happens this coming week it makes
the paperwork for the Weekly neater, but
aside that there’s no worries about waiting
until the liquidity event shows.
For a while in mid-2020 ECR threatened to
become an excellent trade and pay off with the sale of Chimo, I will have to settle for it being a
good trade instead. Hoping that CEO Cloutier now makes a fool of me in 2021 and adds
massive for all who stay in the stock, but the shadow of AEM was too long for me.
Excelsior Mining (MIN.to): ADDED. It seems I am destined to pay up for MIN shares, so be
it. The purchase last week managed to shave two cents from my cost average, but it’s no
biggie either way. More pleasing was the way in which MIN.to traded all week, Friday just
failing to take out the C$1.00 price that I thought would drop days ago. Surely will in the days
to come, though. It is not too late to buy this stock, the upside is in dollars not in cents.
11

Trilogy Metals (TMQ): This is another one that’s been beaten up recently, but the
confirmation of the 2021 budget should go a ways to calm holders (6). Set at U$27m and
operated by the JV subsidiary entity, 2021 is all about moving Arctic toward permitting, plus
some exploration drill campaigns at other prime targets. As TMQ is famously volatile and reacts
to the upside most on volume surges, this may be one to watch again on a turn for the sector
outlook, people like bargains and TMQ, fully carried until South32 decides to buy it out, is one
of those.
Top Picks Minera Alamos and Rio2 Ltd (MAI.v) (RIO.v): Among the reasons I’ve been
sanguine about the recent sector weakness, this chart:
This is not a round of horn-tooting, as since the Full Bull gold run finished both Top Picks here
at the Weekly have lost ground. However, they have done well compared even to GDXJ, a
ticker full of much larger and supposedly more stable mining companies. The secret to both
stocks seems to be a lack of sellers, as these days even Rio2 gets buyers when it goes under
80c. As for Minera Alamos (MAI.v), we squeezed in the report on the 630,000 oz gold resource
at Cerro de Oro in last week’s edition, the market duly applauded. Down a penny on the week,
the magnetic attraction continues.
Kuya Silver (KUYA.cse): KUYA is still
getting plenty of promo pump from the usual
channels, which shows in the way it traded
on heaviest volume Monday (anyone selling
a start-up junior miner three hours drive
from Huancayo because of political thrashing
around in Lima needs to stay away from all
Peru exposure forever), but it did stay about
C$2.00 all week and the buying on Friday
looked genuine. Evidence mounts that I
didn’t buy enough when I should have, but
for the moment I will watch and any addition
can wait until 2021.
Minera IRL (MIRL.cse): At this point, it doesn’t really matter whether CEO Benavides
planned all the timing of the Cofide delays and disclosures deliberately in order to avoid difficult
agenda items at the AGM, whether it’s sheer coincidence, or my best guess of both. However,
the only way of affording real change at the company this year is either to rebel against
standard agenda items such as the signing off on the auditor, which is a bit silly, or going to the
time and expense (for organizers, but then company also has to spend valuable treasury) of
calling a SGM or adding a proxy slate to the current AGM. That seems unlikely to happen and
here we are, but before making vote decisions in December let’s see whether MIRL can present
us with details in November. Sources tell this desk that we get news on their funding and
12

construction plans for Ollachea this week, but I will not hold my breath because CEO Benavides
lost the assumption of trust several weeks ago.
Norsemont Mining (NOM.cse): I received more correspondence on NOM than any other
covered stock last week, which is how it should be. All I have is a fundamental view that
Choquelimpie is a compelling project on its economics and has been picked up by the right
team. For what it’s worth, I am once again reminded of the way Wesdome Gold (WDO.to)
chopped and made it difficult and slightly uncomfortable to own in its first weeks, before the
fundies started showing through. This is a big personal position now and even though handily
underwater, not one I’m worried about.
Pucara Gold (TORO.v): The good news is that it’s coming down to sensible and buyable price
levels again. I don’t expect to get in at 40c or 50c, but something with a low 6-handle is
perfectly possible. The bad news is that by committing to CMMC I’m now out of cash until
further notice. We do not “papertrade” at The IKN Weekly, so if I miss a buying window due to
a lack of liquidity, it will be my own sore fault.
Tinka Resources (TK.v): The company and its CEO are doing what we expected them to do,
the promo plan has begun. Friday saw TK come out with a market-primer NR, which used the
cover of information that could easily have waited in order to tell the world they have real news
out soon (7). In this case it’s drill results and the money line is buried under all the jargon,
“…and we expect assay results to be received by the end of November.” That is for two holes
and helpfully, TK also supplied a visual in the NR showing holes 169 and 170 locations and as
they are on strike and slightly out-stepping on either side of the main Ayawilca mineralized
zone, they look chosen to give strong results at the start of the campaign.
As for market reaction, that is according to plan as well, the market is buying the rumour:
13

With zinc joining copper and kicking on in recent weeks, TK will have a lot of marketing
tailwinds at its disposal when the results show
in a week or ten days’ time.
Finally, as the plan is working be clear it is not
changing. Therefore (and just in case the above
tempts you into buying), please be aware that I
will sell into this upcoming liquidity event,
presumably around month’s end, and move on.
Also, in considered opinion Wolfden (WLF.v)
down in the Tiny Dogs is a better bet on
leveraged zinc today. It’s looking as though I
may even escape TK with a net profit too, that
would be a bonus.
The Copper Basket
After 47 weeks of 2020, The Copper Basket shows a 46.01% gain to level stakes.
company ticker price 1/1/20 Shares out Market Cap current pps gain/loss%
1 Capstone Min CS.to 0.76 399.598 735.26 1.84 142.1%
2 Imperial Metals III.to 2.06 128.49 439.44 3.42 66.0%
3 Trilogy Metals TMQ.to 3.38 138.905 300.03 2.16 -36.1%
4 Oroco Res OCO.v 0.45 181.52 257.76 1.42 215.6%
8 Copper Mtn CMMC.to 0.71 191.3 250.60 1.31 84.5%
5 Excelsior Min. MIN.to 1.00 238.658 236.27 0.99 -1.0%
6 Marimaca Cop MARI.to 1.625 64.358 215.60 3.35 106.2%
7 Western Copper WRN.to 1.07 107.586 156.00 1.45 35.5%
9 Regulus Res. REG.v 1.28 101.85 126.29 1.24 -3.1%
10 Amerigo Res ARG.to 0.59 180.169 108.10 0.60 1.7%
11 Atico Mining ATY.v 0.31 119.023 63.08 0.53 71.0%
12 Chakana Cop PERU.v 0.245 93.2 44.74 0.48 95.9%
13 Aldebaran Res. ALDE.v 0.47 77.636 27.95 0.36 -23.4%
14 Doré Copper DCMC.v 1.25 31.798 22.26 0.70 -44.0%
15 Chibougamau CBG.v 0.17 46.695 6.30 0.135 -20.6%
NB: All stocks in CAD$ Portfolio avg 46.01%
A mixed bag of a week for juniors, with bullish and bearish influences on the sector that affect
individual companies in different measure. We
60% The Copper Basket 2020, weekly evolution
saw nine winners on the week (TMQ.to,
50%
CS.to, III.to, MIN.to, CMMC.to, ARG.to, 40%
30%
OCO.v, DCMC.v, ATY.v) and six losers (REG.v,
20%
MARI.to, WRN.to, ALDE.v, PERU.v, CBG.v), 10%
0%
with big wins from Excelsior (MIN.to up
-10%
17.9%), Amerigo (ARG.to up 17.7%), Copper -20%
-30%
Mountain (CMMC.to up 12.9%), and Atico
-40%
(ATY.v up 12.8%). As for the losers, the -50%
biggest drop was in Chakana (PERU.v down -60%
11.1%)
Overall and with special interest influences
aside, it was a wholly positive week for copper stocks and you don’t need to look far to find out
why:
14
ts13ceD ht5naJ ht21 ht91 ht62 dn2bef ht9 ht61 dr32 ts1ram ht8 ht51 dn22 ht92 ht5rpa ht21 ht91 ht62 dr3yam ht01 ht71 ht42 ts13 ht7nuj ht41 ts12 ht82 ht5luj ht21 ht91 ht62 dn2gua ht9 ht61 dr32 ht03 ht6pes ht31 ht02 ht72 ht4tco ht11 ht81 ht52 ts1von ht8 ht51 dn22
source: IKN calcs

We did plenty on copper in today main section, here today we move straight to the weekly
copper inventory data and they are interesting numbers this time, too:
 World copper stocks saw a significant drop, down 29,589 metric tonnes (mt) (-8.3%) to
drop the aggregate from that thinnish looking total of last week, to 32,406mt this
weekend. Back in March this year, SHFE alone held more stock.
 And indeed the main story is from the SHFE, which saw an eye-opener of 21,183mt
drop (-18.0%), which means nearly 35kt Cu has left its system in just two weeks, a fast
de-stock at a key moment in the year.
 The LME joined in the fun too, down 7,850mt from its already low stock levels to close
Friday at 157,350mt. Cancelled warrants moved up over 30% to 44,825mt, which make
for a market-moving lump of metal.
 Comex stocks dropped by 556mt to finish at 74,290mt.
The Shanghai-only inventories chart had gone into a steep drop from the second time this year
and earlier than normal, too.
Shanghai Futures Exchange Warehouse Stocks, Dec'16 to date
400000
350000
300000
250000
200000
150000
100000
50000
15
6102
dr3naj
ts13 ht82 ht72 ht42 dn22 ht91 ht71 ht41 ht11 ht9 ht6voN ht11 ht8 ht5beF 7102
ht5raM
dn2rpA ht03 ht82 ht52 dr32 ht02 ht71 ht51 ht21 ht01 8102
ht7naj
ht4bef 8102
ht4ram
8102
ts1rpa
ht92 dr3nuj 8102
ts1yluj
ht92 ht62 dr32 ts12tco ht81 ht61 ht31naj ht01 ht01 9102
ht7rpa
ht5yam 9102
dn2nuj
ht03 ht82 102ht52pes dn22 ht02 9102ht71von ht51 0202ht21naj ht9 ht8 ht5rpa 0202dr3yam ht13 ht82 0202ht62luj dr32 ht02 ht81 ht51
Mt Cu
source: Cochilco
Now for notes on a couple of basket stocks:
Capstone Mining (CS.to): Along with Copper Mountain (CMMC.to), one of the stocks I
considered as a way to leverage on copper production was CS.to. Ultimately I prefer CMMC, as
even though there’s not that much difference in their upside potential I can’t get over my own

prejudices a out Capstone. I used to be critical on CMMC due to its patchy operational record as
well as the hidden cost of holding a large US Dollar debt when operating and reporting in
Canadian dollars. CMMC has solved those issues and these days is on rails, but I have seen too
many bad corporate decisions made by Darren Pylot to get comfortable enough. Numerically,
CS looks cheap and in Santo Domingo they have a project to drive their 2021.
Atico Mining (ATY.v): The value trap came out with its 3q20 financials and didn’t make much
money, as usual. However, the company is now under promo with the Stansberry/Casey people
and the price moves of last week are due to that. I like its mine in Colombia, but they haven’t
managed to add resource there. I don’t like Ecuador.
The Producer Basket
After 47 weeks of 2020, the Producer Basket shows a gain of 25.04% to level stakes.
company ticker price 1/1/20 Shares out Mkt Cap (Bn) current pps gain/loss%
1 Newmont NEM 43.45 819.84 50.54 61.65 41.9%
2 Barrick GOLD 18.59 1779.04 43.20 24.28 30.6%
3 Franco-Nevada FNV 103.30 188.6 24.53 130.09 25.9%
4 Agnico Eagle AEM 61.61 238.985 16.16 67.63 9.8%
5 Kinross Gold KGC 4.74 1253.5 9.43 7.52 58.6%
6 Royal Gold RGLD 122.25 65.375 7.19 109.97 -10.0%
7 Pan American PAAS 23.69 209.61 6.46 30.80 30.0%
8 B2Gold BTG 4.01 1025.75 5.83 5.68 41.6%
9 Alamos Gold AGI 6.02 391.19 3.41 8.71 44.7%
10 Buenaventura BVN 15.10 254.19 2.96 11.66 -22.8%
Prices in U$, NYSE/NASDAQ tickers Portfolio avg 25.04%
Last week in five words; Larger producers were whacked most. That shows in the week-over-
week losses in GDX (-5.55%) compared to GDXJ (-4.93%), equally inside our list as the Tier 1
companies had a hard time and of the top seven, only defensive royalty play FNV (-4.4%) had
a relatively modest drop. However, down at the bottom AGI lost just 3.2% and our contrarian
friend Buenaventura (BVN up 2.6%) even managed an addition on the week.
Overall, the house best guess is that big cap miners underperformed on the week due to
unlucky timing. We’ve seen the big generalist instos and funds step back in the last couple of
weeks and as they go in via the most liquid issues, it’s the NEMs, GOLDs and GDXs that are
sold down first so when the gold reversal came late week, the higher leverage stocks turned
fastest. If that pet theory holds true it augurs well for the week ahead, if gold continues this
mini-rebound there are plenty of instos obliged to re-take positions.
The 2020 Producer Basket: Weekly performance and
60%
comparative to GDX control
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
-40%
16
ht5naJ ht21 ht91 ht62 dn2bef ht9 ht61 dr32 ts1ram ht8 ht51 dn22 ht92 ht5rpa ht21 ht91 ht62 r3yam ht01 ht71 ht42 ts13 ht7nuj ht41 ts12 ht82 ht5luj ht21 ht91 ht62 dn2gua ht9 ht61 dr32 ht03 ht6pes ht31 ht02 ht72 ht4tco ht11 ht81 ht52 ts1von ht8 ht51 dn22
The 2020 Producer Basket: Percentage difference between
GDX benchmark and basket (negative = IKN basket ahead)
2.0%
1.0%
basket
0.0%
gdx control
-1.0%
-2.0%
-3.0%
-4.0%
-5.0%
-6.0%
-7.0% source: Google, IKN calcs
-8.0%
ts13ceD ht5naJ ht21 ht91 ht62 dn2bef ht9 ht61 dr32 ts1ram ht8 ht51 dn22 ht92 ht5rpa ht21 ht91 ht62 dr3yam ht01 ht71 ht42 ts13 ht7nuj ht41 ts12 ht82 ht5luj ht21 ht91 ht62 dn2gua ht9 ht61 dr32 ht03 ht6pes ht31 ht02 ht72 ht4tco ht11 ht81 ht52 ts1von ht8 ht51 dn22
source: IKN calc, NYSE/Nasdaq data

Buenaventura (BVN): Further confirmation last week that BVN will begin construction of its
San Gabriel mine in South Peru may have been the difference that allowed BVN to beat the
headwinds and record a week-over-week win. In virtual conference, BVN project director Renzo
Macher, the U$422m capex spend starts when the rainy season ends in April and construction
of the 3,000tpd plant should finish by 3q23, with commercial production reached in 2024.
During the conference, Macher also let slip that although the current mine plan is for ten years,
Buenaventura (quote translated) (8), “…expect it to run for sixty. We only projected ten
because wanted to be sure about the plan.” That makes sense, as the current San Gabriel high
grade reserve is a lot smaller than the 6.1m ounce resource it used to have when called
Chucapaca and owned 49/51 by BVN and GFI. It’s also worth noting that BVN eventually
bought GFI’s 51% of the project for U$81m and a 1.5% NSR, hardly a king’s ransom for over
$3m ounces of gold.
The Tiny Dogs
Here are our ten and after thirty-seven weeks, the average is up by 32.59%:
company ticker price 16/2/20 Shares out Mkt Cap current pps gain/loss%
1 Aston Bay BAY.v 0.065 136.26 5.45 0.04 -38.5%
2 Chakana Copper PERU.v 0.175 93.2 44.74 0.48 174.3%
3 Constantine Met CEM.v 0.19 45.35 8.16 0.18 -5.3%
4 Contact Gold C.v 0.175 84.472 9.71 0.115 -34.3%
5 Manitou Gold MTU.v 0.065 230.79 11.54 0.05 -23.1%
6 Salazar Res* SRL.v 0.18 126.55 39.86 0.315 75.0%
7 Radius Gold RDU.v 0.235 86.94 26.95 0.31 31.9%
8 Red Pine Expl RPX.v 0.035 477.22 16.70 0.035 0.0%
9 Warrior Gold WAR.v 0.055 68.2 6.48 0.095 72.7%
10 Wolfden Res WLF.v 0.13 129.532 22.67 0.175 34.6%
Prices in CAD$, data from TSXV (*SRL price from May 2nd) basket avg 32.59%
This section attempts to track the tinycap mining sub-sector of the market, our ten companies
chosen under the following criteria to put together a list that represents what’s going on in the
whole sub-sector of tinycap exploration company stocks.
 Market capitalization of under $20m. They have to be tiny. In two case I’ve stretched the window a little
and allowed sub-U$20m market capper in that are just over the C$20m level, but the spirit is unaltered.
 A “non broken” stock price and project story. There are literally hundreds of tinycap juniors of the right
size, but it was a particularly depressing exercise to trawl through the whole of the TSXV and find companies
that are small enough, but with life in them. The vast majority of sub-$20m stocks are broken stocks, either
traded to death on the exchange or with projects that are a bust or with entrenched management more
interested in their monthly paycheck than anything else.
 Likelihood of meaningful newsflow in 2020. This connects to the company’s “unbroken” status, as we
want news and potential catalysts from companies with projects that can work.
 Decent management if possible. When you are down among the little guys it doesn’t pay to be too
choosy, but still I preferred companies that have teams or people with good peer reputations.
The basket didn’t tell us much last week, mining stocks action was in the big caps. Four of our
basket stocks remained UNCH (BAY.v, MTU.v, SRL.v, RPX.v), four were down (PERY.v, C.v,
WAR.v, WLF.v) and just two made gains (CEM.v, RDU.v).
Wolfden Resources (WLF.v): If I had to choose one of these ten today for a long trade, it
would be WLF. One month ago in IKN595 (October 18th), we ran the numbers on WLF and liked
what we saw. At that time it was a 20c company and a C$26m market cap, that’s now even
lower at 17.5c thanks to the type of selling that can mystify people unused to the tinycap world.
At the precise time zinc the metal takes off and breaches the U$1.20/lb line successfully, a
promising zinc junior is sold down.
The Mt. Pickett project is certainly valuable enough; its current post-tax NPV8% of US$198m
means WLF is trading at less than 10% of NPV. The issue is of course the capex hurdle, set at
17

$147m which means the exit strategy is to sell to a larger company, no other way. And with
base metals companies looking seemingly uninterested in medium-scale zinc mines, it needs the
right market circumstances before it moves. With zinc now making new highs and headlines,
that might be now.
NB: Please be clear that The Tiny Dogs is NOT a list of recommended tinycap stocks. It is a list of companies with
market caps of under $20m offering a reasonable representation of the wider tinycaps market. It is possible that in the
future I may buy shares in one or several of these stocks, but at the moment both my opinion and my wallet are strictly
neutral.
Regional politics
Argentina: The gloves are now off in Chubut
The debate over whether to change existing laws to allow mining in the Central Meseta zone of
the province hit full speed this Thursday, when Chubut Governor Mariano Arcioni took part in a
pro-mining conference along with National Mining and Energy Secretary Alberto Hensel.
Arcioni defended the plans to partition Chubut in regions, in order to allow mining in the
Meseta. He called the anti-mining groups “some 500 troublemakers who don’t want progress”,
but my personal favourite was “We are a mining province par excellence”, which goes to show
once again how far politicos can push windows (9). His words were met by protest marches in
several towns across Chubut (10) (and well attended for being at such short notice) and the
start of open hostilities toward the governor by anti-mining groups and erstwhile allies. FWIW,
the anti-mining groups in Chubut are far more than 500 people, they are highly organized and
with plenty of grassroots support. They have promised non-stop protests in their “No Is No”
campaign and at this point, there’s no way in knowing which way Chubut will go in 2021. This is
the best chance Navidad has ever had of becoming a mine, but it’s still no certainty.
Another scalp for the Chilean mining unions
As announced Friday (11) Philip Brumit, 35 years experience, retiring as President of Lundin
Candelaria Division at the end of the year, but will also leave Chile as from the end of this
month and finish his employment elsewhere. His place is taken by one Sergio Armstrong, who
has been at the mine since 1994 and currently leads underground operations. His is the duty to
reach an agreement with the Chilean unions who have maintained their stoppage for closing in
on three months and late Friday evening (12), once Brumit had been replaced, this news
arrived:
The safe resumption of partial operations is being assessed while the Candelaria Mine Workers
Union, representing approximately 350 workers, continues with its labour action. In the meantime,
critical works continue to be executed to protect required onsite personnel, the operation and the
environment.
The partial acceptance described in the NR was nothing new, what is new is the company
contemplating partial re-start without a full roster of staff. This would be highly unusual in Chile
and may end up antagonizing the workforce further.
18

People Power
Guatemala made international headlines this weekend as a mob of around 7,000 protesting
against the current government first blockaded the country’s Congress, then managed to get in
and set one corner of it on fire. In Chile, another episode of thuggish police brutality now gets
an immediate response from the streets, with protesters flooding the centre of Santiago around
the Presidential Palace and forcing President Piñera to fire the head of Chile’s Caribinero police
force. However, as he was replaced by the direct Number2 and close ally of the fired chief,
don’t hold your breath on the infamously thuggish Caribineros changing much.
LatAm this year has seen the repeated scenario of massed protest against authoritarian
governments acting in their normal way. Where previously we’d see and hear outcry and special
interest groups acting, today large percentages of populations are willing to hit the streets in
order to preserve democracy*. Chile this time last year was a flashpoint, but perhaps the
prototype of the change in protest dynamic was in Bolivia, as the rightwing interim government
of Jeanine Añez tried every delaying tactic in the book to put off elections, while the MAS party
made its presence felt more strongly and backed (largely) peaceful street protests that
eventually assured the vote would happen. It was, therefore, telling that MAS won in the first
round and against all polling.
The most obvious recent example is Peru, which saw a coordinated power grab by several
political parties, all of the populist and most on the right wing. With the President removed and
the de facto interim usurper installed, it was only the power of street protest (mainly students)
backed by national support (the Congress is hated) that wound back a bloodless coup. The
result is severely wounded traditional right as we move into the Presidential election season,
the aspirations of Cesar Acuña, the man behind much of the dirty politicking this month, now in
ruins. Instead, we’re likely to see a real changing of the guard in Peru next year, the old faces
will get short shrift from the electorate and new faces are the order of the day. Frontrunning for
next year’s election are now George Forsyth, mentioned last week as a possible and new blood
in the Peru political scene, and Julio Guzmán, leader of the Morado Party (from whose ranks
new interim President Francisco Sagasti has come). Guzmán the person doesn’t convince, he
needs to step it up and become more “presidenciable” (as they say in Spanish), but his policies
would be reasonable for Peru and as with Forsyth, would maintain the current economic line.
*Or what passes for democracy.
Peru’s political crisis blows over
For the time being. Staying with the subject, by the time last week’s delayed edition went out
the situation was already calming down, this weekend Peru is over its ad-hoc lesson in
democracy. All good and I’ll summarize a complex political situation with “it could have been
worse”, but political junkies among you are welcome to mail in and ask more.
It could have been worse in other respects, too: Peru’s Constitutional Court put the blocker on
Martin Vizcarra returning, which would have been possible but would have also antagonized the
atmosphere again. Meanwhile, new Interim President Sagasti has been given a warm welcome
(e.g. as soon as Julio Velarde of the Central Bank had his presser and said he was happier,
everyone fell into line) and has put together a decent cabinet of ministers. A final stroke of luck
for the mining sector is that the new Minister of Energy and Mining is Jaime Galvez, who as
Vice-Minister until two weeks ago and means the offices of MINEM will see continuity instead of
change (for once), which will help keep bureaucracy from slowing again (13). Even so, it’s an
unwelcome record to have had no fewer than ten Ministers of Mining and Energy Turing this
five year term of office.
Updating the anti-mine fronts in Ecuador
Four semi-related items on the growing antipathy toward mining in Ecuador:
1) Pachakutik presidential candidate Yaku Pérez is doing okay in the polls (by chance
this week I found this useful Wiki annex page (14) with all Ecuador polls listed). It’s still early
19

days and campaigning for the February election wil only get noisy in the New Year, but Perez is
gradually adding percentage points and is polling typically between 10% and 135 in national
polls. However, there’s been a lot of talk inside the Pachakutik Party (PP) about an internal poll
they ran, commissioned to a Spanish polling firm, that gave higher weighting to rural votes
where Perez and PP is expected to do well, puts Yaku Perez in a tie for first place.
As for Yaku’s policies toward mining in this election campaign, he set his stall out in this
interview with national daily El Telegrafo (15). Along with covering several other policy points,
here’s the part that matters on mining (translated):
“My first decree will be to solicit a referendum so that citizens can decide is Ecuador
should be declared a mining free territory, above all in ecologically sensitive areas.
This doesn’t means that some of the project now in development will stop, because
then we’ll get international law cases against us. However, they will have to comply
with rigorous environmental and social standards.”
The man knows his law and is pragmatic about his goals. Don’t underestimate him.
2) The Shuar case against Solaris (SLS.v) is going to get noisier as from tomorrow.
Though Mining Watch are not my favourites, they do sometimes back real causes instead of
full-on lefty handwringing stuff and Warintza is an example. Here’s the Mining Watch press
release (16), here’s an extract:
On Monday November 23, the Shuar Artuam Peoples Government Council (CGPSHA
in Spanish) will present a complaint to the International Labour Organization (ILO). The
complaint alleges that Canadian company, Solaris Resources, has violated the
Amazonian Indigenous Shuar peoples' right to self-determination, territory, cultural
identity, and Free Prior and Informed Consent.
The details of the complaint will be presented this Monday November 23rd, at
10amEDT, online.
This is the situation we have already outlined on these pages: The company has made alliances
with the immediate village next to its project and is ignoring the true regional authority, all with
the covert agreement of the Moreno government. Tomorrow, more people in Canada will learn
that Solaris has not been straight with the world and is causing increasing friction in the locality,
rather than appearing as a good corporate citizen.
3) This Friday November 27th sees the first national day of protest against mining, the
event organized local groups and the CONAIE national indigenous umbrella group, along with
Pachakutik. The anti-mining side plans several days such as this in the next three months as
the election draws close.
4) The December 13th referendum in Azuay. Last but not least, do not forget that on
December 13th, the province of Azuay gets to vote on a binding referendum. The wording of the
referendum is designed to protect local rivers from mining activity will almost certainly be voted
up, which made the run in INV Metals (INV.to) last week on the back of a corporate promo
push even more amusing. I was not on the INV virtual conference and presentation last week,
but have to wonder whether the new buyers of the stock are aware of next month’s vote. Your
author noted SolGold last week auto-proclaiming itself as the hottest M&A ticket in town and
that the fight for Alpala was about to start. After watching Newcrest walk from the deal and
taking into consideration the deteriorating political risk backdrop, I will take the under.
Market Watching
Aurelius (AUL.v) gets whacked
A follow-up of sorts to last week’s note, “Aurelius (AUL.v) shows early promise”, due to this
visual:
20

So much for the “promise” shown by the drill assays of the week before last, the stock was sold
down further this week and is back bouncing between 5.5c and 6c. Here’s how that compares
to the rest of the year:
That’s the right price to bet on the next set of drill results, as the selling last week bore very
little relation to the promise shown so far at Aureus East. Sometimes tinycap companies sell off
deeply like this, it is the way of the sector.
On the bargain hunt with Wesdome Gold (WDO.to)
Ultimately, price governs all. On November 3rd 2020 our previously successful trade vehicle,
Wesdome Gold (WDO.to), announced its 3q20 financials (17) and this one month chart gives a
fair impression of the reaction:
A C$14 stock just a month ago, WDO.to has slid hard since announcing its quarter and
magnified the losses incurred by the sector (here proxy GDXJ) along the way. As this second
study of the same relationship shows below, November 3rd marks the date WDO when broke
away from a near-lockstep trading with GDXJ, the two weeks since the breach a gap of 23%
has opened up. That’s a lot in a short space of time for what is one of the best run gold mining
companies on the TSX, which naturally attracts the attention.
21

We therefore return to WDO today, as the causes of the recent price weakness seem to offer a
clear buying window. As the weakness started with the numbers, we must begin there:
WDO.to: Operations overview chart
70
65
60
55
50
45
40
35
30
25
20
15
10
5
0
22
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3
C$m
revenues
total op expenses
Op earnings
source: company filings, IKN calcs
Here’s the most general view of them all, the quarterly operations overview, and it gives the
right impression of WDO’s quarter once stripped of its numerical data. WDO’s 3q20 was slightly
down on its 2q20 at a time when other miners were delivering improvements Q-o-Q..
Here’s a close-up of both revenues, pre-announced at C$55m, and costs:
WDO.to: Revenues WDO.to: Costs overview
CAD$m
57.3 40
60 54.8 55.0
55 35
50 45.9 30
45 42.3 43.2
40 25
3 3 0 5 26.2 31.4 28.9 29.5 32.5 20
25 15
20 10
15
10 5
5 0
0
1q18 2q18 3q18 4q18 1q19 2q19 3q19 4q19 1q20 2q20 3q20
source: company filings
WDO reported mine processing costs of C$21.93m, which is cost creep in action. Reasons for
the hike given by WDO include an inventory adjustment, the fact they now mine more ore from
the UG at Eagle River, which we knew, then an enigmatic “impact of COVID-19.” The company
took a global C$0.556m charge for Covid-19 costs in the quarter which covers some of the hike,
but it’s clear we also have good old fashioned cost creep at WDO as well. It’s wrong to be too
harsh (or even harsh at all) toward WDO on this, its FIFO mine and remote location are going
71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3
CAD$m
mining processing costs depletion
G&A other expenses
Source: WDO.to filings, IKN calcs

to make for higher costs and it’s more a measure of reality, the cheapest production days are
over and some of the gold price hike is now being eaten.
WDO.to: mine processing costs per qtr
30
27.5
25 23.46
21.93
22.5 19.51
20 18.10
17 1 .5 5 13.55 16.12 12.83 14.90 16.00 14.43 16.44 13.57 14.77 15.02 14.02
12.5
10
7.5
5
2.5
0
As day follows night, higher costs show where it most matter. These two charts cover all bases,
with operating earnings presented on a per-share basis (WDO’s count has crept above 139m on
derivates exercises, but is still admirably tight).
Taken either way, 3q20 was a step back from 2q20 and an earnings miss. Total gold produced
of 20,008 oz was augmented from inventory carry over and got us to C$55.000m in sales
(exactly) which gives the better perspective on costs as WDO managed to produce 25,000
ounce of gold in both 1q20 and 2q20 at much lower costs than in Q3.
As for what WDO has been doing with its profits, that shows in balance sheet items. Assets
continue to do their Nike Swoosh and this part of WDO remains optimum.
As for liabilities, they look less wonderful at first sight but its only natural that a company, as its
expands from one active asset to two, takes on more deferred costs. In this case the main
change comes from Kiena and long-term closure liabilities, which are of zero importance to the
23
71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3
$m WDO: Inventories
22
20
18
16
14
12 10 8
6
4
2
0
source: company filings
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3
C$m
ore stockpiles
supplies
gold in progress
source: WDO filings
WDO.to: operating earnings per share
0.20
0.18
0.16
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0.00
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3
$ 20 WDO.to: Net Earnings
18
16 16.1 14.6
14 12.4 12.1
11.5
12
10 8.1 8.3
8
5.7
6
3.6 4 2.9 2.6
2
0
source: company financials/IKN calcs
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3
source: company filings
srallod
fo
snoillim
WDO.to: Assets
400
350
300
250
200
150
100
50
0
61q1 61q2 61q3 61q4 71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3
$m 120 WDO.to: Liabilities Breakdown per qtr
100 fixed
other current cash 80
60
40
20
0
source: WDO.to filings
61q1 61q2 61q3 61q4 71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3
source: company filings
srallod
fo
snoillim
long term
current

day-to-day of WDO. The overall number of C$99m remains modest compared to company size
and profitability and notably, none of WDO’s credit lines are fully drawn (even the leasing on
the CATs).
This below is what WDO has been doing with the money it makes and there’s no surprises or
secrets, they have kept on with the plan. Fixed asset value accrues fast as Kiena, still officially
classified as under care and maintenance, is capitalized, plus another C$6.8m in cash sent to
treasury. With working capital standing at C$59.237m as at end 3q20, there are no liquidity
crunches happening to this company.
C$m WDO: Change in fixed asset value WDO.to: Cash treasury per qtr
20 18.11
17.33 18 16.57
16
14
12 9.31 9.44 9.1 10.63 8.9 10
6.94
8
6 3.78 4.28
4
2
0
1q18 2q18 3q18 4q18 1q19 2q19 3q19 4q19 1q20 2q20 3q20
source: company filings
To make money in WDO, think like a miner and
not like a trader. Wesdome is run as a mining
company and its valuation is driven squarely by
its cash flow and the money it earns, one look at
the Price/Book will tell you it is very different
from the P/NAV and future earnings
expectations. With the right perspective in place,
let’s now consider the WDO price drop since
earnings and there are two main factors in play:
1) It is your author’s considered opinions that
around one Canadian Dollar came off the PPS due to the 3q20 earnings miss, this predicated on
the 2c drop in EPS quarter over quarter as the 18.3c Op EPS of 2q20 became 16.3c. This fits
with the typical multiples previously awarded to WDO of between 12X and 14X OP EPS (or
around 22X EPS), typical for profitable gold miners these days. A 2c quarterly miss annualizes
(2c x4 x13) to just over C$1 and we round down by four cents.
2) The other C$2.50 to C$3 of share price lost by WDO is due to the expanded development
time for Kiena. Here’s some of the information that annoyed its traders in the 3q20 REgFs:
“At Kiena, full drilling and development capacity resumed in June. We are now
currently operating seven underground drills, with the focus on converting inferred
resources to the indicated category. We expect to publish an updated resource
estimate in Q4 2020. We are also advancing development on the 111 metre level in
order to position the Company to take a bulk sample. Future bulk sampling on the A
Zone will provide an opportunity to assess the geological block model and rock quality
characteristics and will provide additional information to complete the ongoing
Prefeasibility Study ("PFS"), expected to be completed by H1 2021.”
The rest of this month’s drop is market fed up with waiting for Kiena. When the Kiena project
was first unveiled and the high grade deep hits made the old mine suddenly exciting again in
2016 and 2017, talk in the market was of perhaps a three year ramp to a production re-start
and even that wasn’t particularly exciting news. As late as 2017 brokers such as NBF were
modeling 2018 re-start and positive cash flow from 2019, but it hasn’t turned out that way.
Instead we have a PFS as next milestone and we will have to wait another half a year for that.
24
64.62 917.62 417.03 873.72 748.72 593.72
116.83 756.53
893.94
337.66 315.37
80
70
60
50
40
30
20
10
0
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3
source: company filings
DAC
fo snoillim
WDO.to: Price / Book Value Ratio
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3
P/BV
source: TSX, WDO filings, IKN ests

Discussion and conclusion
To kick off this discussion, we present yet another price chart of WDO, this time over the two
year period that has seen its success manifest:
The single factor that makes WDO’s price today an interesting (re)entry point is its CEO,
Duncan Middlemiss. Middlemiss is a miner, but before you give me a “duh” consider that his
way has always been about running a mining company and capital market concerns aren’t even
second-tier, they’re more like third. Evidence abounds, from the way he was brought in to turn
around the company on his terms. When large shareholder Tom Stanley of Resolute Funds
opposed him in 2016 (he wanted WDO to sell out), the fund left and Middlemiss went on to
make Stanley’s decision look silly. Then, those of us who rode the train will recall the constant
calls by the Canadian industry for WDO to run an equity financing. CEO Middlemiss ignored
them all and put brokerage noses out of joint in the process, but the result is a company that
hasn’t diluted and eventually made those houses pick them up for free coverage. CEO
Middlemiss has been Miner First all the way through the Kiena development program, too.
While all around (your author included) tried guestimating Kiena’s production day one, the
company CEO has never put a date on the re-start and has let results dictate next steps. That
means we did not see Kiena move in to production in 2019 or 2020, it means the next
milestone is a PFS in around six months’ time. The implication of no production until 2023
minimum was easy to make, the market’s impatience took over, WDO sold off.
Most of the time, WDO the company and capital markets are in lockstep about the future but
we’ve seen moments like our current price sag before, when the market gets annoyed or
exasperated about WDO putting mining concerns first and financial concerns second. The above
two year chart shows four of them and also shows that once the market’s attitude comes back
around to appreciate the WDO model, the price plays catch-up. That is where we are today,
ladies and gentlemen readers of The IKN Weekly, a Wesdome out of price favour because the
market is going through another of its hate patches with CEO Middlemiss’s steady leadership
and conservatism and it’s that, above all, which provides the current transitory window of
opportunity in the stock. It will probably last a few weeks, but the catch-up will happen
eventually as it always does.
As for an approximate target price for WDO, this type of high-level strategic call deserves at
least a ballpark. We consider that WDO has been priced on a high price/earnings ratio of 12x to
14x op EPS and 22X to 25x EPS, mostly due to the promise of Kiena to come. However delayed
it may be, once Kiena is in operation and Eagle has moved to its promised 100k+ operating
rhythm, we can expect corporate operating earnings to at least double. That would probably
imply more than C$50m per quarter as long as gold maintains its price but that’s a conservative
place to set our valuation, even after the cost creep that showed last quarter.
25

At that price and annualizing all calculations, we need a modest 10X Operating EPS to reach a
price target of C$14.28, representing an upside of 40.4% to this weekend’s C$10.17. That’s
already an interesting level of return from a high quality mining stock, but that’s probably
selling this opportunity short and a logically reachable 12X targets C$17.14 and 68.5% upside
from this weekend.
Personally, this isn’t a trade I plan to participate in at the moment but the reasons are nothing
to do with the company or its opportunity. Mine is mostly the prosaic situation of not having
money left to trade, as last week’s addition purchase of Excelsior (MIN.to) put me at my limit,
emergency situations notwithstanding. Also, as I’ve been actively extending leverage to
precious metals these last couple of weeks, buying WDO today would be a step back in the risk
I’m currently willing to take toward market. The potential return of 68.5% in such a strong
company isn’t to be sniffed at however and the window is attractive. Those of you looking for a
company to fill the right niche in your portfolio, as you look around for deep value in good
operators now that the recent selling looks done, could do a lot worse.
Conclusion
IKN600 is done, we end with bullet points:
 It took a few days to get fully into gear, what with vaccinated interruptions and
decisions on whether to keep the zombie-economy walking, but “Time To Be Bullish”
started to pay off at the end of the week.
 Wesdome (WDO.to) isn’t the stock profile for me today but for those of you looking for
the right Tier 2, this is a great price. When the market falls back in love with the stock
(and it will), you will be able to sell them back to people with smiles on their faces.
 This week we bid farewell to Cartier Resources on the list, my sale should happen
forthwith. Next up, Tinka (TK.v) looks ready to give its promotion a try and allow me to
cash the portfolio back up before Christmas. And you never know if Kuya Silver
(KUYA.cse) runs hard again, there’s a chance to sell the partial purchase for a quick
profit and come back later. ECR’s replacement, Copper Mountain, is there for other
reasons.
 For pleasure, it’s a lovely place. For business, avoid Ecuador at the best of times, so
double avoid it today because these are not the best of times. The scenario in the next
three months for mining companies brings thoughts of Taleb and his Black Swans.
I thank you in advance for any feedback. Our Top Pick stocks are Minera Alamos (MAI.v) and
Rio2 Ltd (RIO.v). Flash updates will be sent if required by events.
I wish you good hand-washing fortune, ladies and gentlemen.
Mark
26

Footnotes, appendices, references, disclaimer
(1) https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/global-copper-market-in-
supply-glut-in-2020-2021-8211-iwcc-58811137
(2) https://roskill.com/news/copper-chinese-imports-the-world-is-not-enough/
(3) https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/copper-supply-faces-struggle-
to-keep-up-with-growing-demand-60471925
(4) https://www.cumtn.com/investors/press-releases/2020/copper-mountain-announces-c-15-million-bought-deal-1860/
(5) https://www.cumtn.com/site/assets/files/3735/2020-11-19-cp-cmmc.pdf
(6) https://finance.yahoo.com/news/trilogy-metals-announces-2021-program-134400370.html
(7) https://finance.yahoo.com/news/tinka-provides-drill-program-ayawilca-120000548.html
(8) https://www.bnamericas.com/es/noticias/buenaventura-programa-inicio-de-construccion-de-san-gabriel-para-1t
(9) https://www.instagram.com/tv/CH0dhLyp6Hp/?utm_source=ig_embed
(10) https://opisantacruz.com.ar/2020/11/20/mineria-y-los-vecinos-en-contra-y-en-defensa-del-medioambiente-a-favor-
en-defensa-del-desarrollo/
(11) https://www.df.cl/noticias/empresas/mineria/minera-candelaria-anuncia-salida-de-su-presidente-en-medio-de-
compleja/2020-11-19/215730.html
(12) https://www.newswire.ca/news-releases/lundin-mining-announces-new-collective-agreement-with-candelaria-aos-
union-810200342.html
(13) https://larepublica.pe/economia/2020/11/19/jaime-galvez-asumira-como-titular-del-ministro-de-energia-y-minas/
(14)
https://es.wikipedia.org/wiki/Anexo:Sondeos_de_intenci%C3%B3n_de_voto_para_las_elecciones_generales_de_Ecua
dor_de_2021
(15) https://www.eltelegrafo.com.ec/noticias/candidatos/1/yaku-perez-dolarizacion-estabilidad-
economica?__cf_chl_jschl_tk__=612088dd29f0e6b2eb1015b12a0c93765dbe399b-1606002538-0-AVmDbupCnQM-
S4BBa9LV9J5YTTIH1pOl92VBz-
0iJp8p3YEQmzSKGImAZti20ojVTyrBa3zN6UVsj7kpj4GwJqrQ8Dx969m_pPmcBp7r48b9lquGCCKXJlz-
BGtnHfuhJ362r0WYliBrPBm3Jw6kKufgjmetImSR1hsx4VCPjcSlleZh8-
MJLgkbi1fsvgmMIT0KhihdWPgGdSI0jwkgvNjYgOiU2X9OqrxURAcSjC2c_45gtnUf-
N6ar50GuWn0r6a0mB8uTJFsnJEkA4Tk-tyNJqmB8VaInl3lVJZEO8uqH9BoQiCVs6a8uEQVeftbKn1d-
2Zot5UZOzfXNmkfc-KaQpv5RaKRXX6zATkI-
PH3vRM6z14CqhbRIteNRIm0wIHv45X_aF2Unx1LfrdqcZK345IQh2ks3jCUccHuyTpYfcnYjVkf7NWLUJrl716Ar3f_Aq8B
Y4_0Yx_DCfIuvx4
(16) https://mailchi.mp/miningwatch/invitation-to-ilo-complaint-presentation-involving-canadian-mining-companies-in-
ecuadors-failure-to-respect-fpic?e=c7bc8b1ac2
(17) https://www.wesdome.com/news/press-releases/index.php?content_id=389
27

Stocks To Follow Closed Positions 2019
Closed in 2019 closed close price
Atico Mining ATY.v jan'19 C$0.55 24-Jul-16 C$0.32 41.8% patience ran out, made room
Candente Copper DNT.to jan'19 C$0.075 3-Ago-18 C$0.05 -33.3% tiny trade, made room for new
B2Gold BTO.to feb'19 C$2.11 12-Set-14 C$4.05 91.9% Took 1/2 profits, reduce size
Western Copper WRN.to mar'19 C$0.80 20-Ene-19 C$0.81 1.3% Spec trade that didn't work
B2Gold BTO.to mar'19 C$2.11 12-Set-14 C$4.15 96.7% Took rest of profit.
GT Gold GTT.v mar'19 C$1.17 10-Oct-18 C$0.90 -23.1% Took loss. Story changed
NovaGold NG apr'19 U$3.84 13-Ene-19 U$4.15 -8.1% Short that didn't work, sm loss
Zinc One Z.v jun'19 C$0.47 14-Set-17 C$0.025 -94.7% clearing out dead trade
Amarillo Gold AGC.v jun'19 C$0.24 22-Ago-18 C$0.20 -16.7% clearing out dead trade
New Gold NGD aug'19 U$1.44 31-Jul-19 U$1.23 14.6% ST short win thru Q2 earnings
IMPACT Silver IPT.v aug'19 C$0.39 21-Jul-19 C$0.46 18.0% took a quick profit
Fiore Gold F.v aug'19 C$0.34 26-May-19 C$0.56 64.7% Took profit, 2q19 avg
Chakana Copper PERU.v oct'19 C$0.84 22-Mar-18 C$0.16 -81.0% Exploreco trade fail. Want space
Wesdome Gold WDO.to oct'19 C$2.37 14-Oct-17 C$7.57 219.4% Sold half, profit taking
Superior Gold SGI.v oct'19 C$1.46 8-Abr-18 C$0.47 -67.8% Failed sm spec on Au. Moved on
Amerigo Res ARG.to nov'19 C$0.91 23-Set-18 C$0.50 -45.1% worst trade of year, hefty loss
Guyana Goldfields GUY.to dec'19 C$0.94 14-Abr-19 C$0.56 -40.4% taking the loss, financials weak
Tethyan Res TETH.v dec'19 C$0.30 8-Set-19 C$0.16 -46.7% tiny trade, word of probs in co
Stocks To Follow Closed Positions 2018
Closed in 2018 closed close price
Amarillo Gold AGC.v jan'18 C$0.38 24-Mar-17 C$0.31 -18.4% Cut away losing trade
Riverside Res RRI.v jan'18 C$0.39 27-Jun-16 C$0.31 -20.5% Cut away losing trade
Eros Res ERC.v jan'18 C$0.175 1-Mar-17 C$0.16 -8.6% CEO sudden exit, not good
Excellon Res EXN.to jan'18 C$1.54 9-Oct-16 C$1.66 7.8% 4q17 poor, one too many bad qtrs
Wesdome Gold WDO.to jan'18 C$1.68 15-Dec-17 C$2.06 22.6% Near-term trade block, took profit
Sabina G&S SBB.to apr'18 C$2.06 17-Dec-17 C$1.77 -14.1% Near-term trade, bad timing, small
B2Gold BTO.to May'18 C$2.11 12-Sep-14 C$3.67 73.9% sold 25% to reduce exposure
Lara Expl. LRA.v May'18 C$0.65 11-Feb-18 C$0.58 -13.8% Spec on Brazil didn't work
Solitario XPL June'18 U$0.72 19-Mar-17 U$0.41 -43.1% Failed trade, may return in 4q18
SolGold plc SOLG.to July'18 C$0.475 19-Nov-17 C$0.415 -12.6% cut, trade didn't perform
Pan American PAAS July'18 U$17.90 1-Jun-18 U$16.30 8.9% modest win on short position
NGEx Res NGQ.to Sep'18 C$1.01 22-Oct-17 C$1.00 -1.0% Closed to reduce Argentina exp
Sandstorm Gold SAND Oct'18 U$3.73 17-Apr-16 U$4.13 10.7% partial sale to raise cash for GTT
Aldebaran Res ALDE.v Nov'18 n/a n/a n/a n/a liquidate spin out of REG
Stocks To Follow Closed Positions 2017
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 1-Jul-12 C$0.05 -78.3% Give up, a disaster trade
Wesdome Gold WDO.to Feb'17 C$1.72 28-Aug-16 C$3.00 74.4% Target hit, sold, good trade
Belo Sun BSX.to Mar'17 C$0.90 30-Jan-17 C$0.90 0.0% failed near-term flip trade
Lara Expl. LRA.v Mar'17 C$1.15 8-Apr-12 C$1.05 -8.7% cut to make room for new trade
Rye Patch Gold RPM.v Apr'17 C$0.31 2-Sep-16 C$0.32 3.2% cut for doubts & new stock
Cordoba Min. CDB.v Jun'17 C$0.75 15-Sep-16 C$0.63 -16.0% closed
Constantine Metal CEM.v Aug'17 C$0.135 9-Apr-17 C$0.28 107.4% spec trade closed, good win
Red Eagle Min. R.to Sep'17 C$0.67 13-Dec-16 C$0.27 -59.7% IKN's biggest failure in years
Starcore Intl SAM.to Sep'17 C$0.61 10-Jan-15 C$0.31 -49.2% Patience ran out
B2Gold BTO.to Dec'17 C$2.11 12-Sep-14 C$3.39 60.7% sold small portion for liquidity
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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
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
Please note that due to space considerations closed positions 2009 to 2014 are now
available on request, or were published in any edition to IKN553 (end 2019).
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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