IKN #607Premium

The IKN Weekly
Week 607, January 10th 2021
Contents
This Week: In today’s edition, A week is a long time in politics, The GLD inventory charts show
a modest positive.
Fundamental Analysis: Copper Mountain (CMMC.to) 4q20 production and 2021 guidance.
Stocks to Follow: Orezone (ORE.v), Kuya Silver (KUYA.cse), Pucara Gold (TORO.v), Minera
Alamos (MAI.v), Rio2 Ltd (RIO.v), Fiore Gold (F.v), Excelsior Mining (MIN.to).
Copper Basket: Overview, Regulus Resources (REG.v).
Producer Basket: Overview, Buenaventura (BVN).
Tiny Dogs: Overview, Golden Pursuit (GDP.v), Precipitate Gold (PRG.v), QC Copper (QCCU.v).
Regional Politics: Copper and its upcoming Covid-19 supply disruption, Ecuador’s miners
resigned to losing the Cuenca referendum vote Peru: The “Mining Corridor” is unblocked
Colombia: Quebradona looks set to be permitted.
Market Watching: Minera IRL (MIRL.cse) hires Haywood, McEwen Mining (MUX) showing
signals of financial distress, Mene Inc (MENE.v) 4q20 sales results.
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 edition
 Covid-19 is still a market moving entity and hasn’t done with us just yet, but for
wonderful magical Monetary Theory reasons its influence seems to be good and The
Roaring Twenties continues to be the broad market theme. Nothing seems to stop the
rampant bull now those clever economists have cracked the code and will keep us in
some sort of permanent Goldilocks sweet spot forever. Or not, but in the meantime and
until this house of cards falls, our focus markets of metals and mining will be in a sweet
spot as the USD is debased while world economies rebound.
 U$5.00/lb copper in our current 1q21 quarter? I think it’s possible (and $4 is a given).
The reasons are set out in today’s main ‘Regional Politics’ note, Covid-19 is about to
move the copper market in our favour, the upcoming supply crimp from the Andean
Second Wave (Chile and Peru) has been ignored. Not for much longer, though.
 In company news Copper Mountain (CMMC.to) delivered a excellent bonus to the
portfolio with a blowout Q4, plus strong guidance for FY21. That’s in today’s main
Fundies section, which gets back to something like normal and does numbers and
things. Meanwhile in Market Watching we cover the production and sales at Mene
(MENE.v), my idea of a long-term moonshot, which also delivered a strong quarter.
A week is a long time in politics
The IKN Weekly isn’t going to step outside of its brief and do the events of last week in The
USA, in detail. We just go with the fact the week was so extraordinary, the world seems to have
1

forgotten that one flat week ago the same President Trump was leaning on the Governor of
Georgia and trying to get him to “recalculate” 11,800 votes, or that in the days before the
Wednesday bloodletting (figurative and sadly literal) he tried to force his own Veep into doing
something that would have been called a bloodless coup by the rest of the world.
So politically a week like few others, but there are trades to run and to buy-low-sell-high, we
need to consider the events for their likely consequence that in the near future (I underscored
“near”) we get a little calm, or at least a truce. Extremist political views on either side aren’t
disappearing overnight, but neither are such groups suicidal and they’ll know to stand down for
a while. The most insightful name I saw for Wednesday’s events was “The Beer Belly Putsch”,
after the Beer Hall events in Munich in 1923 and nicely adapted for ironic style points. The brief
attempt of a far right mob to take over the Munich parliament (State, rather than National) was
also badly organized and finally somewhat farcical, but its organizers were smart enough to lay
low for a while and eventually went on to bigger things. While we shouldn’t worry about that
level of escalation, I’d expect the far right wing groups at the centre of last week’s violence will
adopt the same going-to-ground strategy now.
Therefore, threats of disturbances at State Capitol buildings on January 17th (or 19th) aside,
we’ve likely seen enough steam let off and ironically, the same US Congress posing an
evidence-free threat to the inauguration of its next President suddenly wants to Give Peace A
Chance (fwiw, I think he’ll now limit the madness to pardoning himself then go golfing until it’s
all over). So be it, and any thin veneer of personal cynicism cannot hide how welcome a calmer
Capitol would be as the main consequence of last Wednesday isn’t Trump’s exit stage left, but
the speed at which the Grand Old Party will be able to heal. With the pendulum moving back to
“normal politics” (standard bickering between donkeys and elephants would be manna from
heaven) the Republican Party was going to turn on Trump sooner or later, we now know it’s
sooner. First and foremost for the cardinal sin of the loss and becoming a one-term President
but, as November has become January, GOPpers were handed a growing stack of reasons to
turn on Trump, culminating in the loss of the Georgia run-off election and the Senate majority.
[Sidebar: Friend, resident of Georgia USA and voter, reader “R” noted that in last week’s State
run-off the Republican candidate Bubba MacDonald won the Public Service Commission
election. Through the campaign, MacDonald refused to engage on anything Trump and he
ended with more votes than the Republican Senator candidates did. In his words, “It really was
about Trump”]. The internal warfare was set to start on January 21st but with the extraordinary
acts of last week, Trump handed the GOP and most of its Senate stalwarts all they need begin
the process and even come out of this looking okay (in the eyes of supporters). Even hardcore
cases such as Lindsay Graham now have an out card, something that also applies to Vice-
President Pence and for the record, I think Veep Pence did extraordinarily well last week under
the most trying of political circumstances possible and deserves great credit for his actions. He
managed to remain loyal to oaths made to his ticket, party and country while sending at least
two diplomatically telling signals that he was no longer aligned with POTUS. He and I may be
politically light years apart, but history should judge him favourably.
I digress. Last week merely speeded up processes already in motion, now Trump gets outcast
to OAN while the GOP mainstream and Fox News fall in love and at that point, campaigns start
for the 2024 election. FWIW and unrelated to our focus of near-term calm, I’d hazard a guess
Trump won’t even run ‘24 as that way, instead of fighting for position with the new breed of
populists politicos his administration has brought forward, he can champion one (or two) and
regain political capital without risking further damage to that dangerously frail ego. As for the
longer-term ramifications of what we saw last week, that’s for political scientists and
philosophers rather than these pages but I’ll indulge in just one line of thought: History has
clear lessons for anyone who cares to look, one is that the type of lumpen mob we saw last
week is not confined to any country or any political creed. Not to the right, not to the left, not
to America, not even to the 21st century, the lumpen mob has always existed and always will.
What does not always exist are leaders who activate and use the lumpen mob for their own
ends. Be they politically left or right (Mao of China even published formal theory on its use),
those individuals are the most despicable of politicians.
2

Enough politics! What really matters to us in the financial world last week is in the chart below,
no surprises in seeing just when these two squiggly lines diverge:
The ten day chart of the gold and copper continuous contracts was all about currency weakness
until Wednesday and the news the Senate was Democrat. The tide turned on that news and not
on the mob attacks, the split even more pronounced when we consider how the underlying
stocks to each metal performed, as soon as we knew Biden held all the keys:
Then gold turned further South when the new Dem controlled House politicos reminded us just
how stupid they are. One of them was quoted as saying he wouldn’t vote for the Biden U$2,000
stimulus check and the market took him at his word, before he could roll it all back the damage
was done (so expect a rebound in silver tomorrow Monday). It’s that kind of nervous
atmosphere at the moment and long past time for the dumb left to be as quiet as the dumb
right, but it does cast light on the way that Wall St tends to mistrust a Dem-led house more
than a Rep-led house, a new factor for the next four years.
The GLD inventory charts show a modest positive
After several weeks of negative signalling, the GLD inventory chart and the inventory/price ratio
derivative turned in a positive start to 2021. This weekend inventories are up nearly 15 metric
tonnes (mt) since we last paid attention, the exact number 1182.11mt.
GLD gold holdings, Jan 2020 to date (metric tonnes)
1300
1250
1200
1150
1100
1050
1000
950
900
850
800
3
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 02/11/72 02/21/7 02/21/71 02/21/72 12/1/6
mt
source: SPDR GLD data

As for our “are the instos interested?” ratio, that moved from 6.5X to 6.82X on Friday when the
price of gold dropped without Wall St adding to the selling. Anything around 7X is “Blue
Horseshoe Likes Gold Bullion”, seeing the squiggly line move back up that way is good.
7.60 GLD: Inventory/Price Ratio, Jan 2020 to date
7.40
7.20
7.00
6.80
6.60
6.40
6.20
6.00
5.80
5.60
4
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 72/11 7/21 71/21 72/21 6/1
Source: SPDR data, IKN calcs
Which means the answer is “yes”, the large financial institutions that use GLD as their direct
entry to bullion exposure are still interested in holding their gold, no matter what Trump or
Bitcoin do next.
Fundamental Analysis of Mining Stocks
Copper Mountain (CMMC.to) 4q20 production and 2021 guidance
Today’s fundies note is an easier sell than in the last few weeks. After non-typical editions over
the Christmas period, then New Year edition that’s a slog to compile but always ends up looking
little more than a list of companies with a few comments, as from today we get back to normal
with a standard analysis of a covered company and its recent numbers. Today’s note is also an
easier sell because it’s a copper stock in a copper bull market (see ‘Regional Politics’), but above
all the 4q20 production NR published by CMMC.to Thursday pre-bell (1) did this to the stock:
That 30.4% move makes CMMC a double in two months and your author’s better-late-than-
never purchase of the stock last year that much luckier, all thanks to the perfect storm now
brewing around the company:
 Record production in 4q20
 Strong guidance for 2021, improved production and forecast costs in check
 A clear emphasis on cash collection in FY21
 The Canadian Dollar’s improvement helps the CMMC balance sheet
 The copper bull rampant at the right time

Before we dive in, be clear that the market was absolutely right to bid up Copper Mountain last
week. In one NR the game has changed at this stock, so anyone not in yet shouldn’t feel too
bad, there’s still time to climb aboard and enjoy the ride. Time to explain why I like these
numbers so much and why you should too, beginning with this chart showing the record
quarter just posted in context with all others back to 2014 (if you got a database, flaunt it):
CMMC.to: Copper production, per qtr
5
1.91 9.91 7.12 3.02 4.81 5.91 4.02 3.91 0.91 2.12 0.22 7.02 1.81 2.71 9.02 5.91 9.91 0.02 3.81 6.02 6.81 5.81 3.61 6.81 5.71 1.81 9.81 1.32
25
22.5
20
17.5
15
12.5 10
7.5
5
2.5
0
41q1 41q2 41q3 41q4 51q1 51q2 51q3 51q4 61q1 61q2 61q3 61q4 71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4
Mlbs Cu
source:company filings
Not only the best ever quarter for main product copper, but gold was also at record levels with
8,959oz produced and your author’s guess of 8,600 oz sold. As CMMC gets (close to) spot,
estimated income just for gold in Q4 improves CAD$5.5m on the previous quarter.
CMMC: Gold production and sales, per qtr
4256 4846 2357 9436 4218 5747 7217 6207 2296 4407 8946 0046 0026 8006 9316 4636 9947 9826 0366 2326 9598 0068
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 4q20
source: company financials, IKN sales est 4q20
Even the small silver by-product component is worth a shout-out this weekend, as we compare
the 67,901 oz sold by CMMC in 3q20 at an average of U$23.74/oz, for gross proceeds of
U$1.61m. This time in 4q20 with CMMC having produced 144,934oz and silver maintaining high
prices, we estimate a conservative 130,000 oz sold at U$25/oz for U$3.25m and double the
gross income of 3q20.
Once estimated sales and average received prices are calculated, we get a chart like this (and
we cover the 2021 below):
CMMC.to: Quarterly Earnings overview
140
120
100
80
60
40
20
0
-20
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 tse02q4 tse12q1 tse12q2 tse12q3 tse12q4
source: company filings, IKN ests
srallod
fo
snoillim
revenues COGS Gross profit

This chart is a close-up of the above chart, exactly the same data in an easier visual for last
year and this:
CMMC.to: Quarterly Earnings overview
140
120
100
80
60
40
20
0
-20
6
02q1 02q2 02q3 tse02q4 tse12q1 tse12q2 tse12q3 tse12q4
source: company filings, IKN ests
srallod
fo
snoillim
revenues COGS Gross profit
First we cover 4q20 and our previous estimate for top line revenues of C$96m has been
adjusted (a.k.a. blown out the water) by our new forecast of C$112m, an adjustment of around
+7.7c/share. Our costs estimate is pegged at C$65m, we know costs will rise to the higher end
of the company’s AISC range ($1.85/lb to $2.00/lb Cu) because they told us so in November in
their literature and the 3q20 conference call.
As for the 2021 estimates, CMMC guided strongly for the year with the promise of back-end
production hikes, too. The company’s 85m to 90m
lb range puts the midpoint at 22.5m lbs copper per CMMC.to: Operating profit
quarter, which is where we base our first three
quarters. We then model a production raise as its
ball mill expansion is forecast to come on line at
that point. On the costs side to 2021, we model
some cost creep as the year gets older, plus more
expensive op-ex in 4q21 as the new tonnage
throughput regime begins. Which brings us to the
pale blue columns and operating profit at CMMC,
this chart focuses on the dataset (right). The
market liked the 2q20 and 3q20 profits, it will
continue to like the money generated by CMMC in
the reports ahead, this model assuming the
following average received prices:
4q20: Copper U$3.20/lb, Gold U$1,850/oz, Silver U$25/oz
2021: Copper U$3.50/lb, Gold U$1,900/oz, Silver U$25/oz
What we are left with is a company that will return strong bottom line net profits for the
quarters to come. Here’s the chart for net income, we go back to the longer view for necessary
perspective:
0.81-
8.82 3.93 0.44 0.64 0.34 0.14 0.74
60
50
40
30
20
10
0
-10
-20
-30
02q1 02q2 02q3 tse02q4 tse12q1 tse12q2 tse12q3 tse12q4
source: company data, IKN ests
srallod
fo
snoillim
CMMC.to: Net income, per qtr
50
40
30
20
10
0
-10
-20
-30
-40
-50
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 tse02q4 tse12q1 tse12q2 tse12q3 tse12q4
source: company filings
srallod
fo
snoillim

In so many words and with quarterly fluctuations, the decision by CMMC to dedicate less capital
to development and expansion projects next year signals the company intent, they are going to
collect cash and that means driving results to the bottom line. Unlike most juniors we cover,
CMMC is an operationally mature company and we don’t need to stop at gross margin or
operating profit to get a good handle on its financials, at this company Rule One* applies.
As a result, we forecast CMMC to return regular and impressive profits around the
C$33m/quarter range. With 207.5m shares out and some slight and reasonable rounding, this
points us to a quarterly EPS of 16c, enough for other companies’ annual profits. I see no reason
why we cannot apply a reasonable, indeed modest 6X multiple to this base metals producer on
those type of upcoming results, this indicates a new price target for Copper Mountain
(CMMC.to) of C$3.80 per share, representing an upside of 61% to this weekend’s price. And all
it needs to get there is for copper to stay above U$3.50/lb and the company to execute its 2021
guidance correctly.
As for sensitivity to metals prices, the main one is copper and I’m not running those spread
charts today (no blinding with science, the message is simple and very bullish), those can come
when we do the detailed financials of YE and then 1q21. However there’s a simple hack on the
stock price sensitivity to spot copper fluctuations, as if CMMC produces 85m lbs Cu in 2021,
every U$1.00 price rise adds CAD$102m to the annual top line, or 49.4c/share (at 1.2/1 forex).
Therefore…
U$3.50/lb copper = C$3.80 price target for CMMC
U$3.75/lb copper = C$3.92 price target for CMMC
U$4.00/lb copper = C$4.05 price target for CMMC
U$4.25/lb copper = C$4.17 price target for CMMC
…et cetera. Admittedly rough and ready, but even the low number would be a good result for
new buyers.
Not so much on the balance sheet this weekend, however, I’m cheating and playing the catch-
all “things are getting a lot better” card for the moment. I’m loathe to forecast too precisely
even for four quarters out as too much can happen, but if we consider the operating guidelines
and the same average U$3.50/lb model seen above for operations, then take a few broadstroke
guesses on the timing of CMMC’s budgeted capex deployment, here’s one of the charts
generated by the model:
140 CMMC.to: Cash and ST
120
100
80
60
40
20
0
7
71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 tse02q4 tse12q1 tse12q2 tse12q3 tse12q4
source: company filings, IKN ests
Let’s be clear, CMMC might not decide to do that with the profits it is set to generate from
operations. We may see acquisitions, we may see a faster paying down of debt (your author’s
preferred option), we may see a dividend, all sorts of likely and unlikely options. However, if left
to collect cash (and this desk suspects that is so) CMMC is set to re-shape its balance sheet
once and for all this year and nobody should bat an eyelid if we see C$60m or C$70m added to
treasury. It’ not that CMMC is about to turn a corner, what you see above lags reality as the
corneris now fully turned and, as long as guidance and prices maintain, the accumulation of

asset value is now nigh-on automatic for the first time ever at the company. No more lagging
capex works or re-organization payments, all at the right time for the copper bull market.
That’s enough balance sheet and we can look more closely another day, but there is one item I
want to point out because CMMC’s double-edged sword of being a Canadian Dollar company
holding US Dollar Debt is currently working in its favour, as seen here in the six month chart for
the CAD/USD pair:
The Loonie was marked at 0.75/1 by CMMC in its 3q20 financials, when it comes to the Q4
numbers it will be able to use 0.78/1. To understand its effect, here’s Note 8 from the CMMC
3q20 financials, covering its financial debt position:
Back the, the U$119.956m it owed in USD was carried to the balance sheet at CAD$160.009m,
but if CMMC carries the same U$120m in its 4q20 financials, it is now down C$6m to C$154m in
local currency (in ballpark terms, every penny change in the CAD/USD forex adds/subtracts
around C$2m from the CMMC balance sheet).
Discussion and conclusion
We leave other positives around CMMC to another day and its year-end financials, which will
allow closer number crunching on what their expanded fixed asset base is worth under the new
copper price deck:
 Long mine life at current throughput (literally 50 years)
 New Ingerbelle expansion
 Eva in Australia
 New treasury cash to develop and expand them all
 The Loonie now moving favourably for the company versus the Greenback
Today is about the blowout Q4 production numbers and the strength of guidance given by
CMMC for 2021. I make no bones about it, this was a pleasant surprise and not part of the buy
thesis on Copper Mountain when taking the plunge last year, however I will toot the trumpet
just a little by underscoring the way that the house preference for conservative financial
modelling makes surprises more likely to the upside, less to the downside.
8

But it wasn’t just this desk, as a result of last week’s news CIBC raised its target on CMMC from
$2.40 to $2.75, while Haywood upped from $2.00 straight to $3.00, the latter a target more to
my taste but the blanket reaction by brokerages to up targets on this NR is the real story;
CMMC blew Bay, Howe and Wall Streets away.
However, this desk sees no need to play coy with the market with cute +20% target prices
when it’s obvious to anyone who can use a Casio that CMMC now has the financial position to
go a lot higher. Long a victim of bad luck, the stars have aligned for it at just the right time, the
bonanza copper prices coming as the company finishes paying for its upgrades and new
purchases and with the main operation finally running on rails. Add to the mix the pleasant
surprise of a blowout Q4 and bonus guidance for the year ahead (based on higher grades and
easy to deliver) plus the new market appetite for copper stories and the inference is clear, this
stock is going a lot higher. The new 12 month target for Copper Mountain (CMMC.to) here at
The IKN Weekly is C$3.80, based on the above framework and 6X PE multiple, at the low end
of the price a base metals company can command. We leave you wuth a reminder of this
publication’s imperfect call on CMMC.
*Make a profit
Stocks to Follow
The portfolio had a strange week, and not one to read too much into. Of our 16 open positions,
just six were winners (MAI.v, RIO.v, F.v, CMMC.v, ORE.v, MIRL.cse) but for some reason, those
six contain both Top Pick stocks plus the two highest ranked of the current recos list. There
were no UNCH stocks, which means therefore 10 losers but only one of those was a larger,
10%+ drop and as it was Pucara (TORO.v down 12.0%), a stock with a price that I want lower
before adding any more to a very small position, I was even happy with that one. As for
winners, Copper Mountain (CMMC.to up 30.4%) stood out but seeing all the top four names
positive in whipsaw circumstances is just as pleasing.
We currently have 16 open positions in the Stocks to Follow list and until we sell another it’s
staying like that, even though we are one over our normal, self-imposed limit. Just ten are in
the green, six are in the red, that’s a shift of three stocks from last week and not something I’d
like to repeat too often.
9

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$0.70 233.3% New $1.14 tgt Aug'20 #1 idea
Rio2 Ltd. RIO.v STR BUY C$0.83 22-Apr-18 C$0.91 9.6% $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$1.53 56.1% $2.00 target, small growth PM
Copper Mountain CMMC.to STR BUY C$1.40 22-Nov-20 C$2.36 68.6% New C$3.80 tgt, top Q4
Excelsior Mining MIN.to STR BUY C$0.98 10-Mar-19 C$1.11 13.3% Added again Dec'20, Cu'21
Norsemont Mining NOM.cse STR BUY C$1.55 6-Sep-20 C$1.01 -34.8% bot 3x for 2021 run
Trilogy Metals TMQ STR BUY U$1.84 15-Sep-19 U$1.99 8.2% Added Dec'20, Cu for 2021
Royal Road Min. RYR.v STR BUY C$0.155 17-Mar-19 C$0.32 106.5% Model paying off in Nica
New Gold NGD STR BUY U$0.76 9-Feb-20 U$2.14 181.6% 3q20 tgt $2.80 confirmed
Great Bear Res GBR.v STR BUY C$15.83 26-Aug-20 C$15.82 0.06% M&A major tgt, added IKN590
Orezone ORE.v BUY C$0.79 21-Jun-20 C$1.14 44.3% Now in news period, trade buy
Kuya Silver KUYA.cse spec buy C$1.66 8-Nov-20 C$2.76 66.3% new Peru Ag jr w/good plan
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$0.73 -8.8% Will add at under 65c
Minera IRL MIRL.cse hold C$0.195 22-Jul-12 C$0.145 -25.6% hold until further news
Long-term non-mining hold
Mene Inc. MENE.v LT Hold C$0.65 6-Dec-20 C$0.64 -1.5% LT bet on jockey&horse,will add
Closed in 2021 closed close price
none
2015 to 2020 annual closed positions in appendices below, 2009 to 2014 closed positions in editions IKN553 or earlier
Now for some notes on covered stocks:
Orezone (ORE.v): After adding 10% the week before, ORE threatened to do the same last
week and banged up against its $1.20
resistance (again) before finishing the week
up a useful 4c. The reason was this (2), news
that the company has awarded the
construction contract to Australian mine
engineering specialists Lycopodium. However,
it was news that could have waited a few days
and the company is slightly guilty of publishing
a NR that announces an upcoming NR. The
real news and near-term price driver will be
the Bomboré financing package and we’ll have
details by the end of the month. At that point
it’s in a window of potential M&A activity and
though there’s a case to be made for taking
the profits and running at that point, I think
ORE.vkre-rates successfully on the financing deal anyway and won’t need to be bought out to
make us more money. So, it’s easy to hold and even easier on this sprightly action (chart above
right), plenty of people wanted in last week.
Kuya Silver (KUYA.cse): KUYA is getting on
the (virtual) conference trail and ramping up
the marketing, first with a Crux Investor 45
minute segment out this weekend (3) and this
week via Red Cloud and a webinar on
Wednesday (4), I’ll be on that one. In trading,
10

KUYA go extra crazy over the 37% move of the week before and was generally available at
C$2.80, but at least Friday’s fakey sell-off provided evidence of support, immediate support
showing at $2.50:
There is the chance this runs further this week on marketing and silver bullishness. If it does
and goes high enough, I won’t have a problem in selling and taking a quick double, standing on
the sidelines and getting back in (more cheaply) at a later date. It would have to be a double at
least, but no personal sales without a Flash update.
Pucara Gold (TORO.v): This one dropped with no bounce on Friday, but remains inside a
wide trading range that holds little appeal. At 80c and double the price of recently minted IPO
shares, the chart may show some sort of new baseline but there’s nothing solid in the funnies
of that support. With assays now at lab, we should start getting real news back from TORO and
the maiden Lourdes drill campaign soon, at that point this desk will have a better idea as to
whether there’s the potential of a real trade instead of the current and rather annoying foot-in-
door at an elevated entry price. If a lower price window doesn’t show in Q1, the most likely
choice will be to move on.
Top Picks Minera Alamos (MAI.v) and Rio2 Ltd (RIO.v): As the house policy of ignoring
its Top Pick stocks continues, another line to remind readers that despite all the good things on
copper, Copper Mountain, Mene, Fiore, Orezone and all the others, these two companies are
the best idea I have. We have seen action
starting to pick up on the ask at both these
stocks and volume is a good thing, but lay them
both against GDXJ and the reality is clear, they
are still in “market perform only” mode:
The catalyst to change the inertia will be news
(of course), we can expect plenty from both
companies as Q1 rolls out. In particular, I’d like
to take an extra line and bang on the table
about Rio2 Ltd today, the price you get to pay
compared to its medium-term financial potential
is as close to a gift in risk/reward terms as they
come. Come the day Rio2 finalized and
announced its (approx) U$150m financing package for Fenix from world-level financial backers,
this desk will laugh hard at the Canadian sell side brokerage anal ysts who pooh-poohed the
Fenix project as being too low grade and “with water issues”. Their premature and often
arrogant dismissals of Fenix, now compared in 2021 with real backers investing real money, is
not a great optic for the quality of analysis
available at your average full service desk these
days.
Fiore Gold (F.v): Fiore is due to publish its
4q20 production numbers in he days ahead,
assuming that happens expect a good look at the
numbers of our growth rocket next weekend. In
trading up 9c and was up further midweek,
spiking at the bell on Tuesday on talk of a
production beat.
Excelsior Mining (MIN.to): Down a penny
while other copper stocks flew, MIN is now also
bang-on-table cheap, compared to what it will be
able to produce and the price at which it will be able to sell its copper this year. At some point
the news flow will begin, the market will remember it exists, then production ramp up and a
real re-rate. It’s been far too long.
11

The Copper Basket
After one week of 2021, The Copper Basket shows a gain of 5.01% to level stakes.
company ticker price 1/1/21 Shares out Market Cap current pps gain/loss%
1 Solaris Res SLS.v 6.08 104.67 732.69 7.00 15.1%
2 Copper Mtn CMMC.to 1.81 207.5 489.70 2.36 30.4%
3 Oroco Res OCO.v 1.85 185.11 331.35 1.79 -3.2%
4 Excelsior Min. MIN.to 1.12 239.063 265.36 1.11 -0.9%
5 Marimaca Cop MARI.to 3.25 64.358 225.25 3.50 7.7%
6 Western Copper WRN.to 1.57 135.6 215.60 1.59 1.3%
7 Amerigo Res ARG.to 0.80 180.77 160.89 0.89 11.3%
8 Regulus Res. REG.v 1.07 101.85 98.79 0.97 -9.3%
9 Chakana Cop PERU.v 0.60 93.2 59.65 0.64 6.7%
10 C3 Metals CCCM.v 0.115 375.17 46.90 0.125 8.7%
11 Aldebaran Res. ALDE.v 0.455 93.64 41.20 0.44 -3.3%
12 Element 29 Res ECU.v 0.45 66.7 31.35 0.47 4.4%
13 Doré Copper DCMC.v 1.00 37.44 31.08 0.83 -17.0%
14 Crown Mining CWM.v 0.105 87.53 10.50 0.12 14.3%
15 Chibougamau CBG.v 0.165 46.695 8.41 0.18 9.1%
NB: All stocks in CAD$ Portfolio avg 5.01%
It’s simple enough to spot the ten winners and five losers from the colours on the chart above
this weekend, our single week of trading is also 2021 year-to-date. There were several big
moves, including the best in Copper Mountain (CMMC.to up 30.4%), then the seemingly
unstoppable Solaris (SLS.v up 15.1%), other list newcomer Crown Mining (CWM.v up 14.3%)
and the leveraged producer Amerigo (ARG.to up 11.3%), with Chibougamau (CBG.v up 9.1%
bubbling under the 10% line. To the downside, the worst of the week was Doré Copper
(DCMC.v -17.0%), with Regulus (REG.v -9.3%) bubbling under. Overall a positive week, driven
by this:
Copper Futures blew above U$3.70/lb on Thursday and while the nerves on Friday took the
edge off the run, there were still plenty of buyers to support the move as volume in the above
chart suggests. This doesn’t surprise, considering what South America has in store for us
starting around March (see Regional Politics for why copper supply is about to be crimped by
Covid-19 again). As for reasons, here’s the Captain Obvious quote from a Reuters journalists’
Rolodex choice of the day (5):
“If the Democrats manage to take control of the Senate it is seen as a bullish sign as
President-elect Joe Biden will have an easier time to get his policies through and his
party has opted for more stimulus than the Republicans,” said commodities broker
Anna Stablum of Marex Spectron in a note.
Agreed. More on that in the main strategy piece on copper this week, in Regional Politics (or all
12

places. We turn our attention to world copper inventories, in the regular weekly slot:
 Inventories returned to flashing their tight supply signal last week, the world aggregate
dropping when it should have started rising already. Overall, 8,356 metric tonnes (mt)
were lost from world stocks, the total standing at 256,670mt this weekend.
 The main story was the SHFE, which saw that early year influx of 12kt copper two
weeks ago, but no follow-up in week one of 2021 and 4,337mt were lost, leaving the
weekend’s total at 82,342mt. That’s the wrong direction.
 There was no arb action with the LME either, that system losing 5,525mt of its own
from warehouses and dropping this weekend’s total to 102,425mt. The 100k line and
its Red Alert Alarm Bell are at hand.
 Comex was the only relief, adding 1,506mt in its own rather separate market for end
users. Stocks total 71,903mt this weekend.
Here’s the Shanghai-only inventories “How Low Can You Go?” chart, once again pointing lower
from its lowest ever levels:
Shanghai Futures Exchange Warehouse Stocks, Dec'15 to date
500000
450000
400000
350000
300000
250000
200000
150000
100000
50000
0
13
ht6ced 6102
dr3naj
ts13 ht82 ht72 ht42 dn22 ht91 ht71 ht41 ht11 ht9 ht6voN ht11 ht8 ht5beF 7102
ht5raM
7102
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 9102
ht31naj
ht01 ht01 9102
ht7rpa
ht5yam 9102
dn2nuj
ht03 ht82 9102ht52pes dn22 ht02 9102ht71von ht51 0202ht21naj ht9 ht8 ht5rpa 0202dr3yam ht13 ht82 0202ht62luj dr32 ht02 ht81 ht51 0202ht31ced 1202
ht01naj
Mt Cu
source: Cochilco
Your author believes things are only going to get worse in 1q21, so be long the metal. We did
something on everybody last weekend and there wasn’t that much news, so just a note on
Regulus this weekend:
Regulus Resources (REG.v): REG management gave the market a positive signal on Friday
when three of the inner circle bought shares on the open market. The fact they bought under
CAD$1.00 is probably connected to that price level when the Vancouver promo pump was run
on the stock last year. As that turned into yet another exercise in wasted money, we await to
see how this company defends its marketing and corporate development departments in 2021.
It’s a woeful situation at REG. If you had told me
a year ago that copper would be trading at over
U$3.70/lb and this stock was still at a Loonie,
even with its issues identified at that time I
wouldn’t have believed. However, all the inside
buying in the world cannot disguise how
management took their eye off the community
relations ball at one of the worst possible
moments, the result another multi-quarter delay
in plans.
I’m not going to dwell on the incomplete and drill
assays reported by the company last week, but
on the blog at the time I estimated the next drill
assay wouldn’t come from the company until July, what with rainy seasons and elections to

contend with. That may be a little tardy, but as the company already has the poorest of track
records when it comes to delivering news on time, it’s also realistic. REG how has six months to
fill, we await to see how its tries to remain relevant while copper juniors around it progress.
The Producer Basket
After one week of 2021, the Producer Basket shows a gain of 1.31% to level stakes.
company ticker price 1/1/20 Shares out Mkt Cap (U$Bn) current pps gain/loss%
1 Newmont NEM 59.89 803.36 50.44 62.79 4.8%
2 Barrick GOLD 22.78 1779.04 42.70 24.00 5.4%
3 Agnico Eagle AEM 70.51 242.99 17.53 72.14 2.3%
4 Kirkland Lake KL 41.27 272.984 11.27 41.30 0.1%
5 Kinross Gold KGC 7.34 1260 9.31 7.39 0.7%
6 Pan American PAAS 34.71 210.17 7.44 35.41 2.0%
7 Endeavour Min EDV.to 29.62 246.2 6.25 30.46 2.8%
8 B2Gold BTG 5.60 1064 5.76 5.41 -3.4%
9 Alamos Gold AGI 8.75 392.73 3.50 8.90 1.7%
10 Pretium Res PVG 11.48 187.254 2.08 11.10 -3.3%
Prices in U$ except EDV.to (share price in CAD$ and mkt cap in approx USD) Port. avg 1.31%
With the start of the year comes some numerical housekeeping about EDV: Please note that we
start the clock running on prices this year with the closing prices of Friday, January 1st 2021.
This because we include Endeavour (EDR.to) in the 2021 basket and as that is Canadian-only
listed, it traded in its thin market that day while USA was closed. Also, please note that the
share price of EDV is registered in CAD$, but in order to keep a reasonably level playing field its
market cap is converted into US Dollars at a standard 1.2/1.
That done, now for The Producer Basket week one and even with the dump Friday, the larger
producers held up and the week was a winning one Barrick (up 5.4%) and Newmont (up 4.9%)
were the two biggest climbers of the eight winners, with the smaller and more leveraged
B2Gold (BTG) and list newcomer Pretium (PVG) the only two losers. Also for what its worth,
week one’s basket average of +1.31% is virtually identical to that of our benchmark during the
first week of trading, GDX up 1.39%. Finally, thanks for the feedback on the new list (seems to
have gone down well).
In other news, two of the three leavers from the list last week were losers, including a hefty
7.7% lost by Buenaventura (BVN) and while this is likely to be the last mention of the company
in this section for a while, let’s note the obvious reason:
The market sold the news we reported in IKN606, last weekend.
14

The Tiny Dogs
After one week of 2021, the Tiny Dogs show a gain of 0.86% to level stakes.
company ticker price 1/1/21 Shares out Mkt Cap current pps gain/loss%
Antler Gold ANTL.v 0.205 61.348 15.95 0.26 26.8%
Aston Bay BAY.v 0.045 163.975 6.56 0.04 -11.1%
Constantine Met CEM.v 0.17 45.4 8.63 0.19 11.8%
Contact Gold C.v 0.115 240.757 25.28 0.105 -8.7%
Golden Pursuit GDP.v 0.22 40 8.80 0.22 0.0%
Manitou Gold MTU.v 0.045 230.79 11.54 0.05 11.1%
Precipitate Gold PRG.v 0.240 106.241 27.09 0.255 6.3%
QC Copper QCCU.v 0.315 105 26.25 0.25 -20.6%
Red Pine Expl RPX.v 0.040 477.22 16.70 0.035 -12.5%
Warrior Gold WAR.v 0.090 91.818 8.72 0.095 5.6%
Prices in CAD$, data from TSXV basket avg 0.86%
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 cases 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.
It’s only one week, but I was quietly pleased in the way the new The Tiny Dogs basket saw
plenty of volatility and movement in both directions that all-but cancelled each other out. A
good sign, reminiscent of the wider market for these tinycappers and that’s the whole idea, to
be as representative as possible. The mix of mostly gold socks to some base metals looks right,
too. It would all have looked a lot better but for Friday of course, that type of whipsaw activity
hurts lower volume tinycaps more than the larger sized precious metals companies, this week
was no exception. As for the count, there were five winners, four losers and one UNCH stock,
but no need for written details today as the table has all the single week data. New pick Antler
(ANTL.v up 26.8%) was the best performer, new pick QC Copper (QCCU.v down 20.8%) was
the worst performer.
Golden Pursuit (GDP.v): Thank you to all for reminding me the ticker is GDP.v, not GPR (the
horrid Great Panther’s ticker, of course). The gross domestic product stock of the venture
exchange, new pick GDP was the only unchanged stock.
Precipitate Gold (PRG.v): Immediate
positive news from PRG, the only Tiny Dog
on my current potentials shopping list. PRG
announced it had obtained its drilling permit
for the upcoming GOLD-funded program and
that means action stations. PRG is now in-
play as an active drill speculation, so expect
volatility. However, this is no empty pump
and if they find something of worth this
becomes an obvious trade with an obvious
15

customer for any shares bought. The hourlies chart (above) shows how market interest picked
up on the permit news, a good week that would have been even better if not for the fractured
selling on Friday. That should repair tomorrow morning.
QC Copper (QCCU.v): This stock dropped hard, but only from its overbought position end-
year to a more reasonable price. This is where it should have been marked for the whole year,
but that’s water under the bridge. QCCU is still up multiples from its recent inert floor price, last
week makes it slightly more buyable before any real news shows. One of those tiny copper
stocks that may pay to follow more closely this year, until hard results from the upcoming drill
program show I will be watching only. Now the name is out there, all the follow-on promo in
the world counts for naught without a real catalyst.
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
Copper and its upcoming Covid-19 supply disruption
Unusually today’s bullish note on copper is located here, in the Regional Politics section of the
Weekly, because its circumstances are both LatAm specific and newsworthy (or will be soon).
We set as understood the many and varied tailwinds currently pushing copper higher, including
rampant demand from China, a debasing currency of counting from the USA and worries about
supply crimps at certain large mines. Instead we add a new factor, as for some reason the
market has not yet put two and two together an seen the start of the Second Wave Covid-19
infections in Chile and Peru, likely to cause more than just an isolated supply crimp. If you
weren’t bullish before today’s note, consider the potential of seeing buyers ready to pay any
price in order to secure physical end-user supply in our current 1q21, with prices above
U$4.00/lb now a given and the potential to see temporary spikes to U$5.00/lb in the weeks
ahead. Hopefully, I now have your attention.
The statistical signal is still weak compared to the peak of cases in August (note, Southern
Hemisphere midwinter), but the last four days in Peru have seen more new cases detected than
medical discharges for Covid-19, the first multi-day stretch since September. The so-called “UK
Strain” was confirmed for the first time in Chile in late 2020 and last week was confirmed in
Peru for the first time (6), with multiple other suspected cases in an outbreak in Lima. And
talking of Chile, even the headline stats show the start of the spike, yet to fully unfold:
And when one considers the now overwhelming evidence coming from Northern Hemisphere
countries that the Second Wave of Covid-19 is worse than the first, seeing Chile’s longer-term
chart like this…
16

…means the upturn is only just getting into gear. The upturn is not confined to Chile (or Peru)
either, this weekend Bolivia reports its Second Wave underway, with hospitals again full to
overflowing. Health Minister Edgar Pozo stated (7), “Obviously, we are in the second wave” and
new President Luis Arce issued an edict for widespread and free testing in the country. Also
true for Colombia, its Second Wave has already started and in his national address on the
subject on Thursday, President Ivan Duque took the role of the stern parent (8): “We have to
be aware of what we did in some places, in some families. Those things done badly in
December bring consequences and this message is very important for all Colombians, because
we warned you.” He went on to warn his children (fellow Colombians) that if they continued to
relax their use of masks and continued to get together in groups, the consequences arrive 14 to
15 days later.
However, Colombia and Bolivia are not going to change the price of copper in the next few
weeks, whereas the news out of Chile and Peru will. At least part of the problem is the lax state
of affairs on the streets of Lima and Santiago as according to trusted sources, everything your
author now witnesses in the capital of Peru is happening in the capital of Chile, not to mention
it being reportedly worse in most provincial towns and cities. Just by leaving the house you
know the population has let its guard down:
 Social distancing rules ignored
 Maskless people more frequent in the street (in Peru it’s the law)
 Masks often badly worn now (nose uncovered)
 Population removes mask on sitting down in any café or restaurant (magic immunity)
 Idem when their cellphone rings (impossible to hear with your mask on, it seems)
 Etc (e.g. crowds of people pushing past each other as they look for Christmas gifts)
It’s also exactly the same type of street chatter as in March and April last year, on how bad the
Second Wave now seems in Europe and how Peru doesn’t seem to be suffering the same way
or getting hit as badly. The same magical exceptionalism that did for Europe twice last year, did
for The USA and will now do for Andean South America, currently congregating on its beaches
and at countless indoor maskless get-togethers. From there, it’s back to work and straight into
what will be a hotly contested Presidential election in Peru, that rigmarole will drag on around
three months.
However, we also know that rich countries have more options than poor countries (start with
health infrastructure) and can afford to lockdown, either partially (e.g. most of Europe this
weekend) or totally (e.g. nearly all The UK) and with close on a year’s worth of experience,
each country will add its local favour to social restrictions. Less so in countries such as Peru and
Chile, as not only do they get to hospital saturation far more quickly and have to make those
“hard decisions”* on triage, but the country simply doesn’t have the money to shut down again
(as readers on these pages will understand, we were close to a true food hunger problem last
year). Peru’s governmental response has been to prepare for the worst, for example order the
installation of 10 “modular hospitals” (9) in strategic locations around the country, designed
around pre-fab and truck container spaces to relieve hospital overcrowding. Or in so many
17

words, Peru knows its choices are limited, the start of an effective countrywide vaccination
program is months away at best, its government knows it cannot afford to close the country
down so money is spent on cure, rather than prevention (10). Meanwhile, the demographic of
death is worth considering. Peru has just over 1m cases of Covid-19 and as of this Saturday
midday, 38,145 confirmed deaths related to Covid-19, a mortality rate of 3.8% (much higher
than the industrialized North, easy to see why when you visit provincial hospitals and health
centres). However, inside that headline 68% of deaths are males and over half of all deaths are
males over 50. That’s the demographic required by mining management, with sedentary
lifestyles that make mining run in South America whether blue collar or white collar, (you’ll
know whether your junior mining geologist is “bootleather” or “computer screen” without
asking). These are the people who run mining companies, they run departments in mining
companies, they run machinery in mining companies and they are about to get and then spread
Covid-19, probably UK variant, to their fellow employees and fall ill enough while doing so to
disrupt their company’s operations. If it were the blog, you’d now get “Hilarity ensues”.
Companies will find their own ways to mitigate and the system adopted in large mines of “Unit
Bubbles”, where small groups of close work colleagues interact only between each other while
on site, mean wholesale closures are less likely, but supply crimps of the type we envisaged
back in May last year, where 20% or 30% is shaved from quarterly production totals, is far
more likely Disruption in the copper supply chain is a certainty in the weeks ahead, right at a
time when demand is ramping in China and supply is already tight as a drum. As a result,
calling copper higher in 1q21 is too easy. We need to consider just how high it could go as end
users scramble for real supply as another large porphyry/skarn operation in either Peru or Chile
suspends operations due to an outbreak of Covid-19. The potential for stoppages is clear, two
examples should suffice. Chile Codelco unions have already shown themselves militant in the
face of rising Covid-19 outbreaks and will put the safety of their members first, so don’t think
twice about them shuttering a mine at a moment’s notice if required. Meanwhile in Peru it will
always be case-by-case at the mine, but the big mines are world class operations these days
and need to adhere strictly to the rules; if they get too many cases they won’t be able to fudge
through with so many people watching, temporary shuttering for 14 days out of 90 could
become a typical report in Q1 MD&As. Yet another factor in Peru is the transport chain, with
truckers and ports workers providing plenty of extra potential weak links and eventual time
delays. Added to the perfect storm around the copper pit at the moment, a significant near-
term supply glitch could send the market into overdrive as real end users demand coverage.
The bottom line is that for some reason, the world knows the Second Wave is going to happen
to the Andean Cordillera countries just like everywhere else. The world also knows that 40% of
its copper comes from Chile and Peru, but they haven’t put those two facts together yet and
realized what it could do to the price of copper in an already extremely tight world market for
the metal. This desk presumes copper higher in the weeks to come and real supply hits will be
part of the mix, there’s even the possibility of panic setting in and traders pushing copper to
record and memorable levels. Either way, be long the metal.
*Only hard for the families, mind.
Ecuador’s miners resigned to losing the Cuenca referendum vote
It’s not what they say, it’s the way they say it. During a TV new show interview last week in
Ecuador, ex-Minister of Mining Federico Auquillas made a strong case for mining to be a key
element of the next government of Ecuador, no matter who won the election. However, when
asked about the parallel referendum to be run in the Cuenca region that uses the protection of
several local rivers as a pretext for a de facto referendum on mining, Auquillas’ tone made it
clear that the pro-mining side had already resigned itself to losing. He said (translated) (11):
“We are losing a great opportunity to have an activity which generates employment, wealth and
development, which brings new technology.” He then mentioned the two projects most
affected, Rio Blanco (Chinese capitals) and Loma Larga (INV Metals), which will not be
retroactively affected by any decision to disallow mining and will still hold their concessions, but
in practical terms they become useless.
18

Peru: The “Mining Corridor” is unblocked
Further to last weekend’s note, Peru’s so-called “mining corridor”, vital to much of the copper
concentrate that gets produced in several large mines in the South, was finally unblocked last
week when locals in the community/town of Velille accepted a deal from the combo of
government and company. In other words the town got U$3m for shaking them down and as a
reminder, here’s how I put it last weekend:
We will see intermittent roadblocks and protests there until the cows come home, as just for one
example the current round of protesters are demanding nothing less than a change in the
constitution. What will happen is that they agree on a “social fund” sum and the trucks are
allowed through again and the corporate/government process of putting out fires moves on,
continuing at other villages. Lather rinse repeat, especially during election periods.
The events of the week proved that out.
Colombia: Quebradona looks set to be permitted
Colombia needs a mining win and it looks as though it’s about to get one. Last week AngloGold
Ashanti made the news in Colombia as it was fined 288m Peso (around U$83,000) for apparent
environmental lapses made during one of its drilling programs at the Quebradona copper
project in 2011 (12). The tone of the report is negative and Anglo’s lawyers and people say
they don’t know why they need to pay this but will if required by law, however the real story is
that the fines re now being levied and that must be good for the project As this December 2020
report notes (13), the Quebradona project Environmental Impact Study (EIA) has been in the
hands of the government enviro authorities (ANLA) for a lengthy period (it took 14 years to
compile, according to the company) and a decision must be close, as in December AngloGold
Ashanti reported it was in the process of replying to observations made by ANLA (the process is
normally called “subsanar” in Spanish and normally indicates a pending decision). Seeing
AngloGold fined may look bad at first sight, but it has all the look of a country and company
now clearing the decks for a much-needed permit approval and positive for mining in the
country. There will be plenty of pushback from the green camp if this presumed permit success
happens, but once awarded it becomes very difficult to un-award such a document and
Quebradona has enough local support to see it through.
Market Watching
Minera IRL (MIRL.cse) hires Haywood
The news last week (14) that Minera IRL has (we quote) “…engaged Haywood Securities Inc. to
act as financial advisor to Minera in support of the Company’s plans to finance the development
of its Ollachea project and the repayment of balances owed to Corporacion Financiera de
Desarrollo (COFIDE) as further described in the news release dated November 12, 2020”, was
useful in more than one way. First and foremost, it allows us to confirm our presumption of
deceit and lies at the centre of MIRL throughout the extended negotiation period with COFIDE.
In that time, one of the strategies used by MIRL to keep stakeholders (e.g. you, me) on the
hook was incessant talk of late-stage financing deals on the table, all that we needed was to
clear the COFIDE mess. Even after the weak deal with Cofide, MIRL continued late last year
with its talk of two open CAs and late stages rounds of DD taking place, however last week’s
message from MIRL was very different. A simple statement:
You do not go to the time and expense of hiring a full-service Canadian
investment bank to run a financing or sale process if you already have either
a financing or a sale lined up, Q.E.D.
MIRL’s hiring of Haywood is not a good signal, it tells us we’re no closer to a funding
announcement than we were weeks/months/years ago. However, it does allow us once and for
all to call its CEO for what he is, which brings the advantage of not having to believe a word
19

that comes out of his mouth. This will surely help in the sales process started by Haywood for
MIRL, because that brokerage would now have taken this company on for any equity raise.
That would presume the current management would take Ollachea to production and, with the
best will in the world toward the efficient on-site team at Corihuarmi, there’s no COO
Minebuilder at Minera IRL, no procurement structure, no VP Exploration and no chance those
roles are covered by a lawyer CEO who has done nothing for the company in the last two years.
Therefore, Haywood has been brought in to sell and the most likely buyer is Chinese capitals of
some shape or form. Perfect business sense of course and Peru would not offer the type of
political or diplomatic objection that did for the TMAC deal with Shandong, but it would be the
height of irony to see the supposedly loving and caring President community head deliver his
community into the hands of those lovers of human rights. Again, considering what we now
know about Diego Benavides, it would not come as much of a surprise.
As for our investment, the Haywood engagement improves the chances of a straight sell-out of
MIRL to the highest bidder and as the project is still there and as economically robust as ever
(works at U$1,300/oz gold, please check the spot price), there’s no reason to suppose that with
professionals now taking over we won’t get purchase interest. As there’s no reason to sell, the
position of reluctant holder continues, underscored by the likelihood of nothing happening until
mid-year earliest, but with a little more optimism about an eventual deal of some sort.
McEwen Mining (MUX) showing signals of financial distress
On Friday evening (with this NR showing Sunday (15)), McEwen Mining (MUX) announced a
C$15m flow through financing in the following way:
TORONTO, January 8, 2021 - McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is pleased to
announce a financing to fund development of the Froome deposit, which is expected to reach
commercial production in Q4 2021, located at the Fox Complex in the Timmins region of
Ontario.The financing consists of a US$11,821,000 (Cdn$15,000,000) private placement offering
(the “Offering”) of 11,628,000 flow-through common shares (within the meaning of subsection
66(15) of the Income Tax Act (Canada)) priced at US$1.02 (Cdn$1.29) per flow-through common
share (the “Offering Price”) led by Cantor Fitzgerald Canada Corporation as agent and sole
bookrunner. The Offering is expected to close on or before January 28, 2021 (the “Closing”) and
is subject to customary closing conditions, including approval from the TSX and NYSE.
This comes just days after MUX closed a separate flow-through financing for $9m on December
31st and that’s weird. It also suggests financial stress at MUX. As for the why, if you made me
guess (and it’s only that), my suspicions would run to the way the rules for cash remittance
from Argentina have recently changed and, perhaps, drawings from Minera Santa Cruz are now
held up (or smaller than expected, or both). That would fit in both timing and the way MSC
should now be throwing off free cash flow
with silver where it is, but the main
takeaway is that for some reason, MUX
needs to run near-consecutive flow-through
financings for a build-out due finished at
the end of this year, i.e. was almost
certainly fully budgeted already. And this is
the rub, we are left to wonder just why
MUX needs extra funds at a time like this.
With mis-firing assets (Gold Bar, Black Fox)
and a share price again threatened by
NASDAQ review at its current sub-U$1.00
level (it would be a third review, whether
those count as strikes is unknown), MUX is
a corporate entity showing signs of cash starvation and financial weakness. The flow-through as
announced Friday, with a NR put out Sunday midday by the company (presumably negative talk
had already travelled) only goes to highlight the perceived weakness.
20

It’s this desk’s contention that, MUX is currently whistling past something of a financial
graveyard. Well that might be too dramatic, but with a new CFO brought in at end 3q20 (16)
with a brief to do necessary hardline cost-cutting (her CV is of the ilk), what we’re probably
looking at is a temporary period of potential cash crunch. That is obviously not a good look, so
the house theory says this small extra funding allows MUX to aim the money it will eventually
get from operations toward other projects, rather than delay any build-out. And as catching the
turnaround point in distressed mining companies is one of this desk’s favourite trades (SAND,
NGD, etc) I’m keeping a close eye on MUX for the next couple of quarters. Trades are possible
as MUX strengthens, or a possible crisis moment could give a deep value entry point if this
latest stop-gap funding doesn’t turn out to be enough. Even Rob McEwen can only cry wolf so
many times.
Mene Inc (MENE.v) 4q20 sales results (in CAD$ unless stated)
Today’s note is a blueprint for the way we will manage coverage of our “other stock” going
forward. As this is a) a long-term position to which I expect to add slowly and b) not a mining
stock, we will keep coverage and notes on Mene Inc (MENE.v) down here in ‘Market Watching’,
with regular updates on quarterly results.
Those start today with our precious metals retailer announcing its sales for the all-important Q4
period last Monday, January 4th pre-bell (17). Here’s a 10 day chart:
MENE sold slightly on the news, but the longer term chart (e.g. see below) says we’re still very
much in the trading range and volume is not going to drive it down. The Q4 period is vital for
MENE and any jewelry retailer, it takes in the holiday period and as around 40% of all retail
jewelry sales in The USA happen in December, there was a lot riding on good numbers. Here’s
a chart:
MENE: Precious metals sales in Kg, per qtr
80
70
60
50
40 75
30 53 50 56 20 44 39
10
0
3q19 4q19 1q20 2q20 3q20 4q20
source: MENE, IKN ests
21
)tP
ronim
htiw(
uA
gK
The raw sales number of 75kg gold was what we wanted to see, physical sales up 41.5%
compared to the same quarter of 2019 and the company now over any interruption caused by
Covid-19 (Q3 growth was +27.3%). Here’s another chart:

MENE: Revenues per qtr
8 7.3
7
6 5.157 5.423
4.654
5
4 3.51 3.218 3.439
3 1.986 2.733 2.457
2 1.039 1.393
1
0
22
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 tse02q4
C$m
source: company filings
Dollar sales (we remind readers we are in Canadian Dollars unless stated) were at the upper
end of house expectations, the YoY increased also 41.5%. This is a growth story and we know
a raw revenue of C$7.3m isn’t going to blow the roof off results or scare Tiffany’s into
submission immediately, but we are not long MENE for its topline stats. The only metric that
didn’t sparkle compared to 2019 was piece of jewelry sold, up “just” 17% YoY. Still good, but it
implies that rather than ship more cheaper pieces, MENE moved larger ticket objects. With its
high satisfaction and customer re-order rate that makes sense, but the move to word-of-mouth
and influencer/social media advertising may be slower at getting the word out to potential new
customers.
Here is our estimate on costs, we again group together the two MENE cost items to come up
with a company running at breakeven:
MENE.v: Costs breakdown
868.0 361.1
777.1 725.2 450.2 159.1 465.2
557.3 441.4
125.2
548.3 3.5
8
7
6
5
4
3
2
1
0
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 tse02q4
$m
COGS operating exp
source: company filings,IKN ests
In the above chart, I am being rather conservative and in fact, I wouldn’t be at all surprised to
see MENE return an operating profit instead of the forecast all-but flatline result (below):
1 MENE.v: Operating income, per qtr
0.5
0
-0.5
-1
-1.5
-2
-2.5
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 tse02q4
C$m
source: company filings
If anything a modest operating income that matches Q3 but $200k here or there are notes in
the margin. Q4 should see MENE as a company that can fully support its operational costs and
return a profit, all that’s left to do is this:

MENE: Inventories per qtr Supplies
C$m Finished Goods
18 Work in Prog
16 Raw Mat.
14
12
10
8
6
4
2
0
4q18 1q19 2q19 3q19 4q19 1q20 2q20 3q20
source: company filings
The inventory cycle at MENE.v means it builds stock (raw precious metals as well as finished
pieces) as its busy end-year period approaches, then draws down on inventory during the
holiday rush. All normal, but it means MENE not has to replace around C$5m of stock in the
4q20 and 1q21 reporting periods and that will pull the company to an overall net loss.
It’s only a matter of time before it starts being able to pay for its own inventory purchases.
Regarding the timing of “true breakeven”, I’m loathe to make too many guesses but expect
MENE to leave 2021 as a company that pays for its own inventory and with room to spare.
From that point on, we watch as a model with near-limitless expansion potential is left to
expand (and that’s why I’m looking long-term on this trade). The house model looks keenly
toward the next two quarters for the information required to make better guesses.
The bottom line is a writer and happy holder of MENE.v shares who liked the 4q20
quarter preliminary numbers a lot. At this point, guessing to the conservative side on costs will
keep the model from predicting a mega-rapid financial growth but if the 2021 cost numbers
start beating estimates regularly MENE will reach critical mass sooner rather than later. I’m
giving myself the full year to position to my own satisfaction, from there the plan is to sit back
and Roy Sebag do the work and he’s smarter than you and I put together.
Conclusion
IKN607 is done, we end with bullet points:
 Copper has run hard and looks ready to run even harder. Filter out the near-term noise
and a market looking to make you sell into nerves, a market that cannot get enough
copper and a predictable hit to the supply chain could be all it takes to turn copper bulls
into panic buyers.
23

 On the subject of copper our newest position to take advantage of the metal, Copper
Mountain (CMMC.to) did us proud last week and underscored the bargain price at which
we were able to buy. This is going a lot higher, even if copper doesn’t.
 Our regular and discreet long-term coverage of Mene Inc (MENE.v) begins, its Q4
coming in at the top end of house expectations and setting the company up nicely for
2021. MENE is growing fast, by mid-year we should have a better idea on how fast.
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 trading fortune, ladies and gentlemen.
Mark
Footnotes, appendices, references, disclaimer
(1) https://finance.yahoo.com/news/orezone-selects-lycopodium-epcm-contractor-133000707.html
(2) https://finance.yahoo.com/news/kinaxis-spinnaker-team-drive-supply-110000209.html
(3) https://www.youtube.com/watch?v=Mi7Ojvba78A
(4) https://mailchi.mp/kuyasilver.com/watch-david-stein-sits-down-for-interview-with-snn-network-
6092258?e=bc5b07049f
(5) https://www.reuters.com/article/global-metals/metals-copper-hits-near-8-year-high-on-more-us-stimulus-hopes-
idINL1N2JH0E4?edition-redirect=in
(6) https://www.latercera.com/mundo/noticia/peru-confirma-primer-caso-de-la-variante-britanica-de-covid-
19/5GVMKM5OTFA4VP2OYY7D2DWFWU/
(7) https://larepublica.pe/mundo/2021/01/10/bolivia-colapsa-ante-segunda-ola-y-rapida-escalada-de-casos-de-covid-19/
(8) https://larepublica.pe/mundo/2021/01/10/lo-hecho-en-diciembre-trae-cuentas-de-cobro-duque-advierte-a-
colombianos/
(9) https://andina.pe/agencia/noticia-coronavirus-essalud-instalara-10-hospitales-contingencia-a-escala-nacional-
829225.aspx
(10) https://data.larepublica.pe/envivo/1552578-casos-confirmados-muertes-coronavirus-peru
(11) https://www.eltelegrafo.com.ec/noticias/economia/4/expertos-perspectivas-sector-minero-pais?X
(12) https://www.infobae.com/america/colombia/2021/01/05/anglogold-senalo-que-por-mala-interpretacion-de-la-norma-
se-les-interpuso-una-multa-millonaria/
(13) https://sostenibilidad.semana.com/impacto/articulo/procuraduria-advierte-por-impactos-ambientales-de-mina-
quebradona---colombia-hoy/58279
(14) https://www.juniorminingnetwork.com/junior-miner-news/press-releases/2063-cse/mirl/90520-minera-irl-announces-
engagement-of-financial-advisor.html
(15) https://mailchi.mp/mcewenmining/mcewen-mining-announces-flow-through-financing-7s2pvwf3ak?e=4356b15770
(16) https://www.mcewenmining.com/about-us/management-team/management-details/default.aspx?ItemId=31e1a0e5-
6e20-4b61-b9da-9e7078ca27a8
(17) https://finance.yahoo.com/news/mene-inc-reports-preliminary-key-123000874.html
24

Stocks To Follow Closed Positions 2020
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
Cartier Resources ECR.v Nov'20 C$0.155 3-Aug-18 C$0.25 67.7% Exact close price TBA
Tinka Res TK.v Dec'20 C$0.195 19-Apr-16 C$0.195 0.0% Closed on a round trip fail
2015 to 2019 annual closed positions in appendices below, 2009 to 2014 closed positions in editions IKN553 or earlier
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
25

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
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
26

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.
27