IKN #633Premium

The IKN Weekly
Week 633, July 11th 2021
Contents
This Week: In today’s edition, Gold doing its job in your portfolio, The GLD tracking charts also
constructive toward gold, Inflation on deck.
Fundamental Analysis: Harte Gold (HRT.to): Don’t fear the receiver.
Stocks to Follow: Mene Inc (MENE.v), Copper Mountain (CMMC.to), Argonaut Gold (AR.to),
Cartier Resources (ECR.v), Strategic Metals (SMC.v), Minera IRL (MIRL.cse), Aldebaran
Resources (ALDE.v), QC Copper & Gold (QCCU.v), Rio2 Ltd (RIO.v).
Copper Basket: Overview, Current personal copper holdings, Solaris (SLS.to).
Producer Basket: Overview, Pretium (PVG).
Tiny Dogs: Overview, Manitou Gold (MTU.v).
Regional Politics: This week in Peru.
Market Watching: A heads-up on Orezone (ORE.v), Kuya Silver (KUYA.cse) redux, McEwen
Mining (MUX) unveils its copper plans.
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
 Today’s main fundamentals section takes advantage of the apparent lull in mining
market activity, the Summer Doldrums making themselves present early this year. We
therefore use the space to take a closer look at the interesting financial developments
at Harte Gold (HRT.to), as the newly beaten-down share price of just eight Canadian
cents this weekend may provide a profitable entry window.
 Just two lines on Rio2 Ltd (RIO.v) n today’s edition, found in the brief company notes in
the ‘Stocks to Follow’ section. Please read both of them.
 Also in ‘Stocks to Follow’, a reminder that QC Copper (QCCU.v) is approaching its major
catalyst period and fresh news on the timing of that trade.
 The political risk of Peru is beginning to drop. The world is also ready to accept a dose
of standard left-wing fiscal policies, as the Castillo cabinet begins to take shape and
point to the centre-left, rather than anything radical or damaging.
Gold doing its job in your portfolio
For the third week running, it was a generally negative week for mining stocks tempered by
more positive and optimistic trading at the end of the week. Gold stocks were mostly off, with
GDX down 0.2% week-over-week and the more leveraged GDXJ down 1.8%, so while it’s highly
unlikely to have caused major damage done to anyone’s portfolio, the drudge market for mining
stocks continues (The Doldrums?). However, gold was up on the week (GLD proxy +1.15%)
and that usually means bullion is doing a job of work, protecting portfolios from a nervous
market and providing a safe haven for capital when the equities markets are rough. Right?
1

Wrong. The above chart is an excellent, near-dated illustration of the point this desk has been
trying to make for the last few weeks. At the top, both gold (GLD proxy) and the broad markets
(S&P500 proxy) sail steadily higher, however mining stock speculators still don’t seem to have
got the full message as GDX/J selling and volatility continues unabated. There is no need for
goldbugs “fight the Fed” or feel jealousy toward the broad markets, as the very same MMT-
based policies being used by the Fed in its current “toolbox of options” are conducive to higher
gold prices. It therefore begs the question: As both stocks and gold are headed higher, why are
people still selling off mining stocks as if they were radioactive given the slightest opportunity.
Thursday and Friday trading action shows there are active traders now buying the dips.
Gold bullion is one of the ultimate defensive plays and last week, it did its job in my overall
portfolio, offsetting some of the losses in the equities. However, current Fed policy means I
plan to have my cake and eat it in the near future because the Fed’s fixation on maintain a
stable Dollar means everything else will go up.
The GLD tracking charts also constructive toward gold
The current period, with inventories now climbing inside GLD and its inventory/price chart
churning and rebounding from a sub-6.0X level in fine style, has had the look of a positive turn
point for gold for a number of weeks. Still true this weekend:
GLD gold holdings, 2018 to date (metric tonnes)
1400
1300
1200
1100
1000
900
800
700
600
500
2
81/1/1 81/3/1 81/5/1 81/7/1 81/9/1 81/11/1 91/1/1 91/3/1 91/5/1 91/7/1 91/9/1 91/11/1 02/1/1 02/3/1 02/5/1 02/7/1 02/9/1 02/11/1 12/1/1 12/3/1 12/5/1 12/7/1
mt
source: SPDR GLD data
There was a slight drop of 2-and-bits tonnes o the week, but levels of 1,040mt and above have
held since mid-May and the longer-term
chart above (2018 to date) affords a level of 7.40 GLD: Inventory/Price Ratio, 2018 to date
calm to gold. As for our trader’s ratio chart, 7.20
inventory/price made that sharp breakout 7.00
6.80
move from the sub-6 level in exactly the way
6.60
it should at a turn point. Since then we’ve
6.40
seen some weakness but at the longer term 6.20
chart indicates, that’s de rigueur for a 6.00
successful move higher: 5.80
5.60
2/1/8102 11/2/8102 32/3/8102 2/5/8102 11/6/8102 12/7/8102 03/8/8102 9/01/8102 81/11/8102 82/21/8102 6/2/9102 81/3/9102 72/4/9102 6/6/9102 61/7/9102 52/8/9102 4/01/9102 31/11/9102 32/21/9102 1/2/0202 21/3/0202 12/4/0202 13/5/0202 01/7/0202 91/8/0202 82/9/0202 7/11/0202 71/21/0202 62/1/1202 7/3/1202 61/4/1202 62/5/1202 5/7/1202
Source: SPDR data, IKN calcs

Inflation on deck
The week ahead brings us plenty of macro data, with inflation talk the likely central issue as on
Tuesday, US BLS announces the Consumer Price Index (CPI) reading for June, then Wednesday
the Producer Price Index (PPI). According to Bill McBride at Calculated Risk (1), consensus this
weekend is CPI +0.5% (+0.4% core) and PPI +0.5% (+0.5% core). Also on Wednesday, Fed
head Jay Powell gives his six monthly Monetary Policy Report to the US Congress, which is
always good for a Libertarian sound bite or two and to top it all off, the fEd also publishes Beige
Book the same afternoon. Quite a list of catalysts, so by Thursday lunch this desk expects
Twitter to be alive to the sound of hard money advocates telling you to buy silver and gold (but
mainly silver), all to protect yourself against imminent US hyperinflation. This desk remains
more sanguine about the prospects of a long-term inflation problem in The USA and will take
the under on next week’s hard money hype.
Fundamental Analysis of Mining Stocks
Harte Gold (HRT.to): Don’t fear the receiver
Back in March this year, on the announcement of its deal with New Gold (NGD) as strategic
partner, we took time out and ran a first ruler over Harte Gold (HRT.to). That was the main
fundies section of in IKN618, dated March 28th 2021 and at the time, we liked the deal it had
struck with NGD but saw little in the way of a trade. Here’s how the note finished that day:
“The company’s new backers and refinanced debt package make it more attractive, but it
still has a long way to go to prove itself and notably, we’ve assumed it makes losses and
gets to the end of 2021 on a near-perfect execution of a forward guidance that assumes
big throughput and grade improvements, to boot. A lot can still go wrong at HRT, but
that’s less of a concern for NGD as they have their interest in the asset, not the company.
On the other hand, if we retail buy in tomorrow we get to feel the full force of any results
underperformance.
“Harte Gold (HRT.to) has made great strides recently, but still has a long way to go to
escape its debt pile. If it puts in a strong 2021 and then attracts enough second stage
sponsorship to bring its expansion 100% online and relieve some of its debt, it may be a
great buy in 2022. However, the likelihood of further losses this year mean it’s one that’s
best watched from the sidelines for the moment.”
Trading at 16c and 17c at the time, HRT is now an 8c and down around 50% since IKN618, so
I’ve made worse calls than that one. The concept of buying up a cheap Canadian domiciled gold
producer at the same time as a bigger player such as NGD was attractive, but once we looked
at the numbers (and even assumed HRT did everything well, which they clearly haven’t) the
trade wasn’t one for us in 2021 as it stood. However, the reason for its drop to this weekend’s
deeply discounted 8c is also the reason we retail grunts may have a trade opening in this stock.
Our job today is to pick up from where we left off in IKN618 and get up to date with HRT.
Recent news and events: And plenty has happened since our original fundies note (copies
on request, as usual). Price charts provide a way to catch up, so I’ve chosen three timescales
for your consideration and two without any
scribbles. First the two year chart, which
demonstrates something mentioned on the
open blog about HRT more recently (May 26th,
to be exact (2)), that the company has a long-
term resistance level at the 10c-or-so price
point. This is where the market has decided its
default marker for financial problems lays, so
seeing HRT well below ten cents this weekend
means it’s under extra, akin to the bleakest
outlook during the Covid-19 crash phase:
3

A visual that speaks for itself. The second chart (below) covers 2021 YTD, this time annotated
to include dates of NRs and price moving events at the company:
Notes and expanded thoughts in a moment, let’s round off the visual aids with the most recent
moves, the ten-day chart sobering visual of the latest price drop on heavy volume:
With near-term context in place, we do notes on the second chart:
1) The last time HRT delivered positive news to the market was back in the series of NRs
starting on March 18th, with news of New Gold’s (NGD) incursion into the company as strategic
investor. Along with a corporate update and the announced closure of the financing the next
week, March was good to HRT. We than had a bit of a lull, April came and went with in-line
production results, plus results from its 2021 regional exploration campaign around Sugar Zone.
2) Then came May and the beginning of HRT’s recent stretch of negative news. Compared to
the largely in-line production results, the financials (3) of May 13th came with of buckets of ice-
cold water. First this, a revised 2021 production guidance:
Which means that with the changes to guidance announced last week, HRT has given us three
sets of 2021 production guidance figures so at some point, you kind of want them to shut up
and let us guess with interruptions. On the same day, HRT announced it was beginning a
strategic review and set up a committee for such purposes.
3) In early June we had word from the committee and, while the NR (4) of June 8th didn’t
move the stock much, it was clearly important. Here’s the money line:
4

“To provide the Company with the liquidity required during the initial phase of the
strategic review process and to ensure that the Company is not in breach of its
minimum liquidity financial covenant, BNP Paribas (BNPP) has temporarily reduced
the minimum liquidity requirement under the Company’s senior credit facility from C$10
million to C$4.75 million until June 30, 2021.”
Once again, HRT was signalling the market it was falling short of objectives.
4) Then came the NRs and events of June 30th (5) with the main news that BNPP had
“…deferred various payments and waived compliance with the financial covenants under its
senior credit facility agreement.” In other words, we got to the end of the quarter and when
HRT realized it wasn’t going to make the terms of the agreement, they asked the bankers for
an extra month of grace while the Strategic Review continues.
Financial overview: Those four points and their aftermath bring us up to date with the
ongoing mess that is HRT, so now to the financials in which we bring the our charts on the
company up to date and make a guesstimate or two for the results we can expect in 2q21.
However, before diving in this time I’ll state by way of a sidebar that some financial models are
by necessity more accurate than others. In this case, the important point is to not to know how
much HRT may earn or lose in a quarter, but whether it will be able to survive its rough
financial period and get itself to a position to turn its fortunes around later.
Production has gone like this to 1q21, I’ve added a guess for Q2
HRT: Gold oz produced, per qtr
5
6745 4577 9606 7357 7108
0
8126
53801 67711 00511
14000
12000
10000
8000
6000
4000
2000
0
91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 tse12q2
Oz Au/qtr
source: company filings
Back in IKN618 we expressed doubt that its 2021 guidance parameters were achievable, but
still gave the company benefit. At the time, we assumed around 13,000 oz of production for
1q21, then quarters that return over 16k oz for the rest of the year. That’s now a pipe dream
and HRT has signalled enough operational issues in recent weeks (including the Covid-19
outbreak recently reported) to assume bad things in recent weeks, too. Reading between the
lines of recent NRs says they haven’t been making minimums on tonnages mined and
throughputs (some of the covenants BNPP have waived for the extra month).
HRT: Gold oz produced, per qtr
6745 4577 9606 7357 7108
0
8126
53801 67711 00511
14000
12000
10000
8000
6000
4000
2000
0
91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 tse12q2
Oz Au/qtr
source: company filings
Therefore in the upcoming quarter, we guess to the low side and a 2q21 production number

that doesn’t manage to move higher than previous quarters. However, the financial model from
that type of production/sales number in the quarter also shows that even with another 2,000 oz
of production on top, HRT isn’t going to return a quarter profit. By assuming a received gold
price of CAD$2,200/oz (the hedge comes out in the financials and is around CAD$300/oz) and
costs that don’t go with the company, top line revenues come in at C$25.3m:
HRT.to: Operations overview
6
1.8
5.01 3.21
1.9
9.41 1.51 5.41
0.21
7.51
1.11
7.3 7.2
2.21
0.7
0.22
3.21
4.72
0.71
3.52
0.81
30
25
20
15
10
5
0
91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 tse12q2
CAD$m
revenues Prod. costs
source: company filings/IKN ests
With production costs only part of the overall operational bill, as seen below:
HRT.to: Costs overview
30
25
20
15
10
5
0
91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 tse12q2
CAD$m
Prod. costs depletion
Royalty/Exp Care&Maint
G&A Expl & Eval
|
Source: HRT.to filings, IKN ests
The problem is clear: high fixed costs and a likely shortfall in production compared to guidance.
Wven if HRT produced more ounces than our
2q21 assumption, the company returns an HRT.to: Operating Earnings
5
0.4
operational loss even before the creditors get
0
paid. As it is, our 11,500oz guess results in a -5 -3.8 -2.7 -1.3 -0.9 -2.4
C$2.4m operational loss (right). Another of the -10 -7.1 -7.5 -6.9
covenant waiver extended BNPP by this extra -15 -12.6 -11.3 -12.0 -10.2
month is that of liquidity, so seeing item that
-20
pushed out another month in the latest NR tells
-25
us HRT probably didn’t make the $10m minimum
-30
on June 30th. While it’s almost impossible to get -35 -31.0
this cash treasury snapshot correct, the evolving
pattern is the same one we commented upon in
IKN618 in March: “…the jagged shape of the
cash treasury visual is indicative of a company
that raises cash, only to see it swallowed by financials. So it raises cash, only to see it
swallowed by financials. So it raises cash…”.
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 tse12q2
source: company filings
srallod
fo
snoillim
HRT.to: Cash treasury per qtr
40
35
30
25
20
15
10
5
0
71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 tse12q2
source: company filings/IKN ests
srallod
fo
snoillim

We’re expecting the same. Finally, there’s a lot we on the outside simply do not know about
HRT’s financial situation today, with the next best glimpse of what is going on due in the 2q21
financials. We should get them in mid-August but, as the Strategic Review is supposed to bring
some sort of financial resolution to BHPP (and others) before then, the numbers contained may
be moot. However, recent changes in the share structure may give more. HRT now reports
1045.77m shares out:
HRT.to: Shares Out
7
8.034 1.444 8.454 6.894 8.945 3.275 4.675 4.185 7.995 2.006 6.406 9.356 0.776 0.776
2.648 0.368 6.478
9.9301 8.5401
1200
1100
1000
900
800
700
600
500
400 300
200
100
0
61q4 71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 tse12q2
source: company filings/IKN ests
serahs
fo
snoillim
Notably, New Gold (via its top-up agreement) and Appian (via its deal where payments are in
shares) are the willing recipients of the newly franked shares, above and beyond their Strategic
Investment entries. Indeed, as ay May 18th and the AGM materials, Appian owned 242,397,284
shares (23.2% of total) and New Gold owned 154,940,153 shares (14.8% of total). Put together,
as they will surely be one day, it’s a voting block that now control the company’s strategic
decisions. However and wisely, they aren’t getting involved yet neither Appian nor NGD used
their voting powers in the latest AGM (6)
There was clearly some activist voting going on and at least three of the board members saw
uncomfortably high numbers of votes withheld against their names, so you can bet the activists
were in touch with both Appian and New Gold, trying to get their support. Instead and in normal
diplomatic style, the two large holders stepped aside and remained neutral in last week’s vote,
in effect a ratification of the current board.
Discussion and conclusion
We’re up to date on events and more aware of the financial mess at HRT. We also know that
bankers BHPP, funding company Appian and fellow Canadian gold mining company New Gold
are involved and interested, now it’s time to put the piece together and consider HRT’s trade
potential. To do so we’ll start by considering then positions of the four main actors:
 HRT management: Simple stuff, they want to turn their company around, produce well,
get the share price up. Theirs is the straightforward position to understand.
 BNP Paribas Bank (BNPP): They want to make money from their investment. Owners of
the Senior Secured debt, they also have first rights on repayment if the company is
liquidated and by the evidence available they are getting a little nervous.
 Appian: They hold over 23% of shares, but also debt behind BNPP. The bagholders in
the current structure, what they want above all is to turn the company around and
make good on their original investment.

 New Gold: Then new influential player at HRT, NGD is unconcerned about any near-
term operational or financial troubles at the company. Its focus is the exploration and
development potential at Sugar Zone, as assuming they have exploration success
current plans are for a modest capex budget ($21m() to transform the asset into a
100,000oz per year mine. As those plans would also come to fruition after all debts are
paid off and hedges removed from production, the prize is potentially valuable.
BNP’s role: So what’s happening here? To expand, we will take HRT’s position as read and
move to the other straightforward one, that of BNP Paribas (BNPP). They want their money,
they are getting a little anxious and antsy too, noted first in the way earlier this year they
changed financing terms to make sure all payments were paid into an account controlled by the
bank. More tellingly was the recent NR from HRT announcing likely lower production for the
year, the reason spoke loudly (your author highlights):
To support the continuation of the strategic review process, the Company is
actively managing its liquidity and capital resources. Prioritizing cash
preservation to allow for a robust process has included reducing
certain capital expenditures which is anticipated to have an impact
on production over the next 6 to 9 months. At this time, the Company is
unable to provide updated guidance as the process continues to evolve but
believes its revised 2021 guidance, issued on May 13, 2021, is at risk and may
not be achieved.
That is the bank’s doing. They see the dwindling treasury and marginal cash flow fro
operations, then see the company putting capital into exploration and development projects
with no immediate financial return and say “Stop that now!” BNPP is getting antsy for its money
all right, the granting of an extra month of grace was certainly under the new condition of a
change in budget. As for the money owed to BNPP, here’s the table from the 1q21 financials
(the information is presented twice, in USD to the left and CAD to the right):
Sticking with USD for a moment, BHP is most concerned in 2021 about its debt service dues of
U$3.3m per quarter. That latest payment was deferred, but it’s due at the end of this month as
are a series ofU$3.3m approx payments at the end of each quarter. Aside that, 2022 sees the
term credit repayments double for 12 months (to make up for lost time) and the scheduled
U$20m expiry of the revolving credit facility. The latter is of less concern; if HRT is a winning
trade it will have improved sufficiently to refinance its revolver if required. The former is the
tough schedule and is why HRT has minimum requirements on liquidity.
Summing up, BNPP’s recent moves have been to preserve their own capital in preference to
others. By stopping HRT from using its budgeted exploration and sustaining capex, it slows
development and the timeline toward a larger and more profitable mine. That’s against the NGD
position, so let’s consider that now.
NGD’s role: One aspect we recognized in our previous coverage was how NGD’s attitude toward
its share position could be different to ours, the retail shareholder. Ultimately, NGD paid
C$24.8m and has exercised its top-up rights since then for the voting block of shares, rather
than capital gains on stock trades. This remains the case today, as NGD’s eyes are more on the
Book Value of HRT than its quarterly results:
8

C$m HRT: Book Value, per qtr end
140
120
100
80
60
40
20
0
-20
-40
-60
4q17 1q18 2q18 3q18 4q18 1q19 2q19 3q19 4q19 1q20 2q20 3q20 4q20 1q21
source: company filings
Q2 has obviously gone badly for HRT, but back at the end of Q1 and with NGD’s strategic cash
in treasury, Book Value (total assets minus total liabilities) had got back to (nearly) neutral.
Within the last quarter’s operational parameters that’s where we are today, which means for
valuation purposes HRT’s shares are all about good will. The accounting term “good will” is
normally an abstract device or mere line item title, but at times of financial stress of the type
suffered by HRT today you can use it almost at face value. With HRT, we have a bank allowing
the company the good will of another month to sort its finances out. Come the end of July,
BHPP may decide to continue with its attitude of good will but by rights and contract, it’s also
due its money and could theoretically foreclose in order to guarantee its return. Senior secured
debt means something, it’s at the front of the queue for payment and even Appian is
subordinated to the bank. Therefore, with hard assets and liabilities all-but cancelling each
other out, the market today prices the good will of HRT at the current market cap (8c x
1.045Bn S/O) of CAD$83.6m.
But that’s the bank, New Gold’s position is less about bailing out the current management team
at HRT, more about gaining control of a property that they believe will provide an unhedged,
low, cost, 100,000 oz per year operation by 2024. However, in order to get control of the 85%
they don’t already won they will need to get past Appian.
Appian’s role: This position is most important of all to us, the retail player, because as from
now and going forward the strategy of the biggest shareolder of HRT is firmly aligned with us
smallfry. To begin, we must assume a reasonable level of agreement and cooperation already
between Appian and New Gold, even though their ultimate aims are different. In the case of
Appian, they must regret ever hearing the phrase “Sugar Zone” and making a first investment
back in 2016, a feeling which surely compounded when its second major capital injection was
met with operational underperformance. Therefore, come 2021 Appian was already looking for
“an elegant exit” to this position and the arrival of New Gold provides the route map. There is
no way Appian would have let NGD in the door as a peer strategic partner to HRT without
having all the rules clear, indeed we can be sure NGD would have wanted it that way too, and
sounded out Appian to its own content before making its move. Therefore, logically, Appian’s
original investment thesis has changed and they are now firmly on-board with NGD’s long-term
plans. This also means those two share blocks will work as one come the right time and have
looming control of the company already, a definite positive under the circumstances because
Appian’s new graceful exit is obvious: They will want an all-share deal at a correct price, giving
them paper and entry as a New Gold shareholder.
We shouldn’t get ahead of ourselves, however. As NGD only gets to vote up director onto HRT’s
board next year and the company is currently in full Strategic Review to sort out its own
financial mess, we’re not in a likely window for M&A Instead, with Strategic Review scheduled
to end on July 30th and give an answer to BNPP, if Appian and NGD wanted to maximize
leverage before making their final moves they’d be happy to pay cash for shares now. If HRT
diluted and raised a large amount at these current prices, they get much-needed treasury and
the $3.3m to BHPP bring the company back under the terms of covenant. Perhaps via a private
placement mechanism or rights issue, a large and dilutive offering would suit all the main
9

players. Appian and New Gold get voting block at a low entry point, HRT would get out of
financial jail, BHPP gets what it really wants (its money). It would also be the signal we retail
require to buy into HRT. This weekend’s update was inspired by the potential for a trade in the
company and that’s now clearly the case, as we have basic truths on our side:
 We know the name of the seller and how much they’ll want for their shares. The debt
will travel on and eventually be extinguished by the new owner (NGD), but Appian’s
shares were mostly bought at 30c and 62c. While I’m sure they are resigned to the loss
on the 2017 top-up shares, we can expect them to want to be as close to the original
30c buy-in as possible. Also any new dilutive placement/rights issue would allo them to
drop their cost average, allowing a more accessible sale price.
 Because in this case we even know the name of the buyer. HRT in its Strategic Review
update of June 8th noted that it has signed multiple NDAs with third parties, but the
whole market knows New Gold is on first refusal as buyer of Harte and Sugar Zone.
Already 15% owners, NGD’s main interest is HRT as a growth project. They’d like to
see Sugar Zone developed on schedule too, so with the bankers getting nervy and
curtailing the exploration and sustaining capital budget recently gives reason to find a
resolution.
 Mining companies do not go bankrupt in Canada. Not in the true sense, at least. Rare
indeed are cases such at Aton or Allied Nevada, when ballooning financial debt is
coupled with operational woes and gets to the point where the banker feels they have
no other choice. Even more rare are bankruptcies during a gold bull run, and the final
cherry on the cake is the geographical location: This is in Canada, the company has an
active gold mine and a highly prospective exploration zone around it, there is simply no
way this company and its share price get crushed to zero under debt foreclosure
without a buyer showing up.
It’s the last point which makes HRT attractive as a trade today, not just in a theoretical future
when a refinancing deal takes pressure off the balance sheet. Even in worse case scenarios,
Appian will get paid for its shares and NGD won’t mind too much, it has 15% of the company
bought and paid for already. Between Appian and NGD, the 37% of shares locked up mean
near-certain success for any friendly deal announced and as Appian isn’t into suicide, it will
make sure all its shares are worth money before handing them to Renaud Adams.
The bottom line to today’s note on Harte Gold (HRT.to): There’s a clear risk/reward trade to be
had here. My personal preference is to wait until the Strategic Review comes back with its
conclusions and finds the best way to get the bankers of their backs, but in any case those
buying at 8c today are paying for shares with little chance of meaningful downside. As for
upside, much depends on the final negotiations further down the line, Appian pushing for as
high a share price as possible before agreeing to the all-share buyout and NGD pushing the
other way, to a certain extent at least. But as NGD knows it wouldn’t have got its foot in the
door as a Strategic without Appian’s good favour, there will be a bill to pay and that’s why HRT,
this weekend at 8c, offers excellent value for those with the stomach to hold a penny stock in
danger of collapse for a year or so. As from today, HRT is on the IKN radar as a potential trade.
Stocks to Follow
Despite gold’s improvement (GLD +1.15% W-o-W) it was a negative week for the portfolio,
with the sector jitters hitting miners in general and our focus sector of junior the most. There
are no fewer than ten Week-over-Week losers on our list of 17 names (MAI.v, RIO.v, TMQ,
AGC.v, SMD.v, MIN.to, RYR.v, WLF.v, ECR.v, AUL.v) and that sounds bad, but in truth most of
those moves were small and inside normal ranges. The only larger losses of note came from
Cartier Resources (ECR.v down 9.4%) and Strategic Metals (SMD.v down 9.0%) and as those
10

stocks are of the same ilk, they get a few combined words below. But neither was it all bad,
with two stocks unchanged (QCCU.v, MIRL.cse) and five winners (CMMC.to, AR.to, ALDE.v,
GBR.v, MENE.v) helping lighten the load, including two larger wins out of Mene Inc (MENE.v up
21.4%) and Aldebaran (ALDE.v up 11.5%).
With the new purchases and still no decision on sales, we’re at 17 open positions on our Stocks
to Follow list, that’s two over the normal limit and uncomfortable but until it changes, the count
allows six stocks in the green, two unchanged on their cost averages and nine others in the red.
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$0.63 200.0% $1.14 tgt Aug'20, #1 idea
Rio2 Ltd. RIO.v STR BUY C$0.83 22-Apr-18 C$0.73 -12.0% $1.58 tgt, finance capex due
Recommended stocks (In order of preference)
Copper Mountain CMMC.to STR BUY C$3.51 18-Jun-21 C$3.77 7.4% re-buy, Q2 earnings catalyst
Argonaut Gold AR.to STR BUY C$2.92 25-Jun-21 C$3.02 3.4% New prod. turnaround pick
Trilogy Metals TMQ BUY U$1.84 15-Sep-19 U$2.40 6.4% Cu for 2021, going well
Amarillo Gold AGC.v BUY C$0.31 30-May-21 C$0.30 -3.2% add at 30c/32c, capex NR soon
Strategic Metals SMD.v BUY C$0.42 31-Jan-21 C$0.355 -15.5% Canadian land asset bet
Excelsior Mining MIN.to STR BUY C$0.93 10-Mar-19 C$0.54 -41.9% Delayed, but still great value
Aldebaran Res. ALDE.v BUY C$0.68 16-May-21 C$0.68 0.0% Bet on big copper, pol risk okay
QC Copper &Gold QCCU.v STR BUY C$0.205 25-Apr-21 C$0.18 -12.2% Cu Jr, fast-tracking resource
Royal Road Min. RYR.v BUY C$0.155 17-Mar-19 C$0.30 93.5% Model paying off in Nica
Wolfden Res. WLF.v spec buy C$0.30 11-Apr-21 C$0.30 0.0% Zn trade needs to move soon
Great Bear Res GBR.v BUY C$15.83 26-Aug-20 C$15.04 -5.0% Binary M&A trade, wait for print
Cartier Resources ECR.v hold/sell? C$0.32 21-Mar-21 C$0.24 -25.0% Thinking of selling
Aurelius Min. AUL.v spec buy C$0.75 28-Jun-20 C$0.43 -42.7% has until its 43-101 to improve
Minera IRL MIRL.cse hold C$0.195 22-Jul-12 C$0.08 -59.0% CEO change will move stock
Long-term non-mining hold
Mene Inc. MENE.v LT Hold C$0.68 6-Dec-20 C$0.85 25.0% LT bet, added again July'21
Closed in 2021 closed close price
Fiore Gold F.v jan'21 C$0.98 21-May-20 C$1.17 19.4% closed as part of rebalance
Norsemont Mining NOM.cse feb'21 C$1.55 6-Sep-20 C$0.70 -54.8% Cut loser to reduce Au exp.
Element 29 Res ECU.v feb'21 C$0.49 7-Feb-21 C$0.54 10.2% Cut Peru exposure
Kuya Silver KUYA.cse feb'21 C$1.66 8-Nov-20 C$2.51 51.2% Cut Peru exposure
Pucara Gold TORO.v apr'21 C$0.65 4-Oct-20 C$0.26 -60.0% Cut loser, Peru risk call
Copper Mountain CMMC.to apr'21 C$1.40 22-Nov-20 C$4.18 198.6% tgt hit, profit taken
New Gold NGD may'21 U$0.76 9-Feb-20 U$2.14 181.6% Sold to buy AGC, nice win
Orezone Gold ORE.v jun'21 C$0.79 21-Jun-20 C$1.61 103.8% sold on pop, leaky boat
2015 to 2020 annual closed positions in appendices below, 2009 to 2014 closed positions in editions IKN553 or earlier
Now for notes on some of our covered stocks:
Mene Inc (MENE.v): ADDED. After reserving the right to add gradually to this position from
the time it began I used it when, for second week running, MENE trading signalled a stock
about to re-rate higher. I added a slug and the cost average above is up to 68c, meanwhile M
ENe is starting to get a little m ore buzz around it as the stock moves away from that rather
boring 60c zone. Above all, I’ve heard from a couple of subscribers who are fellow shareholders
but have also become customers of Mene online and the way you people evangelize the
experience from the new upgraded website to the after-sales service (Mene sends you regular
messages to tell you how much your 24k jewelry investment is worth) is another reason to buy
and hold these shares for the long-term. We remind readers, 61% of sales are from repeat
11

buyers, the type of stat that makes marketing people’s hair stand on end. Combine high-end,
luxury goods and superior service and you end with that most valuable of entities; a brand.
Here’s the full MENE price chart, from IPO and the big cross volumes until today.
TA watchers tell me there’s not much stopping MENE from a more complete breakout. Go.
Copper Mountain (CMMC.to): Arguably, our copper stocks had the best (least worst) of it
last week, with two winners (CMMC, ALDE), an unchanged stock (QCCU.v) and two losers
(TMQ, MIN.to) from our five main copper trades. In the case of Copper Mountain, this currently
has most of my speculative copper cash so when it sold off last week there was a fleeting
temptation to add again, but instead had a small rant about how cheap the company is on the
blog (7). With a clear catalyst date set plus reason to expect results to support this current
share price, CMMC has price backbone at today’s levels. It ticks the boxes as a near-term trade
this weekend, as much as it does for my preferred longer scope and higher price target.
Argonaut Gold (AR.to): Our new gold producer investment gave encouraging news from its
flagship Magino asset last week (8), the headline 7.0m at 13.3 g/t gold from a series of drills to
further define the deep vein system they have in common with their neighbour, Alamos Gold
(AGI) at Island. There’s plenty of information on that link, here we’ll stick with one useful visual
and a quote:
12

This map from the NR shows drill hole location and the most successful holes in this series
coming from the pattern to the left. To the right is the first set of “discovery” holes from earlier
this year, so the new information has brought scale and strike length. As for the quote, we use
company VP Exploration Brian Arkell:
"We are continuing to develop a better understanding on the structural controls on the
high-grade mineralization at Magino and are now in the process of early-stage
resource definition drilling on the Elbow Zone. With the extremely encouraging initial
high-grade gold results at depth within the Elbow and South Zones, we are very
excited about our success in defining a series of high-grade gold mineralized
structures below the Magino planned open pit."
This desk suspects AR will be able to add a
significant number of inferred gold ounces to
Magino’s resource count by the end of this
campaign. We dial up the 10 day comparative
chart to GDXJ to show the results, as between
the anticipation of this news and the soft sector
trading Thursday, by the time the week was
done AR had eked out around 2% to peers.
That’s a tiny reaction compared to the amount
of value being added by the drill bit at Magino,
as we can now expect the AR team in charge
of exploration to hit the structure regularly. It’s
only a matter of time before the company has
new 43-101 compliant ounces on its books.
Cartier Resources (ECR.v) and Strategic Metals (SMC.v): After last weekend’s thoughts
on selling ECR and cutting losses, the stock promptly amplified them by dumping even further.
Now 25% down and without ever seeing green on the trade from the beginning (stupid Mark
bought 48 hours before ECR’s stretched 2m oz resource for Chimo), all the great fundies and
cheap land values in the world haven’t stopped the rot.
Added to this section today is Strategic Metals (SMD.v), as it also dropped last week and as I
bought both ECR and SMC for largely the same reasons earlier this year, that’s an ominous sign
of a failing trade theory. This ten-day chart pitting them against GDXJ shows the weakness.
The trade theory in 1q21 was for higher land prices in the mining sector, specifically in regions
of low political risk. Both SMD and ECR fit the bill, but six months later and the trade still hasn’t
played out. I have more patience with SMD at the moment (ECR still seems to think itself an
unbeatable success, despite scant evidence of real deals) and it will get until after Labor Day to
impress me. Cartier is now on the chopping block and for pure portfolio management reasons,
I’m now close to admitting failure and cutting ECR away.
Minera IRL (MIRL.cse): With the CSE monthly report for June (9) and gold sales of 1.539 oz
(while contained ounces grew nicely)…
13

MIRL: 2019/20 Corihuarmi gold prod & shipments, per month
14
9681 7051 3751 7902 7322 0731 6291 6662 3281 7412 0091 9581 4181 5261 6571 1602 4931 5641 5122 3102 9141 3122 0342 9871 3312
899
4472 5322 9322
9351 4500
4000
3500
3000
2500
2000
1500 1000
500
0
91naj bef ram rpa yam nuj luj gua pes tco von ced 02naj bef ram rpa yam nuj luj gua pes tco von ced 12naj bef ram rpa yam nuj
Oz Au
contained oz
shipments
source: CSE
...we now enough information for a 2q21 production number for Corihuarmi:
IRL: Corihuarmi quarterly sales
2225 2165 7895 1326 9494 4075 5146 6095 5915 0294 7465 1386 5785 3106
8000
7000
6000
5000
4000 3000
2000
1000
0
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2
Oz Au
source: IRL filings
That’s 6,103 ounces shipped in the quarter and if we assume the average monthly LME PM fix
pot for those ounces, that gives us this for top-line revenues at the company:
IRL: Revenues per qtr
239.6 612.7 331.7 856.7 924.6 833.7 133.9 656.8 782.8 562.8 566.01
568.11
873.01 009.01
14
12
10
8
6 4
2
0
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 tse12q2
$m
source: company filings
A forecast U$10.9m and another in-line quarter. When MIRL files its quarter we’ll have an eye
on its costs, to see if creep has begun here in the same way as other operations in the more
expensive Northern hemisphere. Aside that, expecting an in-line quarter and the rape of
shareholders from its entrenched CEO to continue.
Aldebaran Resources (ALDE.v): A healthy percentage rise yes, but volumes were poor and
the stock failed to register a single trade on the TSXV Friday. ALDE’s management is going to
pump the stock hard going into the Northern autumn, we have cheap shares to sell to others
when they do.
QC Copper & Gold (QCCU.v): Word from Opemiska is good, the drill campaign is done, core
has been processed and logged, all core samples are now at the lab. CEO Stewart estimates the
company is around 10 days behind its original and very sharp projected timeline, which annoys
him more than it does me. Assuming the labs don’t clog up again, QCCU expects to have its
maiden 43-101 resource to market by the end of August and certainly in time for Labor Day
(and the financing window). With an IKN estimated C$3.6m at bank at end June 2021, QCCU

has enough money to do everything it wants to do this year, but will require funding for next
and that may be the reason for the current price headwinds. The resource count announcement
is the obvious catalyst, but it should also provide selling window if required. Ultimately, this bet
is simple; we expect QCCU to wow the market and provide compelling reasons to push the
stock higher.
Rio2 Ltd (RIO.v): This desk has reason to believe the financing package for Fenix will be
officially announced before the end of July. Be positioned before then.
The Copper Basket
After twenty-seven weeks of 2021, The Copper Basket shows a gain of 36.47% to level stakes.
company ticker price 1/1/21 Shares out Market Cap current pps gain/loss%
1 Solaris Res SLS.to 6.08 107.53 1423.70 13.24 117.8%
2 Copper Mtn CMMC.to 1.81 207.5 782.28 3.77 108.3%
3 Oroco Res OCO.v 1.85 186.96 588.92 3.15 70.3%
4 Marimaca Cop MARI.to 3.25 87.737 350.95 4.00 23.1%
5 Western Copper WRN.to 1.57 135.798 339.50 2.50 59.2%
6 Amerigo Res ARG.to 0.80 181.79 216.33 1.19 48.8%
7 Excelsior Min. MIN.to 1.12 273.585 147.74 0.54 -51.8%
8 C3 Metals CCCM.v 0.115 438.56 85.52 0.195 69.6%
9 Aldebaran Res. ALDE.v 0.455 125.24 85.16 0.68 49.5%
10 Regulus Res. REG.v 1.07 101.85 73.33 0.72 -32.7%
11 Doré Copper DCMC.v 1.00 53.304 47.97 0.90 -10.0%
12 Chakana Cop PERU.v 0.60 111.41 38.44 0.345 -42.5%
13 Element 29 Res ECU.v 0.45 68.281 34.82 0.51 13.3%
14 US Copper USCU.v 0.105 87.53 15.32 0.175 66.7%
15 Chibougamau CBG.v 0.165 53.077 13.80 0.26 57.6%
NB: All stocks in CAD$ Portfolio avg 36.47%
The Copper Basket’s hebdomadal win/lose count is split down the middle today, with seven
winners (SLS.to, CMC.to, PERU.v, CCCM.v,
ALDE.v, USCU.v), seven losers (OCO.v, The Copper Basket 2021, weekly evolution
70%
MIN.to, WRN.to, MARI.to, ARG.to, REG.v,
60%
ECU.v) and one unchanged stock making up
the numbers (CBG.v). Most of the moves in 50%
either direction were modest, the exceptions 40%
to the upside being Solaris (SLS.to up 30%
12.5%) and Aldebaran (ALDE.v up 11.5%)
20%
while to the downside, the only big hit was
10%
taken by Element 29 (ECU.v down 10.5%).
0%
Staying with the general overview a moment
longer, it’s difficult to make out much of a
trend among junior copper stocks at present,
aside from the obvious way the sector waxes and
wanes with spot copper. After considering some
messy charts of COPX versus representative
Copper Basket stocks using various timescales
(here’s the ten-day example, I also suggest a
good stare at the 2021 YTD version if you care
enough) the conclusion is, promo pushes and
sudden bursts of buying in illiquid stocks aside,
that if your story had momentum coming into
15
ts1
naJ
t01naJ ht71 ht42 ts13 ht7bef ht41 ts12 ht82 ht7ram ht41 ts12 ht82 ht4rpa ht11 ht81 ht52 n2yam ht9 ht61 dr32 ht03 ht6nuj ht31 ht02 ht72 ht4luj ht11
source: IKN calcs

2021 it probably still has some now. Examples include Oroco and Solaris, two explorecos
churning out ATHs and both passed over by this desk (your idea of analyst failure is my idea of
choosing one’s battles), while Copper Mountain is a clear positive example among producers
and to expand slightly, we remind this audience how the larger cap Capstone Mining (CS.to) is
an attractive alternative to anything in the Copper Basket 2021. So after due deliberation, the
only real trend emerging is how the market is gravitating to the larger and more liquid plays.
We leave a question mark hanging over that subject and move one. This week’s chosen chart
for copper-the-metal has my broad stroke interpretation of last week’s trading scribbled on top:
Copper adjusts down on Dollar news, not copper news and left to its own devices, the market
showed us demand remains strong once again (no surprises). The bargain prices brought on by
US Dollar strength lasted less than a day as ultimately, the reason for USD strength last week,
better than expected economic recovery, is also good news for all industrial metal demand.
Real world demand for the metal continues as the dominant theme of our weekly inventory
data, numbers from Chile’s reliable Cochilco database:
 Total tonnages in the three world copper futures and inventory systems dropped again
last week, down 10,068 metric tonnes (MT) to close at 389,167mt.
 Once again, the SHFE provides the best window into the real state of the market,
stocks dropping another 13,051mt (-%) on the week to close at 129,469mt and in this
way, SHFE summarily ignores the standard 150kmt line in the sand. See below for
more.
 The LME saw a rise of 4,850mt on the week, due almost entirely to 4,700mt of metal
landing in South Korea. Stocks this weekend stand at 216,800mt as LME starts to work
through the large inventory dump of a couple of weeks ago.
 The COMEX, saw another 1,867mt leave its warehouses, total in stock now 42,898mt
copper. Not a price diver, but the way in which COMEX inventory has halved in the last
few months is another signal about reality. Copper inventory held in Comex tends to
stay away from the holistic and fungible worldwide copper trading, its holding costs and
miles from other big markets (i.e. Asia) separating its copper from the rest, so dropping
stocks here means healthy demand in North America.
Here’s the Shanghai-only inventories chart, the line dropping fast:
16

Shanghai Futures Exchange Warehouse Stocks, 2014 to date
400000
350000
300000
250000
200000
150000
100000
50000
0
17
ht5naj ht61 ht52 dr3gua ht21 ts12 5102
ts1ram
ht01 ht91 ht72 ht6ced ht41 ht42 6102
dr3luJ
ht11 ht72 ht5beF ht61 ht52 7102
dr3pes
ht21 ts12 8102
ts1rpa
ht71 ht62 8102
ht4von
9102
ht31naj
ht42 9102
dn2nuj
ht11 ht02 ht92 ht8 ht71 0202ht62luj ht4tco 0202ht31ced ts12 1202dn2yam ht11luj
Mt Cu
|
source: Cochilco
This chart gives an idea of the acceleration:
SHFE copper inventory levels, 2017 to 2021 Jan to July
MT Cu
400000 2021
2020
350000
2019
300000 2018
250000
200000
150000
100000
50000
0
1 2 3 4 5 6 7 8 9 10111213141516171819202122232425262728
source: Cochilco data
From the same dataset, we display the first 28 weeks of the last four years against each other.
This weekend we find stocks at the same sub-150k levels as 2019 and 2020 but no respite at
this level. Instead, copper stocks are moving quickly back to the 100k levels of end-year.
Putting the price action (above) and the inventory data together (a particular eye on SHFE
copper stocks), the conclusion is the same as in previous weeks: We should expect choppy
trading to continue, with China now active in the market and with a vested interest in keeping a
lid on copper prices. However, all the jawbone or financial rebalancing the world can muster
isn’t not going to change the real world supply gap for copper, already with us and expected to
last years rather than quarters. It’s why SHFE stocks are doing what they are doing, it’s why
LME dumps are being bought away, its why The Vampire Squid earlier this year called for
U$6.80/lb copper (U$15,000/tonne) over the long-term. I have no problem accompanying that
call to at least U$5.50/lb.
Current personal copper holdings: Regarding copper exposure, on reflection (and with
exact knowledge of weightings) I’m happy with the mix in the current Stocks to Follow
portfolio. With our call now cuter than just “copper going higher”, we expect the sweet spot for
bullish exposure in 2021 to be either junior/medium-scale producers, or developer plays
defining a resource economically. Under those criteria…
 CMMC.to (Producer today)
 MIN.to (Producer when it gets its act together)
 TMQ (Advancing development in strong JV)
 QCCU.v (About to file maiden 43-101 resource)
 ALDE.v (Exploration of large Andean porphyry)

….we are in good shape, as only Aldebaran is left out (and is cheap on a per/lb basis and
should run anyway). Expect China and friends to continue their jawbone and delay the reality of
higher copper prices, but delaying the inevitable means the complex will re-rate higher again.
Solaris Resources (SLS.to): The unstoppable Ecuador copper play delivered more market-
moving news last week, and if we chop the previous drill assays from last week’s NR (8) we get
to see how the latest results from the Warintza Central zone match well to expectations. Long
and deep holes that end in mineralization, this is a classic porphyry and another advantage to
SLS is the relative grade of copper:
We’re away from the richest core of the porphyry in these cuts, but anything above 0.5%
copper works in the 21st century. On paper alone, this project is hugely economic and that’s
why it now commands a market cap of over a Billion US Dollars. That’s a lot of money to lose
when Ecuador decides not to allow the mine to happen, but that’s for the future. Good luck to
longs, I won’t be joining you.
The Producer Basket
After twenty-seven weeks of 2021, the Producer Basket shows a loss of 11.19% to level stakes.
company ticker price 1/1/20 Shares out Mkt Cap (U$Bn) current pps gain/loss%
1 Newmont NEM 59.89 805 51.50 63.98 6.8%
2 Barrick GOLD 22.78 1778.04 37.57 21.13 -7.2%
3 Agnico Eagle AEM 70.51 244.187 15.01 61.48 -12.8%
4 Kirkland Lake KL 41.27 267.056 10.53 39.42 -4.5%
5 Kinross Gold KGC 7.34 1261.07 7.94 6.30 -14.2%
6 Pan American PAAS 34.71 210.262 5.99 28.50 -17.9%
7 Endeavour Min EDV.to 29.62 252.568 5.90 28.04 -5.3%
8 B2Gold BTG 5.60 1051.697 4.29 4.08 -27.1%
9 Alamos Gold AGI 8.75 392.739 3.06 7.79 -11.0%
10 Pretium Res PVG 11.48 187.833 1.75 9.34 -18.6%
Prices in U$ except EDV.to (share price in CAD$ and mkt cap in approx USD) Port. avg -11.19%
The 2021 Producer Basket: Percentage difference between
GDX benchmark and basket (negative = IKN basket ahead) 8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
The rich get richer and the poor get poorer. The trend of money gravitating toward the biggest
18
ts1
naJ
t01naJ ht71 ht42 ts13 ht7bef ht41 ts12 ht82 ht7ram ht41 ts12 ht82 ht4rpa ht11 ht81 ht52 n2yam ht9 ht61 dr32 ht03 ht6nuj ht31 ht02 ht72 ht4luj ht11
The 2021 Producer Basket: Weekly performance and 20%
comparative to GDX control
15%
10%
5%
0%
-5%
-10%
-15%
-20%
source: IKN calcs, NYSE/Nasdaq/TSX data
ts1
naJ
t01naJ ht71 ht42 ts13 ht7bef ht41 ts12 ht82 ht7ram ht41 ts12 ht82 ht4rpa ht11 ht81 ht52 n2yam ht9 ht61 dr32 ht03 ht6nuj ht31 ht02 ht72 ht4luj ht11
basket
gdx control
source: Google, IKN Calcs

Tier 1 names continues, with Newmont, Barrick and Kirkland Lake three of the four winners
from our list on the week (add EDV.to). The other six were losers (AEM, KGC, PAAS, BTG, PVG,
AGI) as market nerves on Thursday saw sector-wide selling of PM producers. The nerves lasted
less than 24 hours and by Friday afternoon, the big stocks had bounced back but the clock beat
the Tier 2 names. If gold behaves in the next five days, we should see the reverse happening
and the $3Bn market cappers playing a little catch-up to the $15m companies.
Pretium Resources (PVG): We haven’t had much to say about PVG in 2021 to date, it price
performance the epitome of “Market Perform” so
far this year. In fact, you have to go back almost
a year to find any alpha to market from PVG,
that was early August and the filing of its 2q21
financials. That day, PVG reported record results
and a relieved marketplace bought the stock
back up from its Covid crash lows, since then
PVG has done precious little to attract our
attention.
Six months after compiling a 2021 basket with a
view to beating out the GDX, it’s beginning to
dawn on me that, between bad calls on
streamers and adding in companies that were
supposed to provide leverage but do nothing of the sort, that I didn’t choose very well in 2021.
I’ll stick to trading the juniors and leave these larger stocks to bigger brains than mine.
The Tiny Dogs
After twenty-seven weeks of 2021, the Tiny Dogs show a loss of 3.99% to level stakes.
company ticker price 1/1/21 Shares out Mkt Cap current pps gain/loss%
Antler Gold ANTL.v 0.205 61.348 7.36 0.12 -41.5%
Aston Bay BAY.v 0.045 163.975 7.38 0.045 0.0%
Constantine Met CEM.v 0.17 45.4 11.12 0.245 44.1%
Contact Gold C.v 0.115 240.757 21.67 0.09 -21.7%
Golden Pursuit GDP.v 0.22 40 6.40 0.16 -27.3%
Manitou Gold MTU.v 0.045 230.79 17.31 0.075 66.7%
Precipitate Gold PRG.v 0.240 106.241 11.16 0.105 -56.3%
QC Copper QCCU.v 0.315 105 18.90 0.18 -42.9%
Red Pine Expl RPX.v 0.400 95.806 57.48 0.60 50.0%
Warrior Gold WAR.v 0.090 91.818 7.35 0.08 -11.1%
Prices in CAD$, data from TSXV basket avg -3.99%
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 representing the state of play in the
sub-sector of tinycap exploration company stocks. At least, that’s the plan.
 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.
Another modest week for the tinycap barometer, with five stocks unchanged in price (ANTL.v,
19

BAY.v, CEM.v, C.v, QCCU.v) and three others down (GDP.v, PRG.v, WAR.v). That leaves just
two winners on the week (MTU.v, RPX.v), the
small consolation of RPX as the biggest mover in 20% Tiny Dogs, 2021 weekly tracker
18%
either direction on the week, up 11.1%. And with 16%
14%
that, the basket index stays underwater for the 12%
fourth week running in what’s beginning to look 10%
8%
like a new line in the sand for the tinycap sector. 6%
4%
2%
0%
Manitou Gold (MTU.v): In time-honoured
-2%
Canadian exploreco style, MTU waited until -4%
-6% Friday evening to announce it was giving out a -8%
large batch of options:
Ontario, July 09, 2021 (GLOBE NEWSWIRE)
-- Manitou Gold Inc. (TSXV: MTU) (the
“Company” or “Manitou”) announces that it has issued an aggregate of 16,450,000
stock options (“Options”) to officers, directors and service providers of the Corporation,
effective July 12, 2021. An aggregate of 11,050,000 of the Options have been granted
in replacement of preexisting stock options of the Company which expired on July 9,
2021. Each Option entitles the holder to acquire one common share of the Corporation
at an exercise price of $0.10 until July 12, 2026. All such Options vest immediately.
Though how options that vest immediately are supposed to provide long-term incentive is
beyond me, as is the way the company will simply roll over your incentive and replace it with a
cheaper version if things don’t work out.
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
This week in Peru
Just one note in Regional Politics today, I began last week by accidentally ignoring all political
watching and as it wore on, made a decision to give the brain a rest. The first half of 2021 has
been politically intense in LatAm and that’s likely to continue, with the next key election in Chile
on deck later this year and then Brazil 2022, so just some noted on the ongoing reversion to
calm (before the next storm) in Peru. The country moved a step closer to rejecting Keio
Fujimori’s voter fraud accusations and we should get a winner announced in the next few days,
which will in turn allow Pedro Castillo to take over in a smooth transition of power on July 28th.
All this is good and business channels of all types (not just mining) have been running “things
aren’t so bad in Peru” reports and op-eds. That’s because Castillo has indeed softened his tone
considerably and moved away from the political hard left. Longer-term there’s massive trouble
awaiting Peru under Castillo, be clear this desk has not changed tack; We’re not suddenly
welcoming the Communist executive behind this Presidential-elect, nor of his Whore Left
enablers jockeying for positions of power. Castillo is even having to beat off the advances of
even the Peru centre now. The last few days in Lima have seen Castillo’s hard Lefty Perú Libre
party accept the advances of Veronika Mendoza’s standard Lefty PJ party, the centrist Morado
party and even the ostensibly centre-right George Forsyth. That failed Presidential candidate
has been in multiple meetings with Castillo and is now reportedly in line for a cabinet job, sic
transit gloria mundi.
The other major line that has calmed markets is how first Pedro Castillo, then his likely
economics team led by Pedro Francke have lined up in the last few days to ask BCRP head Julio
Velarde to stay on as head of the Central Bank, once his term expires in September. Velarde
officially replied to these official invitations by saying he’d think about it, the whole scene
looked staged as a deliberate pas-de-deux to calm financial markets and stop the Peruvian Sol
20
ts1
naJ
t01naJ ht71 ht42 ts13 ht7bef ht41 ts12 ht82 ht7ram ht41 ts12 ht82 ht4rpa ht11 ht81 ht52 n2yam ht9 ht61 dr32 ht03 ht6nuj ht31 ht02 ht72 ht4luj ht11
source: IKN calcs, TSX data

(PEN) from declining any further. The optics were good, but it’s anybody’s guess as to whether
Velarde will stay on. As it’s a final decision that comes in the first weeks of the new Castillo
government and away from the current fog of war, I have a strong hunch the whole show was
staged. The markets seem to agree:
Until further notice, an accurate and quick temperature check on the state of Peru’s economy
comes from its freely-floating currency against the USD. There’s currently country-level defence
at the PEN 4.00 line, but that’s bound to crack once the new government is installed.
Market Watching
A heads-up on Orezone (ORE.v)
Subject of a successful recent trade, we recently sold Orezone (ORE.v) ahead of expected time
due to obvious leakage of market-moving NPI, with insider trading patterns around the release
of strong drill results that left little to the imagination and a corporate reaction that belied its
complicity at some level or other. Tomorrow brings potential news and developments, as
Monday July 12th 10am PDT (1pm EDT), Orezone CEO Patrick Downey presents a live webinar
(free sign-up link here (10)), with Q&A session afterward. This is welcome, even though
questions are to be submitted in advance, mainly because of the blurb at the host site on
tomorrow’s gig:
Orezone will host an investor webinar on Monday, July 12th at 10:00 am PDT / 1:00
pm EDT to provide a corporate update and discuss the construction and development
activities at the Bomboré Gold Project.
Seeing “corporate update” first and then the opportunity to impress the audience with site
development later, suggests ORE may have something to say about its recent and costly
information leak. I will be on the call but listening-mode only, as once you know a company
replies with falsehoods there’s no point asking difficult questions.
Kuya Silver (KUYA.cse) redux
Last week’s main event, the officially sanctioned IKN summer silver trade did this last week:
21

It’s always annoying to see a stock make a temporary move higher on the back of a reco. It’s
as much opportunistic market makers as over-
eager buyers and last Monday showed that, as
KUYA was marked higher early but there were no
takers. By the time USA was back open on
Tuesday there was no hype, and seeing the
stock drop back to finish a penny down on the
week meant it traded with others.
That’s good, because it needs to. A reminder of
the YTD chart at KUYA this weekend, with the
silver company ETF (SIL) proxy for consensus.
While KUYA’s price weakness was compounded
by its recently closed $9.2m placement (a reason
to like the stock now), it started when David
Stein made a mistake. End April, KUYA opened up its second exploration front at its recently
acquired Kerr project in Canada and at the time, CEO Stein said this (11):
"We are very excited to start Kuya's second diamond drill program in 2021. Since
closing the acquisition of the Kerr Project in March, we have been reviewing a vast
amount of historical exploration work and other geological data. Even though the Kerr
Lake, Crown Reserve, Drummond and Silver Leaf mines have been heavily worked,
we have found little evidence of much activity below 100 metres and see tremendous
potential to extend known mineralization at depth and discover new silver veins. In its
peak year, 1909, this group of four mines alone produced more than 7 million ounces
from multi-percent silver ore, so today with better exploration, mining and processing
methods, we see a huge opportunity to unlock value in Canada's richest silver camp."
The unequivocal reply from Mr. Market, that the company was overstretching and burning too
much cash, must have come as quite a surprise. These days he’s downplaying Kerr Etc and
makes sure everyone knows the flagship and main focus of attention is Bethania. We should
get drill results back from there presently, so eyes on the wires.
McEwen Mining (MUX) unveils its copper plans
After the recent changes at officer and director level at MUX, this desk held out the reasonable
potential that Rob McEwen had learned to listen to other people on corporate direction. After
all, the whole point of bringing in a fire-fighter CFO to sort out the financial mess he’d made,
then running that series of equity raisings was to send a “new broom” message: Rob McEwen
had held off diluting the share count, refused to do deals with streamers, but at the same time
failed to deliver on operations and exploreco results. The result was a company one bad sales
month away from a cash crunch that would have seen him use his credit card to make payroll,
the incoming CFO would have make executive control of treasury, debt and all related matters a
prerequisite for the job.
With the announcement last week on McEwen Copper, we see a company that’s immediately
reverted to type. Now the perceived danger is out the way, Rob McEwen demonstrates he
hasn’t learned a single thing from nearly bankrupting his own company through financial
stupidity. The proposed deal may seem innocent enough, one where the current wholly–owned
subsidiary “McEwen Copper” is funded to the tune of U$80m and then spun out as a newco (in
around a year’s time), but it reminds us of the way the company tried to monetize Los Azules in
2011. The link to a dusty archive NR here (12), the relevant contents below:
TORONTO, ONTARIO--(Marketwire - March 17, 2011) - Minera Andes Inc. (the "Corporation" or
"Minera Andes") (TSX:MAI)(OTCBB:MNEAF) is pleased to announce that it intends to complete a
spin-out its Los Azules Copper Project into a new publicly traded company.
The Los Azules Project is a 100% owned advanced-stage porphyry copper exploration project
located in the cordilleran region of San Juan Province, Argentina near the border with Chile. It is
one of the world's largest undeveloped copper deposits with an indicated mineral resource of 137
million tonnes grading 0.73% copper, equivalent to 2.2 billion pounds of copper, and an inferred
mineral resource of 900 million tonnes grading 0.52% copper, equivalent to 10.3 billion pounds of
copper. Exploration and infill drilling continues with five drills currently operating at the Los Azules
22

Copper Project.
 Management believes now is the time to unlock the value and potential of Minera
Andes' world class Los Azules Copper Project.
 The spin-out of the Los Azules Copper Project allows Minera Andes shareholders to
retain exposure to a world-class copper deposit with a copper-focused management in
a pure copper vehicle.
 Minera Andes will continue to aggressively advance priority gold and silver projects with
the objective of adding ounces to the San José Mine and making discoveries at our
100% owned grass-roots projects surrounding Goldcorp's Cerro Negro property
(recently acquired by Goldcorp for $3.6 billion).
Etc. A decade ago, the mothership company was still called Minera Andes, but McEwen’s desire
to retain ownership control of assets (while getting others to pay) was clear. Cut to 2021 and
the news from MUX last week (13):
TORONTO, July 06, 2021 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE and
TSX: MUX) announces a non-brokered private placement financing of up to 8,000,000
common shares of its wholly-owned subsidiary McEwen Copper Inc. at a subscription
price of US$10.00 per common share, for gross proceeds of up to US$80 million (the
"Offering"). McEwen Copper currently has 17,500,000 common shares outstanding.
The problem is the price. As noted in the second part of our recent loom at MUX in IKN628,
MUX has carried Los Azules on its books at U$191.49m for years and that’s a problem when
your total mining asset book is $270m. In order to spin out Los Azules without damaging the
mothership’s balance sheet, McEwen now has to justify his own lofty valuation of the asset and
he’s trying to so by spending U$40m on $10 shares, then trying to convince others to do the
same. This transaction would value the entire, post-close McEwen Copper entity at 25.5m X
U$10 = U$255m and cover any shortcomings, the problem is that nobody else thinks Los Azules
is worth that much. In IKN628 we gave it $50m worth of weighting on MUX’s current share
price and perhaps $100m on the announcement of any deal, a long way from the opinion of the
MUX lead shareholder. Sadly for McEwen the market agrees with me, as seen here in this ten-
day as MUX dropped 10% in an otherwise flat market (GDX unch over the two weeks shown):
That is a market saying “Pay $10 a share if you like, Rob, we’ll wait until it floats and pay five.”
Conclusion
IKN633 is done, we end with bullet points:
 Harte Gold (HRT.to) is now at an inflection point and, in a normal free market, its
shares would be at risk of being crushed to zero by its welter debt and lack of liquidity.
But this is Canadian gold mining and the risk of Chapter 11 equivalent is zero, that
makes the risk in this trade much lower than most people realize.
 The copper market continues its battle between bears living in the abstract of the
markets and theorizing over paper trades, and bulls living in the real world and using
23

the metal to make things.
 Our new trade in Argonaut Gold (AR.to) has started well and as long as gold remains
North of U$1,800/oz, my sub-$3.00 cost average a true bargain.
 28-odd pages of script today but if you only remember one thing from this edition,
make it the two lines about Rio2 Ltd (RIO.v)
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.
Best, Mark
Footnotes, appendices, references, disclaimer
(1) https://www.calculatedriskblog.com/2021/07/schedule-for-week-of-july-11-2021.html
(2) https://iknnews.com/harte-gold-hrt-to-at-ten-cents/
(3) https://www.hartegold.com/news/harte-gold-reports-first-quarter-2021-results-provides-updated-guidance-for-2021-
and-initiates-strategic-review/
(4) https://www.hartegold.com/news/harte-gold-provides-update-on-strategic-review-process-and-announces-
amendment-to-senior-credit-agreement/
(5) https://www.hartegold.com/news/harte-gold-obtains-deferral-of-senior-credit-facility-and-hedge-payments-and-
waiver-of-financial-covenants/
(6) https://www.hartegold.com/news/harte-gold-announces-voting-results/
(7) https://iknnews.com/make-money-on-july-26th-with-copper-mountain-cmmc-to/
(8) https://www.argonautgold.com/English/news-and-events/news-releases/news-releases-details/2021/Argonaut-Gold-
Intersects-7.0-Metres-at-13.3-gt-Gold-at-Maginos-South-Zone-Approximately-1.5-Kilometres-from-the-Border-Between-
Magino-and-Island-Gold/default.aspx
(9) https://webfiles.thecse.com/MIRL-CSE_Form_7-Monthly_Progress_Report-June
2021.pdf?a3bUCo7BXvRYFMha9R4cNR54SYtulZD0
(10) https://6ix.com/event/orezone-provides-bombore-development-
update/?utm_bmcr_source=client_email&utm_source=client_email
(11) https://www.kuyasilver.com/news/news-2/news-2021/uyailveraunchesrillrogramattheerrilverroje20210429080000
(12) https://www.globenewswire.com/en/news-release/2011/03/17/1342195/0/en/Minera-Andes-Announces-Proposed-
Spin-Out-of-Los-Azules-Copper-Project.html
(13) https://www.mcewenmining.com/investor-relations/press-releases/press-release-details/2021/MUX-Creates-
McEwen-Copper-Which-Announces-80-Million-Series-B-Private-Placement-to-Advance-the-Los-Azules-Copper-
Project/default.aspx
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.
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