IKN #640Premium

The IKN Weekly
Week 640, August 29th 2021
Contents
This Week: In Today’s Edition, Talk is cheap but taper talk is not, US BLS Jobs on deck.
Fundamental Analysis: We need to talk about Orezone (ORE.v), Strategic Metals (SMD.v)
2q21 financials.
Stocks to Follow: Rio2 Ltd (RIO.v), Mene Inc (MENE.v), Argonaut Gold (AR.to), QC Copper &
Gold (QCCU.v), Minera Alamos (MAI.v).
Copper Basket: Overview, Regulus Resources (REG.v).
Producer Basket: Overview, Pretium Redux (PVG), Alamos Gold (AGI).
Tiny Dogs: Overview, Precipitate Gold (PRG.v).
Regional Politics: Argentina begins to roll out its mining strategy, What happened in Peru.
Market Watching: Tracking the Buy Peru call, Beaver Creek up in September (plus a word on
Aurcana (AUN.v)), Fiore Gold (F.v) 2021 calendar Q2 financials, Harte Gold (HRT.to): An eye on
the side bet, Minera IRL (MIRL.cse): Concerned Shareholders (2).
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
 Remember your author’s huffy and indignant “Never Buying Orezone Again!”
declarations back in June? Well folks, I may not buy precisely next week but, after
checking the 2q21 numbers out this weekend, it would be remiss not to write up the
compelling value ORE.v offers after its soft August. That’s the first of two fundies notes
in today’s main section, the second covers the Q2 numbers from Strategic Metals
(SMD.v) and gets up to date with this slightly neglected open trade.
 It’s one of the busy weekends for exploreco and developer numbers, which means that
well as the ORE.v and SMD.v notes, scattered around this weekend’s edition are views
on the numbers out of Fiore Gold (F.v), Minera Alamos (MAI.v) and Alamos Gold (AGI).
There were more to choose from, so we keep to the interesting stories this weekend.
 In Regional Politics, we need to keep up to date with the fluid situation in Peru and do
so, but Argentina gets more focus this weekend as the country begins to crank up its
marketing as a jurisdiction for mining.
 The Minera IRL (MIRL.cse) situation has quickly developed and we now know the
strategy CEO Benavides will used, that of obfuscation, ignorance and delay. We also
know the approximate size of our now forming Concerned Shareholder group. From
those, I propose a rough plan of action in ‘Market Watching’ but stress, I would warmly
welcome other suggestions from CS members (if you have any).
Talk is cheap but taper talk is not
Our geopolitical world and the Fed jawbone made for another rough passage last week, but at
least this time it ended positively. On the one hand we have Afghanistan, a total political mess
from start to finish, Biden’s policy howler about as clear as can be and, quite rightly the US
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giving him the backlash he deserves. Meanwhile and in real business news, the Fed and its
Kabuki Taper Talk Circus is keeping the plan (and the USD) in line. The fun part last week was
watching the Fed minions line up to promote an early taper, only to get Jay Powell slapping
down the idea at his Jackson Hole (virtual) speech and we’ll leave it to one Phillip Streible of
Blue Line Futures to put it into English (1):
“They’re not going to raise rates anytime soon and taper talk won’t come back into play
until next week’s jobs report. That cleared the path for gold, and as it broke above
$1,800, it’s eying the next resistance level at around $1,820”.
We agree. Powell’s use of the phrase “transitory inflation” and the weaker argument of “Delta
Is A Problem” were enough for the market to see no tapering in 2021, therefore USD and gold
adjusted accordingly. Here are two facts:
 GLD went up 2.1% last week.
 GLD inventories dropped last week by nearly ten metric tonnes, closing 1001.72mt Au
GLD gold holdings, 2018 to date (metric tonnes)
1400
1300
1200
1100
1000
900
800
700
600
500
It may seem counterintuitive for hard money proponents, but it’s no surprise to see GLD
inventories dropping at the same time as the gold price improves. The concept of the Fear
Trade in gold is established, but the first stages of that fear include weakness in broad markets
and, as most instos are so far out on margin these days that even a corrective period inside a
bull run creates financial weakness, firms that use GLD as their bullion entry point also use it to
liquidate assets and cover other liabilities. If gold continues to climb those same sellers last
week will be back buying as the Fear Trade moves into its classic period (dollar down, gold up,
S&P500 goes bearish a while). The virtuous circle of gold ownership is possible, but first the
market has to break the USD away from its tight range:
DXY this weekend sits at 92.61, the number we identified as the likely central point of the Fed’s
MMT plan over four months ago. That theory is still working (and if it ain’t broke don’t fix it) so
we can state that until there is real movement in the USD away from its current trading range,
there’s no reason to anticipate gold moving up further aside from a temporary spike. It is still all
about the US Dollar, so if gold surprises this desk by moving beyond U$1,800/oz in September
it would become a canary in the coalmine and signal trouble for the US recovery program.
However, at this juncture that would be the tail wagging the dog: “Taper Talk” is by far the
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 8.20 GLD: Inventory/Price Ratio, 2016 to date
8.00
7.80
7.60
7.40
7.20
7.00
6.80
6.60
6.40
6.20
6.00
source: SPDR GLD data 5.80
5.60
61/4/1 61/61/3 61/62/5 61/8/8 61/81/01 61/92/21 71/41/3 71/42/5 71/4/8 71/61/01 71/72/21 81/21/3 81/22/5 81/2/8 81/21/01 81/42/21 91/8/3 91/02/5 91/13/7 91/01/01 91/02/21 02/5/3 02/51/5 02/82/7 02/7/01 02/71/21 12/3/3 12/11/5 12/22/7
Source: SPDR data, IKN calcs

biggest macro influence on markets today and in it, Jay Powell has the mechanism to raise or
lower the USD Index (DXY) price almost at will. We have witnessed once again how just a little
Taper Talk is enough to strengthen or weaken the USD.
US BLS Jobs on deck
It’s a busy week for US macro data including trade deficit readings, but Friday is the main event
and brings our regular date with the US BLS Jobs report. For the month of August 2021 and
according to the ever-reliable Bill McBride (2), consensus this weekend is for 728k NFP jobs
added and a headline unemployment number of 5.2%. Friday’s data will be an obvious moment
to revive Fed taper talk and add to the jawbone one way or another.
Fundamental Analysis of Mining Stocks
We need to talk about Orezone (ORE.v) (All amounts in US Dollars unless stated)
Every impulse of feeling should be guided by
reason; and, in my opinion, exertion should
always be in proportion to what is required.
Pride and Prejudice, Jane Austen, 1813.
Back in IKN629 dated June 13th, these pages threw a righteous huff over the obvious insider
trading that had surrounded the company's drill hole NR, earlier that week. In a nutshell, after a
weekend when ORE insiders decided it was in the best interest of the company and all
stakeholders to be greedy, self-serving pigs, we saw a Monday with strong buying in ORE.v on
no news, then a Tuesday pre-bell NR (3) announcing strong step-out drill results ay Bomboré.
The market reacted the way it did, sending the stock over C$1.60 and getting plenty of interest,
as prices held most of the week. However we also acted the way we did, however this time
fortune smiled upon your author's righteous hissyfit. But before getting to the chart and to wrap
this preamble FWIW these pages later heard, under promise of confidentiality, a few more
snippets about what went down and while there’s no breaking confidentiality today, we can
confirm that while I missed a couple of key details, the thrust of the analysis is correct. Anyway,
back to the price chart:
Recent market action has hit ORE.v harder than most and scribbled on the visual is my pet
theory as to why. A subjective justification of my position perhaps, but we did see sellers arrive
all the same. I was one of course, but there were others, such as the insiders buying on the
previous Monday (no need to wait three days and go into those petty details such as records of
ownership). Also, we weren’t the only people to see the same opportunity to sell a spike to new
money and that new money is naturally weaker-handed, so it stands to market reason they
would reach stop loss limits at roughly the same point. Here we are today, with ORE.v back at
C$1.21 or, in practical terms, U$1.00.
And we need to talk about that, because Orezone (ORE.v) now trades at a very cheap
looking share price. Auto-jests on hissy-fits and self-righteous moral stands against bad
practices in mining are only jokes to a certain point, as over time it’s not just a principle or
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moral hill upon which to die. As related example with separate roots, there’s never been any
hint of illegal trading in Regulus (REG.v) over the years, instead its own style of corporate
ineptitude was enough to get me throwing my toys out the pram. Cut to 3q21 and without
labouring the point, there are many detractors of my original sell call who’d do well to consider
how it has panned out over time. Orezone is another; while the whole market got hit in August,
companies with stronger-handed holders mostly fared better and beat ORE’s showing in the
period. Funnily enough it’s not that difficult, all you need to do is deliver on promises and tell
the truth but ORE could only managed one of the two. It was enough to see the stock sink in
the last few weeks but now, the mathematics begins to speak and as Rick Rule likes to say,
“The cure for low prices is low prices”.
We can dwell on the philosophical point of how moral stances have a limit price if you prefer,
but at some point the math gets too compelling to ignore. That’s often the moment one’s moral
objections get stored away for later, but that’s just me, more important re the ORE 2q21
financials, filed last week and figures that go beyond subjective chatter. The math tells us in
clear terms about the value, we begin with the updated balance sheet overview charts:
ORE.v: Assets
80
70
60
50
40
30
20
10
0
To the right, liabilities are up but still small, that’s trade payables and exactly what we want to
see, a company expanding its balance sheet as it
constructs. To the left, we see the first cash
injection arrive at ORE, part of the staged arrival
of capex cash planned though the build-out. We
then see cash drop sharply as the cash is turned
into mine asset and with around U$20m drained
(plus trade payables used), ORE is not hanging
around. This shows in the main liquidity trackers,
for the sake of brevity we limit to working cap
(right). As you can see, ORE is all about spending
the money received. In fact these balance sheet
charts are enough to make the case for ORE
today, with cash burn and mine asset value
development just as good at mapping the build-
out as anything in quarterly operations on the statement of cash flows. We’ll round out the new
bull case for ORE with just one more chart, that of shares out: With 323.5m shares out and no
more financings expected…
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81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2
$m ORE.v: Liabilities per qtr
10
fixed 9
other current 8
cash 7
6
5
source: company filings 4
3
2
1
0
81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2
source: company filings
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LT liabs
current liabs
ORE.v: Working Capital per qtr
65
60
55
50
45
40
35
30
25
20
15
10
5
0
81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2
source company filings/IKN ests
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ORE.v: Shares Out
42.451 42.451
93.012 93.012 93.012 13.212 33.312 83.312 83.312 51.152 51.152 26.252
56.252
39.223
35.323 400
350
300
250
200
150
100
50
0
71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2
source: company filings/IKN ests
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….combined with this weekend’s share price of C$1.21 (i.e. U$1.00)…
…we are offered a company with a market cap of U$323m. This is where hearsay and opinion
meet hard reality: At Bomboré, ORE is building a mine with a NPV of at least U$700m and its
share price does not reflect that fact. We know that because we’ve done the math and while
the Bomboré FS uses gold at just U$1,300/oz and remains robust, moving the price to a wholly
reasonably U$1,750/oz pushes NPV to U$720m.
Bomboré: Post-tax NPV sensitivity to gold price
NPV in U$m
900
800
700
600
500
400
300
200
100
0
1170 1300 1430 1560 1690 1750 1900
source: ORE FS, IKN calcs
For sure that NPV is a moving target (just like them all), with price sensitivities in other matters
also important. So this table from the FS (right) is for
those worried about the recent reported capex hikes
due to input cost inflation. Yes, for sure we now
expect ORE to pay more for its rebar, cement and
other material costs but as the project sensitivity
overview table from the company literature explains,
a 10% hike in Capex takes maybe U$28.5m from the
NPV. Compare that to the way gold has launched the
NPV higher. The moving target NPV also brings
rewards, such as the re-rate as we move towards
production day one. For example, U$21.5m of the
U$177m or U$189m capex ticket is already baked
into the project thanks to the capex works of the first
six months of this year. Spent, done, in the books
and no further weight on the financials.
Back in IKN629 dated June 13th one of my huffy lines as I explained my sale was “…Tuesday
lunchtime, I sent out the Flash update (see Appendix 1), liquidated my position in Orezone and
took profits. I will not return to ORE.” So much for that and while we’re at it, I don’t mind
admitting the truth; this change of tune is driven by greed and FOMO, because ORE doesn’t
have to do anything else except deliver on its plans and in one year’s time, this company worth
U$323m today would have spend another U$150m, but now be in the possession of something
worth at least U$700m. The discrepancy is too great to ignore, especially as ORE is largely in
the same position as the one described in the Rio2 note below; the financing was the hard bit
and now...
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…that team with that track record for success is reportedly on track for first pour in 3q22, a
year from now. While ORE may not trade at or above NPV at first, history also shows the re-
rate we can reasonably expect. One such example is Victoria Gold at Eagle, which went into
operation in the Canadian Yukon on the back of a project that was eventually given a C$1,034m
NPV in December 2019. Today and even after coming down from the C$20 level to the C$14
level recently, its market cap is nearly 90% of the project NPV at construction. With everything
now coming into line at Bomboré, there is simply no way at 0.45X NPV. Perhaps ORE re-rates
directly to the levels seen at peers such as Victoria Gold and gives a double, more likely the re-
rating comes in stages and but at come point in the next 12 months, Orezone will either sell to
the highest bidder (we previously supposed a scenario in which logical suitor Endeavour
(EDV.to), which is bound to be at or above NPV else get rejected by the board, or its equity
reflects more accurately its 90% ownership of Bomboré.
Bottom line: Insider trading in the Vancouver office r not, what matters now at Orezone is the
build-out of the mine under Lyco in Burkina Faso. With that on track, ORE’s share price can only
appreciate through the re-rating process and as long as gold doesn’t cave in on us, it’s difficult
to see how ORE shares remain under C$2.00 for much longer. Fully cashed up and not about to
surprise us with a financing, ORE will be pushing its story hard during conference season and
from its current price base, represents compelling value for both nar and long-term players.
Personally I’m still debating whether to buy back in and won’t mind missing the first 10c or so
or any move, I’m also considering another add to Argonaut (AR.to) before any new trade. But
those of you looking for a leverage play on gold with guaranteed asset appreciation, look no
further. Great entry point this weekend, too.
Strategic Metals (SMD.v) 2q21 financials
Friday evening saw our small and underwater trade based on Canadian mining land asset
values, Strategic Metals (SMD.v), file its 2q21 financial period.
SMD.v: Assets 100
90
80
70
60
50
40
30
20
10
0
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81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2
$m fixed SMD.v: Liabilities per qtr other current cash 11
10
9
8
7
6
5
4
3
2
1
0
source: company filings
81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2
source: company filings
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LT liabs
current liabs

It’s been a while since we focused on its fundies and the trade hasn’t run well to date, which
means it’s high time we did something around the stock so the filings of its Q2 provides the
best excuse. Therefore today we are about the numbers, crunching the new quarter to the
database and showing the most pertinent graphics as a result, The idea is to give the state of
play at SMD and explain in more detail the TL:DR summing up of the note: Even though it’s in
the red, I am still a happy holder of SMD and see plenty of long-term value. Preamble done, we
dive straight in with the balance sheet overviews of assets and liabilities, as seen in the charts
above. Very little has changed in overall value, most treasury becoming fixed assets and the
slight drain on cash better seen in the chart, below. The important bits of a balance sheet for
explorecos are the currents, here are cash treasury and working capital to show that everything
is in order:
SMD.v: Cash treasury per qtr
20
18
16
14
12
10
8
6
4
2
0
As a general rule SMD sips cash, so its C$14m and
bits as at end 2q21 is a very comfortable position.
Equally, working cap of C$21.743m is optimal, with
precious little real world drag from liabilities. In the
period, the share count notched up by 1m, now at
107.81m S/O. There’s no real issue here, but the
count has no reason to rise further in the quarters
ahead as SMD has more than enough treasury.
Moving to where the cash went this quarter,
operations in the quarter were low key as
evidenced by the corporate burn rate. It gets
difficult to run a company for less than this:
other
SMD: Quarterly expenses breakdown
C$m Share based comp
1.6 research exp
prof fees
1.4
mgmt admin salaries
1.2 mgmt admin fees
IR/shareholder
1
G&A
0.8 Cons fees
0.6
0.4
0.2
0
1q18 2q18 3q18 4q18 1q19 2q19 3q19 4q19 1q20 2q20 3q20 4q20 1q21 2q21
source: SMD filings
Run with its usual eagle eye on treasury SMD has kept the lid on costs. So, with improving
balance sheet and strong treasury, what’s the problem and why are we underwater?
The answer is mark-to-market: SMD’s asset book is all about its third-party positions, built from
the smart way it uses the project generator model. Over the years it means SMD builds large
7
81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2
source: company filings/IKN ests
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30 SMD.v: Working Capital per qtr
25
20
15
10
5
0
81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2
source company filings/IKN ests
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SMD.v: Shares Out
44.98 44.98 44.98 44.98 44.98 44.98 44.98 865.69 185.69 646.69 646.69 17.601 57.601 18.601 18.701
120
110
100
90
80
70
60 50
40
30
20
10
0
71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2
source: company filings/IKN ests
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positions in other explorecos (often with connected boards) but the 2021 has affected them all.
You get the current listed companies held by SMD, with its percentage and resulting NAV:
Equity positions and cash held by SMD
Ticker S/O PPS Mkt cap SMD % SMD NAV
RK.v 208.036 0.105 21.84 33.54% 7.33
GGL.v 45.583 0.12 5.47 38.36% 2.10
TUF.v 177.688 0.065 11.55 19.59% 3.83
PRG.v 106.473 0.11 11.71 19.15% 2.24
SNG.v 84.486 0.1 8.45 18.07% 1.53
ATC.v 162.384 0.14 22.73 2.36% 0.54
TG.v 80.099 0.085 6.81 8.62% 0.59
subtotal 18.15
Terra 4.0
Treasury 14.0
Total C$m 36.15
That’s plenty down from where we were before, this price chart showing SMD and its holdings.
If we credit SMD with $4m in value in the Terra cement start-up and include treasury, then
subtract the approx C$3m in current liabilities at SMD and divide into 107.81m shares out, we
arrive 30.7c per share and explains the main SMD stock price driver:
This weekend’s 31c for SMD is hardly a coincidence, but it does allow for two avenues for price
appreciation, aside its own work of course. The classic course of success for the project
generator is to free-ride the success of others, so any of the holding above could deliver. Aside
that, our SMD trade has always been about the relative asset value of Canadian mining
prospects and to my surprise they stalled in 2021. But even though my timing has been wrong,
this trade isn’t dead and it wouldn’t take much more than $100/oz added to the gold price to
see money return to explorecos.
The tightly-run nature of SMD was again on display in 2q21 and its one of the company’
greatest attributes; with treasury on board SMD affords the luxury of time to the retail holders,
you’re not going to get diluted out of future success due to a fast burn rate. In the meantime,
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it’s been delivering NRs on summer work programs (these three lines ripped from the website):
 On August 18, 2021, Strategic announced the results from its 2021 work
program on the Nikki property.
 On August 11, 2021, Strategic announced the results from its 2021 work
program on the Mint property.
 On August 6, 2021, Strategic announced the results from its 2021 work
program on the Bix project.
That will continue, so newsflow is guaranteed. The bottom line is to continue to allow this trade
time to mature; the overall position is personally small, if momentum arrives there’s always the
opportunity to add and trade any rebound. Consider this author a patient holder of SMD, rather
than a happy one, as he naively waits for Canadian mining land to double in value overnight.
Stocks to Follow
What a relief! The relief rally arrived before the end of August, some pressure off portfolios
before the serious season begins. The positive effects of last week’s pop were seen across the
Stocks to Follow, too, with just one loser (MENE.v down a penny) an one UNCH (MIRL.cse)
among the 17 positions. That means 15 winners and particular strength seen in Copper
Mountain (CMMC.to up 12.5%), Top Pick Rio2 Ltd (RIO.v up 11.7%), Great Bear (GBR.v up
11.7%) and Trilogy (TMQ up 10.7%), but when 15 out of 17 stocks go in the same direction
you know it wasn’t your stock picking prowess that made the difference.
We currently have 17 open positions, that is likely to change soon. Just five of them are in the
green and the others are in the red, but that balance can shift back in our favour in days. This
is junior mining, after all.
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$0.59 181.0% $1.14 tgt Aug'20, #1 idea
Rio2 Ltd. RIO.v STR BUY C$0.83 22-Apr-18 C$0.67 -19.3% $1.30 tgt on capex raise, Jul21
Recommended stocks (In order of preference)
Copper Mountain CMMC.to STR BUY C$3.51 18-Jun-21 C$3.32 -5.4% reaffirmed buy on strong Q2
Argonaut Gold AR.to STR BUY C$2.92 25-Jun-21 C$3.05 4.5% All right signs, avging up
Trilogy Metals TMQ BUY U$1.84 15-Sep-19 U$2.07 12.5% Cu for 2021, going well
Amarillo Gold AGC.v BUY C$0.31 30-May-21 C$0.275 -11.3% add at 30c/32c, capex NR soon
Strategic Metals SMD.v hold C$0.42 31-Jan-21 C$0.31 -26.2% Canadian land bet/Value trap?
Excelsior Mining MIN.to BUY C$0.93 10-Mar-19 C$0.58 -37.6% Delayed, but still great value
Aldebaran Res. ALDE.v BUY C$0.68 16-May-21 C$0.59 13.2% Bet on big copper, pol risk ok
QC Copper &Gold QCCU.v BUY C$0.205 25-Apr-21 C$0.165 -19.5% Cu Jr, fast-tracking resource
Royal Road Min. RYR.v BUY C$0.155 17-Mar-19 0.27 74.2% Model paying off in Nica
Wolfden Res. WLF.v hold/sell? C$0.30 11-Apr-21 C$0.19 -36.7% Zn trade needs to move soon
Great Bear Res GBR.v BUY C$15.83 26-Aug-20 C$13.51 -14.7% Binary M&A trade, wait for print
Cartier Resources ECR.v hold/sell? C$0.32 21-Mar-21 C$0.26 -18.8% Thinking of selling
Aurelius Min. AUL.v hold/sell? C$0.75 28-Jun-20 C$0.36 -52.0% 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$0.84 23.5% LT bet, added again July'21
Closed in 2021 closed close price
9

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 a couple of our covered stocks:
Rio2 Ltd (RIO.v): One weekday afternoon last week, CEO Alex Black and I had an hour of
coffee and chat after a gap of few weeks. He went off off-radar while the financing closed and
quite right too, so after catching up on stuff we dedicated time to Rio2 matters. Once those
hats were on, the main takeaway from my meeting was that CEO Black and his team are happy
with the timeline and schedule and has all the cash it needs at this point to roll out the
construction plan. The EIA permitting track is on-time and going well, we can expect the permit
award March-April 2022. As this is the main critical path item (a heap leach is not technically
difficult to construct and its remote location will speed the process up), RIO is now procuring
other long lead time items as it sees fit. Next up, CEO Black reports some input cost inflation so
far, just like everybody else. However and once again, an open pit heap-leacher is far less
sensitive to steel rebar inflation then other types of mines. He emphasized that there's plenty of
contingency built into the capex budgets, and the nature of the financing gives RIO.v a de facto
U$15m standby loan, so even if capex busts above a high-end U$135m it is still covered by
liquidity on-hand.
The debottlenecking process is going as I envisaged, it’s one the wider market hasn’t grasped
yet. Other mines in other places run by different teams will normally see re-rating as production
arrives and then the company moves into positive free cash flow. It’s all about risk, and the
market perceives the most critical risk between the start of the build and when the mine goes
into operation. Not here, the major critical risk moment is now behind us. It may not be the
optimum financing package (e.g. 72c would have been less dilutive), but it’s not a bad one
either and the names backing this company (BHPP, WPM) mean the technical work behind the
project has been thoroughly revised and discussed. No folks, the market has it wrong and in
the case of Rio2 at Fenix, the only way is up from now. The major critical milestone is in the
past, the build-out is in the hands of seasoned professionals with a track record not just of
success, but sparkling success at building and running mines. We are in Chile, the jurisdiction is
optimum, the EIA on track and that’s the critical path item, we’re going to get a lot of work
going on behind the scenes in the next six months as the company prepares for the moment it
can build its machine.
Bottom line: no more share dilution, the mine is on-time, the company is now getting busy. We
shareholders will see that too, as RIO.v will certainly up the frequency of NRs and development
updates now the financing is closed. Top Pick at 67c? Of course, it’s a double in 12 months and
that’s just the start, don’t expect me to sell a single one of these for years.
Mene Inc (MENE.v): A quick line to note that MENE.v is set to report its 2q21 tomorrow,
Monday August 30th. Expect a rundown of salient points next weekend, most likely in ‘Market
Watching’, we’re not making a habit of non-mining stocks in this publication and that wont’
change. Mene, a company that buys the gold they mine, is our exception to prove the rule.
It’s also been going fairly well this year, too, though a look at the near-three year chart of
MENE since IPO shows the technical importance of the current level:
10

After 85c every share is a winner and as blue-sky breakout potentials go, there aren’t many
clearer than that. More next weekend, happy holder and will continue to add slowly to this
long-term position.
Argonaut Gold (AR.to): This needs a table-bang. You get a repeat of the same message as
last week, relative strength of AR versus the market is excellent, that continued over the week,
here’s the YTD chart instead of the near-term example to show that I am not joking:
Remember the trade set-up here, AR is “Doing a Wesdome” and its trading matches as well.
We are now in the phase of time that WDO went through as it fiddled between $2.00 and
$3.00, back when I couldn’t understand why it wasn’t already at $5 or beyond. Don’t get blind-
sided by the 5c or 10c moves in AR.to, it won’t matter much if you buy at just over C$3.00 or
just below when the stock is trading for 5. Or beyond.
QC Copper & Gold (QCCU.v): Way back at the start of this development story and trade, my
position was that the company’s plan to get a resource on Opemiska to market by August was
very difficult. As it happens, what with lab back-ups and new Covid-19 protocols I get to be
right and QCCU needs a couple more weeks to get to the finish line but this is no biggie and
probably more annoying for CEO Stewart than us; he is sure to have a marketing plan waiting
in the wings that cannot happen until the resource is published. I’m hearing “maybe a couple of
weeks”, therefore set the clock for the last week of September latest. Acceptable as long as the
numbers are good, we may also get the benefit of an improving copper price by then. Holding,
with views to a add/hold/sell call once the resource number is known.
Minera Alamos (MAI.v): MAI filed its 2q21 financials on Friday evening and to be honest,
there’s little of market-moving news contained in the figures. What we care about most at this
stage is a corporate structure with the funds to carry out its (time extended) build and
commissioning at Santana, so the MAI balance sheet is enough for our purposes. Here’s the
assets overview chart, showing cash transforming into fixed assets.
11

MAI.v: Assets
40
35
30
25
20
15
10
5
0
12
61q4 71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2
$m
fixed
other current
cash
source: company filings
Liabilities continue to be optimum:
MAI.v: Debt Breakdown per qtr
10
9
8
7
6
5
4
3
2
1
0
61q4 71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2
source: company filings
srallod
fo
snoillim
LT liabs
current liabs
He above underscores just how “bootstrap” MAI is;
they are putting together an operating gold mine
and doing it for peanuts, no need to weigh down
the balance sheet with new credit lines, it’s all done
from cash treasury. On the subject of cash, MAI
helped its cash position out by selling most (not all)
of its Prime Mining (PRYM) share position during
the quarter. Liquidity is looking fine (right).
As expected, the share count has now stabilized.
We stand at 441.939m S/O at end 2q21, that’s up
another 2.7m since then due to the exercise of
some due options. With around 445m shares out
and just 26m or so derivatives out, MAI is now a
known entity and we’re not expecting any further share raises.
MAI.v: Shares Out
500
450
400
350
300
250
200
150
100
50
0
61q4 71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2
source: company filings/IKN ests
serahs
fo
snoillim
30 MAI.v: Working Capital per qtr
25
20
15
10
5
0
-5
Summing up the numbers, everything in good stead as long as Santana delivers and on that
61q4 71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2
source company filings/IKN ests
srallod
fo
snoillim

score, we present the other need-to-know from the MAI Q2 filings, this segment of the MD&A:
In July and August 2021, despite unusually heavy seasonal rainfall the site design
proved resilient and mining activities continued to open up the Nicho Norte starter pit
and provide greater working space for larger mining trucks and equipment to operate
within it. Mining rates continued to increase through the period with the start of gold
leaching operations commencing (August) on the initial mineralized material that will be
used in the final testing of processing facilities. As rainfall returned to more historical
norms gold concentration in the pregnant pond continued to rise in preparation for the
first loading of gold in the Company’s carbon plant and the subsequent first gold
production.
While faced with the challenges of starting up the mining operation in a particularly
tough rainy season, the progress made to date and trajectory of mining rates has
so far been in line with the Company’s internal planning that supports Santana
producing net cash flow from operations by year-end.
You author adds the bold type and the message sounds fine by me. MAI remains a clear and
obvious Top Pick and my largest personal position of any mining company.
The Copper Basket
After thirty-four weeks of 2021, The Copper Basket shows a gain of 23.16% 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 1262.40 11.74 93.1%
2 Copper Mtn CMMC.to 1.81 207.5 688.90 3.32 83.4%
3 Oroco Res OCO.v 1.85 186.96 471.14 2.52 36.2%
4 Marimaca Cop MARI.to 3.25 87.737 355.33 4.05 24.6%
5 Western Copper WRN.to 1.57 135.798 287.89 2.12 35.0%
6 Amerigo Res ARG.to 0.80 181.79 230.87 1.27 58.8%
7 Excelsior Min. MIN.to 1.12 273.585 158.68 0.58 -48.2%
8 Regulus Res. REG.v 1.07 101.85 85.55 0.84 -21.5%
9 Aldebaran Res. ALDE.v 0.455 125.24 73.89 0.59 29.7%
10 C3 Metals CCCM.v 0.115 438.56 65.78 0.15 30.4%
11 Doré Copper DCMC.v 1.00 53.304 41.04 0.77 -23.0%
12 Element 29 Res ECU.v 0.45 68.281 38.92 0.57 26.7%
13 Chakana Cop PERU.v 0.60 111.41 36.21 0.325 -45.8%
14 Chibougamau CBG.v 0.165 53.077 12.21 0.23 39.4%
15 US Copper USCU.v 0.105 87.53 11.82 0.135 28.6%
NB: All stocks in CAD$ Portfolio avg 23.16%
60% The Copper Basket 2021, weekly evolution
A positive week for The Copper Basket, 55%
though the rebound we saw was mostly 50%
45%
about the larger and better traded
40%
companies, smaller stocks with less volume 35%
30%
didn’t follow their leaders and as a result, the
25%
rebound wasn’t as sharp as for other metals. 20%
15%
We had nine winners (SLS.to, CMMC.to,
10%
MIN.to, WRN.to, MARI.to, ARG.to, REG.v, 5%
ALDE.v, ECU.v) and six losers (OCO.v, 0%
PERU.v, CCCM.v, DCMC.v, USCU.v, CBG.v)
with no unch stocks and most of the moves
moderate in either direction, the only double
figure percentage move of the week from Copper Mountain (CMMC.to up 12.5%).
For a change copper stocks weren’t led by the metal and to ring those changes, today we
13
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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 ht81 ht52 ts1gua ht8 ht51 dn22 ht92
source: IKN calcs

present a longer view chart that underscores the relatively…dare we say it?...stable nature of
copper pricing in 2021. We’ve seen spike highs and spike lows, but the price is drawn once
again to our current U$4.30/lb median.
The main macro copper news of the week
came from China (duh), where its official
National Administration of Foodstuffs and
Strategic Reserves announced a auction
sale of 150,000 metric tonnes of stockpile
metal, including 30kmt copper 70kmt of
aluminium and 50kmt of zinc, “to guarantee
supply and establish the price” of the
metals. This is obviously bullish and of clear
help to number crunchers such as this
desk, China is drawing a floor price for the
metal at or around the prices available
today. In effect, not once but twice this year China has stated to the market “We say
U$9,500/tonne is the right price for copper”, first by jawboning prices down from higher levels
and then selling the stuff at that price. Unfortunately for China and happily for us, its insistence
doesn’t put in a ceiling price, merely a floor from which it moves upward once the temporary
effects of the scrap glut and these sales wash through. Once again (and until blue in the face),
this desk asks you to look further than a quarter out when planning your copper trades,
because the people with the big sector money do the same. The real driver of copper prices is
the yawning deficit that’s now on the horizon; debate whether 2021 and 2022 will be surplus if
you like, the reason to own ALDE, TMQ, QCCU and others is 2023 and beyond.
It’s (just about) the end of the month, we go with our long-term copper inventory charts before
focusing in on last week’s action. Once again, the dearth of copper in SHFE warehouses speaks
clearly from both percentage (above) and total (below) charts:
Copper inventories: percentage held per exchange
80
70
60
50
40
30
20
10
0
14
21.naJ ram yam luj pes von 31.naJ ram yam luj pes von 41.naj ram yam luj pes von 51.naj ram yam luj pes von 61.naj ram yam luj pes von 71.naj ram yam luj pes von 81
naj
ram yam luj pes von 91
naj
ram yam luj pes von 02
naj
ram yam luj pes von 12
naj
ram yam luj
LME Shanghai Comex source: Cochilco
Copper inventories, per month, 2012 to date
1000000
900000
800000
700000
600000
500000
400000
300000
200000
100000
0
21.naJ ram yam luj pes von 31.naJ ram yam luj pes von 41.naj ram yam luj pes von 51.naj ram yam luj pes von 61.naj ram yam luj pes von 71.naj ram yam luj pes von 81
naj
ram yam luj pes von 91
naj
ram yam luj pes von 02
naj
ram yam luj pes von 12
naj
ram yam luj
Mt Cu source: Cochilco
Comex
Shanghai
LME

And once again, it may look as though the LME compensates for that by being highly stocked…
LME copper stocks, 2014 to date
400000
350000
300000
250000
200000
150000
100000
50000
0
15
41.naj ram yam luj pes von 51.naj ram yam luj pes von 61.naj ram yam luj pes von 71.naj ram yam luj pes von 81
naj
ram yam luj pes von 91
naj
ram yam luj pes von 02
naj
ram yam luj pes von 12
naj
ram yam luj
source: LME data
reppoc
sennot
cirtem
…but it’s nothing to write home about in historical terms. What’s more, LME cancelled warrants
rocketed higher last week, up almost 80kmt to close at 100,175mt. That’s indicative of
tonnages about to leave LME warehouses, even our 254k is now under pressure.
Now our regular weekly segment on world copper inventories, data supplied by Chile’s Cochilco:
 The World aggregate tonnage for copper stocks rose marginally last week, up 1,579
metric tonnes (mt) and the final total 382,351mt.
 At the SHFE, yet another drop into tight numbers, 3,185mt lost by its warehouses to
close at 82,390mt. There’s more on the issue below, with the dedicated chart.
 The LME added a modest 2,800mt, however and as mentioned above, LME cancelled
warrants jumped by nearly 80kmy to close over 100,175mt. We don’t know whether
the copper will physically leave warehouses or whether it’s a financial chess move, but
Occam’s Razor tells us it’s bullish.
 At the Comex, another small 1,964mt addition puts total stocks at 44,711mt and
accounts for the whole aggregate change by itself. Calm before the storm.
Here’s the Shanghai-only inventories chart, plus (by demand) below the chart showing the last
four years against each other:
Shanghai Futures Exchange Warehouse Stocks, 2014 to date
400000
350000
300000
250000
200000
150000
100000
50000
0
31'13ceD ht9 ht81 ht72 ht5tco ht41 dn22 5102
dr3yam
ht21 ht02 ht92 ht7bef ht71 ht62 ht4peS ht31 ht92 ht9 ht81 ht72 7102
ht5von
ht41 ht52 ht01 ht91 ht82 9102
ht6naJ
ht71 ht62 ht4gua ht31 dn22 0202ts1ram ht01 ht91 ht72 0202ht6ced ht41 ht52 1202ht4luj
Mt Cu
|
source: Cochilco
At this point thank you reader TU for your observation, the chart below is indeed better to see
the tightness in the SHFE market this year. The only time its warehouse inventories have been
lower than today in the last four years was at the turn of ‘21, when seasonal lows are expected.
A straightforward glance at the other years tell us SHFE could lose another 50k from here to the
end of 2021 and if that came to pass, copper would surely trade at a higher USD price.

MT Cu SHFE copper inventory levels, 2018 to 2021 Jan to Aug
400000
2021
350000 2020
2019
300000
2018
250000
200000
150000
100000
50000
0
1 2 3 4 5 6 7 8 91011121314151617181920212223242526272829303132333435
source: Cochilco data
Bottom line: China’s strategic sale of 30kmt copper will be swallowed whole by this market.
Now for a thought on just one stock, as the house piñata stock Regulus (REG.v) may be
winding up momentum:
Regulus Resources (REG.v): The first time REG makes a serious move above 80c since Peru
went crazy, also happens to be just before Labor Day:
Time before, we could take REG more seriously as an exploration entity. These days it’s
relegated to an optional trade on copper and a
Vancouver promo vehicle. REG has a lot to prove
before seeing any investment cash, but seeing it
move the way it did last week, just days before the
traditional promo season begins, is worthy of
mention. Personally not a set-up I’m going to trade
(I’m long ALDE for basically the same reason, plus
my dreams of becoming a savvy and successful
fliptrader were killed by reality long ago), but those
of you who trade momentum might want to keep an
eye on traded volume as we move through the Labor
Day period. The 5-day chart (right) makes me think
of upcoming promotion campaigns, too.
The Producer Basket
After thirty-four weeks of 2021, the Producer Basket shows a loss of 12.58% to level stakes:
16

company ticker price 1/1/20 Shares out Mkt Cap (U$Bn) current pps gain/loss%
1 Newmont NEM 59.89 805 46.84 58.19 -2.8%
2 Barrick GOLD 22.78 1778.04 35.99 20.24 -11.2%
3 Agnico Eagle AEM 70.51 244.187 14.30 58.57 -16.9%
4 Kirkland Lake KL 41.27 267.056 10.53 39.44 -4.4%
5 Kinross Gold KGC 7.34 1261.07 7.63 6.05 -17.6%
6 Endeavour Min EDV.to 29.62 252.568 6.42 30.49 2.9%
7 Pan American PAAS 34.71 210.262 5.43 25.83 -25.6%
8 B2Gold BTG 5.60 1051.697 4.10 3.90 -30.4%
9 Alamos Gold AGI 8.75 392.739 3.13 7.98 -8.8%
10 Pretium Res PVG 11.48 187.833 1.92 10.21 -11.1%
Prices in U$ except EDV.to (share price in CAD$ and mkt cap in approx USD) Port. avg -12.58%
After the beatings of the last few weeks, the relief rally arrived. All ten of our basket component
stocks were week-over-week winners no need for lists of tickers today, instead we note our
basket beat out the GDX benchmark by a few tenths thanks to the higher weighting we give to
medium caps Alamos (AGI up 9.6%) Pan American (PAAS up 7.9%) and Pretium (PVG up
7.4%), all of which out-performed the Tier One names.
The 2021 Producer Basket: Weekly performance and 20%
comparative to GDX control
15%
10%
5%
0%
-5%
-10%
-15%
-20%
The gap is closing, there’s still hope for the list in our
annual quest to beat GDX (we are 4 from 5, if
memory serves).
Pretium Resources (PVG): Now in steady–state
production and with reasonable grounds to believe
its guidance, we’ve already picked PVG to out-
perform in the last two quarters of 2021, more
because it’s getting taken more seriously as a
financial entity. PVG has passed the point of
justifying its market cap on promises of exploration
and discovery (chart right).
It out-performed peers a little last week, but 2% is nobody’s new trend. Watching brief.
Alamos Gold (AGI): The week’s big winner, up
9.6% and deservedly so, after posting strong
earnings, declaring a 2.5c quarterly dividend and a
completed share buyback of 600,000 shares,
extinguished at treasury for an average of $7.50
during August. That makes over 800k shares bought
back this year and the company said the policy would
continue. As for the price action (chart right), it’s not
just Argonaut (AR.to) and its Magino showing positive
17
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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 ht81 ht52 ts1gua ht8 ht51 dn22 ht92
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%
basket
gdx control 0.0%
source: Google, IKN Calcs 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 ht81 ht52 ts1gua ht8 ht51 dn22 ht92
source: IKN calcs, NYSE/Nasdaq/TSX data

divergence, Alamos and its Island Gold mine in the same location has been showing well, too.
The Tiny Dogs
After thirty-four weeks of 2021, the Tiny Dogs show a gain of 4.83% 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 7.67 0.125 -39.0%
Aston Bay BAY.v 0.045 163.975 7.38 0.045 0.0%
Constantine Met CEM.v 0.17 45.4 23.61 0.52 205.9%
Contact Gold C.v 0.115 240.757 16.85 0.070 -39.1%
Golden Pursuit GDP.v 0.22 40 5.00 0.13 -43.2%
Manitou Gold MTU.v 0.045 230.79 17.31 0.08 66.7%
Precipitate Gold PRG.v 0.240 106.241 11.69 0.11 -54.2%
QC Copper QCCU.v 0.315 105 17.33 0.17 -47.6%
Red Pine Expl RPX.v 0.400 95.806 42.15 0.44 10.0%
Warrior Gold WAR.v 0.090 91.818 7.35 0.08 -11.1%
Prices in CAD$, data from TSXV basket avg 4.83%
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.
The basket is doing its job well and giving a reasonable snapshot of the action at the lowest-
cap end of the mining scene, as for the third
week running the average stayed where it was.
20% Tiny Dogs, 2021 weekly tracker
The tiny 0.21% improvement on the week came
16%
from five winners (ANTL.v, MTU.v, PRG.v,
12%
QCCU.v, RPX.v) and two others remaining
8%
unchanged (BAY.v, WAR.v), with three losers
4%
(CEM.v, C.v, GDP.v) providing headwind. The
0%
biggest winners were Antler (ANTL.v up 31.6%)
-4%
and Precipitate Gold (PRG.v up 22.2%), the
-8%
biggest loser Golden Pursuit (GDP.v down
-12%
16.7%).
We follow this indicator group of tinycaps is to
keep a finger on the sub-sector’s pulse, the way
these stocks have held the line during August is certainly positive as long as the move we saw
last week has legs. Notes on just one Basket company today, wilfully ignoring ANTL and its
largely technical rebound of 31.6% to stay on the more interesting PRG:
Precipitate Gold (PRG.v): We featured PRG in some detail last weekend in the “A corporate
pivot trade” note in ‘Market Watching’, so it’s only right to follow its progress here for at least
the next month. The stock certainly rebounded well once buyers finally reappeared on Friday,
this 10-day chart now taking in the period where PRG announced its proposed shift in focus to
18
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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 ht81 ht52 ts1gua ht8 ht51 dn22 ht92
source: IKN calcs, TSX data

its newly acquired project in newly hot
Newfoundland. That’s “Motherlode” and PRG duly
announced the closure of its acquisition on
Thursday morning (4). Notwithstanding the
occasional lumpy trades as seen above, volume
remains thin for a company with this many shares
out. We repeat, this exploreco moving into
Newfoundland is the right mix for a classic promo
play, run largely by geologists who are as seasoned
in the way of Canadian capital markets as they are
their academic subject.
NB: Please be clear that The Tiny Dogs is NOT a list of recommended tinycap stocks. It is a list of companies with
market caps of under $20m offering a reasonable representation of the wider tinycaps market. It is possible that in the
future I may buy shares in one or several of these stocks, but at the moment both my opinion and my wallet are strictly
neutral.
Regional politics
Argentina begins to roll out its mining strategy
On Wednesday August 25th the Zoom language was Spanish, thanks to the conference put on
by Argentina and the Argentine/British Chamber of Commerce. Led by Mining Secretary Alberto
Hensel and the relevant Ambassadors the “Argentina: Land of opportunities for mining. Golf,
silver and copper” conference was for mining executives and designed to showcase the country.
It also made a show of lithium as well as the metals mentioned in the headline (5). The show
had two main parts, first showcasing the potential of Argentina’s geology, then outlining what
the Alberto Fernández government is doing to do to promote the industry and as for that
government-level assistance, Mining Secretary Hensel talked of three main support lines:
 The newly named “PEDMA” plan, an acronym derived from the Spanish for “Strategic
Plan for the Development of Argentine Mining”. We have outlined this in previous
editions.
 Tax breaks for capital investment in mining, including tax credits on capex and the
decree in April which exonerates large exporters (U$100m capex and above) from
export taxes on goods
 Ongoing government/industry workshops and meeting schedules.
As for the presentation itself, I took a few screenshots of the metal-dedicate pages so you can
see which projects have the attention of Argentina’s government. Here’s the dedicated page on
copper, which presents macro information on the metal in the country and at the bottom, lists
the eight projects the government is most interested in developing:
19

There we see Taca Taca (FM.to), Pachon (GLEN.L) and Josemaria (FIL.v), but also Altar
(ALDE.v) and even McEwen Mining’s (MUX) Los Azules. San Jorge there, too (scrape the
barrel). FI’ve cut down the screenshots for the similar pages for gold, silver and lithium to the
central portions, though each had the same type of page:
 Lithium (left) lists a whole bunch of properties
 Gold (right) is a little thinner on the ground, with the new producing Lindero on the list
and much resting on Barrick’s troubled Lama project
 Silver (centre) includes Navidad (PAAS) at the top of the list and Mining Secretary
Hensel had plenty to say about that project, promising his audience of mining
executives and industry people that the national government would “work with Chubut
to achieve the Zonification” of the province, the law change that would allow the
$1.2Bn capex Navidad to happen.
As well as politicos and diplomats, also on the call and doing his own shift of the marketing
work for Argentina was Adam Lundin, the Lundin family member assigned to develop its
Argentina projects including, of course, Josemaria. However, notably absent from the
conference was any serious talk of the opposition to mining in the country, Navidad is of course
the prime example of how a province can stop national aspirations. Overall, the show was a
good one and Argentina under Hensel is about to embark on a marketing push to make its
mining sector more attractive, and with “real tax breaks” now listed among the potential
benefits the world of mining sits up and pays attention. It was a marketing roadshow and not a
deep debate, however, the potential pitfalls of moving to the Basket Case Country have been
documented at long length on these pages.
The bottom line: Argentina is making the right noises and doing the right things in its initiative
to attract more mining investment to the country. There will be the hard sell projects (e.g.
Navidad) next to the ones easier to sell (e.g. Josemaria) at this stage, but we should also
remember that your province of choice is equally as important. Chubut may be tough, but
Santa Cruzm Jujuy, San Juan etc are welcoming to the sector.
What happened in Peru
The slow-motion car crash continues and, last week, even managed to take a alternative route
to its eventual moment of impact. As noted on the blog Friday the latest surprise was a big
one, as Guido Bellido and his cabinet of ministers managed to get ratification from Congress on
by a majority of 70 to 53. How it happened is important, as are the likely near and medium-
term effects.
First, while not directly mining related, a little background on the Congress ratification process
is needed because it all revolved around the contents of the speech made by PCM Bellido. He
spoke for nearly three hours and was then followed by his ministers, who each talked on their
20

specialist subject, but more important than what they said was what they didn’t say. The much-
vaunted Constitutional Reform, promoted by Castillo during his Presidential campaign, was not
even mentioned once. There were other notable absences as well, such as the 180° U-turn on a
specific Peruvian political subject concerning the licencing and supervision of private universities
and centres of secondary and tertiary level education. With no mention of previously vaunted
reforms, the Bellido speech played straight into the hands of the APP party and its leader, Cesar
Acuña, who became the multi-millionaire he is today via…his chain of private universities. There
were other examples of glaring omissions in the Bellido speech, such as no talk of sexual
equality, discrimination against minority groups, or the plans for a controversial “Ministry of
Science and Technology” (which doesn’t sound very radical to an outsider but is a swamp of
Peru political intrigue, so we’re not going there in a mining newsletter). Bellido’s speech and
position was a pale comparison to the rhetoric of campaign, it was obviously designed to get
enough dissenters onside by appealing to “special interests” and avoiding anything the leats
controversial.
It worked too, something we all realized would happen around midday Friday when the right
wing Cesar Acuña announced his party bloc would vote to ratify the Castillo cabinet. Long stor,
short, at some point last week peace broke out and in return for allowing his businesses to
return unfettered, Caesar Acuña handed power to the hard Left wing Vladimir Cerrón.
What now happens in Peru depends on your timescale: as seen below in ‘Market Watching’,
Peru exposed issues recovered last week and the Sol regained some 4c as well. Most expect the
Sol to appreciate further against the USD in the week to come, but I am not so sure. Near-term
we may have a little calm, but nothing has been settled and the bad blood merely booted to
further in the future. As for further out, the real issues begin now: The ratification of this
cabinet means its ministers are now free to staff their ministries as they see fit; that means the
entry of left wing party members into positions of bureaucratic power at both national and
provincial level, it’s when the bad things begin to happen.
Market Watching
Tracking the Buy Peru call
We’re keeping an eye on the progress (or lack) of the house call to buy Peru on the outcome of
the Presidential election. To date the call has been wrong, but we did get some rebound last
week as Peru responded to world events and
macro impulses like most others (it’s a
commodity-centric stock market, after all), with
Buenaventura (BVN) getting a particularly good
kick after meeting with the new (and now
confirmed) Minister of Mining Ivan Merino. That
became official good news from state news
agency Agencia Andina (6), much emphasis on
the agreements in principle that the new San
Gabriel gold mine in Moquegua complies with the
new “Social Profitability” demanded by the
government. The presser stated that BVN called
the meeting, that may be a little politics but what
it does show is that big mining business has
already found ways to get heads-up agreements from this new Left wing government. This is
the same BVN that paid its back taxes of S/2.134Bn (U$550m) at the start of the month  (7),
unlikely to be a coincidence.
Beaver Creek up in September (plus a word on Aurcana (AUN.v))
Part of the mining industry’s cycle this time of year is also conference season, with September
seeing the always-popular Denver Gold Show and the Beaver Creek Precious Metals Summit,
21

both are centres of interest and the latter particularly on-point for the junior mining world.
Beaver Creek this year runs from September 8th to 11th and is of the hybrid variety,
attendees either in-person (at the bar) or online
(with good coffee) and your author has online
meetings and presentation slots set up with
interesting companies.
Your author has several one-on-one meetings set up
and most are with covered stocks, but there are a
few stories that intrigue a little further with one of
them Aurcana (AUN.v). RThis company has swung
and missed twice at running a profitable silver mine
but is back again, this time via a carefully structured
financial deal around the Ouray silver mine in
Colorado USA, which AUN is looking to bring back to
full production. In this case my one-on-one has already pre-specified that we talk about the
financial structure of the company and how CEO Drover plans to get enough cash flow through
its financials in order to raise the share price (and the deeper the better), so even while you get
this heads-up today on a potentially interesting junior (and a silver name to boot!), it’s still at a
preliminary investigative phase and some ways from any new purchase or reco. This two year
price chart has little to read into it since AUN was rebooted, and with 278.2m shares out and
this weekend’s C$0.76 share price, AUN needs to justify a CAD$211m market cap.
Finally and returning to the main topic, please note the Beaver Creek 2021 page where there’s
(8) a link for Qualified Investors to apply for a passes (presumably free, as mine was). With this
year’s event virtual, that’s an opportunity for many readers of these words and that’s excellent
news for all: You don’t have to rely on my reporting of Beaver Creek in a couple of editions’
time to get the most out of the show .
Fiore Gold (F.v) 2021 calendar Q2 financials
A previously-followed and traded company on these pages, Fiore Gold (F.v) filed its third
quarter 2021 financials Thursday post-close, a
F.v: Gold production and sales, per quarter
set of figures good enough to make the blog
on Friday (9) with suitably bullish words. The
blog post got three charts and a paragraph of
script, here today it’s still kept brief (we don’t
own and I’m not a buyer yet), but still there
are ten or eleven charts with words wrapped
around them so let’s see what Fiore has to
offer.
Production and sales
We begin at the obvious start point,
production coming in at an acceptable
11,751oz Au and sales just ten ounces lower
(above right). With an average realized price of
U$1,815/oz for the gold, our revs calc closely
matches reality (right)
That shows here in the main operations overview
chart and top line revenues of U$21.308m, costs of
just over U$14m and a mine op income of
U$7.202m (below):
22
95701 73701 58611 40511
2829 9009 0578 3909
58021 62021 29721 16721 23421 55421
4029 0129
51901 48801 15711 14711
14000
12000
10000
8000
6000
4000
2000
0
91_ram 91_nuj 91_pes 91_ced 02_ram 02_nuj 02_pes 02_ced 12_ram 12_nuj
Oz Au
source: company filings
30 F.v: Calculated vs Reported revenues, per qtr
(calc revs = sales + realized prices )
25
20
15
10
5
0
91_ram 91_nuj 91_pes 91_ced 02_ram 02_nuj 02_pes 02_ced 12_ram 12_nuj
$m
Au rev calc
total actual revs
source: company filings

F.v: Operations overview
23
0.41
3.01
7.3
2.51 1.21
1.3
6.21
4.01
2.2
1.31
7.01
4.2
0.91
7.31
3.5
0.22
7.31
3.8
9.32
0.31
9.01
2.71
9.9
3.7
3.91
2.21
1.7
3.12
1.41
2.7
30
25
20
15
10
5
0
91_ram 91_nuj 91-pes 91-ced 02_ram 02_nuj 02_pes 02_ced 12_ram 12_nuj
$m
revenues
total cost of sales
Income from mine ops
source: F filings, IKN ests
This costs breakdown chart shows the main inflation in production costs and indeed, in the
granular MDA data we note on-site inflation (e.g. salaries, supplies) is pushing the cost creep.
F.v: Costs breakdown
16
14
12
10
8
6
4
2
0
71_nuj 71_pes 71_ced 81_ram 81_nuj 81_pes 81_ced 91_ram 91_nuj 91-pes 91-ced 02_ram 02_nuj 02_pes 02_ced 12_ram 12_nuj
$m
deplet/amort
royalties
prod. costs
source: company filings
Other data from F.v indicate this cost surge isn’t a flash in the pan (pardoning the pun). We
have previously tracked the inventory carry cost of F.v ounces (below) and they moved to
U$1,102/oz in 2q21. As this is a leading indicator for production cash costs (see mid and late
2019 for more), there’s every reason to expect costs to stay at U$14m and above per quarter
going forward.
F.v: Inventory carry cost
677 577 218 148 528 518 298 889
6601 5401
499 929 739 339
2301 2011
1200
1100
1000
900
800
700
600
500 400
300
200
100
0
71_pes 71_ced 81_ram 81_nuj 81_pes 81_ced 91_ram 91_nuj 91_pes 91_ced 02_ram 02_nuj 02_pes 02_ced 12_ram 12_nuj
$/oz
source: company filings
We also note in passing that heap leach inventory ounces seem to have peaked at the start of
2021. We’d like to see that number move up or at least remain steady, the jury is out:
F.v: Heap leach inventory ounces
1176
53311 22621 34721 44451 15881 63481 21661 49681
28432 01642 56952 06372 28803 17892 83682
35000
30000
25000
20000 15000
10000
5000
0
71_pes 71_ced 81_ram 81_nuj 81_pes 81_ced 91_ram 91_nuj 91_pes 91_ced 02_ram 02_nuj 02_pes 02_ced 12_ram 12_nuj
$m
source: company filngs

Summing up Fiore Gold’s second 2021 calendar quarter (and third of its own calendar year),
production was in-line and costs were predictably up and the company neither disappointed nor
wowed the market. However I think F.v is better than the modest reaction we saw last week
because the company is building well for the longer-term.
F.v: Assets Breakdown per qtr
100
90
80
70
60
50 40
30
20
10
0
For that we need to consider the balance sheet and a couple of the charts I used on the blog
last week, because they are the most important. We’ve seen Wesdome (WDO.to) do it and now
Argonaut Gold (AR.to) looks set on the same route, here Fiore is also using the business plan of
cahs flow funding organic development and expansion. In F’s case they are investing in their
next mine(s) as they am toward the long-term goal of being a 150k/annum gold producer but
it’s the way it happens that’s most likeable:
Mine asset value improves as F.v invests in its
properties, over U$6.5m added to fixed asset value
already this year. Working cap and treasury remain
strong, once again the “do a Wesdome” plan where
only excess cash is used on a quarterly basis.
This has caused the BV/share to rise to just under
CAD$0.90, when in its previous development and
early production stages that was kept down at 50c.
Without making a fuss or proclaiming to the
market, F.v is going about adding real asset value
to its company. The share price you see is no
longer dependent on the impressive early quarter
cash flows we saw from F.v in 2019 and 2020,
these days it has the asset backbone to match.
The bottom line is to weigh the obvious input of
higher operating costs against the longer-term Fiore
Gold strategy: Costs are going to stay high, around
24
71_pes 71_ced 81_ram 81_nuj 81_pes 81_ced 91_ram 91_nuj 91-pes 91-ced 02_ram 02_nuj 02_pes 02_ced 12_ram 12_nuj
$m
F.v: Liabilities Breakdown per qtr
cash inventories 22
other current fixed 20
18
16
14
12 10
8
6
4
2
0
source: company filings, IKN ests
71_pes 71_ced 81_ram 81_nuj 81_pes 81_ced 91_ram 91_nuj 91-pes 91-ced 02_ram 02_nuj 02_pes 02_ced 12_ram 12_nuj
source: company filings/IKN ests
srallod
fo
snoillim
LT liabilities
current liabilities
50 F.v: Working Capital per qtr
45
40
35
30
25 20 15
10
5
0
71_pes 71_ced 81_ram 81_nuj 81_pes 81_ced 91_ram 91_nuj 91-pes 91-ced 02_ram 02_nuj 02_pes 02_ced 12_ram 12_nuj
source company filings
srallod
fo snoillim
F.v: Treasury position
1.51
8.6 7.5 2.7 2.6 4.6 3.8 7.9 3.7 5.6 1.9
3.71 2.32 2.91 5.71 5.81
24
22
20
18
16
14
12 10 8
6 4
2
0
71_pes 71_ced 81_ram 81_nuj 81_pes 81_ced 91_ram 91_nuj 91-pes 91-ced 02_ram 02_nuj 02_pes 02_ced 12_ram 12_nuj
$m
source: F filings
F.v: CAD$ book value per share
1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
71_pes 71_ced 81_ram 81_nuj 81_pes 81_ced 91_ram 91_nuj 91-pes 91-ced 02_ram 02_nuj 02_pes 02_ced 12_ram 12_nuj
source: company filings, IKN calcs
erahs/$DAC

the U$14m to U$15m per qtr range, but as long as production stays above 11,000 oz per
quarter (it should return soon to 12k/qtr, in fact) this company is guaranteed to reap the cash
flow it wants to develop its Gold Rock project. The F.v share price is fully justified by its Pan
operations, with the valuation this weekend at a modest 7X earnings, which makes Gold Rock
and any other project it decides to acquire and develop the catalysts to price growth. I’m not a
buyer of Fiore Gold yet because it’s less likely to get momentum through this current corporate
building stage. That, along with the perception of higher costs, is likely to keep a lid on price
improvement for the time being. However this is another obvious longer-term winner, with a
CEO going about his job the right way from all angles. Do not be surprised if this desk buys
back Fiore Gold (F.v) at some point in late 2021 or 2022.
Harte Gold (HRT.to): An eye on the side bet
A brief update note on this near-term “side bet” that won’t make the main Stocks to Follow list:
Last weekend we noted HRT trading in a tight range on low volume, that continued last week.
The trade bets are largely placed, we now await the news of any deal and the people
concerned have the month of September to deliver something. That or another waiver and
delay, of course.
Minera IRL (MIRL.cse): Concerned Shareholders (2)
Following on from last weeks notes, plus updates on the blog. Today’s isn’t going to be a long
and carefully written treatise or Call-To-Arms, instead we offer notes on developments and
suggestions on how to move forward:
 My MIRL meeting last Monday was a complete disappointment. Their representative
limited the discourse to little more than the verbal equivalent of the sodt-soap answers
and corporate statements that completely ignore any question asked. Both during and
after my meeting the company went out of its way to avoid avoidance answering
questions with any sort of meaningful direct answer. As for our request for a “good will
gesture” and action instead of words, the reply from MIRL has been a roaring silence
and all three of the newly installed executives continue to work at the company.
 Minera IRL management has now become actively obstructive to shareholders, large
and small, refusing to answer mails, phone calls and even when doing so, giving non-
answers to any direct question. Their strategy is clearly to ignore and obfuscate,
perhaps they think that if they ignore us we’ll go away .
 This is far form the truth. As per this weekend, the roster of names on my Concerned
Shareholder list is over 60, with around 30m shares committed to voting out CEO
Benavides and his team. This is enough to present a proxy slate at the next AGM, or
raise an SGM if preferred.
 However and after making preliminary inquiries, I now believe that our best course of
action is to use the scheduled AGM as the means to vote out the current management
25

and board. An SGM, as well as expensive, would need a two thirds majority on the vote
in order to pass a resolution to kick out the current people. As the AGM this would be
down to 50%+1 vote and we should be able to file a proxy slate of “RECEIVER ONLY”
at the same time and our strategy to take MIRL into voluntary bankruptcy, thereby
avoiding the vacuum in directorate power that Benavides would look to fill immediately.
 Last week, I had a face-to-face meeting with a Peruvian Financial Professional, who as
well as being a trusted voice also has the ear of many others in his sector. His was a
sobering view of MIRL under Diego Benavides. In Lima nobody will touch a company
run by him due to his “anticuchos”, a slang local term for misdeeds past or present that
make you radioactive for future business deals. It’s also understood among the Lima
brokerages that any NDA or confidentiality agreement held by MIRL with third parties
has long-since lapsed: there are no active negotiations on financing for Ollachea, no
matter what other image the company might want to paint.
On due consideration, there are two people inside the MIRL structure that need to know what
may be about to happen, as they may decide to help the cause. One is CFO Carlos Ruiz de
Castilla, the other is director Michael Iannacone. For the CFO contact details, we make use of
the company monthly report to CSE:
The phone numbers will take you to the mina desk at IRL, from where you’re likely to get lost.
However, the mail address must be active as the receptive address for CSE filings. As a group,
Concerned Shareholder should contact Carlos Ruiz de Castilla to explain his position of potential
jeopardy. CFO Carlos Ruiz de Castilla, may not know the trouble he is in: An unassuming
accountant well past retirement age, he’s been happy to earn U$15k to 20k per month in Peru
and hasn’t had to do much work for the money, either. The set-up when a boss doesn’t want
questions asked, I do not know whether he’s been a willing part of any corruption inside Kuri
Kullu, as presumably he only see the books of the Ltd company, but in the event of a change of
control, the dismissal with cause of CEO Benavides and the subsequent investigation we will
need to find out what’s been going on at Kuri Kullu, Carlos Ruiz de Castilla may find himself in a
lot of hot water.
The other person inside the MIRL structure with a lot to lose is Micahel Iannacone. This is a
person with a job to lose (10), as CFO of Adventus Realty in Canada. Here’s a segment of his
biog:
Chief Financial Officer
Mr. Iannacone joined Adventus as the Chief Financial Officer, in March 2013; he is responsible for
financial reporting and administrative functions. Mr. Iannacone has been a consultant providing
financial advisory services to a number of companies in the industrial and resource sectors. Mr.
Iannacone has been a CFO or finance director for various companies listed on the Toronto Stock
Exchange, TSX Venture Exchange and AIM-London Stock Exchange.
In addition, Mr. Iannacone is currently a director of the largest marine bunkering company in the
Vancouver Harbour. Mr. Iannacone, has been an instructor and lecturer for accounting courses
with the BC Institute of Technology and with the Institute of Chartered Accountants of British
Columbia.
Mr. Iannacone qualified as a Chartered Accountant in 1980 while working with Coopers &
Lybrand (a predecessor firm to PwC).
His experience with public companies as a CFO plays an integral role in the operations of
Adventus.
Mr. Iannacone serves as the Chief Financial Officer of both the Manager and the trustee of the
26

Trust.
The biog above notes how Iannacone is connected to several boards of IAM and TSX/V
companies as well as to his main duties as CFO of Adventus. That would suggest he has been
‘phoning it in’, one of those always handy Directors For Hire the corporate world can always
provide. However, in his case he may well have been signing documents that could land him in
a lot of hot water, particularly if he decides not to cooperate with Concerned Shareholders in
the run-up to the AGM. Iannacone can be reached via his IRL mail address, but as there’s now
there’s now significant doubt he’ll read and reply via that medium, his personal mail address will
be more useful: michael_iannacone@telus.net
Regarding the plan of action, the advice I got from a couple of Peruvians who know a little
about the case confirmed that the easiest course of action is to use the Canadian public listed
company. That’s the simple part, but I’ve also been told the idea to go into voluntary
bankruptcy is “novel” and “might work”, the nice way of saying “find another way”. Therefore
I’m throwing this subject out to the audience: The best way forward is a proxy slate at the
AGM, but our case weakens without a meaningful alternative. Mine is “liquidate MIRL and
distribute the cash” and is good in theory, but if you have a better idea I (we) want to hear
about it.
As for the CS group, I will collate all the mail addresses and on Tuesday (busy on other matters
tomorrow) send out a mail to all participants to date. I would also suggest we set up a
dedicated chatnroom of some type (and again, open to suggestions). Today is end August and
MIRL is scheduled to file its AGM materials in October. This allows September to organize the
CS group and make any final choices on the method to remove CEO Diego Benavides from the
company, along with his freeloading pals.
Finally, this one needs saying clearly: I’ve opened up a can of worms and will at some point
need a little help from at east one person, probably somebody up in Canada and hopefully a
willing member of the Concerned Shareholder group, in order to put any plan into action. For
example, at some point the CS group will need a Canadian legal firm or lawyer to file the AGM
slate and there would probably be enough work to hire a firm on a percentage win fee (again,
suggestions welcome) However, it is clear to this desk that despite the litany of poor
managerial decisions and likelihood CEO Benavides has been milking the company for the
benefit of his friends and family, we should focus on the “open and shut case” that his own
greed and over-reach has afforded us. By hiring unqualified and inexperienced personal friends
for high-level executive positions, CEO Benavides has made clear ethical and rules violations. As
these are now being abetted by the board of directors they are enough to seek and win their
removal.
Conclusion
IKN640 is done, we end with bullet points:
 The way forward with Minera IRL is the simplest of all; vote them out at the AGM.
However, an organized team and a proxy slate will allow us to move on the real
objective more quickly, namely getting our money out of the company. Left to its own
devices, the woeful MIRL management will crush its equity to zero.
 Orezone (ORE.v) is now too cheap compared to what it will own this time next year.
Nobody in their right mind will sell a U$700m project for U$400m, but that’s what the
market seems to think will happen at ORE.
 I have held
I thank you in advance for any feedback. Our Top Pick stocks are Minera Alamos (MAI.v) and
27

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.cnbc.com/2021/08/27/gold-markets-jackson-hole-federal-reserve-tapering-afghanistan.html
(2) https://www.calculatedriskblog.com/2021/08/schedule-for-week-of-august-29-2021.html
(3) https://www.orezone.com/en/news/press-releases/orezone-intersects-32-m-of-3.87-g-t-gold-including-6-m-of-14.40-
g-t-and-identifies-near-surface-high-grade-gold-mineralization/
(4) https://www.precipitategold.com/news/2021/precipitate-closes-agreements-to-secures-rights-to-acquire-motherlode-
gold-project-in-newfoundland-canada-with-tsx-venture-approval
(5) https://www.youtube.com/watch?v=G81GzgemoZM
(6) https://andina.pe/agencia/noticia-minem-fortalece-coordinacion-compania-minas-buenaventura-859040.aspx
(7) https://andina.pe/agencia/noticia-sunat-compania-minera-buenaventura-paga-deuda-s-2134-millones-856439.aspx
(8) https://www.precioussummit.com/event/2021-precious-metals-summit-beaver-creek/
(9) https://iknnews.com/the-big-question-about-fiore-gold-f-v/
(10) https://www.adventusrealty.com/profile/senior-management
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
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Stocks To Follow Closed Positions 2019
Closed in 2019 closed close price
Atico Mining ATY.v jan'19 C$0.55 24-Jul-16 C$0.32 41.8% patience ran out, made room
Candente Copper DNT.to jan'19 C$0.075 3-Ago-18 C$0.05 -33.3% tiny trade, made room for new
B2Gold BTO.to feb'19 C$2.11 12-Set-14 C$4.05 91.9% Took 1/2 profits, reduce size
Western Copper WRN.to mar'19 C$0.80 20-Ene-19 C$0.81 1.3% Spec trade that didn't work
B2Gold BTO.to mar'19 C$2.11 12-Set-14 C$4.15 96.7% Took rest of profit.
GT Gold GTT.v mar'19 C$1.17 10-Oct-18 C$0.90 -23.1% Took loss. Story changed
NovaGold NG apr'19 U$3.84 13-Ene-19 U$4.15 -8.1% Short that didn't work, sm loss
Zinc One Z.v jun'19 C$0.47 14-Set-17 C$0.025 -94.7% clearing out dead trade
Amarillo Gold AGC.v jun'19 C$0.24 22-Ago-18 C$0.20 -16.7% clearing out dead trade
New Gold NGD aug'19 U$1.44 31-Jul-19 U$1.23 14.6% ST short win thru Q2 earnings
IMPACT Silver IPT.v aug'19 C$0.39 21-Jul-19 C$0.46 18.0% took a quick profit
Fiore Gold F.v aug'19 C$0.34 26-May-19 C$0.56 64.7% Took profit, 2q19 avg
Chakana Copper PERU.v oct'19 C$0.84 22-Mar-18 C$0.16 -81.0% Exploreco trade fail. Want space
Wesdome Gold WDO.to oct'19 C$2.37 14-Oct-17 C$7.57 219.4% Sold half, profit taking
Superior Gold SGI.v oct'19 C$1.46 8-Abr-18 C$0.47 -67.8% Failed sm spec on Au. Moved on
Amerigo Res ARG.to nov'19 C$0.91 23-Set-18 C$0.50 -45.1% worst trade of year, hefty loss
Guyana Goldfields GUY.to dec'19 C$0.94 14-Abr-19 C$0.56 -40.4% taking the loss, financials weak
Tethyan Res TETH.v dec'19 C$0.30 8-Set-19 C$0.16 -46.7% tiny trade, word of probs in co
Stocks To Follow Closed Positions 2018
Closed in 2018 closed close price
Amarillo Gold AGC.v jan'18 C$0.38 24-Mar-17 C$0.31 -18.4% Cut away losing trade
Riverside Res RRI.v jan'18 C$0.39 27-Jun-16 C$0.31 -20.5% Cut away losing trade
Eros Res ERC.v jan'18 C$0.175 1-Mar-17 C$0.16 -8.6% CEO sudden exit, not good
Excellon Res EXN.to jan'18 C$1.54 9-Oct-16 C$1.66 7.8% 4q17 poor, one too many bad qtrs
Wesdome Gold WDO.to jan'18 C$1.68 15-Dec-17 C$2.06 22.6% Near-term trade block, took profit
Sabina G&S SBB.to apr'18 C$2.06 17-Dec-17 C$1.77 -14.1% Near-term trade, bad timing, small
B2Gold BTO.to May'18 C$2.11 12-Sep-14 C$3.67 73.9% sold 25% to reduce exposure
Lara Expl. LRA.v May'18 C$0.65 11-Feb-18 C$0.58 -13.8% Spec on Brazil didn't work
Solitario XPL June'18 U$0.72 19-Mar-17 U$0.41 -43.1% Failed trade, may return in 4q18
SolGold plc SOLG.to July'18 C$0.475 19-Nov-17 C$0.415 -12.6% cut, trade didn't perform
Pan American PAAS July'18 U$17.90 1-Jun-18 U$16.30 8.9% modest win on short position
NGEx Res NGQ.to Sep'18 C$1.01 22-Oct-17 C$1.00 -1.0% Closed to reduce Argentina exp
Sandstorm Gold SAND Oct'18 U$3.73 17-Apr-16 U$4.13 10.7% partial sale to raise cash for GTT
Aldebaran Res ALDE.v Nov'18 n/a n/a n/a n/a liquidate spin out of REG
Stocks To Follow Closed Positions 2017
Closed in 2017 closed close price
Continental Gold CNL.to Jan'17 C$2.68 22-May-16 C$4.17 55.6% trade closed, profit taken
Focus Ventures FCV.v Jan'17 C$0.23 1-Jul-12 C$0.05 -78.3% Give up, a disaster trade
Wesdome Gold WDO.to Feb'17 C$1.72 28-Aug-16 C$3.00 74.4% Target hit, sold, good trade
Belo Sun BSX.to Mar'17 C$0.90 30-Jan-17 C$0.90 0.0% failed near-term flip trade
Lara Expl. LRA.v Mar'17 C$1.15 8-Apr-12 C$1.05 -8.7% cut to make room for new trade
Rye Patch Gold RPM.v Apr'17 C$0.31 2-Sep-16 C$0.32 3.2% cut for doubts & new stock
Cordoba Min. CDB.v Jun'17 C$0.75 15-Sep-16 C$0.63 -16.0% closed
Constantine Metal CEM.v Aug'17 C$0.135 9-Apr-17 C$0.28 107.4% spec trade closed, good win
Red Eagle Min. R.to Sep'17 C$0.67 13-Dec-16 C$0.27 -59.7% IKN's biggest failure in years
Starcore Intl SAM.to Sep'17 C$0.61 10-Jan-15 C$0.31 -49.2% Patience ran out
B2Gold BTO.to Dec'17 C$2.11 12-Sep-14 C$3.39 60.7% sold small portion for liquidity
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Stocks To Follow Closed Positions 2016
Closed in 2016 closed close price
Phoscan Chem FOS.to jan16 C$0.28 29-mar-15 C$0.265 -5.4% Buyout trade, bot but poor deal
True Gold TGM.v jan16 C$0.18 23-ago-15 C$0.25 38.9% okay trade, sold on pol risk
McEwen Mining MUX jan16 U$1.09 25-ene-15 U$1.20 10.1% sold due to lack of value
Lake Shore Gold LSG.to feb-16 C$1.10 07-abr-15 C$1.69 53.6% bot out, sold early in process
Atacama Pacific ATM.v feb-16 C$0.19 26-abr-15 C$0.40 110.5% sold for a double on big pop
New Gold NGD feb-16 U$2.06 24-ene-16 U$2.96 43.7% closed good near-term trade
Sandspring Res SSP.v mar-16 C$0.195 18-oct-15 C$0.32 64.1% Hit tgt, took profit
Teranga Gold TGZ.to mar-16 C$0.54 15-feb-15 C$0.60 11.1% disappointing trade
B2Gold BTG mar-16 U$0.85 13-ene-16 U$1.30 52.9% Separate trade on B2, hit tgt
Dalradian Res DNA.to mar-16 C$0.67 27-oct-13 C$1.00 49.3% Hit target, sold, good win
HudBay Min. HBM may-16 U$4.10 03-abr-16 U$4.36 -6.3% Short trade, poor timing
Nevada Sunrise NEV.v may-16 C$0.185 28-feb-16 C$0.23 24.3% V. small, no big deal either way
Richmont RIC jun-16 U$7.60 01-may-16 U$9.30 22.4% near-term trade, profit taken
INV Metals INV.to jul-16 C$0.25 03-abr-16 C$0.95 280.0% Trade closed on time
HudBay Min. HBM aug16 U$4.98 09-jun-16 U$4.80 3.6% short trade covered, no big deal
Miranda Gold MAD.v oct-16 C$0.125 03-jul-16 C$0.10 -20.0% tiny spec trade, didn't work
Avino G & S ASM nov-16 U$2.00 21-oct-16 U$1.40 -30.0% Abandon trade on bad bot deal
Stocks To Follow Closed Positions 2015
Closed in 2015 closed close price
Argonaut Gold AR.to jan'15 C$1.47 14-dec-14 C$2.53 72.1% Big gain small time, profit taken
Amerigo Res ARG.to jan'15 C$0.405 20-jul-14 C$0.285 -29.6% Given up on weak Cu prices
Reservoir Min. RMC.v jan'15 C$6.05 18-jun-14 C$4.12 -31.9% sold on Cu downturn
Coro Mining COP.to jan'15 C$0.075 26-jan-14 C$0.035 -53.3% sm, sold on Cu downturn
Fortuna Silver FSM mar'15 U$4.12 10-nov-14 U$3.75 9.0% Short used as hedge
GoldQuest Min. GQC.v mar'15 C$0.26 27-oct-13 C$0.085 -67.3% given up ghost
Rio Alto Mining RIO.to apr'15 C$2.30 07-apr-11 C$3.57 55.2% Top pick, bot out, big win
Timmins Gold TGD jun'15 U$0.60 19-apr-15 U$0.62 3.3% near-term trade, out of time
First Majestic AG jul'15 U$10.51 10-aug-14 U$4.55 56.7% horrible failed trade
NovaCopper NCQ.to jul'15 C$1.05 09-apr-14 C$0.50 -52.4% no more Cu exposure, sm sell
McEwen Mining MUX aug'15 U$0.695 21-jul-15 U$0.92 32.4% Closed nearterm flip for win
Midas Gold MAX.to sep'15 C$0.39 21-sep-15 C$0.35 -10.3% Sm. trade idea that didn't work
New Gold NGD oct'15 U$2.18 23-aug-15 U$3.05 39.9% trade closed, profit taken
Legend Gold LGN.v nov'15 C$0.085 01-mar-15 C$0.035 -58.8% tiny "land grab" idea, failed
Timmins Gold TGD nov'15 U$0.245 20-sep-15 U$0.15 -38.8% small near-term loser
Please note that due to space considerations closed positions 2009 to 2014 are now
available on request, or were published in any edition to IKN553 (end 2019).
Important Disclosure
The information and opinions contained within this report reflect the personal views of the author and therefore all
material within should not be construed as accurate or reliable or be utilized as advice for investment or business
purposes. Independent due diligence and discussions with ones own investment and business advisor is strongly
recommended. Accordingly, nothing in this report should be construed as offering a guarantee of the accuracy or
completeness of the information contained herein, as an offer or solicitation with respect to the purchase or sale of any
security or as an endorsement of any product or service. All opinions and estimates included in this report are subject to
change without notice. It is prohibited to copy or redistribute this report to any type of third party without the express
permission of the author.
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