IKN #642Premium

The IKN Weekly
Week 642, September 12th 2021
Contents
This Week: Fe erratum, In Today’s Edition, A bad week for gold and others.
Fundamental Analysis: Excelsior Mining (MIN.to) changes plan.
Stocks to Follow: Wolfden (WLF.v), Amarillo (AGC.v), Cartier (ECR.v), QC Copper & Gold
(QCCU.v), Argonaut Gold (AR.to), Minera Alamos (MAI.v), Great Bear (GBR.v), Strategic Metals
(SMD.v), Copper Mountain (CMMC.to), Mene Inc (MENE.v).
Copper Basket: Overview, Copper Mountain (CMMC.to), Solaris Resources (SLS.to).
Producer Basket: Overview, An Expanded Royalty Watch.
Tiny Dogs: Overview, Constantine (CEM.v).
Regional Politics: Country risk is only part of the story, Canadian mining’s incorrect view of
Chilean political risk, (A final?) Peru politics update.
Market Watching: Four standouts from Beaver Creek (Unigold (UGD.v), Vox Royalty (VOX.v),
Fireweed Zinc (FWZ.v), Fiore Gold (F.v)), Tracking the Buy Peru call, Harte Gold (HRT.to): An
eye on the side bet, A brief return to Kingfisher METALS (KFR.v), Minera IRL (MIRL.cse):
Concerned Shareholders.
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
“
Fe erratum
Metals, Resources, Metals, Resources, Metals, throw in the occasion Ventures, add an and
Exploration Inc and quickly confuse a guy like me. Indeed, the new and interesting exploreco
featured for the first time last week on these pages is called Kingfisher Metals Corp (KFR.v) and
doesn’t have the word “Resources” in its corporate title.
PS: Getting today’s Excelsior Mining (MIN.to) note finished and sent on Monday evening also
means that I ask you to pretend today is Sunday September 12th and all the numbers you see
in the tables are up to date. Thanks in advance.
In Today’s Edition
 Own copper stocks. The metal is going higher and The Copper Basket has the inventory
data behind the move.
 This desk’s only doubt about the above statement is Excelsior Mining (MIN.to), feature
of today’s main fundamentals section. We go into its “kitchen sink” news of last week
and update our trade call on the stock. I’m nearly a seller and explain why.
 Away from Excelsior, copper stocks are now the place to be going into Q4 and Copper
Mountain (CMMC.to) stands out, not just as an investment but as a near-term trade.
Two segments on CMMC.to this weekend.
 Beaver Creek was a surprisingly good source of presentations, plenty of companies
1

offering real progress in their reports and a few new names to this desk, too. In Market
Watching, four names that stood out of the pack.
 We need to talk about Chile, you people up there are getting its politics wrong, and the
consequences it has for the mining industry really wrong. Regional Politics puts you
right, we also go with one final purely political note on Peru, as from now we’ll try to
get back to mining politics only.
A bad week for gold and others
The market took precisely one trading day to make a mockery of last week’s title, “A good week
for gold isn’t a good week for everybody”, as it dumped the metal (see GLD proxy in chart
below) and the broad markets (SPX proxy), leaving little intact aside the US Dollar (DXY proxy):
The Friday market action was particularly nasty,
with broad markets and gold dumping but, in the
same way we tried to curb enthusiasm last
weekend with gold at U$1,830/oz, this weekend we
point out there’s no reason to suppose anything
other than over-selling at the end of the week. In
IKN641 last weekend, thoughts were on how our
macro call in IKN640 was holding up well, but was
our general idea of “gold staying at $1800” at risk?
No it wasn’t, sadly it held up all too well, gold
dropped back to and then under U$1,800/oz. But
rather than featuring last week’s failed breakout,
here’s a two year chart with a few notes.
It was hardly gold’s first failure at this level, equally there’s no genius required for the house
assumption of indefinite U$1,800/oz gold. Our argument is based on common sense, as well as
the way it’s worked for six months and counting. Until it breaks, don’t fix it. As for the GLD
inventory trackers, they get an airing only to show you that nothing happened to gold.
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
5.80
5.60
2
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
GLD gold holdings, 2020 to date (metric tonnes)
1400
1350
1300
1250
1200
1150
1100
1050
1000
950
900
Source: SPDR data, IKN calcs 850
800
02/1/1 02/2/1 02/3/1 02/4/1 02/5/1 02/6/1 02/7/1 02/8/1 02/9/1 02/01/1 02/11/1 02/21/1 12/1/1 12/2/1 12/3/1 12/4/1 12/5/1 12/6/1 12/7/1 12/8/1 12/9/1
mt
source: SPDR GLD data

Wherever the sellers were, pushing gold under U$1,800/oz, they weren’t in New York. Wall St.’s
apathy toward the monetary metal suits us fine, when sentiment changes they’ll buy back at
catch-up prices.
Fundamental Analysis of Mining Stocks
Excelsior Mining (MIN.to) changes plan (in US Dollars unless stated)
Today’s main fundies section is the reason for the delay to this week’s edition. Without boring
you with details, in order to come to a solid conclusion this note needed a couple of key pieces
of information. As those wouldn’t show before Monday, I made the call not to finish everything
on Sunday evening. Now, Monday afternoon with the required information at hand, I’m writing
the intro to a necessary revisit to our troubled copper play, Excelsior Mining (MIN.to).
The quick entry to this note is via the MIN.to ten day price chart and the reaction to its news
last week (1):
The ten day chart above shows the selling that accompanied the news Wednesday morning
(EDIT: Trading Monday 13th September saw a 4c
rebound, MIN.to closing at 59c), the timing didn’t
help and there was no appetite for Min as copper
stocks rebounded, Friday. However, the longer-term
chart (right) shows that last week didn’t come as a
tremendous shock to long-term investors.
Summing up this chart-based intro, the news was a
negative but it didn’t break the stock (any further).
Final intro note, find here (2) the link to the latest
corporate presentation from MIN.to, which was
updated on September 9th and takes into
consideration its “kitchen sink” news from last
week, the delay and cost hike at Gunnison, plus the
moves to open development and modest near-term production from its other local assets.
The NR contents
Last week, MIN provided its Kitchen Sink news and laid its cards on the table. We now know
Gunnison is still delayed, needs more cash and time, but they also chose the right time to
disclose on other projects (imagine an alternative scenario, in which they go “and oh yeah
we’re going to start limited open pit mining” a few weeks down the line) and added two smaller
assets for our consideration. We’re not to going to dwell on either of the projects announced
last week, but some words are required.
JCM: The MIN plan here simple: Take the modest and readily available copper resource left
3

remaining from the previously worked JCM pit and get cash flow from it while the ISL field
ramps up. The JCM pit is part of the scenery at Gunnison and sits right next door to the
company’s SX/EW plant. For example,
here’s a photo of the mature JCM pit I
took during my site visit in March 2019,
my back was to the SX/EW plant about
100m behind me.
The pit is well worked, but it was also
easy to spot oxide mineralization even
from the distance of that photo. It didn’t
comes as much surprise to learn MIN is
looking to supplement early cash flow
from the ISL by running feed from a pit
that is 100% owned and, quite literally,
next door.
This is a logical step for a company looking to improve cash flows in the period before their
Gunnison IRL becomes profitable. The overall effect won’t be large and I’ve seen a reasonable
valuation on the new JCM paln that assigns it a NAV of U$26m. That kind of money is useful at
an early stage, but not hwy we are here.
Strong and Harris: Secondly, the new news for me (and most others) any is the PEA run on a
separate zone of the company’s large concession area, known as (Peabody Sill &) Strong and
Harris. Also located very close to the Johnson SX/EW Camp, MIN geologists have made a silver
lining from the delays at the main Gunnison project to delineate a resource that would be
amenable to open-pit mining.
That’s a larger project than JCM, with a timeline that runs over a longer period, too. Strong and
Harris will need drilling, resource development and the generation of a mining plan before any
of its rock becomes an open pit mine. It’s also very much secondary to Gunnison and nobody’s
idea of a replacement if the ISL doesn’t work, but again those numbers imply a valuable asset
and it’s not a stretch to assign a NAV of $100m to those numbers above. We’re too far from
production day one to price much of that NAV into the equity today, but even 0.2X NAV imply
8c of fair value to the sock.
The update on Gunnison: The two satellite projects will add value to MIN, but only if the
Gunnison ISL works. Up to now we know that solution flows through the in-situ rck have been
impaired by tiny gas bubble forming, “the result of the interaction of the weak acid injection
with finite amounts of secondary calcite within the permeable fracture system.” MN has been
treating the problem by flushing through the rock with plain water, which washes the secondary
calcite away and then allows the company to run its weak sulphuric acid (H2SO4) solution and
capture the copper.
In previous updates, MIN has used a chart like this one to explain when it’s been pumping
water and when the weak acid solution. This is the update, found in the latest corporate
presentation and to the right is the good news:
4

The visual backs up this claim from CEO Twyerould in last week’s NR:
“…the Company has identified a process change that has demonstrated a 1000%
improvement in flow rates in test wells. Full implementation of all changes to optimize
fluid flows will require some additional time and capital to complete”
The fresh water cycling technique has slowly improved matters. For details as per the NR,
“…acid injection flow rates on individual test wells increased from lows of around 20 gallons per
minute ("gpm") to sustainable highs around 200 gpm. Recovery flows also increased from
around 10 gpm to sustainable recovery flows around 110 gpm. Both representing an
approximate 1,000 percent increase in flow rates.” That’s suitably encouraging, as is the fact
that MIN is now moving this fresh water cycling technique to another 5-spot of site wells, in
order to repeat the process. A longer excerpt:
“Until recently, the fresh water cycling has been focused on a central 5-spot of wells.
Although not completely removed, the calcite appears to be dissolved enough for the
wells to operate and flow sufficiently and as a result fresh water cycling has been
moved to another 5-spot of wells to improve their fluid flows.
“Excelsior believes the problem to be finite because as the calcite interacts with the
acid it is dissolved and leaves the system. However, due to water conservation and
evaporation capacity, individual well flushing with fresh water is not considered the
optimal long-term solution.”
All this makes sense, as does the eventual “solution for the solution” of using raffinate instead
of water. Once the secondary finite calcite (and it’s worth reiterating those, this is not the
“gypsum death” of Gunnison confidently predicted by others; CEO Twyerould has been clear on
this point previous, we’re not seeing the ISL clogged by primary gypsum formation, instead the
problem is both residual and finite. That’s also one of the messages in last week’s NR, the MIN
is moving the 5-spot to a different well because the first one is working now.
As for cost, yes this comes with extra money and time. We won’t have an updated 43-101 on
Gunnison until the end of the year so no official figures, but MIN is the case study of a “mature
exploreco/develop and knows its asset backwards by now. Therefore, no issue about taking
these new cost inputs into consideration, a final excerpt:
The preferred path involves flushing with neutralized raffinate, which does not require
additional water or evaporation infrastructure, however does require additional solution
treatment infrastructure. The initial capital cost of this infrastructure is estimated at
around $13 million ($45m life of mine) and includes additional piping and pond
modifications.
It is estimated operating costs will also increase by approximately $0.185/lb over the
life of the mine due to the inclusion of one year of pre-production rinsing for all current
and new wells, and the cost of operating the raffinate neutralization plant.
The plan has changed, but it’s a solid plan so let’s reiterate before moving on: The new well
plan involves the “cleaning” of any new area set for extraction with the necessary calcite
removal solutions. After around a year the 5-spot well is up and operational and MIN expects it
to perform to spec, with the same Stage One target of 25m lbs Cu per annum as its target,
5

then expansion to the full project plan as per. The combination of a year of non-producing
operations, plus the time value of money of adding the non-producing year to the front end of
any well’s expected production, adds a MIN-estimated 18.5c to the cost of a pound of copper
out of Gunnison ISL.
What could possibly go wrong? Well for one thing, they’re going to need some more money to
do all this so it’s time to update our financials overview on the company and consider what
might happen.
Financials overview
We stick with our Usual Suspect charts and we focus on the balance sheet items, too, as that’s
where the main financial weakness at MIN lies. Assets look like this (below left), a big column
of fixed covering the carry on its mine assets, the smaller current assets fluctuating with time.
In other words, a typical pattern for a mining company at pre-production stage.
MIN.to: Assets
200
180
160
140
120
100
80
60
40
20
0
Liabilities (above right) look worrisome at first, but the majority of that large fixed liability
column is the required debit entry for the stream
facility held on Gunnison (by Triple Flag). As at
end 2q21 it was $105.2m of the $145.1m total
and while it will fluctuate, it’s a non-cash burden
and only comes into its own once MIN is
operating and producing copper commercially.
Overall, the liability chart looks scarier than it is
over the long-term, the main MIN money
concerns are for the next 12 months. As such,
current liabilities are more interesting and in this
chart (right) we add a couple of quarters’
forecast and also split the total further, for
obvious reasons. The blue bars show the
problem, that’s the facility MIN took out last year with natural resources financing company,
Nebari. It’s a U$15m loan paying 14.2% interest on a monthly basis, which annualizes at just
under 16% and is very good business for a company such as Nebari. However, the facility
matures in March 2022 and that’s why it’s a burden on the current liabilities. There’s no doubt
that MIN would like to refinance that loan and on quizzing CEO Twyerould on this, it’s clear that
while we can never say for 100% certain whether a deal happens, both sides are currently
happy about the situation and Nebari is certainly open to refi talks. There’s no reason to expect
Nebari to pull out at this stage and, providing mine proof-of-concept continues to deliver along
the new lines set out, it would be a surprise not to see this facility booted forward. That means
MIN would have the necessary liquidity to move forward on plans in 2022, even without any
sales of pre-commercial production copper. That’s all good.
Which brings us to the business end of the MIN financials, its treasury and working capital. With
MIN burning cash at around $4m per quarter and a cash position of U$27.87m as at end 2q21,
6
71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2
$m MIN.to: Liabilities breakdown, per qtr 160
fixed 140
other current cash 120
100
80
60
40
20
0
source: company filings
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
MIN.to: Curent liabilities breakdown, per qtr
24
22
20
18
16
14
12
10
8
6
4
2
0
71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 tse12q3 tse12q4
source: company filings
srallod
fo
snoillim
Nebari
other current liabs

Excelsior is not in any immediate financial problems:
MIN.to: Cash treasury per qtr
50
45
40
35
30
25
20
15
10
5
0
However, the size of the $15m loan sits on working capital, which will be little more than flat
come the end of the year if nothing else happens. By looking at this working cap chart, the
advantages of refinancing with Nebari become obvious; it would free up that $15m to working
capital and that would allow the company a year before it’s required to make a profit. According
to the plan both Gunnison ISL and the JCM feed will get the company there by that time.
Our final chart is shares out (right) and there’s no reason for that to change in 2021. Here’s a
more complete list of numbers:
 Shares Out: 274.523m
 Options: 17.725m
 Warrant: 36.85m
 RSUs: 1.923m
 Fully Diluted: 331.021m
In MIN’s case, market cap is the best
baseline. Of the derivatives, the only
big lump are the 33.75m warrants
outstanding from the recent financing
priced at $1.25. While it would be nice
to think they could go ITM and
become whole, at this point they’re not much of an overhang and a lesser factor in today’s
buy/hold/sell decision.
Discussion and conclusion
First let’s reiterate the previous reason to buy and hold this stock: We’ve been over the Net
Asset Values one can attribute to an Excelsior Mining (MIN.to) with a fully operational Gunnison
mine many times. These pages have always erred to the side of caution on those sky-high NAV
values, but even after building in plenty of caution in valuation the upside has always been
there. It’s obvious too, C$2.00 is an easy and reasonable staging post on the way to greater
things, once the mine is running toward its full Phase 3 design of 125m lbs/annum. Considering
MIN from an NPV angle,, the U$983m used by MIN in slide 11 of its latest presentation is for
the updated Gunnison economics and uses a flat U$3.50/lb copper. That’s too rich for me, as
while U$3.50/lb copper is a reasonable base case for 2021 and beyond, they’d need to take into
account the raffinates plant capex. All the same, you can discount the NPV by U$200m and still
arrive at a MIN worth over C$3.00 per share. It all makes this weekend’s sub-60c price look the
bargain, as long as MIN can move away from this “extended period of teething problems” (I’m
being generous) and demonstrate proof of concept. So here’s the deal with MIN:
Operationally, I’m confident CEO Twyerould has the necessary time, information to fix the
issues at Gunnison. We got the full kitchen sink from MIN last week and that in itself probably
marks a bottom, they now have a clear path forward and the mere fact its five-spot “test well”
has moved to different location means the first one is now working. Assuming success with the
7
71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 tse12q3 tse12q4
source: company filings/IKN ests
srallod
fo
snoillim
30 MIN.to: Working Capital per qtr
25
20
15
10
5
0
91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 tse12q3 tse12q4
source company filings/IKN ests
srallod
fo
snoillim
MIN.to: Shares Out
300
275
250
225
200
175
150
125
100
75
50
25
0
61q1 61q2 61q3 61q4 71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 tse12q3 tse12q4
source: company filings/IKN ests
serahs
fo
snoillim

current “test well”, we’d expect the company to expand its pre-flushing program as soon as
possible. At that point, they are finally on their way to 25m lbs/year and the share price will go
up.
Moving to its financials, I’m also confident MIN has the support of the people that matter, i.e.
the long-term shareholders Greenstone (approx 41.5%), Triple Flag (5% and stream holders)
as well as financial debt providers, Nebari. I also assume Nebari is happy to boot forward its
(very juicy 15% interest) loan at some point before the March 2022 due date and it makes for
good business all round, thoughts of any cash crunch disappear.
As an analyst, the plan works. If I were Triple Flag, Greenstone or Nebari I’d be good with the
plan as well, they see a clear path forward and assuming execution, their capital is safe. But I’m
not, instead I’m a retail shareholder making a call on a tranche of their portfolio and that brings
a different angle: Yes, I’m confident of operational success but after the delays and hiccups,
there’s no reason to be gullible and 100% confident and if I hold, MIN is going to be a latent
concern for a while to come. I’m also confident Nebari will refinance and stay as a happy
partner, but if they surprise us and back away (as they’ve recently done with Mako Mining) it
would be a large red flag on the company’s prospects. And though MIN is highly unlikely to
finance in 2021 or even the first part of 2022, even assuming that the plan goes roughly to
order (not expecting perfection) the treasury position begins to look tight before “Gunnison
Complex” (including ISL and mineral feed to the SX/EW plant) goes free cash flow positive.
There’s no way of knowing whether MIN sells more shares, or expands its debt profile or
whatever, but dilution in 2022 wouldn’t be a shock and even if Nebari is a willing partner, it will
want its tribute for being a willing lender. We’ve learned over the years that every extra
financial deal changes NAV/share, either by lowering the former or increasing the latter.
Therefore, when framed like this:
“If MIN gets Gunnison working at a test level, then gets its debt
refinanced, then we allow them an extra year, this is a winner!”
…it doesn’t sound so attractive, even before we debate on whether the company will have to
eventually raise more capital to get out of 2022. You want a year? In a bull market for copper?
I’d certainly think twice before buying into that story for the first time, and as that’s tantamount
to the classic “Hold Or Sell” question we holders must consider, it’s not a good sign.
What MIN offers in September 2021 is less attractive for the retail shareholder than the large
institutional backer. Quite right too, CEO Twyerould and his team know which side their bread
is buttered and without the big money onside, the story collapses. However, I’m not compelled
to take the same deal as those instos and neither would my exit or entry cause company-
shaking ripples. Triple Flag is not in the same position and neither is Nebari, but I small retail
grunt have the option of stepping back and then, if so desired, buying back into the obvious
value MIN would offer in 2022, if and when it gets operations on track and proves to the world
its ISL works.
ISL copper recovery certainly is not high-grade underground gold, but in some ways this
situation now reminds me of Pretium Resources (PVG) and how its story morphed and changed
during its financing and ramping period. Back in the day, the Valley of the Kings deposit raised
debt and cash on the back of a project resource and mine plan, one that has morphed through
extra capex and timeline to become a mine running higher tonnage at roughly half the grade of
the original plan. MIN.to at Gunnison doesn’t have grade problems, it doesn’t have to change
its plan and, as long as Nebari stay onside (and there’s no reason why they shouldn’t) will have
the cash to prove its concept in 2021 and 2022. But MIN resembles PVG in the way the story is
morphing and changing in front of us, the adjusted economics not quite as sparkling but still
more than enough to justify investment. A final improvement to expect from MIN.to going
forward is better market visibility, we IR presence and NRs out of the company. During our
recent call, CEO Twyerould was the first to admit that communication had been lacking and to
that end, the company is bringing on a third party IR group to do the work. Now its “kitchen
8

sink” NR is out the way and MIN has its 5-spot testing on a new zone at Gunnison, we should
expect more frequent updates on progress from the company.
Trade decision and conclusion
It’s taken until Monday afternoon to make a final call, MIN and my uncertainty is the reason
IKN642 was delayed a day. I’ve seriously debated selling, but for the time being I’m a
holder of Excelsior Mining (MIN.to). To give an idea of how close this call is, I’ve taken
into consideration the fact that MIN is about to start a marketing and investor awareness
campaign. If it weren’t for that and the potential of seeing more investor outreach, I’d probably
be a seller. There’s a difference between being a fan of Excelsior, of Gunnison and of CEO
Twyerould and getting a meaningful profit from the trade. The MIN revised plan sounds good
and despite the extended delays, it has a clear path and knows how to fix its flow rate issues.
There’s every reason to expect Nebari to refi and for insto supporters, Greenstone and Triple
Flag, to remain on-board. All that is good and for instos and larger money, the pathway is
wholly positive. However, retail me risks holding a dead money position in a copper bull market,
therefore the logical alternative would be to sell
MIN.to, observe from the sidelines (while
putting the cash to use elsewhere) and
returning to benefit from the most dynamic part
of the unfolding success story, later.
I’m going to give MIN a few weeks to see if its
price responds to a willing market. At that
point, and before Canadian tax loss selling
season gets going in earnest, I’ll make another
proactive hold/sell decision. Until then I’m
holding, but the jury is out.
Stocks to Follow
When GLD drops 2.27%, GDX by 5.35% and GDXJ by 6.98% in a week, it’s never going to be a
great opening paragraph to the Stocks to Follow section and we took several larger price hits
here and there, but it wasn’t all bad either so let’s put our best foot forward. Of the 14 stocks
left open this weekend, five were week-over-week winners (CMMC.to, SMD.v, QCCU.v, GBR.v,
MIRL.cse) and that’s not bad, particularly the strong move in QC Copper & Gold (QCCU.v up
11.4%) on real news.
However, there’s no hiding a negative week and nine losers (MAI.v, RIO.v, AR.to, TMQ, MIN.to,
ALDE.v, RYR.v, AUL.v, MENE.v) include both top picks, as well as a big drop in Argonaut and I’d
just added there (grrr). The biggest losers include Aldebaran (ALDE.v down 13.9%), Excelsior
Mining (MIN.to down 10.1%) and Top Pick Rio2 Ltd (RIO.v down 10.1%), as well as the 8.8%
lost in the aforementioned Argonaut Gold (grrr).
With last week’s closing of three stocks (WLF, ECR, AGC), all losers, we are down to 14 open
positions. That’s one under our self-imposed limit and about time, too. Five open stocks are in
the green, nine are in the red and that balance will move to our favour quickly as long as
copper continues to rally.
9

company Ticker this week Avg Price Reco date Current PPS Gain/Loss% Notes
TOP PICKS
Minera Alamos MAI.v STR BUY C$0.21 13-Oct-19 C$0.60 185.7% $1.14 tgt Aug'20, #1 idea
Rio2 Ltd. RIO.v STR BUY C$0.83 22-Apr-18 C$0.62 -25.3% $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$3.29 -6.3% reaffirmed buy on strong Q2
Argonaut Gold AR.to STR BUY C$2.95 25-Jun-21 C$3.00 1.7% All right signs, added more
Trilogy Metals TMQ BUY U$1.84 15-Sep-19 U$1.99 8.2% Cu for 2021, going well
Strategic Metals SMD.v hold C$0.42 31-Jan-21 C$0.32 -23.8% Canadian land bet/Value trap?
Excelsior Mining MIN.to hold C$0.93 10-Mar-19 C$0.55 -40.9% Delayed, great value if it works
Aldebaran Res. ALDE.v BUY C$0.68 16-May-21 C$0.62 -8.8% Bet on big copper, pol risk ok
QC Copper &Gold QCCU.v BUY C$0.205 25-Apr-21 C$0.195 -4.9% Cu Jr, fast-tracking resource
Royal Road Min. RYR.v BUY C$0.155 17-Mar-19 C$0.285 83.9% Model paying off in Nica
Great Bear Res GBR.v BUY C$15.83 26-Aug-20 C$14.18 -10.7% Binary M&A trade, wait for print
Aurelius Min. AUL.v hold/sell? C$0.75 28-Jun-20 C$0.335 -55.3% has until its 43-101 to improve
Minera IRL MIRL.cse hold C$0.195 22-Jul-12 C$0.09 -53.8% CEO change will move stock
Long-term non-mining hold
Mene Inc. MENE.v LT Hold C$0.68 6-Dec-20 C$0.80 17.6% 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
Wolfden Res. WLF.v sep'21 C$0.30 11-Apr-21 C$0.19 -36.7% Failed spec trade, cut loss
Cartier Resources ECR.v sep'21 C$0.32 21-Mar-21 C$0.24 -25.0% Failed spec trade, cut loss
Amarillo Gold AGC.v sep'21 C$0.31 30-May-21 C$0.30 -3.2% Capex story changed: Out
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:
Wolfden (WLF.v), Amarillo (AGC.v), Cartier (ECR.v): Positions closed. For what it’s
worth (not much), the personal exit is done on one of these three, I sold most of another and
will continue, I haven’t sold any of the third but I will soon. However, more important is to
consider them closed positions and failures for the reasons noted above. The easiest exit was
Amarillo Gold (AGC.v) and at the expected 30c price, the new backers absorbing sellers such as
I reasonably effectively. We ran a bit of a post-mortem on these failures last weekend, that will
do for today.
QC Copper & Gold (QCCU.v): A strong week, up 11.4% into headwinds as the market
applauded its last drill holes before the maiden
resource estimate from Opemiska. Latest word I
have is not to expect the resource announcement in
the next couple of days, but yes to expect it by the
end of September.
Argonaut Gold (AR.to): Fake annoyance about
Friday’s price drop in AR.to aside, this simple chart
of the last two trading days sheds some light on
10

matters; somebody, somewhere wanted out of around 500k AR shares for their own reasons on
Friday and they found a counterparty starting at $3.05, the rump going through at $3.00.
This continues to be a tremendous bargain, I may add again if the $3.00 prices remain.
Minera Alamos (MAI.v): In terms of production, we all know what Minera Alamos (MAI.v)
must deliver in the last four months of 2021 in order to make good on its promises at Santana.
In terms of promotion and marketing, MAI’s job is to keep its shareholders (you, me) onside
and it does just that via exemplary virtual outreach. We’ve lauded MAI President Doug
Ramshaw’s successful social media strategy of “1) tell people what you are going to do 2) do it
3) repeat step one” and a key to the policy, aside from being always available on Twitter or
preferred bull boards, is regular updates and media content.
An example: Last week I didn’t book a 1-on-1 with President Ramshaw during Beaver Creek,
neither did I catch his presentation due to an agenda clash, but even without that access it was
easy to keep up with Minera Alamos thanks to his Crux Investor segment that appeared last
week (3), one that’s bound to be followed by another talking had interview in another place
later. This constant availability becomes its own good will asset and builds investor confidence:
I know, because my hands-off attitude toward the company in the last two quarters belies the
fact that MAI.v my largest single position in a junior (by a margin, too). We are all bored and
frustrated by the share price inertia, however we’re still around because of the obvious deep
value represented by MAI once it delivers and re-rates into production. WE’re also around
because Doug Ramshaw makes it easy to support the company, as long as he appears on a
screen to tell me things are on track, then things are on track.
Great Bear (GBR.v): There are no qualms in admitting that this desks holds GBR for larger,
strategic reasons, rather than for any information advantage on the company. There are so
many high-level anal ysts covering GBR that my GBR opinions are of little import, anyway.
Instead, The IKN Weekly holds GBR as a trade on Canadian land prices and the eventual M&A
action this stock will attract. Admittedly, a strategy adapted from this time last year when I
erroneously believed a deal was imminent, it’s still very easy to hold GBR at current prices.
The stock got plenty of attention at Beaver Creek and its recent drill results wrapped into a new
presentation that impressed watchers. For example PI Fincorp (anal yst Phil Ker, a decent
judge) updated on GBR and set its target price at C$24.75 (+74.5% from this weekend) on the
back of its internal analyst estimate for the upcoming resource number. They are guessing
9.5m oz Au and if so, C$25 is a reasonable target for a non-frothy market. Given the right
circumstances and a resurgence in gold’s popularity, GBR coul dend up selling for a lot higher
than that.
Strategic Metals (SMD.v): Doug Eaton and SMD put on one of the better presentations I
saw during Beaver Creek, I was also pleased to see it being broadcast from a (hotel?) room
instead of at the conference (it’s now clear that “hybrid” conferences are some of the best to
attend virtually). The deep value we know about, underscored.
Copper Mountain (CMMC.to): I’ve deliberately split comments on CMMC into two this
weekend, so please check out the company notes section of The Copper Basket, below. Here
we consider the Thursday NR from CMMC (4), reporting good drill numbers from the New
Ingerbelle target located next to he main Copper Mountain mineralization and resource. Here’s
a small segment of the CEO comment:
“These results confirm our view on New Ingerbelle that there is huge reserve growth
potential,” commented Gil Clausen , Copper Mountain’s President and CEO. “The
deposit continues to get bigger and better with drilling.”
CEO Clausen goes on a little longer, to explain how the New Ingerbelle resource definition will
continue into 2022, but his comment on “bigger and better” is the one, because for a change
it’s true. It’s no mean feat to expand a known resource and improve its average grade at the
11

same time, but this set of results promises exactly that. Typical Cu and CuEq returns in last
week’s NR were plenty above the New Ingerbelle mineral reserve calculation 193 million tonnes
grading 0.24% Cu, 0.15 g/t Au and 0.48 g/t Ag (0.33% CuEq). Please see below for more on
the price movements but thanks to the ongoing
definition of its pipeline expansion project, this
fundamentally solid, highly profitable copper miner
with bags of organic upside just got one notch
better. However and as this six-month chart
(right) shows, despite…
 An excellent reported Q2
 Significant development at both organic
projects
 An 8% higher copper price
…CMMC is back to where it was at the end of Q1.
I suppose we could frame this as some crazy end-
of-summer sale price, but it’s an anomaly that
wont last long. Copper Mountain (CMMC.to) is a no-brainer at this price deck, plus as explained
below this weekend’s price is an excellent trade entry point (if it’s available Monday).
Mene Inc (MENE.v): Low volumes and little action last week, Mene continues to fly under
most radars. As noted last week, it won’t stay that way for much longer in the circles in which
this company is growing. I will continue to add in small tranches, from time to time.
The Copper Basket
After thirty-six weeks of 2021, The Copper Basket shows a gain of 26.28% 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 1329.07 12.36 103.3%
2 Copper Mtn CMMC.to 1.81 207.5 682.68 3.29 81.8%
3 Oroco Res OCO.v 1.85 186.96 484.23 2.59 40.0%
4 Marimaca Cop MARI.to 3.25 87.737 343.05 3.91 20.3%
5 Western Copper WRN.to 1.57 135.798 283.82 2.09 33.1%
6 Amerigo Res ARG.to 0.80 181.79 225.42 1.24 55.0%
7 Excelsior Min. MIN.to 1.12 273.585 150.47 0.55 -50.9%
8 Regulus Res. REG.v 1.07 101.85 90.65 0.89 -16.8%
9 C3 Metals CCCM.v 0.115 438.56 78.94 0.18 56.5%
10 Aldebaran Res. ALDE.v 0.455 125.24 77.65 0.62 36.3%
11 Doré Copper DCMC.v 1.00 53.304 47.97 0.90 -10.0%
12 Chakana Cop PERU.v 0.60 111.41 38.99 0.35 -41.7%
13 Element 29 Res ECU.v 0.45 68.281 38.92 0.57 26.7%
14 US Copper USCU.v 0.105 87.53 12.25 0.14 33.3%
15 Chibougamau CBG.v 0.165 53.077 11.15 0.21 27.3%
NB: All stocks in CAD$ Portfolio avg 26.28%
Our basket average dropped by 2.2% on
60% The Copper Basket 2021, weekly evolution
the week, this despite the impressive rally 55%
50%
in copper prices on Friday. Getting the basic
45%
count out the way, the split was reasonably 40%
even with seven winners (SLS.to, CMMC.to, 35%
30%
PERU.v, CCCM.v, DCMC.v, ECU.v, USCU.v) 25%
and eight losers (OCO.v, MIN.to, WRN.to, 20%
15%
MARI.to, ARG.to, REG.v, ALDE.v, CBG.v) 10%
5%
12 0%
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 ht5pes ht21
source: IKN calcs

but the average dropped all the same; just one larger winner (USCU.v up 12.0%) and three
bigger losers (ALDE.v down 13.9%, CBG.v down 12.5%, MIN.to down 11.3%) didn’t help
matters.
Away from our normal focus on the smaller copper stocks, a glance at how COPX has run
against the S&P500 over the last ten days is useful context this weekend:
The SPX context is how it rose gently the week before last, then went into moderate bear mood
up to Friday, when the selling we all know about (or should do by now) came.
Meanwhile copper stocks and the COPX were on a wilder ride, with the rally into last weekend
then the latest round of ChinaFears! The jawbone this time came from China’s Customs agency,
that reported primary copper imports (refined, anode or copper products) dropped 41% YoY,
which contributes to an annualized drop of 15.4%. We quickly got the talking heads rolled out
via the newswires, telling us that “copper is too expensive” for Chinese end-users. The bearish
jawbone latched onto the end of strike threats in Chile, with the last of the Big Mine vs Big
Union deal agreed upon early in the week (and closed Friday, that’s Codelco Andina and its
major union now happy on terms) as a negative for prices (it was always a wash, less than
three years ago how La Escondida closed for six weeks and didn’t affect the copper price, that’s
all you need to know) We even got one of those old chestnut reports on how X is replacing
copper in the manufacture of Y because of the price (5): Copper Is So Pricey Now That Aircons
Are Switching To Aluminum”, says Bloomie. A sure sign copper is going higher still is when a
small percentage of end-users with the opportunity to swap out of copper, do so. It may seem
counterintuitive at first, but the reason they are swapping out is the growth of other end-users;
those with no choice at current prices will continue to buy the metal, they are far greater in
number, that Bloomie header is copper bullish.
Sure enough, Friday came along and along with the macro jolt, copper’s rally was turbocharged
by the arrival of SHFE inventory concerns. It’s not just this desk now, others who move the
market are now focused on the dwindling SHFE copper stocks (6):
Shanghai copper stocks fell 10.7% from the previous week, the bourse said on
Friday, sinking to their lowest level in almost 10 years as tight supplies push metal
prices higher.
Deliverable copper stocks in warehouses monitored by the Shanghai Futures
Exchange now stand at 61,838 tonnes, the lowest since December 2011, Refinitiv
Eikon data show.
We’ve been warning about the major copper
catalyst going into 4q21, it’s now starting to
happen. As for the action last week, the COPX
chart above gives a good idea of the volatility
so instead, a longer-term visual of copper’s
HGZ21 contract (December 2021) show how
much the metal jumped on Friday:
13

Those Chinese buyers who were apparently refusing to pay up had a sudden change of heart,
we saw the highest prices of the Northern summer on the back of the clear inflationary impulse
As we now know it’s in-play, let’s get granular via our weekly inventories rundown, data as
always supplied by Chile’s Cochilco:
 Already tight everywhere, aggregate copper tonnage for the three official world
systems dropped another 25,319 metric tonnes (mt) last week, and that makes 40kmt
off in two weeks, at the wrong time of year into thin stocks. Think about it. This
weekend’s total is 342,279mt.
 The SHFE again flashing a red light, warehouse stocks down another 7,440mt on the
week to reach 61.838mt. A ten year low and considering the changes at SHDE since
then, in fact it’s a historic low and supply has never signalled this tightness before.
 The LME didn’t help, with 18,275mt of copper leaving its own warehouses (including 8k
out of nearby Asia locations. Once again, remember how 175k of LME’s total 233,950mt
is situated in Europe, rather than where the strong demand is.
 The Comex added another small 396mt, to close the week at 46,491mt. No biggie.
Here’s the Shanghai-only inventories chart, and how low do we go?
Shanghai Futures Exchange Warehouse Stocks, 2014 to date
400000
350000
300000
250000
200000
150000
100000
50000
0
14
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 ht21
Mt Cu
|
source: Cochilco
Here’s that better chart:
MT Cu SHFE copper inventory levels, 2018 to 2021 Jun to Sept
300000
250000
200000
150000
100000 2021
2020
50000 2019
2018
0
20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37
source: Cochilco data
This time last year, SHFE warehouses held 115kmt more copper than they do today and, with
the world’s markets now waking up to the screaming signal of end-user shortages, expect The
IKN Weekly’s preferred dataset to get its place in the sun as 2021 closes out.
Copper Mountain (CMMC.to): Part Two of Two, if you like. Normally we’d only comment on
this stock above, what with it being a personal holding, but today CMMC gets two segments
because this weekend it stands out as a near-term trade, not just for my longer-term strategy.
A couple of price charts make the visual case, starting with the YTD comparative to COPX:

Traditionally CMMC shows leverage to peers, true also in 2021 but the lack of macro price
catalysts in the last quarter has dampened trade enthusiasm and dragged this traders’ stock
lower. We now switch to the ten-date chart, lapsed hourly:
Friday’s snapback rally in copper made the difference, but buyers were already picking up the
bargains in CMMC on Wednesday and Thursday, helped along by the New Ingerbelle numbers
(see above) (7). There are, of course, other copper stocks that fit the bill as a trade on further
copper strength this coming week, but CMMC is an obvious choice due to its market popularity,
liquid volumes and fundamentally sound financials. Once it pings it can run fast, he YTD chart
(above) gives an idea of the beta when the market buys the copper sub-sector. With plenty of
stocks still playing catch-up to copper’s big move Friday, Copper Mountain fits the bill as a
vehicle for those who play momentum.
Solaris Resources (SLS.to): The definition of a maturing trade. Last week SLS reported
another massive an impressive hole from its main Warintza target, with “1,184m of 0.68%
CuEq From Surface” part of the headline (8). However, the simple fact that is when your
market cap is over U$1Bn and people bought the stock because of long-rich holes out of a live
porphyry target, you don’t get the same market reaction. Instead, the market begins to leave
you UNCH as long as you deliver, and discount a few
points if the next set of assays don’t quite reach the
same bar. SLS has always been a big-league stock, with
long-term backers and accumulators who are less
concerned about market timing and momentum than we
retail speculators. The patient former are not going
anywhere, the retail latter will have to decide whether to
hold through an indefinitely long quiet period for the
stock until it’s sold to the highest bidder, or move on. A
six-month chart for your consideration, right.
15

The Producer Basket
After thirty-six weeks of 2021, the Producer Basket shows a loss of 15.78% to level stakes:
company ticker price 1/1/20 Shares out Mkt Cap (U$Bn) current pps gain/loss%
1 Newmont NEM 59.89 805 45.88 56.99 -4.8%
2 Barrick GOLD 22.78 1778.04 34.41 19.35 -15.1%
3 Agnico Eagle AEM 70.51 244.187 13.47 55.17 -21.8%
4 Kirkland Lake KL 41.27 267.056 10.82 40.52 -1.8%
5 Kinross Gold KGC 7.34 1261.07 7.20 5.71 -22.2%
6 Endeavour Min EDV.to 29.62 252.568 6.22 29.57 -0.2%
7 Pan American PAAS 34.71 210.262 5.29 25.17 -27.5%
8 B2Gold BTG 5.60 1051.697 3.85 3.66 -34.6%
9 Alamos Gold AGI 8.75 392.739 2.92 7.44 -15.0%
10 Pretium Res PVG 11.48 187.833 1.84 9.77 -14.9%
Prices in U$ except EDV.to (share price in CAD$ and mkt cap in approx USD) Port. avg -15.78%
Last week, we reported ten winners out of ten winners. This week it’s ten losers from ten and
for sector commentary on the sector, try this: There’s no stock picking, we are macro-driven,
precious metals stocks continue with high beta to USA number releases, GDX and their friends
rule the sector price trends until the next real catalyst comes along.
So, ten down from ten and the range was tight too, with least-worst Kirkland down 3.8% and
biggest loser B2Gold (BTG down 8.3%). The others grouped around the 4% to 7% range,
which fits with a GDX benchmark that lost 5.25% on the week. The basket largely mirrored the
GDX, we’re still a little over three percent behind and a quarter of time with which to claw that
back.
The 2021 Producer Basket: Weekly performance and 20%
comparative to GDX control
15%
10%
5%
0%
-5%
-10%
-15%
-20%
An Expanded Royalty Watch
This occasional segment got more frequency in the first part of this year, with my call for
royalty and streamer companies in
2021 being them to under-perform
the general mining market. More fool
me and, in most cases at least,
reality has turned out to be the exact
opposite. This 2021 YTD chart
illustrates, with the black line taken
by the industry benchmark GDX:
To begin, look above to remember
my 2021 basket picks are 3% behind
the GDX, which means that even
Sandstorm (SAND, orange line) and
16
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 ht5pes ht21
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 ht5pes ht21
source: IKN calcs, NYSE/Nasdaq/TSX data

its August slump has held better.
My credentials on the royalty/stream sector set, we consider the chart and the only true failure
in the bunch. That’s Metalla (MTA.v) and even that looks company-specific, as other small
royaltycos such as VOX (VOX.v, see market watching) are UNCH on the year, mirroring the
squiggly lines of Royal Gold (RGLD, yellow) and Wheaton (WPM, blue). Meanwhile, flying high
and 8.5% up on the year is Franco-Nevada (FNV), proving once again that money will seek
refuge in the highest quality available.
The Tiny Dogs
After thirty-six weeks of 2021, the Tiny Dogs show a gain of 4.42% 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 7.98 0.13 -36.6%
Aston Bay BAY.v 0.045 163.975 7.38 0.045 0.0%
Constantine Met CEM.v 0.17 45.4 20.20 0.445 161.8%
Contact Gold C.v 0.115 240.757 15.65 0.065 -43.5%
Golden Pursuit GDP.v 0.22 40 4.60 0.115 -47.7%
Manitou Gold MTU.v 0.045 230.79 18.46 0.08 77.8%
Precipitate Gold PRG.v 0.240 106.241 10.62 0.10 -58.3%
QC Copper QCCU.v 0.315 105 20.48 0.195 -38.1%
Red Pine Expl RPX.v 0.400 95.806 53.65 0.56 40.0%
Warrior Gold WAR.v 0.090 91.818 7.35 0.08 -11.1%
Prices in CAD$, data from TSXV basket avg 4.42%
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.
Just two winners and one unchanged stock on the week (WAR.v), but the larger percentage
wins in Antler (ANTL.v up 23.8%) and QC Copper (QCCU.v up 11.4%) mean the overall
average stays positive for 2021, despite the
losses felt across the board as gold failed to 20% Tiny Dogs, 2021 weekly tracker
hold U$1,800/oz again. 16%
12%
The only real signal currently offered by the
8%
Tiny Dogs collective is a non-signal; this market
4%
is not bullish enough on metals to see
0%
meaningful cash make its way down to these
-4%
bottom tiers, as simple as that. Bad news for
-8%
those explorecos looking to take advantage of
-12%
the classic autumnal financing window,
supposedly open now and running to end
17
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 ht5pes ht21
source: IKN calcs, TSX data

October (ish). Without buying interest in the open market, the sketchier end of the type of
small, illiquid stocks represented by our basket are going to get either raw deals, or nothing.
It’s not all doom and gloom of course, the way the market picked up on Friday may signal
better times ahead for resource and commodity plays, as well as the continued popularity of
gold and the PMs. We all know this sector can turn on a sixpence, too, junior explorecos are
among the most volatile stocks in the world, precisely because they cannot control their own
destiny and the wider macro directly affects valuations. What I do see here, however, is a clock
ticking on treasury positions in a few of these companies and at some point, we may see
tinycaps start pulling the trigger on overly-dilutive deals. Watching brief.
Constantine Metal Resources (CEM.v): It’s that ten-year chart of CEM one more time, a
reminder that its recent action may be spectacular and the new backers at the company have
brought interest and liquidity…
…but history also shows CEM as prone to flashes in the proverbial pan, often at the same time
of year. I don’t think there’s anything shady going on, at least this time around. I happen to
agree that its PPS was depressed under 25c for almost two years and artificially low. The
current 40c/50c gives a better reflection of its true equity value, that has been awakened by
new money recognizing the value on offer and
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
Country risk is only part of the story
A recurring theme from Beaver Creek last week was hearing companies proud of their
achievement and advancements, despite all problems thrown at them by local circumstances.
There’s a lot of cloth to cut too, what with Covid-19 and the resulting restrictions brought upon
most activities by most governments. As your author was about covering and watching LatAm
stories, I got to hear a lot about how Junior XYZ was battling against this-or-that government
and its bureaucracy but while doing do a story hit my timeline and reminded that Country
political risk is only one part of the story. The excerpt is from local Arizona’s KTAR News (9):
WASHINGTON – Federal regulators on Friday rejected a mining company’s request to
reduce critical habitat for endangered jaguars in the Santa Rita Mountains on land that
overlaps the footprint of the proposed Rosemont Copper Mine.
The decision by the U.S. Fish and Wildlife Service is the latest setback for Hudbay
Minerals Inc., which has been working for more than a decade to get permission to
open the mine that it says could create thousands of jobs and bring billions in
economic development to the region.
But opponents welcomed the decision, saying the mine threatens not just the jaguar
but the area’s drinking water supply.
18

“The people of Tucson have shown very clearly that they value jaguars and their water
security more than they value this foreign company coming in here to put an open-pit
copper mine in our mountains,” said Randy Serraglio, the Southwest conservation
advocate at the Center for Biological Diversity.
This was a story once followed by this desk (when HBM was a smaller company). It was also a
key ingredient in that rather unsavoury insider dealing episode a few years ago, when the old
Norsemont got bought out by HBM and then the Peru people decided to get greedy by buying
shares of the next target. These days HBM and Rosemont are not part of my daily radar, but
seeing how it still cannot move forward (due more to local opposition, less about jaguars)
reminds how the term “political risk” gets badly used by the industry. As you’re about to see,
that’s a neat segue into the next subject.
Canadian mining’s incorrect view of Chilean political risk
Unusually, an op-ed piece makes it to Regional Politics this weekend and for that we go first
person. Without labouring the point, I’m used to hearing views about South America and its
countries from mining company people, commentators and suchlike. It’s not something I dwell
upon under normal circumstances, and as my track record for prediction is hardly stellar I try to
keep our Regional Politics based on the facts. But not this time, because last week opened my
eyes to just how wrong Chile is being called by Canada’s mining sector. Over the course of last
week, I had the opportunity to use the Precious Metals Summit Beaver Creek 2021 via its hybrid
option. The webcast presentations were mostly good and I found nearly all the one-on-one
slots fruitful (see ‘Market Watching’ for more), but when the subject turned to Chile there was a
common trait.
At first, I put it down to coincidence that I was talking about Chile with a CEO running a project
in Ontario, Quebec or West Africa. However, once the coincidence of witnessing a sudden and
almost complete U-turn on their views of Chile from several people (including one who should
know better) I started making a point of asking others, or inserting the country into the
conversation because, according to multiple C-suiters and IR desks connected with Beaver
Creek last week, Chile is about to become a No Go zone for mining. No matter that the region’s
best jurisdiction for mining isn’t going anywhere. No matter that even if passed, the envisaged
mining royalty is a bargain compared to what’s about to hit Peru. No matter that the
Presidential election is already becoming politically nuanced, according to most everyone with
an opinion (and there were plenty of those), Chile is now off-limits for mining and here’s the
house position on that:
You people are insane.
We start with horror story number one, the bill for the mining royalty still making passage
through Senate (recall our prediction of nothing happening in 2021?). Every single conversation
I had about Chile last week was framed around “taxes going up” so you people up there need
to know three things:
1) The mining royalty will affect lithium project economics, yes. Have you see the margins
an operating, bedded-in lithium miner runs? It will not stop development of the right
projects. It won’t even stop the wrong projects from being flipped.
2) The royalty will affect copper project economics, yes. The royalty is all about raising
taxes from the existing, large-scale copper mines in Chile and of course, their owners
today are screaming blue murder about the economic effects of a hike in burdens. And
yes, if copper drops under U$4.00/lb and stays there, economics will be crimped.
3) The royalty will NOT affect precious metals projects. At all.
Now for the second current bugbear, the Constitutional Assembly (CA). The CA process rolls out
in 2022 and ties in closely with the upcoming Presidential election, so will we get loud and noisy
Lefty/Righty political battles, oh yes indeed we will. Also, there will be some ramifications of the
process and eventual changes for the mining industry, but it’s time for some perspective. Chile
will be debating the course of Chile, not its mining industry. Most of direct causes under debate
and most of the eventual changes will be on how way Chile organizes its society. This is, after
19

all, country fed up with paying through the nose for higher education, or seeing protesters
beaten to a pulp by groups of police officers. Those just two examples of causes its political Left
will champion next year, long before it gets to mining and/or corporate taxation matters. Sorry,
mining people, you’re just not as important as you think you are.
Third and last, the upcoming Presidential election in Chile with the first round slated for
November 21st, the near-inevitable run-off between the top two candidates December 19th
(Merry Christmas, Mr. President-Elect). Once again, general ignorance on the process is not the
surprise; what caught me off-guard were the number of opinionated people telling me stuff and
nonsense about the country, the election and how the Commies were about to take power.
Tackling opinionated nonsense is better done with data, rather than simple op-ed. For that we
turn to the polling figures coming out of Chile (now thick and fast, the market among its
politically sophisticated electorate better than most South American countries). Usefully, after
checking out the latest polling figures there’s an English language link on the subject to
recommend, instead of the usual Spanish. That’s at AS/COA here (10) and worth your while
with plenty of information, so please read it too. I’ll stick to the two main dynamics in-play:
 The resilience of voter intention for Left wing Gabriel Boric, compared to a recent
fading for right wing candidate Sebastián Sichel (see IKN Weeklies passim for
background on each).
 The slow but steady rise of third placed Yasna Provoste, the centre-left candidate and a
Michelle Bachelet dauphine. In fact, one recent poll had Provoste in a tie for the
coveted second place that would take her into a run-off with Boric.
It’s round two that matters the most, of course and to give an idea of that, here’s a screenshot
of just part of the ASCOA page:
Most run-off scenarios have the Boric vote holding against whoever comes second, but the
difference is thin and a five point swing would be enough. The world up North seems to have
written off Chile as the next about to “Go Commie”. Not only silly compared to even a worst-
case scenario for this election (Boric has been quick to “see the political advantage” in
moderating the message), it’s not even a given the Left gets voted in and to underscore, it
would take a Boric surge and a clear victory in round one to usher in the type of politics feared
by the industrialized North. While not their preferred result, the mining sector would take Boric
round two win in its stride, as such a win would be product of political compromise. While his
20

eventual government would position further Left than the Bachelet-type socialism we’ve seen
from Chile previously, he wouldn’t be able to move toward the extreme without losing
necessary support. A bit like Peru today, but the rules are clearer.
Bottom line: If the “Avoid Chile” message picked up fro Beaver Creek last week had come
from just one or two mining people (or even a handful), it would have caused a shrug and not
much else. Bur it wasn’t like that, the impression Canada has of Chile today is just plain wrong.
Let’s specify that statement (before you start mailing in), I am talking about the C-suite
members and IR departments of Canadian junior mining companies with whom I talked last
week. Somebody, somewhere, in a higher echelon of power has supplied the mining world with
a large serving of Kool-Aid on Chile, normal I suppose but this time the junior world’s decision
makers have bought into the bunkum. This, to me, speaks of the advantage of buying into Chile
now because, once the reality is understood, Chile will quickly regain its mantle.
(A final?) Peru politics update
After a break of a couple of weeks, a return to what may turn out to be the final purely political
note on Peru this year. Although the turmoil is bound to continue to a greater or lesser extent,
at least the playing field is now largely sketched out and its (battle) lines are drawn. Out is
chaos and the prospect of anarchy or a military intervention, in its place the type of politics that
makes national headlines only. As such, and interesting though it may be, as long as the
uneasy truce between Left and Right continues this will be the last report on purely political
matters out of the country and we’ll go back to a mining-only focus.
The events have seen the hard Left wing rise to power in Peru reached an inflection point
yesterday Saturday, with the death of Manuel Rubén Abimael Guzmán Reynoso, normally
known as Abimael Guzmán, a provincial university professor who rose in the 1970s to lead the
Maoist Communist terrorist organization, Sendero Luminoso. Let us correctly understand who
this man was, with the verdict handed down by Peru’s official “Commission of Truth and
Reconciliation”, that Abimael Guzmán was directly responsible for the deaths of more than
30,000 Peruvians during the 1980s and early 1990s. The least we can say is that the world is
better off without him. His death, aged 86 with the last 29 of those in jail, comes during the
first weeks of the Presidency of a Left wing provincial teacher who rose to lead his own Left
wing political party. A strange echo of the past, tough we hasten to add that President Pedro
Castillo has shown no sign of wanting conflict between fellow citizens. Quite the contrary, in
fact, he’s become quiet the reclusive character When the hard left wing Prime Minister, Guido
Bellido, and cabinet were ratified by Congress two weeks ago (feels like months, the speed of
events in Peru), it was indeed the move to “give em enough rope and they’ll hang themselves”
variety we suspected at the time.
Since the cabinet ratification, the opposition has made hay by attacking ministers one-by-one,
digging out old misdeeds (there are plenty) and jumping on anything controversial from the
mouth of the President, his Prime Minister or his team. They don’t have to wait long either, with
PCM Guido Bellido being a particularly “rough character” (to put it diplomatically) who has views
on sexual equality that would have looked dated 30 years ago. The result is an executive forced
to react to one self-induced (and purely political) crisis after another, we cold have the world’s
fastest ever transformation into a Dead Duck Presidency on our hands. Add in a Congress that
has already showed every sign of blocking any law project or bill it doesn’t like from this
executive, providing anything worthy of controversy ever makes it out of President Castillo’s
ministries and into consideration. The situation isn’t helped by Castillo, who has in turn has
limited himself to a bare minimum of public exposure. Overall the lack of movement on any of
his flagship policies while campaigning is noteworthy, while populist measures such as a S/350
pandemic payout for families in need, or the crimping of GLP gas prices that were threatening
to run out of control due to the double whammy of the Sol’s depreciation and natgas prices
(nearly all Peru’s kitchens run on 10kg balloon flasks of natgas).
All this suits the status quo, of course. The right’s strategy is to perceive any government
project as a Commie threat to liberty, while the Left is suddenly interested in free market
21

economics as the main battle over the 2022 budget begins. New FinMin Pedro Francke may be
a classic Lefty intellectual economist, but he’s also peer-acclaimed for his work and while we
may disagree with the Castillo government’s policy direction, the fiscal and monetary future of
Peru is in safe hands. Peru isn’t going to become Venezuela under his direction and while I will
insist Peru is headed down the wrong track, Bolivia again provides the model for a hard Left
wing government runs its Central Bank and in an orthodox manner, and while anyone can
opine, fiscal and monetary decisions are left to the financially literate. Peru’s cabinet ratification,
plus FinMin Francke’s stated position of being against plenty of the ideology behind President
Castillo/Vladimir Cerrón’s Perú Libre party, mean that suddenly Francke is the most powerful
man in the country. He holds the purse strings that ministers more loyal to Cerrón and the hard
Left need.
Before leaving, a word on the mining industry’s response to the first weeks of the Castillo
government and those large tax back payments aside (Buenaventura, Cerro Verde, Las
Bambas, others), there’s been little to worry the industry. As a lobbying group, miners have
jumped eagerly on the Castillo government’s “Social Profitability” initiative, as it gives the better
companies the opportunity to point to their track records of social responsibility, local job
creation etc., and the no-so-good something to aim for (e.g., the way the villages and small
towns around the Yanacocha mine in Cajamarca lack basic amenities such as running water or
paved roads, despite having South America’s richest gold mine on their doorstep, is getting
plenty of airtime in Peru this year). Another project that has mysteriously gone from ignored to
loved by mining companies is the plan to lay a train track through the so-called “mining
corridor” of South Peru which services many of the large mines in the zone (Las Bambas,
Antapaccay, Constancia, etc). Under previous governments, the plan was ignored and social
tensions raised by hundreds of trucks running past small villages, often on dirt track road. All of
a very sudden, the Mining Ministry of Ivan Merino loves the idea and the companies do, too.
They even have willing backers of large-scale civil works, as China has lost no time in making
diplomatic inroads into the Castillo government and has ruffled plenty of feathers as the new
(and deep-pocketed) major lobby in Lima. This isn’t “The USA Losing (insert country of choice)
because South America has been largely ignored by successive US administrations, Trump and
Biden are merely the latest in the list. Instead, Peru is headed toward a larger version of
Ecuador, in which China funds large and expensive civil works (hydro, O&G) and will even buy
the sovereign bonds from the country so that it might pay (what could possibly go wrong?).
This has ramifications for the local mining industry, of course, as China’s footprint is already
firmly established in Peru via several of its largest mines (Toromocho, Las Bambas, Shougang
Marcona, etc). The image of Peru’s new draconian government threatening and clamping down
on mining companies, including an active threat of expropriation, will remain a fantasy as long
as Castillo looks East, rather than North, to fund his government’s plans to spend its way out of
the Covid-19 recession.
Market Watching
Four standouts from Beaver Creek
Last week’s Beaver Creek conference became an excellent presentation-fest, your author
managing to get through 29 of them aside from the 1-on-1 link-ups with a few interesting
companies, with many eager to report on progress made during the year to date so we got
plenty of fresh news. As for what was on offer, your author rarely buys a stock on the back of a
single conference appearance and shows such as Beaver Creek are always best as a place to
start DD, so the following four companies are presented as-is, no recommendations and I’m not
a shareholder of any, instead they’re DD material in the days and weeks ahead. You get four
short write-ups and a 2 month chart. Consider these the same way I do, as potential points of
departure:
Unigold (UGD.v): The surprise package of the conference, I’ve watched UD from afar for at
least half of its 20 years in Dominican Republic and it’s always been easy to stay on the
22

sidelines. However, UGD is now making real moves toward submission of plans and permitting
for its Neita project in Western Dom Rep. The
other UGD issue, that of is refractory gold
mineralization, is less of a project killer these
days as well. The company has identified two
mineralization events and the second brought
high-grading, non-refractory shoots into the
deposit. As they make up about half the
resource, UGD now has feed for a real mill.
CEO Joe Hamilton was also open and frank
about social and community relations, all seems
fine (and far better than at Romero). With
GoldQuest (GQC.v) a permitting disaster,
Precipitate (PRG.v) stepping back and Barrick
Pueblo Viejo seemingly the only game in town,
UGD may be the company the country turns to for its long-awaited next win.
Vox Royalty (VOX.v): I am as surprised as you
that “A compelling case for a new royalty
company” exists, but I suddenly felt very lazy for
not reading up on VOX.v previously. The “secret
sauce” (their words) is their ability to source
royalties being held by unusual people and
companies (old-timer prospectors, telephone
companies that are happy to sell non-core assets,
etc) and the extra interest comes from the
majority Australia focused suite of royalties. VOX
believes those are being marked down in their
Canadian market, but once the cash starts flowing
from them the market will change its mind.
At this point, I only have their presentation to go on and haven’t started DD, but VOX stood
out in the presentation room as a company to investigate further.
Fireweed Zinc (FWZ.v): When you’re a small
company on top of a large base metals deposit,
the corporate strategy and focus is vital in order
to create shareholder value. The way to do that is
not to wait for the big company to buy you,
instead you build it yourself. CEO Brandon
MacDonald made his case well, the company is
not resting on its exploration laurels and is deadly
serious about taking MacMillan Pass either to
production, or making sure its sold to a company
that does. I was more impressed than I expected
and while not a buyer in 2021, it’s shortlisted for
BM plays to follow next year.
Fiore Gold (F.v): I’ve owned Fiore Gold (F.v) a couple of times previously and it’s no
stranger to these pages, but it still wins a Show
Standout award for its main presentation. Though
F.v has never made any secret of its development
project, the market seemed to pay attention to
Gold Rock and what it will mean to the company
for the first time last week. CEO Tim Warman was
the reason, his matter-of-fact type presentation
telling us that Gold Rock will grow, will have a
23

good resource, will be permitted and will be a mine for the company, all using the organic
cash flow from Pan.
Tracking the Buy Peru call
We’re keeping an eye on the “Buy back Peru” which may have been a month too early but is
now showing the right signs The first tracking chart considers the last six months of the Lima
Stock Market (BVL) ETF tracker (EPU), PM miner Buenaventura (BVN) and Banco de Credito
(BAP) for the financial pulse:
Signs of life on the right of the chart, so here’s a close-up of the same data over the last ten
days:
If the mining companies (e.g. Buenaventura) were our only point of reference, you may think
Peru’s woes continue. Not so, and the last ten days have seen both price appreciation and new
buyers move into EPU, that volume surge on Thursday catching the eye. That 683k traded is
the second highest daily volume in 2021 and represents around U$18.5m in value.
Harte Gold (HRT.to): An eye on the side bet
Another “no news” update on our Side Bet trade, nothing happened of note last week and we
await the likely window for a deal and a catalyst at the end of this month:
All very quiet, that 600k “block” trade may stand out and impress at first sight but context is
required: That trade is less than C$40k post-commish.
24

A brief return to Kingfisher METALS (KFR.v)…
…and not Resources, thank you for your attention and please accept my apologies. This small
redux probably wouldn’t exist without my
embarrassment for getting that wrong as the stock
price didn’t do anything crazy last week, but Friday’s
close was interesting enough for a word:
Peak interest came Tuesday morning, the tape
showing smart speculators taking a few profits.
Volume dropped as the week wore on, maybe due to
Beaver Creek and the way the market had other
things to talk about. That’s good, and Friday’s 55c
(and below) is a reasonable entry point for those of
you willing to bet that KFR’s first diamond drill assay
results from Goldrange /Cloud Drifter live up to
expectations apparently deliberately raised by the
company. I have no position in Kingfisher Metals and will wait for the assay NR.
Minera IRL (MIRL.cse): Concerned Shareholders
After drafting a note and watching it expand, I have decided to send it separately tomorrow
Monday evening (EDIT: that’s now Tuesday) as I’m keen not to fill The IKN Weekly with lthe
blow-by-blow of this battle. There’s plenty of progress to report and the conversation I had with
the prospective CEO replacement was most positive, but there’s also context to report and
consider. That’s best done with a dedicated essay, I’ll polish and send it to the CS list
tomorrow, as well as posting on the SI bullboard.
Conclusion
IKN642 is done, we end with bullet points:
 The note on Chile in ‘Regional Politics today gives yet another reason to buy Rio2 Ltd
(RIO.v) shares at their current price deck. These prices will not last.
 Excelsior Mining (MIN.to) gets my continued support as a shareholder, but only just
and it wouldn’t take much to change my mind. None of us should be happy about the
development so far, track records matter and MIN has been lacking. That takes the
edge off this trade, but today’s price isn’t about yesterday’s plan and with the selling
done, the company an now gets judged on its assurance of a clear path to production,
budgeted and on a timeline. They’re going to crank up the investor outreach and if that
can perk up the price, it would be easier to stay. The jury is out.
 Copper Mountain (CMMC.to) is cheap. Argonaut Gold (AR..to) is cheap, so why risk an
exploreco story? These two will return strong financials for all quarters to come and
fund their own excellent organic growth pipelines.
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
25

Footnotes, appendices, references, disclaimer
(1) https://www.excelsiormining.com/news/news-2021/xcelsioriningrovidespdateonunnisonopperroject20210909
(2) https://www.excelsiormining.com/images/pdf/Presentation/2021/September_9_2021_PPT.pdf
(3) https://www.youtube.com/watch?v=YbjEvHKnuQk
(4) https://cumtn.com/investors/press-releases/2021/copper-mountain-announces-continued-positive-drill-3493/
(5) https://www.bloomberg.com/news/articles/2021-09-09/copper-is-so-pricey-now-that-aircons-are-switching-to-
aluminum
(6) https://www.mining.com/copper-price-up-as-inflation-runs-hot/
(7) https://cumtn.com/investors/press-releases/2021/copper-mountain-announces-continued-positive-drill-3493/
(8) https://finance.yahoo.com/news/solaris-reports-1-184m-0-113000691.html
(9) https://ktar.com/story/4669115/feds-deal-another-setback-to-arizona-copper-mine-by-upholding-jaguar-habitat/
(10) https://www.as-coa.org/articles/poll-tracker-chiles-2021-presidential-race
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
26

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
27

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.
28