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The IKN Weekly
Week 665, February 20th 2022
Contents
This Week: Trade heads-up, In Today’s Edition, Happy Birthday Mister Washington, A possible
missing weekend for The IKN Weekly soon, Gold Ukraine Russia things like that.
Fundamental Analysis: Chesapeake Gold (CKG.v): A classic “optionality on gold” trade.
Stocks to Follow: Copper Mountain (CMMC.to), QC Copper & Gold (QCCU.v), Aldebaran
Resources (ALDE.v), Rio2 Ltd (RIO.v), Palamina Corp (PA.v), McEwen Mining (MUX), Minera
Alamos (MAI.v).
Copper Basket: Overview, Marimaca Copper (MARI.to), C3 Metals (CCCM.v).
Producer Basket: Overview, Barrick Gold (GOLD), Newmont (NEM), Agnico Eagle (AEM),
B2Gold (BTG) (BTO.to).
TinyCaps Basket: Overview, Infield Minerals (INFD.v), Signature Resources (SGU.v).
Regional Politics: Chile: The limits of the Constitutional Convention (on mining and other
matters), Peru: The Anibal Torres cabinet seeks Congressional approval and another Vice-
Minister resigns, Colombia: Lefty Gustavo Petro firming up his lead, Mexico’s Supreme Court
rules against Almaden Minerals (AMM.to) (AAU).
Market Watching: QC Copper & Gold (QCCU.v) and a good drill assay wasted, Previewing
Amerigo Resources (ARG.to) 4q21 financials.
I remind subscribers that no part of this newsletter can be copied, reproduced or
given to any third party without the express permission of the author.
This Week
Trade heads-up
I plan to buy a modest position in Chesapeake Gold (CKG.v) in the days ahead, full details in
today’s main Fundamentals section.
In Today’s Edition
 Does the world really time wars so no to overlap with major sporting events these
days? Is it a China thing for hosting the Winter Olympics and being Russia’s BFF, or is it
a TV Ratings thing? The Ukraine tension/crisis/name-it-yourself continues to dominate
markets of all sizes, with precious metals prices bending into new shapes as the world
tries to work out when something might happen or not and if it does or doesn’t, what it
might mean. Following so far? No me neither, but you still get ongoing thoughts on
gold and the gold stocks in today’s intro.
 Also in today’s intro, a heads-up on The IKN Weekly in next couple of weeks as there
may be a missing edition, its possible non-delivery due to a different type of delivery. It
may also explain why your author sounds so confused lately. We beg your indulgence.
 If U$1,900/oz gold is The New Normal, what we junior investors (gamblers?) need are
the type of high-beta vehicle that can take most advantage of the uptick. Arguably the
house Top Pick Rio2 Ltd (RIO.v) is one of those, but for four times as much gold under
43-101 compliance and for the same price, Chesapeake Gold (CKG.v) finds itself at the
right price at the right time for a speculative trade. We lay out the argument in this
1

weekend’s main Fundamentals section.
 In today’s Regional Politics, Chile’s Constitutional Convention kicked off the first of its
full sessions last week and we are just three weeks from the handover of power to
Gabriel Boric, so the whole “Commies are taking over” theme is back on the regional
industry radar. So today I have another attempt at allaying your fears about the future
of the mining industry in Chile, there really isn’t much to worry about as long as you’re
invested in the right companies. Rio2, for example.
 Copper remains bullish, be long copper.
Happy Birthday, Mister Washington
A reminder that North American markets are closed tomorrow Monday, as The USA celebrates
Washington’s Birthday, a.k.a. Presidents’ Day or if you live in California it’s "The Third Monday
in February". Canada joins in with its Family Day and that’s fine by me but whatever rhyme or
reason, The NYSE, the NASDAQ, the TSX and all other minor bourses in the two countries are
closed until Tuesday. Take the day off, folks.
A possible missing weekend for The IKN Weekly soon
There are times when one’s personal life encroaches on the professional. While I’m still
doubting whether to write and publish this to subscribers (it’s not going on the blog), it’s time
to write up a draft at least this Saturday morning and see if it gets edited out of the final edition
tomorrow evening (EDIT: It didn’t).
I have no desire to lay out the intimate details of my personal life, but some explanation and
the bare minimum of back-story is required for context. As some of your know, my wife and I
were estranged many years ago. We maintain a friendly and cordial relationship from a distance
and I will add that our daughters live with her. Fewer people on this list know that for the last
three-and-a-bit years, I have been in a new and permanent relationship which has gone from
strength to strength (I’m uncomfortable about talking about my personal life, but without over-
egging the pudding or lapsing into clichés we really are the happiest of couples). So to cut a
long story short, last year we made the decision to try to start a family and within six weeks,
she became pregnant. Our wider families know of course, but we’ve kept this news away from
almost everyone in our professional lives as much as possible (perhaps four “mining people” on
this list know, so please don’t feel left out if you’re a regular mailpal/WhatsApp pal and learn
today, the decision was deliberate). My partner is now in the final stage of her pregnancy and,
according to the events of the last 48 hours, the birth of our baby boy is close. Timing is out of
our hands and due to the nature of the pregnancy (you get no details on that) we don’t know
whether the birth will be natural or caesarean, but it’s certainly in the next few days or couple
of weeks. We are naturally very excited and rather nervous (it’s my partner’s first child, I’m
probably more nervous than she is but doing my best to be the calm and collected one), but we
simply don’t know how the next few days will pan out. With this in mind, I’d like to preview a
potential lapse in normal coverage of The IKN Weekly: It may not happen and timing works in
our favour, but perhaps next weekend, the week after or maybe even a little further down the
line I may put a “No Weekly This Weekend, Folks” message on the blog. Please be clear, in the
next few days I put my partner’s well-being and that of our boy before my normal work
responsibilities. However, once we’re on the other side of the happy event expect a photo in
the subsequent edition, probably one of those with two smiley faces either side of a small
human fast asleep. Maybe even two photos.
The bottom line: Although not certain, there may well be a weekend without an edition of The
IKN Weekly at some point between now and mid-March. Apologies in advance.
Gold, Ukraine, Russia, things like that
Despite gold’s run from last weekend’s U$1,858/oz to this weekend’s level, just under the
U$1,900/oz barrier, this desk repeats its two main messages about gold.
2

Firstly, while we will get near-term spike/trough moments, history has taught us geopolitical
events do not affect the price of gold, not in the long-term anyway. Last weekend, Biden
warned of the “distinct possibility” of Russia invading Ukraine, since then we’ve had sporadic
shelling events across the border (or supposed border, I’m aware it’s complicated and not going
into details better found elsewhere) and provocation or false flag ops (or both? you decide), but
this weekend tensions are still sky-high and the world is on tenterhooks. Secondly, broad
markets dropped and money entered the PM space, which tells us speculative capital considers
the broad market selling as reasonably orderly and non-panicky, to date at least. As such,
bigger money looked for trading advantages and the rise in tickers such as GDX, GOLD, NEM,
GFI etc bore witness. This connects to the point made at the end of last weekend’s intro,
repeated here:
Last week was a prime example of how gold does not make you rich, instead it stops
you from becoming poor. So with bullion as your anchor, you can choose to speculate
on the ramifications of the “Rising Tensions In The Ukraine” or if you prefer, let the
market alone and leave well alone until
there’s more certainty in the air. That’s
the real luxury of gold ownership.
A look at the long-term gold chart shows
how higher interest rates in the Fed’s
pipeline are not putting the world off from
buying the metal. We should however note
that the rise in gold hasn’t seen much
backing from physical GLD purchases, not
yet anyway. True that GLD holdings rose
4.65 metric tonnes on the week and as that
add was all on Friday, there may be more
inflows to come. Here’s the very-near-term
version of the tracking chart we’ve featured
recently to show that bump on Friday...
GLD gold holdings, Dec'21 to Feb'22 (metric tonnes)
1030
1025
1020
1015
1010
1005
1000
995
990
985
980
975
970
3
12/11/03 12/21/2 12/21/4 12/21/6 12/21/8 12/21/01 12/21/21 12/21/41 12/21/61 12/21/81 12/21/02 12/21/22 12/21/42 12/21/62 12/21/82 12/21/03 22/1/1 22/1/3 22/1/5 22/1/7 22/1/9 22/1/11 22/1/31 22/1/51 22/1/71 22/1/91 22/1/12 22/1/32 22/1/52 22/1/72 22/1/92 22/1/13 22/2/2 22/2/4 22/2/6 22/2/8 22/2/01 22/2/21 22/2/41 22/2/61 22/2/81
mt
source: SPDR GLD data

…but if we dial out and take Jan 1st 2921 as our starting point, we return to the context
mentioned around the turn of the year:
GLD gold holdings, 2021 to date (metric tonnes)
1250
1200
1150
1100
1050
1000
950
900
4
12/1/4 12/1/41 12/1/42 12/2/3 12/2/31 12/2/32 12/3/5 12/3/51 12/3/52 12/4/4 12/4/41 12/4/42 12/5/4 12/5/41 12/5/42 12/6/3 12/6/31 12/6/32 12/7/3 12/7/31 12/7/32 12/8/2 12/8/21 12/8/22 12/9/1 12/9/11 12/9/12 12/01/1 12/01/11 12/01/12 12/01/13 12/11/01 12/11/02 12/11/03 12/21/01 12/21/02 12/21/03 22/1/9 22/1/91 22/1/92 22/2/8 22/2/81
mt
source: SPDR GLD data
We repeat, as far as The US market is concerned Bullion In The Time Of Biden has been a
constant sell, no matter what the price has done. This shows in our Inventory/Price Ratio
tracking chart…
GLD: Inventory/Price Ratio, 2021 to date
7.00
6.80
6.60
6.40
6.20
6.00
5.80
5.60
5.40
5.20
5.00
4/1/1202 41/1/1202 42/1/1202 3/2/1202 31/2/1202 32/2/1202 5/3/1202 51/3/1202 52/3/1202 4/4/1202 41/4/1202 42/4/1202 4/5/1202 41/5/1202 42/5/1202 3/6/1202 31/6/1202 32/6/1202 3/7/1202 31/7/1202 32/7/1202 2/8/1202 21/8/1202 22/8/1202 1/9/1202 11/9/1202 12/9/1202 1/01/1202 11/01/1202 12/01/1202 13/01/1202 01/11/1202 02/11/1202 03/11/1202 01/21/1202 02/21/1202 03/21/1202 9/1/2202 91/1/2202 92/1/2202 8/2/2202 81/2/2202
Source: SPDR data, IKN calcs
…which managed to lift its head above the “nobody cares” level of 6.0X for six trading days at
the end of January, but the subsequent rise in the price of gold and the lack of follow-through
buying has seen it sink again, this weekend’s reading 5.78X. We’re now closing in on two full
quarters of historic lows in this ratio and while the reasons behind this sentiment washout are
up for debate (Bitcoin? Stonks? Interest Rates?) the simple fact remains that US buyers are not
behind the recent rise in the price of the monetary metal.
Fundamental Analysis of Mining Stocks
Chesapeake Gold (CKG.v): A classic “optionality on gold” trade
The story of Chesapeake Gold (CKG.v) is not a new, in fact it’s one of the longest-standing
sagas in the exploreco sector and most readers of today’s analysis will have at least some
knowledge on the company and its main asset, the Metates project in Durango State, Mexico.
Therefore, today’s note is not about re-inventing the wheel or re-telling a story that’s been told
by no end of other desks, investors or equities analysts. The investment thesis we present for
CGK today is more straightforward, it’s one of simple timing to market.
However we do need to get the basics out the way, so we begin with the company structure via
our standard top-box, then comes a potted history of CKG but, as your author is well aware
that project history alone could end up as a dozen pages of script, we try hard to focus on the
last year-and-a-but and the acts of its new management team. Here’s the topbox:

Shares out: 67.367m
Options: 5.294m
Warrants: zero
Fully diluted shares: 72.661m
Current share price: C$3.07
Market Cap: C$206.82m
Approx cash per S/O: 0.47c
All prices are in Canadian Dollars unless stated. Forex U$0.80=CAD$1
The potted history
This is where the analyst with a memory and a penchant for following explorecos could bore
you with a story that’s been written up by a no end of other people before him, so I will try my
hardest to keep it real and relevant.
The heyday of CKG and Metates was around 10 years ago, back in the days when gold was
pushing higher after the GFC and the exploration and development of large, low grade, open
pit, heap leach projects was all the rage. In size and potential production, Metates ranked up
with the best (worst?) of them and in January 2013, the company delivered a PFS that
envisaged a capex of U$4.36Bn for a mine that produced 975k oz gold equivalent (AuEq) over
its 25 year life, with 659k oz of that from gold
alone, all at under U$500/oz AuEq cash cost.
All very nice I’m sure, but just weeks after the
publication of its PFS, the 2013 gold reversal
hit the market and Metates, along with a host
of similar large capex ticker bulk mining
projects, fell out of fashion. This comparative
chart ranges back to the days just after the
GFC and gives perspective against GDX and
the price of gold (GLD proxy).
In response, CKG tried to re-work its project
and in 2016 came up with a PEA that
envisaged a two stage construction that
dropped capex to around U$3.6Bn, with the
first stage costing “only” U$1.9Bn. The technology of both the 2013 and 2016 economic studies
involved an expensive autoclave/POX (pressure oxidation) circuit (incidentally, of the type
Newmont plans to install at Yanacocha Sulfides soon) which, along with the high tonnage
throughout and other required elements of the plan, explains the high ticket price. But even
though the company tried to adapt to the 2016 market conditions it didn’t convince the market,
the story went dead and market interest all-but disappeared. That’s about as concise as
possible but to illustrate just a little, in 2018 CKG published just one NR and even that was
about of its lesser early stage projects. Even as late as March 2020, news from CKG was on
optioning into a new project and trying to start from square one somewhere else, it seemed to
have reached a dead end with Metates.
Then something changed. This desk’s best guess is that, at some point between March and
August of 2020 current President and CEO Alan Pangbourne, at that time unattached to the
company, approached previous top dog Randy Reifel (who is now executive Chair) with his
ideas to resuscitate CKG. The financial backers of the company also needed to be in on the
plans and the first clue for those on the outside came in August 2020, when long-term holders
Eric Sprott and Sun Valley fully funded a C$20m private placement (1). CKG sold 4m shares at
$5 apiece. Sprott took C$15m of the placement, which upped his holding and he now holds
13.0% of total shares out, while Sun Valley took C$5m and after some more buying, now owns
10.7% of S/O. We add in the main insider holders Randy Reifel (4.59m shares) and Alan
Pangbourne (7.56m shares) and between them these four hands control over 40% of what
would be a tight share structure, even without those backers. But back to the 2020 Sprott/Sun
5

Valley placement and in hindsight, the most interesting line of the NR is one normally ignored
or glossed over by the world, the placement intention of proceeds:
:
The proceeds of the financing will be used to undertake Metates metallurgical test work
and ongoing regional exploration and for general working capital.
“Metates met work” was suddenly a thing. We move to December 2020, when CKG first
announced it was buying ‘Alderley Gold Corp’, a private company with specialist gold metallurgy
technology, in an all paper deal priced at C$45m as well as bringing in the principal of Alderley,
Alan Pangbourne, as new CEO with his own golden handshake deal in shares and options. Once
the deal had closed in January and new CEO Pangbourne had put together the team he
wanted, the company set about incorporating the technology Alderley brought to the table in a
re-worked PEA that was announced in July 2021 and filed August.
The last twelve months at Chesapeake
That’s 10 years of CKG in less than one page of script and we’ve even introduced the new
catalysts in the pairing of Alderley Gold and Alan Pangbourne, which isn’t bad going. That done,
we now spend a little more time on today’s CKG, its new baseline PEA and what CEO
Pangbourne/Alderley are doing for
the company. We begin with the
resource count and, while there are
more detailed tables this (right) from
the latest corporate presentation is
easy reading. Metates is a very big
resource in absolute ounce terms,
with 19.8m oz gold and 542m oz
silver in M+I category, as well as
some bonus ball inferred. However,
these days the company is
concentrating on the higher grading
intrusive, a breccia with less tonnage but higher grade. The grand total resource hasn’t
disappeared, but what matters most to us and the new PEA are the M+I totals of 5.32m oz gold
grading an average of 0.66g/t, then the 110.6m oz silver with a grade average of 13.8 g/t. But
wait, there’s more . Inside that intrusive M+I there’s a also sub-set of easily accessible and
higher grading 116mt of 0.76 g/t Au and 15.7 g/t Ag material that would become the ore to run
in the first years and provide quicker capital payback and on top of that, recent drill results
suggest real grades may be even higher (see below).
As for the PEA economics, perhaps it’s heretical for a mining stock analyst with a penchant for
doing Excels and running the numbers but today, we’re not interested in the deep details of the
plan or the nominal price target offered by the model. Instead, you get the basics before we
move to the real reasons to consider
CKG as a trade in early 2022 and
two tables from the July 2021 PEA
are the hack. First, this (right):
Gone are the stated plans to run
30,000, 60,000 or 90,000 tonnes per
day, though there are conceptual
ideas to bootstrap the mine higher
once in production in future years.
Instead, the project would mine the
higher-grading intrusive that mines
for 24 years, runs for 31 years and in
the first ten years, averages 105k oz
gold and 3m oz silver. However, the
most significant number o the above
chart is the estimated capex of
6

U$359m. As the company points out in its own promotional literature, webinar appearances and
so forth that’s a 90% drop from the plans up to 2016 and a major difference in entry hurdles
(it’s still a fair chunk of change, though).
Those criteria and inputs give us these economics, as at mid-2021
Those are great numbers on paper, with a base case at U$1,600/oz gold and U$22/oz silver
that stacks up well to today’s market, gives an IRR of 35.4% and here in early 2022, even the
high-end case looks moderate compared to spot prices for main payable gold. Admittedly, there
is no end of potential pushback against a table full of PEA numbers and the old adage of a PEA
is the best economics a mine will ever have is as true today as ever. The nitpick and query list
starts by agreeing that capex and opex have almost certainly risen in our new inflationary
environment. On the other hand, recent drill results (see below) suggest positive reconciliation
to current resource grades, so overall the above is at least a decent place to start and even if
that 45.2% IRR drops, there’s plenty of leeway and on-paper, economics should remain strong
enough to build and run a mine. However, what we need to do is understand just why the
capex bill has dropped by 90% (or so) and for that, we bring in the reasons CEO Pangbourne
(now also President, with Reifel handing him that role when becoming executive chair), his
association with Alderley and its plans need detail.
In December 2020 when announcing its C$45m all-paper purchase, CKG described Alderley
Gold as, “A mining technology company that had pioneered the sulphide leaching technology
for precious metals applications” and for clarity, here are bullet points on the importance of that
to CKG in bullet points, to keep things clear:
 Metates is a sulphide gold resource, but it’s also refractory. The quickie on that the gold
is encapsulated and not easily liberated by standard processing techniques.
 This is the reason the old project plan was to use Autoclave/POX to treat the mineral,
the current standard technology for resources with such characteristics.
 However, Autoclaves are expensive and best suited to large tonnage operations (e.g.
Yanacocha Sulfides), thereby explaining the original multi-billion dollar capex estimates.
 However, there are cheaper methods for sulphide copper deposits that allow them to
operate using a classic and typical heap-leach, which basically involve treating the
sulphide mineralization for fast oxidation (or “speeding up mother nature”) and then
extracting the metal.
 Therefore, if a company could combine the two and work out how to do the same for
gold mineralization, it wouldn’t need to use an Autoclave and would be able to heap-
leach its sulphide gold. And that’s where Pangbourne and Alderley come in. Alan
Pangbourne has plenty of experience with exactly this type of heap leach operation
and, with his colleagues at Alderley has developed new tech for the job.
 In the company’s own words, “Due to the partial refractoriness of the Metates
materials, the two-stage process will include oxidation of the sulphides on an on-off
pad, followed by conventional cyanide heap leaching process of the oxidized materials
7

on a dedicated heap leach pad. The recoveries are projected to be lower compared to
the pressure oxidation option but the process will not be as capital intensive.”
It’s at this point when you check any number of articles or video presentations on CGK that
you’re offered an image like this one (mine is lifted from the
2021 PEA, right). This is how CKG frames its proof of
concept that the technology brought to the table by
Alderley will work on Metates rock. As lab tests go, it looks
successful and is backed up by numerical results (see the
PEA for those). Over the space of around four months, we
see how a typical sample of Metates mineralization changed
colour using the company’s proprietary technology and
process, indicating that quick oxidation of the sulphide
mineralization and liberation of the partially refractory gold
is indeed possible. The PEA gives more details on the
results to mid-2021 (and is an interesting read), but CKG
believes that with oxidation of between 30% and 50%,
depending on rock type, it can achieve recoveries of 70%
for gold and 75% for silver.
If CKG can repeat its early lab results and show that a wide
range of samples do the same in a reasonable cycle times
and without over-use of reagents, its economic model works
and this is where we are today and the company is
currently moving on two fronts. As part of its initial testing
phase of the Alderley plan, in 2021 it commissioned a new set of wide-circumference drill holes
to retrieve fresh samples from
representative rock types at Metates. Above
all, the 21 drill holes in the two 2021
programs are important for metallurgical
work, sulphide drill core will slowly oxidize
on its own account and if old core is tested,
may give false results compared to any
eventual mine. The core retrieved is now
That rock is now undergoing the type of
testing regime seen above (though in larger
range and amounts) and cannot be rushed,
as doing good met work means running
real world cycle times (as Discovery Silver
(DSV.v) realized recently). This testing on
larger batches and differing rock types
began last year and is ongoing, with results
expected as from 2q22 (but recent signals
suggest that may be 3q22…we’ll see).
Before wrapping up the news to date we
should touch on the bonus to the recent drill program, as the same wide holes used to retrieve
fresh sulphide for metallurgical testing also showed positive grade reconciliation compared to
the M+I resource. The five holes from the early 2021 program returned assays of up to 18%
better than resource and reportedly came as a pleasant surprise to the CKG team (the chart
right shows highlight intercepts). When the first returns from the 16 hole program from October
last year were released this last week (8) we saw similar results and to quote last week’s NR,
“…assay intervals which intersected intrusive mineralization were on average 9.4% higher in
Au-Ag equivalent grade than estimated in the current resource block model.” Not 18% but still
a clear positive, as getting that sort of improvement average from across the board suggests
the large diameter drills used for sample retrieval give a better idea of reality at Metates. For
example, one reason for this type of positive grade reconciliation is how water used in previous
8

diamond drilling may have washed grading particles from the surface of core as it was drilled
and brought to surface. With larger diameter holes, the percentage lost to water is less and this
is hardly the first time such a phenomenon has showed up in an exploration project.
Now, after all that, we can grasp the future of Metates, CKG and its share price: The key issue
for project economics is demonstrating it can execute on lab theory, treat sulphides on its
proposed on-off pad using its “Alderley-tech”, move the rock to a standard heap leach pad for
gold extraction at the required level of recoveries for an economic mine. We know it works in
small-scale lab tests (see photo above) and the upcoming met test results in 2q22 (or 3q22) go
a long way in telling us whether it works for real-world conditions.
We are now up to date. It’s February 19th 2022, CKG is in progress on its larger array
metallurgy tests and waiting to announce results that will unlock the project, speed up the
oxidization process and show the range of Metates rock types and grades are conducive to
economic gold production. Early lab tests have been positive and in Alan Pangbourne, the new
team is led by the right person with the right CV to solve the issues. We should also note the
reputation risk and emotional capital CKG and its CEO have invested to make Metates work via
the new plan, as a view of any of the promotional videos or webinars in the last year (there are
many, I think I’ve watched most) is enough to witness the enthusiasm and engagement. All
that is due to the major reason, good old fashioned capitalism: Chespeake at Metates is being
run and financed by an A-list roster, successful miners and investors who do not need to make
a quick buck and are in it for the real reasons. If they can crack open the project, the prize is
worth multi-billions and would be a legacy success for all involved. The current test work is
being done by serious miners with a long-term view, they’re not looking for the quick flip.
However, we must also recognize the flip-side to this story and the main one is that we simply
do not know if the metallurgy will work. We can suppose, presume and add in all the optimism
you prefer but that won’t change the fact that until the met results are released later this year,
it’s a speculation with risk. Not only that, but please recognize that this type of story will be
open to criticism further down the line, no matter how well current met tests turn out. Today
we are at PEA stage and let’s liken those to drawing board economics. Come mid-2022 and the
met results, we will have more data and perhaps around the end 2022 CKG will provide the
slated PFS. That will help firm up assumptions, but don’t think for a moment that the doubts
will all disappear as a PFS won’t stop critics saying “Yes, but will it work on a 15ktpd leach
pad?”, or “Yes, but gold sulphides is not proven technology” or “Yes, but Mexico is so difficult at
the moment” or any number of other criticisms toward the updated plans and be clear, most of
them will be perfectly valid, too. With the met results from the current test batch risk is set to
re-rate one way or the other but it doesn’t disappear ands anyone considering this as a trade
today needs to go in with eyes wide open.
But before wrapping up and getting to the conclusion and trade proposition, there’s one part of
this story with strong credentials as the company financials are in good shape. Here’s a look at
a few tracking charts to prove it, starting with the operating expenses tracker:
2.6 CGK.v: Operating expenses
2.4
2.2
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
9
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3
C$m
other
share based comp
prof fees
mgmt fees
G&A
Exploration
source: CGK filings

We take in the whole of 2018, 2019 and most of 2020 to show how dead it was before
Pangbourne and his new plan showed up. The Y-axis scale is important, as burn was tiny in
those days and plenty of it non-cash, via share based payments (red). Then came the pivot
point in 4q20, which includes the big yellow bar that accounts for the shares awarded to Alan
Pangbourne on entry. Then 2021, in which share payments and G&A have increased but
frankly, this is a still a tightly-run ship considering the size, market cap and resource ounce
count. Today’s Metates certainly benefits from the fact that the massive drill programs are
done, the resource largely defined and the only drilling required last year was for met sampling
(though the grade bonus is most welcome), so as an exploreco company it doesn’t need to
burn a mountain of cash. However, there are plenty of juniors that find ways of burning hard
just because they can and it’s good to see CKG taking the serious route, keeping it tight and
caring about treasury. In passing I’ll add this chart (below) of Below-The-Line (BTL) items from
the P+L, because a) there’s very little friction on the books and b) the only thing that changes
is the effect of CKG’s share position in Gunpoiunt Exploration (GUN.v), exec chair Randy Reifel’s
other gig which has CGK as majority shareholder. The line item is “unrealized gain on
marketable securities” and is theoretical in nature, as CKG isn’t about to sell its position. It also
gives me a window to mention the company holds a tranche of GUN.v shares, that count as a
minor asset before moving on .
Financial expenses
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
-0.2
-0.4
-0.6
-0.8
-1
10
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3
C$m
other
unrealized gain on mkt sec
forex gain
fin cost
fin income
source: company filings
Assets and liabilities are a better look at the company. First the liabilities chart (below right) and
again, the Y-axis shows how small they are compared to assets. The only lump is a tax liability
that only matters if and when CKG starts production, there’s no debt to talk of and is a near-
optimum position. As for assets (below left), we see the effect on cash of the Sprott/Sun Valley
cash injection in mid 2020, then fixed asset jumped by $45m when Alderley was incorporated
(fwiw it’s booked as an intangible, which makes sense).
CKG.v: Assets
200
180
160
140
120
100
80
60
40
20
0
As current liabilities are so low, the cash position is basically the working cap position so rather
than two charts, we go with one (below left) and add in estimates for the five quarters to end
2022. CEO Pangbourne has stated that PFS aside, they should keep burn to around $10m per
year and that means its current $30m+ will be good to get it long into 2023 and probably even
get the company to full feasibility study level. Combined with its parsimonious burn rate, CGK
brings the good advantage to the table here and means the last chart of shares out isn’t going
81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3
$m CKG.v: Liabilities per qtr
11
fixed 10
other current 9
cash 8
7
6
5
4
3
2
1
0
source: company filings
81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3
source: company filings
srallod
fo
snoillim
LT liabs
current liabs

to change much. We’re at 67.4m and with 40% of those in four tight hands, the tight float
means that CGK can run hard and fast if it catches a bid.
50 CGK.v: Working Capital per qtr
45
40
35
30
25
20
15
10
5
0
That’s enough financials, you should have the picture by now. CKG’s financials are the least of
its concerns, which provides a strong backbone to the company and gives us on the outside
one less thing to worry about. Time to wrap this up.
Discussion and conclusion
The plan was to cover this company’s background in four or five pages, so that didn’t work.
However, as the write-up developed I resigned myself to covering much of the same territory
seen in no end of other analyses on this stock. Therefore, we now know:
 I’m not very original
 Chesapeake Gold is trying a new strategy on its Metates project
 It wants to heap-leach its gold sulphide mineralization to cut capex
 The process is known in the copper sector, but is unproven in the gold space
 CKG has brought in the right team and has solid financial support
 Early test results are promising, but we’ll know more later this year
 If things go well with met results and the subsequent Pre-Feas, the stock should re-rate
However back on paragraph one, we mentioned that the reason to propose Chesapeake Gold
as a potential trade today is more straightforward and about market timing. For that, we repeat
this table from early in the show:
No matter whether the new met technology works or not, the new plan is based around mining
around 3.4m oz gold from the total 5.32m oz M+I resource over 31 years. CEO Pangbourne’s
strategy to unlock Metates is good and on a personal level I like it, but it has several hurdles
and milestones to meet in the next 12 to 24 months (and even then, be sure that detractors will
detract and tell you it won’t work and no matter the price deck, its stock is over-valued, even as
it moves into commercial production).
No, the reason to consider CKG as a trade today is this:
C$206.8m market cap / 19.8m oz gold = C$10.44/oz Au in situ
11
81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 tse12q4 tse22q1 tse22q2 tse22q3 tse22q4
source company filings
srallod
fo
snoillim
100 CGK.v: Shares Out
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 12q3
source: company filings
serahs
fo
snoillim

Or if you prefer, add in the silver on a gold/silver ratio of 80:1 and convert to US Dollars:
U$166.4m market cap / 26.58m oz gold equivalent = C$6.26/oz AuEq in situ
Or if you prefer, include its cash treasury, calculate on EV and assume only 90% of the ounces
are recoverable in an autoclave for another metric, but at some point we are merely adding
another dancing angel to the pinhead. With gold at U$1,900/oz, the metrics of the old, larger
project once again become viable and even with its project-level thrust to move forward on the
high-grading intrusive using new heap leach technology for sulphide gold deposits and all the
long-term met testing it’s doing, CKG isn’t oblivious to that fact in its own literature. This slide is
from its latest corporate presentation and while the exact numbers tend to move around, it’s a
fair enough comparative:
There’s no point in making a direct comparison with the Osisko’s and Sabina’s of this world,
neither am I particularly convinced about using Orezone (ORE.v) as a like-for-like, as that one is
now under full construction and should be a mine soon (the political and management risk
factors are up to you on ORE, though). However, Belo Sun (BSX.to) is a fair peer to Metates
these days with its own local challenges but a big, low-grading gold deposit with robust
economics that would work well if were allowed to become a mine tomorrow. There’s no
particular reason why Volta Grande is valued at 3X Metates and if the current environment for
gold prices continues, or even levels out at today’s U$1,900/oz, it’s only a matter of time before
CKG re-rates on its in-situ count alone.
This is the trade proposal, there’s no need to wait until mid-2022 and met results. Above and
beyond the prospect of the current 15ktpd mine plan dependent on the upcoming met results,
Metates can still become a 850,000 oz/annum mine built by a Newcrest, a Zijin or a Shandong
(or even a B2Gold) if the cycle completes and bulk mine operations become The Thing again
(and hey, don’t discount it, after all Loon Pants come back a few years ago).
Importantly, CKG has form on moving with the gold price:
12

Agreed that the new interest caused when Eric Sprott bought in mid-2020 would have
turbocharged that move, but back in 2019 CGK rallied with gold. More relevant however was
the 2016 move, the year gold rallied to highs and CGK began by lagging the field, then caught
up and moved higher as it delivered its own news. ]You’ll also note that CKG goes through
protracted periods of market disinterest and low trading levels, but when traded volume picks
up its beta to peers is impressive. That reminds me a lot of today’s market:
This desk knows that picking a bottom in a stock like CKG is a fool’s errand and the only way an
analysis note such as can nail the lowest prices is by pure luck. The buyer of CKG shouldn’t fret
the pennies, instead the trade set-up is for those of you who are looking for that old cliché,
“leverage to gold”. In the medium-term, the stock could indeed build up a head of steam as we
approach those met result milestone moments and for those willing to add the risk factors of
time and news, buying now and holding six months or so would return a winning trade if gold
behaves and than Alan Pangbourne is proven right about his theory. However let’s be clear, this
is not a subtle trade idea or attempt to fine-tune market momentum:
The ongoing test work as outlined above is important context, CKG is no longer a dead-end
stock and the activity can generate its own momentum come the time, but the reason to get on
now is plain and simple, its leverage to the gold price as it pushes higher. Favourable met
results will of course reflect in the stock price come the day, but there’s every reason to expect
CKG to move higher before then and no need to wait any longer. There’s nothing special, deep
or subtle about this proposed trade, this isn’t one a Special Situations as identified in Amerigo
(ARG.to), nor is it the theory of purchasing a best-in-category company story, such as my
recent foray into the only silver stock on the list, Discovery Silver (DSV.v). The proposal is to
buy a dirt cheap gold stock on the asymmetric risk/reward it offers this weekend, thanks to the
way gold has moved and it has not. Then I hang on during this gold bull run and sell it down
the line for a trading profit, no more no less. I am a buyer of a moderate position in
Chesapeake Gold (CKG.v) in the days ahead and will add it to the ‘Stocks to Follow’
list as from next weekend. There’s no set price target and any decision to hold through into
its met results period will depend on its performance in the next few weeks.
13

Stocks to Follow
Ten of our thirteen open positions recorded gains last week, with the best percentage moves
from Minera IRL (MIRL.cse up 21.1%...that’s two cents) and Strategic Metals (SMD.v up
10.4%) and the best money move Top Pick Rio2 Ltd (RIO.v up 8.3%), though we need to point
out that there’s still no sign of a breakout from that trade. There were no stocks left unchanged
on the week, which leaves three losers (ARG.to, MUX, PA.v) or four if you included the now
closed trade in Copper Mountain (CMMC.to), which sadly did what we expected it to do after its
mediocre 2022 guidance was released (see IKN664-2 out Monday evening). In general terms,
our Stocks to Follow portfolio kept track with the benchmark GDXJ on the week, which also
meant it under-performed the big winners in the sector. The GDXJ went up 3.2% and the GDX
up 6.4% as the large caps stole the show.
With the exit of Copper Mountain (CMMC.to) we are left with 13 active trades, two under our
self-imposed limit of open positions at any given time. Six are in the green, six in the red and
one unchanged on its cost average since inception.
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$0.53 152.4% $1.14 tgt Aug'20, #1 idea
Rio2 Ltd. RIO.v STR BUY C$0.83 22-Apr-18 C$0.65 -21.7% $1.30 1st tgt, building now
Recommended stocks (in order of preference)
Amerigo Res ARG.to STR BUY C$1.36 12-Dec-21 C$1.56 14.7% 2022 Cu bet, mgmt change?
QC Copper&Gold QCCU.v STR BUY C$0.275 25-Apr-21 C$0.275 0.0% Now drilling. Easy hold
Discovery Silver DSV.v STR BUY C$1.77 24-Oct-21 C$1.78 0.6% Serious Ag play, 1st tgt $2.75
McEwen Mining MUX BUY U$0.89 2-Jan-22 U$0.815 -8.4% 1q22 trade, turnaround story
Aldebaran Res. ALDE.v SPEC BUY C$0.72 16-May-21 C$1.02 41.7% Waiting on drill assays
Trilogy Metals TMQ BUY U$1.84 15-Sep-19 U$1.515 -17.7% S32 suitor, stalled
Strategic Metals SMD.v BUY C$0.42 31-Jan-21 C$0.37 -11.9% Canada land bet+Zn in FY22
Altiplano Metals APN.v SPEC BUY C$0.31 17-Sep-21 C$0.325 4.8% Cheap entry, 1q22 re-rate
Palamina Corp PA.v SPEC BUY C$0.295 21-Nov-21 C$0.135 -54.2% Au expl in S.Peru, early dusters
Minera IRL MIRL.cse hold C$0.195 22-Jul-12 C$0.095 -51.3% CEO change will move stock
Long-term non-mining hold
Mene Inc. MENE.v adding C$0.67 6-Dec-20 C$0.69 3.0% LT bet, adding slowly
Closed in 2022 closed close price
Great Bear Res GBR.v Jan'22 C$15.83 26-Aug-20 C$28.58 80.5% Bought out by Kinross, print
Copper Mountain CMMC.to Jan'22 C$3.40 18-Jun-21 C$3.78 15.9% Sold 1/2 position in rebalance
Copper Mountain CMMC.to Feb'22 C$3.40 18-Jun-21 C$3.70 8.8% Sold rest on FY22 guidance
2015 to 2021 annual closed positions in appendices below, 2009 to 2014 closed positions in editions IKN553 or earlier
Now for notes on a few of our covered stocks:
Copper Mountain (CMMC.to): POSITION CLOSED: As per the decision Monday evening in
IKN664-2, the remnant 50% of my CMMC went the next day and as it turned out, that was the
right decision.
14

In the near-term, at least. A sad end to what should have been a much better trade and while
both lines in “Closed in 2022” are green they aren’t much of a win, considering.
QC Copper & Gold (QCCU.v): ADDED. I got some 28c, the NR came, then 30c showed and
just when it started to look like a breakout, it wasn’t. QCCU dropped back as the week wore got
to Friday AGAIN, which is beginning to get annoying (because I’m now fully bought ).
However, this time I can’t help but feel part of the problem is the company itself, as its NR had
strongly positive news presented in a wishy-washy and confusing way.
Aldebaran Resources (ALDE.v): We finally got the first drill hole assay from ALDE and its
2022 program, with Tuesday’s “QDM-21-43 returned an upper zone of 707.1 m of 0.51% CuEq”
the type of long and moderately grading return we’d expect from Altar. The company now has
four rigs on site, three concentrating on the company’s primary “Radio Porphyry” zone and one
checking out other areas of the large Altar deposit, so last week’s NR should be the first of a
series. And about time, too.
The market wasn’t blown away by the NR, perhaps it’s been spoiled by Josemaria and Filo de
Sol to the North of the same San Juan province of Argentina. However this was a good first hit
and means the deposit is set for resource expansion. The stock rose in a mostly negative week
for junior copper stories (see below) and its moderately positive price action looked about right
to me. We remind readers that at some point, ALDE will need to top up on treasury in the near-
ish future, we also remind that I may take profits on this trade given a price rise and liquidity
window.
Rio2 Ltd (RIO.v): One good and one slightly annoying snippet from Rio2. In good news,
earth moving works have begun at the Fenix site to delineate the tailings facility, the first step
of many at the mine but good to see activity (I’ve seen photos but have been asked not to
reproduce). As for the slightly annoying, it’s not that surprising to hear but we should now
expect the EIA approval to show in May, instead of the previously scheduled March. The
company is at pains to stress that there’s nothing “wrong” and the process delay isn’t anything
to do with the change of President on March 11th, either. The issue is plain vanilla Covid delays
to bureaucracy.
Palamina Corp (PA.v): My meeting with CEO Thomson was suspended at the last minute due
to Covid-19 arriving at the company’s Peru office, so with luck and as long as everyone tests
negative next week it should happen then.
McEwen Mining (MUX): There was encouraging company news, as McEwen Copper has
hired local talent (2) and rather than re-write the concise NR, here’s the info:
“…Michael Meding has joined as Vice President of Andes Corporacion Minera SA. in
Argentina. Mr. Meding is accountable for the overall direction and management of the
Los Azules copper project in San Juan. He will play a significant role in taking McEwen
Copper through its next phases of technical studies, upcoming IPO, and development
as a global model for environmentally and socially responsible green mining.
Mr. Meding has over 20 years of international experience, primarily with major mining
companies such as Barrick Gold and Trafigura, including extensive experience with
project development and operations in Argentina. While at Barrick Gold's Veladero
mine in Argentina, he played a key role in the turnaround, extension of the mine life,
and subsequent strategic partnering with Shandong Gold. Mr. Meding is trilingual
(Spanish-English-German) and holds an MBA from Indiana University in Pennsylvania
and an MBA from the Leipzig Graduate School of Management in Germany.
That’s the right type of hire at the right time. However, the lack of news on the closure of the
second part of the McEwen Copper financing weighs on the story and the market reaction to
the previous Friday evening’s bought deal announcement was all-too predictable. I’m toughing
this trade out and holding, at some point it will spring.
Minera Alamos (MAI.v): I’m not sure whether this link (3) will allow direct access, if not
15

registry is free. Either way, it takes you to the presentation made by Doug Ramshaw of Minera
Alamos on Wednesday 16th and this one is worth your time, as the company is now clearly
shifting gears on its corporate strategy and outlook. While we are still waiting on the
declaration of commercial production at Santana, this presentation made a lot more of the
company pipeline with emphasis on the next project in-line, Cerro de Oro, as well as several
mentions of La Fortuna further down the line. This change is most welcome, firstly for the
implied confidence that Santana is now ramping up according to plan (or ‘the adapted plan’, see
last week’s ‘Market Watching’ section on MAI for more) and secondly it’s high time MAI
reminded its followers and educated its non-followers about its strong pipeline of Mexico with
good expansion potential). Meanwhile, President Ramshaw continues to put his money where
his mouth is and buy 50k blocks of his own shares on the open market, he’s now up to 6.43m
shares held and has added 250k in February alone. It’s impossible to think of a boss who is
better aligned with his shareholder roster.
The Copper Basket
After seven weeks of 2022, The Copper Basket shows a loss of 4.70% to level stakes:
company ticker price 1/1/22 Shares out Market Cap current pps gain/loss%
1 Copper Mtn CMMC.to 3.42 210.166 733.48 3.49 2.0%
2 Marimaca Cop MARI.to 3.77 88.028 376.76 4.28 13.5%
3 Oroco Res OCO.v 2.04 192.689 364.18 1.89 -7.4%
4 Western Copper WRN.to 2.00 151.426 314.97 2.08 4.0%
5 Nevada Copper NCU.to 0.71 448.437 313.91 0.70 -1.4%
6 Hot Chili HCH.v 1.53 109.223 154.00 1.41 -7.8%
7 Meridian Min MNO.v 1.18 153.735 138.36 0.90 -23.7%
8 Aldebaran Res. ALDE.v 0.84 114.495 116.78 1.02 21.4%
9 Regulus Res. REG.v 1.06 101.845 102.86 1.01 -4.7%
10 Kutcho Copper KC.v 0.88 103.94 84.19 0.81 -8.0%
11 C3 Metals CCCM.v 0.16 645.379 58.08 0.09 -43.8%
12 Element 29 Res ECU.v 0.58 79.24 49.13 0.62 6.9%
13 Doré Copper DCMC.v 0.79 66.123 48.93 0.74 -6.3%
14 QC Copper QCCU.v 0.34 129.06 35.49 0.275 -19.1%
15 Coast Copper COCO.v 0.13 41.335 5.58 0.135 3.8%
NB: All stocks in CAD$ Portfolio avg -4.70%
Last week our Copper Basket of junior and exploreco copper companies did what it’s set out to
do and performed as a higher-beta version of the larger copper producers, as seen in this
comparative chart:
The above is a bit busy, but you should see how the main PM ETF (GDX) out-performed
everything, thanks to the strong game from Tier 1 PM stocks such as Barrick, Agnico etc (see
16

the Producer Basket, below). Then gold and copper metals were both positive but copper stocks
(as seen by COPX) didn’t enjoy the same lift as the PM
players, finishing the week modestly negative and The Copper Basket 2022, weekly evolution
4%
clearly dragged down by the hard times in the broad 2%
market (S&P500 example). As seen in our tracking chart 0%
(right), our juniors group average lost 3% with just four -2%
winners on the list (MARI.to, WRN.to, ALDE.v, QCCU.v) -4%
-6%
and one unchanged stock (COCO.v). That leaves ten
-8%
week-over-week losers, with the biggest drops suffered
-10%
by C3 Metals (CCCM.v down 21.7%) and Copper
Mountain (CMMC.to down 16.1%).
With the near-term look at copper-the-metal covered in the first chart, today’s dedicated metals
chart widens its perspective to take in the last six months. We’ve seen three or four attempts to
break away from its trading range (and a couple of them got me unduly excited, I’m the first to
admit) but we also need to recognize the improving trend of copper prices in the period. Aside
the volatility, there’s a stealth improvement in the baseline prices for copper from perhaps
U$4.20/lb in 3q21 to the baseline that’s arguably U$4.50/lb today. That 30c/lb uptrend may not
sound like much, but it represents a 7.1% increase and has kept copper ahead of the rate of
inflation in the USD’s home country.
For our weekend commentary on the macro metals market we again dial up Andy Home of
Reuters, who went into the weeds of the LME warehousing system (for all metals, not just
copper) in his column “LME warehousers slash capacity as metal stocks drain away” (4). As
always with an Andy Home note, linking through and reading the while thing is highly
recommended for fellow metals market wonks, but for normal people the interesting part
comes towards the end, when he explains how dwindling stocks in both LME “Official” and
“Shadow” stocks point to rising demand and the likelihood of future supply deficits:
It's worth noting that all the core LME base metals have been trading in backwardation,
the cash premium spiking to extreme levels in the case of tin and copper at times last
year.
Yet even these unprecedented cash premiums haven't attracted enough metal onto
LME warrant to halt the overall slide in visible stocks. With ready-to-warrant shadow
stocks almost gone in many cases, exchange warehousers are directly competing for
units with physical buyers, who have been paying up record premiums to get metal.
Most analysts expect some easing of supply and logistics pressures this year, which
may see some replenishment of depleted LME inventories.
But the longer-term prognosis is that the world needs more metals such as copper,
aluminium and nickel to enable decarbonisation.
Producers' ability to deliver that extra metal while simultaneously cutting their own
carbon emissions looks highly questionable right now.
Supply deficits could become the new norm of the green revolution, which means less
metal heading to terminal markets such as the LME.
We’ve seen evidence of this already, for example with Codelco securing high premiums for its
2022 supply contracts to Asia and Europe. With the “real market” willing to pay higher “real
17
ts1naJ ht9naJ ht61 dr32 ht03 ht6bef ht31 ht02
source: IKN calcs

prices” for its tonne of copper, if The LME wants to remain relevant as a reference point for
world copper prices it will need to pay up and get more tonnes into its own stocks.
On the subject of stocks, we move to the regular weekly look at copper inventories:
 World stocks continued to benefit from the classic SHFE cycle and rose last week, up
26,280 metric tonnes (mt) to close this weekend at 278,546mt.
 At the Shanghai SHFE, inflows came to a strong 29,728mt and closed Friday at
136,300mt. That’s the second week of the traditional timing on re-stocks at the SHFE,
as end-users typically have what they need for the New Year already in stock (and new
physical deliveries have to go somewhere). The SHFE-specific chart below tracks the
inflows compared to previous years and while off to a healthy start, the game is all
about where the squiggly line tops out.
 The LME saw a minor loss of just 25mt overall, its stocks closing Friday at 74,075mt
However, inside the LME numbers we did see the same type of tilt away from European
located stocks (down 4,600mt) and toward The USA (New Orleans warehouses seen
net 4,725mt inflow).
 The Comex saw a drop for once, down 3,423mt and closing at 68,171mt. We’ve seen a
couple of weeks of small outflows, but this is an acceleration and something different,
so eyes on the next week’s data to see if it continues.
Here’s the dedicated SHFE inventory chart, which shows the two big ticks on the right as stocks
replenish at the right time of year. The question remains as to how high it can go and for that,
only time will tell.
Shanghai Futures Exchange Warehouse Stocks, 2014 to date
400000
350000
300000
250000
200000
150000
100000
50000
0
Now for notes on a few of the stocks in our 2022 basket:
Marimaca Copper (MARI.to): Marimaca made me look dumb, which admittedly isn’t difficult
but when an author sums up a company’s prospects in 2022 with, “…the right mix for a
successful trade, perhaps starting in the second half of this year” and then the stock does this
the next week…
18
31'13ceD ht9 ht81 ht72 ht5tco ht41 dn22 dr3yam ht21 ht02 ht92 ht7bef ht71 ht62 ht4peS ht31 ht92 ht9 ht81 ht72 ht5von ht41 ht52 ht01 ht91 ht82 ht6naJ ht71 ht62 ht4gua ht31 dn22 202ts1ram ht01 ht91 ht72 0202ht6ced ht41 ht52 1202ht4luj ht21 ts12 ht03
Mt Cu
|
source: Cochilco

…the stupid is hard to hide. MARI picked up bids on its recent news when I thought it would
tread water and was the best performing stock of our 15 last week, by some distance.
C3 Metals (CCCM.v): Your author made his
point on the blog last week (5):
The recent selling and price drop began the
very day the first 25% of shares awarded to the
vendor of CCCM’s Jasperoide property,
Hochschild (HOC.L), came out of escrow and if
they are happy to dump over 6m shares at
around 10c apiece average, it’s a message to
heed. In around one month’s time, the taker’s
of that C$19m bought deal get their opportunity
to add to trading liquidity.
The Producer Basket
After seven weeks of 2022, the Producer Basket shows a gain of 7.17% to level stakes:
company ticker price 1/1/22 Shares out MktCap(U$Bn) current pps gain/loss%
1 Newmont NEM 62.02 797.44 53.96 67.67 9.1%
2 Barrick GOLD 19.00 1779 41.17 23.14 21.8%
3 Franco-Nevada FNV 138.29 191.192 28.25 147.77 6.9%
4 Agnico Eagle AEM 53.14 453.5 24.91 54.92 3.3%
5 Wheaton PM WPM 42.93 450.3 19.59 43.50 1.3%
6 Gold Fields GFI 10.99 887.72 11.61 13.08 19.0%
7 Kinross Gold KGC 5.81 1320 7.68 5.82 0.2%
8 B2Gold BTG 3.93 1055.6 4.34 4.11 4.6%
9 Alamos Gold AGI 7.69 392.503 2.88 7.34 -4.6%
10 Sandstorm SAND 6.20 191.4 1.31 6.82 10.0%
All prices and stock quotes in U$ Port. avg 7.17%
The rich get richer and the poor get… a bit richer. To get the paperwork out the way, all ten of
our Producer Basket stocks returned week-over-week gains, what you’d expect in the market
for gold we saw last week. However, there were clear out-performers in the subsets:
 Tier One gold producers did best of all. The flagship last week was Barrick (GOLD up
11.9%) on the back of its strong 2021 year-end financials and 2022 guidance, but
percentage-wise Gold Fields (GFI up 14.7%) did even better, Agnico (AEM up 10.4%)
also kept up with the pace and even market top dog Newmont (NEM up 6.0%) was no
slouch.
 Behind those came the streamer/royalty plays, with Franco-Nevada (FNV up 4.0%)
Wheaton (WPM up 3.6%) and the Sandstorm (SAND up 5.9%) our examples.
Supposedly more solid as business models and less prone to downside disruption, you’d
expect them to under-perform in an upside spike moment, too.
 Finally, Tier 2 producers stocks didn’t fare as well with Kinross (KGC up 1.9%) B2Gold
(BTG up 4.6%) and Alamos (AGI up 1.9%) our examples. There may have been
disparate and coincidental reasons (e.g. Kinross put in a mediocre 4q21) but overall,
this fits in with the way GDXJ only rose 3.2% on the week compared to GDX’s +6.4%.
Taking broad brushstrokes at the market week, the move in PM stocks last week was top-down
19

and fuelled by bigger money entering the sector. As for the overall basket performance, we
managed to keep pace with a red-hot GDX and while the approx 3% lag to the benchmark
hasn’t disappeared, that was okay for a list that set up to be more defensive in 2022. A long
way to go yet.
The 2022 Producer Basket: Weekly performance and
14% comparative to GDX control
12%
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
Barrick Gold (GOLD): Last week’s note previewing the Barrick (GOLD) 4q21 Conference Call
ended with me mentioning that while Tier 1 stocks aren’t the house focus, I’ll be tuning into
this one on Wednesday. Potentially spicy.” That was the case, not least for the results and
forward guidance that did this to the stock (we compare with GDX, right). That was a serious
move, driven by several factors in a very positive earnings report. Point to the dividend increase
(up to 10c/qtr), the 2022 production guidance or the constant references to financial prudence,
but perhaps the biggest plus was that GOLD forecasts its 2022 costs up a reasonable 5%
compared to last year, but then guides for a drop in cash costs for 2023 and beyond (when
Graham Shuttleworth was quizzed on that in the
ConfCall, he gave solid replies).
However, the quote from the ConfCall that stuck
most with me came near the end when CEO Mark
Bristow fielded yet another inquiry on corporate
M&A plans. We already assumed he’d play the “we
go organic” and the “we don’t overpay for assets”
cards during the day and sure enough that
happened, but this reply to analyst Adam
Josephson of KeyBanc Capital went further and put
larger corporate policy into the mix (from the
Motley Fool transcript here (6), with slight editing
and brushing):
“I have been through this exact same situation back in 2012 and 2013, where every
time I stood up on the podium, people are banging the table saying, "You need to
grow." And everyone was missing growth and everyone is running around buying
anything that could. And we and Randgold, if you plot the Randgold share price, it
lagged for a while until such time as these big deals didn't work because the gold price
softened. And this way, we've got two ways to deal with that, inflation and the gold
price cycle. And it's interesting from 2013, Randgold left the rest of the industry
because we hadn't done any value-disruptive deal and we outperformed the industry
all the way til the deal with Barrick in 2019.
“And we never, you never close that margin. …because again, the level of analysis in
the gold industry at these sort of gold prices is the gold price is always proving the
analysts wrong because it's moving in different ways and no one gets the gold price
right. And so for me, there are lots of different influences on gold stocks at this time of
the cycle.
“And it's worth going back and plotting equities and the gold price started 2005, it's a
very interesting graph to look at. And again, we at Barrick are really long term, our
focus is long-term value creation. It always has been. And so when we look at how we
20
ts1naJ ht9naJ ht61 dr32 ht03 ht6bef ht31 ht02
The 2022 Producer Basket: Percentage difference
between GDX benchmark & basket (negative = IKN ahead) 6.0%
5.0%
ikn
4.0%
gdx control
3.0%
2.0%
1.0%
0.0%
source: NYSE, IKN Calcs
-1.0%
Jan1st Jan9th 16th 23rd 30th feb6th 13th 20th
source: IKN calcs, NYSE data

manage and communicate, we're looking at the long term.
“…my life is invested in Barrick, I'm fully committed shareholder. And so most of my, in
fact all my colleagues and the executive team, we're all owners. And in fact, I don't
know if you know this, but you have to have five times your salary in equity to be part
of our executive team.”
A reminder that, no matter what size the mining company, corporate culture is set from the
board and is a direct reflection of the thought processes of those in charge. And while Mark
Bristow talks a good book, a look at Barrick compared with peers and so-forth since it
announced its buyout of Randgold (we go from January 14th, 2019)…
…shows that for most of that time and with a clear exception of the over-buying after the
Covid-19 lockdown slump (when Fed went “Whatever It Takes), Barrick has tracked the fate of
the GDX very closely and it if weren’t for the last week of action, would still be “market
perform” at best. Also that FNV (orange line) and Newmont (blue line) still have daylight
between them and Barrick, even after last week.
However and to address Bristow’s argument, it is fair to add Agnico (AEM) to the mix and see
how that one has under-performed, particularly in the last quarter as its merger with Kirkland
Lake went through. It’s not just Great Bear, Barrick was reportedly the under-bidder on that
deal as well.
Newmont (NEM): With NEM set to report its quarter this Thursday February 24th, the only
point I want to make here is the same one I made on the blog Wednesday evening (7), while
digesting Barrick’s (GOLD) impressive market day. The title was…
“Starting tomorrow, a one-week pair trade for hedge funds: Long Newmont/Short Barrick”
…the text was…
It's not for financial weaklings and grunts like me though, this is a bigboy trade. What
with Barrick (GOLD) beating today on all metrics and flying, and with Newmont (NEM)
these days sharing all of Nevada operations and Pueblo Viejo with Barrick, as GOLD
beat today then NEM will beat on Feb 24th when it reports:
…and rather than being cute and re-phrasing, you
get the simple copy-paste. As for the start of the
theoretical pair trade (chart right) indeed, once
Barrick’s most impressive Wednesday was done,
NEM started to take a small advantage from its
main market rival and peer with Friday’s close
putting NEM up almost 2% over the two days
(with exceptionally high NEM volume into the
close Thursday). This type of hedged pair trade
runs on thin margins and there may even have
21

been enough for some money to have creamed profits already, but the house call and the full
trade won’t be decided until Thursday. The market is starting to expect a beat from NEM so
factor that in, too.
Agnico Eagle (AEM): Also on deck is AEM’s 4q21 financials, also due out on Thursday
February 24th, which will feature plenty of backslapping about the recent consummation of the
KL merger. As 4q21 is the final quarter of Old-AEM, what most matters in this YE and
Conference Call will be forward guidance and, what with the newness of the deal and AEM’s
typical style, I assume with under-promise and if so, we may see AEM weak through earnings.
B2Gold (BTG) (BTO.to): One other worth watching is B2Gold (BTO.to) (BTG) with its 4q21
financial due reported “…after the North American markets close on Tuesday February 22,
2022” (to quote its NR). That means a potential market move at the open Wednesday, but later
there’s definitely ConfCall at 1pm ET (10am Pacific). No guesses on how The Clive’s gig gets
through earnings, though.
The TinyCaps List
After seven weeks of 2022, the TinyCaps show a gain of xxxx% to level stakes:
company ticker price 1/1/22 Shares out Mkt Cap current pps gain/loss%
Aurelius Min AUL.v 0.24 37.134 11.70 0.315 31.3%
Golden Pursuit GDP.v 0.13 34.638 4.50 0.13 0.0%
Infield Min INFD.v 0.06 48.276 2.17 0.045 -25.0%
Kingfisher Met KFR.v 0.30 84.57 21.14 0.25 -16.7%
Latin Metals LMS.v 0.12 57.296 8.31 0.145 20.8%
Manitou Gold MTU.v 0.06 344.47 20.67 0.06 0.0%
Melkior Res MKR.v 0.295 24.011 7.92 0.33 11.9%
Precipitate Gold PRG.v 0.105 129.322 15.52 0.12 14.3%
Signature Res SGU.v 0.07 238.4 17.88 0.075 7.1%
Winshear Gold WINS.v 0.08 61.585 4.93 0.08 0.0%
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.
It was nowhere near as dynamic as in the larger 14% Tiny Dogs, 2021 weekly tracker
cap stocks, but the TinyCaps sub-sector also had 12%
a net positive week and our basket average 10%
added a little over 2%, Of our ten charges, three 8%
were week-over-week losers (INFD.v, LMS.v, 6%
WINS.v), two were unchanged (GDP.v, PRG.v) 4%
and five were winners (AUL.v, KFR.v, MTU.v, 2%
MKR.v, SGU.v). the biggest winners were 0%
Signature (SGU.v up 25.0%) and Aurelius (AUL.v -2%
22 dn2naJ ht9
naJ
ht61naJ dr32 ht03 ht6bef ht31 ht02
source: IKN calcs, TSX data

up 14.6%), the biggest losers Infield (INFD.v down 25%).
Infield Minerals (INFD.v): Just two weeks ago in IKN663 we wrote “Signature Resources
(SGU.v) and Infield Minerals (INFD.v) are two
companies that have done precisely nothing in the first
five weeks of 2022” and last week they both moved by
significant amounts, albeit in opposite directions. Our
first subject INFD dropped by 25.0% and likely
suffered from a medium-sized seller who, for their
own reasons, couldn’t wait any longer and liquidated
at the only available price on Monday. There was no
reason for this sale, but the heavy dive suffered by
INMFD since its IPO in mid-2021 still weighs on its
price and corporate outlook
Signature Resources (SGU.v): So moving swiftly on from the big loser, the big winner from
our list last week was SGU which did this (chart right), with a 1m block trade first thing Monday
morning and a smattering of trades on Tuesday, the day SGU announced (8) a $1m financing,
part flow-through shares priced at 8c and part normal share offering at 6c. The placement
should fill, as the same NR told us, “Over half of the Offering is expected to be subscribed for
by members of the Company’s board of directors and management.” As we noted on January
2nd in the brief SGU biog while presenting our new 2022 list, there are several “usual suspect”
funds behind SGU that include Crescat, Sprott and
Willem Middelkoop’s Commodity Discovery Fund.
There will be cash and social media hype and
presence to jig this one along, the precise reason
we wanted to include it in the first place and watch
its progress. Also, a separate NR out February 5th
(9) told us the company was now aiming to put
together a maiden 43-101 compliant resource on its
flagship Lingman Lake project, which makes sense
as until they have a 43-101 their promotion angles
are restricted. Lingman Lake has a high grade
historic resource of 234,000 oz gold grading just
under 7 g/t and the company literature says its
recent work “indicates higher grade potential.” Vein width is the issue, however.
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’s possible in the future
I may buy shares in one or several of these stocks, at the moment both my opinion and wallet aretrictly neutral.
Regional politics
Chile: The limits of the Constitutional Convention (on mining and other matters)
We repeat: No matter how much the scaremongers of this world would want you to believe to
the contrary, Chile is not about to go Commie. We begin with 81-year-old Sergio Bitar, one of
the elders of the Chilean left wing political scene, who in his time has been Senator, member of
the House of Representatives, Minister of Mines (under the deposed Allende government in
1973) and Minister of Public Works in the first Michelle Bachelet government until 2011. In that
final role, he oversaw one of the major tendering processes for mining concessions to private
companies (one more time, don’t confuse “left wing” with “Commie” in Chile). His credentials
set, now the commentary and last week Bitar was asked about the initiatives and projects the
committee stage of Chile’s Constitutional Convention and will now get debate, possible
modification and eventual vote in the main 155 seat convention (that began its formal process
23

last week). In Bitar’s view, there was very little chance of the projects passing with the
necessary two-thirds majority to become part of the draft constitution, calling them “a delirious
return to the past”, and “ignorant of history events” (10). In this desk’s opinion, Bitar’s position
is in tune with the majority of Chile’s left wing (let alone the right), with this extended quote
making his point:
“…please let us be realistic, aware of what is possible and what is not possible. We
can increase the added value of minerals exported. Move quickly to green copper,
green hydrogen, increase solar power, even possibly a state-managed company. We
must advance in the desalinization of water, a crucial issue for all the regions of Chile”
As for the radical proposals now set for debate in the full Constitutional Convention (CC), the
votes garnered “…in some cases are a majority, but fortunately there are not sufficient votes
yet for those more radical, infantile positions.” This harks back to the other law project on the
CC books, which is set to limit the time concessions can be held by any given company without
development in order to stop so-called concession squatting, as well as raising the annual
payments made by companies to the State. The law projects carrying these measures will be
debated at the same time as the radical nationalization proposals and are set to be the
compromise required.
To widen the scope somewhat, this Reuters note published on the first day of the main CC
assembly this week (11) gives context:
Embryonic plans to nationalize mining, the creation of a one-chamber Congress, water
rights, and protections for indigenous territories are some of the more edgy motions the
assembly will discuss and vote on in over 20 plenary sessions.
"In this period we are going to see what is really going to remain in the proposed
Constitution," said constituent assembly president Maria Elisa Quinteros, noting that
the text would face a nationwide referendum planned for September.
It reported on early motions set for debate and approval, indeed this weekend we already have
a few of them voted and approved, such as the generalized motion that Chile be reclassified as
a “Regional and Plurinational State” (which, in theory, would grant more powers to regional
authorities and take it away from Santiago), but the first days were always going to see the
most general items of any new constitution, the nitty-gritty comes later. Here’s another
segment of the Reuters note:
The proposals will be debated in coming months and will need approval by two-thirds
of delegates, some 103 votes. If approved they would face a process of modifications
before a second definitive vote to be included in the final text. If rejected they would go
back to the commission to be revised or discarded.
The potential for sharp shifts in the country has caused some alarm among
conservatives, though Quinteros sought to allay fears, saying there had been lots of
"misinformation" around the process and that the motions were at an early stage.
But those fears have seen some loss of support for the process, with a survey from
private pollster Cadem showing that the proportion of people who currently intended to
vote to approve the new Constitution had fallen to 47% from 56%.
That final point is one we on the outside should consider carefully. Members of the main CC
know full well that if they “go radical” they lose popular support, then come the day of the
national referendum their proposed constitution gets voted down. The structure of the CC
process means that we would always see the more radical proposals tabled early, but as the
process continues cooler heads prevail. Indeed, this method means that no matter how radical,
there are no interest groups that can complain about being ignored once the CC is done with its
work. They can moan about their pet projects such as Mining Nationalization being rejected,
but that’s a different complaint.
Finally, in separate Chilean mining news there’s more than a whiff of another corruption scandal
around the outgoing Piñera government and its connections in the mining industry. The
incoming Minister of Mining Marcela Hernando last week (12) went to the courts and
successfully obtained an injunction to stop the sale by tender of buildings owned by Chile’s
24

State mining company, ENAMI. The tendering process was supposed to close and results given
on March 10th, literally the last day of the Piñera government before the handover to Gabriel
Boris on March 11th. So far odd, but more telling is how the prices for the tendering process
were apparently set at around 20% of the going rate for the buildings in question. The sales
process is now suspended by a judge an injunction, we may find out more about the reasons
behind the odd-looking sale once the new ministerial team takes over.
Peru: The Anibal Torres cabinet seeks Congressional approval and another Vice-
Minister resigns
Further to the extended note of last weekend that tried to condense the complex and crazy
current political turmoil in Peru into something relevant for FDI and mining sector investors, a
couple of updates. First up, this weekend Peru’s “Defender of the People” Ombudsman, a
position with little direct power but is influential on public opinion, has asked President Castillo
to “reconfigure” his new cabinet as (we translate and quote (13)) “…the last few months, the
designations for ministers have repeatedly transgressed the minimum standards required in
qualifications and experience.” In other words, the people Castillo has chosen for the jobs are
as bad as we mentioned last weekend and the ombudsman made sure he had special words for
the new Health Minister.
The new cabinet formed around President Pedro Castillo’s fourth Prime Minister, close ally (and
probable last stand) Anibal Torres, is slated to go to Congress on March 8th to seek its official
approval. We don’t know if they will get that far, but if the current bunch are not changed the
likelihood is that Congress will decide to keep using the same “give them enough rope and
they’ll hang themselves” strategy we’ve seen when previous cabinets. Therefore the new
cabinet should gain approval, then Congress would go after the separate ministers one-by-one
and force individual resignations on no-confidence votes until the cabinet is untenable.
To that end, after the previous week when the Vice-Minister Mining resigned due to the way the
new and woefully under-qualified new Minister appointed by President Castillo, Carlos Palacios,
was doling out cushy jobs to party cohorts and friends, we have another example from the
Ministry of Transport. The vice-Minister of Transport resigned last Thursday and in her
resignation letter wrote. “The MTC (i.e. her Ministry) has apparently become an employment
agency to fill posts erroneously that require proven experience and qualifications.” When he
heard about the resignation on Friday, the incoming Prime Minister Anibal Torres commented to
reporters, “Well, why didn’t she resign earlier?” about the Vice-Minister who was given her job
on November 9th (14). The number of “doubtful ministers” in this new and as-yet ungratified
cabinet is growing quickly and if Congress decides to hold fire on the Prime Minister and instead
go after his ministers, they will have plenty of fuel for the fire.
Colombia: Lefty Gustavo Petro firming up his lead
Previously reported polls out of Colombia show frontrunner Gustavo Petro of the left-wing
“Pacto Historico” coalition with 27% of the popular voter intention and the field behind. All polls
also show Petro beating any other candidate in Round two. But we cut to polls out this week in
which we note his image improving, a key ingredient for a “Presidentiable” in any LatAm
country. The poll from normally right-leaning pollster Invamer measures the favourable and
unfavourable perception of each candidate and show Petro’s “favourable image” score has risen
to 42%, with his “unfavourable image” at 40%. Those are obviously close to each other and
while Petro is still a polemic figure who divides opinion (hard right-wingers will never have a
good word for him and there are plenty of those in Colombia), the comparison to this time last
year when he scored “favourable” of 34% and “unfavourable” of 44% shows his progress. In
fact, last week’s poll was the first since 2018 in which Petro’s image score was net positive.
Meanwhile the biggest and most exact survey for the upcoming Presidential vote happens on
March 13th, as the Colombian system has first has its people voting on this earlier date for its
new upper and lower parliament members, with 188 House of Representatives and 108 Senate
seats up for grabs. These results will go a long way in deciding how the vote for new Head of
State goes. This includes the possible Veep, because against the likely wishes of Petro himself
25

there’s a growing movement inside his coalition to offer the Vice President’s job to the head of
the party which does best in the parliamentary elections next month.
Mexico’s Supreme Court rules against Almaden Minerals (AMM.to) (AAU)
So much for last weekend’s “final note” and the growing suspicion that Mexico’s Supreme Court
(SCJN) was trying to wriggle out of a ruling. In the end, the case was finally given its hearing
on Wednesday 16th February and as originally mooted
on these pages, the SCJN went most of the way and
decided to go the legal route of blaming Mexico’s
ministries for not advertising the proposed concession
awards to locals, instead of ruling against locals or
completely gutting the country’s Mining Law as stands.
The result hit the stock hard, the NYSE listing AAU
doing more volume as usual (right). When it came, the
preliminary SCJN decision was very close to the work-
around solution being mooted three weeks ago and as
reported in IKN662 dated January 30th, here’s an
extract from that day’s note:
If things go as rumoured, the Supreme Court will rule that while the project
concession awards did not contravene the mining law, Mexico’s government was
wrong in awarding the concessions without first providing notice to locals and giving
them opportunity for prior consultancy. In light of this, the Supreme Court is likely to
decide that the Ixtaca concession awards be annulled, then re-emitted during which
process the locals will have the right to stop the permits from being awarded. In other
words, instead of changing the law, the Supreme Court is looking to blame the
government and if so, leaves the State open to law suits from Almaden.
It took until now to come to a decision, because….because Mexico. Meanwhile, Almaden via its
wholly-owned subsidiary Gorrion told Mexican press that its Ixtaca concession was not
suspended by the ruling, instead it was “insubsistente” (and yes, that’s “insubsistent” in
English) which probably best translates as “unfounded” or more exactly “un-inherent” (ugh)
(15) and would now through the necessary prior consultancy processes in order to be re-
expedited. One gets the feeling this one will run and run, with lawyers and AMM’s management
doing better than its shareholders over the long-term. Also, it’s worth considering that while
anti-mining groups in Mexico may want this to become a legal precedent and therefore a
weapon against other contentious projects in the country, the carefully chosen legal route of
the SCJN and the likelihood of protracted litigation will work against their desires. The only
likely proactive result of this ruling will be as a warning shot to other mining companies not to
try to go the route of Almaden and fake good CSR when the opposite is the truth.
Market Watching
QC Copper & Gold (QCCU.v) and a good drill assay wasted
Probably too-harsh a title line, but it conveys this desk’s sentiment about the first set of drill
assays out of QC Copper & Gold’s (QCCU.v) phase two program, as reported last Tuesday (16).
The NR started well and explained the best drill assay in its title, “QC Copper Intersects 184 m
of 0.32 % CuEq, including 49.5 m of 0.7 % CuEq, Extending Mineralization Within the
Conceptual Pit” and while 0.32 CuEq is nobody’s idea of a world-beating hole, it never needed
to be in order to impress. The concept behind the current drill program is to turn “waste into
ore” and as explained last weekend in IKN664, the design of QCCU’s current program is to go
after the low hanging fruit zones of halo mineralization that sit between the known and drilled
areas. This graphic, snapped from the recent QCCU YouTube webinar hosted by its Vp
Exploration Charles Beaudry, was from last week and showed the concept clearly:
26

Cut to last week and instead of an easy to understand visual, once you were through the drill
results table QCCU offered this (below left):
I don’t know about you, but that meant little or nothing to me. For
geologists it’s surely easier, but adding those drill positions without
noting how the company was trying to “infill” kind of defeats the
whole point of having a visual aid attached to a NR. In fact, the
visual (right) is the a close-up of the main map that zooms ion on
the highlight hole to the left of the main visual, OPM-21-122…
…on consulting with WCCU CEO Stephen Stewart I was duly informed that the hole went
straight through this area of the first graphic and, as such, was an
excellent result. Not only does it add easy tonnage and metal, this
result makes instant gains in lower eventual mine strip rate. Also of
course, it’s exactly the type of proof of concept that QCCU will now be
able to apply to the other areas it considers as low hanging fruit.
Sadly, the significance of QCCU’s low-grading but economically
important long meterage drill assay was lost on the market. Normally
CEO Stewart is on-the-ball when it comes to marketing and promotion, but he also has plenty
of spinning plates at the moment as he heads up the six or seven active Ore Group companies
in his stable. Perhaps this ball was dropped because he left the marketing to a geologist and
that’s just me guessing, but in spite of the lukewarm reception from the market last week’s NR
was positive for Opemiska and I remain an happy holder of a now larger position (which, for
27

the record, I added at 28c on Monday but the cost average is still just in the 27.5c range, so
I’m staying there).
Previewing Amerigo Resources (ARG.to) 4q21 financials
On of the most keenly awaited sets of financials from our current list is Amerigo Resources
(ARG.to) and for a couple of reasons:
1) The 4q21 results and 2022 guidance, including comments delivered by management
during its Conference Call, will go a long way in telling us whether the activist
shareholders in the background make a move on the company.
2) Pertaining to the above, for some reason there’s a long gap this quarter between the
publication of the 4q21 and YE financials (17) set for the pre-open on Thursday
February 24th, and the Conference Call due on Monday 28th at 11am Pacific (2pm EST)
Due to that and despite there being next weekend to mull over results, The IKN Weekly may
decide to defer discussion of 4q21 until the Conference Call is done and, potentially at least, the
movers and shakers have moved and shaken. Therefore, instead of running an anal ysis of the
results next weekend here’s a preview of the numbers by way of reminder.
As ARG pre-published several data points its January 13th NR including total production,
deliveries, average selling price, annual cash cost as well as some 2022 guidance our
guesstimates shouldn’t be too far out (and we tend to err on the side of caution) and the
following charts are unchanged from previous estimates made in January. This is more about
having a useful reference at hand when the 4q21 results are published on Thursday.
Here goes, and if we assume an average received copper price of U$4.13/lb for 4q21…
ARG: Average Cu price for MVC
28
29.2 76.2 26.2 67.2 53.2 16.2 40.3
25.3
80.4 44.4 32.4 31.4 03.4 03.4
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 tse22q1 tse22q2
U$/lb Cu
source: Company data/IKN ests
…and deduct standard expenses, our forecast for non-adjusted revenues comes to U$48.57m:
ARG: Gross Cu value vs Total revs, per qtr
637.72
296.22
9.33
474.53
836.51
640.62
555.73
881.74 709.84
305.05
231.84 75.84 89.84 89.84
80
70
60
50
40
30
20
10
0
91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 tse22q1 tse22q2
U$m
source: company filings, IKN ests
Which runs through the books and gives a gross profit of just under U$12.5m and a net profit
of $7.8m, though if there are any adjustments to revenues from previous quarters these may
be slightly low:

ARG.to: Gross, operating and net profits, per qtr
20
17.5
15
12.5
10
7.5
5
2.5
0
-2.5
-5
-7.5
-10
29
02q1 02q2 02q3 02q4 12q1 12q2 12q3 tse12q4 tse22q1
U$m
Gross profit
op profit
Net Income
source: ARG data
If you prefer, we assume an EPS of 4.5c/share which at the current C$1.56 share price implies
a forward P/E ratio of 7.2X and franks ARG’s “cash cow” status.
ARG.to: Earnings per share, per qtr
0.10
0.09
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0.00
-0.01
-0.02
-0.03
-0.04
91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 tse12q4
U$
source: company filings, IKN ests
That’s enough ARG preview, for more please consider the longer note in IKN660 dated January
16th. Well okay, one balance sheet chart as we
care about cash and treasury position now ARG.to: Cash and ST
ARG is running dividends and share buybacks. 70
65
Our previously published estimate is for a 60
55
closing cash position of $63.8m, but it 50
45
wouldn’t surprise to see that miss to the 40
35
downside by a couple of million. In any case, 30
25
even if close the financials notes will need a 20
15
careful read this time. 10
5
0
That wraps up the ARG preview and while
results will matter, we may get the real
newsflow from this quarter’s ConfCall so we’ll
probably wait to review ARG’s 4q21 in IKN667,
in two weeks’ time. Assuming I’m at the desk that weekend, anyway .
Conclusion
IKN665 is done, we end with bullet points:
 In today’s market, Chesapeake Gold (CKG.v) offers a no-frills leverage play on the price
of gold as it climbs higher, with corporate development set to return potentially game-
changing news in the medium-term and a strong financial position backing plans.
There’s plenty to like about the new management and strategy, but don’t be fooled, I’m
running my money on a speculative trade.
71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 tse12q4
$m
source: company filings

 Aside adding CKG, I’m now reasonably happy about the current portfolio set-up.
Anything might happen while European invasions and armed conflict are the neurosis of
the day, then there’s still Covid (plus the Fight For Freedom) and let’s not forget
inflation and The Fed but overall, exposure to gold and copper is probably a good place
to have money. Whether or not that exposure should be in junior miners, one of the
riskiest sectors in the world, is another issue .
 Southern Cone political risk continues to be over-exaggerated by the rest of the world,
so fear not if you’re exposed to Chile, Peru or Argentina. And as all of those are good
for copper, buy copper too.
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.
Yours nervously, Mark
Footnotes, appendices, references, disclaimer
(1) https://chesapeakegold.com/2020/08/chesapeake-gold-arranges-20-million-private-placement-financing/
(2) https://www.mcewenmining.com/investor-relations/press-releases/press-release-details/2022/McEwenCopper-
Announces-Management-Addition/default.aspx
(3) https://www.otcmarkets.com/stock/MAIFF/news/Watch-the-Minera-Alamos-Inc-Presentation-at-the-February-16-
2022-Metals--Mining-Virtual-Investor-Conference?id=344066
(4) https://www.reuters.com/markets/europe/lme-warehousers-slash-capacity-metal-stocks-drain-away-andy-home-
2022-02-17/
(5) https://iknnews.com/c3-metals-cccm-v-hochschild-knows/
(6) https://www.fool.com/earnings/call-transcripts/2022/02/16/barrick-gold-corporation-gold-q4-2021-earnings-cal/
(7) https://iknnews.com/starting-tomorrow-a-one-week-pair-trade-for-hedge-funds-long-newmont-short-barrick/
(8) https://www.signatureresources.ca/news-media/news-releases/2022/signature-resources-announces-1000000-
equity-financing
(9) https://www.signatureresources.ca/news-media/news-releases/2022/signature-resources-announces-acceleration-
of-an-initial-ni-43-101--resource-estimate
(10) https://en.mercopress.com/2022/02/16/a-former-chilean-socialist-minister-considers-delirious-the-nationalization-
of-mining-industry
(11) https://www.reuters.com/world/americas/chile-starts-debate-new-constitution-amid-jitters-over-mining-congress-
plans-2022-02-15/
(12) https://www.biobiochile.cl/noticias/nacional/chile/2022/02/18/hernando-a-vicepresidente-ejecutivo-de-la-enami-el-
proceso-entero-adolece-de-vicios-de-legalidad.shtml
(13) https://rpp.pe/politica/estado/defensor-del-pueblo-pide-al-presidente-pedro-castillo-recomponer-el-gabinete-
ministerial-noticia-1387767
(14) https://larepublica.pe/politica/2022/02/18/anibal-torres-sobre-renuncia-de-viceministra-de-transporte-por-que-no-lo-
hizo-antes-juan-silva-mtc/
(15) https://www.razon.com.mx/estados/concesiones-ejido-tecoltemi-suspendidas-son-insubsistentes-minera-gorrion-
471530
30

(16) https://qccopper.com/news/qc-copper-intersects-184-m-of-0.32-cueq-including-49.5-m-of-0.7-cueq-extending-
mineralization-within-the-conceptual-pit/
(17) http://www.amerigoresources.com/_resources/news/nr_2022_01_13.pdf
Stocks To Follow Closed Positions 2021
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 Min NOM.cse feb'21 C$1.55 6-Set-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-Abr-21 C$0.19 -36.7% Failed spec trade, cut loss
Cartier Res ECR.v sep'21 C$0.32 21-Mar-21 C$0.235 -26.6% 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
Excelsior Mining MIN.to oct'21 C$0.93 10-Mar-19 C$0.53 -43.0% May return in 2022
Royal Road Min. RYR.v nov'21 C$0.155 17-Mar-19 C$0.275 77.4% Closed on Nica pol risk
Aurelius Min. AUL.v dec'21 C$0.75 28-Jun-20 0.24 -68.0% cut end 2021, failed trade
Argonaut Gold AR.to dec'21 C$2.95 25-Jun-21 C$2.15 -27.1% cut on capex blowout
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
31

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
32

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.
33