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The IKN Weekly
Week 678, May 15th 2022
Contents
This Week: Trade heads-up, In Today’s edition, Trimming the sails.
Fundamental Analysis: Portfolio Review: Selling some shares and raising some cash.
Stocks to Follow: Solis Minerals (SLMN.v) (SLM.ax), Abrasilver (ABRA.v), Discovery Silver
(DSV.v), Superior Gold (SGI.v), Western Copper & Gold (WRN.to), Chesapeake Gold (CKG.v),
Aldebaran Resources (ALDE.v), Element 29 (ECU.v).
Copper Basket: Overview, Marimaca Copper (MARI.to), Regulus Resources (REG.v).
Producer Basket: Overview, Barrick (GOLD) and Newmont (NEM).
TinyCaps Basket: Overview, Kingfisher (KFR.v), Precipitate Gold (PRG.v).
Regional Politics: Colombia: La Gran Encuesta puts Petro in front, Argentina improving
mining scene attracts media attention, Chile: The Constitutional Assembly votes down major
changes to mining laws and the government pushes its positive mining agenda on mining, Peru:
Trying to stick to mining-only news, Brazil: Lula gets a poll bump, LatAm forex and the
influence of the Left.
Market Watching: Solaris Resources (SLS.to): Warke buys and Beaty sells, Moneta Gold
(ME.to): The Tower Gold resource update arrives, Argonaut Gold (AR.to) and The Magino Mess,
Starcore International (SAM.to) and an arbitrage opportunity.
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
Our normal top-of-the-shop alert of trades planned in this edition, but no specifics list here.
Instead, please see today’s main Fundamentals section as there are several portfolio moves and
adjustments planned, in light of the changing macro backdrop.
In Today’s Edition
 There are two main sections in this week’s edition, the first being the intro, entitled
“Trimming the sails”, which lays out why I am scaling back exposure to the junior
sector.
 Following on from that, the second main section is the main Fundies section which
includes a portfolio review and explains my planned sales and the sentiment changes in
stocks I’m holding through.
 In today’s Regional Politics section, good news for miners in Chile and Argentina, bad
news for miners in Colombia.
 Despite the horrid backdrop, there’s always a trade out there if you look hard enough
and, surprisingly, the old value trap Starcore (SAM.to) may well provide one on the
back of a hostile takeover bid. We run the numbers in ‘Market Watching.’
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Trimming the sails
Well needs it we should cram our ears with wool
And so pace by: but thine are fancies hatched
In silken-folded idleness; nor is it
Wiser to weep a true occasion lost,
But trim our sails, and let old bygones be
The Princess, Alfred Lord Tennyson, 1847
It’s going to be selective, those companies in the gold and copper spaces look in better shape
than others and our main trades will remain unaltered, but with those criteria in place today’s
intro outlines why I’m cutting back exposure to junior mining companies in this current market.
For context to today’s decision, please find the final section of last week’s intro presented in
bolded italics. Between sections and in normal script, we parse the passage with today’s
commentary now that we have an extra week’s worth of market under our belts:
“So what to do? The result of the new US monetary policy has
pushed metals in general and silver in particular lower than this
desk expected.”
And it kept on pushing. Unless you ignored the market completely, the continued downtrend in
metals and resulting leverage pressure on stocks would not have passed you by. There was
some relief on Friday, but even that was unconvincing and the point comes when a market blip
becomes a trend change.
“You can tell because I didn’t sell my shares, you can also tell
because I’m trying to put on a brave face about adding a silver stock
two weeks ago and wondering how low it might go before the
market corrects the US Dollar again.”
Here’s a chart of the US Dollar index
(DXY), with a couple of notes
scribbled in red (right). The Fed has
managed to get in front of the
market and can now use its favourite
tool, the jawbone, to pre-empt its
policy to raise rates and crimp
demand. No matter whether you
think its direction prudent or not
(and for what it’s worth, I think it’s
madness to deliberately drag The
USA toward (or into) recession), the
Fed has clearly decided that the only
thing that matters is to reel in
inflation and that it can’t wait for
supply to ramp up in order to satisfy
out-sized demand. We now return to
the IKN677 intro:
“However, one of the best things about being a mining market
commentator is that you’re never wrong:
 Stocks go up? Bask in the glory
 Stocks go down? Blame the Powers That Be.
 Dollar strengthens? Will make its imminent collapse even worse
 Dollar weakens? It’s just the beginning
 Metals go up? It was clearly going to happen
 Metals down? Market manipulation by overlords threatened with
reality”
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Written in jest last week, it’s still a mirror at which the market commentator should look. At
some point, one’s convictions become the reasons why one loses money. The market will make
fools of us all eventually and while the op-ed “Do Fight The Fed” on the issue of gold prices
worked at first, the way in which the Fed has ratcheted up both rhetoric and intention since
then has put it back in front of the argument. Here’s another visual aid, this time the simple
gold price but (as we know), its shape is also valid for gold miners and even the GDX (right).
The first “Quantative Tightening” (QT) FOMC in mid-March didn’t stop the market from rising
and while everyone agreed that The Fed was going after inflation, the consensus was that it
had to be careful and not mess with economic growth or risk a recession scenario. That
weekend was when this publication wrote “Do
Fight the Fed” as an op-ed and in that same
edition, proposed five new trade ideas for the
expansive scenario that suited commodities. As
the arrow on that chart indicates, at first all
went well and within four weeks of setting
those “five trades ideas” loose, they’d scored
strong gains as a group.
Then something happened and the stock
market reversed, as did the price of gold,
metals in general and mining stocks in
particular (the GDX/J lines make the above gold
reversal look like a picnic, sadly). Now, 20/20
hindsight is an expensive thing at times, but with the realization that the scenario as painted by
The IKN Weekly these last two months is not working out, its author is naturally curious to
know why and, on looking back and checking through the macro and micro events of the
period, it seems that it wasn’t anything Biden said, or a new development in the Ukraine war, or
even results from the earnings season that were in full flow by then. Instead, prime suspect is
the crusty old Fed Beige Book, which had this to say about the prospects for the two big issues
of inflation and recession (1):
 Inflation: “Inflationary pressures remained strong since the last report, with firms
continuing to pass swiftly rising input costs through to customers,” the Beige Book said.
 Recession: There was hardly any talk of the threat of U.S. recession — only one
business person surveyed mentioned the possibility. A few companies raised the
prospect of recession in Europe stemming from the war in Ukraine.
The Beige Book gave the The Fed its green light: The US business landscape was worried about
inflation bigtime, but hardly anyone in the same field had recession as a factor. With that, the
Fed had the excuse or the reason it needed to go after inflation with all its might and those who
Fedwatch more closely than this desk (and had learned not to fight The Fed, more fool me and
others) took their cue. Again, that may be because the market can’t quite believe how the Fed
isn’t just tamping the brake pad these days but apparently willing to stamp on it with both feet,
seemingly willing to slam on the brakes sacrifice the economy in order to halt inflation in its
tracks, but that’s as maybe and while it may be fun to shake one’s fist at “The Man” or rail
against “The Powers That Be”, I’ll leave that to those who have no money on the line and a
philosophy they feel obliged to share with others, instead we draw your attention to last week’s
Jay Powell quote on this matter, as it was a real doozy (2):
“Whether we can execute a soft landing or not, it may
actually depend on factors that we don’t control."
That came in an interview with Reuters, moments after his Senate confirmation hearing went as
planned last week. It sent another chill through the risk-laden market and translates as, “We’re
going to use the factors we do control and if they cause a hard landing…well, hard luck! Don’t
say we didn’t warn you.” If you fight the Fed it tends to fight back so yes, the mistake was to
think about fighting the Fed. I wasn’t alone as this chart shows how gold resumed its upward
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path after the March FOMC but then came the second QT FOMC on May 3rd/4th, when Jay
Powell showed them just how far his team was willing to go in order to stop inflation (i.e. way
further than expected). The market took the hint faster than I did, gold reversed and while your
author remained stubborn for a while, it’s time to face a little cold reality. On that subject and
to finish the parsing of IKN677, we wrap up the last paragraph of last week’s intro:
“Okay, that’s facetious and of little help at this point, but neither am
I ready to change course entirely on the back of two days’ worth of
post-Fed negative trend. So for the time being I’m going to keep the
brave face in place and remain long in all positions, including those
wretched silver stocks that I talked myself into buying.”
It was possible to brush off “two days’ worth of post-Fed negative” but, with another week of
pain now under our belts, at some point a “brave opposition” becomes foolhardy stubbornness.
We now know the Fed isn’t about to blink and is apparently willing to hike at a 50-point-per
session rate, even 75 is being mooted by some corners of the market, in order to get inflation
under control. And while I’m late to the event, there’s every indication that the Fed’s collated
data from the business world (i.e the Beige Book) has given Jay Powell & Co the all-clear to
chase down inflation aggressively. Indeed, when posed the question of whether too much
hiking will cause recession, Powell made it clear that a hard landing may happen anyway and
that it would be “beyond his control” if it did. Hands duly washed, the selling accelerated.
Bottom line: It’s time to trim our sails somewhat. This doesn’t mean wholesale selling and a
rush to cash, as the key to long-term success in our sector is to Hold Quality Stocks (3) and,
as it happens, that’s what your fundies-based author does with most of his cash. But not all of
it and, as such, the job is to cut back on the risk in the juniors portfolio, sell the most
speculative positions and raise cash for future opportunities which should come at lower prices.
That’s the job we do in today main Fundies section, which follows now.
Fundamental Analysis of Mining Stocks
Portfolio Review: Selling some shares and raising some cash
Today’s main intro piece has set the scene, today’s main Fundies section moves into the
practical part of the sail trim, as demanded by our changed macro backdrop as pertains to the
mining sector. Please note that this isn’t a sector-wide sale or dumpage, as once this is done I’ll
still be long the junior mining sector and in particular, I’ll have plenty of exposure to gold and
copper stocks. This pruning exercise is selective and, as well as holding quality stocks, the
metals that are likely to fare best are the ones I’ll continue to prefer.
As I believe it will be most useful for you the reader to understand the reasoning and mindset
behind the changes, rather than the specific decisions on specific stocks, I’m going to expand
on the thought process as well as explain how the individual company notes are presented
today. That makes for an extended introduction and more words so, sorry about that. There are
three aspects to the following trade decisions:
1) A preference for exposure to gold and copper juniors going forward, as compared to
companies mostly exposed to other metals
2) A use of the “sentiment index” to help frame the changes
3) The practical and personal aspects to the new direction
Preference for gold and copper: These metals are preferred for juniors exposure going forward,
simply because I expect them to perform better than their peers. This is the most important of
the criteria and the one that’s made my selling decisions easiest. That’s also true of the past,
but it’s clear that at market copper and gold are holding up better than other metals in the suite
due to their own demand dynamics:
 Gold is the Fear Trade metal, the alternative to the US Dollar in times of negative real
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interest rates, the financial safe haven. While the USD has ruled the roost in the last few
weeks, that doesn’t negate the long-term attributes gold has always brought to the table (and
always will). Although dragged down so far by the US Dollar strength, gold has held better
than peer metals such as silver and palladium, which is what it does in times of economic
uncertainty. Finally, while The Fed is now on its track of raising rates, it has plenty to do to
bridge the gap with inflation and while real rates remain negative, gold will enjoy fundamental
support.
 Copper is the metal China needs. The only industrial metal that China does not produce in
quantity on its own soil and its greatest import weakness in the metals complex, Chjina now
uses around 55% of the all the copper produced in the world and that percentage creeps up
every single year. We expect the Chinese copper demand to remain strong, despite the US
backdrop, due to its internal policy decisions and larger macro plans based around the Belt&
Road initiative. As China comes out of its 2022 Covid trough so demand will resume and the
historic level of supply tightness (as seen in world inventory levels) will only get worse as the
year progresses. President Xi has recently enacted a economic stimulus and China will need all
the copper it can get to maintain its GDP growth plans.
The change of sentiment: In each case, you’ll a small segment on the stocks currently on the
‘Stocks To Follow’ list, any change in trade position or size, plus an emphasis on the
“Sentiment” indicator. The “this week” sentiment column is normally a minor element in our
coverage of our “Stocks to Follow” list, as its job is to give a temperature reading of how I see
the current outlook for stocks and companies that I hold (or like) for longer-term and more
fundamentally based reasons. However, today’s edition puts “this week” front and centre, as
the change in macro market sentiment is palpable.
Finally, please be clear of the personal and practical nature of these changes:
The practical: This isn’t about the relative attractiveness of the company in question. After all,
to make the ‘Stocks to Follow’ list in the first place these companies must have more going for
them than the hundreds, nay thousands of junior mining stocks out there that don’t make the
list (most of those very easy passes). This is about making changes to re-align to the ne macro
background, it’s not a verdict on the quality of the stocks and companies in question.
The personal: The IKN Weekly ‘Stocks to Follow list uses the “least worst” method. Until very
recently, all companies have been those I have personally owned and the new special situation
of the five trade ideas from IKN670 is only a half step away from that. When I buy these stocks
I buy them for their own fundamental reasons as well as my own personal reasons and there
are many nuances to those (e.g. size of personal back pocket, personal risk tolerance, where
they might fit in my overall portfolio, preferred metals exposure, etc) and it’s unlikely we have
exactly the same requirements at the moment of purchase .
It therefore stands to reason that any sale or partial sale position comes under the same
criteria. We are all affected by the change in macro outlook, but those personal decisions to
sell-this-keep-that are and will always be driven by the same type of personal decisions. So
keep that in mind when you find yourself disagreeing with my trade decisions today (in fact, it
would be very strange if you agreed with all my calls). And that’s the end of an extended and
rather long-winded intro, which I hope you’ll read for the necessary context. Now for the
company-by-company portfolio review, notes on each and any eventual change in sentiment
and trade decision:
Minera Alamos (MAI.v): Remains Strong Buy
Nothing changes here, as the weekly “Strong Buy” sentiment is the same and I’m not selling or
paring down a single share. Minera Alamos (MAI.v) is in the enviable position of having enough
treasury to make good on its 2022 plans and, once Santana is officially in commercial
production, will be in good shape to go to the markets and raise the capital is requires for its
next project at Cerro De Oro.
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In fact and as explained by MAI president Doug Ramshaw during his webinar presentation on
Thursday morning, the arrival of commercial production isn’t even the most important catalyst
on the horizon. MAI is currently finalizing the resource report and eventual PEA on Cerro de Oro
(CdO) and the money quote from last week’s show was this:
“Cerro de Oro is going to be a very big mine”
Quote/Unquote. It was the first time President Ramshaw had spoken in such glowing terms
about CdO in public and even your author, a close watcher of his largest position and Top Pick
was suitably impressed by the way he pushed the subject and talked of the surprise that he had
in store for the market and wider gold sector. However, this desk wants to underscore that MAI
is undervalued on Santana alone and what we expect MAI to achieve there, let alone its suite of
projects (and let’s not forget the new “Minera Copper” spinco idea). Along with other catalysts
such as the Santana 43-101s (dude this quarter, he says) there’s a lot of reason to own MAI,
even with gold $100/oz off in recent weeks.
Rio2 Ltd (RIO.v): Remains Strong Buy
No change at our other Top Pick either, as RIO.v is in the enviable position of being fully
funded to production at Fenix. With Chile’s mining scene looking more positive and the world
losing its fear of the left wing Gabriel Boric government’s influence over the sector, all we
require is the permit to come out of its bureaucratic system and by all accounts, the permitting
track is going as planned,
Amerigo Resources (ARG.to): Remains Strong Buy
Our largest copper position and “almost a Top Pick”, the main reason to love ARG at any price
under $2.00 is the dividend policy. We went over the strong payments and shareholder-friendly
policy now in place at ARG last weekend, today we underscore that ARG doesn’t need $4-60/lb
copper to make hatfuls of profit from its operations, more than enough to continue with its
3c/quarter regular dividend, its share buyback policy and the eventual Bonus Dividend (pace
CEO Davidson and her “top up”) which could be a real bumper payout at any copper price
above U$4.00. Indeed, the company literature bases its current dividend policy on U$3.80/lb
copper.
This stock at this price is a fundies no-brainer and with ARG now out of its blackout period and
buying back again, the price will see plenty of support.
Discovery Silver: Was Strong Buy, now Hold
The first change and with it, as our main silver trade drops from “Strong Buy” to “Hold” in the
weekly sentiment column. I also plan to raise a little capital by selling a few (and I mean a few)
shares in order to reduce exposure to silver.
DSV is still a great company with a strong project and while Cordero’s economics are presented
to the market at U$24/oz silver, even if we drop assumptions to U$20/oz Ag (and U$1.00/lb
zinc, as well as other low prices for the smaller credits) its economics stand up to scrutiny.
Here’s our condensed income statement table from its original fundies report of late October,
which used those input prices in the “stress” case:
DSV at Cordero: Condensed income statement (U$m)
case stress DSV base current bluesky
Sales (U$m) 411.2 495.1 546.0 632.7
Cash COGS 131.3 131.3 131.3 131.3
Depreciation 15.0 15.0 15.0 15.0
G&A 17.5 17.5 17.5 17.5
fin. Costs 15.0 15.0 15.0 15.0
royalty 2.1 2.5 2.7 3.2
Op income 228.4 311.4 361.8 447.6
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Exploration 8.0 8.0 8.0 8.0
Tax 50.7 69.8 81.4 101.1
Net income 152.1 209.4 244.1 303.3
Shares out (m) 400 400 400 400
EPS 0.38 0.52 0.61 0.76
Capex 10 10 10 10
FCF 0.44 0.59 0.67 0.82
Sources: DSV data, IKN estimates
Seeing the silver price drop over the last few weeks isn’t pleasant, but it’s why we present a
stress case during our fundies analyses on companies, after all.
However and with that said, you people out there know full well that I’m not the biggest fan of
the silver sub-sector even at the best of times. Discovery Silver (DSV.v) is a top notch project
and company, especially when compared to the mediocrity so typical in this space, but it cannot
help but be dragged down by the weakness in silver and as the gold/silver ratio (GSR) currently
shows…
…the trend is not our friend compared to gold and its derivative companies. Watching the GSR
rise as gold bullion weakens is also a classic presage for a wider recession scenario, but today
we focus on the miners. Please note that I am not selling out of DSV and want to stress, the
sale of a few shares is driven by internal portfolio management and the desire to raise a specific
amount of cash (that I’ll use when a better market re-appears). However and until silver shows
signs of bottoming out and catching new bids, I will take the prudent course and leave DSV as
a HOLD in the Stocks to Follow list.
QC Copper & Gold: Was Buy, now Speculative Buy
There are pros and cons about this trade: The pros are the reason I own in the first place:
 Copper and gold are the right metals
 Attractively priced and advancing Opemiska briskly
 Local support for the project
 Strong economics
 Resource expansion drilling underway that should result in a real mine plan
 A top level team led by a young CEO with a growing reputation (deserved, too)
 etc
However, downsides are showing in the current environment. While the grade for this type of
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low-opex mine plan doesn’t have to be the type that grabs you by the eyeballs, we know that
the current resource expansion that targets low hanging fruit and turns previous “waste into
ore” will drop the overall grade of the upcoming resource. On the other side of the equation,
cost increases will put the low 0.2% (or so) cut off under pressure. And there’s also the
absolute size of Opemiska, which while large and with the potential to get very large (even
world class, given enough drill work and grace from the town of Chapais if it needs to physically
move), at this time its of the size that won’t attract a major as sponsor, buyer or builder.
By dropping QCCU from Buy to Speculative Buy, I tip my hat to current market sentiment and
acknowledge that a 20c or 25c copper exploreco is highly speculative in nature. However, be
clear that unlike DSV above (or a couple of others, below) I am not selling any of my
currently held shares in QCCU. There’s plenty to like here and not only that, but this is the
type of company I like to sponsor with my cash on a personal level. However and even as it
targets my favoured metals of copper and gold, it has to be considered speculative until further
notice.
Superior Gold (SGI.v): Remains Strong Buy
No change in ownership or reco level. One of the five companies that came under coverage in
the “five ideas” instalment of IKN670, Superior Gold (SGI.v) is the only one of the five that I’ve
bought personally (so far) and even now, after taking a shellacking from the market last week,
this company looks in great shape to improve during 2022.
For evidence, we again make haste to our spreadsheet work and, while the high fixed cost
levels run by SGI will cause problems to its financials at U$1,700/oz gold or lower (we used
U$1,600/oz gold as out example), as long as gold holds at or above U$1,800/oz this company
will show plenty of free cash flow and operating profits compared to its share price, both in
absolute and per-share terms:
SGI: Condensed income statement (U$m)
U$1600oz U$1800oz U$1900oz U$2000oz
Sales (U$m) 111.6 125.5 132.5 139.5
Cash COGS 101.5 76.1 76.1 76.1
Depreciation 12.0 12.0 12.0 12.0
G&A 5.0 5.0 5.0 5.0
fin. Costs 0.0 0.0 0.0 0.0
royalty 3.5 3.9 4.1 4.3
Op income (10.4) 28.5 35.3 42.0
Exploration 6.0 6.0 6.0 6.0
Tax (4.1) 5.6 7.3 9.0
Net income (12.3) 16.9 22.0 27.0
Shares out (m) 123 123 123 123
EPS -0.10 0.14 0.18 0.22
Capex 12 12 12 12
FCF 0.10 0.33 0.37 0.42
Sources: SGI data, IKN estimates
Its current sell-off is likely due to its high cash cost profile, but this desk believes the market is
getting too nervous, too soon about SGI’s prospects. With a clearly defined plan to improve
production to 100k and then upward to 150k oz per annum next year (at low capital cost), SGI
is in the right place to weather the current storm. Those looking for excellent value in the
producer gold space should put this stock on their shortlists.
Element 29: Was Buy, now Hold
I’m dropping ECU.v down to a “Hold” sentiment and will sell a few of the shares (again, a minor
proportion in order to add a little to treasury. While copper is the right place and the right
metal, we’re now in something of a fallow period for market-moving news. The initial results
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from Flor de Cobre were good, but didn’t move the market. Meanwhile, we’ll have to wait to Q3
or more likely Q4 for drill assay news from Elida in the North of Peru. While Elida is the most
interesting target, both projects are still in their early stages and it’s going to take a while, at
least to 2023, to get a 43-101 resource on either.
Compared to all other Peru copper explorecos, Element 29 offers best bang per buck and its
team are highly experienced in the country and its ways, too (very important). However, it has
the look of dead money for the next few months under this newly depressed market backdrop
and I’m altering its near-term outlook accordingly.
Chesapeake Gold (CKG.v): Remains Speculative Buy
It’s big, it’s gold and its already extremely undervalued as long as its met study results come
out well and all signs are of a management team looking forward to the moment when it can
announce results of those. CKG took a nasty share price drop last week as the market headed
for the same door at the same time, but I see no reason to sell any shares here and look to
CKG as an exploreco story that can swim against the sentiment tide.
Abrasilver (ABRA.v): Was Speculative Buy, now SELLING
Bought recently and I regret that fact. This is the test case for today’s decision to pare back
exposure as it involves holding up my hands and saying “I was wrong to buy this”, selling
almost immediately and taking a loss for the pleasure. That is happening and, when it does, I
will remind myself how much I hate silver stocks. Good company, good project, bad timing.
Aldebaran Resources (ALDE.v): Was Speculative Buy, now hold
We finally got the drill assay NR from ALDE on May 11th(4) and it came in a mixed bag of news:
 The early warrant exercise adds $2.5m to treasury and takes the near-term financing
pressure off the company. That’s good, and seeing the main shareholders willing to
exercise 70c paper is a positive support signal, too.
 Hole 044 hit good gold grades early in the hole, supporting the new theory of a gold
deposit in the upper reaches of the Radio Zone that will improve eventual project
economics. That’s good
 The other holes deviated from target but even so hit the type of mineralization grades
and lengths we’ve seen before at Altar. Not great, but could have been worse.
 The company reported slower than expected progress on drilling and that would be a
negative even for a company without a bad reputation for missing timelines. In the
case of this management team, the frustration is not limited to ALDE and Altar, then
add in the slow holes are missing targets due to bad drilling and it all smacks of
amateur hour.
It’s good to see that $2.5m treasury boost that reportedly covers the work for this drill season,
but on the other hand $2.5m won’t last forever and only delays the next round of raising, rather
than replacing it. ALDE is hosting a webinar tomorrow Monday and I’ll be on it. Until then I’m
not wont to reduce this (already small) share position, but the sentiment indicator goes down to
HOLD today and unless there’s good reason to hold through, I may reduce or even sell all
shares in the near future and move on.
Strategic Metals (SMD.v): Was Buy, now SELLING
This prospect generator trade has never taken off and, with its main fundamental backbone
reliant on shareholdings in other explorecos, its in a position of weakness as the sector sells off.
Equally, the main reason to like SMD in 2022 was to this point the Broden Mining project, of
which it owns 32.8%. That was supposed to generate exciting news coming into this year but
so far we’ve heard very little. As a zinc mine project, it’s not a metal on my personal agenda
any longer.
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From the start this was a small trade and what’s more, my entry timing was poor. Just before
the recent sell-off SMD almost managed to get back to UNCH on my list and was starting to
look good but the market is now moving away from its profile. The reason to buy was to be
exposed to the macro land market in Canada, that hasn’t worked and this trade, while small,
will go down as an out-and-out personal failure.
Palamina Corp (PA.v): Remains Speculative Buy
It’s a tinycap with plenty of gold exposure, it’s also managed to get its permits for drilling and
will soon start its 2022 newsflow. As for the personal portfolio, it’s a speculative buy at a tiny
market cap that has gone back to a previously established floor price in the last couple of
weeks. No change in sentiment and not selling any shares.
Altiplano Metals (APN.v): Remains Speculative Buy
I have been in two minds about this trade, but ultimately I’ve decided to leave it as stands, so
no change in sentiment and no share sales, either. APN’s attraction is its small, bootstrap type
business plan that uses the revenues generated from its small copper operation and reinvests
it, first in infrastructure to improve production and then its exploration projects. It’s cheap and
doesn’t need capital markets in order to survive, if required this business model hunkers down
during a rough period and remain unaffected after. Holding.
Minera IRL (MIRK.cse): Remains Hold
The only “special situations” mining company on our list, there is no point in changing
sentiment or selling any shares. Its situation is different, as the company either 1) manages to
sell Ollachea and monetizes or 2) it will get to the end of this year and its unspeakably bad
management will have to answer to its shareholders. The only logical choice is to ignore its day-
to-day and wait.
Meridian Mining (MNO.to): Was Buy, now HOLD
Not one I own and comes from the “five trade ideas” from IKN670. I don’t mind admitting that
until recently I’ve been very tempted to buy, but its exploreco dynamic isn’t the right one for
share price runs in this current market. Of course I could be wrong, the company is busy
drilling Cabacal and any of its holes could return a bonanza grade hit that changes the game,
but in general terms we know the drill program and its objectives now. The plan is to prove up
a large, near-surface copper VMS ands make it into an open pit, along with a bonus of showing
discrete very-near-surface gold intersects that would turn open pit overburden into ore and
make for a cheap and economically strong mine plan.
It’s a good plan and what’s more, MNO has been reporting plenty of success from its 2022
development program. This is a change of sentiment based on the changed macro background,
no more no less. I don’t own any but, if I did, would consider paring the position.
Newcore Gold (NCAU.v): Was Buy, now HOLD
Not one I own and comes from the “five trade ideas” from IKN670. The reason to drop NCAU to
“HOLD” is very much the same as for MNO, above. Explorecos with aggressive drill exploration
and development budgets are somewhat “damned if they do, damned if they don’t” because
they will be pilloried by shareholder if they change plan, hunker down and preserve capital, but
drill results are not going to move the market if they come in largely as expected. The real
catalyst for NCAU will be in Q4 and its 43-101 resource but until then, it is also looking like dead
money.
Electra Battery Materials (ELBM.v): Was Buy, now Speculative Buy
I like this story and company a lot and wish it the best, but it’s not a mining stock any longer. If
it manages to build its recycling plant on time and in budget it will go higher and in the market,
there’s obviously a buyer (or two) ready to snap up the bargain prices as sellers take any old
price. But until further notice, this is speculative and not an obvious buy.
10

Western Copper (WRN.to): Was Buy, now Speculative Buy
This is the only stock of the whole list I would consider buying next week. It has the right mix
of metals, the right location and in RTZ, a serious strategic sponsor that could step up and buy
WRN out at any moment. Copper isn’t going under U$4.00/lb (I think) and that makes Casino
attractive for any major mining company looking for a world class copper project.
Mene Inc (MENE.v): Remains “Adding”
The final stock on our list is the only other “special situations” company. Not a miner, MENE’s
profile as a vendor of luxury jewellery online shouldn’t fit a market that’s coming off highs.
However, it’s not a trade built for a quarter or even a year and now MENE is financially sound
and looking to expand its production profile, it may even suit the company to be in the market
for infrastructure in a down (buyer’s) market. Every reason to keep adding small tranches from
time to time, I’m remain a massive fan of Roy Sebag and his company and for the umpteenth
time, remind readers that MENE may turn out to be the best trade ever called by this
newsletter. Which, for a mining publication, would be sad.
Bottom line: By selling two positions and making a few small reductions in other positions, I
bow to the new reality and admit that it wasn’t a smart idea to fight the Fed, after all. However,
the plan is proactive and fits with the remit of holding quality stocks, most of all the three
largest positions of Minera Alamos (MAI.v), Rio2 Ltd (RIO.v) and Amerigo Resources (ARG.to).
From here, the plan is to hold the quality and protect treasury, until such time as the storm
passes and on that, I will not mind at all for the rebound to come sooner, rather than later.
Even after the risk reduction, I remain clearly net long juniors and that’s not about to change,
so being made to look stupid for trimming the sails this weekend might not be great for the
ego, but it would suit the back pocket just fine. However, the cruel reality is that the
unexpectedly aggressive Federal Reserve policy as revealed in the last couple of weeks isn’t
likely to reverse or be opposed by the broad markets, that means higher rates and a higher US
Dollar, economic slowdown and a bear market for equities. Due to that and not due to the
quality of the companies on the Stocks to Follow list, I am raising capital and hunkering down.
Stocks to Follow
Let’s get the anomaly out the way: We had one week-over-week winner as Aldebaran (ALDE.v)
rose by 5c (+7.7%). The rest of the Stocks to Follow list is blood and more blood, with no
unchanged stocks, 18 losers and among those, only four of them dropped by less than 10%.
Luckily, one of those was my largest position Minera Alamos (MAI.v down 5.0%) but even that
isn’t much of a silver lining to the storm that hit the juniors sub-sector. The carnage included
these double-figure losses:
 Chesapeake Gold down 20.9%
 Palamina Corp down 16.7%
 Mene Inc down 15.4%
 Meridian Mining down 14.4%
 Element 29 down 13.5%
 Newcore Gold down 12.8%
 Superior Gold down 12.1%
 Abrasilver down 12.0%
 Discovery Silver down 11.4%
 Rio2 Ltd down 11.1%
 Western Copper down 10.9%
 Minera IRL down 10.5%
 Altiplano Metals down 10.0%
Hat’s a list of 13 stocks that dropped by 10% or more., which at least means it’s not about
stock picking. We have a total of 19 open positions, one below our self-imposed maximum and
after last week’s sector-wide hit, only three remain in positive territory.
11

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$0.57 171.4% $1.14 tgt, #1 idea on FY22 dev
Rio2 Ltd. RIO.v STR BUY C$0.83 22-Apr-18 C$0.56 -32.5% $1.30 tgt May22 permit catalyst
RECOMMENDED STOCKS
Amerigo Res ARG.to STR BUY C$1.36 12-Dec-21 C$1.58 16.2% $2..40 tgt on FY22 guidance
Discovery Silver DSV.v HOLD C$1.77 24-Oct-21 C$1.24 -30.0% Top Ag play, 1st tgt $2.75
QC Copper&Gold QCCU.v SPEC BUY C$0.275 25-Apr-21 C$0.215 -21.8% Now drilling. Easy hold
Superior Gold SGI.v STR BUY C$0.95 3-Apr-22 C$0.80 -15.8% Au prod jr, right place/time
Element 29 ECU.v HOLD C$0.58 6-Mar-22 C$0.37 -32.8% Cu exploreco w/ 2 Peru assets
SPECULATIVE TRADES
Gold leverage, adding now
Chesapeake Gold CKG.v SPEC BUY C$3.07 20-Feb-22 C$2.39 -22.5% (sm)
Abrasilver Res. ABRA.v SELLING C$0.42 24-Apr-22 C$0.33 -21.4% Good idea, bad timing
Aldebaran Res. ALDE.v HOLD C$0.72 16-May-21 C$0.70 -2.8% Assay catalyst in Q1 and Q2
Strategic Metals SMD.v SELLING C$0.42 31-Jan-21 C$0.30 -28.6% Canada land bet+Zn in FY22
Palamina Corp PA.v SPEC BUY C$0.295 21-Nov-21 C$0.125 -57.6% Au expl in S.Peru
Altiplano Metals APN.v SPEC BUY C$0.31 17-Sep-21 C$0.225 -27.4% Cheap entry, plan on track.
Minera IRL MIRL.cse hold C$0.195 22-Jul-12 C$0.085 -56.4% CEO change will move stock
FIVE TRADE IDEAS FROM IKN670, March 2022 (yellow not owned, blue owned)
Meridian Mining MNO.v HOLD C$0.88 20-Mar-22 C$0.77 -12.5% tracking IKN670 idea
Superior Gold SGI.v see above 20-Mar-22 see above
Newcore Gold NCAU.v HOLD C$0.51 20-Mar-22 C$0.375 -26.5% tracking IKN670 idea
Electra Battery ELBM.v SPEC BUY C$5.31 20-Mar-22 C$4.76 -10.4% tracking IKN670 idea
Western Copper WRN.to SPEC BUY C$2.41 20-Mar-22 C$2.05 -14.9% tracking IKN670 idea
LONG-TERM NON-MINING HOLD
Mene Inc. MENE.v adding C$0.67 6-Dec-20 C$0.55 -17.9% LT bet, adding slowly
CLOSED TRADES IN 2022 date 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
Trilogy Metals TMQ Mar'22 U$1.84 15-Sep-19 U$1.04 -41.3% killed by US permit reversal
McEwen Mining MUX Apr'22 U$0.89 2-Jan-22 U$0.82 -7.9% No 2022 turnaround, cut loss
2015 to 2021 annual closed positions in appendices below, 2009 to 2014 closed positions in editions IKN553 or earlier
Only a couple of notes on covered stocks this weekend, as we covered all stocks in today’s
portfolio review, above. However, there is one name that needs a section
Solis Minerals (SLMN.v) (SLM.ax): DEFERRED PURCHASE UNTIL FURTHER NOTICE.
This sucks and it’s something I’ve never done before, but needs must when the occasion arises
and, due to the ongoing macro situation as considered above, I’m not going ahrad with the
planned purchase of SLMN. The idea behind the trade was to add a small trade as a high
risk/high reward copper option and while the company may still deliver on the hole that
matters, there’s no longer a guaranteed positive reception for the news even if it does.
Therefore and until further notice, this planned trade goes on ice.
Aldebaran Resources (ALDE.v): While it is good to at least report one winner over a week
of carnage, if we place ALDE next to its sister company Regulus Resources (REG.v), we see an
uncanny similarity in the way these two stocks are currently trading:
12

I don’t know who Black and Heather are paying for this market making service, but whoever it
is it’s a waste of money.
Minera IRL (MIRL.cse): Timed to coincide with
last week’s Peru Symposium, Global Reports
published its annual PDF report on the state of
mining in Peru, one of those affairs that used to be a
glossy coffee table magazine for reception areas but
these days comes on PDF (5). It features a very pro-
mining essay-cum-report on the state of mining in
Peru and typically harvests and uses quotes from
sponsor companies, for example Minera IRL and, in
its section of the puff piece, we get to learn why the
company hasn’t made progress (above right).
All its problems are due to the national political
background. Well, that’s good to know.
The Copper Basket
After nineteen weeks of 2022, The Copper Basket shows a loss of 29.03% level stakes:
company ticker price 1/1/22 Shares out Market Cap current pps gain/loss%
1 Copper Mtn CMMC.to 3.42 210.166 477.08 2.27 -33.6%
2 Western Copper WRN.to 2.00 151.451 310.47 2.05 2.5%
3 Marimaca Cop MARI.to 3.77 88.028 303.70 3.45 -8.5%
4 Oroco Res OCO.v 2.04 203.4 256.28 1.26 -38.2%
5 Nevada Copper NCU.to 0.71 448.437 219.73 0.49 -31.0%
6 Hot Chili HCH.v 1.53 109.223 125.61 1.15 -24.8%
7 Meridian Min MNO.to 1.18 153.735 118.38 0.77 -34.7%
8 Regulus Res. REG.v 1.06 101.845 100.83 0.99 -6.6%
9 Aldebaran Res. ALDE.v 0.84 114.495 80.15 0.70 -16.7%
10 C3 Metals CCCM.v 0.16 645.379 51.63 0.08 -50.0%
11 Doré Copper DCMC.v 0.79 66.123 38.35 0.58 -26.6%
12 Kutcho Copper KC.v 0.88 103.94 36.90 0.355 -59.7%
13 Element 29 Res ECU.v 0.58 79.24 29.32 0.37 -36.2%
14 QC Copper QCCU.v 0.34 129.06 27.75 0.215 -36.8%
15 Coast Copper COCO.v 0.13 41.335 3.51 0.085 -34.6%
NB: All stocks in CAD$ Portfolio avg -29.03%
13

Rather than a paragraph, this week’s mess gets a visual:
One week of Copper Basket component moves
14
%3.91-
%9.61- %9.51- %8.51- %4.41- %3.41- %0.21- %5.11- %9.01- %5.01- %3.9- %5.8- %5.6- %0.2-
%7.7
10%
5%
0%
-5%
-10%
-15%
-20%
v.CK v.UCE v.CMCD v.MCCC v.ONM v.OCO ot.CMMC v.HCH ot.NRW v.OCOC ot.UCN v.UCCQ ot.IRAM v.GER v.EDLA
source: house data
So applause for Aldebaran I suppose, but a
The Copper Basket 2022, weekly evolution
major reason for its performance this week was 5%
0%
that it took its deep loss the week before last.
-5%
Regulus dropped 2.0% but sometimes looks are
-10%
deceiving (see below) and from there, we enter
-15%
the House Of Pain. There was no escape, but as
-20%
misery loves company we can at least seek
-25%
succour in the way that no company was to -30%
blame for its losses; this was a sector-wide -35%
drainage and due to a convergence of negative
factors.
As for copper-the-metal, this chart shows the last ten days of the copper continuous contract
(HG00) to four other squiggly lines:
 The US Dollar index (DXY), which rose by 1%
 The main Gold Bullion ETF (GLD), which dropped by the same amount as copper
 The main copper producers ETF (COPX), which dropped 10% over the two weeks
 The junior PM producers ETF (GDXJ), which dropped 12%
Arguably, the stocks oversold.
However, we first need to find a
clear bottom in the copper price
and as much as I’d like to call
Friday’s rebound as that, by
zooming out the timeline it’s clear
that technicals aren’t out of the
bear move, not yet at least (right):
ts1naJ ht9naJ ht61 dr32 ht03 ht6bef ht31 ht02 ht72 ht6raM ht31 ht02 ht72 dr3rpA ht01 ht71 ht42 ts1yam ht8 ht51
source: IKN calcs

For some light relief to all this negativity we move to Chile and, as well as the good news from
the Constitutional Assembly (see Regional Politics, below) the government leaned into the
positives. First up, the State stats people Cochilco announced it updated estimate for average
copper prices, which was raised to U$4.40/lb for this year (6). Its 2023 forecast remains at
U$3.95/lb. Meanwhile, Minister of Mining and Energy Marcela Hernando took the mike to try
and calm mining industry (and general public) nerves regarding the sudden drop in the price of
copper. She told her country on Friday (translated) (7):
“The first thing to understand is that these changes and fluctuations coincides with the
highly unstable international scenario, generated as much from the effects of the Covid
pandemia as the conflict between Russia and Ukraine.”
As for the consequences, “If (copper) maintains it downward tendency, even though
today saw a small rebound, it could clearly influence the average received price.
However, market forecasts are still above government budgeted levels. We therefore
call for calm and prudence; we should wait and see how the next few weeks evolve
and particularly analyze if we make any changes in our projections, as if supply
bottlenecks are maintained could develop into a scenario of rapid rebound (in copper
prices).”
Minister Hernando sees the same supply deficit as this desk. Now for our weekly look at copper
inventories, data from Cochilco:
 The key word for copper stocks on the week is “modest”, with the real world of copper
seemingly oblivious to the big moves in the metal’s price at market. The overall result
of the three official systems was a modest rise of 7,781 metric tonnes (mt) and a close
above 300kmt for the first time in a while, at 308,097mt
 Another modest addition to SHFE stocks, up 3,081mt to finish Friday at 55,372mt and
more indications from media channels that Shanghai-The-City is coming out of its
government-imposed hard lockdown. However, we reiterate that context is key and
even if SHFE stocks were double today’s number, they’d be historically tight.
 The LME saw a modest addition of 6,975mt copper to its inventory this week, bringing
the round total to 177,000mt. However, the data catching the eye is how cancelled
warrants jumped by 22kmt to 72,025mt, or over 40% of warehouse. That’s either
trading pit chicanery or a sizeable amount of copper that’s about to leave warehouses
to real end users and, considering the tight state of the market, the latter is the most
likely real world outcome.
 To round out a modest week, Comex saw a modest drop of 2,275mt from stocks, the
total this weekend at 75,275mt.
Here are the dedicated SHFE charts and the second, newer visual gives the best indication of
the seasonal aspect of supply tightness. It’s not going away after a couple of weeks that add
7,000mt or so, as the seasonal drawdown will begin soon and then the real fun begins.
Shanghai Futures Exchange Warehouse Stocks, 2014 to date
400000
350000
300000
250000
200000
150000
100000
50000
0
15
31'13ceD dr32 ht02 ht51 ht01 ht5tco ht03 ht52 dn22 ht71 ht21 ht6pes ts1von 5102ht72ced ts12 ht71 ht21 ht7guA dn2tcO ht4ceD ht92 ht62 ts12 ht61 ht01 7102
ht5von
ts13 ht52 dn22 ht42 ht91 ht41 ht9 9102
dr3bef
ts13 ht62 ts12 ht51 ht01 0202ht5naj 0202ts1ram ht62 ts12 ht61 ht11 0202ht6ced ts13 ht82 dr32 ht81 ht21 ht7 2202dn2naj ht72 ht42
Mt Cu
|
source: Cochilco

SHFE copper inventory levels, 2018 to 2022
400000
350000
300000
250000
200000
150000
100000
50000
0
16
1 2 3 4 5 6 7 8 9 01 11 21 31 41 51 61 71 81 91 02 12 22 32 42 52 62 72 82 92 03 13 23 33 43 53 63 73 83 93 04 14 24 34 44 54 64 74 84 94 05 15 25
MT Cu 2022
2021
2020
2019
2018
source: Cochilco data
Now for notes on just one, unfairly picked upon basket stock:
Regulus Resources (REG.v): To pick unfairly on REG once again, its 2.0% drop may look
okay next to its Copper Basket peers this weekend, but…
…its trading on Friday afternoons can safely be called “non-indicative of trend”.
The Producer Basket
After nineteen weeks of 2022, the Producer Basket shows a loss of 3.15% to level stakes:
company ticker price 1/1/22 Shares out MktCap(U$Bn) current pps gain/loss%
1 Newmont NEM 62.02 797.44 52.03 65.25 5.2%
2 Barrick GOLD 19.00 1779 36.34 20.43 7.5%
3 Franco-Nevada FNV 138.29 191.192 25.94 135.68 -1.9%
4 Agnico Eagle AEM 53.14 454.904 23.04 50.64 -4.7%
5 Wheaton PM WPM 42.93 450.3 17.86 39.66 -7.6%
6 Gold Fields GFI 10.99 887.72 10.28 11.58 5.4%
7 Kinross Gold KGC 5.81 1296.5 5.39 4.16 -28.4%
8 B2Gold BTG 3.93 1055.6 4.20 3.98 1.3%
9 Alamos Gold AGI 7.69 392.503 2.77 7.07 -8.1%
10 Sandstorm SAND 6.20 191.4 1.18 6.19 -0.2%
All prices and stock quotes in U$ Port. avg -3.15%
Don’t expect much in the way of positivism from this section. The Producer Basket average
dropped back into negative territory last week, the first time since early February and before
Russia’s invasion of Ukraine (which doesn’t seem to matter any longer, strange world) as all ten

of our components fell hard and joined the overall performance seen in the main sector
benchmarks:
 GDX down 9.8%
 GDXJ down 10.5%
 GLD down 3.78%
In fact, the “best” performance from our list of ten was the 6.8% loss taken by Gold Fields
(GFI), one of just four still in positive territory for the year to date. Worst of the lot was Kinross
(KGC down 15.5%) and most other losers fell around the 8% and 10% range. For what it’s
worth (not much), our basket managed a less-worse week than GDX and the gap we need to
make up is now under 2%, the lowest it’s been all year.
The 2022 Producer Basket: Percentage difference
between GDX benchmark & basket (negative = IKN ahead) 6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
-1.0%
The ray of hope or silver-lining or however you want to frame it came on Friday, when the
market ran out of seller and the PM sector tried to rally. It wasn’t the most convincing of relief
rallies and sentiment petered out as the day wore on, but most of the larger cap stocks either
managed to have a green day or finished all-but UNCH.
Barrick (GOLD) and Newmont (NEM): Here’s a ten-day chart pitting market leaders
Newmont (NEM) and Barrick (GOLD) against gold bullion (GLD proxy) and the GDX:
Barrick beat Newmont over the two weeks and also over the last five days, with NEM dropping
10.5% and Barrick ‘only’ down 8.88%, which I suppose makes its performance lucky in China.
But both are doing better than the ETF in which they feature with heavy relative weighting, the
GDX, which shows how the smaller GDX components have dragged even harder on the ETF.
Also, please note the small-ish news out of Precipitate Gold (PRG.v) in TinyCaps this weekend,
as it has inferences on the continued delay to get a tailings facility permitted and built at the
Pueblo Viejo mine in Dom Rep (60% GOLD, 40% NEM).
Kinross (KGC): The Kinross share price didn’t take a hit from being called Cow Dung (or
similar) by Mark Bristow of Barrick the week before last, but it did on filing its rather smelly
17
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The 2022 Producer Basket: Weekly performance and
35% comparative to GDX control
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
source: IKN calcs, NYSE data
ts1naJ ht9naJ ht61 dr32 ht03 ht6bef ht31 ht02 ht72 ht6ram ht31 ht02 ht72 dr3rpa ht01 ht71 ht42 ts1yam ht8 ht51
ikn
gdx control
source: NYSE, IKN Calcs

1q22 financials on Tuesday, post-close. Tracking KGC
against the GDX benchmark shows the reaction of the
stock and while GDX had a tough time, Special K’s
three days were that much worse than its peers (8).
The drivers of the underperformance are the same
ones we’ve reported at other companies, as a just-
about-in-line production quarter was hit by higher
than estimated costs and analyst downgrades
followed, for example Cormark dropping estimated
2022 annual EPS from 45c to 43c.
The TinyCaps List
After nineteen weeks of 2022, the TinyCaps show a loss of 18.91% 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 10.95 0.295 22.9%
Golden Pursuit GDP.v 0.13 34.638 3.64 0.105 -19.2%
Infield Min INFD.v 0.06 48.276 1.93 0.04 -33.3%
Kingfisher Met KFR.v 0.30 84.57 20.30 0.24 -20.0%
Latin Metals LMS.v 0.12 57.296 6.30 0.11 -8.3%
Manitou Gold MTU.v 0.06 344.47 10.33 0.03 -50.0%
Melkior Res MKR.v 0.295 24.011 6.24 0.26 -11.9%
Precipitate Gold PRG.v 0.105 129.322 9.05 0.07 -33.3%
Signature Res SGU.v 0.07 238.4 13.11 0.055 -21.4%
Winshear Gold WINS.v 0.08 61.585 4.31 0.07 -12.5%
Prices in CAD$, data from TSXV basket avg -18.91%
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.
There were two winners (SGU.v, KFR.v) and of
15% TinyCaps, 2022 weekly tracker
those, Kingfisher saved the average from taking
10%
a bigger average hit by improving a cool 45.5%.
5%
Three others were unchanged (INFD.v, LMS.v,
0%
WINS.v) and that leaves five losers (AUL.v down
-5%
11.9%, GDP.v down 25.0%, MTU.v down 14.3%,
-10%
MKR.v down 10.3%, PRG.v down 20.5%) and as
-15%
they were all big losers, the average dropped
-20%
accordingly. It could have been worse among the
-25%
TinyCaps and the major damage was in those
juniors above them, but bad is bad.
18
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naJ
ht61naJ dr32 ht03 ht6bef ht31 ht02 ht72 ht6ram ht31 ht02 ht72 dr3rpa ht01 ht71 ht42 ts1yam ht8 ht51
source: IKN calcs, TSX data

Kingfisher Metals (KFR.v): This time last
week KFR was 16.5c stock, so even without the
wild swings we saw in the price on Thursday and
Friday, when those buying paid 24c, it would
have been a winning week even if the price had
settled where the sellers were, at or slightly
under 20c. That was all on no news too, not
even word on the 24c and 28c flow-through
placement currently open and trying to raise
$3m, but as noted last weekend we’re now past
the opening date for KFR’s drill season at Cloud
Drifter and its handful of targets, so we should
get something from the company soon.
Precipitate Gold (PRG.v): The news post-close Friday (9) PRG is getting U$5m from Barrick
(GOLD) in exchange for relinquishing control of JV concession areas to the East of the Pueblo
Viejo mine in Dominican Republic adds useful treasury to PRG (the NR estimates C$6.4m), but
it’s more interesting for the Barrick angle. We know the company has been trying to reach a
deal with the government of Dom Rep on its tailings expansion project and, as one of the
conditions of the deal is for condemnation drilling to give expected results, it suggests the
bigger entities are closer to a definitive decision on where to locate the contentious new tailings
project. However, the “when” also suggests at least three months and that’s not so good for
GOLD, the whole process now dragging deeper into 2022 than either company or government
would want.
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 are strictly neutral.
Regional politics
Colombia: La Gran Encuesta puts Petro in front
Sponsored by a suite of established media channels and run by one of the biggest pollsters in
the country under best-practice conditions (face-to-face with the pollster, using vote simulation
papers, flashcards and neutral language) the most respected opinion poll in any Colombia
electoral season is “La Gran Encuesta” and last week, the fourth edition of its 2022 Presidential
race was published. See the whole thing here (10) (it runs to over 50 pages of PDF) but we get
straight to the point with the two slides that matter most:
The May 2022 results (yellow columns, right) see Gustavo Petro stretching his lead and
Federico ‘Fico’ Gutiérrez consolidating his second place position. With third placed Rodolfo
Hernández failing to make progress and fewer undecided+”vote in white”, it would be a major
shock not to see the two frontrunners face off in the second round. In fact, the only other
realistic alternative would be to see Petro get 50%+1 valid votes and win outright in round one.
So with Colombia set for a showdown between Fico and Petro, here’s the other slide from La
19

Gran Encuesta that matters, that of the second round between those candidates:
This is bad news for the right wing, the current government, for some FDI and certainly for the
mining industry in Colombia. There’s now a 13 point gap between the clearly left wing Gustavo
Petro and the right wing’s chosen candidate, Fico Gurtiérrez. The inevitable move toward the
centre by both candidates during this campaign season has so far favoured Petro and among
the sub-categories of the poll, this slide points to the reasons why:
This question has been part of the survey for the last three editions and says, “Do you believe
that Colombia is at risk of ending up the same as Venezuela, in political, social and economic
terms?” As you can see, 60% answered “Yes” and 37% say “No”, ostensibly bad news for a
Left wing candidate such as Petro. However, the small print matters as in January, 69%
answered yes and in March, 66% answered yes. The number of Colombians fearful of their
country going the way of its disastrous neighbour is still high, but it’s dropped by 9% during the
campaign season and that means the “natural ceiling” of Petro votes has moved higher.
Bottom line: Your mining investment money should avoid Colombia, as from now. Two of
those words are underlined and bold-typed, that’s for a good reason
Argentina improving mining scene attracts media attention
This report in the Bloomberg Spanish language wire “Linea” (11) was translated and repeated
in Argentina’s English Language daily, The Buenos Aires Times (12) and, as these pages have
made the point on a dozen different occasions already, today you simply get a copypaste of the
BAT rebound note. The IKN Weekly identified Argentina as the most receptive country for
mining FDI in South America many months ago, the world is now catching up to the idea:
As rivals turn screws on mining, Argentina puts out the welcome mat
Government turns to capital-control loopholes and tax breaks, eyeing export boost as
neighbours look to raise mine taxes.
The pro-mining sentiment from Argentine authorities at an industry event this week
underscores the change of fortunes for what was seen as a much riskier bet than other
mineral-rich nations in Latin America.
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As Chile and Peru discuss tax hikes, tougher environmental standards and even the
possibility of curtailing private property rights, Argentina’s Productive Development
Minister Matias Kulfas was putting out the welcome mat to the much needed hard
currency that mining brings.
“We need more investment and exports because all of Argentina’s economic crises in
the last 80 years were down to a shortage of dollars,” Kulfas told 400 mining officials
and executives gathered in Buenos Aires on Tuesday. "Without a doubt, the
development of mining is part of the solution to the problems in our country."
Without a doubt, Argentina's protectionist inclinations and politically volatile past
means it remains a complicated place to do business. But the cash-strapped nation is
now turning to measures such as capital control loopholes and tax benefits to boost the
attractiveness of developing more of its vast lithium and copper deposits now needed
in the clean energy transition.
At the same time, Chile is drafting a new constitution that could hamper investment,
while politicians in Peru are seeking a greater share of mining profits to boost spending
and ease social pressures. Meanwhile, Mexico is moving towards state control of its
lithium resources.
All this is bringing Argentina out of the shadows of its closest neighbours. Kulfas said
mineral exports could increase five, six or seven times from last year's total of US$3.3
billion.
"To measure our potential, we only need to look at Chile, which shares the Andes but
whose mineral exports are 20 times bigger," said Franco Mignacco, who chairs the
CAEM mining chamber and is the CEO of Minera Exar SA, which is poised to become
Argentina's next lithium-producing operation. "Can we really match that development?
The answer is a wholehearted 'yes'."
Over the last nine months, theLondon-based Rio Tinto Group, Vancouver-based
Lithium Americas Corp, South Korea's Posco and China's Zijin Mining Group Co have
all committed to investments in Argentina’s lithium sector.
As further evidence of Argentina's growing attractiveness as a mining region, Mignacco
pointed to a portfolio of copper projects, including Josemaría, recently acquired by
Lundin Ming Corp, McEwen Mining Inc's Los Azules and Glencore Plc's El Pachon,
and five silver projects in various stages of pre-production.
Chile: The Constitutional Assembly votes down major changes to mining laws and
the government pushes its positive mining agenda on mining
Firstly, we draw your attention to the news from Chile’s Constitutional Assembly this weekend,
as yesterday was the last day for the main 155 seat assembly to vote up proposals and get
them in the draft constitution. As a result, the Environmental Commission (the hard Left
commission that pushed the law projects to nationalize Chile’s mining industry) proposed
several variations of its contentious Article 27 project, each proposing constitutional reforms
that the mining companies would not like. Some were less dangerous or polemic than others
but the only thing that matters is that not one of the variations garnered enough votes. As a
result, Chile’s draft Constitution is largely inoffensive toward is mining industry and whatever
happens in the national vote in September, mining won’t see much effect. Here’s The Guardian
on the vote as regards mining (13):
The country’s environmental commission submitted multiple variations of the article to
a vote on Saturday, but they all failed to achieve the 103-vote supermajority needed to
pass into the draft constitution.
However, a separate clause, article 25, which states that miners must set aside
“resources to repair damage” to the environment and harmful effects where mining
takes place, did get a supermajority and will be in the draft constitution.
The assembly also approved banning mining in glaciers, protected areas and regions
essential to protecting the water system.
This result should lift at least some of the negativity that’s been weighing on Chilean exposed
mining stocks in 2022.
In other news, On Thursday, BHP laid on an official opening ceremony for its recently expanded
Spence copper mine in Northern Chile and the ribbon cutting for the new concentrate mill was
left to the Vice-Minister of Mining, Willy Kracht (who reports to the new and so-far impressive
Minister of Mining and Energy, Marcela Hernando) to do the honours. However, the reason to
report on this event is the speech Kracht gave to those present, which was strongly pro-mining
21

and was designed to let the industry know that, whatever rules come out of the Constitutional
Commission and whatever result comes from the eventual national referendum, the Boric
government would make sure the mining industry was still viable in Chile. Here are a couple of
quotes to give the flavour (14):
"Our task as a government is to generate the conditions to remain a mining country. In
a world in which the simple debate of new rules generates concern, we know that we
have an important role in managing a process of dialogue and participation which will
allow us to improve the current mining laws as laid out in the constitution, in order to
remain as a mining country"
We are sure that we will be able to deliver the clarity and security required, and we can
proudly say that in the decades to come that we (Chile) will continue to be an
international leader among mining countries."
All good. The reply speech given by Mike Henry (15), executive director of BHP Chile (also
translated, as Mr. Henry spoke in Spanish), made it clear that FDI was currently in carrot and
stick mode when it comes to Chile, something that would not have gone un-noticed by the
government:
“We want to grow in Chile and we are advancing studies to do so. Under the right
conditions, there could be space for large-scale investment.”
Peru: Trying to stick to mining-only news
Even compared to its normal level of chaos, the political scene in Peru is currently a complete
mess and dysfunction is all around. We could go into the way Congress is stakcing the deck of
the Supreme Court, the accusations of plagiarism against the President and his wife for their
masters’ theses or the new accusations about the 2021 election being fixed, those just for
starters, but today we’re going to try hard to keep to matters involving the mining industry
directly:
First, last week along with the Prime Minister and two other ministers, Peru Minister Energy
and Mining Carlos Palacios faced Congress an accused of being unqualified for his post, as well
as dereliction of duty on a number of matters. The result seems to be that a “motion of
censure” (quasi-impeachment against a minister) will now move forward and, assuming
Congress gets enough votes, means he will be kicked out of his post. For what it’s worth, the
same mechanism may be used against the other ministers and the Prime Minister Anibal Torres
and if he falls, the whole cabinet must be changed.
Second subject and much to the shame of the country, it has been suspended (pending
disqualification) from the International Initiative for the Transparency of Extractive Industries,
known as EITI whose member ship includes every serious mining country and is a coveted
qualification for new mining states. Due to non-compliance on transparency by the Ministry of
Energy and Mines (MINEM). The EITI rules require independent consultants to ratify
government figures but for the first time in decades, the disorganization inside MINEM resulted
in Peru failing to comply with the basic regulations. According to Peru’s main chamber of
mining, the National Society of Mining, Petroleum and Energy (SNMPE):
“The repeated exhortations to prioritize and speed up the procedure that allows us to
advance in the fulfillment of our commitment as a country, were not taken on time by
the MINEM and today the work carried out in the last 16 years in favor of transparency
and the strengthening of the governance of extractive industries in Peru is at serious
risk of being lost.”
With this only two countries are in non-compliance with EITI and are currently suspended,
namely Peru and Tanzania, and speaks volumes of the lack of transparency inside the current
administration.
Meanwhile we need to stress that no-one is innocent in Peru and last week bore witness to the
normal levels of arrogance and the complete lack of introspection from its mining sector
moguls. The SNMPE hosted the annual three day Gold Symposium at a top Lima hotel (in fact,
22

now called the “Gold, Silver and Copper Symposium”, with each metal getting its own focus day
and according to Carlos Castro, the director of Corporate Affairs and Business Development at
Las Bambas, his company is a simple innocent victim of its neighbours (16). We quote
(translated):
“A business of conflict has been generated around us, there are conflict sellers. They
are people dedicated to generating, possibly, exaggerated expectations in certain
communities and making them believe their interests are legitimate.”
Apparently, Las Bambas has been nothing but a good actor in its locality, despite promising and
failing to deliver on an endless list of agreements with local communities and then wondering
why they are so hated. Instead it prefers to single out a couple of extreme cases in which
middlemen have tried to muscle in on the bad blood between company and locals, painting that
as a normal state of affairs.
Meanwhile conference organizer and General Counsel & Vice Presidente Corporate Affairs de
Hochschild Mining Plc, José Augusto Palma, telling the assembled figures (who included Tom
Palmer of Newmont) what they want to hear, that it’s not their fault Peru’s mining industry has
problems (17):
“We are seeing that even though we have projects to develop, they are not advancing.
This happens for two reasons, one is social conflict. An investor who comes to the
country for the first time and sees what is happening, the fact is that they will think
twice. Therefore, we have to find a way of lessening social conflicts. And the second
problem is permitting.”
For sure his points are based in facts and there’s no doubt that news about ongoing social
conflicts around mining projects is a net negative for country image among FDI, but framing
that as the reasons behind the impasse is simply wrong. Also true for permitting and that has
been infamously slow in recent times, but in Señor Palma’s words (18), “If Hecla or another
mining company thinks of investing in Peru and realizes that it will take between 12 and 18
months to get exploration permits, while in Colombia only 6 months, it’s clear it will go to
Argentina or some other country.” Well….no, not really, mining companies go to where the
deposits are and then suffer the bureaucracy, we know that. He also uses deception when
trying to explain why projects haven’t moved forward into production and uses the example of
Corani (Bear Creek Mining (BCM.v) in the silver space as his example:
“Corani is the most advanced (silver) project and closest the start of construction. A the
moment it is looking for financing, which is now more complicated to achieve due to the
higher country risk and political instability.”
He forgets a couple of minor details: 1) Corani is fully permitted and 2) it has marginal
economics and for that reason, not for any country risk, has been passed over by a long list of
tier 1 and tier 2 miners. We are left with communities blaming mining companies and the
government, the government blaming mining companies and mining companies blaming the
government and communities. Everyone is in the right, all the others are wrong and none of
the actors have enough self-awareness to tone down the high-handed rhetoric and attempt
genuine dialogue. However, we will end on an optimistic note because away from the polemic
projects and conflict zones, Newmont (NEM) has made real progress in its low-key ESG efforts
and is now likely to green light the U$2Bn expansion at its (now 100% owned) Yanacocha mine
in Cajamarca, turning it into a sulphides mine that will produce more revenue from copper than
from gold for the next 20 years or so. Let’s hope that autoclave works at altitude.
Brazil: Lula gets a poll bump
On the back of the start of his official campaign, challenger Lula da Silva has enjoyed and small
improvement in voter intention for the October Presidential election. Here’s Reuters Canada
reporting on the results of two major nationwide polls published last week (19), here’s an
excerpt:
If the election were held today, Lula would win 46% of the votes against 29% for
Bolsonaro, an advantage that has risen to 17 percentage points from 14 points in April.
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Lula is now within the poll's margin of error for reaching 50% of the votes and winning
the election outright, according to the Quaest survey.
If the race goes to a second-round runoff, Lula would defeat Bolsonaro by 54% versus
34%, it said.
The PoderData poll has Lula winning a first-round vote by 42% of the votes against
35%, small changes that are within the margin of error. Two weeks ago the race was at
41% versus 36%.
The way in which Brazilians show a tendency to vote tactically may see momentum run toward
Lula in the weeks to come and a first round victory (50%+1 vote) is a reasonable possibility.
Even so, on current numbers Lula would be red-hot favourite to win in the second-round run-off
and that would mean another LatAm country showing a clear left shift. The list is growing long.
LatAm forex and the influence of the Left
The US Dollar has been on a run to remember, we know that, but its effects among the major
traded LatAm currencies has been disparate. Here’s a somewhat clunky chart from Yahoo
Finance showing the last month in USD trading on the five that matter, namely (and in order of
economic size) Brazil’s Real, Mexico’s Peso, Argentina’s Peso, Colombia’s Peso, Chile’s Peso and
Peru’s Sol:
While Peru’s Sol (PEN) continues to be a favourite (the Central Bank has raised rates to 4.5%
and continues to ratchet up a half point every month, making it a favoured safe carry trade for
forex partners), the polling gain denoting a shift left in both Colombia (Petro) and Brazil (Lula)
have hit those countries hardest. Chile’s Peso typically fluctuates with the fate of its main export
copper and Argentina’s official currency rate is on a crawling peg and the 177 here is only half
the story, as the semi-official “Dolar Blue” is now over 200 to the USD.
Market Watching
Starcore International (SAM.to) and an arbitrage opportunity
Starcore International (SAM.to) is a company we once owned and traded, though not with
much success. Its main asset is a small gold mine in the central region of Mexico, with a
handful of other land assets on its books. Undercapitalized and run by management seemingly
happy with its lot, SAM is the type of value trap I’ve learned to avoid over the years.
However, last week brought interesting news regarding the company as a Mexico private equity
fund known as Grupo Semper is seemingly ready to offer C$0.35 per share to take over SAM.
There’s nothing friendly about the apparent offer, either, as Semper has tried to engage SAM
management in talks only to be rebuffed, another classic signal of the type of entrenched
management and boards of directors so common in the Canadian public company scene. Here’s
the press release from Semper dated post-close Thursday May 12th (20) entitled “Grupo Semper
Announces Intention to Acquire Starcore International Mines Ltd.” that duly announced its
intention to buy out SAM at 35c per share (though the formal offer is not yet in place). Go
reads the whole thing, but the section of most interest is this:
24

Background to the Offer
Semper first approached Starcore in April 2022 to discuss a collaborative strategic
transaction and with the objective of working collaboratively with Semper to negotiate a
mutually-beneficial, board-supported transaction. Semper submitted an acquisition
proposal to Starcore on April 19, 2022 based exclusively on publicly available
information and with an offer price representing a significant premium of 42% based on
the closing price of the Starcore Shares on April 19, 2022 and a 52% premium to the
20-day volume-weighted average share prices for the period ended April 19, 2022.
While numerous subsequent attempts to correspond with Starcore were made,
ultimately Starcore, through its counsel, declined to engage with Semper and rejected
Semper's proposal without any discussion. Semper believes Starcore's view fails to
recognize the developmental and capital market realities facing Starcore's operations
now and in the future.
Despite Starcore's rejection, Semper submitted a further proposal on May 2, 2022 with
the increased Offer price. Semper firmly believes it is in the best interest of all
Shareholders to be made aware of its efforts in this regard and be given the
opportunity to opine directly on the Offer. As such, Semper now intends to take its
Offer directly to the Shareholders.
Semper remains open to engaging directly with Starcore on fair and balanced terms.
Semper has made prior proposals to Starcore in good faith, with an objective of
receiving access to confirmatory due diligence to support a valuation for the company.
Semper has made this Offer based exclusively on publicly available information.
That’s no fly-by-night speculative tilt, this is going to be a serious hostile. In reply, And here’s
the initial response from SAM dated Friday May 13th (21):
Vancouver, British Columbia--(Newsfile Corp. - May 13, 2022) - Starcore International
Mines Inc. (TSX: SAM) ("Starcore" or the "Company") confirms that it is aware of the
announcement of the intention to make an unsolicited offer by Semper Recursos
Naturales S.A. de C.V. ("Semper") for the outstanding common shares of Starcore at a
price of $0.35 per common share. Shareholders are cautioned that no bid has been
commenced, and in accordance with Canadian securities laws, any offer made will be
open for a minimum of 105 days. Shareholders do not need to take any action at this
time.
As for the share price, that took a significant hike on the news but is still trading well below the
apparent 35c cash offer. That’s not an official deal yet, but the private moves before this news
went public have the right loom about them and Semper is big enough to be taken seriously for
this type of deal size.
As this two year chart shows, a 35c deal will look attractive to long-term (bag)holders of SAM
compared to its trajectory. And as mentioned in the preamble, one of the main issues at this
company is the lack of capital and investment potential, something that Semper would
presumably be able to fix.
25

The latest balance sheet from SAM dated to January 31st (its 3q22 period) shows a slight
improvement in cash, no debt and very low overall liabilities and book value (or equity) of
C$37.436m. It has 49.465m shares out, no outstanding options, no outstanding warrants,
1.655m RSUs and 2.525m DSUs. Add those together and the C$0.35 offer price would value the
company at C$18.78m (plus change of control deals on current NEOs are not steep). Long story
short, SAM is trading at half its book value and is the quickest explanation as to why it’s an
attractive target for Mexican private equity.
It also makes SAM an interesting arbitrage opportunity for us, third party players looking upon
the impending fight for control. At the very least, the entrenched management at SAM will have
to come up with good reasons as to why they should command shareholder support compared
to a solid 35c cash offer which, as per Friday’s close, indicates a pre-commish 22.8% arbitrage.
However, the space between the Grupo Semper (proposed) offer and SAM book value also
suggests room for more, be that either an improved offer for the aggressor or a White Knight
brought in by current SAM management.
Summing up, three points:
 Grupo Semper’s deal is not formally on the table yet, but it has all the air of a serious
26

offer backed with real cash.
 It’s set to be a hostile takeover bid, so there’s no guarantee of success and present
SAM management, entrenched or not, will try their hardest to keep their position.
 For us on the outside looking in, there are reasons to take to arbitrage opportunity. The
current 22% or so between Friday’s close and the apparent offer is attractive, plus
according to the balance sheet there’s clearly room for Semper or perhaps A.N. Other
to come in and improve the 35c bid.
Make of this what you will. Personally I’m selling things next week, not buying into an arb deal
and that’s what I’m doing with my money. Don’t take that as a red flag, however, as one
person’s money movements do not detract from the clear math in favour of an arb intervention
on this deal. Ultimately, I may have a pocket calculator that works and an eye on the juniors
market, but I’m also a retail investor with other things to do with my cash.
Argonaut Gold (AR.to) and The Magino Mess
“To lose one parent, Mr Worthing, may
be regarded as a misfortune; to lose
both looks like carelessness.”
Lady Bracknell, The Importance of Being Earnest, Oscar Wilde
Your author clearly recollects writing and publishing IKN656, dated December 19th 2021, as
that was the issue in which we called ‘sell’ on what was to that point a large position among the
precious metals developer trades, a built position that sat behind only Minera Alamos and Rio2.
That weekend, Argonaut Gold (AR.to) has just delivered a whopping capex increase on its main
Magino project to market and canned its then-CEO at the same time. After considering the
trade for a few days, the decision was to take the painful loss and move on, which was a hit in
both percentage and real dollar terms as it wasn’t a minor spec position.
It’s one thing to swing and miss on a high risk/high reward spec trade, another matter entirely
to lose 27% on a chunky position (and one that had been running weeks until just a few weeks
before the bad news, too), but sell I did and eventually got out at C$2.15. Painful though it
was, that decision doesn’t look so bad in hindsight as last week, AR delivered more bad news
on Magino capex as part of its 1q22 financial filings. Here’s the NR (22), here’s the line that
mattered…
“…the Company estimates that the updated EAC is likely to be approximately 15%
higher than the previously reported EAC of C$800 million (see December 14, 2021
press release).”
…and here below left is the ten-day chart to show how the market reacted:
It gets worse when we open the timescale to six months (above right) and see both the capex
hits on the same graph next to GDX, we get an idea of how badly the Magino build-out has
gone. From C$3.25 to C$1.25 in less than two quarters.
27

Unfortunately, last week’s reaction is fully deserved by AR and for the reason, we go back to
the IKN538 write-up and my observations on the management conference call that week. In
the call, the team went into great detail and used a range of charts and visuals to assuage irate
shareholders and those watching that C$800m would be the whole thing. Indeed and as quoted
on the blog last week (23), they went out of their way to assure shareholders:
Level of Confidence Going Forward
Argonaut has a much higher level of confidence in the current EAC now that it is a year
into the Project, has worked through the process facilities’ foundational preparation
challenges that were encountered due to rock unevenness, stripped approximately
75% of the TMF area and completed construction of approximately 20% of the
TMF. Going forward, many of the unknowns when the Project commenced were in the
area of civil works and are now very well known. The bulk of the remaining work is
primarily construction-related (i.e. bolting items together). With the remaining civil work
is better defined and understood, the Company believes the risk of further significant
increases to the EAC are low with a significant contingency in place.
As a result, here’s what I wrote in IKN538:
“On the whole, they did a good job of the bad news and I came away with
the impression that C$800m really was the whole game (and if it weren’t woe
betide them all).”
One of those moments when you’re glad to have made an extra comment in parentheses. Last
week’s drop was “woe betide them all” in action. Fool me once shame on you, fool me twice
shame on me and if you don’t realize that AR management decided to continue to lie, fudge
and hope back in the third week of December when announcing its new capex number, you
need to unsubscribe from this publication now, sell all your exposure to all mining companies
and find a better place for your investments, trades and speculations than the mining sector.
The team at AR may have hoped to keep Magino capex at C$800m back in December but the
way in which they reiterated and stated with such confidence that there wouldn’t be any more
on top, then come back with $120m added to the bill just five months later, is the epitome of
despicable. This was not unfortunate, nor was it a simile of the carelessness voiced by Lady
Bracknell, this was outright deception and AR’s board of directors should hang their heads in
shame. Finally and for those of you not about to abandon the junior mining sector, the least
you should do is make a careful note of the names of those involved in the confection of the
December 14th NR and subsequent Conference Call and never back them with a single penny of
your cash again. It’s the only language that myopic, self-centred capitalists understand. Very
glad to have sold in December.
Moneta Gold (ME.to): The Tower Gold resource update arrives
Five weeks ago in IKN673, dated April 10th, we ran “A quick note on Moneta Gold (ME.to)” that
reported on an hour-long conference call I had with the people at Moneta Gold (ME.to). It was
a good call and got me far more interested in the company and its story than before; it was
also a heads-up on the resource update that ME.to was finalizing at that time. Here’s a segment
from the brief note from IKN673:
“ME is now on my radar as a potential trade and may or may not get further coverage
here at the IKN Weekly in future editions, but the reason it gets a mention today is
that we can expect a resource update from the company in the next few days. During
the call, ME didn’t keep much of a secret about the way it expects a meaningful
addition to its resource numbers thanks to the recent drill work and if they did that
with me, they’ve told plenty of other people the same story. With the stock having
moved well recently (right), this may be a “buy the rumour, sell the news” moment for
ME.to and if so, a retrace to lower levels once the resource update is done would
make it a more attractive long-term proposition. One for the radar and with a resource
about to go over 10m oz gold, one that may well make plenty of noise this month.”
As it happens, it took until the second week of May for the resource update, rather than April.
Last Thursday MR published this (24) which headlined a new updated resource. Here are the
28

top two bullet points, there’s plenty more in the NR linked if you want more information:
Highlights of the Updated Tower Gold Mineral Resource Estimate:
 70% increase in total contained Au to 7,496,000 oz (combined underground and
open pit) in the inferred category on the Tower Gold project
 Addition of 3,097,000 oz of total inferred gold resources
 8% increase in total contained Au to 4,265,000 oz (combined underground and open
pit) in the indicated category on the Tower Gold project
 Addition of 298,000 oz of total indicated gold resources
That 11.76m oz in all-categories gold compares to the previous 8.5m oz total and puts ME
neatly above the 10m oz milestone, the size of
project that majors tend to require. CEO Gary
O’Connor declared the company “extremely
pleased with the outcome of this mineral
resource estimate update for the Tower Gold
project” as you’d expect, but we also got the
same type of “buy rumour/sell news” price
action we mused about in IKN673.
I wasn’t the only person contacted by ME.to in
April and, while there was a very-near-term
trade in the cards as the stock moved from
C$2.40 (IKN673) to top out at C$2.94, eight
days later on April 18th, the run was nipped by
either profit-takers or the newly bearish
market backdrop (probably both). Here’s the last ten days of ME (black line), compared to the
GDXJ benchmark (gold) in these difficult bear market times:
Bottom line: By luck or judgement, the first mention of ME.to came with the stock at C$2.40
and the resource at 8.5m oz gold and those basic numbers have swung in the favour of those
of us on the outside looking in. Last week Moneta Gold (ME.to) delivered a strong resource
update to market last week and over 11.5m oz of all-categories 43-101 gold is a serious
resource in a Tier One jurisdiction and demands both respect and attention, but that didn’t stop
MR.to from selling off and, in the current market atmosphere, it’s difficult to predict what might
happen or where the stock price will level out. When it does and once we have something akin
to a stable market backdrop, MR and its re-worked story is one that may offer a good trade
opportunity but for the time being I have enough on my plate as it is, so watching brief only.
Solaris Resources (SLS.to): Warke buys and Beaty sells
The Solaris Resources (SLS.to) 2022 Management Information Circular (MIC), presenting the
necessary information for the company’s upcoming AGM, contained an interesting snippet on
share ownership. First we dial up the 2021 version, which listed those shareholders with more
29

than 10% ownership:
Table from SLS 2021 MIC
At the time, the SLS central figure Richard Warke owned 34.6m shares, representing 32% of
shares out, and Equinox Gold (EQX.v) as previous owners of Warintza (plus other assets now in
SLS) owned 17.8m shares, or 16.5% of shares out. Now for the latest MIC, filed to SEDAR on
Friday:
Table from SLS 2022 MIC
In the 12 months between the two MICs, Richard Warke has added 4,743,500 shares to his
holding, which now stands at 35.64% of total shares out. Meanwhile, EQX has dropped its
position by exactly four million shares and now holds 12.52% of SLS shares out.
We know SLS was a high-flying stock in 2019 and 2020, but the last year or so has seen its
share price top out and as this six month chart indicates, it’s even showed signs of under-
performing peers in recent months. Nothing drastic and the recent sell-off has affected the sub-
sector, not just SLS, but there are a few question marks appearing on the horizon about the
company’s prospects. We can add EQX’s insistence on selling to the Ecuador national scene
(and regular readers know how Anti-
Ecuador mining your author is), but there’s
also the rise in talk of a moratorium on
development to be imposed on the project
by the Shuar locals, as from 2023 when the
current community agreement comes to the
end of its time (25). Locals are concerned
that they will not benefit from the
development of the mine as previously
promised and want to see their younger
generation suitably sponsored and
educated with formal mining qualifications
before the project moves forward. This may
be a bone of contention that’s removed
before the current community agreement
comes to an end, or it may not.
Conclusion
IKN678 is done, we end with bullet points:
 I’m not expecting this to be a popular edition of The IKN Weekly. It’s doesn’t contain a
brave or rousing “Keep The Faith!” message about gold and the junior miners, it’s not
trying to be brave in the face of financial danger, it’s not what the newsletter world is
supposed to deliver to an audience. But that’s okay, this is about capital preservation in
light of a newly bearish macro dynamic for risk stocks. Trimming the sails is the
prudent course of action when up against a Fed that will apparently stop at nothing,
including welcoming in a recession, in order to stop inflation from getting any worse.
 At least the political news from South America’s Southern Cone is positive for the
mining industry, as Chile and Argentina are back as places to go exploring for rocks.
 In the meantime, I hope I’m wrong about reducing exposure and the market zooms
back immediately, in the days ahead would be perfect in fact. It would suit my net long
portfolio just fine but, as I need to be realistic, the way forward is to Hold Quality
30

Stocks and wait for the next opportunity to deploy newly raised cash.
I thank you in advance for any feedback. Our Top Pick stocks are Minera Alamos (MAI.v) and
Rio2 Ltd (RIO.v). Flash updates will be sent if required by events.
I wish you good trading fortune, ladies and gentlemen.
Best wishes, Mark
Footnotes, appendices, references, disclaimer
(1) https://www.marketwatch.com/story/high-u-s-inflation-shows-little-sign-of-abating-feds-beige-book-finds-
11650480110
(2) https://www.forexlive.com/centralbank/fed-chair-powell-says-factors-outside-the-feds-control-may-mean-a-hard-
landing-20220512/
(3) https://iknnews.com/relative-weakness-in-juniors/
(4) https://aldebaranresources.com/news-releases/2022/aldebaran-reports-additional-drill-results-from-the-altar-copper-
gold-project-and-announces-exercise-of-warrants-by-route-one/
(5) https://www.gbreports.com/publication/peru-mining-2022-pre-release-2
(6) https://www.cochilco.cl/Paginas/Sala-de-Prensa/Noticias.aspx?ID=549
(7) https://www.mch.cl/2022/05/13/ministra-marcela-hernando-hace-llamado-a-la-calma-y-a-la-prudencia-debido-a-la-
baja-del-cobre/
(8) http://kinross.com/investor-centre.aspx
(9) https://www.precipitategold.com/news/2022/precipitate-receives-usdollar50m-cash-and-3-nsr-from-barrick-for-
relinquishing-non-core-areas-of-pueblo-grande-project-in-amendment-to-ongoing-exploration-earn-in-agreement
(10) https://www.elcolombiano.com/colombia/gustavo-petro-federico-gutierrez-rodolfo-hernandez-y-sergio-fajardo-en-
encuesta-de-elecciones-2022-colombia-NF17475019
(11) https://www.bloomberglinea.com/2022/05/12/a-diferencia-de-otros-paises-de-la-region-argentina-da-la-bienvenida-
a-la-mineria/
(12) https://batimes.com.ar/news/economy/as-rivals-turn-screws-on-mining-argentina-puts-out-the-welcome-mat.phtml
(13) https://www.theguardian.com/world/2022/may/15/chiles-constitutional-assembly-rejects-plans-to-nationalise-parts-
of-mining-sector
(14) https://www.df.cl/empresas/mineria/kracht-nuestra-tarea-es-generar-condiciones-para-seguir-siendo-un-pais
(15) https://mineriaenlinea.com/2022/05/bhp-apunta-a-la-expansion-en-chile-si-se-dan-las-condiciones-adecuadas-dice-
su-consejero-delegado/
(16) https://proactivo.com.pe/carlos-castro-ejecutivo-de-las-bambas-se-ha-generado-un-negocio-alrededor-del-conflicto/
(17) https://elcomercio.pe/economia/mineria-nos-falta-una-estrategia-clara-para-sacar-adelante-la-cartera-de-proyectos-
mineros-cobre-noticia/
(18) https://www.bnamericas.com/en/news/snmpe-expresses-concern-that-peru-was-suspended-from-the-international-
initiative-for-the-transparency-of-extractive-industries-eiti
(19) https://www.reuters.com/world/americas/bolsonaro-attacks-brazil-voting-system-losing-him-moderate-voters-poll-
says-2022-05-11/
(20) https://finance.yahoo.com/news/grupo-semper-announces-intention-acquire-212200769.html
(21) https://finance.yahoo.com/news/starcore-responds-announcement-intention-unsolicited-202700830.html
31

(22) https://www.argonautgold.com/English/news-and-events/news-releases/news-releases-details/2022/Argonaut-
Gold-Announces-First-Quarter-Production-of-55516-Gold-Equivalent-Ounces-Cash-Flow1-of-25-Million-and-Provides-
Magino-Construction-Project-Update/default.aspx
(23) https://iknnews.com/shame-on-you-argonaut-gold-ar-to/
(24) https://www.monetagold.com/news/press-releases/news-details/2022/Moneta-Increases-Resources-to-4265000-
Oz-Gold-Indicated-and-7496000-Oz-Gold-Inferred-at-Tower-Gold-Project/default.aspx
(25) https://www.eluniverso.com/noticias/ecuador/warints-y-yawi-los-shuar-que-abrieron-la-selva-a-la-mineria-nota/
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
32

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
33

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.
34