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The IKN Weekly
Week 682, June 12th 2022
Contents
This Week: In Today’s edition, Fed Day Wednesday, That 70s Show.
Fundamental Analysis: Anacortes Mining Corp (XYZ.v): Time to add to the radar.
Stocks to Follow: Rio2 Ltd (RIO.v), Discovery Silver (DSV.v), Aldebaran (ALDE.v), Palamina
Corp (PA.v), Electra Battery Materials (ELBM.v), Newcore Gold (NCAU.v).
Copper Basket: Overview, Nevada Copper (NCU.to), Copper Mountain (CMMC.to).
Producer Basket: Overview, Alamos (AGI), Gold Fields (GFI).
TinyCaps Basket: Overview, Kingfisher (KFR.v).
Regional Politics: Argentina’s major cabinet reshuffle, The Colombia Presidential election
run-off: A big day for Colombia next Sunday, Chilean lawyers on Chile’s mining laws, PDAC and
LatAm.
Market Watching: Deferred.
I remind subscribers that no part of this newsletter can be copied, reproduced or
given to any third party without the express permission of the author.
This Week
In Today’s Edition
 Today’s main fundies note focuses on a company that I’m not going to buy, but is
certainly appealing at today’s price deck and is about to move into a new chapter of
better newsflow. That’s Anacortes (XYZ.v)
 The title line of this week’s main intro note is hardly original, but the prospect of a 70’s
style economic stagflation is now on the rise. Friday’s gold pop saw the monetary metal
rise even as the US Dollar rallied, which was a telling move. That’s Anacortes Mining
Corp (XYZ.v) and even if you don’t buy, it’s time to add this to the radar.
 Colombia’s Presidential election is going down to the wire. That’s today’s main Regional
Politics note as we preview next weekend’s very important election for the regional
mining sector.
 What with PDAC next week, there was something of a dearth of news releases and
happenings. We still find things to talk about, though.
Fed Day Wednesday
You’ve been primed by now for the Wednesday FOMC in which Jay Powell and friends are
expected to raise the Fed Funds rate by 50 basis points (bps) at 2pm local time. As previously
mentioned on these pages, this FOMC also comes with a “dot plot” reading then at 2:30pm, Jay
Powell answers questions at scheduled presser. So that, along with the dot plot and the
communiqué give Fedwatchers plenty of opportunity to interpret and decide.
However, earlier on Wednesday brings another interesting set of numbers as US retail sales for
May are scheduled pre-market open. While normally a second-level set of numbers, this week
may make them into market movers if the +0.2% consensus isn’t reached and a soft number
stokes fears of Stagflation.
1

That 70s Show
On Friday, Peru’s Central Bank under the auspices of the only adult in Peru’s room, Julio
Velarde, added another of its regular half-point-per-month hikes to its base interest rates-
Peru’s base rate now stand at +5.5%, but trail those of Chile which saw a hike to +9% just two
days earlier. Meanwhile in Colombia, all eyes are on the tight Presidential election run-off, but
the its next Central Bank policy meeting is set for the end of this month at which, the Central
Bank is widely expected to hike rates from +6.0% to +7.5% in one fell swoop.
And that’s just the serious South American countries (financially speaking). Start straying into
the heterodox economies and data get wilder, for example #1 Basket Case Argentina, which is
now on course for a +72% inflation rate for 2022 (no decimal points missing). In response its
government has gone full Keynes, e.g. the law project presented Monday to charge a heavy
windfall tax on businesses “benefiting from The Ukraine War” (they are talking about the
grain/soybean producers, not gun or missile makers). Over in Brazil, a small ray of hope last
week saw its headline inflation CPI reading come in at +0.47% for May, implying a 12 month
rolling rate of +11.73%. That compared with analysts expectations of +0.6% and +11.84%
and is a Pyrrhic victory if ever there were one. In order to begin to get a handle on its galloping
inflation, Brazil has had to move base rates from +2.0% in March 2021 to today’s 12.75% and
slam the brakes on its GDP growth, something US macro watchers may want to reflect upon.
That quick waltz around the relevant economies of South America is done to give context to the
numbers we saw out of The USA on Friday and how they affected our sector’s focus metal,
gold. First the CPI number of +8.6% (+6.0% core, sans food and energy) went a long way to
confirm the negative sentiment going into Friday and gold reacted accordingly, the market now
debating as to whether Jay Powell and Co raise by “only 50bps” next week or whether 75bpd is
on the table. Then came the reversal and I’ll leave it to a wire report and one the talking heads
on the journalist’s Rolodex (or speed-dial/WhatsApp/Twitter DM, it’s 2022 after all). Here’s
CNBC, giving us the mainstream narrative (1):
But the safe-haven asset soon erased losses as investors assessed the economic
repercussions, with bullion getting a further fillip after the University of Michigan’s
survey showed U.S. consumer sentiment plunged to a record low in early June amid
soaring gasoline prices.
“Gold has had a manic roller coaster ride, dropping to lows of the month before rallying
sharply on the CPI report and bouncing back again on the worst consumer sentiment
report on record,” said Tai Wong, an independent metals trader in New York.
It occurred to the market that the US Dollar may not be the safe haven that they assumed, not
with a US economy threatening to stagnate while inflation remains stubbornly high. The
portmanteau is well known to this esteemed audience.
However, Friday was not a case of the classic “dollar down, gold up” and the most interesting
part of gold’s move was that it came in the face of renewed USD strength. The DXY index had
peaked at just under 105 in early May and was under 102 at the start of the week, so the pop
on Friday to close at 104.19 catches the eye.
2

It also allows a second look at the stagflation
talk, as this chart taking in the period since
Russia invaded Ukraine shows how the war
and its direct effects on the world news cycle
was the driver for financial moves. Then The
Fed and its policy signalling took over and
the market reacted accordingly to Jay Powell
and his “we’ll be aggressive against inflation”
language. We know sharper hikes got baked
in, we know “the fight against inflation took
over the narrative, we know gold sold off as
the market assumed The Fed would get in
front of the problem. As seen in the “Flation”
segment of this chart, we saw the classic
waltz between Dollar and the monetary metal doing its AntiDollar thing. But the last three
weeks or so have seen “surprising resilience in gold”, to quote that same CNBC report and its
down-the-line narrative once again:
Gold prices have been “remarkably resilient given (rate) hiking expectations, and a
softening physical market” on concerns that inflation may outpace rate hikes, said
Standard Chartered analyst Suki Cooper.
Suki Cooper may be surprised, but that chart indicates that there were enough people ready to
bet on gold ignoring any further strength in the USD and the future may surprise the analysts
at TD Sec, too. A final quote from that CNBC piece:
“However, gold will likely give up all these gains and trend lower toward below
$1,800/oz, as policy rates rise sharply,” analysts at TD Securities said in a note.
And that’s enough mainstream blather. There’s good reason for Friday’s gold price rally, don’t
fall for the talk about surprising anomalies or temporary, illogical blips. Financial reporters and
Wall St. brokers would do well to check Google and any definition of negative real interest rates
and how they correlate with the price of gold. We know rising real rates adversely impact gold,
but if The Fed starts its catch-up from its current Fed funds rate (0.75%-1%) and US CPI core
inflation is at 6.0% (let alone fuel and food), that’s 500 points of catch-up to make at 50 (or
75?) at a time and allows plenty of time to decide whether inflation is going to keep galloping
onward or get reeled in.
Therefore gold’s move on Friday was wholly logical, as not only are we in deep negative real
interest rates (and gold’s neutrality is therefore attractive), but we’re at the behest of a Fed
that doesn’t know whether its hardline policies will cause a hard landing (i.e. recession) and
what’s more, doesn’t seem to care. After unleashing the genii from the bottle by going too
loose for too long and getting that “it’s only a transitory blip” call 100% wrong, the Fed’s lost
credibility is also a factor playing against the US economy and, as Goldman Sachs warned only
last month, nobody thinks the U.S Dollar will remain highly priced if recession or stagflation
comes to town. That may suit other safe havens such as the Japanese Yen first, but it’s also the
classic fear trade set-up that suits gold bullion to a tee. And with that, I leave this weekend’s
rambling opener with the usual GKLD tracking charts to remind readers that there’s plenty of
width for more, in fact a lot more, gold ownership among the big-hitting financial institutions:
GLD: Inventory/Price Ratio, 2017 year to date
7.40
7.20
7.00
6.80
6.60
6.40
6.20
6.00
5.80
3 5.60
5.40
71/3/1 71/61/3 71/62/5 71/8/8 71/81/01 71/92/21 81/41/3 81/42/5 81/6/8 81/61/01 81/72/21 91/21/3 91/22/5 91/2/8 91/41/01 91/42/21 02/9/3 02/91/5 02/03/7 02/9/01 02/12/21 12/5/3 12/31/5 12/62/7 12/5/01 12/51/21 22/82/2 22/01/5
GLD gold holdings, 2017 year to date (metric tonnes)
1300
1250
1200
1150
1100
1050
1000
950
900
850
800 Source: SPDR data, IKN calcs
750
700
71/3/1 71/61/3 71/62/5 71/8/8 71/81/01 71/92/21 81/41/3 81/42/5 81/6/8 81/61/01 81/72/21 91/21/3 91/22/5 91/2/8 91/41/01 91/42/21 02/9/3 02/91/5 02/03/7 02/9/01 02/12/21 12/5/3 12/31/5 12/62/7 12/5/01 12/51/21 22/82/2 22/01/5
mt
source: SPDR GLD data

Fundamental Analysis of Mining Stocks
Anacortes Mining Corp (XYZ.v): Time to add to the radar
This weekend’s main fundies section is dedicated to a company I am not buying yet, but adfter
years on the sidelines now has enough stars coming into alignment to warrant a heads-up
analysis here at The IKN Weekly. Anacortes Mining Corp (XYZ.v) (US OTC: XYZFF) is the new
vehicle for a project that’s been on my radar for at least a decade, the Tres Cruces
oxide/sulphide gold deposit in La Libertad, Peru. After many years under a previous deal that
left the project sidelined and without much chance of moving forward, Tres Cruces under XYZ
may finally be on the way to becoming an interesting trade for retail investors. I’m going to try
and get this analysis done as succinctly as possible (this is an “on the radar” analysis, rather
than a personal buy) and begins with the basic corporate structure in our standard top box:
Shares out: 42.314m
Options: 3.224m
Warrants: 8.104m
Fully diluted: 53.642m
Current share price: C$0.97
Market Cap: C$41.04m
Approx cash per S/O: 25c
All prices are in Canadian Dollars unless stated. Forex U$0.80=CAD$1
A potted history of Tres Cruces
The primary object of our attention is the Tres Cruces gold project in the La Libertad region of
Northern Peru. Located close to the Lagunas Norte gold mine previously owned by Barrick
(GOLD) and now owned by Singapore capitals company Boroo, for years (decades, in fact) Tres
Cruces was owned by a small and illiquid Canadian junior called New Oroperu. For much of that
time, New Oroperu had an long-term optioning deal with Barrick where the small company got
a free ride on drilling and development. The deal was a good one for New Oroperu, as it also
stipulated that Barrick had to make an active ownership and construction decision on the
project by the end of 2020, else lose all ownership rights. However, it also meant that over the
years New Oroperu was ignored and unloved, considered a Barrick binary play and as the years
rolled on, it became increasingly likely Barrick wasn’t going to bite, thereby leaving New
Oroperu fallow.
As fate would have it, the long term optioning deal between the parties on Tres Cruces came to
its moment of truth in December 2020. We now know that by then, Barrick under its new boss
Mark Bristow had decided to up sticks and leave Lagunas Norte and Tres Cruces was an
unimportant side thought. Barrick sold Lagunas Norte to Boroo and the optioning deal on Tres
Cruces lapsed, which duly handed 100% unencumbered ownership of the project back to New
Oroperu. At that point, New Oroperu had an interesting prospect but no money or team to
move it forward as it moved into 2021, which is how the most recent deal and the corporate re-
structure took shape. Via a reverse takeover deal with the capital pool company First Light
Capital, owned by XYZ CEO James Currie (see below), New Oroperu merged into the current
structure in October 2021 and became Anacortes, the cashed-up company with experienced
miners on board that we have today.
Management and main shareholders
As for the management team, XYZ is headed up by CEO James Currie, a highly experienced
mining executive with a long track record of building and running mines. His CV includes the
being the CCO and in charge of construction and running of the New Afton mine, COO at
Pretium VOK and before coming to XYZ, COO at Equinox’s (EQX.v) Mesquite in CA USA. Those
are just a few of his CV highlights and suffice to say, he’s the sort of man you want at the top
of a company that’s looking to put a deposit into production. CEO Currie owns 583k shares of
XYZ and is the second largest single insider holder, with the head of the previous owner of Tres
Cruces, New Oroperu’s Wayne Livingstone, owning 2.62m shares. Livingstone has moved over
to become a director at XYZ and day-to-day running has passed to Steve Botts, another highly
experienced mining person who lives in Peru and knows the area of operations (Cajamarca/La
4

Libertad in North Peru) well. He’s worked for Rio Tinto at La Granja, the big Antamina mine and
more recently, was VP and MD of Tahoe Resources Peru where he managed the La Arena and
Shahuindo operations between 2018 and 2019, at which point they were sold to Pan American
Silver. Since then he’s worked out of his own consultancy company and was hired by XYZ when
the new corporate structure was set up last October.
Finally, the only other large shareholder of XYZ is Pan American Silver (PAAS), which owns
4.7m shares, or 11.1% of shares out. As that company owns and runs the aforementioned La
Arena and Shahuindo mines in the region, as well as making much of its early fortune from the
Quiruvilca silver mine close to Tres Cruces, that’s not an insignificant datapoint.
Other reasons to consider XYZ
The potted history of the Tres Cruces property above attempts to set out (in as few words as
possible) reasons why it has been largely ignored by the market over the years. Then the
management and shareholders section outlines that the right sort of management team and
backing has arrived at the project. To right project and right management we now add right
time and right price.
It’s the right time because, after submitting its drill permits in November 2021, XYZ had to wait
six months as the bogged down politics in Peru and logjam in Peru’s Ministry of Energy &
Mining (MINEM) sorted itself out. On submitting its application last year, the company expected
to be drilling by the end of 1q22 but “the reality is other” (to translate that pithy Spanish
expression once again) and they had to wait until early May for the green light. However, it’s
better late than never and the permits arrived, so as from last month XYZ embarked on its
3,000m to 4,000m first stage drill program at Tres Cruces. It plans 23 holes, a mix to confirm
previous assays, supply fresh samples for metallurgical testing with a view to its Feasibility
Study next year, as well as testing more of the deeper sulphide targets that have been under-
explored to date. XYZ is using ALS Chemex for assays and with the lab back-up now abating,
we should start on the newsflow of drill results in the near future. So, after a long delay it’s
finally the right time to take an interest in this company and now, we also have the right price:
At its conception, XYZ.v was a C$2+ stock (and at the time CEO Currie was out promoting it as
a drop dead bargain, which is what CEOs do). But
even if we move to a 2022 YTD-only chart and
compare to the GDXJ XYZ has seen constant
selling and recently dropped under C$1.00.
Today’s C$0.97 share price is off its most recent
lows and we know the junior market has been
rough, but XYZ has been beaten up worse than
most even after delivering a PEA for the project
that was received well at the time. That’s the
structure and the corporate things done, we now
need to consider the meat in the sandwich. We
now talk project and money.
5

The Tres Cruces project
First the location, then some stats, followed by the salient
points of the recent PEA to give a handle on the economic
potential of the project. This first map (right) taken from the
recent PEA published to SEDAR in March shows that Tres
Cruces is in mining elephant country, a geologically endowed
region of the planet that has a long-standing “mining
culture”.
The second map below, also from the recent PEA, shows the
XYZ concessions, including the Main Tres Cruces block, the
way the company’s land backs onto the Lagunas Norte
concessions and the nearby town of Quirvilca, location of the
famous mine that was open for over 100 years (before being
ruined by Luis Saenz and put on care&maintenance). The
final map below the second comes from the latest corporate
presentation dated May 30th (a useful read for those
interested, find it here (2)) and zeroes in on the exact area
of the deposit, again in relation to the town, the Lagunas
Norte main pit and its Southern extension. We even get the
location of the airstrip (used over the years by Barrick to get
its bullion out).
The location is a good one and in a zone that “knows all
about mining”, however (and no matter what the CEO
might tell you), the community relations history at Tres
Cruces isn’t the best. Over the years, there have been
the occasional rumble about bad blood and friction
between local villages and Barrick, both here and at
Lagunas Norte. It’s difficult to point the finger and say
who is or was to blame, but a fair comment would be 1)
CSR and ESG in this zone is VERY micro-regional, and
you can go from very pro to very anti mining in the space
of 20km. In this case, there are influences on both sides
and the locals certainly understand both the pros and
cons of having mines and miners in their locality. On the
other hand, we know Barrick at Lagunas Norte often
6

rubbed locals up the wrong way from an ongoing arrogant attitude toward them and on the
bright side, since Boroo took over LN, it’s been a case of “no news is good news”. Finally and
despite coming from Tahoe Resources, I’ve heard plenty of good things about Steve Botts and
he would have gone in with eyes wide open on the community issues. Notably, the drill
program has kicked off and is happening without any hitches to date, which indicates a
conducive atmosphere and improved community relations.
As for the basic structure and grade profile of the Tres Cruces deposit, Slide 11 from the latest
corporate presentation is a good hack and offers plenty of information on a single page. This
project is designed as a open pit heap leach (for the oxides, at least). At the bottom left of the
slide we see the proposed pit shell outline for the oxide deposit under PEA (blue line) and the
conceptual sulphides pit, along with a thick horizontal blue line that shows the section in the
main visual, to the right. As for the main show, there we the depth of the proposed oxide pit
(blue stepped line) and some of the drill assays, including the highlighted RTC-255. That was
one of the best holes returned to date; after 37m of overburden, the hole returned 63m of 2.17
g/t gold in oxides, followed by nearly 200m of 2+g/t sulphides.
That’s a great hole by any standard, both in oxides and sulphides and is similar to the mineral
successfully mined by Barrick at Lagunas Norte over the years. In point of fact, when Barrick
was optioning into Tres Cruces its target was oxides only, with a view to supplementing its feed
for its oxides-only operation and therefore, on many occasions they stopped exploration holes
when they moved out of oxide/transition material and into the pure sulphides. This leaves
plenty of deeper zones at Tres Cruces open to exploration and this is one of the targets of the
2022 drill program.
As for deposit size and grade, this table from the PEA does the job. Notes below:
 The count for oxides+transition (that would be amenable to heap leaching) totals 630k oz
Au indicated, the deeper sulphides total 1.844m oz Au indicated, for a total of 2.474m oz Au.
 The PEA does not contemplate mining the sulphides and concentrates its effort on the oxide
and transition material alone.
 Thanks to the years of work and drill metres put in by Barrick, Tres Cruces is a well
understood deposit with nearly all its mineralization in measured and indicated (M+I)
7

category and only remnants in indicated. This will allow XYZ to move quickly to Feasibility
Study level without incurring excessive infill drilling costs.
 The oxides use a 0.3 g/t gold cut-off, which may sound low to the outside observer but in
fact, is conservative compared to the 0.18 g/t cut-off the nearby La Arena could run once
fully operational. At this 0.3g cut, the oxides/transition mineralization holds 630k oz gold at
an average grade of 1.28 g/t. That’s a high average grade for this type of open pit operation
and promises robust project economics (the projected recovery average 82%), however it
must be stated that the overall oxide/transition deposit size isn’t large and unless discoveries
are made on other parts of the concession, won’t grow very much.
 Even so, the average grade allows for exceptional economics and the rich zones of mineral
also show strength under higher cost mining. For example, even if we raise the cut-off to
0.5 g/t the oxides and transition material still boast over 600k oz gold, only losing 30k oz Au
from the 0.3 g/t cut.
 Tres Cruces is a “pure gold” play, but there is a small silver by-product. So far it’s been left
uncounted by assays and left out of the PEA economics. Gold and silver are at a rough 1-to-
1 ratio at Tres Cruces with geologists estimating total silver content at between 2.5m oz to
3.5m oz. While minor, this may provide some offset to eventual operating costs.
Project economics
The easy way to present the potential of Tres Cruces is to consider its recent PEA, but be clear
that the March 2022 43-101 is the epitome of that famous “snapshot in time” and for a better
handle on the details of the economics and production from Tres Cruces oxides, we have to
wait until 2023 and the upcoming Feasibility Study (FS).
As the 2022 drill program kicked off a quarter behind
schedule and the company’s original plan was to deliver
the FS in 1q23, it’s now fair to slate that for mid-2023
i.e. a year from now. Until then we have the PEA data
as a reasonable baseline and for what it’s worth, on
reading through the document I’ve found it to be
conservatively pitched while still delivering robust
economics. For example, back in November 2021 when
kicking off the development process, CEO Currie
estimated that the capex for the
eventual mine would come in at
between U$80m and U$100m.
Come the publication of the PEA
(left) total capex including 25%
contingency was already at
U$125m (which, by the way, is
very front-loaded and with a short
build-out period, as seen in this
breakdown table (right). So good
for XYZ, it hasn’t shirked from
admitting cost inflation into its
model and that’s also probably
true for op-ex, as the next table
(right) from the PEA outlines,
those are safe and conservative when compared to
current average Peru mining costs. However, and it’s a
point we need to cover, we in junior investment world
know full well cost inflation hasn’t stopped since 1q22
and the time of the PEA (effective March 14th 2022).
There wouldn’t be any surprise if we saw further
increases in both capex and opex assumptions with the
advent of the FS next year and to that end, I’ve put
8

together a preliminary spreadsheet that goes “extra conservative”. While being the first to
admit the best we can do at this stage is “ballpark only” and thi9s Excel isn’t my tightest
calculation ever, the numbers stand up to scrutiny even after adding extra layers of
conservatism to the XYZ model.
According to the PEA, the projected seven year mine life plan for oxides only produces just over
480,000 oz gold, with a production bias to the early years. As I’m confident they’ll be able to
squeeze out another 14k oz over those years, I’ve rounded my model year production to 70,000
oz. We then apply different US Dollar prices for gold and subtract 15% for TC/RC (plus
transport and marketing, 15% is conservative as they plan to produce a high purity doré on-
site) to give a model year top line revenue:
XYZ at Tres Cruces: Model Year Revenues & Op Income (U$m)
Prod. gold (Oz) 70,000 70,000 70,000 70,000
U$/oz $1,500 $1,700 $1,800 $2,000
Sales rev 98.70 111.86 118.44 131.60
TC/RC 14.8 16.8 17.8 19.7
Revenue 83.9 95.1 100.7 111.9
Sources: XYZ data, IKN calcs and estimates
This rough’n’ready model therefore forecasts U$100.7m in sales with a gold price averaging
U$1,800/oz. From that and subtracting normal line items that equate to an AISC of around
U$860/oz (compared to the PEA’s U$724/oz, see above), we arrive at an operating income of
U$40.2m using U$1,800/oz gold:
XYZ at Tres Cruces: Income statement model year (U$m)
Au U$/oz 1500 1700 1800 2000
Sales (U$m) 83.9 95.1 100.7 111.9
COGS 37.0 37.0 37.0 37.0
Depreciation 15.0 15.0 15.0 15.0
SGA+R&D 7.0 7.0 7.0 7.0
Peru mine tax 1.3 1.4 1.5 1.7
Op income 23.6 34.7 40.2 51.2
Interest 8.0 8.0 8.0 8.0
Workers Part. 1.3 2.1 2.6 3.5
Tax 4.0 6.9 8.3 11.1
Net income 10.4 17.7 21.3 28.6
Shares out 100 100 100 100
EPS 0.10 0.18 0.21 0.29
Sources: XYZ data, IKN calcs & estimates
From there, the net income is a full-scale SWAG* and less important than the operating income
number, as we’re plain guessing at how capex is raised and how many shares out we’re left
with at the end (this model uses $8m in annual debt servicing and 100m shares out, fell free to
argue). But if only to complete the table, that gives an annual net profit of U$21.3m. To round
that out, by applying a modest 4x multiple on free cash flow (which in this case is almost
exactly the same as operating profit) we get this as a nominal price target:
Sales and earnings Valuation data for XYZ.v at Tres Cruces based on
Year 1.5kAu 1.7kAu 1.8kAu 2.0kAu average annual production and U$1,800/oz gold
Sales(U$m) 84 95 101 112 12-month target C$1.93 based on 4x FCF
Upside to target 99%
EPS 0.10 0.18 0.21 0.29 Mkt cap (CAD$m) $41 Enterprise value $34
FCF 0.29 0.37 0.40 0.48 P/sales (1.5k Au) 0.43 EV/sales (1.5k Au) 0.36
P/E (1.5k Au) 9.4 EV/EBITDA (1.5k Au) 0.9
P/E (1.7k Au) 5.5 EV/EBITDA (1.7k Au) 0.7
P/E (1.8k Au) 4.6 EV/EBITDA (1.8k Au) 0.6
9

By now it should go without saying, but the low 4X multiple is used due to the length of time
between us and production day one. As the date draws nearer and the project is de-risked
through the stages, that multiple would normally rise toward the 8x to 10x this type of small
gold operation normally commands. In other words, my target up there is for starters the type
of number you’d want to see hit once the story gains traction and a following.
*Stupid Wild-Assed Guess
It would be a good start and all for a PEA predicated on the oxides and transition material. The
plan holds together well enough and the luxury of planning an open pit with high grades
compared to most every peer allows for plenty of leeway, as seen in our very conservative
ballpark spreadsheet. However, a look back at the indicated resource table, plus the company’s
plans to drill more systematic deep drill holes this year and next, make clear that the big prize
at Tres Cruces is its sulphides. On this, the company has made no bones about its plan to
develop and mine the oxides with a view to eventually expanding operations and investing the
capex in a larger sulphides mine. XYZ is also on record as expecting the current sulphides
deposit count, currently at 31.1m tonnes grading 1.84 g/t Au for an overall resource of 1.9m oz
M+I, using a 0.9 g/t cut-off, as capable of growing significantly. At those average grades and
once the oxides have been mined away, a large open-pit sulphides operation would be a real
moneyspinner as long as the eventual capex hurdles were successfully negotiated.
As for the current status of XYZ.v finances, it’s such a new vehicle that there’s not much to see
in the usual suspect charts, plus the delay in permits which put back the start of its 2022 drill
program to our current quarter, means that there’s not much to pick apart with its burn rate.
Therefore the basic balance sheet charts, plus a logical projection or two into the quarters to
come, and we’re done.
Here are the overall assets and liabilities charts and, as liabilities are limited to normal run-of-
company trade payables and the only thing that matters with that chart is the tiny numbers on
the Y-axis, we concentrate on the assets visual.
XYZ.v: Assets breakdown, per qtr
26
24
22
20
18
16
14
12
10
8
6
4
2
0
The assets chart follows the shell company First Light and than the big changes happen as
Oroperu is backed into the structure, starting in 3q21 when the escrowed funds were in the
shell treasury. The RTO had its costs in both legal and change of control fees (the New Oroperu
C-suite got $2.4m of parachute payments) so as from 4q21 the new structure was in shape.
The asset carry of Tres Cruces was low coming in, but XYZ has elected to capitalize exploration
costs so as the quarters go one, we should see
cash turn into fixed asset value.
As for cash, they are in good shape thanks to
the corporate re-structure deal. A second round
of drilling is planned for later in FY22 and a lot
depends on how its plans pan out, but if needs
be XYZ could probably to get to the FS
milestone in mid-2023 without any need to go
10
02q4 12q1 12q2 12q3 12q4 22q1 tse22q2 tse22q3 tse22q4
C$m XYZ.v: Liabilities Breakdown per qtr
2
1.8
fixed
1.6 other
cash&eq 1.4
1.2
1
0.8
0.6
0.4
0.2
0
source: company filings
02q4 12q1 12q2 12q3 12q4 22q1 tse22q2 tse22q3 tse22q4
source: company filings, IKN ests
srallod
fo
snoillim
LT debt
current debt
24 XYZ.v: Working Capital per qtr
22
20
18
16
14
12
10
8
6
4
2
0
02q3 02q4 12q1 12q2 12q3 12q4 22q1 tse22q2 tse22q3 tse22q4
source company filings, IKN ests
srallod
fo
snoillim

to market again. However, at some point a modest top-up financing looks in the cards, this isn’t
the type of loose-living management team that leaves things to chance or luck.
50 XYZ.v: Shares Out
45
40
35
30
25
20
15
10
5
0
11
02q4 12q1 12q2 12q3 12q4 22q1 tse22q2
source: company filings
serahs
fo
snoillim
Finally, the evolution of the share count from the First Light shell until today. The corporate
restructure in the first week of 4q21 came with a 6-for-1 share rollback that turned a mountain
of shares emitted into the 42.3m of today.
Discussion and conclusion
There’s plenty to like here, first and foremost with the new price level. Anacortes Mining Corp
(XYZ.v) started life last year as an expensive stock and between then and now, has become
cheaper by the month, to the point where it’s now at an obvious level even, if we base
valuations on only its oxide deposit and parameters that are even-more-conservative than its
solid and likeable PEA. Today’s C$42m (U$33m) market cap is arguably the right fraction of an
eventual NPV to buy today, but the real, long-term attraction at XYZ is its sulphide gold
potential and the opportunity it presents to put together a multi-million ounce high grade open
pit deposit with a machine that, theoretically at least, is funded by cash flow from a “stage one
oxides” operation. Also notably, this junior has the level of C-suite that doesn’t need to simply
represent putting a promising deposit into production, its management team truly fits the bill of
“seasoned mine builders/operators” and isn’t restricted to the simple and risky exit strategy of
selling to a major (with the likely suitor Pan American Silver, of course).
However, I personally prefer to put this on my radar today for three main reasons:
 I’m chicken about this market. Seriously, I am. What’s more, I said exactly the same
thing to Newcore (NCAU.v) CEO Luke Alexander when he asked me why I hadn’t pulled
the trigger on his company stock at these low levels, too. In this current market, I
prefer to hold on to treasury and if need be, buy companies such as XYZ, NCAU and
other interesting exploreco developers such as Moneta (ME.to) later and at higher,
climbing prices than at this present and nervous moment in the market cycle. However,
I am not you and if you think I’m stupid for not loading up on XYZ at this bargain
basement level you may well be right.
 Its oxide deposit may be high grade, but its small and the U$125m capex ticket is
pushing the limits for that size project. This again points us toward the deeper
sulphides and if XYZ can expand that tonnage meaningfully and put together a bigger
resource, the plan to mine in stages starts to make more sense and justify and
U$100m+ entry hurdle.
 I’m happy to watch and wait on this idea to see how the 2022 drill program pans out,
as well as to keep my ear to the ground on ESG and CSR matters. It’s still early days at
Tres Cruces and if XYZ can start mounting up a series of good news releases and
positive vibes from the region, at some point the project will start to de-risk itself.
Those of you with more risk tolerance than I now have a solid and interesting trade idea in
front of them, as so far at least Anacortes (XYZ.v) has the right mix of good people doing the
right things at a promising deposit, all at an attractive and discounted entry point for new
buyers. As for me, I’ll be watching carefully and after a write-up as positive and peppy as this

one, nobody out there should be surprised if I pull the trigger and go long this stock at some
point in 2022. This is a very likeable company and in a normal market, would be a knockdown
bargain at this entry point.
Stocks to Follow
The easy-to-follow proxy on gold bullion (GLD) improved by 1.1% on the week, but PM stocks
of all sizes failed to capitalize on the gain and the broad market dragged equities down. The
GDX improved by one single shiny penny, basically UNCH, while the junior-packed GDXJ
dropped by 1.4%. Our list reflected the mixed bag, with six winners (MAI.v, ECU.v, ALDE.v,
PA.v, WRN.to, MENE.v), one unchanged stock (SGI.v) and nine losers (RIO.v, ARG.to, DSV.v,
QCCU.v, CKG.v, APN.v, MIRL.cse, NCAU.v, ELBM.v,) and most of those moves were small in
either direction and inside recent established ranges. The outlier to the negative was Newcore
(NCAU.v down 12.3%), while the biggest percentage upmoves came from Palamina (PA.v up
14.3%), Mene Inc (MENE.v up 12.0%) and Aldebaran (ALDE.v up 9.6%).
There are currently 16 open positions, four below our self-imposed maximum (and if you prefer
the old system, I’m down to 13 of 15 open positions owned). Just three are in the green and
the others are still in the red, but things are getting better.
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$0.595 183.3% $1.14 tgt, #1 idea on FY22 dev
Rio2 Ltd. RIO.v STR BUY C$0.83 22-Apr-18 C$0.55 -33.7% $1.30 tgt May22 permit catalyst
RECOMMENDED STOCKS
Amerigo Res ARG.to STR BUY C$1.36 12-Dec-21 C$1.71 25.7% $2.40 tgt on FY22 guidance
Superior Gold SGI.v STR BUY C$0.95 3-Apr-22 C$0.85 -10.5% Au prod jr, right place/time
Discovery Silver DSV.v SPEC BUY C$1.77 24-Oct-21 C$1.39 -21.5% Top Ag play, 1st tgt $2.75
QC Copper&Gold QCCU.v SPEC BUY C$0.275 25-Apr-21 C$0.23 -16.4% Now drilling. Easy hold
Element 29 ECU.v HOLD C$0.58 6-Mar-22 C$0.37 -36.2% Cu exploreco w/ 2 Peru assets
SPECULATIVE TRADES
Chesapeake Gold CKG.v SPEC BUY C$3.07 20-Feb-22 C$2.49 -18.9% Au leverage, small trade so far
Aldebaran Res. ALDE.v SPEC BUY C$0.72 16-May-21 C$0.80 11.1% May sell on NR window
Palamina Corp PA.v SPEC BUY C$0.295 21-Nov-21 C$0.16 -46.6% Au expl in S.Peru
Altiplano Metals APN.v HOLD C$0.31 17-Sep-21 C$0.24 -22.6% Cheap entry, plan on track.
Minera IRL MIRL.cse hold C$0.195 22-Jul-12 C$0.09 -53.8% CEO change will move stock
THREE TRADE IDEAS FROM IKN670, March 2022 (originally five) NB: I DO NOT OWN
Newcore Gold NCAU.v WATCH C$0.51 20-Mar-22 C$0.355 -30.4% tracking IKN670 idea
Electra Battery ELBM.v WATCH C$5.31 20-Mar-22 C$4.80 -9.6% tracking IKN670 idea
Western Copper WRN.to SPEC BUY C$2.41 20-Mar-22 C$2.22 -7.9% tracking IKN670 idea
LONG-TERM NON-MINING HOLD
Mene Inc. MENE.v adding C$0.66 6-Dec-20 C$0.56 -15.2% 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
Abrasilver Res. ABRA.v May'22 C$0.42 24-Apr-22 C$0.33 -21.4% sold to reduce Ag exposure
Strategic Metals SMD.v May'22 C$0.42 31-Jan-21 C$0.30 -28.6% trade flatlined 1.5 years
2015 to 2021 annual closed positions in appendices below, 2009 to 2014 closed positions in editions IKN553 or earlier
12

Now for a few notes on covered companies:
Rio2 Ltd (RIO.v): Company CEO Alex Black was on a visit to the company’s facilities in Chile
last week and kindly shared a number of photos with
this desk, of which you now get a representative
sample. He got to inspect the ongoing fabrication of
plant components currently underway at its depot in
Copiapó, the purpose-built water supply station for
trucks that will haul up to the Fenix mine, as well as
travelling up to its facility at Lince, close to the project
site. That’s the location of the employee lodgings and
is currently being used to gather and store
components for the build-out at the mine, a useful
waylay station. He reported that RIO.v and its Chilean
technical team (legal, operational, ESG/CSR etc) is
confident about getting its final EIA and operating
permits from the government of Chile and on that
score, we understand that permitting is on track for
the green-light. The “pre-construction” work being
done by Rio2 shows the level of confidence about the upcoming permit
award, they are looking to hit the ground running as soon as the final
permits are awarded and while the exact dates are out of the company’s
hands and in those of the relevant government bureaux, the standard track
is on course and with all “observations” now covered at a regional and
national level, it’s a question of time as the relevant documents go from one
Chilean government desk to another, on their voyage to final approval.
As mentioned previously, Covid has delayed the permitting track somewhat,
as did the institutional uncertainty (let’s say) when it became clear Gabriel
Boric first became clear favourite to win, then won the 2021 Presidential
election. Now that most fears are in the past and the country (and slowly,
the world) recognizes Chile under Boric is suitably mining friendly and is
looking to the industry to supply GDP growth in the way that normal
governments do, the government offices are now reportedly back to
normal. This is good, because Chile’s regimented and established permitting
system is back to being predictable and those inside Rio2 following the
paper trail are clearly happy with progress (and if that sounds vague I
apologize, but feel free to read between the lines). A couple of editions ago,
we estimated that permit approval would land at some point in June of July,
let’s firm that up now and estimate July as the ETA for the key missing
element in this story. Make sure you’re full to your satisfaction with these
shares before then.
13

Discovery Silver (DSV.v): The news Monday (3) was a surprise and is something of a mixed
bag. Here’s how it starts:
“…Taj Singh, President and Chief Executive Officer, has stepped down from his
position as President and Chief Executive Officer and has resigned from the Board of
Directors for personal reasons. The Company wishes to thank Mr. Singh for his efforts
during his five-year tenure with the Company and wishes him all the best in the future.
Put simply, you do not walk away from a President/CEO job and voluntarily leave your director’s
seat on a whim. And though the NR plays the deadpan straight bat of “for personal reasons”
(i.e. don’t ask, we won’t tell) and duly thanks him for his time and wishes him the best in the
future, it’s difficult to swallow the voluntary image of this change when the replacement is 1)
waiting in the wings and 2) a rockstar CEO and a favourite of big DSV shareholder, Eric Sprott.
“Tony Makuch, an independent director of the Company has been appointed Interim
Chief Executive Officer, effective immediately.”
That’s the first of fourteen effusive lines on Makuch in the NR and while the appointment is still
only “interim”, the air of forced change is clear. All this just one week after a high level analyst
site visit, too. However and hey, that’s capitalism and as a shareholder I am forced to agree
that while Taj Singh has done a good job leading DSV, having a world-level CEO name at the
top opens doors and helps the cause when the moment comes to fund and build Cordero.
That’s just the way it is, but there’s also a
more negative scenario in the back of my
mind. I can’t help but wonder whether
Singh “was resigned” because of
inflationary factors that threaten to spiral
capex out of control. This would also fit the
removal of the CEO and the pre-emptive
placement of the high-profile replacement
as it would fit a future scapegoat scenario.
For the time being I’ve resolved to be (as)
sanguine (as possible) about this
unexpected change and the market seems
to agree, as while the stock was its normal
volatile self, all it really did was to track
peers as seen in this ten-day comparative
to GDXJ and SIL, right.
Aldebaran (ALDE.v): The news last week (4) that partner company Sibanye Stillwater
(SBSW) “has elected to exercise 1,590,000 previously issued common share warrants for gross
proceeds to the Company of $1,113,000” is a positive, takes pressure off ALKDE to go to
market and raise in the near-term and along
with the recent exercising of derivatives by
ALDE management, demonstrates the type of
long-term insto and insider support that we
retail smallfry like to see from their exploreco
spec trades. The 70c strike warrants weren’t set
to expire until September 15, so SBSW has
done a decent favour here (and they have cash
on hand, now they’ve blown out the $1.2Bn
deal with Appian for its faulty Brazil assets ).
As for trading, the stock continues to be patchy
and thinly traded but found some bargain
hunters on Friday and the move back into the
80s is welcome. If more buyers come, we may
eventually see the $1.00+ prices of early year (when I was tempted to sell and lock in
profits…more fool me). Meanwhile, we wait for drill results like Vladimir and Estragon.
14

Palamina Corp (PA.v): An apparently minor NR out of PA last week (5) announced that it had
secured rights to a small land package that was inside its larger Usicayos land package in the
“Puno Orogenic Belt”, but one I know that CEO Thomson Hill be pleased in announcing. Fully
integrated land holdings are worth much more to a prospective partner (JV or otherwise) and
PA, along with sister company WINS, now has the dominant land holding in a zone coveted by
geology teams from much larger companies. The stock price did well too, though without
busting through its recent trading range ceiling. For that we’ll need drill results, those should
come soon.
Electra Battery Materials (ELBM.v): ELBM announced another key appointment, a new CFO
with a strong CV. However, CFOs don’t move markets. Onward.
Newcore Gold (NCAU.v): I didn’t expect this to dip any further, but dip it did and on some
volume Friday (400k shares approx). I agree with CEO Alexander that at some point I’m going
to have to pull the trigger and buy at least a few of these, if only to save myself from
embarrassment. But for the time being, I’ll watch.
The Copper Basket
After twenty-three weeks of 2022, The Copper Basket shows a loss of 28.72% level stakes:
company ticker price 1/1/22 Shares out Market Cap current pps gain/loss%
1 Copper Mtn CMMC.to 3.42 210.166 540.13 2.57 -24.9%
2 Western Copper WRN.to 2.00 151.451 336.22 2.22 11.0%
3 Marimaca Cop MARI.to 3.77 88.118 333.09 3.78 0.3%
4 Oroco Res OCO.v 2.04 203.4 268.49 1.32 -35.3%
5 Nevada Copper NCU.to 0.71 448.437 156.95 0.35 -50.7%
6 Hot Chili HCH.v 1.53 109.223 120.15 1.10 -28.1%
7 Meridian Min MNO.to 1.18 153.735 107.61 0.70 -40.7%
8 Regulus Res. REG.v 1.06 101.845 96.75 0.95 -10.4%
9 Aldebaran Res. ALDE.v 0.84 114.495 91.60 0.80 -4.8%
10 Kutcho Copper KC.v 0.88 103.94 46.77 0.45 -48.9%
11 C3 Metals CCCM.v 0.16 645.379 45.18 0.07 -56.3%
12 Doré Copper DCMC.v 0.79 66.123 36.37 0.55 -30.4%
13 QC Copper QCCU.v 0.34 129.06 29.68 0.23 -32.4%
14 Element 29 Res ECU.v 0.58 79.24 28.92 0.365 -37.1%
15 Coast Copper COCO.v 0.13 41.335 3.10 0.075 -42.3%
NB: All stocks in CAD$ Portfolio avg -28.72%
Back to the negative trend for The Copper Basket, with the average dropping by 2.28% due to
15

nine losers on the week (CMMC.to, OCO.v, MARI.to, NCU.to, HCH.v, REG.v, DCMC.v, QCCU.v,
COCO.v) beating out five winners (WRN.to,
MNO.to, ALDE.v, KC.v, ECU.v), with one
The Copper Basket 2022, weekly evolution
5%
unchanged stock (CCCM.v). There were two larger
0%
winners in Kutcho (KC.v up 12.5%) and Aldebaran
-5%
(ALDE.v up 9.6%) and two big losers in Nevada
-10%
Copper (NCU.to down 28.6%) and Regulus
-15%
Resources (REG.v down 10.4%). Overall, the
-20%
tracking chart (right) is the best visual on -25%
sentiment for our sector. We’re in the sixth week -30%
of negativity and with little sign of improvement, -35%
even after the move made by copper-the-metal
away from the U$4.20/lb floor level.
However, around half that move was unwound last week, first via lacklustre trading and signals
of near-term demand weakness from China, then on Friday copper dropped hard as the US
inflation data and consumer sentiment indicator did their worst to most commodities aside gold
(and silver). However, I’m still putting on a bullish face and insisting the place to be with copper
over U$4.00/lb is in its producer sector, or even the later-stage advanced projects. It came as
no surprise to see Western Copper (WRN.to) rebound in style on Friday, as one example and
for another, we again focus on the trade potential in Copper Mountain (CMMC.to) below in the
notes.
The two data sets out of China that made sense of the flaccid price action were:
1) record concentrate imports for the month of May, which hit 2.19m tonnes, some 12.8%
higher than the same month of 2021. Finished copper imports also rose last month by
4.4% to 465kmt.
2) Chinese smelter companies raised their TC/RC charges to U$80/mt and 8c/lb. That’s the
second rise this year, with early pricing at $65/6.5 and more recently in 1q22 at $70/7c.
The rise in treatment and refining charges to miners reflects increased supply of
concentrate arriving on Chinese shores, which may be due to the Covid demand slump
working its way through the supply chain.
Seasonally speaking, this is normally a slack period for copper in China and despite warehouse
inventories remaining extremely tight (see below), demand is now being covered by supply.
This allows the refiners to charge more for their labours and with that, we move to our regular
weekly look at copper inventories data:
 World aggregate copper inventories continue to drop, with 19,282 metric tonnes (mt)
leaving the three official systems last week. Our running total is 241,947mt, with LME
16
ts1naJ ht9naJ ht61 dr32 ht03 ht6bef ht31 ht02 ht72 t6raM ht31 ht02 ht72 dr3rpA ht01 ht71 ht42 1yam ht8 ht51 dn22 ht92 ht5nuj ht21
source: IKN calcs

starting to show the same supply stress we’re used to in SHFE numbers.
 The SHFE added 8,106mt to close the week at 51,453mt and the speculation
mentioned last weekend from local media came true. The tonnages arrived at Shanghai
docks as the Covid lockdown came to an end. Last weekend, we also wondered
whether we’d see arbitrage from LME stocks and that does seem to be the case.
 That’s because once again, the LME was the reason for the overall drawdown. A big
28,200mt left its warehouses, including nearly 17kmt from those South Korean stores,
to bring a final total of 117,750mt. Under normal seasonal circumstances, LME copper
stocks would build over the Northern summer months so this move is in the other
direction and casts new doubt over copper availability for the second half of the year.
Notably, the total outflow closely matched the drop in cancelled warrant tonnages and
as there are another 23,375mt under warrant at LMNE warehouses, we may see those
leave in the same style in the days ahead.
 The Comex added 812mt and closed at 72,744mt. No biggie.
Here are the dedicated SHFE charts, backing up the assertion above. Things remain drum-tight
in the world of copper supply, as last week’s price jump indicates.
Shanghai Futures Exchange Warehouse Stocks, 2014 to date
400000
350000
300000
250000
200000
150000
100000
50000
0
17
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
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 a notes from a couple of basket stocks:
Nevada Copper (NCU.to): It was already an unholy mess, with loss-making operations in all
previous quarters, hardly any cash, a U$95m working cap deficiency as at end 1q22 and total
liabilities of over U$400m, with around U$250m of that in cash debt, even before last week’s
news (6):
“The Underground Mine encountered operational and geotechnical challenges in the

latter part of May that are expected to delay stope mining in the East South mining
area and result in reduced concentrate production for the second quarter of 2022.”
The NR goes on to detail that the challenges (their word) will continue into Q3, that they are
reducing the workforce headcount as a result and that major shareholder (and debt owner for
that matter) Vladimir Iorich, via his Pala Investments vehicle, was lending another $20m to NCU
to keep its lights on. It’s not as if the company would have been profitable or saveable anyway
and the only reason its share price hasn’t imploded completely is that between Iorich (37%)
and a couple of his Russian cronies (a little over 10% each) they own the majority of equity. On
the back of last weekend’s reminder, NCU is a prime example of the way we include the bad
companies as well as the good in our representative Copper Basket list, it’s not about “picking
winners” and here’s a reminder of how we presented its inclusion in this year’s list, back in
IKN658 dated January 2nd:
“…NCU is back on the Copper Basket list this year because it’s just come out of
another round of capitalization and funding, shares rolled back and some of the debt
pile relieved. It’s also in production at Pumpkin Hollow, so maybe just maybe the “jam
tomorrow” this company’s board has promised for years finally shows up. The issue
will continue to be its balance sheet and the whole exercise seems to me to be
another attempt by Iorich to claw back some of the capital sunk into the company.
With 446m shares out and a 2021 close of C$0.71, NCU isn’t a cheap producer either
and needs to start showing bottom line profits, rather than just breakeven on
operations. Often seen advertised online in places where casual investors look, rather
than mining sectors specialists, I’m not holding my breath on this stock but it’s an
interesting one to add to the list this year, if only to follow its financial progress. The
12-month chart shows how trading interest has picked up in the last quarter and the
stock does plenty of volume (so perhaps those online promos work, after all).”
I have the feeling that a lot of naïve social media players may have fallen for this promo and
bought themselves a nasty loser in the copper space this year. Beware the paid pump.
Copper Mountain (CMMC.to): This highly volatile copper trader’s switchback ride continues
unabated, amplifying all the moves made in the copper space over the last two weeks and it’s
quite a thing to consider that somebody paid
C$3.00 to own some of these shares seven
trading days ago, while somebody else paid
almost 20% less on Friday.
After setting out the rationale for a new long
position in CMMC a couple of editions ago, it
looked for a moment on Friday that the ultra-
cheap entry point was about to show up, before
bargain hunters happy with sub-C$2.50 prices
moved in before me. Good for them and as I
don’t feel a deep urge to own CMMC, it won’t
kill me to miss out if the stock rebounds further
from Friday’s close. And it might well do that,
but if it sinks further my trade will be on. I’m
not going to stick to a hard and fast line, but if C$2.30 shows up next week I’m a likely bidder.
The key here is to get a deep value entry point, as 2q22’s results aren’t likely to be good,
either. Unless CMMC sells Eva, the better trade opportunity may be during 3q22 when the
company is expected to get its production back on schedule.
The Producer Basket
After twenty-three weeks of 2022, the Producer Basket shows a gain of 1.63% to level stakes:
18

company ticker price 1/1/22 Shares out MktCap(U$Bn) current pps gain/loss%
1 Newmont NEM 62.02 797.44 53.31 66.85 7.8%
2 Barrick GOLD 19.00 1779 37.41 21.03 10.7%
3 Franco-Nevada FNV 138.29 191.192 28.07 146.80 6.2%
4 Agnico Eagle AEM 53.14 454.904 24.57 54.01 1.6%
5 Wheaton PM WPM 42.93 450.3 19.03 42.26 -1.6%
6 Gold Fields GFI 10.99 887.72 9.02 10.16 -7.6%
7 Kinross Gold KGC 5.81 1296.5 5.87 4.53 -22.0%
8 B2Gold BTG 3.93 1055.6 4.37 4.14 5.3%
9 Alamos Gold AGI 7.69 392.503 3.19 8.13 5.7%
10 Sandstorm SAND 6.20 191.4 1.31 6.83 10.2%
All prices and stock quotes in U$ Port. avg 1.63%
Our ten choices to follow the PM producer world this year was a mixed bag on the week, but
eventually eked out a half point gain and did slightly better than the GDX benchmark. There
were five week-over-week losers (NEM, AEM, WPM, KGC, SAND) and with NEM the worst of
those at -1.4% there was no real damage done. One stock remained unchanged (BTG) and that
leaves four winners (GOLD, FNV, GFI, AGI) with the rebounding Gold Fields (GFI up 4.7%) and
the safe haven trade Franco-Nevada (FNV up 2.2%) outperforming the rest.
The 2022 Producer Basket: Weekly performance and
35% comparative to GDX control
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
Alamos Gold (AGI): Owners of GDX/J and other ETFs, Van Eck reported last week that during
Q2, it has trimmed many of its holding. We only know about the changes because the starting
level for those reported was above 10% and AGFI was one of the stocks. From its previous
holding of 10.01% reported in 1q22, Van Eck’s participation dropped by 0.21% to stand at
9.8%. That doesn’t sound like much, but it represents 832k shares and along with other stocks,
shows the influence Van Eck’s GDX/J has on its component stocks even as they remain
included.
Gold Fields (GFI) redux: A better week for GFI, but perhaps not for the reasons we laid out
last weekend in IKN681…
“…GFI is my idea of a near-term outperformer in the large cap space. We may need to
wait until the shorts are lifted and the arbitrageurs have left, but this stock price took
more punishment than it deserved last week and what’s more, if the sector wants
more M&A action it will need to support companies such as GFI better than this.”
…even though that view was echoed by RBC last week in a note to clients that made many of
the same points. Here’s an excerpt:
“Gold Fields has been unduly punished by the market. They are leaders of disciplined
growth in LatAm, hence a bigger platform in the region provides an expanded base for
real value creation with a Tier 1 asset in Canada to boot.”
However, the reason for the out-performance, particularly the pop on Friday that outpaced
19
ts1naJ ht9naJ ht61 dr32 ht03 ht6bef ht31 ht02 ht72 t6ram ht31 ht02 ht72 dr3rpa ht01 ht71 ht42 1yam ht8 ht51 dn22 ht92 ht5nuj ht21
The 2022 Producer Basket: Percentage difference
between GDX benchmark & basket (negative = IKN ahead) 5.0%
4.5%
4.0%
ikn 3.5%
gdx control 3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
source: NYSE, IKN Calcs
ts1naJ ht9naJ ht61 dr32 ht03 ht6bef ht31 ht02 ht72 t6ram ht31 ht02 ht72 dr3rpa ht01 ht71 ht42 1yam ht8 ht51 dn22 ht92 ht5nuj ht21
source: IKN calcs, NYSE data

target company Yamana (AUY) as much as the market median (see right), was likely this (7) as
reported by Reuters:
A top-10 investor in South Africa’s Gold Fields on Friday urged the miner to cancel its
planned takeover of Canada-based Yamana Gold, saying the $6.7 billion transaction
was expensive and did not guarantee growth and profitability.
Shares in the South African miner plunged 20% on May 31, when it announced the all-
share transaction that would make it a top four global gold producer, amid concerns
over valuation and shareholder dilution. The stock has not recovered since.
Redwheel, which holds 3.38% of Gold Fields, on Friday became the first major investor
to publicly call for the deal to be scrapped, saying the share price decline showed that
the market believed the miner had made a “serious error” in pursuing Yamana.
“Redwheel has been a significant investor in Goldfields for several years and we
believe that the company should withdraw the offer and concentrate on the excellent
organic growth options which it already owns,” it said in an open letter to Gold Fields’
board published on its website.
If other large holders of GFI join in this
move, it will put the dampers on the larger
M&A scene in mining so be warned; if the
exit strategy for any of your junior trades is
the classic “Bound to be bought out by a
major soon”, you may need to adjust your
attitude. This move by Redwheel is yet
another reason why the best trades in
juniors today are in companies that need no
market or extra financial support.
The TinyCaps List
After twenty-three weeks of 2022, the TinyCaps show a loss of xxxx% to level stakes:
company ticker price 1/1/22 Shares out Mkt Cap current pps gain/loss%
Aurelius Min AUL.v 0.24 45.836 6.65 0.145 -39.6%
Golden Pursuit GDP.v 0.13 34.638 3.12 0.09 -30.8%
Infield Min INFD.v 0.06 48.445 1.94 0.04 -33.3%
Kingfisher Met KFR.v 0.30 103.007 22.66 0.22 -26.7%
Latin Metals LMS.v 0.12 57.296 6.88 0.12 0.0%
Manitou Gold MTU.v 0.06 344.57 10.34 0.03 -50.0%
Melkior Res MKR.v 0.295 24.011 6.48 0.27 -8.5%
Precipitate Gold PRG.v 0.105 129.322 10.99 0.085 -19.0%
Signature Res SGU.v 0.07 238.4 10.73 0.045 -21.4%
Winshear Gold WINS.v 0.08 61.585 4.93 0.08 0.0%
Prices in CAD$, data from TSXV basket avg -23.18%
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
20

interested in their monthly paycheck than anything else.
 Likelihood of meaningful newsflow in 2020. This connects to the company’s “unbroken” status, as we
want news and potential catalysts from companies with projects that can work.
 Decent management if possible. When you are down among the little guys it doesn’t pay to be too
choosy, but still I preferred companies that have teams or people with good peer reputations.
The only true signal from The TinyCaps Basket at the moment is a non-signal. The ten stocks
were chosen to be representative of the micro-
15% TinyCaps, 2022 weekly tracker
cap exploreco end of the market and at the
10%
moment, they faithfully reflect that nothing of
5%
any interest is happening and volumes are wafer
0%
thin in this sub-sector. The count saw three
-5%
losers (AUL.v, GDP.v, KFR.v), two winners
-10%
(LMS.v, SGU.v) and no fewer than five
-15%
unchanged stocks (INFD.v, MTU.v, MKR.v,
-20%
PRG.v, WINS.v). the overall average improved by
-25%
a couple of tenths thanks to the 22.2% (i.e. a
penny) added by SGU, but even that is nothing
to write home about.
Kingfisher Metals (KFR.v): The only stock on
the list of any particular interest has come off its
recent spike high. Last week KFR announced (8)
the closure of its recent flow-through based
placement, having raised gross proceeds of
C$4.85m. The first stage of its 2022 drill program
at Cloud Drifter is underway, RAB drilling at the
Day Tripper target and as the holes are quick to
drill, turnaround on results is all about the assay
labs. We may have results as soon as the end of
this month and if not, July is a certainty. Those
with the necessary risk tolerance may want to
consider KFR at or about a 20c price.
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
Argentina’s major cabinet reshuffle
Argentina’s President Alberto Fernández made some headlines at a subdued and ultimately
uneventful Summit of the Americas in LA USA last week. Along with other Heads of State
(Belize, Chile, others), his speech lambasted the present Biden US administration for not
uninviting three Americas countries (Cuba, Venezuela, Nicaragua). It also took a pop at the
previous Trump US government for intervening in negotiations between President Macri’s
Argentina government and The IMF, which allowed Argentina access to the U$57Bn loan that
the country now has to pay back (the implication being that The USA played party politics and
was kind to the right wing Macri, booting forward its financial problems to today…and frankly,
he has a point), on and finally he called the Organization of American States a “gendarme”
unduly influencing foreign states (e.g. Bolivia) and should be disbanded or reorganized.
However, the real fireworks out of Argentina came before President Fernández even left for the
Summit. It’s one of those “it’s complicated” stories, but long story short…
 The tender for a valuable gas pipeline contract that will expand production from
Argentina’s massive “Vaca Muerta” oil shales zone was officially opened
 Officials from “superminister” Matias Kulfas’s Ministry of Production and Development
briefed reporters in off-record conversations, saying that the terms of the contract had
21
dn2naJ ht9
naJ
ht61naJ dr32 ht03 ht6bef ht31 ht02 ht72 ht6ram ht31 ht02 ht72 dr3rpa ht01 ht71 ht42 ts1yam ht8 ht51 dn22 ht92 ht5nuj ht21
source: IKN calcs, TSX data

been skewed to favour one company, Techint. The off-record chat accused Vice-
President Cristina Kirchner of being behind the moves to favour Techint.
 When learning of the leak scandal, President Alberto Fernández asked for and received
the resignation of Matias Kulfas
 As from tomorrow Monday, the new “superminister” of Production and Development,
an umbrella ministry that includes the mining ministry and many others under its remit,
will be Daniel Scioli, the candidate who ran against Macri in 2016 and has until now
been Argentina’s Ambassador to Brazil (a key diplomatic post).
That’s as potted as possible for a big change at the top of Argentina politics, with
commentators making much of how President Alberto sided with his Veep, the powerful ex-
President Cristina, over his most powerful minister. The implication is of a government now
taking a jump to the left and fall-out has included a slight run on Argentina bonds as rumours
gathered that the country would no longer honour its debt obligations, not good in an economy
already running a very high inflation rate. However and without speaking out of turn, this desk
finds that unlikely, not least because the re-shuffle at the top has seen Alberto’s FinMin, the
reasonably orthodox economist Martín Guzman, gain more political power.
As for mining, the exit of Kulfas has left one of his longer-term plans out in the open, as this
week saw plenty of talk (9) about a project he’d apparently been working on to create a State
mining company, along the lines of Chile’s Codelco, that would promote and move forward
certain projects in competition with the private sector (rather than any thought of JVs or
expropriation) and attract hard dollar investors directly to the State, rather than though third
party private companies. From Tomorrow, this brief will be in the hands of Daniel Scioli and
from the outside, the biggest clue on the direction for Argentina’s mining industry will come
when he decides to either ratify or change the current Secretary (i.e. Minmister) of Mining,
Fernanda Avila, as she was picked by Kulfas and was part of his long-term plans for the
industry.
The Colombia Presidential election run-off: A big day for Colombia next Sunday
This time last weekend, I was loathe to make a call on the likely outcome of the run-off vote
between hard lefty Gustavo Petro and Indy populist righty Rodolfo Hernández but ended by
putting a gun to my own head and writing this:
Finally and though I won’t go on the record by calling this a prediction, the way in
which polls have quickly moved back toward Petro in this last week suggests he still
has a favourite’s chance and if only for that, you’re a braver speculator than I if you
buy Colombian-exposed miners before June 19th. Bottom bottom line: Avoid Colombia.
One week on, with a whole bunch of polls to consider as well as a very noisy and negative
campaign being waged by both sides, that hasn’t changed. Officially, this one is still too close to
call but there’s a feeling that the vote is tilting slightly toward Petro and away from Hernández.
Yesterday Saturday was the last day in which opinion polls with voter intentions could be
published in Colombia and as a result, there was a flurry. Here’s a page (10) with visuals of
three of the most important pollsters and their results and here are screenshots:
Guaramo (right leaning) this weekend gave Rodolfo Hernández a 1.7% lead, inside the margin
of error and therefore a statistical dead heat. In its penultimate survey last weekend the
Hernández lead was 3.1%.
22

Invamer took its last reading up to June 7th and put Hernández in a 1% lead, also inside the
margin of error:
The GAD3 “rolling poll” has taken a 350 to 400 person phone-based poll every day of the week,
its last reading Friday had Rodolfo on 47.9%, Petro 47.1%, again we’re neck-and-neck:
However last but certainly not least, the anomaly poll result came from what is normally
Colombia’s most reliable politics poll, the Yanhaas “La Gran Encuesta”. Last weekend it put
Petro in front 42% to 41%, but yesterday Saturday is made waves with this reading:
Yanhaas surprised everyone with a five point swing toward Petro in the last week, giving him a
ten point lead. The potential reason for this is Rodolfo Hernández’s decision not to debate his
opponent, then later in the week while in Miami USA announce he would make no further public
appearances in Colombia due to assassination threats, in which he claimed there was a plot
against him to be stabbed. The Hernández team also stepped in to stop a TV interview when
the questions turned to the criminal case he faces of corruption while Mayo of Bucaramanga,
the footage of two aides striding in to stop the Q&A was nobody’s idea of a good look.
23

Finally, the forex market is indicating the same general message, as the Colombian Peso (COP)
has weakened significantly in the last couple of days vs. the USD as Petro’s polling numbers
improve (and, must be said, Rodolfo Hernández the candidate has come under public scrutiny).
The bottom line: Next Sunday is a big one for Colombia and regional politics, as well as a big
one for Colombia’s mining industry. The four scenarios we went through last week are still fully
valid and while “Hernandez wins, Petro concedes” (without a fight) is the least worst, it’s hardly
a panacea for the mining industry, either. But in the event of a Petro win, contested or not,
expect the whole Colombian complex to sell off including the currency and that most definitely
includes its mining industry. We reiterate; Petro has toned down his hard left message over the
years and particularly in the last few weeks as he reaches for the centrist votes, but that
moderation of left wing policies doesn’t include mining. Opposing our industry of focus is a net
vote winner in Colombia and Petro knows it, any eventual government under his mandate
would oppose mining at every turn. Avoid Colombia.
Chilean lawyers on Chile’s mining laws
On Wednesday, June 8th, the Chilean Chamber of Mining (CMC) webinar “Mining and the New
Constitution: Certainty or Uncertainty” (Cámara Minera
de Chile: “Minería y Nueva Constitución: Certeza o
Incertidumbre”) was a useful hour spent on the
scenario for mining in 2022. New President of the
Chile Chamber of Mining Miguel Zauschkevich led the
presentation and in the end, thee were four (not six)
local experts on the panel. The emphasis was on the
legal aspects of mining in Chile and while a fair
amount of the presentation concentrated on matters
relating directly to the Chilean State mining companies
(e.g. Codelco, Enami), there were some segments and
comments that are relevant to junior miners and
private capitals companies.
The most relevant was the presentation from mining corporate lawyer Daniel Weinstein, who
has plenty of international experience and focused on the FDI view of investment under the
draft Constitution, as prepared by the Constitutional Assembly.
His main point was that while the main bad clauses didn’t make it into the draft that will get
voted upon in the national referendum, what’s left on mining in the draft Constitution is vague
at best and often contained in generalizations that have multiple possible interpretations and
generates uncertainty among FDI. He noted how (translated) “mining companies want laws
that won’t change in the next 20 years” and that due to the uncertain language and overly
generalized concepts, the new draft was booting too many matters to the national Congress. If
the industry is then governed by simple laws, they are laws that could change on political whim
and the changing of governments every so many years. Concrete examples include the way the
constitution wants mining concessions to change from legally owned in perpetuity to owned by
the State and administered for the concession holder. He says the text in question is incomplete
24

and would need Congress to pass laws, which may change under the next Congress or allow
companies to appeal against any State move to change ownership rights. As another example,
he noted existing trade agreements with countries such as Canada and Australia (both
important for mining) are simply ignored by the draft, again opening Chile up for a whole raft of
legal problems down the line due to discrimination. Then Weinstein says that in some places,
the draft “simply doesn’t make sense”, for example it talks of substituting lithium mining with
sodium, or how grapheme mining may replace copper production, in the type of speechifying
that’s made by people who simply do not understand the industry. He sums up by saying that
feedback from mining companies is how they feel as though they are losing judicial protection
and that the problem isn’t what is in the draft, it’s what’s missing.
The other expert lawyer on the call, Maria Luisa Baltra, admitted Chile’s mining law needs
perfecting and that the draft seems to aim for future concessions granted with time limits for
ownership, particularly for the hot new demand for lithium concessions. She also noted that
away from the items directly related to mining, those areas of the constitution covering water
use will also affect the industry. The draft contemplates that water becomes a “national
common asset” and no person or concern would have dominion over water in any of its states
(including rivers, wetlands, glaciers etc). She also said that if passed the draft would give
automatic rights on prior consultancy to indigenous and/or local communities to any public
works (e.g. a mining project and community consent would be required
She also noted that the draft and its 499 articles have some articles that contradict each other,
such as include contradictions in articles which need to be harmonized for the final proposed
constitution. An example is the expected growth of the lithium mining industry, that would
benefit from becoming a strategic product and given fast-track status. However, most lithium is
located beneath high altitude salt flats (salares), which in the draft get special environment
protection in a separate article of the draft. “Which rights would have dominion?” was her
unanswered question.
My overall takeaway from the hour long presentation was that Chile’s mining industry is mostly
worried about the level of uncertainty it’s adding to its legal structure for the mining sector.
However, it was interesting that this legal team had zero concerns to voice over the new Boric
government, as all its worries are centred on a draft Constitution that a) is on course to be
voted down by a country falling quickly out of love with the idea and b) even if it is voted up,
would be so full of holes in most of its clauses pertaining to mining that any company adversely
affected would likely have legal recourse to either reverse or delay any real world effect. Chile’s
Chamber of Mining is concerned about the lack of specific clauses, I was heartened by their
clear lack of concern about the sitting President and his team.
PDAC and LatAm
This year’s PDAC is on this week in Toronto, later in the calendar than usual for Covidian
reasons and when it comes to South America, Tuesday June 14th is the most relevant with
Tuesday morning dedicated as “Peru Day” and Tuesday afternoon is “Brazil Day” (it’s not up to
me to tell them they have half days) (11). Of the two presentations, Brazil Day is more
geological and company-centric and perhaps the most interesting segment being the panel
discussion between CEOs working the country at the end of the afternoon. As for Peru, the first
hour and a half is the time to tune in with three half-hour presentations from important
government representatives.
 9am: Peru’s (brand new) Minister of Energy and Mines, Alessandra Herrera
 9:30am: Peru’s Minister of Economy & Finances, Oscar Graham
 10am, Peru’s Central Bank President, Julio Velarde
The new MINEM Herrera will talk on “Challenges, Views and Opportunities”. Peru’s new-ish
FinMin Graham has been the only minister to make any sense in the current Anibal Torres
government and has publicly dissented with some cabinet decisions. An orthodox economist,
he’s a good warm-up act to the real reason to attend this show, Julio Velarde. If you’re ever
25

going to hear the truth from a Peruvian public servant, it’s from the adult in the room. Those of
you attending PDAC would do well to make it for that half hour.
Market Watching
Deferred
This time next week, PDAC should pack this segment solid.
Conclusion
IKN682 is done, we end with bullet points:
 I have writer’s block about the whole subject of Peruvian politics. Perhaps because it’s
in my face on a daily basis, perhaps because it’s ultimately trivial and won’t affect the
country’s mining industry as much as is made out (particularly by President Castillo’s
opponents) or perhaps because it’s difficult to sum up the whole mess in a piece that
wouldn’t run to 10,000 words. I’ve come to the end of another weekend’s report and
avoided writing on Peru’s politics, its mining conflicts and its future. Must try harder.
 Or more likely, I more concerned about what’s going on in Colombia to worry about
Peruvian trivialities, as a Petro win would institutionalize an actively anti-mining
government in a large and important regional state. Meanwhile, more Colombians now
seem to realize that a vote for the populism of Rodolfo Hernández is a vote for risk and
gambling with the next four years. Pick your poison.
 It’s not all bad out there, as not only does Anacortes (XYZ.v) have an interesting and
cheaply priced gold prospect, but the story behind the name is good and I like their
choice of ticker symbol. Gold value hunters, look here.
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.cnbc.com/2022/06/10/gold-markets-us-treasury-yields-inflation-data.html
(2) https://secureservercdn.net/104.238.68.196/qj3.450.myftpupload.com/wp-content/uploads/2022/05/WEBSITE-XYZ-
May-30-2022.pptx.pdf
(3) https://discoverysilver.com/news/discovery-announces-leadership-transition-tony-makuch-appointed-as-interim-
chief-executive-officer/
(4) https://aldebaranresources.com/site/assets/files/5823/2022_jun_7_press_ss_exercises_warrants.pdf
(5) https://www.palamina.com/news/2022/6/9/palamina-secures-100-of-the-mineralized-gold-trend-at-the-usicayos-gold-
project
(6) https://nevadacopper.com/news/nevada-copper-provides-operating-and-financial-update/
26

(7) https://www.mining.com/web/gold-fields-investor-tells-miner-to-scrap-yamana-deal/
(8) https://kingfishermetals.com/kingfisher-announces-closing-of-upsized-private-placement-financing/
(9) https://www.aimdigital.com.ar/nacionales/una-minera-estatal-ahora-en-manos-de-scioli-1.htm
(10) https://www.noticiasrcn.com/elecciones/ultimas-encuestas-presidenciales-en-colombia-421535
(11) https://www.pdac.ca/convention/programming/mining-country-sessions
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
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Stocks To Follow Closed Positions 2019
Closed in 2019 closed close price
Atico Mining ATY.v jan'19 C$0.55 24-Jul-16 C$0.32 41.8% patience ran out, made room
Candente Copper DNT.to jan'19 C$0.075 3-Ago-18 C$0.05 -33.3% tiny trade, made room for new
B2Gold BTO.to feb'19 C$2.11 12-Set-14 C$4.05 91.9% Took 1/2 profits, reduce size
Western Copper WRN.to mar'19 C$0.80 20-Ene-19 C$0.81 1.3% Spec trade that didn't work
B2Gold BTO.to mar'19 C$2.11 12-Set-14 C$4.15 96.7% Took rest of profit.
GT Gold GTT.v mar'19 C$1.17 10-Oct-18 C$0.90 -23.1% Took loss. Story changed
NovaGold NG apr'19 U$3.84 13-Ene-19 U$4.15 -8.1% Short that didn't work, sm loss
Zinc One Z.v jun'19 C$0.47 14-Set-17 C$0.025 -94.7% clearing out dead trade
Amarillo Gold AGC.v jun'19 C$0.24 22-Ago-18 C$0.20 -16.7% clearing out dead trade
New Gold NGD aug'19 U$1.44 31-Jul-19 U$1.23 14.6% ST short win thru Q2 earnings
IMPACT Silver IPT.v aug'19 C$0.39 21-Jul-19 C$0.46 18.0% took a quick profit
Fiore Gold F.v aug'19 C$0.34 26-May-19 C$0.56 64.7% Took profit, 2q19 avg
Chakana Copper PERU.v oct'19 C$0.84 22-Mar-18 C$0.16 -81.0% Exploreco trade fail. Want space
Wesdome Gold WDO.to oct'19 C$2.37 14-Oct-17 C$7.57 219.4% Sold half, profit taking
Superior Gold SGI.v oct'19 C$1.46 8-Abr-18 C$0.47 -67.8% Failed sm spec on Au. Moved on
Amerigo Res ARG.to nov'19 C$0.91 23-Set-18 C$0.50 -45.1% worst trade of year, hefty loss
Guyana Goldfields GUY.to dec'19 C$0.94 14-Abr-19 C$0.56 -40.4% taking the loss, financials weak
Tethyan Res TETH.v dec'19 C$0.30 8-Set-19 C$0.16 -46.7% tiny trade, word of probs in co
Stocks To Follow Closed Positions 2018
Closed in 2018 closed close price
Amarillo Gold AGC.v jan'18 C$0.38 24-Mar-17 C$0.31 -18.4% Cut away losing trade
Riverside Res RRI.v jan'18 C$0.39 27-Jun-16 C$0.31 -20.5% Cut away losing trade
Eros Res ERC.v jan'18 C$0.175 1-Mar-17 C$0.16 -8.6% CEO sudden exit, not good
Excellon Res EXN.to jan'18 C$1.54 9-Oct-16 C$1.66 7.8% 4q17 poor, one too many bad qtrs
Wesdome Gold WDO.to jan'18 C$1.68 15-Dec-17 C$2.06 22.6% Near-term trade block, took profit
Sabina G&S SBB.to apr'18 C$2.06 17-Dec-17 C$1.77 -14.1% Near-term trade, bad timing, small
B2Gold BTO.to May'18 C$2.11 12-Sep-14 C$3.67 73.9% sold 25% to reduce exposure
Lara Expl. LRA.v May'18 C$0.65 11-Feb-18 C$0.58 -13.8% Spec on Brazil didn't work
Solitario XPL June'18 U$0.72 19-Mar-17 U$0.41 -43.1% Failed trade, may return in 4q18
SolGold plc SOLG.to July'18 C$0.475 19-Nov-17 C$0.415 -12.6% cut, trade didn't perform
Pan American PAAS July'18 U$17.90 1-Jun-18 U$16.30 8.9% modest win on short position
NGEx Res NGQ.to Sep'18 C$1.01 22-Oct-17 C$1.00 -1.0% Closed to reduce Argentina exp
Sandstorm Gold SAND Oct'18 U$3.73 17-Apr-16 U$4.13 10.7% partial sale to raise cash for GTT
Aldebaran Res ALDE.v Nov'18 n/a n/a n/a n/a liquidate spin out of REG
Stocks To Follow Closed Positions 2017
Closed in 2017 closed close price
Continental Gold CNL.to Jan'17 C$2.68 22-May-16 C$4.17 55.6% trade closed, profit taken
Focus Ventures FCV.v Jan'17 C$0.23 1-Jul-12 C$0.05 -78.3% Give up, a disaster trade
Wesdome Gold WDO.to Feb'17 C$1.72 28-Aug-16 C$3.00 74.4% Target hit, sold, good trade
Belo Sun BSX.to Mar'17 C$0.90 30-Jan-17 C$0.90 0.0% failed near-term flip trade
Lara Expl. LRA.v Mar'17 C$1.15 8-Apr-12 C$1.05 -8.7% cut to make room for new trade
Rye Patch Gold RPM.v Apr'17 C$0.31 2-Sep-16 C$0.32 3.2% cut for doubts & new stock
Cordoba Min. CDB.v Jun'17 C$0.75 15-Sep-16 C$0.63 -16.0% closed
Constantine Metal CEM.v Aug'17 C$0.135 9-Apr-17 C$0.28 107.4% spec trade closed, good win
Red Eagle Min. R.to Sep'17 C$0.67 13-Dec-16 C$0.27 -59.7% IKN's biggest failure in years
Starcore Intl SAM.to Sep'17 C$0.61 10-Jan-15 C$0.31 -49.2% Patience ran out
B2Gold BTO.to Dec'17 C$2.11 12-Sep-14 C$3.39 60.7% sold small portion for liquidity
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Stocks To Follow Closed Positions 2016
Closed in 2016 closed close price
Phoscan Chem FOS.to jan16 C$0.28 29-mar-15 C$0.265 -5.4% Buyout trade, bot but poor deal
True Gold TGM.v jan16 C$0.18 23-ago-15 C$0.25 38.9% okay trade, sold on pol risk
McEwen Mining MUX jan16 U$1.09 25-ene-15 U$1.20 10.1% sold due to lack of value
Lake Shore Gold LSG.to feb-16 C$1.10 07-abr-15 C$1.69 53.6% bot out, sold early in process
Atacama Pacific ATM.v feb-16 C$0.19 26-abr-15 C$0.40 110.5% sold for a double on big pop
New Gold NGD feb-16 U$2.06 24-ene-16 U$2.96 43.7% closed good near-term trade
Sandspring Res SSP.v mar-16 C$0.195 18-oct-15 C$0.32 64.1% Hit tgt, took profit
Teranga Gold TGZ.to mar-16 C$0.54 15-feb-15 C$0.60 11.1% disappointing trade
B2Gold BTG mar-16 U$0.85 13-ene-16 U$1.30 52.9% Separate trade on B2, hit tgt
Dalradian Res DNA.to mar-16 C$0.67 27-oct-13 C$1.00 49.3% Hit target, sold, good win
HudBay Min. HBM may-16 U$4.10 03-abr-16 U$4.36 -6.3% Short trade, poor timing
Nevada Sunrise NEV.v may-16 C$0.185 28-feb-16 C$0.23 24.3% V. small, no big deal either way
Richmont RIC jun-16 U$7.60 01-may-16 U$9.30 22.4% near-term trade, profit taken
INV Metals INV.to jul-16 C$0.25 03-abr-16 C$0.95 280.0% Trade closed on time
HudBay Min. HBM aug16 U$4.98 09-jun-16 U$4.80 3.6% short trade covered, no big deal
Miranda Gold MAD.v oct-16 C$0.125 03-jul-16 C$0.10 -20.0% tiny spec trade, didn't work
Avino G & S ASM nov-16 U$2.00 21-oct-16 U$1.40 -30.0% Abandon trade on bad bot deal
Stocks To Follow Closed Positions 2015
Closed in 2015 closed close price
Argonaut Gold AR.to jan'15 C$1.47 14-dec-14 C$2.53 72.1% Big gain small time, profit taken
Amerigo Res ARG.to jan'15 C$0.405 20-jul-14 C$0.285 -29.6% Given up on weak Cu prices
Reservoir Min. RMC.v jan'15 C$6.05 18-jun-14 C$4.12 -31.9% sold on Cu downturn
Coro Mining COP.to jan'15 C$0.075 26-jan-14 C$0.035 -53.3% sm, sold on Cu downturn
Fortuna Silver FSM mar'15 U$4.12 10-nov-14 U$3.75 9.0% Short used as hedge
GoldQuest Min. GQC.v mar'15 C$0.26 27-oct-13 C$0.085 -67.3% given up ghost
Rio Alto Mining RIO.to apr'15 C$2.30 07-apr-11 C$3.57 55.2% Top pick, bot out, big win
Timmins Gold TGD jun'15 U$0.60 19-apr-15 U$0.62 3.3% near-term trade, out of time
First Majestic AG jul'15 U$10.51 10-aug-14 U$4.55 56.7% horrible failed trade
NovaCopper NCQ.to jul'15 C$1.05 09-apr-14 C$0.50 -52.4% no more Cu exposure, sm sell
McEwen Mining MUX aug'15 U$0.695 21-jul-15 U$0.92 32.4% Closed nearterm flip for win
Midas Gold MAX.to sep'15 C$0.39 21-sep-15 C$0.35 -10.3% Sm. trade idea that didn't work
New Gold NGD oct'15 U$2.18 23-aug-15 U$3.05 39.9% trade closed, profit taken
Legend Gold LGN.v nov'15 C$0.085 01-mar-15 C$0.035 -58.8% tiny "land grab" idea, failed
Timmins Gold TGD nov'15 U$0.245 20-sep-15 U$0.15 -38.8% small near-term loser
Please note that due to space considerations closed positions 2009 to 2014 are now
available on request, or were published in any edition to IKN553 (end 2019).
Important Disclosure
The information and opinions contained within this report reflect the personal views of the author and therefore all
material within should not be construed as accurate or reliable or be utilized as advice for investment or business
purposes. Independent due diligence and discussions with ones own investment and business advisor is strongly
recommended. Accordingly, nothing in this report should be construed as offering a guarantee of the accuracy or
completeness of the information contained herein, as an offer or solicitation with respect to the purchase or sale of any
security or as an endorsement of any product or service. All opinions and estimates included in this report are subject to
change without notice. It is prohibited to copy or redistribute this report to any type of third party without the express
permission of the author.
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