IKN #693Premium

The IKN Weekly
Week 693 August 28th 2022
Contents
This Week: In Today’s Edition, The Fed and that punchbowl.
Fundamental Analysis: Minera Alamos 2q22 financials.
Stocks to Follow: Superior Gold (SGI.v), Goldshore Resources (GSHR.v), Anacortes Mining
(XYZ.v), Aldebaran Resources (ALDE.v), QC Copper & Gold (QCCU.v), Rio2 Ltd (RIO.v).
Copper Basket: Overview, Hot Chili (HCH.v) (HCH.ax), Regulus Resources (REG.v), Copper
Mountain (CMMC.to), Nevada Copper (NCU.to).
Producer Basket: Overview, Barrick (GOLD).
TinyCaps Basket: Overview, Manitou Gold (MTU.v).
Regional Politics: Peru’s ministerial mess and end of the proposed tax hike on mining, Chile’s
mining scene update, Chile: Markets write off a victory for the Draft Constitution, Chile: Markets
write off a victory for the Draft Constitution, Brazil Presidential election TV debate.
Market Watching: Chesapeake Gold (CKG.v) 2q22 financials, Newcore Gold (NCAU.v) 2q22
financials, Mene Inc (MENE.v) 2q22 financials.
I remind subscribers that no part of this newsletter can be copied, reproduced or
given to any third party without the express permission of the author.
This Week
In Today’s Edition
 The Fed’s Jay Powell spoke Friday and as suspected, the world listened. We take our
cue from Friday’s jawbone action and market reaction in today’s intro, as this
sentiment-driven market shows every sign of pushing metals lower.
 Copper remains the conundrum, however. We know the financial world wants to mark
down commodity prices into a recession scenario, but China’s demand looks to be as
strong as ever and is now being bolstered by stimulus demand. With supply crimps on
the other side of the pipe, we pick over the case for copper once again in The Copper
Basket.
 Last week saw lots of juniors report their Q2 financials and we cover several of them
this weekend to a greater or lesser extent. But chief among coverage is of course
Minera Alamos, firstly because it’s our Top Pick stock but also due to its sparkling set of
reported numbers and the now imminent catalyst of Cerro de Oro. No need to “sell em
all”, even if we turn out to be in a bear market and MAI.v looks to be ready to re-rate
(at long last).
The Fed and that punchbowl
"So we beat on, boats against the current,
borne back ceaselessly into the past."
The Great Gatsby, F. Scott Fitzgerald
In last weekend’s intro “When in a Jackson Hole Stop Digging” we considered Jay Powell’s
upcoming policy speech would be an important one. With the next FOMC set for the end of next
month, Powell had the opportunity to jawbone the preferred Fed narrative and we even noted
how he’d likely get a free pass even after last year’s “Transitory Inflation Only” debacle when
he banged on his We Hate Inflation drum. Here’s a quick reminder from last weekend’s note:
“…the Fed gets over a month to regain the narrative it prefers and as its whole focus
1

is now on inflation suppression, we’re going to get that in spades on Friday. So
summing up, this year’s Jackson Hole is more important than the average edition. We
also know from last year’s event that the Fed’s stance can be dead wrong without
there being much pushback, which gives Jay Powell yet another reason to jawbone
hard. We should take care and assume the Plain Vanilla Recession scenario gains
ground. That’s not good for metals in the near-term, no matter whether hard data
coming in September points to the more likely stagflation scenario.
Indeed, the anticipation rose during the week and come Friday morning, the market sold off
from the open as by then, the transcript of his speech had been published, no need to wait until
10am and the live show). We got the “DOW DOWN A THOUSAND!” headlines in non-trade
press, we got everything that isn’t a USD selling off and sure enough, the carefully accrued
gains of the week in gold (GLD) and the miners (GDX) GDXJ) vaporized into a waterfall:
Up to then the GDX(J) had been up 5% enjoyed a constructive week, too. Sigh. So what gave
the market the willies? Answer, pure jawbone and here are a couple of soundbites from the
official transcript (1)
"Restoring price stability will take some time and requires using our tools forcefully to
bring demand and supply into better balance. Reducing inflation is likely to require a
sustained period of below-trend growth,"
"Moreover, there will very likely be some softening of labor market conditions. While
higher interest rates, slower growth, and softer labor market conditions will bring down
inflation, they will also bring some pain to households and businesses. These are the
unfortunate costs of reducing inflation. But a failure to restore price stability would
mean far greater pain."
This fit snugly into the Standard Recession Narrative and over in the bonds market, the yield
curve inversion steepened slightly (2). We had seen a reading of as low as -0.48% the week
before last, that had recovered to -0.25% on Wednesday but by the time the Friday market had
finished, we were back at -0.33% and while Jerome Powell made some half-hearted efforts to
promote a potential soft landing, the likelihood of real recession is now baked in. This long-term
chart is a reminder that every single yield curve inversion is duly followed by a recession period
(grey shading) and, while that may be painted in retroactively, warnings of job losses and
“some pain to households” did not go unheeded.
2

To use the modern vernacular, let’s unpack all this. The first point to make is that last Friday
did not change anything in the real economy (underlined and bold-typed for a reason).
 Before the speech, The Fed took the position of using its tools to combat the scourge of
inflation using Whatever It Takes and Jay Powell.
 Before the speech, the market countered that with “The Fed Pivot” narrative and said
that talking the hardline policy was one thing, but when push comes to shove The Fed
would be mad to deliberately drag the US economy into a deep recession with all the
job losses that would entail, not least due to the timing of the electoral cycle.
After the speech, The Fed’s position hasn’t changed, neither has those who would fight them.
What has changed is the market’s choice of which narrative to believe and as we now have a
period of a few weeks before any serious policy decisions need to happen, the jawbone factor
tipped the balance and the Head of the Federal Reserve snatched the proverbial punchbowl in
the way demanded by his predecessors. So we can call him and his committee friends all the
names we want and indeed, peddlers of doom or scandal mongering mountebanks they may
turn out to be, or “he got it wrong last year, why believe him this time?” is also bound to make
the rounds but it’s not going to take the nerves and fear away from the broad market, not for a
while at least. We also know that while high, US CPI notched down last month from CPI +9.1%
to CPI +8.5% and can be construed as the start of the correction period that the Fed wants to
adopt. We also know that under the headlines, money velocity and credit availability has dried
up and that business inventories are dropping, those are the type of macro data the Fed
watches carefully to see whether policy is taking effect so they’ll be heartened by the initial
response and ready to do more.
The major question that remains to be answered is the same one we’ve had from the start of
this process and at some point we will get more clarity on whether our future beholds
Recession or Stagflation, but not today and not for September, either. Pure jawbone or not,
Jerome Powell’s speech did what he wanted of it and this weekend, my phone’s push feed
includes headlines such as “Powell’s Jackson Hole Speech Delivers A Fatal Blow To Markets”, or
“A Recession Is Inevitable, Don’t Get Fooled By Bear Market Rallies” (two of Seeking Alpha’s
Must Reads of the week, so I’m told). So yes it’s jawbone, it’s blather and it may turn out to be
another bunch of phooey from a FedHead but for the next few weeks, reality will take a back
seat to sentiment and the market will price in a classic recession scenario.
GLD gold holdings, 2021 to date (metric tonnes)
1200
1180
1160
1140
1120
1100
1080
1060
1040
1020
1000
980
960
940 920
900
The bottom line: For my money (literally), there’s still no reason to dive back into this mining
company sector with new or preserved cash. The very best case is that the week ahead proves
me wrong, gold catches a bid, copper ignores the financial world’s perceived headwinds (see
Copper Basket today, below) and rises on real world Chinese demand. In that case, waiting
another week to see if Jay Powell’s message is rejected is common sense and we won’t miss
much. However and as laid out above, the sense is that the Fed Jawbone will hold sway for at
least until the next FOMC meeting and maybe further out than that. Whether real or fictitious,
the jawbone seems to have done its job and the punchbowl is being snatched away before our
very eyes. In fact, I’m probably closer to selling another position (or two) than adding anything
3
02/21/13 12/1/02 12/2/9 12/3/1 12/3/12 12/4/01 12/4/03 12/5/02 12/6/9 12/6/92 12/7/91 12/8/8 12/8/82 12/9/71 12/01/7 12/01/72 12/11/61 12/21/6 12/21/62 22/1/51 22/2/4 22/2/42 22/3/61 22/4/5 22/4/52 22/5/51 22/6/4 22/6/42 22/7/41 22/8/3 22/8/32
mt GLD: Inventory/Price Ratio, 2021 to date
7.00
6.80
6.60
6.40
6.20
6.00
5.80
5.60
source: SPDR GLD data 5.40
13/21/0202 02/1/1202 9/2/1202 1/3/1202 12/3/1202 01/4/1202 03/4/1202 02/5/1202 9/6/1202 92/6/1202 91/7/1202 8/8/1202 82/8/1202 71/9/1202 7/01/1202 72/01/1202 61/11/1202 6/21/1202 62/21/1202 51/1/2202 4/2/2202 42/2/2202 61/3/2202 5/4/2202 52/4/2202 51/5/2202 4/6/2202 42/6/2202 41/7/2202 3/8/2202 32/8/2202
Source: SPDR data, IKN calcs

extra, but that’s another decision that can wait at least a week. Style beats substance in this
current market and my personal opinion that we’re in a commodity-supportive Stagflation
scenario, rather than a in commodity bearish Plain Vanilla Recession is neither here nor there;
for the next few weeks, The Fed’s jawbone looks set to rule the roost and push down prices of
most things in USD terms.
Not a particularly bullish or positive op-ed intro this week, but you have to call ‘em how you see
‘em and with that, let’s move on to a company that is shaping as one of the exceptions for the
months ahead that could prove the rule.
Fundamental Analysis of Mining Stocks
Minera Alamos 2q22 financials (in Canadian Dollars unless stated)
Our Top Pick reported its 2q22 on time and in good style last week and we can even spot when
the filings went in on the near-term chart:
Yes, it was post-close on Wednesday and as seen by the open Thursday as well as the
sustained trading on a difficult Friday, the contents pleased the market. Admittedly out Top Pick
has failed to take off in 2022 to date but if your glass is half full, neither has it lagged a poor
macro backdrop for precious metals miners. So last week’s filing may mark a turning point in its
fortunes and bring new eyes and money to a story that’s jam packed full of deep value
compared to other miners. But you know that already. I hope.
Anyway, today we look at the nuts and bolts of the 2q22 report and of a company that’s still
officially in pre-commercial production status at its first operation, Santana. Due to that, we’re
not going to obsess too much on its P+L charts and instead, run an eye over the standard
balance sheet items to get the general idea, then on to some specific data points that give
better clues on the state progress at what it still a very young and fast-growing company.
Here are the overview asset and liability charts and we’ve followed the development of these
visuals over many a quarter now. The easy one to cover is liabilities (below right), which still
total less than C$5m. The only real change in recent times has been the trade payables as
Santana has moved from a project into a working and producing mine, 100% normal and the
low numbers are easily managed. Along with the undrawn U$3m working capital facility MAI
has with Ocean Partners (a good deal with a good biz partner), the liability situation is optimal.
MAI.v: Assets
50
45
40
35
30
25
20
15
10
5
0 4
61q4 71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
$m MAI.v: Liabilities per qtr
10
9
inventories
fixed 8
other current 7
cash 6
5
4
3
2
1
0
source: company filings
61q4 71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
source: company filings
srallod
fo
snoillim
LT liabs
current liabs

As for assets (above left), they’ve begun the expansion that happens when explorecos grow up
and since end 2021, we now have inventories as a formal and separate line item. Fixed assets
are beginning to grow as Santana work is capitalized and that will get another boost in the near
future when Cerro de Oro comes off the drawing board and begins its build-out, but it’s worth
underscoring the overall low asset carry of the MAI books and indeed, one of its major selling
points is the advantages of bringing on producing gold mines for low overall capex. To put
some hard numbers on the total of $41.977m as at 2q22 for the proverbial snapshot..
 Mineral properties/plant/equipment: $14.977m
 Treasury: $9.032m
 Inventories: $9.453m
 Long-term tax receivable asset: $5.198m
 Other current: $3.321m
…and aside the tax receivable (set to be locked up for some time to come) that’s a strong and
liquid look to a small balance sheet that’s about to expand. Some more details on that key cash
and liquidity position here:
MAI.v: Cash treasury per qtr
24
22
20
18
16
14
12
10
8
6
4
2
0
That C$9.032m in treasury comes before the $4.372m in gross proceeds raised by the recent
placement (closed July 15th), so the improvement comes from sales of pre-commercial
production gold from Santana. That’s good and we know
MAI was concerned about covering any sales-to-payment
lag in these early stages of Santana, what with Cerro de
Oro about to take centre stage and requiring capex. That
now looks nicely in-hand and with the untapped U$3m
Ocean Partners facility in the company’s back pocket, we
can all-but discount any near-term liquidity issues. As for
working capital, adding inventories into the mix makes the
totals look even better ($17.508m) but that’s less about
financial liquidity as seen in this chart (right). MAI sold
down finished metal inventory during the quarter and on-
site supplies (at Santana are now at their steady state.
The difference is the amount of gold on pad at the mine
and in Q2, that moved up sharply to a cosy value of $9.087m.
This does a nice job of bolstering the current assets and working capital, but it’s also what
needs to happen at the start of a new mine and it’s no as if MAI can suddenly cash that $9m or
so in and turn it into dollars without replacing the on-pad ounces. Instead, we should see that
total climb more steadily in the quarters to come and take its place as a fixture in the balance
sheet, with new ounces added as production increases.
To close off, we drill down on the final and largest assets line item, that of Mineral properties,
Property, Plant and Equipment. We ignore the $550k or so in office, vehicles and buildings to
focus in on what matters, the mining equipment and the Construction in progress at Santana
(right). Here we see how Mining Equipment has basically levelled out over the last three (four?)
5
61q4 71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
source: company filings
srallod
fo
snoillim
28 MAI.v: Working Capital per qtr
26
24
22
20
18
16
14
12
10
8
6
4
2
0
-2
61q4 71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
source company filings
srallod
fo
snoillim
MAI: Inventories
694.5
337.6
780.9
C$m
10 supplies
9 finished metal inv
8 leach pad ore
7
6
5
4
3
2
1
0
4q21 1q22 2q22
source: company filings

quarters which tells us the company has everything it needs on site at Santana. These days the
difference comes from Construction costs and
that makes sense, with another $300k put into
MAI.v: Fixed asset carry
the mine during Q2. The numbers and absolute 12.0
dollar ticket prices of what MAI is doing at 11.0
10.0
Santana are relatively small compared to many 9.0
other mining companies but that’s the nature of 8.0
7.0
the small open pit design and plan, what matters 6.0
5.0
is the cadence of the spend and the chart
4.0
conveys visually what we understand to be the 3.0
2.0
case on the ground, that Santana is ready to roll
1.0
and we’re just waiting for the final ducks to get 0.0
into line (and some rainfall) in order to see it
declared in official commercial production.
To round off before moving to Q2 production details, here’s the updated share count chart with
the total now around 457.684m shares
outstanding today, derived from the Q2 total and
adding the 7.95m shares from the recent
placement dated July 15th, plus 500,000 shares
paid as part of the Cerro de Oro deal (third
staged payment of five). That’s seen the share
count creep up quietly, but the obvious benefit is
the top-up of the treasury position as MAI moves
into what promises to be a period of sharp
growth. For the record, the updated share count
and this weekend’s C$0.49 share price gives us a
market cap of C$224.27m, or U$179m at the
standard house forex of CAD1=USD0.8.
Production to date and estimates to year-end
We now production at Santana, mixing what we know to date about gold production, sales and
revenues with a rough idea of what we can expect for the next two quarters. The NRs and
MD&As from MAI.v in 1q22 and 2q22 have offered up a mix of information sometimes giving us
monthly data and other times quarterly only. By careful reading, some reverse engineering of
what we known about production, sales, inventories and ounces now on pad, plus a thumb in
the air and some guesswork, this chart breaks down what we know about monthly production
so far this year at Santana, with some notes below:
MAI at Santana: Approx production per month in ramp-up
Oz Au
2400 (ests for 2q22 months)
2200
2000
1800
1600
1400
1200 2275
1000
800
1370
600 1130 1200 1100
400 890 800
200 401
0
4q21 jan feb mar apr may jun jul
source: MAI data, IKN calcs and ests
 We know the mine produced 401oz in 4q21, we also know the monthly totals for 1q22
because the company told us
 We know the July production number of 2,275oz gold, because that was in the 2q22
literature as well
 We don’t know exactly how the 2q22 months break down, but that’s a rough guess
based on the sales for the quarter of 3,128.58 oz Au, as reported
6
81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
C$m
Mining equipment
Construction in progress
source: company filings
MAI.v: Shares Out
(NB: Cut-down Y axis)
59.003 59.003 59.003
9.053
20.473 20.473 93.673
64.704 24.014
83.634 35.934 45.144 49.144 51.644 2.644 84.844 32.944 86.754
500
475
450
425
400
375
350
325
300
275
250
225
200
81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3
source: company filings
serahs
fo
snoillim

 Leach kinetics are going as planned, with low reagent consumptions and cycle times
towards the target 75% recoveries as expected. Once long-term residual leaching is
take into account, Santana may return up to 80% recoveries over time
What we can take away from the above chart is that MAI had a production slowdown in Q2 and
we even know why, as the company reported
on several occasions that an unseasonable lack
MAI: Gold sales, per qtr
of rainfall had affected its ramp-up. However,
we also know that the rains arrived in July and
we can now add that this August has seen the
rains return in force. That’s good news, it
means the mine is back and able to schedule
3128.58 the rest of its year more accurately and with 2157.69
water now plentiful, there’s every reason to
expect MAI to declare Santana in commercial 401
production soon (let’s pencil in Q4). With
“commercial production” set at around 25k oz
gold/year and early quarters likely to touch 3k
oz Au per month, this chart lays out how your author expects the next two quarters to stack up
against the last three non-commercial quarters:
We know July will be a good month, but part of that will be due to catch-up and August won’t
keep the same pace. The above is therefore best guess stuff and my ballpark of how the
assumed gradual improvement in gold production from September to year-end can take shape.
As for that that means in money terms, let’s begin by considering the last two quarters as filed
by MAI in this chart:
C$m MAI.v: financial results
8 Revenues 7.269
7 total exp
6 5.16 mine op inc
4.691
5 net income
3.631
4
2.578 2.73
3
1.529
2 1.068
1
0
1q22 2q22
source: company filings
Please note that both 1q22 ands 2q22 were officially “pre-production” and therefore do not
have to make standardized filings for sales, COGS etc, but we have enough information to see
the margins it is now running. In Q1, C$5.16m of revenues came from 2,157.69 oz gold sold
and from that, total expenditures came to C$3.631m (COGS C$2.255, the rest expenses of one
sort or another). That left a mine operating income of C$1.529m and a net as seen.
To the right of that chart, the same criteria for Q2 and we’re already seeing how economies of
scale kick in to improve margins, even before the mine goes commercial. This next chart puts
those financials into a per ounce basis and then we take a stab at what to expect for the next
two quarters as well. Again, notes below:
7
0075
0008
Au Oz
10000
9000
8000
7000
6000
5000
4000 3000
2000
1000
0
4q21 1q22 2q22 3q22est 4q22est
source: company data, IKN ests
MAI Santana: Financial results and ests for next two quarters
1932
5401
3861
3232
2401
9941
1822
569
6131
0522
839
0521
C$/oz Au Avg received price C$/oz Au
COGS/Oz sold
2600 Total exp/Oz sold
2400
2200
2000
1800
1600
1400 1200
1000
800
600
400
200
0
1q22 2q22 3q22est 4q22est
source: company filings, IKN ests and calcs

 All prices in Canadian Dollars
 While COGS/oz remained roughly equal in Q1 and Q2, the total expenditures per ounce
dropped as the outside mine costs were diluted by higher production
 As we guesstimate 5,700oz production in 3q22 and 8,000oz in 4q22 (its first
commercial quarter, hopefully), that trend should continue and by the end of the year,
as long as the gold price doesn’t collapse on us we may see a mine clearing C$1,000/oz
on 8k oz sales.
 Yes indeed, that does mean a quarterly operating profit of around C$8m, or
approximately 1.5c/share QEPS.
Obviously, my estimates for the next two quarters are ballpark only best guesses and it’s
difficult to nail down the exact totals that will come from a small mine in any quarter of its first
year, let alone getting the gold price right in Canadian Dollars. But neither is this best-guess
scenario a wild and whacky one; we know Santana should be able to run at around 3,000oz per
month when fully wound up and running at a steady state and, thanks to the result sof two pre-
commercial quarters now in the books, we have an early indication of its true costs profile and
what it should be able to achieve once running at it nameplate capacity.
Now that the rains have arrived in earnest this month, the final piece in the Santana puzzle can
be put into place and with the ground work done, there’s every reason to expect this first MAI
operation to fulfil its promise as the cash generator to fund capex at its next major project, the
Cerro de Oro build-out.
Cerro de Oro news
As well as the Santana exploration program timing, the timeline slide from MAI’s latest
corporate presentation (3) is a reminder of how quickly the company’s second pipeline project,
Cerro de Oro, can be in production:
The permit applications are due filed this quarter and assuming normal passage of what are
likely to be the most straightforward of permits (even in Mexico), with a simple mine in a
welcoming zone for mining operations and locals (Ejido) fully on-board. However, the next
news on Cerro de Oro should comes before that because we know this from the NR…
Upcoming Conference Attendance: The Company will be presenting operational
advancements of the Santana gold mine as well as development plans and updates at
Cerro de Oro at both the Beaver Creek and Denver Gold Shows to be in held in
Colorado, U.S., from September 13-21st and welcome the opportunity to speak with
the investment community for the plans both this year and next.
…and on inquiry, we also know that the company is keen on getting at least the NR for the
much-anticipated 43-101 PEA for the Cerro de Oro project published before that conference
starts. To date, the case for Cerro de Oro has been based on its oxide inferred resource of 48m
tonnes grading 0.41 g/t for 630k oz gold, but the badly-kept secret is that MAI is very keen on
this project and expects the updated resource criteria and economics as outlined in the
upcoming PEA to show a significant improvement in those numbers, as well as a greatly
improved production scenario. So we have that potential catalyst coming soon and if MAI
delivers that 43-101 for the Denver conference as it would like, let’s say very soon. On that
subject, we also have an upcoming 43-101 technical report due on the Santana resource and
though that is also imminent, we understand that MAI has its priorities and wants to publish the
Cerro de Oro PEA first, as it considers its catalyst potential the greater of the two.
8

Discussion and conclusion
In Minera Alamos (MAI.v), you get a lot of company for C$224m this weekend. To begin, the
2q22 financials show that its first mine at Santana is now on-course for full commercial
production, running largely as predicted and is already showing itself profitable. The missing
link to raise the run rate to pad and increase production has been the lack of water from rainfall
and thanks to the rains arriving in July and especially this month of August (ironically there may
even be “too much rain” at the moment that may dilute the pad too much and slow down
kinetics slightly…no biggie though), we can expect the asset to start ramping toward the
targeted 2,500oz to 3,000oz per month rate. The financial results as seen last week, along with
the strength in balance sheet items and the upbeat guidance for both Santana and the next
project Cerro de Oro (which should be fully funded by current operations) means the delays to
the timeline at Minera Alamos (MAI.v) are now a thing of the past.
Today’s update doesn’t go into the longer-term plans at the company, instead we focus on the
first stages of MAI’s fully organic growth plans. Once the Cerro de Oro PEA is in place and
Santana is declared commercial and throwing off the type of free cash flow we expect (C$8m a
quarter, or 1.5c/share, would not surprise at all) we can then re-focus on the plans to upsize
Santana production to as high as 50k/year, then the big La Fortuna project comes into view, as
well the longer-term plans to acquire a 4th development asset. There’s also the La Verde Copper
asset located next door to Santana that may become a separate project or even a spin-out of
the mother ship. The project pipeline is clear and once the wider market gets the message and
understands Santana is one stage of many in its organic pipeline, the share price will get its
long-overdue re-rate. That’s the optimist’s view of course (and I’m a shareholder and fan, so
what did you expect?) but with major catalysts now at hand and the drought in the Santana
locality now a thing of the past, we’re about to get the news-rich period that MAI.v has
promised to deliver for some time. If you only believe me on one stock, make it this one.
Stocks to Follow
Another largely negative week for the Stocks to Follow list but despite there being only four
week-over-week winners (MAI.v, ARG.to, QCCU.v, APN.v), the gains from the larger weighted
positions also made it a modestly net positive one for my personal back pocket. Go figure. The
biggest upmove came from QC Copper & Gold (QCCU.v up 10.3%) and just for a changfe, there
was good reason to see that as well. There were two unchanged stocks on the week (NCAU.v,
MENE.v) and that leaves ten losers including four from the watchlist so I’m not listing them all,
just the bigger percentage hits taken by Goldshore (GSHR.v down 13.3%), Minera IRL
(MIRL.cse down 10.5%) and Palamina (PA.v down 10.0%)
Still only 16 covered stocks, still only two blobs of green. Cruel summer.
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$0.49 121.4% $1.14 tgt, #1 idea on FY22 dev
RECOMMENDED STOCKS
CheapCu exp low downside
Amerigo Res ARG.to STR BUY C$1.36 12-Dec-21 C$1.15 -16.9% risk
Superior Gold SGI.v STR BUY C$0.95 3-Apr-22 C$0.47 -47.4% Au prod jr, Q2 report this week
QC Copper&Gold QCCU.v BUY C$0.275 25-Apr-21 C$0.16 -47.3% Now drilling. Easy hold
Rio2 Ltd. RIO.v HOLD C$0.83 22-Apr-18 C$0.13 -83.7% Downgrade on permit denial
SPECULATIVE TRADES
Chesapeake Gold CKG.v SPEC BUY C$3.07 20-Feb-22 C$2.12 -27.4% Au leverage, small trade so far
Aldebaran Res. ALDE.v BUY C$0.72 16-May-21 C$0.73 6.9% hole 221 may give boost
Palamina Corp PA.v SPEC BUY C$0.295 21-Nov-21 C$0.09 -66.1% Au expl in S.Peru
Altiplano Metals APN.v HOLD C$0.31 17-Sep-21 C$0.195 -41.9% Cheap entry, plan on track.
Minera IRL MIRL.cse hold C$0.195 22-Jul-12 C$0.085 -51.3% CEO change will move stock
9

A WATCHLIST OF POTENTIAL TRADES. NB: I DO NOT OWN
Newcore Gold NCAU.v WATCH C$0.51 20-Mar-22 C$0.27 -47.1% potential gold exploreco trade
Electra Battery ELBM.v WATCH C$5.31 20-Mar-22 C$4.40 -13.6% potential battery metals play
Anacortes Mining XYZ.v WATCH C$0.49 22-Jul-22 C$0.43 -6.1% potential gold exploreco trade
Goldshore Res GSHR.v WATCH C$0.33 22-Jul-22 C$0.26 -9.1% potential gold exploreco trade
Western Copper WRN.to SPEC BUY C$2.41 20-Mar-22 C$1.76 -25.3% potential copper trade
LONG-TERM NON-MINING HOLD
Mene Inc. MENE.v adding C$0.66 6-Dec-20 C$0.55 -16.7% 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
Discovery Silver DSV.v Jun'22 C$1.77 24-Oct-21 C$1.39 -21.5% Cutting Ag exp.& raising cash
Element 29 ECU.v Jul'22 C$0.58 6-Mar-22 C$0.30 -48.3% sold to cut Cu exposure
2015 to 2021 annual closed positions in appendices below, 2009 to 2014 closed positions in editions IKN553 or earlier
Now for a few notes on some of the covered companies:
Superior Gold (SGI.v): In several ways, the market moved in the favour of SGI last week
when one considers its financial situation as a higher quartile cash cost gold producer exposed
to a second level world currency (i.e. the Aussie Dollar and that says second level, not second
rate). The combination of USD strength and a weakening of inflationary forces should help this
stock over the medium-term, but that’s unlikely to show in the day-to-day price moves of a
sentiment driven market and for the time being, SGI is likely to stay out of fashion after two
weak quarters of production. I’m willing to stick around and hold my position because it still has
the necessary financial strength to deliver on plans and the management team offers a logical
and attainable plan to get to 2023 and start showing the results we were promised back in late
2021, but seeing SGI in the penalty box for the time being also makes sense.
Goldshore Resources (GSHR.v): The same as many other TSXV exploreco stocks, GSHR
filed its 2q22 financials last week and for the sake of brevity, we hack this overview of as tock
we watch but do not presently own down to a single image:
10

The June 30th balance sheet of this company is a reasonably easy gauge of its current state,
for one thing because its financial year ends on March 31st and we see the Q4 and Q1 on this
page. Secondly, at first glance it looks as though GSHR has preserved cash but the treasury as
seen above also includes the $10.5m flow-though placement run at 60c that added over 18m
shares to the count (the company also paid Moss Lake vendors Wesdome (WDO.to) 8.3m
shares in a scheduled payment in June).
We know GSHR has cut down on its drill rig count in recent weeks in order to preserve capital,
but this company still runs a high background burn rate and that cash pile is unlikely to last
much more than four quarters even under its less aggressive exploration stance. If the gold
market rebounds and turns for the better, GSHR will offer a good speculative trade vehicle and
its profile ticks all the right boxes for a leveraged play: Large, low grade, under explored, being
drilled for a new resource count, good address and with the potential to become a multi-million
ounce high capex open pit mine in traditional Canadian mining country. However, this is a
highly risky trade at this stage of the cycle and only the brave should apply at the moment.
Being a self-confessed chicken, I pass
Anacortes Mining (XYZ.v): Anacortes was another to file its 2q22 last week, this time
midday Friday and the numbers came in very much as expected. Assets, liabilities, burn and
cash all very close to our model so to save a little
space, this very simple corporate structure with 24 XYZ.v: Working Capital per qtr
no debts and all the cash it needs to move 22
20
forward just gets one of the tracking charts today,
18
that of working capital (right). That came in at 16
14
C$9.31m and cash at C$9.8m is more than half of
12
its total asset count of C$16.6m. We can expect 10
XYZ to continue with its drill program in Q3 and 8
6
that will be the main newsflow for the rest of the 4
year. While sharing common traits with GSHR of 2
0
being an exploreco drill story looking for gold and
to create an open pit project, this one is a lot
cheaper and having recently suffered a heavy
dump on news that was somewhat negative
(without being the end of the world), a lot of the downside risk has been knocked out of the
equity price already. Again, I’m not eager to buy at this very moment but there’s enough to like
here to keep it on the radar.
Aldebaran Resources (ALDE.v): The webinar in which Kevin Heather (mostly) walked the
audience through the latest drill assays from holes #220 and #221 happened on schedule last
Monday and you can watch that on this link (4). It’s unfair to write three lines on it and then
claim the subject is covered, but while they are clearly excited about the volume added to the
main Altar East target by the success of deep hole #221, there was plenty of good news around
the implications of #220 as well. The mineralized intersects were shorter, but the information
from that holes allows the team to believe they will be able to expand the pit dimensions and
that’s important, as it would presumably allow the theoretical pit shell to go deeper and capture
more of the rock seen from #221 in a classic open pit scenario, with no need to “assume block
caving” for the deeps.
Also, credit where due and it’s a positive to see John Black and Kevin Heather, the men at the
centre of this story, buying stock on the open market (5):
11
02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3 tse22q4
source company filings, IKN ests
srallod
fo
snoillim

Those are smaller additions to larger positions (both have around 2.3m shares) but they
reaffirm the good “skin in the game” and general alignment to shareholders large and small.
Also, in the case of ALDE volumes are thin and the large insto-scale positions mean that most
of the 130m shares out are locked away from the open market, so while the overall volume
may be modest by market standards it makes a difference to a stock like ALDE.
QC Copper & Gold (QCCU.v): Our small copper exploreco finally got some traction from a
news release as part of its current “turn waste into ore*” program at Opemiska, potentially
because the grades and widths returned were slightly better than in previous results. The NR
out last Wednesday 24th (6) reported three new holes from the zone outlined as the starter pit
and all three holes cut mineralization in separate zones:
OPM-22-209 0.38% Cu and 0.38 gpt Au over 39.5m (from 86.5m to 126m)
And 0.75% Cu and 1.34 gpt Au over 13.6m (from 198m to 211.6m)
OPM-22-211 0.42% Cu and 0.18 gpt Au over 28.5m (from 51m to 79.5m)
And 0.62% Cu and 0.23 gpt Au over 54.0m (from 234m to 238m)
OPM-22-214 0.36% Cu and 0.23 gpt Au over 42.8m (from 35.2m to 78m)
And 1.49% Cu and 1.29 gpt Au over 3.5m (from 120m to 123.5m)
The drill maps that came along with the release (7) do a good job
in locating the cuts for us outsiders with this insert showing the
strategically interesting location and as juts one example, this
section (below) showing how the cuts are likely to add to
mineralized tonnage and reduce strip
rate for the resource update and
eventual economic studies. Some of the
deeper assays may or may not deepen
the proposed pit shell but the success of
these holes are in the bulk tonnage, not
even in the slightly better grades.
As for trading, the stock price shot to
18c once trading began Thursday but as
is often the case in this nervous market, that was taken as an
opportunity for liquidity by some holders (and I cannot blame anyone
for flipping out for a near-term profit) and the 18c prices turned into
a 16c close which is still the highest closing price since June and
came on decent volume, so that is a better result and something to
build on. QCCU is cashed up, has a clear program in place and we’re
approaching the resource update in Q4 that will certainly add
significant tonnage (rock and metal) to the current 43-101.
*We can say “ore”, the company cannot.
12

Rio2 Ltd (RIO.v): I’m as keen as anyone to get news from the troubled Rio2 and its Fenix
project and waiting patiently isn’t easy but it is at least understandable. The first thing it needs
to do is to secure the backing it needs for its appeals process in Chile and that may be as much
about the time required as the cash involved. We assume the first refusal will go to Wheaton
Precious Metals (WPOM) on this and as that’s a large company with layers of internal legal
bureaucracy to cover, a decision and announcement won’t happen in a question of days. That’s
why July and August have slipped past with no news, but there’s every reason to expect some
sort of announcement when “the world gets back to work” post-Labor Day. If RIO.v can’t find
common ground with WPM, there will be others they can deal with but I personally want WPM
to step up and show they are happy to further back this story, it would send exactly the right
message to the market and help shore up the RIO.v share price3.
The Copper Basket
After thirty-four weeks of 2022, The Copper Basket shows a loss of 45.08% level stakes:
company ticker price 1/1/22 Shares out Market Cap current pps gain/loss%
1 Copper Mtn CMMC.to 3.42 210.166 344.67 1.64 -52.0%
2 Western Copper WRN.to 2.00 151.451 266.55 1.76 -12.0%
3 Marimaca Cop MARI.to 3.77 88.118 255.54 2.90 -23.1%
4 Nevada Copper NCU.to 0.71 448.437 161.44 0.36 -49.3%
5 Oroco Res OCO.v 2.04 203.4 160.69 0.79 -61.3%
6 Aldebaran Res. ALDE.v 0.84 138.401 101.03 0.73 -13.1%
7 Meridian Min MNO.to 1.18 153.735 92.24 0.60 -49.2%
8 Hot Chili HCH.v 1.53 109.223 87.38 0.80 -47.7%
9 Regulus Res. REG.v 1.06 101.85 74.35 0.73 -31.1%
10 Kutcho Copper KC.v 0.88 103.94 34.30 0.33 -62.5%
11 C3 Metals CCCM.v 0.16 645.379 29.04 0.045 -71.9%
12 Doré Copper DCMC.v 0.79 66.123 26.45 0.40 -49.4%
13 Element 29 Res ECU.v 0.58 79.24 26.15 0.33 -43.1%
14 QC Copper QCCU.v 0.34 129.06 20.65 0.16 -52.9%
15 Coast Copper COCO.v 0.13 41.335 2.27 0.055 -57.7%
NB: All stocks in CAD$ Portfolio avg -45.08%
One the mixed bag of moves in this week’s
Copper Basket had settled, the overall average 10% The Copper Basket 2022, weekly evolution
had moved by just 0.02% (and to the 0%
downside, for what it’s worth). So even though -10%
it was a volatile week with plenty of large
-20%
moves both up and down, the net result was
-30%
basically UNCH. We saw sveen winners on the
-40%
week (CMMC.to, NCU.to, HCH.v, REG.v, KC.v,
-50%
ECU.v, QCCU.v) including big winners Hot Chili
-60%
(HCH.v up 21.2%), Nevada Copper (NCU.to up
18.0%), QC Copper & Gold (QCCU.v up 10.3%)
and Regulus (REG.v up 9.0%), just one stock
remained unchanged (CCCM.v) and there were seven losers (OCO.v, MARI.to, WRN.to, MNO.to,
ALDE.v, DCMC.v, COCO.v) including big losers Coast Copper (COCO.v down 15.4%), Oroco
Resources (OCO.v down 12.2%) and Marimaca (MARI.to down 11.6%). So lots of movement
on either side that ultimately cancelled each other out.
13
ts1naJ ht9naJ ht61 dr32 ht03 ht6bef ht31 ht02 ht72 t6raM ht31 ht02 ht72 dr3rpA ht01 ht71 ht42 1yam ht8 ht51 dn22 ht92 ht5nuj ht21 ht91 ht62 dr3yluj ht01 ht71 ht42 ts13 t7gua ht41 ts12 ht82
source: IKN calcs

It was therefore slightly ironic that copper had rallied hard into Jay Powell’s speech time, as
seen on this price chart. A Wednesday wobble gave way to a sharp rise on Thursday due to
news out of China and for more, here’s an extended quote from this report taken from the
useful trade site, Hellenic Shipping News (8):
Copper prices gained on Thursday on a weaker dollar and after a new injection of
stimulus in China that could fuel infrastructure projects and boost demand.
Three-month copper on the London Metal Exchange rose 1.1% to $8,119 a tonne in
official open-outcry trading after giving up 1.1% a day earlier.
Copper has rebounded by 17% since touching 20-month lows on July 15, but is down
25% from a record peak hit in March.
To boost its economy, China has added 19 new policies on top of existing measures,
including raising the quota on policy financing tools by 300 billion yuan ($43.69 billion).
“Some people have been worrying about the lack of infrastructure growth in addition to
property market weakness, so that certainly provides some necessary help,” said Xiao
Fu, head of commodity market strategy at Bank of China International in London.
“In terms of scale it’s not comparable to what we saw in 2009, it’s more targeted, but
nevertheless it’s still helpful. At the moment they don’t want to have a big bazooka.”
China will focus on expanding jobs and promoting fiscal, monetary and industrial
policies to support job market stabilisation, a Chinese official said on Thursday.
China’s energy shortages highlight the need for more investment in the power grid,
leading to a pick-up in demand for copper and aluminium, ANZ said in a note.
The bank boosted demand growth estimates for copper in China this year to 3.6% from
2.2%. “We see the markets of both metals going into deficit next year.”
For the record, the website Hellenic Shipping News is also good to keep tabs on the Ukraine
grain production and export situations (getting better), as well as a line on how much Russian
oil is evading the supposed world trade embargoes (a lot). But the main reason I get its daily
mailer is for Chinese metals flow news and the announcement of the extra stimulus measures
on Thursday bolstered trading in copper, to the point of producing a real buyers’ spike. Then
Jay Powell got up at Jackson Hole and the market reversed.
We therefore return to the “Copper Is Different” case and this time around, I’m being more
cautious than in April and May, so perhaps better will be “Is Copper Different?”. Back then,
while freely admitting the newly forming headwinds would take the edge off copper’s bullish
run, I thought the metal would find reasonable support at between U$3.80/lb and U$4.00/lb as
real world buyers propped up the largely theory-driven financial negatives. That was a mistake
and we now know that the markets managed to drag Doctor Copper down as low as U$3.15/lb
before the voracious Chinese appetite for the metal kicked in and turned prices back up.
There are shades of the same scenario again this weekend, as the Jay Powell-driven market
negativity clashes with the obvious sustained demand in China. That demand has just been
pimped by this new stimulus program (when the going gets tough, the tough get Keynesian)
and the real world copper bull argument also has fundamental backing from the other end of
the supply/demand pipe. On Thursday, Chile's State-run copper giant Codelco announced (9) it
was dropping 2022 copper production guidance from 1.608m tonnes to between 1.489m tonnes
14

and 1.509m tonnes, which implies the lowest levels since 2008. Codelco blamed the production
shortfall on a number of events, including 1) the redesign of its Hales mine production schedule
due to the pit wall failure late last year, lower than expected average grades from its
Chuquicamata underground operations, cold weather events at El Teniente and lower than
expected mill recoveries at its Andina division. This complements and underscores the overall
lag in Chilean copper production this year, with the first six months of 2022 down 6.2%
compared to 2021 (and guidance was for a YoY increase, too). Add in the approx 10% dip in
production from the world’s number two producer Peru so far this year (8), mostly due to the
social protests at Las Bambas and Southern Peru’s Cuajone, and the world supply has seen a
significant crimp that’s now guided to continue. The upshot is that we’re set up for a second
battle over Doctor Copper, one similar to earlier this year with on one side the negative and
bearish macro financial backdrop as sketched by Jay Powell, on the other the sustained demand
in the largest consumer of copper and emerging evidence of crimped supply in the real world.
That Chinese demand may be considered as artificially created and the current supply shock
may abate as Chile and Peru get their production acts back together, but here and now they
provide clear price support. However, will it be enough?
Finally, news from Peru and Chile on their longer-term forecasts for the price of copper and
both countries offered their budget prices for 2023 this week, with Peru’s Ministry of Economy
and Finances assuming copper trades at an average of U$3.40/lb next year (10) while Chile’s
Cochilco updating its forecast to U$3.93/lb for 2023. The big difference in forecast prices may
be because one or the other side is plain wrong, but may also be due to the source as Peru’s
MEF may want to assume a lowball number so that it can balance its books even if things don’t
go well. And on the subject of Cochilco, another piece in the puzzle is the copper inventory
scene and for that, we now tune into the regular weekly look at the data as compiled by the
Chilean beancounter body:
 The aggregate total of world copper stocks in the three official systems dropped by a
meagre 811 metric tonnes (mt), small moves being the order the day. The Friday total
came to 203,795mt.
 A small gain registered at the SHFE, down 3,693mt to close the week at 34,898mt but
even that was a surprise, as many market watchers were expecting a sizeable net
increase due to delayed port arrivals finally
offloading at Shanghai.
LME: Cu tonnage under cancelled warrant
 The LME lost 3,300mt to finish the week at
120,525mt and remains in a tight range,
however the game is afoot as cancelled
warrants show higher last week, closing at 57,925mt and suggesting LME stocks are
about to take a hit.
 At the Comex, inventories another small drop
in copper inventories with the total down by
1,204mt and closing the week at 48,372mt.
No biggie.
Here are the dedicated SHFE charts and while 3kmt or so were added on the week, the song
remains the same and there’s an acute lack of stock in China today.
x
15
00142 52074 57334 00714 52045 05205 52027 52418 52926 05694 57332 52271 05761 52511 57471 52581 52862 00642 00743 57924 00914
52975
100000
90000
80000
70000
60000
50000 40000 30000
20000
10000
0
dr3rpa ht01 ht71 ht42 1.yam ht8 ht51 dn22 ht92 ht5nuj ht21 ht91 ht62 dr3yluj ht01 ht71 ht42 ts13 ht7gua ht41 ts12 ht82
mt Cu
source: Cochilco
Shanghai Futures Exchange Warehouse Stocks, 2014 to date
400000
350000
300000
250000
200000
150000
100000
50000
0
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 ht91 ht41
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 some notes on a couple of our basket stocks:
Hot Chili (HCH.v) (HCH.ax): We know the thinly-traded TSXV listing of HCH (below left over
ten days) moves as an arb of the main Australian listing for the stock (below right comparative
over three months) and last week the company price moved due to the news of high grade
assays from its Valentina satellite target at the Costa Fuego project in Chile (11).
The best cut from the assays came from hole #002 that returned 3.0m grading 12.1% CuEq
(11.8% Cu & 52.6g/t Ag) #within a broader drilling intersection of 12m grading 4.6% CuEq
(4.5% Cu & 16.5g/t Ag) from 25m depth down-hole# and is marketed in the NR as
“…exceptional near-surface grades, providing an exciting potential additional front-end ore
source for the company’s Costa Fuego coastal range copper-gold development.”
If this weren’t a heavily-promoted stock that enjoys throwing out splashy NRs it would be easier
to get excited, as it is there’s no real way of knowing how these high grade hits fit into an
eventual resource or mine plan. The theory is clear enough, as Valentina is supposed to provide
some high-grade feed to bump up the overall grade profile at Costa Fuego, but we’re still in
early days on tonnage and mine economics. So yes, potentially positive but that’s all and
overall, may be just about worth the approx 10% rebound seen on the week in the Aussie listed
stock, but only because HCH had been beaten down badly in the first six months of the year.
Also, please note that the main Aussie listing closed for business for the week before Jay
Powell’s speech in The USA on Friday, which may cause a delayed re-trace on Monday.
Considering the location and permitting scene in today’s Chile, it’s not a difficult one to pass on.
Regulus Resources (REG.v): As well as Aldebaran (ALDE.v, see Stocks to Follow), its sister
company REG also saw insider purchases from
main company players Black and Heather. REG
rose by 9.0% in thin trading but that’s more to do
with its weak trading two Fridays ago. This ten
day chart gives a more accurate account of the
stock, with spotty volumes and basically UNCH
over a fortnight.

Copper Mountain (CMMC.to): We followed the bizarre story of CMMC’s CFO last week on
the blog, which started Monday midday when he filed a host of late-filed insider sales to SEDI
(12). Due to the lag in declarations compared to today’s price, our rough calculation on the blog
saw that he’d pocketed around $2m more than he would have done if he’d done the selling
recently and the style and substance of the sales made it clear he’d been deliberately hiding
them from public scrutiny (and to add insult to injury, CFO Shier was also the company’s
Corporate Secretary and part of those responsibilities are to ensure the correct and prompt
filing of any insider trades…he cannot claim ignorance).
That was one bad surprise, the good surprise came the next day when the company announced
in the tersest of terms that CFO Shier had been fired, effective immediately in news that also
made the blog (13). Some discreet enquiries tell me that CEIO Gil Clausen and CFO Rod Shier
were never bosom buddies and Shier’s true
loyalties laid with previous boss Jim O´Rourke,
but he and Clausen had worked together in a
satisfactory and professional manner for many
years. But whatever and oh boy, to have been
a fly on the wall at that little meeting and
considering the way the firing happened, there
may be more to this story to come out later.
We do know CFO Shier left with nearly 1m
fully paid-up shares of CMMC in his possession
so if he decides to keep selling, there may be
some more headwind.
The ten-day chart doesn’t show much damage
from this story, however. We compare to the
copper producers’ ETF (COPX) and the continuous copper contract (HG00) and as usual, CMMC
was more volatile than the benchmarks but it did follow the same general pattern over ten days
(a better sample).
Nevada Copper (NCU.to): We’ve been following the story of this financially troubled copper
producer with one eye over the weeks and it’s mostly been bad news for the company in 2022,
but NCU found some relief on Friday due to this NR (14) that dropped on Thursday evening:
Nevada Copper Announces Restart Plan and Significant Proposed Financing Package
The NR announced what amounts to a refinancing and re-boot package for the financially and
operationally troubled copper miner and its Pumpkin Hollow underground operation (as well as
its eventual large open pit if things go well enough). It’s a complicated deal and one that
would need plenty of space to fully explain if I cared enough, but the problem is that I don’t so
in a nutshell here’s why you’re only getting a passing mention:
 The deal is basically a refi, with all the large players currently on the hook (starting with
Pala) committing to either injecting more money (for either shares or more NSR), or
improving credit lines, or booting forward loan maturity dates.
 So conceptually, the plan is simple enough: Give NCU the time and money it needs to
“get past the finish line”, improve Pumpkin Hollow without having the welter burden of
debt and financial repayments weighing it down and allowing the company both money
time to make the necessary improvements.
 The deal gives NCU around a year to get its
house in order, improve operations and
become a profitable entity. It also means
Pala has to take more of an equity stake
while at the same time loosening its grip on
the board of directors, with new Non-Pala
aligned directors being nominated to
17

counter the largely pro-Pala board make up.
That’s the most general of outlines and on the news, the stock booted higher
4c to close the week at 36c (after trading most of July under 25c). I still find
this stock an easy avoid because there are now a whole queue of financially
interested parties between the top line of revenues at NCU and the equity
holdings of a small retail player (shades of the “Kinross Birds” cartoon that
caused plenty of chuckles when first used way back when, here right is an
altered version). There’s also a second and more prosaic point, that even these
large players may be throwing good money after bad as Pumpkin Hollow has
become an infamous money pit in its years of failed operations and interrupted
start-ups and, having failed to get to FCF+ status time and again, there’s no
guarantee this new injection of capital will be able to do it this time. This is one
of those stories that I won’t regret passing on, even if it finally works and
makes some money for someone else. Too much risk, not enough upside from
where I sit at the bottom of the telegraph pole.
The Producer Basket
After thirty-four weeks of 2022, the Producer Basket shows a loss of 18.70% to level stakes:
company ticker price 1/1/22 Shares out MktCap(U$Bn) current pps gain/loss%
1 Newmont NEM 62.02 797.44 34.47 43.22 -30.3%
2 Barrick GOLD 19.00 1779 27.54 15.48 -18.5%
3 Franco-Nevada FNV 138.29 191.192 24.27 126.96 -8.2%
4 Agnico Eagle AEM 53.14 454.904 19.82 43.56 -18.0%
5 Wheaton PM WPM 42.93 450.3 14.26 31.66 -26.3%
6 Gold Fields GFI 10.99 887.72 7.63 8.60 -21.7%
7 Kinross Gold KGC 5.81 1296.5 4.43 3.42 -41.1%
8 B2Gold BTG 3.93 1055.6 3.43 3.25 -17.3%
9 Alamos Gold AGI 7.69 392.503 2.98 7.59 -1.3%
10 Sandstorm SAND 6.20 191.4 1.14 5.94 -4.2%
All prices and stock quotes in U$ Port. avg -18.70%
The count on the week is eight modest losers and two modest winners, the latter being the
smallest market cappers on our list, Alamos (AGI) and Sandstorm (SAND), which at +2.2% was
the best of the week. The worst of the week were Barrick (GOLD down 3.7%) and Kinross (KGC
down 2.8%) and aside those, all stocks were down or up a point or so.
We remind readers that the principle objective of this section of The IKN Weekly is much the
same as those of The Copper Basket and TinyCaps lists, i.e. to track what’s happening in the
sector and not to recommend stocks. However, we do have a sidebar challenge in The Producer
Basket section to try and beat the benchmark GDX over the calendar year and last week saw
our ten improve their slight lead after the poor start we saw to 2022.
The 2022 Producer Basket: Percentage difference
5.0% between GDX benchmark & basket (negative = IKN ahead)
4.0%
3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
18
ts1naJ ht9naJ ht61 dr32 ht03 ht6bef ht31 ht02 ht72 t6ram ht31 ht02 ht72 dr3rpa ht01 ht71 ht42 1yam ht8 ht51 dn22 ht92 ht5nuj ht21 ht91 ht62 dr3luj ht01 ht71 ht42 ts13 ht7 ht41 ts12 ht82
The 2022 Producer Basket: Weekly performance and
35% comparative to GDX control
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
-25%
source: IKN calcs, NYSE data
ts1naJ ht9naJ ht61 dr32 ht03 ht6bef ht31 ht02 ht72 t6ram ht31 ht02 ht72 dr3rpa ht01 ht71 ht42 1yam ht8 ht51 dn22 ht92 ht5nuj ht21 ht91 ht62 dr3luj ht01 ht71 ht42 ts13 ht7 ht41 ts12 ht82
ikn
gdx control
source: NYSE, IKN Calcs

That’s not necessarily a good thing, of course. The reason I included several royalty/streamer
plays this year (FNV, WPM, SAND) was for the type of defensive reasons that have come to
pass in this market. Admittedly WPM hasn’t turned out well, but the notable resilience in
Franco-Nevada (FNV) compared to other mining stocks of its market cap size shows how the
strategy works in a bear market.
Barrick (GOLD): No talk on the company and its operations this week, instead we consider its
five day price chart against the GDX benchmark and for reference, throw in the US Dollar index
(DXY) as well:
As you can see, the GDX was having a good week right up to the moment Jay Powell opened
his mouth. That four day rebound came after a poor week for the sector (see IKN692) and
under those circumstances, you’d expect the bigger caps such as Barrick (GOLD) to slightly
under-perform the GDX and its range of smaller caps buoying it higher. And that’s what we see
in the visual above so all good to that point; the problems start on Friday (Cue dramatic music
background).
The way in which the market reacted to Jay Powell’s speech is now well-documented, but the
way in which GOLD, one of the few real darling gold stocks on the lists of large Wall St traders
and instos, does not bode well for the near-term future of the sector. Or in less flowery terms,
seeing GDX dump is one thing but seeing one of its main components dump even harder
suggests that Wall St. ran for the exits more than the GDX dump suggests and that other large
cap stocks are going to get the same treatment in the days to come. It wasn’t a great signal for
sector bulls or advocates of gold as a safe haven in Jay Powell’s scenario, as painted last week.
The TinyCaps List
After thirty-four weeks of 2022, the TinyCaps show a loss of 25.03% 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 7.79 0.17 -29.2%
Golden Pursuit GDP.v 0.13 34.638 5.72 0.165 26.9%
Infield Min INFD.v 0.06 48.445 2.18 0.045 -25.0%
Kingfisher Met KFR.v 0.30 103.007 21.63 0.21 -30.0%
Latin Metals LMS.v 0.12 57.686 6.06 0.105 -12.5%
Manitou Gold MTU.v 0.06 344.57 15.51 0.045 -25.0%
Melkior Res MKR.v 0.295 24.011 5.28 0.22 -25.4%
Precipitate Gold PRG.v 0.105 129.322 8.41 0.065 -38.1%
Signature Res SGU.v 0.07 238.4 5.96 0.025 -64.3%
Winshear Gold WINS.v 0.08 61.585 3.70 0.06 -25.0%
Prices in CAD$, data from TSXV basket avg -25.03%
This section attempts to track the tinycap mining sub-sector of the market, our ten companies
19

chosen under the following criteria to put together a list representing the state of play in the
sub-sector of tinycap exploration company stocks. At least, that’s the plan.
 Market capitalization of under $20m. They have to be tiny. In two cases I’ve stretched the window a
little and allowed sub-U$20m market capper in that are just over the C$20m level, but the spirit is unaltered.
 A “non broken” stock price and project story. There are literally hundreds of tinycap juniors of the right
size, but it was a particularly depressing exercise to trawl through the whole of the TSXV and find companies
that are small enough, but with life in them. The vast majority of sub-$20m stocks are broken stocks, either
traded to death on the exchange or with projects that are a bust or with entrenched management more
interested in their monthly paycheck than anything else.
 Likelihood of meaningful newsflow in 2020. This connects to the company’s “unbroken” status, as we
want news and potential catalysts from companies with projects that can work.
 Decent management if possible. When you are down among the little guys it doesn’t pay to be too
choosy, but still I preferred companies that have teams or people with good peer reputations.
It only takes a penny or two to swing tiniest propositions in the mining sector by large
percentages and so it was this week. The basket average improved by a couple of points thanks
first to the headcount of four winners (AUL.v,
INFD.v, MTU.v, WINS.v), three unchanged 15% TinyCaps, 2022 weekly tracker
10%
(KFR.v, LMS.v, SGU.v) and three losers (GDP.v,
5%
MKR.v, PRG.v) but secondly because three of the
0%
winners were big moves, namely Manitou (MTU.v -5%
up 28.6%....up a penny), Winshear (WINS.v up -10%
-15%
20.0%...up a penny) and Infield (INFD.v up
-20%
12.5%...up half a penny). Buffer those with two
-25%
larger Debbie Downers (PRG.v -13.3% and -30%
MKR.v -12.0%) and that’s the story of the week. -35%
Manitou Gold (MTU.v): Featured in some
detail in IKN692 last weekend, MTU also filed its
2q22 financials on Friday August 26th and the numbers had no surprises. With its recent deal to
sell concessions to the privately held (for the time being) Dryden Gold and the first cash
payment in, treasury in the quarter dropped by less than $50k, to $1.35m. Also, MTU has
accounted for the newly held shares in Dryden as a Marketable Security worth a nominal $1m,
which means it now boasts a working capital of just under $2.4m. I still cannot see how they
can maintain the standard background burn rate and also fund the proposed spin-out of
Western Nickel from that treasury position, but that’s just me.
The YTD chart shows how MTU traded poorly until April, then saw a waterfall sell-off on
volume, then things went quiet in July and the first part of August. We’ve now seen some
volume returning and though it’s still rather patchy trading (a 4c stock doesn’t need much
money thrown at it to trade a million papers), there does seem to be renewed interest. The
Friday close of 4.5c is the best for a while, it will be interesting to see if it sticks.
As noted last weekend, with the combo of its core Goudreau asset, its proposed spin-out and
the new deal that sees MTU owning shares in Dryden Gold (planned as an IPO in the months to
come), there’s a lot going on in a stock with a low entry price. The main caveat would be to
watch out for a share placement.
20
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 ht91 ht62 dr3yluj ht01 ht71 ht42 ts13 ht7gua ht41 ts12 ht82
source: IKN calcs, TSX data

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
Peru’s ministerial mess and end of the proposed tax hike on mining
Last week President Pedro Castillo replaced three cabinet ministers and appointed new faces in
the ministries of Defence, Environment and Women and as this Bloomberg report notes (15),
that makes 67 ministers in the space of 13 months which is a crazy turnover rate for top jobs in
ministries and is its own witness for the turbulence and instability in this government.
We also got a couple of press conferences from the new team at the Ministry of Finances under
FinMin Kurt Burneo, himself only appointed three weeks ago, in which he officially dropped the
government’s GDP growth forecast for 2022 from 3.6% to 3.3%. For what it’s worth, Burneo
laid blame for the new shortfall on the strikes and social protests in the large mining operations
in the country. Burneo and his Economics team also took the opportunity to officially drop the
country’s plan to raise extra taxes on mining, which was first floated by Castillo’s original FinMin
Pedro Francke back in late 2021 and reiterated in April this year by the FinMin at that time,
Oscar Graham. With the drop in metals prices and in particular copper, Peru’s single biggest
export, most of the sector assumed the quasi-Windfall Tax law project was already dead on
arrival and even if the executive sent a law project to Congress, it would be voted down. But
the FinMin took the opportunity last week to make a clear statement that Peru would not tax
the industry any further, which is good politicking and will at least allow the sector something
positive to talk about at next month’s big mining trade fair, the Biannual Perumin in Arequipa.
Meanwhile, Congress and the Castillo government are still at loggerheads in a bitter war that is
starting to suffer from its own inertia; they’ve fought themselves to a standstill. This may favour
the status quo and with Castillo now trying everything to entrench himself into the job (e.g. he
just fired the head of the national police force who criticized him last month and replaced him
with a rather dubious subaltern), the current mess may last longer than I expected.
Chile’s mining scene update
First we note personnel news as per a quick excerpt of this report (translated) (16) this
Thursday, the mining company Anglo American announced that Aaron Puna, the Chief
Executive of Anglo American in Chile, had made the decision to leave his post "to assume new
professional challenges." Anglo is of course the company that had permits denied by Chile for
its U$3Bn Los Bronces Expansion as well as its smaller throughput expansion project for the El
Soldado copper mine and Aaron Puna spoke critically on those decisions as reported in IKN690
dated August 7th.
On the subject of Los Bronces, last week a courtroom decided that the upcoming appeal on the
EIA permit lodged in accordance with the rules and to be decided by Chile’s “Council of
Ministers” cannot also take into account objections to the project from seven other bodies.
Since the permit denial by the Chile’a environmental authority, the SEA, these seven groups
including environmental activists, a geologist, a mountaineer and others wanted to join in and
put their own cases to the Council of Ministers but after a legal objection from Anglo, the courts
have ruled that the case must rest squarely on the previous denial and the reasons given by the
SEA at the time, no extra charges can be added post-facto.
Along the same lines, we’ve also seen a new case arise against Codelco and its plans to extract
and mine lithium from the Salar de Maricunga. The local Colla population (it’s complicated, but
let’s call them an indigenous culture and local landholders for simplicity’s sake) who previously
kept quiet have raised their objections to the State-mining company’s plans saying that mining
the Salt Flat would cause irreparable damage to an area of outstanding natural beauty as well
as disrupt local flora and fauna (17).
21

Chile: Markets write off a victory for the Draft Constitution
The two most volatile currencies in LatAm recently have been the Colombian Peso and the
Chilean Peso and speaking in general terms, the turbulence is related to the arrival of new Left
wing governments in both countries. However, last week the Colombian Peso (COP) remained
unchanged against the USD while the Chilean Peso (CLP) gained over 5%:
Last week the markets decided that the September 4th referendum in Chile was now a foregone
conclusion, that “Reject” would beat “Approve” and the new Draft Constitution would be
defeated in what will certainly be a significant loss for the country’s new President Gabriel Boric
with thw two main reasons being 1) the continued lead for “Reject” in all polls and 2) the first
political scandal of Boric’s term, which saw him fire one of his ministers. Here’s Reuters (18):
SANTIAGO - Chilean President Gabriel Boric said on Thursday that he had accepted
the resignation of his Cabinet's social development minister, the first shakeup of his
young administration which began in March.
Social Development Minister Jeanette Vega resigned following a news report that one
of her advisers had contacted a radical Mapuche indigenous leader who had called for
an armed struggled against the state and who was arrested on Wednesday.
The move is a blow to Boric's center-left administration, which came into office with a
historic turnout. But Boric has seen his popularity quickly diminish as a key vote nears
on a proposed new constitution that he has endorsed.
Boric previously said he would abstain from making Cabinet changes before the
constitutional vote.
That report continues and goes some way to explaining the mechanisms behind the scandal,
but what matters to us on the outside is summed up by this second quote from Chile’s
respected biznews media, Diario Financiero (translated) (19):
"On a high volatility day, even though the exchange rate faced a strong dollar after the
Jay Powell speech in Jackson Hole, the local market was shaken by the scandal that
began Thursday between the ex-Minister Jeanette Vega and the Mapuche social
leader Héctor Llaitul, which underscored with greater force that the "Reject" option
would win out." said Alonso Casas of currency trader Vector Capital.
"The polemic in the government this week will mean that at least some of the
undecided voters will look negatively at the events and opt for the Reject option", said
senior portfolio manager for Trii, Fabián Avendaño. "Consequently, this reinforced the
current scenario of a dollar pressured downwards and brings a better sense of
confidence to investors", he added.
So despite the USD’s good day on Friday, the Chilean Peso did even better and the forex
dropped 50 pips to around 893 at the close.
Brazil Presidential election TV debate
Tonight Sunday at 9pm local time Brazil witnesses the first live TV debate between the top five
candidates for President in the upcoming election, with all eye on the incumbent Jair Bolsonaro
and current favourite to win the vote, challenger and ex-President Lula da Silva. Bolsonaro is
now fighting a rearguard action, while Lula is currently around 44% to 45% in the latest voter
intention polls and knocking on the door of a potential direct win in Round One (50%+1 of the
valid votes). The fight is, therefore, over the small percentage of undecided voters in the
22

country and part of that is to woo those who would potentially vote strategically (e.g. Lula may
get people voting for him that wouldn’t normally vote for his PT worker party, as Bolsonaro is
hated even more than him).
Market Watching
Chesapeake Gold (CKG.v) 2q22 financials
We round off this week’s edition by scooting quickly through some of the usual suspect charts
of a few companies we either own, cover or watch here at the Weekly that filed their Q2s last
week. There were a whole bunch of them, we took a deeper dive into Top Pick Minera Alamos
(MAI.v) in today’s main Fundies section as well as an ankle-deep paddle with a couple of them
in Stocks to Follow notes, the ones chosen for Market Watching sections get several charts but
not so much commentary as they are more about ongoing surveillance than making an active
buy/hold/sell call.
CKG.v: Operating expenses
We begin with Chesapeake Gold (CKG.v), an 2.4
2.2
interesting case due to its very low burn rate 2
1.8
as it slowly moves forward with the 1.6
1.4 metallurgical testing required by (fairly) new
1.2
CEO Alan Pangbourne. You may recall that 1
0.8
around this time last year, Pangbourne and 0.6
0.4
CKG were promising results from the 0.2
extensive tests they are running on Metates 0
-0.2
core (both from previous drill campaigns and -0.4
newly drilled for the purpose) by the end of
2q22 or start of 3q22. That’s now and there
are still no results, because a few weeks ago
we got the timeline shifted back to “by the end of the year” as CKG is still testing met on
different grind sizes. Which is a bummer and means we have to hang on a while longer before
learning whether this new team and its proprietary tech will get to “unlock the value” (as they
say) at the multi-million ounce gold project, but at least we cannot accuse them of being
profligate with company funds in the meantime.
Five charts cover enough CKG for our purposes today, starting with operating expenses (above)
and once again, the low cash burn was under $1m for the quarter, a result made even better
by some handed back stock options that gave the line item a negative result. Next we check in
on the balance sheet overview charts, with assets virtually unchanged aside the cash burn and
liabilities tiny (most of the LT is a tax thing and not an issue in the real world).
So with minor level current liabilities and nearly all currents being treasury, the working cap
chart is a close proxy to liquidity and as CKG continues to sip on its cash balance, with Q2 at
$29.113m and down by just $2.3m in the last four quarters (helped by sales of Gunpoint
Metals shares, but that’s just good asset management). So even if the somewhat delayed drill
program starts in 4q22 this year (once met testing ends) we still expect the company to leave
23
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
C$m
other
share based comp
prof fees
mgmt fees
G&A
Exploration
source: CGK filings
CKG.v: Liabilities per qtr
11 10
9
8
7
6
5
4
3
2
1
0
81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3
source: company filings
srallod
fo
snoillim
CKG.v: Assets, per qtr LT liabs
current liabs
731.47 985.47 508.47 434.78 907.78 642.98 940.09
762.19 200.29
92.731
831
73.831 49.931 18.141 68.141
241
200
180
160
140
120
100
80
60
40
20
0
81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3
C$m
fixed
other current
cash
source: company filings

2022 with around $24.5m in working cap, more than enough to see it through whatever it
wants to achieve in 2023 (and probably beyond, unless it starts building a mine.
50 CKG.v: Working Capital per qtr
45
40
35
30
25
20
15
10
5
0
And the final chart is a reminder of the share position and with all that cash in reserve, there’s
no reason the think its 67.367m shares out are about
to change to any great extent.
The bottom line to our brief update on CKG; the delay
to met results is annoying, but from the getgo the
company said it was interested in getting full and
detailed results of the met that would be applicable to
the type of two-stage leaching process they have in
mind. From the start, this has been a classic
“optionality on gold” trade that brings lot of gold at a
low price, so as well as a bet on the Pangbourne Brains
Trust, it’s a trade on gold’s market price.
Newcore Gold (NCAU.v) 2q22 financials
Our next brief spin around the 2q22 financial results comes from Newcore Gold (NCAU.v)
another exploreco that shares the “optionality on gold” profile with CKG, but with the
difference of being a) smaller in size and resource count and b) a newer development story that
hasn’t been stymied by the type of technical roadblock that did for CKG before CEO Pangbourne
arrived. This time the team led by CEO Luke Alexander has a West Africa story in the shape of
its Enchi project in miner-friendly Ghana, with 1.4m already in inferred oxide resource and
moving toward its resource update at the end of this year which should nudge the total close to
2m oz (and plenty more to come in 2023).
The first two charts (above) show how NCAU is burning its cash, with most going into the
ground in exploration and evaluation expenses and the corporate end reasonable tight with its
24
81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3 tse22q4
source company filings
srallod
fo
snoillim
100 CKG.v: Shares Out
90
80
70
60
50
40
30
20
10
0
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3 tse22q4
source: company filings
serahs
fo
snoillim
NCAU.v: Expenses breakdown
1.5
1
0.5
0
-0.5
-1
91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
C$m
NCAU: Exploration & Evaluation expenditures
C$m
other exp
7.0
IR &marketing 5.851
Share based comp 6.0
Mgmt fees 5.0 4.442
4.0
2.706 2.837
3.0 2.297
2.011
1.724
2.0
1.0 0.372
0.074 0.059
0.0
1q20 2q20 3q20 4q20 1q21 2q21 3q21 4q21 1q22 2q22
source: company filings
source: company filings

costs. Most of the cash goes into the ground at Enchi, something we like from our drill plays in
general. Next up, the classic and standard balance sheet overviews:
NCAU.v: Assets
55
50
45
40
35
30
25
20
15
10
5
0
Assets are capitalized and cash rises and falls as it’s raised and then spent on the project, which
is as normal as its gets in this subsector. We note in passing the optimal situation in liabilities,
with hardly any drag on the sheet. This is all about the cash it raises and then spends on
development, as seen in the charts below for working cap and treasury. We add 3q22 in
because NCAU has recently completed another equity raising that replenished coffers and will
allow the company to get to perhaps mid-2023 before needing the market again. Time will tell
the level at which it manages to sell share sat that time.
Finally, the new share count is slated at around 138m, which at this weekend’s C$0.27 share
price makes this a C$37.3m market capper (U$30m
at house forex). If that gives us an assume near-
2m oz resource of shallow laying gold oxide ounces,
it makes it a cheap proposition on paper without
being the cheapest out there. The attraction at
NCAU is as much the presumed quality of those
potential ounces as the absolute size of Enchi, as
we’re in prime mining country and the resource
should see plenty more growth as its various
targets are explored further. Another gold
exploreco that fully deserves its place on the house
watchlist.
Mene Inc (MENE.v) 2q22 financials
Our final 2q22 financials spin-through will take a little longer, because the results from the only
“non-mining” (though still precious metals) company regularly featured on these pages, the
online 24kt gold jewelry company Mene Inc (MENE.v), need a more careful look. We begin with
25
91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3
$m NCAU.v: Liabilities per qtr
5
fixed
4.5
other current 4
cash+ST 3.5
3
2.5
2
1.5
1
0.5
0
source: company filings
91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3
source: company filings
srallod
fo
snoillim
LT liabs
current liabs
16 NCAU.v: Working Capital per qtr
14
12
10
8
6
4
2
0
91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3
source company filings
srallod
fo
snoillim
NCAU.v: Cash treasury per qtr
20
18
16
14
12
10
8
6
4
2
0
91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3
source: company filings
srallod
fo
snoillim
160 NCAU.v: Shares Out
140
120
100
80
60
40
20
0
81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3
source: company filings
serahs
fo
snoillim

the sales data and in both kilos sold and customer orders…
MENE: Precious metals sales in Kg, per qtr
…MENE did not return a sparkling quarter. Now for sure, context is required as due to the
typical sales cycle of precious metals jewellery, particularly in MENE’s main markets of Europe
and North America, the company will always see a sales bias toward the fourth quarter
(Christmas and the Holidays season) and Q1 (Valentine’s Day) than the second and third
quarters. Therefore we state clearly that we were never looking for record sales or profits from
MENE’s 2q22, but even so, the sales data did not impress. In sales volume the 66kg gold was
basically the same as 2q21 while total customer orders dropped significantly, from 4,377 in
2q21 to 3,947 in 2q22. MENE is a young company and is supposedly in growth mode, so even
taking into account a more difficult economic backdrop and the volatility in the price of gold,
this was a disappointing year-over-year result.
Revenues duly suffered and well, while slightly higher than 2q21 in Canadian Dollar terms were
still lower than our original expectations for the quarter (your author had C$7m pencilled in.
While COGS dropped accordingly to C$4.321m that’s only one part of the costs story at the
company, as COGS basically covers the precious metal cost price while all labour and marketing
is covered by operating expenditures:
Add those together and subtract the totals from
revenues and we reach the company’s
operating income. Most recent quarters,
including 2q21, have shown a modest profit but
2q22 came in at a small loss $162k. For sure
not the end of the world and as we’ll see in a
moment MENE’s robust balance sheet has no
problem in absorbing a minor loos in one of the
quiet quarters of the year, but it bears
repeating that there’s precious little (no pun
intended) growth on show from what is
supposed to be an online growth story.
26
96
93
65 67 97 66 26 89 08 66
110
100
90
80
70
60
50 40 30
20
10
0
02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
source: MENE filings
)tP
ronim
htiw( uA
gK
MENE: Customer orders, per qtr
7514 0972 4643 4745 7605 7734 3514
4856
7045 7493
8000
7000
6000
5000
4000
3000 2000
1000
0
02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
source: MENE filings
MENE.v: Costs breakdown
441.4 125.2 548.3 914.5 664.5 422.4 270.4
984.6
393.5 123.4
10
9
8 1.842
7
6 1.913 1.53 1.656
5 1.721 1.43 1.416 1.692 1.331
4
3 1.285 2
1
0
02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
MENE: Revenues per qtr $m
COGS operating exp
source: company filings,IKN ests
751.5 934.3 324.5
11.7 302.7
457.5 813.5
894.8
643.7
158.5
10
9
8
7
6
5
4
3 2
1
0
02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
C$m
source: company filings
1 MENE.v: Operating income, per qtr
0.8
0.6
0.4
0.2
0
-0.2
-0.4
-0.6
-0.8
-1
02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
C$m
source: company filings

We move to the balance sheet and the assets chart shows a change of strategy at the company
with a drop in both cash treasury and physical metal (nearly all gold bullion) and the raising of
short-term investments. To be specific, during Q2 MENE took out a C$6m Guaranteed
Investment Certificate (GIC) that, along with a small USD GIC, earned the company some
C$32k in interest over the quarter.
As for liabilities, they remain almost entirely the approx C$10m (in fact a maximum of 5,000 oz
gold) it has with cousin company Goldmoney, for
which it pays a competitive 3% interest rate. We
expect that facility to continue indefinitely. While
it may be slightly ironic to observe a company
that both sells 24kt jewellery and as part of its
marketing, extols the investment angle of
holding 24kt gold, decide to move into a dollar
deposit account instead of exposing more fully to
the metal, it has turned out to be the right call.
We expect that position will reverse as we move
into the third quarter and the company’s
manufacturing ramps up in anticipation of the
biggest selling season, growing its finished
inventory. As for equity (the MENE equivalent to working capital and a gauge of liquidity). A
close look at the inventories breakdown shows that the company seems to have made a
deliberate decision to have less financial exposure in physical metal in order to raise more cash
capital (that short-term investment).
MENE: Inventories per qtr
5.29
2.70 4.02 3.15 2.43
1.36 0.29
27
294.7
186.01
939.21 814.11
165.11
981.8
533.7
709.01 708.21
754.21
990.31
489.41
8.41 273.21
531.11
24
22
20
18
16
14
12 10
8
6
4
2
0
81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
MENE.v: Assets, per qtr
40
35
30
25
20
15
10
5
0
C$m
Raw Mat. Work in Prog
Finished Goods Supplies
source: company filings
Again, this may be a seasonal adjustment that unwinds in the next two quarters but it coincides
with MENE’s production expansion in The USA. With the deal as announced two weeks ago to
purchase a new jewellery ship for U$1m purchase (half cash, half shares) the company has now
improved its production capacity and is ready to take the next step in volume growth.
The bottom line: MENE did not impress with its 2q22 numbers and while sales were down, the
02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
MENE.v: Liabilities Breakdown per qtr
$m 35
cash inventories ST Inv other
30
25
20
15
10
5
0
source: company filings, IKN ests
02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
source: company filings/IKN ests
srallod
fo
snoillim
note payable
other liab
borrowings
MENE.v: Equity per qtr
123.41
188.21 791.21 913.01
279.51 201.71 310.61 526.51 189.61 659.51
20
18
16
14
12
10
8
6
4
2
0
02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
source company filings/IKN ests
srallod
fo
snoillim

closing of the new production facility may well be behind the lacklustre figures. The company
had already made clear it needed to expand its physical manufacturing operations and was
bumping up against its internal supply ceiling, this new purchase should therefore allow the
company to expand into the new markets it has identified in Europe (and stock its European
hub for more efficient distribution). And while somewhat disappointing even this quarter was
hardly a disaster and as long as the company is positioned to take full advantage of the
important holiday season sales of Q4, one soft quarter can be forgiven. Holding.
Conclusion
IKN693 is done, we end with bullet points:
 The reaction to Jerome Powell’s speech wasn’t what gold bulls wanted to see, but it is
what it is and we should act accordingly. In my case, I will put all thoughts on buying
bargains on further hold because there’s a decent chance they will son get even
cheaper.
 However, Minera Alamos (MAI.v) looks ready to buck the trend and re-rate higher, right
at the time when gold stocks come under pressure. Our Top Pick may be the exception
that proves the rule as the quarter to come is full of positive catalysts and re-rating
opportunities.
 Meanwhile, copper remains the mystery and the metal most likely to put up price
resistance agains the general tide of recession gloom. That’s China’s influence for you.
I thank you in advance for any feedback. Our Top Pick stock is Minera Alamos (MAI.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.federalreserve.gov/newsevents/speech/powell20220826a.htm
(2) https://fred.stlouisfed.org/series/T10Y2Y
(3) https://mineraalamos.com/investors/presentations/
(4) https://www.youtube.com/watch?v=tZKW9AIl39Y
(5) https://iknnews.com/aldebaran-alde-v-good-to-see/
(6) https://qccopper.com/news/qc-copper-reports-3-wide-copper-gold-zones-of-in-pit-mineralization/
(7) https://qccopper.com/site/assets/files/3425/qc_copper_nr_8_drill_assay_results_2022_08_23_figures_v3_93_-
_read-only.pdf
(8) https://www.hellenicshippingnews.com/copper-claws-higher-on-chinese-infrastructure-hopes/
(9) https://www.df.cl/empresas/mineria/codelco-ajusto-a-la-baja-su-pronostico-de-produccion-de-2022-y-llega-a
(10) https://www.latina.pe/noticias/latina-noticias/peru-espera-que-el-precio-del-cobre-caiga-en-2023-ministerio-de-
economia-rts
(11) https://www.hotchili.net.au/hot-chili-hits-11-8-copper-and-53g-t-silver-at-valentina/
(12) https://iknnews.com/rodney-shiers-insider-selling-of-copper-mountain-ccmc-to/
(13) https://iknnews.com/copper-mountain-cmmc-to-fires-its-cfo/
28

(14) https://nevadacopper.com/news/nevada-copper-announces-restart-plan-and-significant-proposed-financing-
package/
(15) https://www.bloomberg.com/news/articles/2022-04-02/peru-to-target-miners-excess-profits-in-tax-reforms-
reuters#xj4y7vzkg
(16) https://www.df.cl/empresas/mineria/aaron-puna-renuncia-a-la-presidencia-ejecutiva-de-anglo-american-chile
(17) https://www.nuevamineria.com/revista/comunidad-colla-busca-dejar-sin-efecto-permisos-de-codelco-para-explotar-
litio-en-maricunga/
(18) https://www.usnews.com/news/world/articles/2022-08-25/chiles-boric-suffers-first-cabinet-resignation
(19) https://www.df.cl/mercados/bolsa-monedas/dolar-hoy-b7v5e
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
29

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
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
30

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
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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