IKN #696Premium

The IKN Weekly
Week 696 September 18th 2022
Contents
This Week: In Today’s Edition, FOMC on deck, I have no idea what happens to gold next
week, September Conference Season Part Deux.
Fundamental Analysis: Why put Altaley Resources (ALTY.v) on your radar.
Stocks to Follow: ATAC Resources (ATC.v), Superior Gold (SGI.v), QC Copper & Gold
(QCCU.v), Minera Alamos (MAI.v), Rio2 Ltd (RIO.v), Western Copper & Gold (WRN.to), Amerigo
Resources (ARG.to), Newcore Gold (NCAU.v), Altiplano Metals (APN.v).
Copper Basket: Overview, Regulus Resources (REG.v), C3 Metals (CCCM.v).
Producer Basket: Overview, Newmont (NEM).
TinyCaps Basket: Overview, Aurelius (AUL.v), Signature (SGU.v), Latin Metals (LMS.v).
Regional Politics: Chile: Boric goes pro-investment and miners press their claims, Brazil: Anti-
mining talk and the election home stretch, Colombia: Mining Minister Irene Vélez under fire,
Market Watching: Contango Ore (CTGO): Why I am still watching without buying.
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
 Those hints and thoughts of a potentially better playing field for mining stocks, as
mooted in IKN695 last weekend, quickly evaporated as gold dropped firmly under the
U$1,700/oz line, copper came under selling pressure and the US Treasurys yield curve
inverted more deeply on the week. With FOMC now on deck, the prudent course of
action remains keeping powder dry and not committing any new capital to this difficult
market for our sub-sector of focus.
 Beaver Creek came, went, and did its usual thing, but among the samo-samo junior
stories and ho-hum assets made out to be the next Voisey’s Bay, there’s always
something new to discover or a story that catches the eye. This year’s edition surprised
me as much as anyone else when, after watching one particular 15 segment, I checked
out a price chart and then wondered why the Altaley Resources (ALTY.v) had been
decimated in 2022 the way it has. That simple thought turned into today’s main fundies
note.
 The Regional Politics section documents the rising ire in Colombia against its mining
minister, which isn’t surprising but won’t change the anti-mining sentiment of the Petro
government. It also notes the way in which the Chilean referendum “Reject” decision is
already affecting national policy in a positive way as new President Boric gets more
investor (and FDI) friendly.
FOMC on deck
It seems to have come around quickly, or maybe that’s just my age. This Tuesday and
Wednesday September 20th and 21st is the next edition of the FOMC Show, with the standard
press release on Wednesday at 2pm ET, followed by the now standard presser held by Jerome
1

Powell half an hour later. Also, be aware that this edition comes with the SEP (Summary of
Economic Projections*) which normally goes by the colloquial of its visual, The Dot Plot.
*Douglas Adams fans will know S.E.P. also stands for the Somebody Else’s Problem. Suitably ironic given the
circumstances.
I have no idea what happens to gold next week
But there’s no need to wade through a ream of my tortured prose on this week’s FOMC, and
even that title line should save some time on this week’s main macro event. Instead, I’m going
to offer up a few charts and let the chips fall where they may from now until next weekend,
starting with an annotated gold chart:
The mention of some potential green shoots last weekend in IKN695 may have jinxed the
sector, but the overall decision to plough the conservative, fence-sitting course and keep
powder dry for the time being is still the right one. Gold dropped under the psychologically
important U$1,700/oz level last week and for a while, threatened to run directly under
$1,650/oz before buyers showed and propped the spot price. As for the effect of Jay Powell’s
show on Wednesday, why not take your pick between the reaction after the last FOMC (gold
popped) and the Jackson Hole speech (gold dropped).
However, the message from the yield curve is becoming clearer; the world expect recession and
there are now serious economists talking about 1% bps raises and 9% rates in The USA before
the economy can turn around. That might be drastic, but we do know that the yiel curve
inversion is bad news for gold until it stops.
The final charts in this weekend’s deliberately dumb intro (I’m not anyone’s idea of a Fed guru,
sorry) are the usual suspect GLD trackers and we hit another new low in holdings for the Biden
era. This chart just has 2022 YTD data to show the recent dip more clearly but for the record,
it’s not just in the times of Biden and you have to go back to March 26th 2020 for a smaller
amount of gold bullion held in GLD vaults (they tell me there was a virus doing the rounds at
2

the time).
GLD gold holdings, 2022 YTD (metric tonnes)
1140
1120
1100
1080
1060
1040
1020
1000
980
960
940
920
900
As for the Inventory/Price Ratio for GLD holdings, I’ve expanded the timescale to take in the
period 2016 to date to show how historically bad current sentiment truly is. Not only is the
western financial world selling its bullion, but there’s zero appetite from buyers who simply sit
on the bid and mop up the tonnes.
The bottom line: No need to second-guess the Fed on Wednesday, no need to attempt the
financial circus act of catching falling knives. The message is the same as it has been for the
weeks of summer: KEEP POWDER DRY.
September Conference Season Part Deux
So much for this coming week’s main financial event, as for mining that’s in Denver and the
Gold Show which we previewed to some extent last weekend. Between IKN695 and today we
also had Beaver Creek of course and now that’s over, we offer this useful link (1) that will take
you to the alphabetically ordered list of presenters at last week’s event as there’s plenty of DD
fodder available, if so desired. Another reason to go over to the summit replays is that in most
cases, the video presentation link is accompanied by a link to the latest corporate presentation
of each company, a useful one-stop place to download PDFs and update your libraries on any
number of juniors and their stories. Again, only if so desired of course. As for Denver Gold,
we’re set for more newsflow from larger producer companies as well as more headline keynote
talks from the star names in the sector. If that’s not too much of an oxymoron.
Fundamental Analysis of Mining Stocks
Why put Altaley Resources (ALTY.v) on your radar
It’s not for laughs, entertainment or the chance to drink lots of coffee, but there is a good
reason industry-watchers will sit through multi-day conferences at which the observer is treated
to a seemingly unending reel of 15 or 20 minute corporate pitches from C-suites of junior
mining companies. Among the presentations from companies that all have the best/most
attractive/most undervalued/most likely project or operation in the sector at the moment there
are always a nugget or two to undercover. Last week was Beaver Creek and, as noted on the
blog last Friday (2) aside from the companies already covered here at the Weekly there were
three stories that stood out and here’s a part of the post in question:
Contango wasn’t so much of a surprise, as we’ve run some soft coverage on the
company previously and Manh Choh’s charms are obvious, what stood out was the
growing potential and in-house interest in Lucky Shot. Maverix is a bigger fish and gets
more coverage from the brokerage community so I might let that one pass without
comment, but it is a clear stand-out in the Royalty/Streamer space. The pleasant
surprise of the week was Altaley (ATLY.v), however.
For what it’s worth, I’ve included a few quick thoughts on CTGO in today’s ‘Market Watching’
section below and as previewed, I’m going to leave MMX as an interesting company to observe
from a distance for the time being. But Altaley Resources (ALTY.v) is another kettle of fish
3
22/1/3 22/1/31 22/1/32 22/2/2 22/2/21 22/2/22 22/3/4 22/3/41 22/3/42 22/4/3 22/4/31 22/4/32 22/5/3 22/5/31 22/5/32 22/6/2 22/6/21 22/6/22 22/7/2 22/7/21 22/7/22 22/8/1 22/8/11 22/8/12 22/8/13 22/9/01
mt 8.20 GLD: Inventory/Price Ratio, 2016 to date
8.00
7.80
7.60
7.40
7.20
7.00
6.80
6.60
6.40
6.20
6.00
5.80
source: SPDR GLD data 5.60
5.40
61/4/1 61/61/3 61/62/5 61/8/8 61/81/01 61/92/21 71/41/3 71/42/5 71/4/8 71/61/01 71/72/21 81/21/3 81/22/5 81/2/8 81/21/01 81/42/21 91/8/3 91/02/5 91/13/7 91/01/01 91/02/21 02/5/3 02/51/5 02/82/7 02/7/01 02/71/21 12/3/3 12/11/5 12/22/7 12/1/01 12/31/21 22/42/2 22/6/5 22/02/7
Source: SPDR data, IKN calcs

altogether and I don’t mind admitting that the company has gone from near-zero on my
personal radar to where it is today, subject of the main Fundies section of IKN696, in the time
from its presentation at Beaver Creek (link here (3) to this weekend. With that said, I want to
point out nice and early in today’s note that I am not a buyer of this stock in the days
ahead (bold-type and underlined to make sure you see it), despite my new interest in the
company and stock as the same “keep powder dry” message of the last few weeks and in
today’s intro remains precedent. Today’s job is to outline why ATLY stood out as a potential
trade opportunity (ditto) for the weeks ahead and
why it appealed to your author’s standard value
investment criteria. While a market rebound may suit
a new trade here, this story and any eventual trade is
more about seeing how the company executes in the
next quarter (or two) and how it raises the extra
money is almost certainly needs to tide over the
problems caused by a difficult first two quarters of this
year. There’s good reason why the ATLY share price
looks the way it does in 2022 and yes, that drop to
this weekend’s 13.5c represents a heavy -70% YTD.
Indeed, ATLY is by far from the perfect company as
things stand today and that even got a clear mention
in Friday’s quick blog post. After changing its name in 2021 from Telson Mining to Altaley
Resources [sidebar; “alta ley” is the mining term “high grade” in Spanish] and rebooting its
operations and profile, ATLY has failed to deliver on its proposed growth plans and operational
profits. The delays to the former and failure to deliver the latter have combined to place plenty
of pressure on a financial structure that took on debt to fund its expansion programs at two
mining assets in Mexico. Another extract:
Its financials have been horrid, the balance sheet’s a mess and its last year or so has
been a constant string of missed milestones and production disappointments, but
there’s enough in the assets to consider a speculation in this company now that the
equity has been beaten to a pulp.
At this, some regular readers who follow the normal method in The IKN Weekly madness may
raise an eyebrow, as messy balance sheets are normally companies from which your author will
steer well clear, but in this case the poor present state of its financials is the kernel of the
reason why this may (repeat, may) become a lucrative trade opportunity. The job today,
therefore, it not to go deep on the assets and project what it is capable of doing in a perfect
world, instead we outline the three main elements to ALTY and then zero in on why the
mediocre state of its present financial position has your author interested. Here are our themes:
 The Campo Morado mining operation
 The Tahuehueto gold mining project
 The corporate financial mess
If at some point in the future I decide to pick up shares in ATLY and open formal coverage on
the stock, we’re bound to go into details of both Campo Morado and Tahuehueto along with
operational criteria, political/social risk, cash flow projections and price targets. Today is more
about getting to the financials and pointing out the key points in the company’s financial and
corporate structure, so the nuts and bolts of mining takes something of a back seat but we still
cover the basic need-to-know on both assets, starting now:
The Campo Morado mining operation
A large zinc/polymetallic mine in the Southern Guerrero State of Mexico, Campo Morado has a
chequered history as an operating mine and for many years was a true money pit for a string of
mining companies that tried to make it work, including the big European concern Nyrstar that
gave up and sold it on to Telson (now ATLY) in 2017. ATLY has also had its issues and put
Campo Morado on care and maintenance in 2019 due to low zinc prices and social issues
(Guerrero is difficult, no two ways about it) but since re-opening in 2020 the company has
managed uninterrupted production and in most quarters, reasonable profits. Until very recently
4

the two products have been the main revenue generator zinc concentrate (Zn con), with a
separate lead concentrate (Pb con) by-product, but as from the most recent quarter ATLY has
added a third circuit and is now starting to produce a copper concentrate (Cu con) as well.
These three concentrates also carry payable credits from the gold and silver contained in the
polymetallic mineralization at Campo Morado.
There’s considerable potential for production upside at Campo Morado, with the main thrusts of
future plans including modest investment to raise average throughput from the current
2,000tpd (approx) to as high as 5,000tpd, as well as improvements in metallurgy, treatments
and recoveries to boost current low recoveries for the gold and silver PM credits.
The Tahuehueto gold mining project
This is the main growth project at ATLY and is a gold/silver mine in the northern State of
Durango (a friendly place to go mining in Mexico, with plenty of established operations and all
the infrastructure required). It’s been on the books at ATLY (and previously Telson) for what
seems like forever and the construction period has dragged on for years, but the company
finally got Tahuehueto to pre-production commissioning in May of this year. The plan is to
move the operation through the gears slowly, first reaching a steady-state 500tpd throughput
and non-commercial production by the end of 2022, then ramping up to nameplate capacity
and its projected 1,000tpd production rate by 3q23 and at that point, declaring commercial
production.
To save a lot of space and description in today’s overview note, here I include Slide 11 from
ATLY’s latest corporate presentation. This slide shows the expected production rates for the
mine once in operation,
with around 30k oz gold
and 45k oz AuEq expected,
the revenues mix
dominated by gold (Zn, Ag,
Pb and Cu all providing
credits) as well as the
modest metals price
assumptions in the internal
model that allow the
project an IRR of 65.5%
and a payback period on
capex of 2.0 years,
assuming an AISC of
U$855/oz AuEq and a ten
year mine life (that will almost certainly extend well into the future, the project also comes with
a very prospective hunting ground for new resource and mineralization of the same ilk.
That’s the fastest I can do on the operations overview at ATLY, we now move to the reasons
the company caught my eye last week.
The corporate financial mess
The Campo Morado and Tahuehueto mines are interesting and both should provide solid free
cash flow as long as they work as per the plan
ATLY: Campo Morado ore processed (mt)
forwarded by the company. However, the
development plans for the mines also include the
corporate plans to finance them into fruition, that’s
where the mess begins. The corporate re-vamp of
2021 that saw the name change came with new
backing to build out Tahuehueto (faster than has
been achieved) via a combination of debt financing
and the assumed cash flow from Campo Morado,
with that mine also seeing plenty of new investment
5
834721
013861 283471 740461 344861 190381 016671 491981
220000
200000
180000
160000
140000
120000 100000
80000
60000
40000
20000
0
3q20 4q20 1q21 2q21 3q21 4q21 1q22 2q22
source: company filings

dollars that would help it realize its full potential. However, things have not gone to plan and for
that, we begin our overview of ATLU results with some
operational data. First up we consider mined tonnages
and processed ore at Campo Morado (above), which
saw a dip in 1q22 that reduced top line earnings but
recovered well enough and in fact, 2q22 hit a recent
record at the mine with a 90 day average of over
2,100tpd processed.
The problems weren’t with tonnages, but with the
quality of production as during the quarter, the mine
transitioned through a zone of difficult ore that
resulted in lower recoveries, as seen in this tracking
chart (right). The other issue is that ATLY was also
busy installing and commissioning a new copper circuit at its mill, allowing it to float off the
copper content to create a third payable product.
That copper production shows in this chart,
alongside the main Zn con product and the
traditional Pb con credit. This commissioning period
for the new line was always going to create a
production bottleneck during the quarter and as it
happens, coincided with other temporary issues at
the mine.
Sales were supported by good received prices for
the main Zn con during 1q22 and 2q22, a result of
1) the higher spot price for zinc and 2) credit
metals delivered to this concentrate. However, the
operational issues hit as well as the cost of setting up and commissioning the new copper circuit
saw costs rise sharply in the first two quarters of 2022. This chart shows the average received
price for the Zn con per Lb (as a general guide, we can run the Pb and Cu numbers another
day) set against the AISC/lb Zn per quarter:
ATLY: Zn received price vs AISC (U$/lb)
6
60.1
8.0
70.1
93.1 22.1 62.1 52.1
77.0
23.1
7.0
14.1
59.0
84.1 94.1 75.1 74.1
ATLY: Campo Morado Zn recovery percent, per qtr
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
3q20 4q20 1q21 2q21 3q21 4q21 1q22 2q22
source: company filings
ATLY: concentrate production (mt)
Pb conc prod
16000 Cu conc prod
Zn Conc Prod
14000
12000
10000
8000
6000
4000
2000
0
3q20 4q20 1q21 2q21 3q21 4q21 1q22 2q22
source: company filings
U$/lb
2.00 Zn conc realized $ (lb)
1.80 AISC $/lb
difference
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
-0.20
source: company filings, IKN calcs
-0.40
3q20 4q20 1q21 2q21 3q21 4q21 1q22 2q22
The main takeaway of this chart is the AISC levels seen in 2021, as there’s every reason to
expect ATLY to be able to return to those lower unit costs levels in future quarters. It’s this,
rather than any particular fluctuation in the spot price for zinc or any other metal, that is key to
ensuring profitability and positive free cash flow at
ATLY: Gross sales and gross revenues
this mine. On that score, here right are the results
of gross sales (top line) and gross revenues (minus
treatment and sales costs) for the last few quarters.
While a blow-out revenue quarter such as that of
4q21 would always be welcome, the plan at ATLY is
to return to the levels seen in mid-2021, bring its
AISC costs profile back under control and, with the
bonus of the new copper con payable going 727.7 245.3 806.6 392.3
841.11
796.6
69.81
526.9
612.12
537.31
984.42 84.81 670.32 217.71
176.92
757.91 435.12
827.21
12.91
909.31
C$m
35
30 Gross sales
Gross Revs
25
20
15
10
5
0
1q20 2q20 3q20 4q20 1q21 2q21 3q21 4q21 1q22 2q22
source: company filings

forward, return the mine to solid gross margins. For a better illustration of what can (or should)
be achieved at Campo Morado, this chart takes the gross revenues numbers from above and
subtracts COGS for a Mine Op. Profit number:
C$m ATLY: Mine op profit, per quarter
22
20
18 Gross Revs
16 total COGS
14 Mine Op Profit
12
10
8
6
4
2
0
-2
1q20 2q20 3q20 4q20 1q21 2q21 3q21 4q21 1q22 2q22
source: company filings
Costs crept up in 1q22 and 2q22 for the abovementioned reasons (copper circuit, poor
recoveries compared to tonnages) but assuming ATLY can put those behind, a return to 2021-
type gross revenues and lower costs should result in the type of $10m-or-abouts mine profit
that then funds its corporate structure. This was one of the data points that stood out during
the ATLY corporate presentation last week when new President Ralph Shearing talked over the
issues recently faced at Campo Morado. He explained that the recovery problem stemmed from
the mine operations having to transition through a problematic phase of mineralization at the
Largo zone, but that was now largely complete and while the company literature says that Q3
would only get 40% of its feed from the problem area instead of virtually all of it in Q2,
president Shearing mentioned that the mix was now up to 70% from a better and more
productive zone and only 30% from the old stuff. Here’s a transcript of a segment of his talk:
“We have now transitioned almost fully out of that deposit, we’re still producing about
30% of the feed to the mill, but the rest is coming out of the G9…our head grades are
back up, recoveries are back up and our revenue is starting to come back up and
that’s been achieved over the last three weeks. So we’re expecting a much better Q3
transitioning, Q4 will be much better. Hopefully duplicated the numbers in 2q21 or
even improving on them.”
Those are all good things, so we can expect incremental improvement from Q3 and then the
mine should be back to full stride come 4q22 and beyond, with the new SW G9 zone expected
to provide feed for the next year and a half. And while it’s not part of the analysis agenda today
and something of an aside (trying to keep on-point),
Shearing is a founder of Telson/Altaley and best
understood as the key figure at the company. For the last
year and a half he has taken the CEO role, but last week
stepped aside to bring in one Michael Struthers to take
over as the new CEO. This is a welcome development, will
allow Shearing to focus on his strengths and the arrival of
new blood is also likely to help whatever financing
decisions are required.
So while prices for zinc (right) main payable at Campo
Morado aren’t at the spike heights of late last year, the
recent U$1.40/lb+ prices have held well and that level
would provide plenty of margin for ATLY in future quarters as long as its production does what
we expect and returns to form. And that’s important, as we’re now about to delve into the real
reason as to why Altaley Resources’ share price has been so weak recently. It needs all the
cash it can get, and quickly.
The balance sheet at ATLY.v is the window into the reason why its share price has fallen off a
cliff in 2022, but unlike many other cases I think its issues aren’t as serious as the market
makes out and as long as its backers continue to support the company in a reasonable manner,
7

there’s every reason to suppose that it can get to a stronger financial position quickly and that
will be the catalyst for a stock price revival. We begin with the main overview charts for assets
and liabilities and in this case, there’s plenty to learn from these visuals. Overall assets (below
left) total C$125.149m as at end 2q22, with C$95.066m of that tied up in the fixed assets
column. That compares to a total C$89.363m and the split between currents and KLT is as seen
in the chart (below right):
ATLY: Overall Assets
One of the things that stands out in these charts is the way in which asset values have
improved since the re-boot in 2021 that included the name change to Altaley and the
recapitalization of the structure via share placements and a refi of debt facilities. Thw biggest
changes to the assets chart are inn its fixed assets and that speaks of the raised money being
deployed on the build-out, mostly the Tahuehueto development assets but also for
improvements at Campo Morado. Over at the liabilities chart, the changes to the debt pile also
shows as some of the burden was booted onto the LT ledger, but you’ll also appreciate how
liabilities have been creeping higher in the last couple of quarters. That’s due to the non-
performance of Campo Morado and the lack of free cash flow to service its debt as previously
expected. One of the things we can do with those two datasets is to put them together and get
book value, and in this chart (below left), we see how book has moved from negative to
positive since ATLY got its capital injection and went to work building the new company plan.
With the share count (above right), the book value per share (below left) as at 2q22 comes to
just over 12c, which is as close to the current share price as makes odds. Also, if we compare
what BV/share has done compared to the ATLY share price, particularly what it’s done since the
mid-2021 re-boot, it’s a story told of equity value dropping while real asset value improves.
8
3.83 3.04 6.93 4.93 1.04
0.04 2.44
5.25
2.08 9.68 1.59
130
120
110
100 90
80 70
60
50
40
30
20
10
0
91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
C$m ATLY: Liabilities
fixed
other current inventories
mkt sec cash & eq
source: company assets
166.54
207.34
C$m total LT liabs
100 total current liabs
90
80
70 60
50
40
30
20
10
0
4q19 1q20 2q20 3q20 4q20 1q21 2q21 3q21 4q21 1q22 2q22
source: company filings
ATLY: Book Value
50
35.8
40 30.7 32.8
30
20
5.5 10
0 -10 -0.9
-20 -12.3
-30 -24.1 -24.5 -25.1 -23.5 -26.7
-40
91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
$m ATLY: Shares Out
source: company filings
85.931 40.951 73.161 63.571 77.281
70.632 97.252 15.452 65.752 48.262 98.772
300
250
200
150
100
50
0
91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
source: company filings
serahs
fo
snoillim
ATLY: Book Value per share
0.20
0.16
0.12
0.08
0.04
0.00
-0.04
-0.08
-0.12
-0.16
-0.20
91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
P/BV
source: TSXV, ATLY.v filings

We’ll return to that theme below, first we tighten the focus and consider the state of current
assets at the company.
ATLY: Current Assets
35
30
25
20
15
10
5
0
By removing the fixed asset segment from the visual, it’s easier to see how liquidity has become
an issue at ATLY. Cash is down to C$15.535m as at end 2q22 and the large “other” are mostly
accounts receivable. They’ve improved to C$10.5m as at 2q22 but at the same time, accounts
payable are up sharply over $7m to C$23.6m and are back to what used to be the ceiling level
at the company. More ominously and concurrently, near-term debt repayment obligations are
up at C$15.7m as at 2q22 and while ATLY has done some deals since the end of 2q22 to
reduce that burden slightly and raise some capital as an advance on a larger financing deal it
apparently has in the works, those currents are not going to be able to cover those debts
without help from current operations.
Put simply, ATLY is facing a cash crunch.
That’s not a good thing for a mining company and reason enough to have seen the share price
sell off. The way 1) the two mediocre production quarters at Campo Morado 2) the debt
obligations that are now coming due and 3) ATLY keen on executing on its mine construction
plans at Tahuehueto and Campo Morado, as well as 4) a couple of extra issues with a part of
the debt, the general inflation in the sector and the drop in metals spot prices, have combined
into something approaching a perfect storm for ATLY and squeezed its cash position to the
point where it’s affected its development plans.
And that’s all the bad news out the way (I think). Now for the reasons why, despite the obvious
cash problems at the company, I believe there’s a potential trade at ALTY at some point before
the end of this year. Four reasons:
1) Its backers won’t let the cash crunch become a systemic or existential risk.
2) ATLY will be able to add cash via some sort of financing
3) Operations are improving and that cash will help as from now
4) Even if things don’t go well, there’s enough asset value to justify its current share price
Points 1) and 2) are closely related. It’s an assumption rather than knowledge and that alone is
a reason not to jump in immediately, but I cannot see the major backers behind ATLY refusing
to help refi the company through this tight period. With Tahuehueto now under commissioning
and Campo Morado reportedly performing more to plan, main creditors such as Trafigura will
care a lot more about the continuance of its concentrates supply Campo Morado than any deal
to screw over ATLY. As long as the Trafis of this world get their requisite pound of flesh on a
refi or supplementary financing (be it debt, equity or offtake, other), ATLY has the
creditworthiness required and the new CEO coming in is probably part of the pre-agreement on
a new cash injection.
As for point 3), as long as we take the company and its Beaver Creek presentation at its word,
doing the quickmath on operations suggests that Q3 will be an improvement on the previous
two quarters and now that Campo Morado is into a more conducive orebody, 4q22 should get a
lot better. Along with the new copper circuit making a better payable product than the lead
9
91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
C$m C$m ATLY: Current liabilities breakdown
80
other current
70
inventories other current
mkt sec 60 ST debt
a/c payable cash & eq 50
40
30
20
10
0
4q19 1q20 2q20 3q20 4q20 1q21 2q21 3q21 4q21 1q22 2q22
source: company assets
source: company filings

equivalent and the potential tweaks to the recovery process that could boost gold and silver
credit recoveries, there’s every reason to expect free cash flow from ops to be able to cover at
least some of the upcoming debt obligations (leaving a refi for the rest).
However, its the final point 4) that tipped the balance as I looked into this company last week
and made the decision to feature it as this weekend’s main fundies event. Once you sift over
what ATLY has done with its money in the last year and a half and consider what Campo
Morado and Tahuehueto are worth even in a worst case situation where a cash crunch causes
the company to hit a wall and is forced to stop operations, the current share price represents
clear value. It’s my contention that even if things don’t go well, ATLY at today’s share price has
been severely oversold by a market that is ignoring anything except for the nearest of near-
term views. To get a handle on this argument, we now drill down on the C$95.1m in total fixed
assets as shown in the first assets chart above. On doing so, we see the amount of true
embedded asset value at ATLY that doesn’t currently make it to the equity price. Here’s a
breakdown of the 2q22 fixed asset total:
Tahuehueto: $32.76m
Campo Morado: $16.411m
(Other) Land: $3.222m
Mine Plant/Machinery/Equipment: $12.244m
Construction in Progress: $19.584m
Right of Use Assets: $9.546m
Other: $1.284m
Total Fixed: $95.066m
In the event of a worst case such as default, we can debate the value of this-or-that line item
while others may be liquidated quickly in order to pay down liabilities, but the capitalized costs
of the mining assets, i.e. Tahuehueto and
Campo Morado, are difficult to argue with. C$m ATLY: Costs Capitalized as Mineral Interest & Dev. Assets
Here’s a chart that separates those 55
50
(Campo Morado was impaired for two 45 Campo Morado
years before coming out of the penalty 40 Tahuehueto 16.411
35
box with the improvement in the social 30 16.462
situation and zinc prices) and those alone 25
20 23.829
total C$49.492m. That’s fresh cash poured 15 32.76
24.237
into what either is (Campo Morado) or will 10 16.585
be (Tahuehueto) a performing asset and 5 6.393 12.335
0
at the current share count, that’s FY18 FY19 FY20 FY21 2q22
18.8c/share in fixed asset value for the source: company filings
two mining assets alone. That compares
to the 13.5c you’d pay to buy a share on the open market today and to expand on why those
shares are as cheap as that, let’s get a little philosophical on the whole subject.
The definition of equity: The term “equity”, or more prosaically but still reasonably, “The share
price of a company”, is something so basic to the world of capital markets but at the same
time, often misunderstood at a basic level by market participants. While considering ATLY as a
possible investment last week I remembered an old definition of what it is, one learned long
before I fell backwards into the world of mining, almost two decades ago. It’s as true today as
it was back then, so here you go:
“Equity is the thin sliver of hope that lies between assets and liabilities on a balance sheet”
To illustrate why the word “hope” appears in what many people think is a purely business-
related and numerical world of calculation, two simple examples:
 Example 1: We have a company. It makes no money. It has assets worth
$2,000, liabilities that total $1,000 and the ownership is split up into 1,000
equal portions (we call them shares). If we liquidated the assets and paid off
the people we owe money to, then shared out what’s left between the equal
10

parts owners, each share would get one dollar allocated to it. Bottom line:
The equity of this company is $1,000, or $1/share.
 Example 2: We consider a similar company, but this one made $100 in profit
for its owners last year and now the equity is worth $1.10/share. However,
the we now see that the business model is good and that this company can
be reasonably expected to make the same amount of money in the year
ahead. If you, the owner of one of those shares, were offered $1.10 you
probably wouldn’t accept the deal, but there is likely a price at which you’d
happily sell and realize your gains. Welcome to the stock market, ladies and
gentlemen readers of The IKN Weekly.
In example 2, you’re not going to sell that $1.10 in net tangible asset value for $1.10, as both
yourself and the prospective buyer is looking to the future and its intangibles…i.e. the hope of
future profits and business success that invariably gets priced into the stocks and shares which
we, as investors and speculators, buy/hold/sell.
That’s the end of the simple example and we move back to ATLY, as the market is now pricing
these shares at default level, so cheaply that it seems to assume that 1) Tahuehueto won’t get
built (it’s 95% built and already on the way to 500tpd throughput) 2) Campo Morado will
remain unprofitable forever (we know its operations are back on track and 3) the creditors will
cause it to default in the near future. In so many words, by pricing ATLY at 13.5c the market
has taken that definition of equity and applied Dante’s 'Abandon all hope ye who enter here' .
To repeat, forget the new equipment bought and just consider the mines, which are now worth
5c/share more than the current price and would be coveted assets if they came up for sale. Or
if you prefer, liquidate the whole company tomorrow morning and get to 12.2c/share net which
makes the intrinsic downside risk a penny.
There’s no reason for this company to be priced this cheaply by the market and, as long as
what we heard from its President Shearing last week is true, the coming quarters will see
Campo Morado return to profitability (as it depends more on the reduction of its own unit costs
than the metals spot prices), the start of operations and cash flow at its new Tahuehueto mine
(delayed yes, but not dead) and the repayment of debt that will immediately strengthen it
balance sheet. There is risk to this structure (there always is) and aside from the prospect of a
collapse in metals prices, we need to take into consideration the possibility that ATLY fails to
cover its upcoming financial obligations successfully. That would cause a near-term price
collapse (until the underlying asset value was recognized, at least) but equally, the company
may have to settle for usury terms in order to refi and that’s a better reason to wait until we
know more about any eventual financing /refi deal to get it over the current tight cash position.
However and on taking everything into consideration, as long as ATLY announces a reasonable
deal to ensure liquidity and cover debt payments for the next 12 months or so while allowing its
mines to gear up to capacity, this current share price offers tremendous value. While I’m the
first to agree that its present balance sheet situation is a mess, the numbers involved are
comparatively small in absolute terms and that mean earnings power of just Campo Morado
would be enough to strengthen its financial position quickly. Then once we factor in a
Tahuehueto that’s close to fully built already (capex embedded) and could easily run at an
annual 45,000oz AuEq and a U$600/oz net margin (i.e. U$27m annual), its current market cap
of C$37.5m makes the share price value blatantly obvious. While not a buyer immediately and
preferring to wait on the sidelines until we have clarity on its corporate financial position, this is
a company and a story I will be watching closely from now on and once it’s clearly out of the
financial penalty box, it’s exactly the type of share price that can make for a multi-bagger
leveraged win once the market for metals and mining stocks turns.
11

Stocks to Follow
I know I keep saying “It could have been worse” when getting to this commentary segment,
but when GDXJ drops 5.9% and you can report eight winners and three UNCHers from 17
covered stocks, there’s no reason to change tune. So instead of annoying you with unfair
comparisons, maybe it’s better to consider the six losers on the week (ARG.to, SGI.v, RIO.v,
PA.v, MIRL.cse, WRN.to) because too many of those are from the upper levels of the table, the
places where I have more of my own money. At least Minera Alamos (MAI.v unch) held steady.
With the addition of ATAC Resources (ATC.v) to the Watchlist, there are now 17 stocks covered
by this section. Three blobs of green, not good at all.
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
Amerigo Res ARG.to STR BUY C$1.36 12-Dec-21 C$1.03 -24.3% CheapCu w/low downside risk
Superior Gold SGI.v STR BUY C$0.95 3-Apr-22 C$0.405 -57.4% Needs to improve by Q4
QC Copper&Gold QCCU.v BUY C$0.275 25-Apr-21 C$0.15 -45.5% Now drilling. Easy hold
Rio2 Ltd. RIO.v HOLD C$0.83 22-Apr-18 C$0.12 -85.5% Cheap on permit probs, appeal
SPECULATIVE TRADES
Chesapeake Gold CKG.v SPEC BUY C$3.07 20-Feb-22 C$2.25 -26.7% Au leverage, small trade so far
Aldebaran Res. ALDE.v BUY C$0.72 16-May-21 C$0.65 -9.7% trying patience
Palamina Corp PA.v SPEC BUY C$0.295 21-Nov-21 C$0.07 -76.3% Au expl in S.Peru
Altiplano Metals APN.v HOLD C$0.31 17-Sep-21 C$0.22 -29.0% Cheap entry, plan on track.
Minera IRL MIRL.cse hold C$0.195 22-Jul-12 C$0.085 -56.4% CEO change will move stock
A WATCHLIST OF POTENTIAL TRADES. NB: I DO NOT OWN
Newcore Gold NCAU.v SPEC BUY C$0.51 20-Mar-22 C$0.24 -52.9% potential gold exploreco trade
ATAC Res ATC.v SPEC BUY C$0.095 11-Sep-22 C$0.11 15.8% V cheap Yukon neighbour play
Electra Battery ELBM.v WATCH C$5.31 20-Mar-22 C$3.98 -25.0% potential battery metals play
Anacortes Mining XYZ.v WATCH C$0.49 22-Jul-22 C$0.56 14.3% potential gold exploreco trade
Goldshore Res GSHR.v WATCH C$0.33 22-Jul-22 C$0.215 -34.8% potential gold exploreco trade
Western Copper WRN.to SPEC BUY C$2.41 20-Mar-22 C$1.62 -32.8% potential copper trade
LONG-TERM NON-MINING HOLD
Mene Inc. MENE.v adding C$0.66 6-Dec-20 C$0.52 -21.2% LT bet, adding slowly
CLOSED TRADES IN 2022 date closed close price
Great Bear Res GBR.v Jan'22 C$15.83 26-Aug-20 C$28.58 80.5% Bought out by Kinross, print
Copper Mountain CMMC.to Jan'22 C$3.40 18-Jun-21 C$3.78 15.9% Sold 1/2 position in rebalance
Copper Mountain CMMC.to Feb'22 C$3.40 18-Jun-21 C$3.70 8.8% Sold rest on FY22 guidance
Trilogy Metals TMQ Mar'22 U$1.84 15-Sep-19 U$1.04 -41.3% killed by US permit reversal
McEwen Mining MUX Apr'22 U$0.89 2-Jan-22 U$0.82 -7.9% No 2022 turnaround, cut loss
Abrasilver Res. ABRA.v May'22 C$0.42 24-Apr-22 C$0.33 -21.4% sold to reduce Ag exposure
Strategic Metals SMD.v May'22 C$0.42 31-Jan-21 C$0.30 -28.6% trade flatlined 1.5 years
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:
ATAC Resources (ATC.v): ADDED TO WATCHLIST. To be 100% clear, I do not yet own
any ATC stock but, as noted last weekend in the main fundies note, it now takes its place in the
Stocks to Follow watchlist. ATC traded quietly and that’s the way I like it at the moment, so
12

while the stock rose 1.5c (15.8%) on the week with a flurry of trading on Tuesday, the real
story is in its 2022 YTD chart:
Until ATC breaks over 11c, there’s no change.
We reiterate that the main interest in this stock is as a leverage play on the new hot neighbour
play Snowline Gold (SGD.cse) and we therefore wish that company the best of fortune as it
moves forward and drills its targets. As for ATC and aside from the gravitational pull of the
neighbour play theory, we watching ATC should pay heed for any new talk of “driving a road in”
to this remote location, as that would spark the trade as a compelling value option.
Superior Gold (SGI.v): A good example of a bad market ignoring good news. SGI is one of a
couple of stocks this weekend to which we offer the dedicated link for the Beaver Creek
conference presentation and in this case, Michael McAllister, VP Investor Relations did the
honours (4). The takeaway is that the revised (i.e. guidance dropped) plan for 3q22 and 4q22 is
on track as per the new story and with just two
weeks left in Q3, there’s no reason to expect a new
round of bad news from the company when it reports
production numbers.
As for the rise in the US Dollar and its effects on the
price of gold, it’s time to point out that an operation
such as SGI’s Plutonic, located in Australia with a
high level of fixed costs in its overall COGS mix, also
offers a natural hedge against the rise of the USD. In
the last week alone the Australian Dollar has
weakened by around 3% compared to the world’s
reserve currency which should help retain operational
margin and ensure costs don’t run out of control. But all that doesn’t matter because the world
doesn’t want to own small gold operations at the moment, it seems.
QC Copper & Gold (QCCU.v): A long NR out of the company last Monday September 12th (5)
that got in front of the Beaver Creek (QCCU.v) NR and provided a comprehensive summary of
work in 2022 to date at QCCU and its flagship Opemiska property. It’s a good NR, full of
information and I appreciate how the company lays out its information, the steps along the way
and also goes back to underscore how its change of exploration focus mid-year means its now
looking at the project from a holistic level and considering the larger mineralization mass, rather
than trying to selectively tease out certain areas of higher grading mineralization. However and
as long and detailed as the NR might have been, there was only one piece of real news in last
week’s release. Here’s the segment and you get the context, the excuses and then the news
underlined in bold type:
The Company is highly motivated to publish Opemiska's updated MRE as soon as
possible. However, management has elected not to rush its technical team or the
process to ensure the best product can be delivered to shareholders. The Company
13

has experienced operational delays due to turnaround times from the assay laboratory,
whose slow pace of assay results has led to bottlenecks in planning and permitting
follow-up drill holes. As a result, the MRE's publication is expected in early 2023.
Original guidance had been for the end of 2022.
That’s not great and adds (let’s say) one quarter to the resource update timeline but it’s not the
end of the world, either, worse things than this happen in mining and a quarter’s delay on what
was always going to be a tight timeline isn’t one to sweat or curse over. All the same I decided
to feign annoyance and ping QCCU Stephen Stewart, asking him for the executive outline and
any extra colour he could provide on the MRE delay, an idea of the exact arrival time for the
delayed 43-101, plus what we can expect from the company for the rest of 2023 once the
update were in the books. Instead of paraphrasing him let’s quote him, so here’s how he
replied (slight polish to script, but messaging 100% unchanged):
1) Why the delay?
Bottlenecks. ~50% of our drilling was planned upfront and went smoothly. The balance
largely depended on the results from the first 50% to chase & follow up on mineralized
trends. Assays have been slower than expected. Then permitting those holes has been
even slower. Drill permitting in QC needs to be hyper-specific on collar coordinates. If
you move the hole, you need to re-permit, and the permit office in Chibougamau was
operated by one employee who was overwhelmed.
This MRE will incorporate far more than basic drill data, e.g. other inputs (geotechnical
drill being the most important) whose completion and incorporation depend on a
finalized drill hole database.
Reinterpretation of the geology, which is the right way to go about this, has also
caused us to revalidate many historic holes. This revaluation issue also holds for our
evaluation of an underground component that may be included in this MRE. This is
laborious work.
We also conduct our work to a higher standard than a typical MRE. We are planning
for all work to be sufficient for a PEA at a minimum. The emphasis is on getting it right.
The market does not believe us, hence we cannot make any mistakes.
2) When exactly will we get the new RE?
2023, obviously. We are aiming for Q1, and we believe that is realistic, but I am
hesitant to guarantee anything. I don’t want to disappoint twice.
3) Plan for the rest of 2023?
1.Engineering and economics on the pit.
2.Drill out Cooke, Robitaille and Roger to better understand their potential to add
economic mineralization to our project.
3.A financing when the time is right.
That’s fair enough and for what it’s worth CEO Stewart and I have chewed over the timing for
an eventual financing at other moments and while he’s not in a rush and can wait for the
second half of 2023 easily, he’s also eyes-
open on the market will adapt plans to
circumstances. As for trading last week, the
market responded well enough to the NR and
despite the sector-wide headwinds, it looked
as though QCCU was going to finish in the
green until some thin Friday sales brought it
back to UNCH on the week. Again, slightly
annoying but as there’s excellent value in this
stock at this price, it’s not as if 2c either way
makes much difference. Very cheap and a real
live prospect to become a real mine, you
cannot say that about most exploreco flagship
properties out there. As for the future, we can
expect more drill assays in the days to come
as the company gets into a richer period of results disclosures.
14

Minera Alamos (MAI.v): Whether we get the elusive 43-101 on Cerro de Oro in time for this
week’s Denver Gold Show or not, there’s clearly some value purchasing going on and this three
month chart shows the two reasons to be cheerful about the way MAI has been trading
recently. Firstly the general trading has held up better than peers (GDXJ proxy), then on Friday
we saw some decent chunks change hands at the right price. MAI finished UNCH on the week
and could have been 2c up or down, but in the end that doesn’t matter so much. What matters
is seeing the company deliver on the promised news on CdO, then Santana’s commercial
production, as we move into Q4.
Rio2 Ltd (RIO.v): The stock is now firmly in the penalty box. The scene is set for the appeals
process and the market now assumes RIO will be able to raise the necessary amount of tide-
over money it will require to get through the legal process involved, but the current bear
market backdrop does this issue no favours at all and the lack of interest in positioning on the
open market is understandable under these circumstances.
Western Copper & Gold (WRN.to): I’m leaving the link to this Beaver Creek presentation by
Ken Enquist of WRN (6) because while most
are worthy of your consideration, this is one
of the IKN Weekly covered stocks that stood
out. Honest to a fault, I can’t help but
wonder whether Enquist’s comment at the
end (almost the last thing he said, in fact)
that WRN would spend the vast majority of
its future budget on the Environmental
permitting track “over the next several years”
as the reason the stock failed to rally with
others on Friday and found sellers while
others (e.g. REG) were getting bid up:
The “competitive tension” message pushed
by Paul West-Sells was definitely lacking, so
let’s see if the CEO can wow them at Denver this week.
Amerigo Resources (ARG.to): There were several moments last week during which ARG
was struggling to hold the C$1.00 line, even dipping a penny or so under the Loonie on
occasion. The value investor in me screams that this company does not deserve such an
ignominious fate, the market sentiment follower understands that the lack of buying interest in
the sector causes these crazycheap prices. ARG offers a minimum (repeat, minimum) 12% yield
on a solid business game plan and remains the best value copper play in town, but also remains
easy to buy. Nobody said mining stocks had to be logical.
Newcore Gold (NCAU.v): The newly hiked spec buy rating was justified last week by the way
the stock traded, bouncing off its 20c low level and trading in fits and starts around 25c.
Altiplano Metals (APN.v): Up on no news and
would have been up a lot if it hadn’t been for a soft
end to Friday trading. They weren’t exactly queuing
out the door to buy APN, but the action last week
and especially on Thursday shows that if anyone’s
interested in buying, they have to pay up. It would
only take a sentiment change in the broader sector
(e.g. gold catches a sustained bid) for APN and
stocks in the same boat to revalue quickly.
15

The Copper Basket
After thirty-seven weeks of 2022, The Copper Basket shows a loss of 42.89% level stakes:
company ticker price 1/1/22 Shares out Market Cap current pps gain/loss%
1 Copper Mtn CMMC.to 3.42 210.166 334.16 1.59 -53.5%
2 Marimaca Cop MARI.to 3.77 88.118 285.50 3.24 -14.1%
3 Western Copper WRN.to 2.00 151.451 245.35 1.62 -19.0%
4 Oroco Res OCO.v 2.04 203.4 185.09 0.91 -55.4%
5 Nevada Copper NCU.to 0.71 448.437 125.56 0.28 -60.6%
6 Hot Chili HCH.v 1.53 109.223 120.15 1.10 -28.1%
7 Regulus Res. REG.v 1.06 101.85 110.00 1.08 1.9%
8 Meridian Min MNO.to 1.18 153.735 90.70 0.59 -50.0%
9 Aldebaran Res. ALDE.v 0.84 138.401 89.96 0.65 -22.6%
10 C3 Metals CCCM.v 0.16 645.379 38.72 0.06 -62.5%
11 Kutcho Copper KC.v 0.88 103.94 29.10 0.28 -68.2%
12 Element 29 Res ECU.v 0.58 79.24 24.56 0.31 -46.6%
13 Doré Copper DCMC.v 0.79 66.123 23.47 0.355 -55.1%
14 QC Copper QCCU.v 0.34 129.06 19.36 0.15 -55.9%
15 Coast Copper COCO.v 0.13 41.335 2.48 0.06 -53.8%
NB: All stocks in CAD$ Portfolio avg -42.89%
The headcount for the week is seven winners
The Copper Basket 2022, weekly evolution
(CMMC.to, OCO.v, MARI.to, MNO.to, HCH.v, 10%
REG.v, CCCM.v), four unchanged stocks (ALDE.v, 0%
DCMC.v, QCCU.v, COCO.v) and just four losers -10%
(NCU.to, WRN.to, KC.v, ECU.v) from the 15 -20%
covered stocks and as for the bigger movers, -30%
there was just one to the downside (NCU.to down -40%
12.5%) but three to the upside, particularly the
-50%
springs seen in C3 Metals (CCCM.v up 50.0%) and
-60%
Regulus Resources (REG.v up 35.0%) along with
the 10% move in Hot Chili (HCH.v). We cover
those two big movers in the notes, below.
Perhaps due to a lack of trading out of China
during its public holiday, copper went on a
choppy and volatile ride last week as the
market tried to work out what next week
would do to the world macro scene. The ten-
day Comex futures contract chart (HGZ22)
below shows how Dr. Copper first rallied, then
sold off sharply before hitting a bargain
hunters’ rally into Friday’s close.
Here’s the curated comment of the week,
Reuters doing the honours (7) after Asia
overnight trading pushed copper towards its
lows and before the Friday Americas rally got it back to U$3.50/lb+:
“Pushing copper down are currency dynamics coming from a stronger dollar and a
weaker yuan,” said Gianclaudio Torlizzi, a partner at consultants T-Commodity.
However, he added that tight supply in China would keep prices around current levels.
“China’s economy remains weak and is still not offering any good reason to go long
metal. But it is very risky to go short,” he said.
That’s how professional brokers and high-salary traders say, “I don’t have a clue”. Sounds
16
ts1naJ ht9naJ ht61 dr32 ht03 ht6bef ht31 ht02 ht72 t6raM ht31 ht02 ht72 dr3rpA ht01 ht71 ht42 1yam ht8 ht51 dn22 ht92 ht5nuj ht21 ht91 ht62 dr3yluj ht01 ht71 ht42 ts13 t7gua ht41 ts12 ht82 t4pes ht11 ht81
source: IKN calcs

better their way, no? The elephant in the room is next week’s FOMC and the lack of direction is
directly connected to the lack of will to bet on the outcome of the meeting and its subsequent
official messaging. So we move swiftly on to our regular segment covering copper inventories at
the world’s three official warehouse systems, data from Cochilco:
 It was an overall drawdown, but not by much and physical movements were moderate,
mostly due to a Chinese national holiday. The grand total lost 453mt to close Friday at
182,171mt and it’s worth remembering how tight that is compared to modern times.
 The SHFE was closed due to public holiday, stocks remained unchanged at 36,371mt.
 The LME’s headline move was a small 500mt
LME: Cu tonnage under cancelled warrant
addition to stocks, with Friday’s close at
103,225mt. To the bullish side, we again saw
inventories shift away from Asia (Taiwan
down 1,175mt) and toward the more remote
stores of New Orleans (+950mt). However there’s a bearish element to report this
weekend as cancelled warrants dropped
sharply, to 14,440mt.

At the Comex, inventories continued with its
recent rhythm and dropped around a thou
once again, this time -953mt. The Comex stock total is 42,575mt.
The dedicated SHFE charts show no change due to the holiday, so resting them for a week.
Now for some notes on a couple of our basket stocks:
Regulus Resources (REG.v): Up 35% on the
week and 30.1% of that move came on Friday,
when some moderate buying saw this thinly
traded stock pop much higher. The move came
separately from the NR out on Wednesday 14th
(8) that headlined “Regulus Intercepts 98.15m of
0.63% CuEq and 287.80 of 0.46% CuEq at the
AntaKori Copper-Gold Project”, a result that was a
continuation of other assays and typical of the
complex AntaKori structures, but without returning
a new market-moving width or grade.
This is the type of move REG puts in on occasion,
as the five year chart witnesses. It’s tough to
trade around these moves though, what with
volume being so irregular and thin. This stock
continues to be an easy avoid due to its lack of
meaningful M&A potential and clear preference is
for its sister company, Aldebaran in Argentina. The
next corporate moment is probably the period in
which REG completes its earn-in on the BVN
controlled zone and then gets paid U$9m when
the bigger local entity claws back majority
ownership. That will be good for the REG treasury
position and is bound to get as much positive spin
as possible.
C3 Metals (CCCM.v): CCCM jumped hard last week on positive news but before that, please
note that the recent jump in traded volume began two Fridays ago, not last week on the news.
Clearly somebody “guessed” CCCM would have market pleasing newsflow last week and filled
17
00142 52074 57334 00714 52045 05205 52027 52418 52926 05694 57332 52271 05761 52511 57471 52581 52862 00642 00743 57924 00914 52975 05174 05803 04441
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 ht4pes ht11 ht81
mt Cu
source: Cochilco

up at 4c, a thread that we return to in the last paragraph of these notes.
As for the news, I’ve been quick to dismiss this
company both before and during 2022 and to date,
there’s been little reason to regret the Hard Pass call.
However last week saw early drill results from the
projects that the legacy company, Caribe Copper
brought into the current structure and they weren’t
that bad. This exploreco existed to push the Peru
project optioned from Hochschild and that’s gone
nowhere, but this NR (9) on Monday 12th and then
this on Tuesday 13th (10) are about its Jamaica
concessions. The most interesting came Monday with
the headline “C3 Metals Intersects 309.0 Metres at
0.44% Copper and 0.33 g/t Gold in First Assays from Bellas Gate Project, Jamaica” and here’s a
visual from that release show what they’ve found:
Then on Tuesday at the Arthur’s Seat concession sat right next to Bellas Gate we got this
header and sub-header: “C3 Metals Discovers Large-Scale Epithermal Gold-Copper Vein System
at Arthurs Seat, Jamaica (Rock Chips Assayed up to 14.2 g/t Gold and 5.2% Copper).” Check
the Monday NR for an estimate of the geography and locations but without going into too much
detail today, it’s fair to say there’s enough geology here to make C3 more interesting as 2022
draws to a close.
Its management team and structure leaves much be desired, the founders of the New C3
(rather than Caribe) have shown themselves to be in this sector to mine paper rather than rock
and not just at this company. To be trusted as far as can be thrown, without a deep overhaul of
the board I’d be loathe to sponsor this company with my own money but it wouldn’t be the first
time a mediocre board put drills into what turned out to be a real and legitimate exploration
prospect. The other element to watch out for is its share count, as the 6c price may scream
cheap but with nearly 650m paper printed, there’s still plenty of assumed asset value for
properties that have a lot to prove (this isn’t ATLY.v, that’s for sure). I’ll leave this company for
other people, but if you’re looking for a high risk spec play that is sometimes given the full court
pump to the social media end of the investment world, it may fit your bill.
The Producer Basket
After thirty-seven weeks of 2022, the Producer Basket shows a loss of 21.36% to level stakes:
18

company ticker price 1/1/22 Shares out MktCap(U$Bn) current pps gain/loss%
1 Newmont NEM 62.02 797.44 34.86 43.71 -29.5%
2 Barrick GOLD 19.00 1779 27.22 15.30 -19.5%
3 Franco-Nevada FNV 138.29 191.192 22.60 118.21 -14.5%
4 Agnico Eagle AEM 53.14 454.904 18.96 41.68 -21.6%
5 Wheaton PM WPM 42.93 450.3 14.00 31.10 -27.6%
6 Gold Fields GFI 10.99 887.72 6.67 7.51 -31.7%
7 Kinross Gold KGC 5.81 1296.5 4.27 3.29 -43.4%
8 B2Gold BTG 3.93 1055.6 3.48 3.30 -16.0%
9 Alamos Gold AGI 7.69 392.503 2.82 7.18 -6.6%
10 Sandstorm SAND 6.20 191.4 1.15 6.00 -3.2%
All prices and stock quotes in U$ Port. avg -21.36%
The rollercoaster ride continues, as the ten winners from the week before last become nine
week-over-week losers today, with just Newmont (NEM up 1.3%) managing to buck the trend.
To be fair to NEM, it did well to put in a winning week when the 2.5% drop in gold bullion (GLD
proxy) is taken into account. The benchmark GDX dropped by 4.4%, which was about 0.6%
better than our basket of stocks and the house lead is back under the 2% line.
The 2022 Producer Basket: Weekly performance and
35% comparative to GDX control
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
-25%
Newmont Corp (NEM): The clear winner on the week was already doing okay when this
news broke post-close Thursday (11):
Newmont will continue to manage the Yanacocha operations responsibly while also
finding opportunities to enhance operations, including the construction of two water
treatment plants, with an anticipated initial spend of around $350 million over the next
two years.
Ahead of the full-funds investment decision for the Sulfides project, Newmont will
continue advanced engineering and long-lead procurement activities to de-risk the
project seeking a profitable and predictable path forward. Following the investment
decision anticipated in the second half of 2024, the project is expected to be developed
over a three-year period, adding average annual production of approximately 525,000
gold equivalent ounces per year for the first five years of operation.
There was plenty of political fall-out in Peru over NEM’s decision to defer on the U$2.25Bn (with
a B) Yanacocha Sulfides project, as that country begins to see its attitude affecting planned
FDIU. But here we cover the way the news went down for the company and as you may have
gathered from the intro, it was a popular call. We
don’t usually focus this sharply on the very-near-
term trading in stocks, but today we do with the
two-day, one-minute interval chart comparing
NEM to GDX. Not only did NEM out-perform the
benchmark by around 3.5% over the two days, it
did so with an impressive burst of Friday bell
volume as the news of the Yanacocha Sulfides
deferral was factored in.
19
ts1naJ ht9naJ ht61 dr32 ht03 ht6bef ht31 ht02 ht72 t6ram ht31 ht02 ht72 dr3rpa ht01 ht71 ht42 1yam ht8 ht51 dn22 ht92 ht5nuj ht21 ht91 ht62 dr3luj ht01 ht71 ht42 ts13 ht7 ht41 ts12 ht82 t4pes ht11 ht81
The 2022 Producer Basket: Percentage difference
5.0% between GDX benchmark & basket (negative = IKN ahead)
ikn 4.0%
gdx control
3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
-3.0%
source: NYSE, IKN Calcs
-4.0%
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 t4pes ht11 ht81
source: IKN calcs, NYSE data

The market spoke loudly and clearly and it’s something we all need to heed; The decision of a
major mining company to retain treasury rather than spend it on mining assets, no matter how
good the project may be on paper, is a net vote winner in a equity markets.
The TinyCaps List
After thirty-seven weeks of 2022, the TinyCaps show a loss of 35.06% to level stakes:
company ticker price 1/1/22 Shares out Mkt Cap current pps gain/loss%
Aurelius Min AUL.v 0.24 45.836 6.88 0.15 -37.5%
Golden Pursuit GDP.v 0.13 34.638 6.06 0.175 34.6%
Infield Min INFD.v 0.06 48.445 1.45 0.03 -50.0%
Kingfisher Met KFR.v 0.30 103.007 17.00 0.165 -45.0%
Latin Metals LMS.v 0.12 57.686 4.61 0.08 -33.3%
Manitou Gold MTU.v 0.06 344.57 12.06 0.035 -41.7%
Melkior Res MKR.v 0.295 24.011 5.28 0.22 -25.4%
Precipitate Gold PRG.v 0.105 129.322 9.05 0.07 -33.3%
Signature Res SGU.v 0.07 238.4 4.77 0.02 -71.4%
Winshear Gold WINS.v 0.08 61.585 2.77 0.045 -43.8%
Prices in CAD$, data from TSXV basket avg -35.06%
This section attempts to track the tinycap mining sub-sector of the market, our ten companies
chosen under the following criteria to put together a list representing the state of play in the
sub-sector of tinycap exploration company stocks. At least, that’s the plan.
 Market capitalization of under $20m. They have to be tiny. In two cases I’ve stretched the window a
little and allowed sub-U$20m market capper in that are just over the C$20m level, but the spirit is unaltered.
 A “non broken” stock price and project story. There are literally hundreds of tinycap juniors of the right
size, but it was a particularly depressing exercise to trawl through the whole of the TSXV and find companies
that are small enough, but with life in them. The vast majority of sub-$20m stocks are broken stocks, either
traded to death on the exchange or with projects that are a bust or with entrenched management more
interested in their monthly paycheck than anything else.
 Likelihood of meaningful newsflow in 2022. 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.
15% TinyCaps, 2022 weekly tracker
The tinycaps continued to get beaten up last
10%
week, with just two winners (AUL.v, GDP.v) and 5%
three unchanged stocks (INFD.v, MTU.v, 0%
-5%
SGU.v) from the ten components in our basket.
-10%
The only real bright spot was the rally in -15%
Aurelius (AUL.v up 30.4%), but the five -20%
-25%
negative results (KFR.v, LMS.v, MKR.v, PRG.v,
-30%
WINS.v) including biggest loser Latin Metals -35%
(LMS.v down 20.0%) were enough to push the -40%
average down to another 2022 low.
Aurelius Minerals (AUL.v): The week before
last, AUL closed the final tranche of its 10c (or 12c
flowthru) placement and this week, a couple of
modest trades showed the stock to 15c. This is
not a price to chase.
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 ht4pes ht11 ht81
source: IKN calcs, TSX data

Signature Resources (SGU.v): A 10,000 share tape-paint trade kept SGU from closing at a
humble 1.5c and as that adds up to $200 trade (ex-commish), it’s an idea of how dead this
stock is.
Latin Metals (LMS.v): The attraction of this project generator is to have a lot of projects in
Peru and Argentina and plenty of exploration
Km2 at a cheap price, then getting OPM to do
the work. It has reasonable deals with four
optioners, including early stage deals with
AngloGold Ashanti and Barrick, so the job for
the outsider is to pick up shares at the cheap
end of its trading range and then see if one of
the projects shows a true discovery. The latter
is the difficulty part, but this weekend’s 8c price
is the right answer to the former and the price
at which speculators may consider picking up a
few shares.
Clearly, the project generator model quickly
goes out of fashion in this type of bear market
and that’s why you can pick up LMS shares at these low levels. For those who are looking to
play the scattergun approach.
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
Chile: Boric goes pro-investment and miners press their claims
We outlined the main changes in the Gabriel Boric cabinet last weekend in IKN695 (while
mixing up the names of the political coalitions a little, sorry) and it didn’t take long for the
cabinet’s clear move toward the political centre to show up in official government policy (12).
On Monday President Boric, feeling the pressure as the country’s economic stats all head South
and with predictions of a deep recession in Chile getting louder by the week, announced the
“Plan invirtamos en Chile” (The We Invest In Chile Plan) that looks to improve investment by
5% over projections for the year ahead. It offers tax breaks and financing to a range of sectors
and improves FDI criteria for those on the outside looking to plough money in. The mining
industry was also offered a five year tax holiday on the upcoming new royalty as long as
investment met certain criteria, which was called a good first step by the sector experts but still
doesn’t help the image of a country that’s basically adding a sales tax to mining.
In more Chilean mining news, we documented the spat between ex-Sonami head Diego
Hernandez and the Chilean environmental authorities over the last two editions, this time it was
the turn of the new head of Sonami, Jorge Riesco, to press the case as he met for an extended
meeting with Chile’s Minister of Mining Marcela Hernando. During a “frank and cordial” meeting,
Riesco once again brought up the subject of EIA denials and this time, the SEA’s obfuscation
and sophistry about having “approved 15 EIAs since March” was laid out for all to see. He
talked to the press after the meeting and here’s the pay dirt segment of this report (13)
(translated):
“Among other subjects, the new head of Sonami spoke with Minister Hernando about
the supposed controversy generated between the chamber of commerce and the SEA
(environmental authority) regarding the approval of projects. “We told the minister that
even though according to SEA data they had approved 15 mining project, these are
nearly all for the improvement of infrastructure in existing operations and what’s more,
all are minor cost projects. However, six mining project have been rejected that would
21

allow the maintenance or generate new production, with large amounts of investment
that also count on the respective authorizations of distinct public bodies and due to
that, of course, we are worried. Above and beyond any controversy, there is a lot that
needs to be corrected if we want more investment.”
Good for him and this is all good grist for the mill at Rio2 Ltd, as the pro-mining case regarding
EIAs and specifically that of Fenix is now at the top table level and cannot be ignored by a
President who is calling on the mining industry to invest more next year.
Brazil: Anti-mining talk and the election home stretch
You can tell we’re getting close to the election day, as I don’t need to translate news stories on
the latest polling figures. Here’s Reuters (14):
SAO PAULO, Sept 16 (Reuters) - Former Brazilian President Luiz Inacio Lula da
Silva's lead over far-right President Jair Bolsonaro ahead of the October election has
widened slightly, a CNT/MDA poll said on Friday.
Lula has 43.4% of voter support against 34.8% for Bolsonaro in first-round voting,
compared with the previous CNT/MDA survey from Aug, 30 when Lula had 42.3% to
Bolsonaro's 34.1%.
Lula would win an expected second-round runoff against Bolsonaro by 49.4% of votes
versus 39.4%, an advantage of 10.1 percentage points, down from his 11.3-point lead
in August, the poll showed.
Meanwhile the mining industry finally made a minor level headline in this election campaign
when a project to raise royalties on established, large-scale mining in the country from the Lula
camp came to light. We again go to Reuters for the English language information (15):
Under the proposal drafted by mining specialists working for Lula's Workers' Party
(PT), the government would charge an increased royalty rate - known as a "special
stake" - on minerals of particularly high value, whether due to geological characteristics
or market demand, according to a party geologist and documents seen by Reuters.
The idea, which has not yet been officially adopted by the Lula campaign, was
described to Reuters by Claudio Scliar, a geologist and member of the PT committee
in charge of mineral and energy-related matters.
The “special royalty” is not part of the Lula campaign material or manifesto, and according to
the report, it was “…unclear how Lula would make a decision on the proposal and whether he
would accept it.” It still managed to get immediate response from the mining industry,
however.
"Creating a special mining royalty is going to scare away investors and make our
competitors happy, especially the Australians," said Rinaldo Mancin, head of
institutional relations at the Brazilian Mining Institute (Ibram).
This is the type of thing that goes on in the late stages of any election campaign, LatAm or
anywhere else. We on the outside should note this move, but it’s hardly the move of a
candidate trying to punish or make a serious political move on the mining industry. For
perspective, it would take years (literally) to get a draft resolution such as this one through
Brazil’s notoriously murky political structure and into statute.
Colombia: Mining Minister Irene Vélez under fire
Though not literally I hasten to add (it is Colombia after all, best to make things clear). Instead,
new Minister for Energy and Mines Irene Vélez has become a target for the opposition to the
Gustavo Petro government, due in part to her own continued faux pas but equally, the
opposition see in her their first opportunity to chip away at President Petro’s mandate agenda.
We’ve previously documented Minister Vélez’s error strewn appearance at the Cartagena mining
conference two weeks ago, last week we had two more incidents that helped raise momentum
against her ministry. First, she made an error when explaining about a financial mechanism in
Colombia known as the (Energy) “Stabilization Fund”, basically a government subsidy that
keeps fuel costs at a reasonable level for rank and file Colombians. During her explanation of
the fund, she said that the government had funded the deficit to the tune of 10,000 Billion
22

Pesos (U$2.26Bn) when in fact, the government subsidy and true deficit is 10.49Bn Pesos
(U$2.37m) and smaller by a factor than a thousand. When challenged, she eventually admitted
her mistake and blamed it on “the pressure of the last eight days”.
Then came a more serious story, as footage has appeared on Minister Vélez visiting a FARC
guerrilla encampment many years ago while the insurrection was still active (16). Her main
interaction was with students in the camp and she was quoted supporting their positions,
noting that the “guerrillas were very honest” in their viewpoint, their position contradicted the
“official discourses” that young people had been listening to all their lives and that the FARC
weren’t drug traffickers, instead they raised funds from charging payments from local
landowners and/or transport companies (known as “vaccinations”, i.e. a protection racket). The
documentary then included a student in the same meeting, saying that while the situation of
being in a FARC-controlled zone of Colombia wasn’t perfect, at least it meant that multinational
companies couldn’t come in and exploit their naturals resources. This wasn’t from Vélez’s lips,
but it was in the same documentary report and the allusion of her tacit agreement is clear. The
student finished by saying that the lack of multinational resource companies (e.g. mining) in the
zone “was something good amid the bad” of being in a FARC zone.
This has only added more fuel to the fire and there’s now a petition open to force the
resignation of Minister Vélez that’s managed to raise 15,000 signatures in the space of just four
days (17). From the time she was appointed by then President-Elect Petro, these pages
highlighted the clear issues with selecting an anti-mining activist with precious little
understanding of the sector or how it operated as Minister of Energy and Mining. The country of
Colombia now also sees the issues and as long as Petro stands by his pick, the messaging of an
aggressive anti-mining attitude will remain and grow.
Market Watching
Contango Ore (CTGO): Why I am still watching without buying
Mentioned on the blog Friday as one of the more interesting stories from Beaver Creek, it’s not
the first time I’ve mentioned Contango Ore (CTGO) and its story on these pages but it’s high
time we did again, as the company’s recent marketing push including last week at Beaver Creek
(link here (23) has finally got the share price moving on this deep value gold play. The last time
we featured CTGO in soft coverage was in IKN684 dated June 26th and the note “Contango Ore
(CTGO): Manh Choh in the spotlight”, then IKN685 dated July 3rd in which we reported on the
main points of the Kinross (KGC) presentation that week, which included the results of the JV
Feasibility Study (FS) that included this visual information:
That’s a reasonable line on 250k oz attributable to CTGO, all in high margin ounces with as low
an execution risk as you can imagine in the world of gold mining: Dig it up, truck it to KGC’s
23

Fort Knox mine, the partner does all the work and sends over a cheque for its share of the
proceeds. So to catch up on how the stock price has done since then, Back in IKN 684 and the
dedicated preview note CTGO was a U$22.685, which means it’s done fairly well. At U$28.69
this weekend, CTGO is up 26.5% in the past 12
weeks and there aren’t many mining stocks that
can claim that sort of performance over the
Northern summer period. As that chart shows,
there has been a new burst of trading interest
in the stock in September and while still
nobody’s idea of a liquid stock (it was the
archetype “trading by appointment” ticker for
many months) there is clearly some
accumulation going on.
Clearly, the Manh Choh JV 70% Kinross, 30%
CTGO) is the driver of the stock’s value and
with that project now green-lighted and first
production set for late 2024, there’s enough for
CTGO and its very tight share structure to justify its valuation (just 6.36m shares out gives a
market cap of U$196.1m). Which begs the question as to why I’m not long the stock…yet. For
that, I’d like to offer up the reply I sent to CTGO CEO Rick Van Nieuwenhuyse on September
5th, a mail exchange which preceded his recent marketing push (and good for him, he’s been
doing the rounds and promoting the company story well). He asked me why I hadn’t covered
the stock and its story recently, here is how I replied to him bad grammar warts and all:
You low share count means the way you raise your end of the Manh Choh capex will
have a greater effect than normal on the equity...and i buy equities, not mining stories.
As you note, financial markets hate the thought of financing mining projects today, so
i'm interested in the style as well as the substance of your raising. For example, if you
do straight equity it makes the calculations easy. For another, i'd be all for you doing a
converts deal with QRC (devil in details notwithstanding). For another, any debt with
obligatory hedge, or a streaming deal, would cap your free cash flow. So, i wait and
watch and see, there's no rush required in this current market.
Now, since then the share price has put on a spurt and made me look slightly stupid, but that’s
okay (and it’s hardly the first time). However, the point that CTGO still needs to raise its pro-
rata 30% of the expected U$170m to U$190m capex (and we should assume the top end)
hasn’t changed, neither has the fact that these markets are challenging for small companies
looking to raise capital (see MOZ, TORQ, SKE above). As noted in the mail to RvN, for me a
smart deal would be to get Queen’s Road Capital (QRC.v), a company with which CTGO has
already struck a deal, to fund its end of the capex via a convertible debt deal however, there
are other potential methods and there’s no doubt our CEO is out there trying to close on as
good a deal as possible, talking turkey with different players. I am certainly interested in CTGO,
Manh Choh and now the way in which RvN is beginning to promote the second asset held by
the company, Lucky Shot and the drill program that looks set to outline a high grade gold
resource (right place and time, once again) there’s clear upside to the baseline valuation that
comes from its low risk Manh Choh JV holding. However there’s no guarantee of a equity-
friendly raising for a small company looking for around 25% to 33% of its market cap in cash
so until I see the deal details on its raising, that low share count and the inherent leverage it
entails is enough to keep me on the sidelines and watching.
Good company, good, project, good management and good partner and be clear, CTGO is on
my shortlist. But as I said to the man himself, I don’t buy companies, I buy equities.
Conclusion
IKN696 is done, we end with bullet points:
24

 50bps? 75bps? Or maybe get it all done in one shot with a hundred? Eyes down for the
Fed Casino.
 Altaley (ATLY.v) is the type example of why it’s good to be bored to tears watching
samo samo mining conference presentations, there’s always a surprise waiting and a
rough diamond sitting amid the crud. This is exactly the type of stick price that can
improve by multiples given the right market conditions and while I’m not a buyer yet,
be in no doubt that I’m now watching its moves carefully. Risky? Yes of course, but the
out-sized reward potential is also there.
 Aside watching next week’s Fed gongshow and the glitterati CEOs of the multi-billion
dollar PM operators telling us how silver is the future at the Denver Gold Show, we
should pay close attention to Minera Alamos and see whether that long-awaited CdO
43-101 shows up. It’s time my biggest position re-rated significantly.
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.gowebcasting.com/conferences/2022/09/13/precious-metals-summit
(2) https://iknnews.com/beaver-creek-2022-thats-a-wrap/
(3) https://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2022/09/14/altaley-mining-
corporation/play/stream/34757
(4) https://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2022/09/15/superior-gold-
inc/play/stream/34782
(5) https://qccopper.com/news/qc-copper-updates-on-the-opemiska-copper-gold-deposits-new-mineral-resource-
estimate/
(6) https://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2022/09/14/western-copper-and-
gold/play/stream/34771
(7) https://www.hellenicshippingnews.com/copper-prices-fall-as-chinas-yuan-slumps/
(8) https://regulusresources.com/news/2022/regulus-intercepts-98.15m-of-0.63-cueq-and-287.80-of-0.46-cueq-at-the-
antakori-copper-gold-project/
(9) https://www.c3metals.com/c3-metals-intersects-309-0-metres-at-0-44-copper-and-0-33-g-t-gold-in-first-assays-from-
bellas-gate-project-jamaica/
(10) https://www.c3metals.com/c3-metals-discovers-large-scale-epithermal-gold-copper-vein-system-at-arthurs-seat-
jamaica/
(11) https://www.newmont.com/investors/news-release/news-details/2022/Newmont-Delays-Yanacocha-Sulfides-
Project-and-Appoints-Dean-Gehring-to-Lead-Assets-in-Peru/default.aspx
(12) https://www.bnamericas.com/es/noticias/nueva-estrategia-de-inversion-de-chile-beneficiaria-a-mineria-del-cobre
(13) https://www.maray.cl/presidente-de-la-sociedad-nacional-de-mineria-sonami-jorge-riesco-se-reunio-con-la-ministra-
de-mineria-marcela-hernando/
(14) https://www.reuters.com/world/americas/lula-advantage-over-bolsonaro-slightly-up-ahead-brazils-election-poll-
2022-09-16/
(15) https://www.reuters.com/world/americas/lula-campaign-mulls-new-mining-royalties-brazil-spooking-industry-2022-
09-16/
(16) https://www.change.org/p/irenevelezt-renuncie-al-ministerio-de-minas-ante-su-evidente-falta-de-experiencia-en-el-
sector-petrogustavo-ministrairenerenuncie
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(17) https://www.infobae.com/america/colombia/2022/09/13/cuestionan-a-la-ministra-irene-velez-por-antiguo-video-
donde-se-le-ve-en-un-campamento-de-las-farc/
(18) https://torqresources.com/news-media/news/2022/torq-closes-c-15-million-strategic-investment-from-gold-fields/
(19) https://skeenaresources.com/news/skeena-resources-announces-c-30-million-bought-deal-financing/
(20) https://www.newswire.ca/news-releases/marathon-announces-150-million-bought-deal-financing-877282826.html
(21) https://iknnews.com/marathon-gold-moz-to-and-yet-another-retail-rip-off/
(22) https://iknnews.com/beats-me-why-you-suddenly-want-my-opinion-on-marathon-gold-moz-to/
(23) https://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2022/09/14/contango-ore-
inc/play/stream/34736
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
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INV Metals INV.to Sep'20 C$0.40 17-May-20 C$0.45 12.5% Cut all Ecuador exposure
Cartier Resources ECR.v Nov'20 C$0.155 3-Aug-18 C$0.25 67.7% Exact close price TBA
Tinka Res TK.v Dec'20 C$0.195 19-Apr-16 C$0.195 0.0% Closed on a round trip fail
2015 to 2019 annual closed positions in appendices below, 2009 to 2014 closed positions in editions IKN553 or earlier
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
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Constantine Metal CEM.v Aug'17 C$0.135 9-Apr-17 C$0.28 107.4% spec trade closed, good win
Red Eagle Min. R.to Sep'17 C$0.67 13-Dec-16 C$0.27 -59.7% IKN's biggest failure in years
Starcore Intl SAM.to Sep'17 C$0.61 10-Jan-15 C$0.31 -49.2% Patience ran out
B2Gold BTO.to Dec'17 C$2.11 12-Sep-14 C$3.39 60.7% sold small portion for liquidity
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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