IKN #700Premium

The IKN Weekly
Week 700, October 16th 2022
Contents
This Week: In Today’s Edition, Still keeping powder dry.
Fundamental Analysis: Superior Gold (SGI.v) 3q22 production and decision to sell this losing
trade, Amerigo Resources (ARG.to) 3q22 production numbers.
Stocks to Follow: Superior Gold (SGI.v), Amerigo Resources (ARG.to), Pure Gold (PGM.v),
Minera IRL (MIRL.cse), Electra Battery Materials (ELBM.v).
Copper Basket: Overview, Copper Mountain (CMMC.to), Regulus Resources (REG.v), Element
29 (ECU.v), Coast Copper (COCO.v).
Producer Basket: Overview, Barrick Gold (GOLD) (ABX.to).
TinyCaps Basket: Overview, Infield Minerals (INFD.v), Kingfisher Metals (KFR.v), Aurelius
Minerals (AUL.v).
Regional Politics: Ecuador: Indigenous groups and their de-facto mining project veto,
Argentina: San Juan flexes its mining-friendly credentials, Brazil: Lula leads the polls, Colombia:
No more concessions or contracts.
Market Watching: A webinar this week, More impressive Abrasilver (ABRA.v) drill assays,
ATAC Resources (ATC.v): BC and an extra arrow in its quiver, Marimaca Copper (MARI.to): We
have questions.
I remind subscribers that no part of this newsletter can be copied, reproduced or
given to any third party without the express permission of the author.
This Week
In Today’s Edition
 Today’s main fundies section covers good and bad news. The bad news came from
Superior Gold (SGI.v) last week and covers the post-mortem on my decision to sell and
give up on this trade. Another failure to meet guidance, but this time with a serious and
negative change of direction for the quarters to come.
 In Regional Politics there’s some more negative news out of Colombia, another
reminder that Argentina and particularly San Juan has become a welcoming place for
the industry, but the main event is an update on the bad news for mining in Ecuador.
 It’s still a very tough and bearish market, the recession narrative continues to rule the
roost and our sector of focus is suffering more than most, as seen in the sharply
negative reaction to the US CPI numbers on Thursday morning. Keeping powder dry is
still the wisest course of action, but we continue to track stocks doing good work at
either the production or development level with an eye for when the turn comes and
this week, Amerigo and Abrasilver stand out.
Still keeping powder dry
Just a brief intro this week, as there’s nothing much to add to our present, main (and only?)
message of recent editions. After another week’s worth of market action that did few favours
for our focus sector, we remain in Keep Powder Dry mode after watching the main macro event
of the week, the US CPI number, come in slightly hotter than forecasts and gold and the miners
sell off in sharp style. It’s still fair to say that gold is still massively out of fashion as the world
continues to debate of Jay Powell’s next move. Or moves.
1

However, one of the consequences is hearing the sound of pips being squeaked, for example
Michael Darda (ex Polyconomics under Jude Wannamaker and a hard money advocate) who
told the media when they asked him that “The Fed is “going to end up killing the labor market””
(1) and “"They [the Fed] will kill inflation, but they are going to end up killing the labor
market." We knew that already, but these words are now coming from people who previously
opposed the Fed with real money. This is the sound of capitulation and a necessary ingredient
in the eventual pivot, as The Fed goes further and deeper than expected by some desks.
As for the gold market, at least things were quiet in the GLD vaults with virtually no change in
inventories on the week and a Friday close of 944.31mt, even as the price of goodl dropped
sharply (and pushing the ratio up, as seen below right):
GLD gold holdings, 2022 YTD (metric tonnes)
1140
1120
1100
1080
1060
1040
1020
1000
980
960
940
920
900
However, the mirror-like image that developed between the price of gold and the moves in the
US Dollar Index (DXY) saw a change last week, as for the first time we saw out-sized weakness
in gold compared to the dollar.
Nothing too alarming in this chart, but after considering how neutral gold has been recently it’s
worth noting the relative weakness last week. Not the best of signals, has to be said.
Fundamental Analysis of Mining Stocks
Superior Gold (SGI.v) 3q22 production and decision to sell this losing trade
On the morning of Wednesday October 12th Superior Gold (SGI.v) published its 3q22
preliminary production numbers in a NR entitled, “Superior Gold Reports Q3 2022 Production
and Cash Position and Announces Debt Financing” (2). That’s a title with too many words: If it
had stopped after the word “production” things would have been better, if it had only got to
“cash position” it would have been a little worrying, but “Announces Debt Financing” at the end
made my heart sink, even before opening the darned thing. The contents of the NR were not
good and therefore, after plugging numbers into the model early morning and trying to avoid
the decision for an hour or so, finally decided it was time to cut this losing trade out of my life,
2
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 22/9/02 22/9/03 22/01/01
mt 6.50 GLD: Inventory/Price Ratio, 2022 YTD
6.40
6.30
6.20
6.10
6.00
5.90
5.80
5.70
5.60
source: SPDR GLD data 5.50
13/21/1202 01/1/2202 02/1/2202 03/1/2202 9/2/2202 91/2/2202 1/3/2202 11/3/2202 12/3/2202 13/3/2202 01/4/2202 02/4/2202 03/4/2202 01/5/2202 02/5/2202 03/5/2202 9/6/2202 91/6/2202 92/6/2202 9/7/2202 91/7/2202 92/7/2202 8/8/2202 81/8/2202 82/8/2202 7/9/2202 71/9/2202 72/9/2202 7/01/2202
Source: SPDR data, IKN calcs

realize a big percentage and real money loss and move on. Annoyed? Yes of course and while
we’re at it, the way in which SGI went about the news dissemination also left a lot to be desired
as well. But once the decision was made and the Flash update sent out (see Appendix 1, below)
I knew it was the right decision and big drop at the open or not, it was ultimately an easy job
to hit the big red sell button and be done. The rest of today’s note explains why, in good old
fashioned post-mortem style.
We begin with the bullet points from the NR, copypasted for your consideration:
Third Quarter 2022 Highlights:
 Safety performance improved during the quarter with a 55% reduction in the total injury frequency rate
from the beginning of 2022
 Production of 15,946 ounces, only a 5% increase over Q2 2022, a result of the continued impact of
labour shortages in Western Australia which resulted in lower development inventory causing
increased reliance on remnant mining, which impacted head grades and resulted in lower production
 Ore milled of 438kt, an 8% increase over Q2 2022 following successful maintenance shutdowns in the
first half of the year
 Cash and cash equivalents totalling $11.6 million at the end of the quarter
 Suspension of mining activity in the Main Pit due to operational underperformance
 Annual production guidance reduced to a range between 62,000 to 65,000 ounces, cost guidance
unchanged
 Subsequent to the quarter end, completion of a A$10 million debt financing with Auramet International
to provide enhanced financial flexibility
As an esteemed reader of The IKN Weekly commented at the time (quote from WhatsApp), “If
your headline bullet point is on your safety performance, watch out below!” Sadly true, and the
ten-day price chart is the epitome of the thousand-word picture:
Ugh.
To rewind to the 2q22 financial results as published August 17th (please note, less than two
months ago and with half of 3q22 already in the books) SGI lowered its guidance for 2022 to
between 69,000 and 75,000 oz. At that time we adjusted our forecast production to the top end
of that guidance range and in order to get there, assumed SGI would be good about
accelerating its production schedule during 3q22 as guided and then leave 4q22 at a production
pace “toward 25,000 oz/qtr”, also as guided. We therefore assumed 3q22 would come in at
19,000 oz Au and 4q22 at 23,500oz Au but as the update chart shows, “The reality is different”:
SGI gold production and sales
3
05861 63551 29451 55851 83571
99091 28291
34112
32851 62761 57841 00061
22000
20000
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3 tse22q4
Oz Au Au prod
Au sold
source: SGI data

In fact SGI produced 15,946oz gold and sold 14,875oz, around 3,000oz lower than expected
but that’s only half the bad news, as the company again dropped its guidance for the year to
between 62,000 oz and 65,000 oz. In order to make that upper end, it now expects to produce
a maximum of 16,000 oz in 4q22 and that’s a nautical mile from recently lowered guidance
given just two months ago. That, ladies and gentlemen, is unacceptable.
The problem isn’t the amount of tonnage milled, as the 438,987mt that went through the mill is
a recent record and represents an average of 4,777tpd, which is close to the “fill the mill” policy
as SGI has been for many a quarter.
The problem isn’t recovery levels, either, as 86% was slightly better than recent quarterly
averages. No, the problem is grade:
SGI: Milled gold average grade, per qtr
4.2
4
3.8
3.6
3.4
3.2
3
2.8
2.6 2.6
2.5
2 2 . . 2 4 2.3 2.4 2.27
2.1
2 2 2.02 1.921.96 1.9 1.9
1.8 1.8 1.8
1.6 1.63 1.7 1.61.6 1.7 1 1 .7 .3 1 2
1.4 1.46 1.4
1.2
1
4
61q4 71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2
SGI: Total material milled
g/t Au
stope grade mined
grade milled
source: company filings
The grade drop is mainly due to two factors:
1) Lower than expected tonnages of underground stope material that hasn’t moved up toward
the envisaged 3 g/t level forecast by the company for the second half of 2022.
2) The average grade of the main bulk of tonnage from the open pit came in at a multi-year
low of 0.65 g/t. The result was a blended average of just 1.32 g/t through the machine.
000513
315883 760734 885054 088414 540334 801514 000814 000663 000493 000083 000663 000653 000953 000504 000983 278953 595604 789834
500000
450000
400000
350000
300000
250000
200000 150000
100000
50000
0
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3
tonnes
SGI: Gold recovery grades
source: company filings
%68 %09 %78 %78 %88 %78 %58 %48 %28 %48 %28 %48 %68 %88 %68 %78 %58 %58 %68
100%
95%
90%
85%
80%
75%
70%
81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3
source: SGI data
mt SGI: Tonnages mined surface material SGI: Stope material mined
550000 devel. material
stope material
500000
450000
400000
350000 300000 250000
200000
150000
100000
50000
0
2q21 3q21 4q21 1q22 2q22 3q22est
source: SGI filings
000731 000651 000571 000181 045581 115561 089841
220000
200000
180000
160000
140000
120000 100000
80000
60000
40000
20000
0
12q1 12q2 12q3 12q4 22q1 22q2 tse22q3
tonnes
source: company filings

This brings up one of the annoying parts of the SGI NR last week, the way in which the C-suite
fobbed off failures onto others. After being told at the the Q2 financials that things were
ramping up and the mine was getting over the 2022 Australian Covid road bump, hearing the
same excuses rolled out for this Q3 report sticks in the craw. As does the way the blame was
apparently put on the mining contractor, there was a distinct lack of “buck stops here” from
CEO Chris Jordaan. And while on that subject, for both 1q22 and 2q22 SGI published a brief
update video to its YouTube channel (as well as appearing on the webinar channel 6ix) to talk
through the results, but this quarter CEO Jordaan has been conspicuous by his absence. The
optics are not good at all.
But back to the numbers and by using a flat U$1,750/oz gold price for the quarter and our
assumptions for costs for this reasonably predictable FIFO mine, here’s how top line revenues
versus COGS stacks up:
SGI: Revenues vs Costs
5
4.72 1.72 2.13 9.62 4.43 5.92 2.43 3.82 8.73 4.92 2.03 7.62 5.13 5.13
0.62
0.13
40
35
30
25
20 15
10
5
0
02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3
U$m
Revenues COGS
source: company filings
That’s not good, but it’s also a result that fits with the AGI declared cash position at end quarter
of $11.2m (our previous estimate was $18m). It also means our previous working capital model
estimate of $5.5m is down to negative $2.5m (below right):
30 SGI: Cash treasury per qtr
27.5
25
22.5
20
17.5
15
12.5
10
7.5
5
2.5
0
This brings in the other part of Wednesday’s NR and the A$10m (approx U$6.23m) loan facility
taken by SGI with Auramet. The loan is on reasonably friendly terms, Auramet is a good partner
and a reputable counterparty and the loan and is certainly flexible, with 4,140oz of gold to
deliver to Auramet over an 18-month period starting in January 2023. Those are good things
and with Auramet’s breakeven on the loan A$2,415/oz (U$1,504/oz approx) and with gold
trading at A$2,615oz this weekend, there are worse deals out there for SGI. However, it means
that 1) SGI has less top line revenues for six quarters and 2) in the case that gold flies again,
Auramet holds a call options on another 13,500oz gold at a strike of A$2,900/oz, which would
further crimp SGI in the event of a bonanza period. But worst of all is the fact they have to take
a loan out in the first place, after several assurances of its “strong cash position” all year, up to
and including the 2q22 financials and Conference Call. The sum of parts is not good:
 SGI would not have borrowed money if it didn’t need money
 Its 4q22 production is now set at a level which implies “breakeven at best” on mine
gate financials. In real terms, it’s set to be another loss-making quarter.
91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3
source: company filings/IKN ests
srallod
fo
snoillim
14 SGI: Working Capital per qtr
12
10
8
6
4
2
0
-2
-4
-6
-8
-10
-12
91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3
source company filings
srallod
fo
snoillim

 De-mobilizing the contractor will cost money.
 While average grade will improve and variable costs drop as the underground material
becomes the man source of feed, it means the end of the “fill the mill” policy for the
foreseeable future.
Add all these to the way management offers guidance only to guide lower soon after and is
now changing the story and the decision to sell and realize this loss, though painful, was
ultimately straightforward. So farewell Superior Gold and while I’d like to think that there may
at some point in the future be value left in the company if the gold price turns around, after the
way management has acted over the last two quarters it would be difficult to take them at their
word again.
Amerigo Resources (ARG.to) 3q22 production numbers
On Tuesday October 11th our main copper play, Amerigo Resources (ARG.to), announced its
3q22 preliminary production data in this NR (3) and in the process, delivered some much
needed good news about the personal portfolio and its holdings. There’s a brief note on how
ARG traded last week in the ‘Stocks to Follow’ section, here I plan to be as brief as possible and
focus squarely on the company data and the main message from the NR. We’ll take a closer
look at ARG and its financials when the
company reports its quarter pre-open on ARG.to: Copper sales
November 2nd (with the ConfCall set for
November 3rd, see the NR for details), today we
cover the main points.
They start with copper production and sales, which came in at 16.0m lbs produced and
16.18m lbs sold in 3q22. We also got more
accurate guidance for the annual production
level and with a little math, we now have a
16.4m lbs sales forecast for 4q22.
Next up is average received price of U$3.50/lb
for 3q22, slightly above our previous
guesstimate of U$3.40/lb for the quarter from a
few weeks ago thanks to the moderate
recovery in copper. FWIW, the ARG average is
in-line with Barrick’s number of U$3.51/lb last
week (see below in Producer Basket for more).
Also, please note that as from this week we are
not offering a “lowball” number for Q4 to stress
test the model, instead we simply assume the
U$3.50/lb average continues until the end of
2022.
Put those together and get this result,
gross copper sales of U$56.6m in 3q22
and U$57.5m in 4q22
As usual, we then subtract the normal
items from the gross value, (e.g. the DET
royalty, smelting, refining, transport) and
add back in an estimate for the
molybdenum by-product credit to reach a
“Total Revenues” number, i.e. the top line
of the P+L:
6
28.11 7.31 29.41 9.51 11.51 31.51 9.61 298.61 92.61 9.41 81.61 4.61
25
22.5
20
17.5
15
12.5
10 7.5
5
2.5
0
02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 22q3 tse22q4
source: company filings
rtq/uC
sblM
ARG: Average Cu price for MVC
29.2 76.2 26.2 67.2 53.2 16.2 40.3
25.3 80.4 44.4 32.4 23.4 46.4 01.4 05.3 05.3
5
4.5
4
3.5
3
2.5 2
1.5
1
0.5
0
91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3 tse22q4
U$/lb Cu
source: Company data/IKN ests
ARG: Cu gross value, per qtr
6.83 1.43
7.24 6.34
8.12
8.43
2.05
4.16
7.66 4.17 1.96
3.57 4.97
8.55 6.65 5.75
90
80
70
60
50
40
30
20
10
0
91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3 tse22q4
U$m
source: company filings, IKN ests

ARG: Gross Cu value vs Total revs, per qtr
7
637.72 296.22 9.33
474.53
836.51
640.62
555.73
881.74 709.84 305.05 231.84 900.25 567.35
485.33 58.43 56.53
90
80
70
60
50
40
30
20
10
0
91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3 tse22q4
U$m
source: company filings, IKN ests
We estimate that to come in at U$34.85m for 3q22 and while early days and using the
U$3.50/lb assumption, slightly higher at U$35.65m for 4q22. We’re not going to go deeply into
the financials today, preferring to wait until we have a print on November 2nd, but what we can
do is to run estimates on the main P+L items and make the basic point about dividends.
Here’s the earnings overview:
ARG.to: Quarterly Earnings overview
389.8
927.51
878.81 721.91
291.41
198.91
624.12
616.1
2.4
3.5
65
60
55
50
45
40
35
30
25
20
15
10
5
0
-5
-10
02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3 tse22q4
source: company filings
srallod
fo
snoillim
revenues
COGS
Gross profit
With COGS set in-line with previous estimates, we estimate a gross profit of U$4.2m, which is
around C$5.5m at today’s forex and enough mine gate profit to cover its dividend obligation to
shareholders (3c Canadian X 160m shares out = C$4.8m).
For sure I agree that it’s not a king’s ransom and doesn’t leave much leeway for other cash
obligations (for example, the company has its standard salary increase negotiations to get
through in Q4) and as seen in this final chart, operating and net income is estimated at little
more than breakeven (before the divi is subtracted). So ARG wouldn’t be able to do this literally
forever at the current copper price, but with a cash treasury of U$53m as at end 2q22 it has a
great deal of time on its side and can ride out years of “post-dividend breakeven” quarters
while it waits for the copper price to recover.
ARG.to: Gross, operating and net profits, per qtr
60.8
44.31
40.61
70.81
56.21
15.71
10.12
74.1-
06.2 03.3
22
20
18
16
14
12
10
8
6
4
2
0
-2
-4
-6
02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3 tse22q4
U$m Gross profit
op profit
Net Income
source: ARG data

This has been the baseline for our investment in ARG from the start and something we’ve
repeated sans cesse since then. For example, here’s a quote from IKN699 last weekend and
the brief ‘Stocks To Follow’ note on ARG
“Our house position for this year has been that U$3.00/lb copper is the breakeven
baseline for the company, that U$3.40/lb copper would be enough to cover the
company’s operational requirements and its 3c/quarter standard dividend on an
indefinite basis and that at U$3.80/lb and above the “top-up” or bonus dividends are in
play again.”
As it turns out not only do last week’s numbers agree with that but Amerigo’s C-Suite does, as
well. Here’s an excerpt of the CEO quote from last week’s NR:
“Copper price volatility continued during the quarter, with an average Q3-2022 copper
price of $3.50 per pound, $0.60 lower than the average price of Q2-2022,” said Ms.
Davidson. “However, at these average copper prices, Amerigo has a strong balance
sheet that can absorb the copper price volatility and sustain the Company’s quarterly
dividend of Cdn$0.03 per share.”
CEO Aurora Davidson went on to confirm that at higher copper prices, ARG would be in a
strong position to re-start its NCIB share buyback program and add “top-up” special dividends
to the mix, that would come as an extra to the standard 3c/quarter payout. All good for the
future, but last week’s main positive to see such a clear confirmation that the 3c dividend will
continue indefinitely at the current copper price deck. Which brings us to the current state of
the equity price and I am the first to admit that when buying ARG at an average of C$1.36 and
stating loud and clear that it would have limited downside due to the generous dividend policy,
I didn’t expect it to go this low. This table lays out how much value there is in ARG today:
Amerigo (ARG.to): Dividend Yield Percentage Spread Table
Share Dividend per year (Cad Dollar Cents)
price CAD$ 8 10 12 14 16
0.7 11.43 14.29 17.14 20.00 22.86
0.8 10.00 12.50 15.00 17.50 20.00
0.9 8.89 11.11 13.33 15.56 17.78
1.00 8.00 10.00 12.00 14.00 16.00
1.10 7.27 9.09 10.91 12.73 14.55
1.20 6.67 8.33 10.00 11.67 13.33
1.30 6.15 7.69 9.23 10.77 12.31
1.40 5.71 7.14 8.57 10.00 11.43
1.50 5.33 6.67 8.00 9.33 10.67
source: ARG data, IKN estimates
At this weekend’s C$0.98 ARG represents a yield of 12.4%, remarkable for a mining company
(though they now call themselves a “copper factory”). We could see ARG rally by over 20% and
it would still be a 10% yield payer and for my money (again, literally) I see no reason for this
stock not to trade up at C$1.50, as it would still offer
an 8% yield stock even before any top-up dividend is
awarded. This slide from the latest ARG corporate
presentation shows how that sits against peers (right).
The bottom line: Amerigo and its “factory” mentality,
along with its decision to reward shareholders with a
generous dividend is the reason to own this stock. I
have been surprised to see how low ARG has dropped
with such a strong financial backbone, but at this level
it would take a wholesale price crisis in copper for the
share price to drop any further and at the current
deck, both the numbers and the company C-suite
make it clear that the a 3c cash dividend per quarter is a given. There’s also reason to consider
ARG as a leveraged play on copper upside, as higher prices would see its bonus dividend policy
and/or the share buyback plan kick in, as well as near-guaranteed cash profits to improve the
company balance sheet further. We have clear guidance for 4q22 and all the water required for
continued operations and mine gate profits throughout 2023 and 2024, as well as the
8

advantage of near-unlimited feed and manpower. For those of you who like low risk and high
potential reward in the mining sector, look no further than this stock at its current bargain price
because even at C$1.20 at today’s copper price deck it would look like a bargain.
Stocks to Follow
It wasn’t all bad. Yes, I know you read that too often at the start of the ‘Stocks to Follow’
overview section and how it invariably precedes a report on yet another negative week for the
sector, but when gold (GLD proxy) drops 3.1%, GDX drops 6.8% and GDXJ is down 7.6% it’s
not so often that we end up with five winners (ARG.to, CKG.v, ALDE.v, ATC.v, GSHR.v) and four
unchanged stocks (QCCU.v, PA.v, WRN.to, MENE.v) from a group of 18 stocks. In the other
hand it wasn’t all great either and there were some hefty percentage hits taken among the nine
losers, worst of which being Superior Gold (SGI.v down 43.4% on the entire week) as seen
above in today’s main fundies section. Others that couldn’t avoid the waterfall drop in metals
and mining stocks include Altiplano (APV.v down 17.4%), Newcore Gold (NCAU.v down 13.5%),
Pure Gold (PGM.v down 12.5%) and Minera IRL (MIRL.cse down 10.5%), though to be fair, all
those losers bar SGI are still trading inside recent ranges.
With the jettisoning of Superior Gold (SGI.v) we are now down to 17 open positions (and just
eleven owned stocks) and of those, just two are in green on cost average. 2022 sucks.
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$0.47 123.8% $0.75 first tgt, #1 idea
RECOMMENDED STOCKS
Amerigo Res ARG.to STR BUY C$1.36 12-Dec-21 C$0.98 -27.9% CheapCu w/low downside risk
QC Copper&Gold QCCU.v BUY C$0.275 25-Apr-21 C$0.17 -38.2% Now drilling. Easy hold
Rio2 Ltd. RIO.v HOLD C$0.83 22-Apr-18 C$0.125 -84.9% Cheap on permit probs, appeal
SPECULATIVE TRADES
Chesapeake Gold CKG.v SPEC BUY C$3.07 20-Feb-22 C$2.00 -34.9% Au leverage, small trade so far
Pure Gold PGM.v SPEC BUY C$0.14 26-Sep-22 C$0.1225 -12.5% near-term sm spec, Au in Ca
Aldebaran Res. ALDE.v BUY C$0.72 16-May-21 C$0.68 -5.6% 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$0.19 -38.7% 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$0.225 -55.9% potential gold exploreco trade
ATAC Res ATC.v SPEC BUY C$0.095 11-Sep-22 C$0.095 0.0% Cheap Yukon neighbour play
Electra Battery ELBM.v WATCH C$5.31 20-Mar-22 C$4.03 -24.1% potential battery metals play
Anacortes Mining XYZ.v WATCH C$0.49 22-Jul-22 C$0.50 2.0% potential gold exploreco trade
Goldshore Res GSHR.v WATCH C$0.33 22-Jul-22 C$0.205 -37.9% potential gold exploreco trade
Western Copper WRN.to SPEC BUY C$2.41 20-Mar-22 C$1.79 -25.7% potential copper trade
LONG-TERM NON-MINING HOLD
Mene Inc. MENE.v adding C$0.66 6-Dec-20 C$0.50 -24.2% 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
9

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
Superior Gold SGI.v Oct'22 C$0.95 3-Apr-22 C$0.24 -74.7% Q3 prod fail was last straw
2015 to 2021 annual closed positions in appendices below, 2009 to 2014 closed positions in editions IKN553 or earlier
Now for a few notes on some of the covered companies:
Superior Gold (SGI.v): POSITION CLOSED. Confirming today’s note in the fundies section
above and as per the Flash update of last Wednesday (see Appendix 1), this bad trade is put
down to experience, I’ve realized the loss and this one hurt, not going to hide that fact. It
wasn’t too difficult to get out at 25c average and it wasn’t a surprise to see SGI’s price track
lower in trading after, but that’s not even a consolation prize and it makes scant difference to
this hefty overall loss.
Amerigo Resources (ARG.to): The main
commentary on ARG is above in today’s fundies
section, here we make a brief note of its trading and
move on, with this five-day chart doing most of the
legwork (rightr). I was surprised twice by ARG this
week, first on the selling that pushed it down to 91c
on publication of its decent 3q22 production numbers
and guidance. The second surprise came Friday with a
pop as high as $1.03 on an otherwise difficult day for
the sector and although the stock couldn’t hold the
(psychologically important?) Loonie line, it was still
one of our few winners on the week.
Pure Gold (PGM.v): Pure Gold understandably sold off in the four Canadian trading days of
last week on the back of the drop in the price of gold.
As a high cash cost producer trying to dig its way out
of financial trouble, another U$100/oz taken from the
gold price is the wrong direction at the wrong time.
PGM put in a floor level at 10c in August and early
September, I for one wouldn’t want to see it there
again. Happy to use this toehold position as a marker
until the three major catalysts come along in
November, namely 1) the PFS update in “early
November” 2) the 3q22 financials salted for November
11th and 3) the key warrants exercise dates between
November 25th and 27th. Regarding the latter, there’s
always the potential that they are re-priced or given a longer expiry period. Those would be
negatives, however.
Minera IRL (MIRL.cse): MIRL came to an agreement with the community at its Corihuarmi
mine and the protest halted on October 7th, with the main point of agreement being that MIRL
presents its closure plan for the mine and goes ahead with the closure as per the current
estimated mine life, which runs to end 2024. This report (4) (from the wonderfully named local
media channel “Huanca York Times”) gives more details of the six point agreement, including
the stipulation that the mine closure plan must be filed with the relevant national authorities by
December 31st 2022 latest. To quote (translated):
“”We have agreed on the closure of the mine”, the sub-prefect of the community of
Atcas, Wilmer Castillo Huamán, told the Huanca York Times. The main demand of the
protesting communities was, precisely, the closure of the mine.”
10

Electra Battery Materials (ELBM.v): To its great credit ELBM continues to hit development
milestones, with last week’s NR (5) running the title line “Electra Starts Commissioning of
Battery Materials Recycling Demonstration Plant at its Ontario Refinery Complex”. This trial
stage operation will batch test some 75 tonnes of “black mass” and when the results come, all
eyes will be on recovery percentages. Assuming all goes well (and what could possibly go
wrong?) we also got a rough timeline to the “…full commissioning of the cobalt sulfate refinery
expected in the spring of 2023.” This desk’s concern is on funding of the next stage and the
period ELBM will need to reach free cash flow neutrality, which is more likely to be nearer the
end of 2023 than its beginning.
The Copper Basket
After forty-one weeks of 2022, The Copper Basket shows a loss of 46.73% level stakes:
company ticker price 1/1/22 Shares out Market Cap current pps gain/loss%
1 Copper Mtn CMMC.to 3.42 210.166 384.60 1.83 -46.5%
2 Marimaca Cop MARI.to 3.77 88.118 304.89 3.46 -8.2%
3 Western Copper WRN.to 2.00 151.451 271.10 1.79 -10.5%
4 Oroco Res OCO.v 2.04 203.4 164.75 0.81 -60.3%
5 Nevada Copper NCU.to 0.71 448.437 105.38 0.235 -66.9%
6 Aldebaran Res. ALDE.v 0.84 138.401 94.11 0.68 -19.0%
7 Regulus Res. REG.v 1.06 101.85 92.68 0.91 -14.2%
8 Hot Chili HCH.v 1.53 109.223 91.75 0.84 -45.1%
9 Meridian Min MNO.to 1.18 153.735 61.49 0.40 -66.1%
10 C3 Metals CCCM.v 0.16 645.379 38.72 0.06 -62.5%
11 Kutcho Copper KC.v 0.88 103.94 22.87 0.22 -75.0%
12 QC Copper QCCU.v 0.34 129.06 21.94 0.17 -50.0%
13 Doré Copper DCMC.v 0.79 66.123 19.84 0.30 -62.0%
14 Element 29 Res ECU.v 0.58 79.24 19.81 0.25 -56.9%
15 Coast Copper COCO.v 0.13 41.335 2.27 0.055 -57.7%
NB: All stocks in CAD$ Portfolio avg -46.73%
To the surprise of many (your truly included) The The Copper Basket 2022, weekly evolution
10%
Copper Basket returns a net win on the week
0%
despite the poor general performance in mining
-10%
world, thanks to the five winners (CMMC.to,
-20%
ALDE.v, REG.v, HCH.v, CCCM.v) and three
-30%
unchanged stocks (WRN.to, QCCU.v, COCO.v),
which were enough to counter the seven losers -40%
(OCO.v, MARI.to, NCU.to, MNO.to, KC.v, DCMC.v, -50%
ECU.v) and finish with an overall average up half a -60%
point. That’s mostly due to the biggest winner in
percentage terms C3 Metals (CCCM.v up 50.0%),
which sounds impressive but is only2c and still
means the stock is down 62.5% on the year, such is the way of pennystocks. To the downside,
the biggest loser was Element 29 (ECU.v
down 10.7%).
While all around it faded and drooped,
copper-the-metal put in a quiet and steady
week, with most of the trading in a tight 5c
range between U$3.40/lb and U$3.45/lb on
the most traded near-term futures contract,
that of Comex December.
It was another week in which the more
11
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 ht52 n2tco ht9 ht61
source: IKN calcs

bearish pure market and financial forces predicting recession and global slowdown faced real
world copper demand and end-users complaints of a lack of physical supply, the two sides
fought to a tie and will likely resume the tussle next week.
The latest spanner in the works is Russian copper, in fact a surfeit of the stuff that has started
hanging around European warehouses if this Reuters report (6) entitled “Russian copper builds
up in LME warehouses – sources” is to be believed (gotta love the ones that tack “hyphen
sources” onto the end of the titles lines):
LONDON, Oct 12 (Reuters) - Significant volumes of unwanted Russian-origin copper
have been deposited in London Metal Exchange approved warehouses in Germany,
the Netherlands and Taiwan since the middle of September, two sources familiar with
the matter said.
Western countries imposed sanctions on Russian banks and wealthy individuals
connected to President Vladimir Putin after Russia invaded Ukraine, in what Moscow
calls a "special military operation", but so far there are no restrictions on its metals.
Despite this, several industry sources have told Reuters that some consumers have
been rejecting Russian copper, which is being delivered to warehouses connected to
the LME, effectively a market of last resort for producers and consumers.
"Many consumers, not all, don't want Russian copper," one of the sources familiar with
the matter said, adding: "Either they are self-sanctioning or their customers are saying
they don't want Russian copper in their products".
Russia produced 920,000 tonnes of refined copper last year, about 3.5% of the world
total, according to the U.S. Geological Survey. Copper is used in the power and
construction industries.
Since Sept. 15, copper stocks in LME warehouses in Rotterdam , Hamburg and
Kaohsiung at 14,800 tonnes, 24,825 tonnes and 22,800 tonnes have climbed 225%,
153% and 26% respectively, LME data shows.
Reuters could not establish which companies own the copper which has been
deposited in LME warehouses.
Sounds reasonable and with reports that over 60% of the copper stored in London Metal
Exchange (LME) warehouses at the end of September was produced in Russia (7), it has the
potential to shrink real world supply at a key moment in world trade. What’s more, news or real
world consequences from this atypical inventory build showed up just 24 hours later (8):
LONDON, Oct 13 (Reuters) - Chile's Codelco, the world's biggest copper miner, is
offering to sell copper to European buyers at a record high premium around $235 a
tonne for 2023, a rise of 85% from 2022, two sources familiar with the matter said.
The premiums set by state-owned Codelco for physical delivery of copper, paid on top
of the London Metal Exchange contract, are seen as a benchmark for global contracts.
Codelco in London declined to comment.
"Many European consumers don't want Russian copper, they have to look elsewhere,"
one of the sources said. "The copper market is tight and self-sanctioning is making for
tricky negotiations in Europe."
Industry sources say consumers shunning metal from Russia is part of the reason for
the boost in demand for metal from other sources.
Russia in 2021 supplied the European Union with nearly 292,000 tonnes of copper,
according to data from Trade Data Monitor, which showed EU copper imports totalling
more than 801,000 tonnes last year.
Europe's biggest copper smelter Aurubis will charge its European customers a
premium of $228 per tonne above the benchmark London Metal Exchange (LME) price
in 2023, the company said on Thursday. That is sharply up from a premium of $123 a
tonne in 2022.
Montanwerke Brixlegg is offering customers a 295 euro per tonne premium for its low
carbon copper for next year and a floating surcharge for high energy costs, a letter
from the Austrian company to its customers showed last month.
This story got plenty of traction in the sector, with Reuters’ base metals commentator Andy
Home picking up the baton in this report (9) that goes into the story and several of its angles in
the usual comprehensive way of Mr. Home. This time, however, we can offer a small excerpt to
give the general flavour of his argument:
Terms for next year's Asian shipments haven't yet been announced but it will be
interesting to see if producers dare lift premiums by 85% as they have done in Europe.
Just as Aurubis and Codelco aim to grab market share in Europe by replacing Russian
12

metal, they risk losing market share in Asia if large amounts of Russian copper are
displaced from the European market.
The sharp hike in next year's European premiums says much about the cost of
refusing Russian metal. Premiums in Asia will say much about the price of that metal in
the rest of the world.
Quoting the planned Aurubis surcharge (and the minor Montanwerke Brixlegg benchmark in
what is a more specialist market) gives context to the Codelco decision and this chart shows
how the 2023 premium sits next to
those already in the books (right). At
Codelco: European copper premium, per tonne
this point, we note that this year 2022
was originally set at U$128/mt by
Codelco at this time last year, but the
Chileans eventually dropped the price
by U$5/mt to bring their premium into
line with that of Aurubis. That also
means the proposed U$235/mt
premium for next year isn’t set in stone
yet, but even if it drops a few
percentage points we’re looking at a
very significant surcharge and that’s
wholly due to real market factors.
The difference between the 2022 and 2023 surcharge works out to around 5c/lb Cu and is a
way for producers to circumvent at least some of the market volatility and lock in revenues for
their wares. However, the signal it sends to the futures and spot market is more important than
its 5c weighting and an indicator of whether stagflation is taking hold.
Now for our regular weekly inventories check, with data from Chile’s Cochilco and a significant
move in tonnages that also plays right into this week’s Russian Copper narrative.
 The public holiday in China is over and with it came a biog move in the overall world
inventory levels, up 32,835 metric tonnes (mt) to close at 247,379mt.
 All the headline action was at the SHFE, which saw stocks more than double to move
from 30,459mt to this weekend’s 63,746mt, a difference of 33,287mt. That’s the first
time we’ve have an tonnage dump on the SHFE since the normal seasonal re-stocking
at the start of the year and is unusual in its timing. It’s certainly welcome news for end-
users looking to secure necessary supply by the end of the year in their typical buying
cycle. As for where those tonnes come from the LME may have clues.
 At the LME, total inventory rose by a small
1,875mt to 145,650mt, which is no big deal
in itself, but the sudden and very sharp rise
in cancelled warrants to 46,800mt means
nearly 40kmt was earmarked to leave
warehouses in the space of five days and looks suspiciously similar to the rise in
reported tonnage at the SHFE. Could this
be a large swathe of “Russian Copper”
leaving the LME system (where it can’t find
a buyer) and moving to China where end-
users are less fussy? Along with the wire
reports this week, it all seems to point in the same direction.
 Meanwhile at the Comex, stocks dropped by a fairly chunky 2,327mt to close at
37,983mt.
The far right of the first dedicated SHFE chart shows the small spike (compared to historical
numbers) caused by the 33kmt influx of copper to its warehouses.
13
88 89 89
821 321
532
U$/mt
250
200
150
100
50
0
2018 2019 2020 2021 2022 2023
source: Reuters, Bloomberg
LME: Cu tonnage under cancelled warrant
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 0588 0018 5786
00864
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 ht52 dn2tco ht9 ht61
mt Cu
source: Cochilco

Shanghai Futures Exchange Warehouse Stocks, 2014 to date
400000
350000
300000
250000
200000
150000
100000
50000
0
14
31'13ceD dr32 ht02 ht51 ht01 ht5tco ht03 ht52 dn22 ht71 ht21 ht6pes ts1von 5102ht72ced ts12 ht71 ht21 ht7guA dn2tcO ht4ceD ht92 ht62 ts12 ht61 ht01 7102
ht5von
ts13 ht52 dn22 ht42 ht91 ht41 ht9 9102
dr3bef
ts13 ht62 ts12 ht51 ht01 0202ht5naj 0202ts1ram ht62 ts12 ht61 ht11 0202ht6ced ts13 ht82 dr32 ht81 ht21 ht7 2202dn2naj ht72 ht42 ht91 ht41 ht9
Mt Cu
|
source: Cochilco
The second chart shows that with this tonnage arrival, for the first time in a very long time its
2022 stocks are in better shape than the same period of last year. We now get to see whether
this newly arrived copper gets snapped up by Pearl River factories.
SHFE copper inventory levels, 2018 to 2022
400000
350000
300000
250000
200000
150000
100000
50000
0
1 2 3 4 5 6 7 8 9 01 11 21 31 41 51 61 71 81 91 02 12 22 32 42 52 62 72 82 92 03 13 23 33 43 53 63 73 83 93 04 14 24 34 44 54 64 74 84 94 05 15 25
MT Cu 2022
2021
2020
2019
2018
source: Cochilco data
Now for of notes on a selection of our basket stocks:
Copper Mountain (CMMC.to): One of the more interesting potential earnings reports in the
juniors 3q22 crop was confirmed for pre-open Wednesday on 9th November, slightly later in the
calendar than its normal timing but that may be because of the change in CFO. There’s a
ConfCall the same morning at 7:30am Vancouver time, the details on this link (10). With the
organizational changes, the mine plan now in place and the sale of Eva now happening, if
CMMC can return a better quarter and guide strongly this could be a springer in the market.
However and as noted in last week’s note “Copper Mountain (CMMC.to): Two reasons to buy
and two reasons to pass”, I’m leery on placing too much trust in this company at the moment,
there have been too many missed guidances and unpleasant surprises in the last 12 months. All
the corporate planning and good will in the world cannot paper over production numbers, so
personally I will be filtering out the noise and looking intently at the three things that matter.
Grade, tonnage, recovery.
Regulus Resources (REG.v): REG rose last week on news (11) of a non-dilutive capital raise,
the company going back to Osisko Gold Royalties (OGR) and selling them NSRs on specific
blocks of the AntaKori project for percentages ranging between 0.125% to 1.5%. The deal gets
them enough working capital to make it to the point where Buenaventura (Coimolache) pays
them the U$9m clawback on the JV properties and keeps the share count tight, which is good.
Also in last week’s NR, the company announced “short-term loan agreements with certain
directors and officers for approximately US$500,000.” That gives an idea of how low coffers
must have been getting, this has all the look of tide-over money until the OGR deal fully closes.
The other aspect of the deal is to bring a large sponsor such as Roosen further into the deal,
presumably to create “competitive tension” with the Benavides family. Not going to happen and

unlikely to shift Gold Fields (GFI) from its intentions to leave the zone either. Sorry.
Element 29 (ECU.v): After recently presuming further delays to the 2022 work program, I
stand corrected. Last week ECU announced (12) the start of a small 2,000m drill campaign at
Elida, its interesting and promising copper project in North Peru. However, the details of this
phase…
 Test for extensions of identified higher-grade mineralization internal to the Zone 1 deposit,
specifically where a near surface, higher-grade subset of the Mineral Resource consisting of 34.1
million inferred tonnes at 0.55% copper, 0.037% molybdenum, and 4.4 g/t silver (at a cut-off
grade of 0.45% copper) was highlighted and has potential to
be mined with minimal stripping in the initial years of mining;
and
 Undertake an initial test of Zone 2 where veined and leached
porphyry is exposed.
…are a little frustrating for an observer looking for a company
to test and possibly uncover the greater potential of the
project, as most of the holes are going into the already-tested
Zone 1. Our hopes of something substantially different to the
low-grades from that area rest with (what looks like) a scout
program on Zone 2 of Elida. The issue in general terms can be
summed up with a glance at the project map, as there’s a lot
to test and work on at Elida in five separate zones. I for one
would like the company to have taken a less conservative
approach, but I suppose that permitting must have been
another factor in consideration. In trading, ECU dropped away
from the 30c line on mediocre volumes, which isn’t great.
Coast Copper (COCO.v): Our tinycap representative of The
Copper Basket this year has quietly died its own death after getting mediocre returns from the
drill rig at the Empire Mine project on Vancouver Island, BC Ca. However, we should give props
to company CEO Adam Travis for putting his money where his mouth because according to a
SEDAR filing last week, Travis took down 1.26m units of the recent 8m unit private placement.
The placement was priced at 5c, with a unit = share + full warrant at 10c with a two year shelf
life, and brought $400k of gross proceeds into the company, enough to see it through the end-
year audit and hopefully to better days in 2023. At closing, CEO Travis now owns 5.946m
shares and 1.26m warrants, as well as 900k incentive options (long out the money) and the
filing was regulatory, as it puts his total ownership to 12.25% on a partially diluted basis.
The Producer Basket
After forty-one weeks of 2022, the Producer Basket shows a loss of 25.99% to level stakes:
company ticker price 1/1/22 Shares out MktCap(U$Bn) current pps gain/loss%
1 Newmont NEM 62.02 797.44 32.49 40.74 -34.3%
2 Barrick GOLD 19.00 1779 25.19 14.16 -25.5%
3 Franco-Nevada FNV 138.29 191.192 22.02 115.16 -16.7%
4 Agnico Eagle AEM 53.14 454.904 18.25 40.12 -24.5%
5 Wheaton PM WPM 42.93 450.3 13.82 30.70 -28.5%
6 Gold Fields GFI 10.99 887.72 6.76 7.61 -30.8%
7 Kinross Gold KGC 5.81 1296.5 4.34 3.35 -42.3%
8 B2Gold BTG 3.93 1055.6 3.08 2.92 -25.7%
9 Alamos Gold AGI 7.69 392.503 2.83 7.22 -6.1%
10 Sandstorm SAND 6.20 223.79 1.03 4.62 -25.5%
All prices and stock quotes in U$ Port. avg -25.99%
15

Producers were sent to the woodshed last week, caught in the crossfire of the CPI reading
Thursday morning that bumped the broad markets and gold down by around 2% at the open.
The magnification effect saw GDX down 6% or so and from that point, the week was lost even
as the US broad markets put in a (rather dubious) Thursday rally. Friday reaffirmed the
negative sentiment, GLD closed the week down by 3.1%, that nice Mr. Market increasingly
assumes world recession, the quants decided gold mining company margins would be crimped
from either side and the result was GDX down 6.8% on the week. The pain was fully reflected
by the performance of the ten companies in our 2022 Producer Basket, all ten were losers from
the least worst (FNV down 4.2%, NEM down 4.4%) to the most worst(?) (GFI down 11.2%,
KGC down 10.4%). In fact we did slightly worse than the GDX, thanks to our equal-weighting
exposure to the smaller market cappers. It is the way it is.
The 2022 Producer Basket: Weekly performance and
40% comparative to GDX control
30%
20%
10%
0%
-10%
-20%
-30%
-40%
Barrick Gold (GOLD) (ABX.to): Three negatives from Barrick last week, all around its 3q22
production NR out Thursday morning (13). The
company put on a brave face, running with the title line
“Strong year-to-date copper performance and higher
gold grades in Q4 expected to drive delivery of 2022
production guidance”. And indeed as this chart (right)
shows, the preliminary total of 123m lbs Cu sales stacks
up well against recent quarters.
But GOLD isn’t a copper miner and this chart shows the
continued low-end returns for gold ounces with total
production in the quarter of 988k oz Au and sales (seen
here) of 997k oz Au.
Barrick (GOLD): Segment sales, per qtr Nevada GM Loulo-Gounkoto
Pueblo Viejo Kibali
source: company filings
North Mara Veladero
Bulyanhulu Tongon
Hemlo Buzwagi
Au Koz
Porgera
1300
1200
1100
1000
900
800
700
600
500
400
300
200
100
0
1q20 2q20 3q20 4q20 1q21 2q21 3q21 4q21 1q22 2q22 3q22
Most concerning is the continued low output from Nevada Gold Mines (NGM), something to take
into consideration for the Newmont (NEM) 3q22 results day (they don’t pre-announce
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 dr3luj ht01 ht71 ht42 ts13 ht7 ht41 ts12 ht82 t4pes ht11 ht81 ht52 n2tco ht9 ht61
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 ht52 n2tco ht9 ht61
source: IKN calcs, NYSE data
Barrick Copper sales, per qtr
011 321 611 801 311 69 101 311 311 311 321
Cu Mlbs
150
125
100
75
50
25
0
1q202q203q204q201q212q213q214q211q222q223q22
source: company filings

production any longer).
The second negative is the company’s guidance on costs and to quote the NR, “All-in sustaining
costs (AISC) for gold, a key industry metric, is expected to be 3% to 5% higher in the third
quarter than the second…” and as Q2 was higher compared to Q1, cost creep is now showing
its face at GOLD. Or in the words of mining dot com (14):
Barrick Gold Corp on Thursday said it expects full-year gold production to be at the
lower end of the range it forecast earlier and reported a fall in third-quarter preliminary
output from the second quarter.
The world’s second-largest gold miner warned in August it could exceed its gold
production cost guidance as miners battle with inflation and rising costs of labor,
energy and mining supplies.
The final negative is one out of the company’s hands, namely the timing of the NR. Barrick was
unlucky to have chosen Thursday morning for
its announcement and the negative numbers
were timed with a general gold producer sell-off
on the back of that CPI reading (and with the
new costs guidance, high inflation wouldn’t
have come as a surprise to Messrs Bristow and
Thornton). Here’s the five-day chart that shows
how gold got hit, GDX got whacked and Barrick
was hit even harder than the average due to its
slightly disappointing production for Q3.
But hey, there’s always that copper.
The TinyCaps List
After forty-one weeks of 2022, the TinyCaps show a loss of 40.64% 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 4.13 0.09 -62.5%
Golden Pursuit GDP.v 0.13 34.638 5.02 0.145 11.5%
Infield Min INFD.v 0.06 48.445 1.21 0.025 -58.3%
Kingfisher Met KFR.v 0.30 103.007 17.51 0.17 -43.3%
Latin Metals LMS.v 0.12 57.686 5.77 0.10 -16.7%
Manitou Gold MTU.v 0.06 344.57 10.34 0.03 -50.0%
Melkior Res MKR.v 0.295 24.011 5.40 0.225 -23.7%
Precipitate Gold PRG.v 0.105 129.322 7.76 0.06 -42.9%
Signature Res SGU.v 0.07 238.4 3.58 0.015 -78.6%
Winshear Gold WINS.v 0.08 61.585 3.08 0.05 -37.5%
Prices in CAD$, data from TSXV basket avg -40.64%
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
17

choosy, but still I preferred companies that have
15% TinyCaps, 2022 weekly tracker
teams or people with good peer reputations. 10%
5%
The TinyCaps list reached another new 52 week 0%
-5%
low this week, despite having three week-over-
-10%
week winners (AUL.v, GDP.v, WINS.v) and three -15%
-20%
other unchanged stocks (LMS.v, PRG.v, SGU.v).
-25%
The four losers (INFD.v, KFR.v, MTU.v, MKR.v) -30%
-35%
were enough to make the difference and the
-40%
losses were led by Infield (INFD.v down 28.6%). -45%
Infield Minerals (INFD.v): Down 28.6% last
week on no news, this chart is what an illiquid
tinycap does in bear markets. Even a relatively small
holding is trapped with no reasonable way out, your
topical example the person or people who liquidated
186k shares (including a single block of 125k shares)
on Friday, who were offered two choices: “2.5c, take it
or leave it buster.” And be clear, 125k shares sounds
like a lot but at these prices, it’s a trade of C$3,125
(ex commish).
Kingfisher Metals (KFR.v): Down 10.5% on the
week and it could have been a lot worse, but at least
this stock does some modest daily volume and found
enough to bounce back from its NR day lows. We got
the results of six holes from KFR’s program of 27 total at Cloud Drifter in this NR on Thursday
October 13th (15), with the two best cuts featured in the title line “Kingfisher Intersects 2.86 g/t
Au over 40 m and 58.88 g/t Au over 1 m at Cloud Drifter Trend.”. Those are from two separate
holes and of the two, the 40m of 2.86 g/t Au is on the right track. We’ll get more results from
other holes going forward but if we assume KFR put its best foot forward last week, there’s not
going to be enough mineralization length considering
the location and 40m isn’t enough to make a difference
(or a mine). This ten day hourlies chart (right) shows
that somebody somewhere was in a hurry to sell their
10,000 shares the day before the NR hit, perhaps a bit
of a leaky boat as the stock traded almost as low and
stayed at 15c on more volume on the day of the
release. It then got propped back to 17c on Friday and
while KFR still has a big target and money to spend on
it, so far at least it hasn’t managed to deliver anything
close to the original potential of that Goldrange
represented a couple of years ago.
KFR is unlikely to make the TinyCaps list for 2023. They say the worst thing you can do to a
project is to drill it…
Aurelius Minerals (AUL.v): AUL was up a penny on the week on low and bucked the sector
trend. The volume was nothing but the company also got good news when announcing
Thursday (16) that they’d come to a refi deal with main creditor Sprott Resource Lending,
swapping U$7.2m in deferred payments for a 0.6% NSR on the main Aureus East project. CEO
Mark Ashcroft put it succinctly in the CEO comments with, “The issuance of the 0.6% NSR to
Sprott eliminates the need to allocate capital against future deferred payments and reduces this
potential burden on the Company.” All fair enough.
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.
18
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 ht52 dn2tco ht9 ht61
source: IKN calcs, TSX data

Regional politics
Ecuador: Indigenous groups and their de-facto mining project veto
The 90-day negotiation period, between the government and Ecuador and the indigenous
protest groups that lead the protests earlier this year, ended last week and the nine separate
working groups have reportedly made over 150 agreements during the talks. The issues are
wide ranging and differ in importance but the sheer quantity of heads-up agreements between
the government and the social groups, led by the big CONAIE indigenous umbrella group and
its leader Leonidas Iza (along with smaller social and indigenous rights movement groups such
as FEINE and FENOCIN) is a measure of the seriousness in which both sides took the talks.
That’s a good start for Ecuador and will likely help President Guillermo Lasso retain control (and
not lose his job) as will the upcoming referendum on a series of questions programmed for
early next year which according to polls will see all his (rather general) questions approved.
However, our subject of interest is mining and on this, the government seems to have
conceded far more than I for one was expecting it to. Again, this move will likely assuage
protests in the near future but on the other hand, is going to make permitting and approval for
mining projects in the country more difficult for companies to achieve.
To details and two reports on the agreements made regarding the mining and hydrocarbons
sectors and their impact on indigenous communities and territories are the most insightful this
desk has read, so you get a couple of extracts from them starting with a translation of the
agreements that matter for the mining sector from this note (17):
The “Technical Evaluation Working Group” (mesa técnica de evaluación) will have
legal power of decision and will review environmental permits, hydrocarbons contracts
and mining concessions that have been awarded. As from October 17th 2022 this
working group will enjoy legal faculties and control that is not given (another body)
even under the constitution. It will be made up by representatives of CONAIE, FEINE,
FENOCIN, ministers from the energy sector, the judiciary and judicial councils from the
Interamerican Court of Rights and from the United Nations.
The working group will also …be able to veto large-scale mining projects and prevent
others that are about to move to construction phase at mines such as Loma Larga, La
Plata and Curipamba.
A moratorium on new mining and hydrocarbons activities is to be established for a
period of at least 12 months, or until a new law regarding “free and informed prior
consultancy” for communities is established. In order to formulate this new law, a
separate working group will be created as from October 25th 2022 that includes the
participation of all social movements
The same report quotes the right-wing economist and presenter of an Ecuador Biz TV show
“Weekly Report” (Informe Semanal), Alberto Acosta Burneo (no relation to the left-wing ex-ally
of Rafael Correa Alberto Acosta, nor any relation to Peru’s new FinMin Kurt Burneo), who says
that parallel government has been set up. In his words:
“CONAIE has achieved the formation of a “Technical Evaluation Working Group”
(mesa técnica de evaluación) with power of legal decision to review environmental
permits, hydrocarbons contracts and mining contracts among others. As from now,
they will have to ask permission from (Leonidas) Iza to be able to invest in the country.
It doesn’t matter that at the voting booths over 50% of voters approved of a
government plan to double hydrocarbons production, now CONAIE has forced them to
change this policy.”
From the second report chosen (18) this (translated) explanation that covers several aspects of
the agreements between government and CONAIE/other social groups dedicates a paragraph
how the working groups covering the mining sector get wide-ranging powers over concessions
and projects:
The parallel government shows in its crudest form via the agreement to create a
“Technical Evaluation Working Group” that will apparently have legal power of decision
and will revise environmental permits, oil company contracts and mining concessions
that have already been awarded (to the companies). This working group, set to begin
on October 17th will have legal jurisdiction and control that is not given by any other
law of the country, not even in the Constitution. The working group will be made up of a
19

representative of CONAIE, one from FEINE and one from FENOCIN, by the relevant
governmental ministries in each area, the country’s judiciary, the United Nations and
the Interamerican Court of Justice. A type of Super-Legal and Super-State authority.”
All this starts as from tomorrow and while the Ecuador national government forms part of these
new committees, it’s difficult to image a worse bureaucratic nightmare for the mining industry
in Ecuador today. At the very least, everything in the country that’s not already a working mine
will now be put on ice for at least one year. In the public large-scale realm, that means Mirador
Copper (Chinese capitals ECSA) and Fruta del Norte (Lundin Gold (LUG.to)) probably get to
carry on as normal while everything else at exploration/development stage is stopped.
Argentina: San Juan flexes its mining-friendly credentials
On October 12th and 13th last week, the Argentine province of San Juan held the third edition
of its “San Juan Tierra Minera” (San Juan Mining Land) conference, in conjunction with the
ninth edition of its International Mining Development Exposition trade show (19) (20). The top
table at the event included San Juan Governor Sergio Uñac and his provincial government
team, along with the country’s Mining Secretary, Fernanda Avila,
As for a sound bite, provincial Governor Uñac told those present that the province was pro-
mining, its government is pro-mining and his position was that he wants to offer the next
generation an opportunity to advance without having to leave the province and go live in
Buenos Aires (or abroad), noting that the mining sector had created just under a thousand new
direct full-time jobs in the province during 2022. As for national mining secretary Fernanda
Ávila, she said this (translated):
“…today San Juan is an example at the regional, national and international level for its
mining development. This is due to the way it looks toward the future. Mining promotes
development and growth in other industries and other productive activities.”
According to the organizers (21), over 10,000 people attended the event over its two (and a
half, there were minor events on the 14th) days and that’s an impressive number for a regional
mining event. Among guests of honour were speakers Mark Bristow of Barrick (GOLD) on Day
One, with other slots taken by company reps from Filo Mining, and other companies with major
project in the San Juan province, while Day Two included a round-table discussion that included
John Black in his role of CEO of Aldebarán Resources (ALDE.v), owner of the San Juan located
Altar deposit. For a quote from the entrepreneurial end of the spectrum we’ll leave it to Mark
Meding, head of McEwen Copper and veep at McEwen Mining (MUX), who told the audience
(translated) the difference between the terms “San Juan” and “Argentina” when talking to FDI:
“When I talk with potential investors, more or less half of my time is explaining how
Argentina works, how San Juan works and the long-term support that one receives
(from the province of San Juan) for the development of mining projects….San Juan is
a place where mining and business can be done.”
Brazil: Lula leads the polls
We’re just two weeks away from the run-off vote in Brazil and on Friday, a big Datafolha survey
called it this way (22):
 Overall: Lula 49%, Bolsonaro 44%
 Valid Votes: Lula 53%, Bolsonaro 47%
The second line is probable the most important and with a lot on the line for Datafolha to get
its survey right after the debacle of round one, it would be a major scandal for Brazil (and
extremely bad for business for the newspaper) if that six point gap turns out to be wrong
enough to see Jair Bolsonaro winning. It shouldn’t come as much surprise by now to find out
that the incumbent President immediately went on the offensive against these latest poll
numbers (which, for the record, are largely in line with other pollsters), calling them Fake News
(23) and alleging that Datafolha had drummed up a three million votes out of nothing.
For what it’s worth, the details in the survey show some of the breakdown on demographic
lines:
20

 Those who earn up to two average salaries per month: Lula 58% (up from 54%),
Bolsonaro 36% (down from 37%)
 Those who earn between 2X and 5X the average salary per month: Lula 41%,
Bolsonaro 53%
 Those who earn between 5X and 10X the average salary per month: Lula 40%,
Bolsonaro 52%
 Those who more than 10X the average salary per month: Lula 39%, Bolsonaro 53%
The inference is clear here, that Lula’s message works best among the poorest sectors of
Brazilian society and it’s notable that as soon as we get above wage earners 2X the average
and more, Bolsonaro holds a clear advantage. I’ve added the swing since Datafolha’s last
survey in just one of the lines, as Lula and his PT Party’s second round strategy of reaching out
to the poor and making an extra effort in the Favela/working class zones of Brazil seems to be
paying off.
Summing up: No change to the overall call and for what it’s worth, betting houses in Brazil now
call the race around 80% Lula, 20% Bolsonaro. We should however keep in mind that President
Bolsonaro has for many months threatened to “do a Trump” and refuse to recognize the result
by claiming a rigged vote. Time will tell.
Colombia: No more concessions or contracts
Before getting to the main point, please recall Colombia lumps O&G and hard-rock mining
under the same “mining” umbrella. This is why they were used under the same breath over the
last seven days in a ping-pong, media level debate on the subject of hydrocarbons contracts
and mining concessions in the country.
It began last weekend when the Vice-Minister of Mines and Energy, one Belizza Ruiz (another
arch environmentalist) stated there would be no more new contracts for “mining exploration
and production”. Her statement was referring to the hydrocarbons industry in general, as the
question and the context were O&G, but her comments apply equally to hard rock mining. At
that point the Finance Minister José Antonio Ocampo butted in (via Twitter) and said something
along the lines of “I don’t want to contradict my colleague, but a decision on that (the non-
awarding of licences/contracts) has not yet been made.” Clearly he’s worried more about the
hole such a policy decision would make in the country’s coffers, but he didn’t need to wait long
before getting an acid reply from Vice-Minister of Mines and Energy Ruiz, “There will be no
more exploration or production of hydrocarbons. I don't know what part of this sentence wasn't
understood.”
There followed a mini-drama that played out in public on the aspects of the decision, including
the (nationally famous) biologist Brigitte Baptiste (24) who came down on the pro-business/pro-
mining side of the argument by claiming that the industries were not a threat to the biosphere
(debatable) and that cutting back on their development would be worse for Colombia’s
ecosystems in the long-term than promoting them (strong agreement from this desk).
The debate came to a head when the Minister of Mines and Energy, Irene Vélez, was
interviewed on a national news radio station (25) and confirmed that “There will be no more
exploration or production contracts”, adding that, "It's not a sudden decision, it's a decision
based one the fact that we already have 117 exploration contracts open.”
So now you know. And avoid Colombia’s mining sector, please.
Market Watching
A webinar this week
There always seems to be a webinar or virtual conference for the junior or senior mining
industries going on these days, most don’t get a mention on these pages but this one will. This
coming week from Tuesday October 18th to Thursday 20th Virtual Investor Conferences (VIC)
21

is running a Battery & Precious Metals Conference at which around 30 companies are getting
half hour presentation slots and some decent companies with interesting stories on show,
including the house Top Pick Minera Alamos (MAI.v), but that show is only one of six for which
I’ve already reserved my virtual seat. Here’s the link (26), you can scroll the entire list of
presenting companies to see if something tickles your fancy and if it does, it’s a free sign-up.
More impressive Abrasilver (ABRA.v) drill assays
Subject of the main fundies note two weeks ago in IKN698, “Revisiting Abrasilver Resource
Corp (ABRA.v) (ABBRF)”, Wednesday October 12th saw more news and two more strong holes
from the new phase three program at Diablillos in Salta/Cajamarca, Argentina (27). Here’s the
results table…
…that shows how hole 046 hit some potentially useful
lower grade in the higher levels before getting to its
main event 42.5m of 400.5 g/t silver, while hole 044
cut 58m of 208.8 g/t Ag from a similar depth, before
hitting some potentially intriguing high grade sulphide
a little further down. Good assays, but as in real estate
what matters is location, location, location and here
(map right) is the reason ABRA gets update space
today. This week’s assays come from the Southwest
Oculto area and this plan view from the NR gives the
location of the holes, along strike and south-west
(duh) of the main resource zone.
This next visual (below) gives a sectional view of the
deposit, is Slide 10 from the ABRA September 2022
presentation with some of my own red ink added and
for me is the most instructive way of considering these
new numbers.
22

As you can hopefully gather, last weeks’ holes 044 and 046 have largely confirmed the
company’s geological theory of the target as a significant expansion for the overall resource and
even more importantly, a natural extension of the open pit mine footprint. The location also
helps to open up the deeper “Tesoro Zone” of Oculto where the highest grade hits have come
from (many of them straight oxide, please recall). Of the two holes, 044 largely matches the
three previous holes in this zone as seen in the top-left of the visual (005, 045, 068) while 046
not only offers shallow mineralization of the type seen in the main Oculto region, but also much
higher grades at the target depth.
As for trading in ABRA, it was so apathetic on the back of these strong results that I put a post
together on the open blog (28), with the main argument summed up in the last two lines,
“…after the drill results ABRA has returned in 2022
if this can’t catch a bid, nothing can. No stock can 24 ABRA.v: Working Capital per qtr
better explain why I haven’t been a buyer of 22
20
anything for the last few months.” What’s more,
18
after that post things got worse rather than better 16
14
and along with the general depression seen in the 12
market on Friday (and silver got extra sauce that 10
8
day), the stock closed at 39c. That puts the market 6
4
cap on C$193m (approx U$150m) and if my hunch 2
is right about the resource update coming at the 0
-2
end of this year, in which we should expect both
tonnage and overall grade to significantly increase
(a rare combo indeed), that price is going to look
cheap. As for cash (which is virtually the same as
working cap), we’ve noted that the expanded drill
program this year has accelerated the burn rate but
this is still an efficient company and will be able to
pick its spot to replenish in 2023.
Assuming, of course, you can trust the silver market
to stop selling down the metal. That’s one big
caveat as we all should know by now, which is of
course why I’m a watcher rather than a buyer of
ABRA for the time being. It was cheap, it’s now
cheaper still but we’re now in the type of market
scenario that may offer crazycheap at some point.
ATAC Resources (ATC.v): BC and an extra arrow in its quiver
The reason ATAC Resources (ATC.v) came up on the radar and with
enough substance to make a full note in the mina fundies section
recently is its main and large Rackla Gold property in Canada’’s Yukon,
as its defined resource and exploration upside potential combined with
the company’s low market cap provides an interesting way of leveraging
the recent success seen at the now rather expensive Snowline Gold
(SGD.cse). With SGD hitting another strong drill assay last week (and
we can talk about that one if you like, but I’m going to be cynical and
cruel and call it “a necessary infill”
However, the company has other projects under its control and on of
those is the PIL project in northern BC Canada (see staggered map
right), on which it has a five year deal to option in to a maximum of
70% with its privco owner (Finlay) by making standard-style staged
payments in cash and shares, as well as completing a minimum work
program.
The company reported the last results from the second phase of its
23
81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 tse22q3 tse22q4
source company filings
srallod
fo
snoillim

2022 program last week (29) under the eye-catching title line “ATAC Samples 18.40% Copper
and 78.30 g/t Gold at its PIL Property, Toodoggone, British Columbia” with that 18.4% Cu
return a float sample from one of the outlaying areas of the property that’s seen the least
amount of prospecting to date. A better look at the NR (not going to pad out the edition here,
please click through) will give the idea of how big and target-rich this property is and the CEO
comments…
“This initial program at PIL has defined a number of priority targets for follow-up work,”
stated ATAC’s president and CEO, Graham Downs. “Sampling at Spruce returned the
highest copper grades ever collected on the property. The Atlas target shows strong
potential for high grade epithermal gold-silver mineralization. PIL South has an
extensive copper-in-soil response that is now coupled with strong copper
mineralization in outcrop samples. We’re very pleased with our initial work at PIL and
anticipate receiving a 3-year Notice of Work later this fall, which will allow us to ramp
up work to drilling in future seasons.”
…suggest that next year will about target definition for an eventual drill program. So it’s early
days at this project but as it’s right in the wheelhouse of a pure geo-exploreco company such as
ATC, it promises to be a source of interesting newsflow next year. This company also has
enough corporate treasury to do what it wants in the next six to eight quarters without needing
to tap this horrid market for juniors.
In trading ATC managed to bounce back from
the recent 7.5c and 8c lows, which was the
lowest price since the Lehman Crisis and
definitely the lowest since ATC ran on its Rackla
Gold discovery in 2010 and 2011). For those of
you looking to nibble at cheap stocks in the
current washout climate, that would be the price
to consider if it shows again.
Marimaca Copper (MARI.to): We have
questions
This note was originally slated for the Copper Basket section of today’s edition, but as the need
to go into at least some detail grew, it ended up down here. The morning of Thursday October
13th saw Marimaca Copper (MARI.to) release its “…updated Mineral Resource Estimate (“MRE”)
for the Marimaca Oxide Deposit (the “MOD” or the “Project”) located in the Antofagasta region
of northern Chile” (30). Here’s how MARI presented the headline data:
 98% increase in M&I Resource tonnes to 140Mt at 0.48% CuT for 665.5kt of Contained Copper
 92% growth in Inferred Resource tonnes to 83Mt at 0.39% CuT for 322.9kt of Contained Copper
 Marimaca Confirmed as One of the Largest Copper Discoveries in the Last Decade
There was plenty of bullish and upbeat script in the NR (as you’d expect), with the CEO making
plenty of the resource size all-but doubling At first read-through the numbers looked solid and
the market seemed to agree, as these two price charts indicate. Below left is a three-month
chart comparing MARI to the main copper producers’ ETF (COPX) and while trading has been
choppy, since mid-September the stock has managed to beat peers handily. Then below right is
the ten-day hourlies chart that shows a little of that choppiness in close-up, but also how the
price reacted positively to the MRE NR on Thursday, albeit on continued low volume.
24

However, as I started to look more closely more than a few doubts started to creep in and as
this is The IKN Weekly, it’s the right place to be critical of what was presented as a “near
doubling” of resource to the casual observer. We begin by considering what the resource count
looked like until last week, via this table from previous corporate literature:
THE OLD RESOURCE COUNT AS PER 2019
This resource was used for the December 2019 PEA and itself was a near-doubling of the
company’s original resource for Marimaca. By using a 0.22% CuT cut-off in 2019 they got the
following numbers:
 Measured + Indicated: 70,387,000 tonnes at 0.60% Cu = 931.1m lbs copper
 Inferred: 43,105,000 tonnes at 0.52% Cu = 494.2m lbs copper
 Total contained copper: 1425.3m lbs Cu
For the record, we base our calculations on the overall copper grade (CuT) and not the grade of
copper calculated as soluble in acid (CuS), as the company runs with the CuT number and uses
it in its PEA and economic calculations with the requisite lower recovery assumption (76%). So
far so good, we now move to the new updated MRE as per last week:
THE NEW RESOURCE COUNT
The job here is to try to get as close to “apples to apples” as possible, so to begin we consider
the 0.22% CuT cut-off line for the 2022 resource:
 Measured + Indicated: 113,517,000 tonnes at 0.54% Cu = 1,351.4m lbs copper
 Inferred: 60,431,000 tonnes at 0.47% Cu = 626.2m lbs copper
 Total contained copper: 1,977.6m lbs
Tonnages are up, grade has dropped slightly and the result is to add 552m lbs copper to the
2019 numbers at this cut-off. However, this time around MARI is promoting a new and lower
copper cut-off grade of 0.15% CuT for the 2022, therefore we consider a second line at 0.15%:
 Measured + Indicated: 139,567,000 tonnes at 0.48% Cu = 1,476.9m lbs copper
 Inferred: 82,678,000 tonnes at 0.39% Cu = 710.9m lbs copper
 Total contained copper: 2,187.8m lbs
Indeed tonnages may have “nearly doubled” but, due to the lower copper grades in the input
25

data, total contained copper is up by around 50% compared to 2019. That’s still okay, in fact it
would be good as long as the other criteria work in-line, but it’s at this point a second line of
doubt begins. Here’s a table that lays out the changes in pricing and cost assumptions for the
mine and as you can see, MARI has done some heavy optimization compared to its 2019 PEA
criteria:
Criteria for Marimaca Resource (in U$)
item Dec'19 Oct'22
Copper price 3.00 4.00
Mining cost 2.00 1.51
HL process 9.00 5.94
ROM process 2.50 1.65
selling cost/lb 0.07 0.16
Other non-dollar criteria
HL recovery 76% 76%
ROM recovery 40% 40%
pit slope 44-46% 45-52%
source: MARI data
Main points:
 The base case for copper has moved up from U$3.00/lb to U$4.00/lb
 The mining cost assumption is down by 49c
 The heap leach processing cost assumption is down by $3.06/lb
 The Run-Of-Mine processing cost assumption is down by 85c
Those cost assumptions would be significant cuts (“optimizations”) compared to a 43-101-
compliant PEA even if we don’t consider the inflationary environment seen this year. They’ve
also chosen a copper price of U$4.00/lb on which to base their economics and what’s more,
there’s an apparent desire to save capex and op-ex strip by assuming pit slopes that start in the
same range as before, but rising to a (literally) steep 52% in some zones and before we leave
this point, a brief reminder that this part of a world is a significant seismic zone. I grant they
have revised selling costs upward to 16c/lb Cu from 7c, but that’s more a case of changing an
input number that was obviously too low.
To sum up, in the December 2019 PEA, MARI assumed an overall production cost of
U$13.50/tonne, plus 7c/lb eventual selling cost on the copper production. And now, three years
later with the inflationary environment we see around us and copper trading around U$3.50/lb,
it chooses a U$4.00/lb base price to allow the cut-off to drop to 0.15% CuT and then assumes
the same cost criteria at U$8.10/tonne, with 16c/lb selling costs.
All this while selecting a U$4.00/lb base case for copper and dropping the cut-off to 0.15%
CuT? Sorry, this is too much to swallow without getting some detailed breakdown from the
company and good explanations of either 1) why the PEA inputs were too high (normally a
mine PEA is “the best economics you’ll ever see”) or 2) why last week’s assumptions as so
much lower than before. As much as I like the Marimaca project and its theoretical economics
(oxide copper at low altitude should work), all this smacks of too much optimization and
pushing the envelope of project economics in order to capture as much copper tonnage as
possible and get the grand total to over 2Bn lbs for the sake of a headline. I’m leery of buying
into this NR and promotion and will stay that way about the company until we get the DFS at
some point next year. After all, “At U$4.00/lb copper they all work” so why pay up for a $300m
market capper and all the embedded equity premium when I can get the same economics at
vastly better leverage from QC Copper (QCCU.v) at its $22m market cap? Frankly, I’m less
enthused about MARI this weekend than I was before, no matter how many extra tonnes they
managed to tack on.
26

Conclusion
IKN700 is done, we end with bullet points:
 Superior Gold (SGI.v) turned into a major disappointment and in the space of just over
six months, blew a nasty hole in the portfolio’s value. There’s always risk involved with
this sector and in this case, the combination of execution and a lack of basic
transparency from management made a loss into a big loss.
 On a brighter note, it’s pleasing to see Amerigo (ARG.to) deliver despite being in the
midst of a tough market. Creaming three cents a quarter from this trade allows the
holder to worry a little less about the headline share price.
 Ecuador now seems to be competing with Colombia for the title of biggest investment
trap for the mining industry. Avoid both jurisdictions.
 I hope I’m wrong about Marimaca (MARI.to), but the way in which it changed the
financial inputs, particularly on costs, smacks of being too keen to reach for that
2Bnlb/50ktpd line. On the other hand, Abrasilver (ABRA.v) keeps on delivering and at
this rate, may even get me back into silver exposure.
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://finance.yahoo.com/news/the-fede-labor-market-economist-says-102844584.html
(2) https://superior-gold.com/news/superior-gold-reports-q3-2022-production-and-cash-122649/
(3) http://www.amerigoresources.com/_resources/news/nr_20221011.pdf
(4) https://hytimes.pe/2022/10/07/corihuarmi-reinicia-operaciones-tras-acuerdo-de-presentar-plan-de-cierre-de-mina-en-
diciembre/
(5) https://electrabmc.com/electra-starts-commissioning-of-battery-materials-recycling-demonstration-plant-at-its-
ontario-refinery-complex/
(6) https://www.reuters.com/markets/commodities/russian-copper-builds-up-lme-warehouses-sources-2022-10-12/
(7) https://www.hellenicshippingnews.com/copper-today-aluminium-tomorrow-lmes-russian-dilemma/
(8) https://www.reuters.com/markets/commodities/codelco-hikes-2023-european-copper-premiums-around-235-record-
high-sources-2022-10-13/
(9) https://www.reuters.com/markets/commodities/record-european-copper-premiums-buyers-shut-out-russia-2022-10-
14/
(10) https://cumtn.com/investors/press-releases/2022/copper-mountain-mining-announces-q3-2022-results-c-4748/
27

(11) https://regulusresources.com/news/2022/regulus-announces-us-5.0-m-investment-from-osisko-gold-royalties/
(12) https://www.e29copper.com/news/2022/element-29-commences-phase-2-drill-program-at-the-elida-copper-deposit-
in-peru
(13) https://www.barrick.com/English/news/news-details/2022/strong-year-to-date-copper-performance-and-higher-gold-
grades-in-Q4-expected-to-drive-delivery-of-2022-production-guidance/default.aspx
(14) https://www.mining.com/web/barricks-quarterly-gold-output-falls-sequentially/
(15) https://kingfishermetals.com/kingfisher-intersects-2-86-g-t-au-over-40-m-and-58-88-g-t-au-over-1-m-at-cloud-drifter-
trend/
(16) https://aureliusminerals.com/news/aurelius-announces-termination-of-master-transaction-agreement/
(17) https://www.lahora.com.ec/pais/crecimiento-economia-golpe-mesas-dialogo/
(18) https://4pelagatos.com/2022/09/29/asi-quiere-cogobernar-la-conaie-en-minas-y-petroleo/
(19) https://sisanjuan.gob.ar/gobernador/2022-10-12/44562-sergio-unac-dio-apertura-a-la-tercera-edicion-de-san-juan-
tierra-minera?g5_not_found=1
(20) https://exposanjuan.com.ar/
(21) https://sisanjuan.gob.ar/mineria/2022-10-04/44381-conoce-a-los-participantes-de-san-juan-tierra-minera
(22) https://veja.abril.com.br/politica/nova-pesquisa-mostra-uma-diferenca-crucial-entre-lula-e-bolsonaro/
(23) https://noticias.uol.com.br/eleicoes/2022/10/15/jair-bolsonaro-pesquisas-eleitoral-arranjaram-votos-lula-ceara-
mentiras.htm
(24) https://www.elheraldo.co/colombia/brigitte-baptiste-dice-que-el-petroleo-ni-la-mineria-son-una-amenaza-biologica-
946463
(25) https://www.semana.com/economia/macroeconomia/articulo/al-fin-que-ministra-irene-velez-desmiente-a-ocampo-y-
afirma-que-no-habra-exploracion-petrolera-no-es-una-decision-caprichosa/202259/
(26) https://www.virtualinvestorconferences.com/events/event-details/metals-mining-virtual-investor-conference-5
(27) https://abrasilver.com/news-releases/abrasilver-drills-further-near-surface-high-grade-silver-in-new-southwest-
zone-including-425-metres-at-408-gt-ageq-58-gt-aueq
(28) https://iknnews.com/abrasilver-abra-v-a-litmus-test-for-the-junior-mining-market/
(29) https://atacresources.com/news/news-releases/atac-samples-18.40-copper-and-78.30-g-t-gold-at-its-pil-property-
toodoggone-british-columbia/
(30) https://marimaca.com/es/marimaca-announces-significant-increase-in-mineral-resources-at-the-marimaca-copper-
project/
Appendix 1: Flash update dated Wednesday October 12th
Good Wednesday morning, 08:15am and a few minutes before the opening bell
(this is the second attempt to send this mail, the first may have been blocked due to it containing a link to the NR)
In light of Superior Gold's continued disappointing performance, as seen in its 3q22 production NR of this morning (the
hyperlink was here) and after considering the financials carefully, I am going to be one of the MANY likely sellers of this
stock today. Full details and post-mortem in IKN700 on Sunday, here we simply note that the company has clearly failed
to deliver on guidance and has moved the goalposts on the year once again. It's going to be an uncomfortably big loss
in percentage and money terms, but at this point and with the company now taking on debt financing, I prefer to
liquidate and rescue some cash rather than trust their acumen any further. With Q4 and tax loss selling now on the
horizon, even if there's future life in a smaller SGI there will probably be cheaper prices later. So, I panic first and sell
now, taking a loss.
In other news, Amerigo Resources (ARG.to) Q3 came in well enough yesterday, we'll have details on that as well this
weekend. And thanks for the feedback on last weekend's edition, particularly on the Minera Alamos (MAI.v) note. Happy
to hold shares in companies that deliver.
Best wishes, Mark
28

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-Apr-21 C$0.19 -36.7% Failed spec trade, cut loss
Cartier Res ECR.v sep'21 C$0.32 21-Mar-21 C$0.235 -26.6% Failed spec trade, cut loss
Amarillo Gold AGC.v sep'21 C$0.31 30-May-21 C$0.30 -3.2% Capex story changed: Out
Excelsior Mining MIN.to oct'21 C$0.93 10-Mar-19 C$0.53 -43.0% May return in 2022
Royal Road Min. RYR.v nov'21 C$0.155 17-Mar-19 C$0.275 77.4% Closed on Nica pol risk
Aurelius Min. AUL.v dec'21 C$0.75 28-Jun-20 0.24 -68.0% cut end 2021, failed trade
Argonaut Gold AR.to dec'21 C$2.95 25-Jun-21 C$2.15 -27.1% cut on capex blowout
Stocks To Follow Closed Positions 2020
Closed in 2020 closed close price
TMAC Resources TMR.to Jan'20 C$3.41 20-Dec-19 C$3.61 5.9% TLS flip play, sold new year
Regulus Res REG.v Jan'20 C$1.10 20-Dec-19 C$1.30 18.2% TLS flip play, profit taken
Bonterra Res BTR.v Jan'20 C$1.90 9-Dec-19 C$1.66 -12.6% TLS flip play, loss taken
McEwen Mining MUX Jan'20 U$1.12 2-Dec-19 U$1.18 5.4% TLS flip play, profit taken
Core Gold CGLD.v Jan'20 C$0.255 7-Apr-19 C$0.305 19.6% arb trade, profit taken
HudBay Min HBM Jan'20 U$3.56 9-Dec-19 U$3.36 -5.6% TLS flip play, loss taken
Midas Gold MAX.to Feb'20 C$0.71 5-Jan-20 C$0.57 -19.7% sm & silly trade
Warrior Gold WAR.v Feb'20 C$0.08 3-Aug-18 C$0.05 -31.3% clean out non-perf sm stocks
Contact Gold C.v Feb'20 C$0.40 19-Aug-18 C$0.18 -55.0% clean out non-perf sm stocks
Sandstorm Gold SAND Feb'20 U$3.73 17-Apr-16 U$7.21 93.3% Sold during port rebalance
NexGen Energy NXE Feb'20 U$1.20 2-Dec-19 U$1.06 -11.7% TLS flip play, loss taken
MAG Silver MAG Apr'20 U$8.95 1-Mar-20 U$10.07 12.5% Sold to cut silver exposure
Alexco Res AXU Apr'20 U$1.69 7-Sep-17 U$1.69 0.0% sold to close Ag exp. in FY20
Bonterra Res BTR.v Jun'20 C$1.62 2-Feb-20 C$1.10 -32.1% under-performer cash moved
Regulus Res REG.v Jun'20 C$0.64 6-Apr-15 C$0.79 23.4% moved $ TMQ/MIN & Au stocks
Great Panther GPR.to Aug'20 C$0.60 21-Jun-20 C$1.10 83.3% Profit taken, good trade
Jaguar Mining JAG.v Aug'20 C$0.42 21-Jun-20 C$0.65 54.8% Profit taken, good trade
Sandstorm Gold SAND Aug'20 U$7.76 10-May-20 U$9.37 20.7% Profit taken, good trade
Integra Resources ITR.v Aug'20 C$2.23 13-Aug-18 C$5.40 142.2% Profit taken, good trade
Wesdome Gold WDO.to Aug'20 C$2.37 14-Oct-17 C$14.82 525.3% last 1/2 of big win closed
INV Metals INV.to Sep'20 C$0.40 17-May-20 C$0.45 12.5% Cut all Ecuador exposure
Cartier Resources ECR.v Nov'20 C$0.155 3-Aug-18 C$0.25 67.7% Exact close price TBA
Tinka Res TK.v Dec'20 C$0.195 19-Apr-16 C$0.195 0.0% Closed on a round trip fail
2015 to 2019 annual closed positions in appendices below, 2009 to 2014 closed positions in editions IKN553 or earlier
29

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-Aug-18 C$0.05 -33.3% tiny trade, made room for new
B2Gold BTO.to feb'19 C$2.11 12-Sep-14 C$4.05 91.9% Took 1/2 profits, reduce size
Western Copper WRN.to mar'19 C$0.80 20-Jan-19 C$0.81 1.3% Spec trade that didn't work
B2Gold BTO.to mar'19 C$2.11 12-Sep-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-Jan-19 U$4.15 -8.1% Short that didn't work, sm loss
Zinc One Z.v jun'19 C$0.47 14-Sep-17 C$0.025 -94.7% clearing out dead trade
Amarillo Gold AGC.v jun'19 C$0.24 22-Aug-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-Apr-18 C$0.47 -67.8% Failed sm spec on Au. Moved on
Amerigo Res ARG.to nov'19 C$0.91 23-Sep-18 C$0.50 -45.1% worst trade of year, hefty loss
Guyana Goldfields GUY.to dec'19 C$0.94 14-Apr-19 C$0.56 -40.4% taking the loss, financials weak
Tethyan Res TETH.v dec'19 C$0.30 8-Sep-19 C$0.16 -46.7% tiny trade, word of probs in co
Stocks To Follow Closed Positions 2018
Closed in 2018 closed close price
Amarillo Gold AGC.v jan'18 C$0.38 24-Mar-17 C$0.31 -18.4% Cut away losing trade
Riverside Res RRI.v jan'18 C$0.39 27-Jun-16 C$0.31 -20.5% Cut away losing trade
Eros Res ERC.v jan'18 C$0.175 1-Mar-17 C$0.16 -8.6% CEO sudden exit, not good
Excellon Res EXN.to jan'18 C$1.54 9-Oct-16 C$1.66 7.8% 4q17 poor, one too many bad qtrs
Wesdome Gold WDO.to jan'18 C$1.68 15-Dec-17 C$2.06 22.6% Near-term trade block, took profit
Sabina G&S SBB.to apr'18 C$2.06 17-Dec-17 C$1.77 -14.1% Near-term trade, bad timing, small
B2Gold BTO.to May'18 C$2.11 12-Sep-14 C$3.67 73.9% sold 25% to reduce exposure
Lara Expl. LRA.v May'18 C$0.65 11-Feb-18 C$0.58 -13.8% Spec on Brazil didn't work
Solitario XPL June'18 U$0.72 19-Mar-17 U$0.41 -43.1% Failed trade, may return in 4q18
SolGold plc SOLG.to July'18 C$0.475 19-Nov-17 C$0.415 -12.6% cut, trade didn't perform
Pan American PAAS July'18 U$17.90 1-Jun-18 U$16.30 8.9% modest win on short position
NGEx Res NGQ.to Sep'18 C$1.01 22-Oct-17 C$1.00 -1.0% Closed to reduce Argentina exp
Sandstorm Gold SAND Oct'18 U$3.73 17-Apr-16 U$4.13 10.7% partial sale to raise cash for GTT
Aldebaran Res ALDE.v Nov'18 n/a n/a n/a n/a liquidate spin out of REG
Stocks To Follow Closed Positions 2017
Closed in 2017 closed close price
Continental Gold CNL.to Jan'17 C$2.68 22-May-16 C$4.17 55.6% trade closed, profit taken
Focus Ventures FCV.v Jan'17 C$0.23 1-Jul-12 C$0.05 -78.3% Give up, a disaster trade
Wesdome Gold WDO.to Feb'17 C$1.72 28-Aug-16 C$3.00 74.4% Target hit, sold, good trade
Belo Sun BSX.to Mar'17 C$0.90 30-Jan-17 C$0.90 0.0% failed near-term flip trade
Lara Expl. LRA.v Mar'17 C$1.15 8-Apr-12 C$1.05 -8.7% cut to make room for new trade
Rye Patch Gold RPM.v Apr'17 C$0.31 2-Sep-16 C$0.32 3.2% cut for doubts & new stock
Cordoba Min. CDB.v Jun'17 C$0.75 15-Sep-16 C$0.63 -16.0% closed
Constantine Metal CEM.v Aug'17 C$0.135 9-Apr-17 C$0.28 107.4% spec trade closed, good win
Red Eagle Min. R.to Sep'17 C$0.67 13-Dec-16 C$0.27 -59.7% IKN's biggest failure in years
Starcore Intl SAM.to Sep'17 C$0.61 10-Jan-15 C$0.31 -49.2% Patience ran out
B2Gold BTO.to Dec'17 C$2.11 12-Sep-14 C$3.39 60.7% sold small portion for liquidity
30

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-aug-15 C$0.25 38.9% okay trade, sold on pol risk
McEwen Mining MUX jan16 U$1.09 25-jan-15 U$1.20 10.1% sold due to lack of value
Lake Shore Gold LSG.to feb-16 C$1.10 07-apr-15 C$1.69 53.6% bot out, sold early in process
Atacama Pacific ATM.v feb-16 C$0.19 26-apr-15 C$0.40 110.5% sold for a double on big pop
New Gold NGD feb-16 U$2.06 24-jan-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-jan-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-apr-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-apr-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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