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The IKN Weekly
Week 716, February 5th 2023
Contents
This Week: In Today’s Edition, The world reads too much into the FOMC presser (again).
Fundamental Analysis: Minera Alamos (MAI.v) and its operations update.
Stocks to Follow: Altiplano Metals (APN.v), Amerigo Resources (ARG.to), Aldebaran
Resources (ALDE.v), Newcore Gold (NCAU.v), Minera IRL (MIRL.cse), Western Copper & Gold
(WRN.to).
Copper Basket: Overview, Libero Copper (LBC.v), Faraday Copper (FDY.to), Arizona Sonoran
(ASCU.to), Pan Global Resources (PGZ.v), Regulus Resources (REG.v).
Producer Basket: Overview, Eldorado Gold (EGO) (ELD.to), Wesdome Gold (WDOFF)
(WDO.to).
TinyCaps Basket: Overview, Palamina (PA.v), Latin Metals (LMS.v), District Metals (DMX.v).
Regional Politics: Chile: More environmental actions, Ecuador: The Quito region mining
referendum is back on, Peru’s Congress makes a bad situation worse, Colombia: Mining law
project timing update.
Market Watching: Deferred.
I remind subscribers that no part of this newsletter can be copied, reproduced or
given to any third party without the express permission of the author.
This Week
In Today’s Edition
 Today’s main event is a long-overdue update on Top Pick Minera Alamos (MAI.v), as we
sift through the data and information given in last week’s 4q22 prodcution and 2023
guidance NR and explain why it’s as much of a knock-down bargain as it’s always been.
Not all mining companies are the same.
 Copper and gold took their hits from the macro data out of The USA last week, I’m not
worried about the near-term future of either metal. We do gold in today’s intro, copper
in its own basket.
 Also in The Copper Basket, Faraday Copper (FDY.to) continues to impress. In other
news, I began by wanting to write a short note on Regulus (REG.v) and ended up
ranting and frothing at the mouth. I think I need a hobby.
The world reads too much into the FOMC presser (again)
The intro note to IKN703, dated November 6th 2022, was entitled “Master of the Universe” and
went into some detail as to why the hawkish message delivered by Jerome Powell, head of the
Federal Reserve, at the press conference after that week’s FOMC meeting was best ignored. So
as last week rolled out this desk was strongly reminded of that edition, but it was all weirdly in
reverse. Back in IKN703, we got a neutral or even slightly dovish FOMC statement that the
market liked at first, then just half an hour later at the presser, Jay Powell layered on hawkish
jawbone and caused the market to sell off for the next day and a half. Our point that weekend
was that “…what they write in the 2pm communiqué will always be the more relevant takeaway
than the 2:30pm talkshow, as the chat can always be walked back” and sure enough, once the
world had taken stock Jay Powell’s “The lady doth protest too much methinks” performance
was ignored and early November did indeed mark the beginning of gold’s rally.
1

Last week, the reverse came to pass. First we had standard sounding FOMC Statement but
when reporters started asking pointed questions of Mr. Powell at the presser, he gave people
the impression that rate hikes would end sooner rather than later and anything priced in US
Dollars rallied hard, (gold included of course). There was something of a mania to Wednesday’s
trading and while it might come across as Monday morning QBing, I was left scratching my
head and worried about the longevity of the gold rally that evening. Sure enough, the very next
morning the market rolled back all the gain in gold, as well as other issues such as GDX (also
featured on this chart) and broad market indices. However, the real surprise was still in store:
An absolute blow out jobs number of +571k NFP that came with all sorts of secondary data
pointing in the same direction, such as upward revisions for previous months and a headline
unemployment rate that hasn’t been seen since the 1960’s. The message was clear, the Fed
now has more room to raise rates without dragging The US economy into recession and what’s
more, wage inflation at 0.3% means they have more room on the inflation end of the bargain,
too. The US Dollar stopped its recent rot and rallied 1% in second and it was all too much for
bullion, exposed as it was to a North American market that had already largely ignored the
U$300/oz added since early November.
Indeed, we’ve stated it before and we’ll state it again, one look at the near-term performance
of our GLD tracking charts…
GLD gold holdings, last three months (metric tonnes)
960
955
950
945
940
935
930
925
920
915
910
905
900
…compared to the longer-term patterns of both…
2
22/9/03 22/01/5 22/01/01 22/01/51 22/01/02 22/01/52 22/01/03 22/11/4 22/11/9 22/11/41 22/11/91 22/11/42 22/11/92 22/21/4 22/21/9 22/21/41 22/21/91 22/21/42 22/21/92 32/1/3 32/1/8 32/1/31 32/1/81 32/1/32 32/1/82 32/2/2
mt 6.30 GLD: Inventory/Price Ratio, last three months
6.20
6.10
source: SPDR GLD data
6.00
5.90
5.80
5.70
5.60
5.50
5.40
5.30
5.20
5.10
5.00
4.90
4.80
22/9/03 22/01/5 22/01/01 22/01/51 22/01/02 22/01/52 22/01/03 22/11/4 22/11/9 22/11/41 22/11/91 22/11/42 22/11/92 22/21/4 22/21/9 22/21/41 22/21/91 22/21/42 22/21/92 32/1/3 32/1/8 32/1/31 32/1/81 32/1/32 32/1/82 32/2/2
Source: SPDR data, IKN calcs
GLD gold holdings, 2016 to date (metric tonnes)
1500
1400
1300
1200
1100
1000
900
800
700
600
500
61/4/1 61/61/3 61/62/5 61/8/8 61/81/01 61/92/21 71/41/3 71/42/5 71/4/8 71/61/01 71/72/21 81/21/3 81/22/5 81/2/8 81/21/01 81/42/21 91/8/3 91/02/5 91/13/7 91/01/01 91/02/21 02/5/3 02/51/5 02/82/7 02/7/01 02/71/21 12/3/3 12/11/5 12/22/7 12/1/01 12/31/21 22/42/2 22/6/5 22/02/7 22/92/9 22/9/21
mt 8.20 GLD: Inventory/Price Ratio, 2016 to date
8.00
7.80
source: SPDR GLD data 7.60
7.40
7.20
7.00
6.80
6.60
6.40
6.20
6.00
5.80
5.60
5.40
5.20
5.00
61/4/1 61/61/3 61/62/5 61/8/8 61/81/01 61/92/21 71/41/3 71/42/5 71/4/8 71/61/01 71/72/21 81/21/3 81/22/5 81/2/8 81/21/01 81/42/21 91/8/3 91/02/5 91/13/7 91/01/01 91/02/21 02/5/3 02/51/5 02/82/7 02/7/01 02/71/21 12/3/3 12/11/5 12/22/7 12/1/01 12/31/21 22/42/2 22/6/5 22/02/7 22/92/9 22/9/21
Source: SPDR data, IKN calcs

…show that the recent rise in gold bullion has been all-but ignored by the wonderful women
and men of Wall St., the most unpopular gold rally of all time. So when the moment came to
sell gold, there were precious few people on the buy side ready to snap up bargain prices. That
falls to the rest of the world, where gold has seen its buyers’ markets and as such, we should
expect bullion to find its level and return to its slow grind upwards this coming week.
Why so? Because the buyers of gold aren’t worried as much about the exact timing of the USA’s
rate roof, they know it’s coming and if the top is a few months later than first imagined, then so
be it. The signal from the Fed on Friday didn’t change one jot from its Wednesday statement
position either, as CME’s FedWatch was still implying a 94.5% chance of a 25bps rate hike at
the next FOIMC in March, exactly the same assumption as most had on Wednesday after the
first 25bps was added. Mr. Powell gets to comment on all this next week at a prepared public
Q&A on Tuesday, don’t be surprised if he reiterates exactly the line of the FOMC statement,
tells the world they are “data driven” and will “proceed cautiously” from now on with 25point
hikes.
Bottom line: Gold’s run is not over and the oversold levels of last Friday won’t last long. We’ll be
back at-or-about U$1,900/oz this time next week, so don’t sweat the noise of a western world
market that doesn’t even like the metal when it goes up.
Fundamental Analysis of Mining Stocks
Minera Alamos (MAI.v) and its operations update (in CAD$ unless stated)
We got the anticipated multi-subject news release from our Top Pick Minera Alamos on Tuesday
January 31st (1) and as most of you already know…
…the market reacted negatively to the NR. Also as most of you know, I posted on the subject
later that morning on the open blog after getting a few mails from fellow longs and that’s on
this link (8) if you care, but there’s nothing in that
quick overview that isn’t covered today, in this
deeper look at today’s MAI.v. But before we dive in
and to be as fair as possible, here right is the same
ten-day lapse as seen above, but lays Minera
Alamos against the GDXJ.
The Friday sell-off affected others more than MAI, it
seems to have got its selling out of the way early.
Enough on last week’s trading, the way forward
today is to split the news into its own categories, so
here come thoughts on the following subjects:
 Santana 4q22 production and MAI
corporate financials update
 Santana in 2023 including new production estimates, expansion plans and the water
3

issue
 Cerro de Oro development update
 Minera Copper
 Updated MAI.v valuation and price target
Santana 4q22 production numbers: First and foremost, the reason MAI shares came under
pressure on Tuesday and Wednesday morning trading, the Q4 production number and yes, it
sucked. This part of the NR last week provided the news and some justification
Q4-2022 recovery (2,834 ounces) declined somewhat from Q3-2022 (4,727 oz) as a
result of the shift to additional waste mining although higher gold prices offset some of
this short-term decline.
Here’s a chart:
MAI: Gold sales, per qtr
4
104 8512
9213
6324
0582
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
12q4 22q1 22q2 22q3 tse22q4
Au Oz
source: company data, IKN ests
This chart is for sales and we only have production for Q4 so far, but considering the slight
sales lag on 3q22 production and the likely knock-on, our 2,850oz of sales may even turn out to
be light as after checking with MAI, we confirmed there was some lag in sales from the 4,727oz
produced in 3q22. However, even if eventual sales beat our slated 2,850oz there’s no disguising
the light production in Q4 as Santana is supposedly able to run comfortably at these early
stages of its life at 30,000oz/year, A quarter returning around a third of its potential isn’t
winning prizes and that number, along with the reasons for the drop and its implications on
sales, was behind the sell-off.
Corporate financials: MAI reports a better average received price for its gold in 4q22
compared to the C$2,147/oz average in 3q22. That’s to be expected, as according to Kitco gold
averaged around C$2,400/oz last quarter but we’re not going to pitch that high, as the
company is unlikely to realize total spot price. So we first consider Q4 revenues and costs on a
per-ounce basis in this chart:
MAI Santana: Financial results and ests for next two quarters
1932
5401
3861
3232
2401
9941
7412
7401
9761
0522
8921
0702
C$/oz Au Avg received price C$/oz Au
2600 COGS/Oz sold
2400 Total exp/Oz sold
2200
2000
1800
1600
1400 1200
1000
800
600
400
200
0
1q22 2q22 3q22 4q22est
source: company filings, IKN ests and calcs
We pitch at a conservative received price of C$2,250/oz for the quarter. Mining COGS are
bound to increase on a per-ounce basis due to the lowered production schedule, our
guesstimate is C$1,298/oz and be clear, it’s just that; a best guess. These are early days at
Santana and MAI, production levels are low on an absolute basis and while our guesses are
educated based on information given and gleaned, I’m not going to beat myself up too much if
they’re wildly wrong (it’s why we try to pitch parameters conservatively, after all, it leaves most

of the surprises to the upside). I will be annoyed by bad estimates come the end of 2023,
however. On-site COGS are not everything however, and our pitch for total expenses per
ounce sold in 4q22 is C$2,070/oz. In other words, we still expect MAI to remain modestly
profitable on overall operations even with its low level of production in the quarter.
That’s the per-ounce breakdown, now for some cash estimates and please recall, all amounts
are in Canadian Dollars unless stated. Below left is our financials visual, with calculated top line
revenue is C$6.41m and total expenses comes to C$5.9m. That leaves MAI with a mine op
income of just over half a million and that’s as far as the guesses go, you don’t get a net
income estimate as it’s as likely to be just under zero as just over. Below right shows how we’ve
estimates overall costs, with lower exploration and evaluation costs than Q3 and a lower COGs
number that takes into account the lack of dirt moved to pad. We assume the reported
acceleration of waste removal (pre-strip) to be capitalized at this stage of MAI’s development.
MAI.v: financial results
From that we can make a few estimates on how the balance sheet will look when the YE
financials drop (last April, probably). The overall assets and liabilities charts first and with Q4
coming in roughly breakeven, we shouldn’t expect too many changes.
Liabilities are forecast virtually unchanged, while assets are probably going to show us an
increase in fixed assets and a drop in cash. However, as the next two charts point out…
5
61.5
136.3
925.1
860.1
962.7
196.4
875.2
37.2
490.9
411.7 89.1
40.3
14.6 9.5
15.0
0
C$m C$m MAI: FY22 expenses, per qtr
10 Revenues 8 other exp
8 9 t m n o e t i t n a e l i n e c o x p o p m in e c 6 7 S G E a x & l p A a l r i & e s E e va tc l
7 Depreciation
6 5 COGS
5 4
4 3
3
2 2
1 1
0 0
1q22 2q22 3q22 4q22est 1q22 2q22 3q22 4q22est
source: company filings source: company filings
MAI.v: Assets
55
50
45
40
35
30
25
20
15
10
5
0
91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 22q3 tse22q4
$m inventories MAI.v: Liabilities per qtr
fixed 10
other current
9
cash
8
7
6
5
4
3
2
1
0
source: company filings
91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 22q3 tse22q4
source: company filings
srallod
fo
snoillim
LT liabs
current liabs
MAI.v: Cash treasury per qtr
26
24
22 20
18
16
14
12 10
8
6
4
2
0
61q4 71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 22q3 tse22q4
source: company filings
srallod
fo
snoillim
MAI.v: Working Capital per qtr
26
24
22
20 18
16
14
12
10 8
6
4
2
0
-2
61q4 71q1 71q2 71q3 71q4 81q1 81q2 81q3 81q4 91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 22q3 tse22q4
source company filings
srallod
fo snoillim

…MAI isn’t going to have any liquidity issues. We know treasury is around C$13m because I
asked management and while they didn’t give a
number, the answer had enough information and MAI: Inventories
made sense next to the house estimate (in fact I
was at $12m and nudged up the model on hearing
what I heard). As for working capital at $19.7m
estimated, that includes a modest drop in pad
inventory (right).
We learned in the NR that (quote), “As of Dec 31,
2022, estimated pad inventory of recoverable gold
was ~6,950 ounces.” That compares to the 3q22
MD&A disclosure that (again quote), “As of
October, a total of 23,0000 oz had been stacked on the leach pads of which 9,923 oz have
been sold to date.” So let’s do a bit of simple math:
 23,000oz total stack at end 3q22
 At 75% recovery = 17,250oz recoverable gold
 Minus 9,923oz (sales to end 3q22)
 Minus 2,834oz (4q22 production)
 Minus 6,950oz (end year recoverable gold)
That implies a shortfall of 2,457oz. In other words, MAI stacked that amount of extra
recoverable gold onto the pad in 4q22, which isn’t much of course but we know the company
moved to concentrate on waste stripping during the quarter. So to take this math one step
further and daring to push the window on margins of error, 2,457oz of newly placed
recoverable gold implies total stacked gold in Q4 of 3,276oz. And if that is held at the known
average grade of 0.66g/t, it means MAI in 4q22 stacked 154,384 metric tonnes of rock onto the
pads. Take the Christmas break into account, assume 85 days of Q4 site operations and go
back to the pocket calculator, that in turn implies a stacking rhythm of 1,712 tonnes per day.
We know MAI is set up to stack around 5,000tpd at Santana once fully operational (with an
operating capacity of up to 10,000tpd a number achieved on specific days of Q4), so that
calculated average in Q4 is well below its capacity and probably gives an idea of how much pre-
stripping has been going on. While I wouldn’t automatically jump to the conclusion that CEO
Koningen and his team have moved 3,300tpd of dirt off the areas it next plans to mine and
assume the daily and quarterly pre-strip totals are lower, it’s clear they would have made
significant progress during the quarter and all that bodes well for a productive 2023 at the
mine.
The bottom line to Santana 4q22: It was a disappointing production quarter compared to what
we were looking for from MAI, let’s not try to hide that fact. However, our original estimate for
4q22 was 5,500/oz gold as the company continued its ramp-up process, we weren’t expecting a
7,500 ounce quarter just yet anyway. What’s more, the 2,834oz produced was almost certainly
enough to return a modest operating profit (break even works for me) and get the company to
decided that it had indeed achieved its commercial production threshold. We know that from
the NR’s headline. The company cited its ongoing water issue as the main cause and we go into
more detail on that subject in our next section below, but even with the issues faced the most
important part of the company financials at this stage, its balance sheet, remains in strong
shape. MAI has more than enough cash to do whatever the team wants to do at the mine in
2023 (let us also recall that back pocket U$3m line of credit that will almost certainly remain
unused but a useful little emergency fund).
Santana in 2023: The subjects to cover here are some new house production estimates for
the year ahead, the company’s development and expansion plans, and of course “the water
6
694.5
337.6
780.9
96.7
5.6
C$m supplies
10 finished metal inv
leach pad ore 9
8
7
6
5
4
3
2
1
0
4q21 1q22 2q22 3q22 4q22est
source: company filings

issue.” I’m going to attack them in reverse order.
“A little water clears us of this deed”: After her husband had just killed Duncan (Act 2), Lady
Macbeth had a clear head about how to go about business. The problems faced by MAI at
Santana are nowhere near as murderous but we know the ongoing drought affected plans in
Q4 and from the tone of the passage in last week’s NR, the issues have continued into 1q23:
As mentioned in previous announcements, the drought conditions experienced in
northern Mexico since 2020 remain a challenge. Current forecasts call for the
warmer/drier conditions related to a La Nina event now entering an unprecedented
third straight winter to dissipate in the first half of 2023. Until such time that there is a
clearer outlook on the overall water conditions in the region, the Company remains
cautious with respect to short term mine planning activities.
Further down the NR we also got this:
As disclosed previously the focus of mining operations shifted in Q4-2022 and will
continue in Q1-2023 with some accelerated waste mining…
When a company says the same thing twice, pay attention. However, that sentence went on to
say this
…to better prepare for the future planned expansion of operations later this year.
…and as company President Doug Ramshaw mentioned to this desk last week, they wouldn’t be
planning future expansions if they thought the water issue would be a game-changer for very
long. Indeed, let’s also repeat the title line of last week’s NR here, because…
“Minera Alamos Achieves 2022 Commercial Production Thresholds At Santana”
…is not a small thing. We know the basic mining industry equation no water = no mine and
that’s as true here as in the Atacama Desert of Chile, but MAI wouldn’t have declared
commercial production at Santana without a high level of confidence about its 2023 prospects
and that includes the end of any issues regarding water. Also, this isn’t a massive copper
porphyry leach pad operation, it’s a small mine with 30k to 50k gold per annum in its line of
fire, these mines are not unworkable if the clouds don’t come. So rest assured, readers and
fellow longs, MAI is being pro-active about the water issue and is not merely waiting for the
rains to come back and without going into details (because I don’t know them), I understand
MAI is in the process of procuring a “Plan B” water supply that allows operations to continue
even in a worst-case drought situation. Reading between the lines, we should expect MAI at
Santana to run at 100% capacity once the rains return to their normal pattern but even if that
doesn’t happen, the company will be able to run its mine at a reduced rate and produce gold
thanks to an alternative water supply.
All that may sound like “extra special info” but it’s not. In fact, I don’t really know why the
investment community and the MAI shareholders have built up their worries as much as they
have (like I said the other day, I’ve been reading the MAI community bullboards recently). It’s
not as if a company will suddenly throw up its arms in desperation due to a lack of water, any
enterprise worth their salt works around issues. Especially early-stage issues. Especially
companies that employ dozens of engineers. Especially companies with literally decades of
hands-on experience in the locality of their operations and all the know-how and contacts you’d
ever need to come up with solutions to problems and implement them quickly. Also MAI isn’t
waiting for rain to start its expansion of Santana. Permits are in to expand the pad capacity by
up to 3x (we’ve previously run the basic numbers of potential annual production at Santana,
seeing 70k and 80k years down the line would be no surprise). Also, this year drilling on three
prospective zones around the operating Nicho area begins, with 80 holes planned to for
10,000m of near-surface testing for its next open pit resource. Finally, mid-year should see MAI
deliver its somewhat overdue 43-101 compliant resource for the current Nicho/Nicho Norte
operation.
The bottom line: Yes, water is an ongoing issue and as long as the drought continues in the
locality of Santana, production will be affected. However
7

1) production will continue, MAI has its workarounds either in-place or close to in-place
2) It doesn’t matter what Al Gore says, the drought will not continue indefinitely
3) MAI wouldn’t be investing, drilling, expanding and permitting 3x pad space at Santana
if it thought otherwise
4) MAI has all the money it needs to develop Santana and Cerro de Oro anyway
I don’t know what cadence Santana can run at without receiving another drop of rainwater for
the rest of time, but I do know the company has declared commercial production at the mine
and that, for a conservatively run company such as this, means it will be profitable this year
and as long as the gold price doesn’t cave in completely, all years beyond. What’s more, the
real equity upside for MAI isn’t even at this mine, at least not at its current capacity rate,
instead we should be looking to the Cerro de Oro development project as the place that will
really start to lift its share price. And on that subject..
Cerro de Oro update: We shift gears to a more straightforward part of our update. We’ll run
some slightly updated numbers on Cerro de Oro and the type of production we can eventually
expect from the operation below, here we report on the contents of last week’s NR and small
details aside, there are three things:
1) Permitting track. In the NR we learned that (quote) “…(t)he submission of permit
applications for the construction of the Cerro de Oro gold mine are scheduled for the end of Q1-
2023”, which puts MAI perhaps two months behind schedule. President Ramshaw’s comment
on this was much along the lines of the information included in the NR, that the team was
modifying their original application draught before submission to include areas where they have
recently acquired surface rights. Overall, President Ramshaw thinks the company is around two
months behind on its original timeline but the real time suck comes later in the process, so the
better quality the information in the original submission, the quicker the bureaucratic process.
And on that subject, once again it’s worth stating clearly that the AMLO government doesn’t
walk its own talk on the whole “no new mine permits” thing. This government has approved
literally hundreds of permits for mines old and new since coming to power, that process didn’t
stop in 2022 and unless something truly drastic happens, 2023 will continue on the same track.
2) Funding: The financing deal to build Cerro de Oro is under discussion and from all
indications, MAI either has or will have a suite of options to choose from come the day it pulls
the trigger. Construction capex will almost certainly be plain vanilla financial debt, I personally
expect them to draw around U$40m to build CdO, that’s the type of cash that can be repaid
quickly and bears no onerous burden on MAI’s financial structure. You’d be hard pressed to
conjure up problems and issues around this facet of MAI today, those who want to worry about
things need look elsewhere.
3) Drilling: MAI plans a 2023 program of 4,000m to 5,000m at CdO and has alaundry list of
targets, reproduced here:
 Resource expansion and infill drilling;
 Samples for additional metallurgical optimization testwork (both oxide and deeper
transition/sulphide zones);
 Geotechnical evaluations including in-situ densities, surface cover depths and rock
structural parameters utilized for ultimate pit limit designs;
 Improved definition of lower limits of the oxidation zone and depth potential of sulphide
mineralization.
That level of drilling can be covered easily by treasury/cash flow. Finally, MAI underscored the
relative ease and speed of the eventual construction phase at CdO, so the big game here is the
procurement of operating permits. Again, this being a previous operating mine is a great help in
expediting the permitting process in Mexico and as long as it keeps to the new timeline and
gets the submission in by the end of this quarter, there’s every reason to suppose it can deliver
on the current construction timeline and start producing gold at its second asset by 3q24.
8

Minera Copper: We also got an outline of MAI’s early plans for “Minera Copper” project, which
up to last week was supposedly a spin-out but there seem to be a couple of options on the
table, as the sect9ion kicked off with, “The Company is continuing discussions both internally
and with interested parties…”, which is fair enough.
We’ve mentioned the initiative previously in 2022 and it plan centres on the company’s Los
Verdes asset, located adjacent and to the North of Santana, though the company also
mentioned the Poteritos asset as part of the potential deal. We also got reference to the historic
level resource and economic study from a decade or so ago and while the numbers are out of
date, the rocks don’t change and the man takeaway is MAI’s bullet point highlighting 8-10
million tonnes of open-pittable resource potential at a grade of +1% CuEq. That’s a starting
point for what would conceptually be a low capex, simple leach operation to produce copper on
a small scale (though I do wonder how much of the moly in the “CuEq” would be payable) and
while clearly not a core asset or project at MAI, does offer a straightforward value add to the
share price…everyone loves a spin-out and “free” shares, after all. Less cynically, it’s right for
MAI to at least explore the potential of assets that the market currently values at zero dollars
and zero cents, if there’s a deal to be done or a spin-out newco possible then all well and good,
but none of us should be sweating on this as the reason to own the stock. Happy to follow its
progress, however.
Updated MAI.v valuation and price target: There’s plenty of organic growth potential in
MAI and the company is never shy about highlighting its long-term plans, but we need to justify
ownership of the company on today’s share price and its potential near-term and medium-term
upside. There’s nothing wrong with keeping “Eyes on the prize” and as this previously published
chart indicates, if you’re prepared to take the long-term view you shouldn’t be worried about
that lacklustre 4q22 production number, recently filed, because by 2027 this is set to be a
200,000oz/year producer and totally different kettle of fish.
MAI: Est forward sales guidance
60000
Gold ounces per qtr
55000
50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
9
12q4 22q1 22q2 22q3 tse22q4 tse32q1 tse32q2 tse32q3 tse32q4 tse42q1 tse42q2 tse42q3 tse42q4 tse52q1 tse52q2 tse52q3 tse52q4 tse62q1 tse62q2 tse62q3 tse62q4 tse72q1 tse72q2 tse72q3
Oz Au/Qtr
Fortuna Au sales
CdO Au sales
Santana Au sales
source: IKN ests from MAI data
So with a tip of the hat to MAI’s longer-term potential done, we now return to the present and
update our model based on what we can expect from the company in 2023. We value MAI on
just two of its assets:
 Operations at Santana in 2023
 Development at Cerro de Oro
That means we assign zero value to Fortuna, zero to Minera Copper, zero to the eventual
expansion expected at Santana as the pad grows and throughput ramps up. With the share
price languishing at under 40c, the task at hand is to justify an investment today, not to
promise jam tomorrow on an indefinite basis as the under-performance of MAI in 2023 and its
first month of 2023 requires either firm rebuttal or an admission that there are other, better
places for your junior gold cash.
Santana operations: The idea today is to dial down expectations and assume Santana takes

the first half of 2023 to get up to the speed we were expecting for the end of 2022. We model
1q23 and 2q23 coming in low, then by the end of the year Santana starts to churn out the
quarters it’s capable of doing on paper. All this is, of course, before any expansion takes effect
at the mine. We’ll leave the 15,000oz quarters for another anal ysis and another day, our task is
to show 2023. Here’s our new and downward revised quarterly production assumption:
MAI: Gold sales, per qtr
10
104
8512
9213
6324
0582
0054
0006
0008 0009
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
12q4 22q1 22q2 22q3 tse22q4 tse32q1 tse32q2 tse32q3 tse32q4
Au Oz
source: company data, IKN ests
That gives us a total of 27,500oz gold in 2023 and in deliberate fashion, we’re a long way from
the 35k+ previously modelled. Taken as a whole for the four quarters, input assumptions are:
 An average of 5,000tpd over 350 days, substantially below the potential 10,000tpd max
 0.66 g/t gold, lower than the previous 0.7g/t and in-line with 4q22
 75% recoveries, in-line with company guidance
These aren’t just conservative parameters, they are deliberately conservative and are back-end
weighted on the year to allow another sub-standard quarter in 1q23 as the company irons out
its water issues. We also go low on operating days and low on average grade, it would be easy
to play with this model slightly and get another 2,000 oz out of it without any of you noticing,
but that’s not the plan today. Instead, we want to underscore that no matter if MAI takes its
time to get up to speed at Santana, the mine still works and the company makes money. And
on that subject, we have more assumptions for our 2023 model and please note, we are
running our model in US Dollars
 A gold price average of U$1,800/oz (feel free to use U$1,900/oz, it adds 4c to the 12
month per-share valuation)
 COGS of U$13.50/tonne, that’s up $1 from the last model and indicates a mine cash
cost of U$859/oz. This is some $42/oz higher than MAI in 3q22 as we lean very much
to the conservative side once again
 TC/RC of 15%, 5% NSR, Mexico standard tax regime
 U$1 = CAD$1.30
 460m shares out
 Other minor tweaks
Here’s our first results table from the model:
MAI at Santana: 2023 Revenues & Op Income (U$m)
Price Deck U$1.7k/oz Au U$1.8k/oz Au U$1.9k/oz Au U$2.0k/oz Au
Prod. gold (Oz) 27,501 27,501 27,501 27,501
U$/oz $1,700 $1,800 $1,900 $2,000
gold revenues 46.8 49.5 52.3 55.0
Total COGS 25.6 25.6 25.6 25.6
TC/RC+NSR 9.0 9.5 10.1 10.6
Gross Profit 12.1 14.3 16.6 18.8
Op. Income 9.6 11.8 14.1 16.3
Sources: MAI data, IKN calcs and estimates
And here’s the way we got to that operating profit of U$11.8m in slightly more detail:

MAI.v at Santana: FY23 Condensed Income statement model (U$m)
item U$1.7k/oz Au U$1.8k/oz Au U$1.9k/oz Au U$2.0k/oz Au
Sales (U$m) 39.7 42.1 44.4 46.8
COGS 23.6 23.6 23.6 23.6
Depreciation 2.0 2.0 2.0 2.0
SGA+R&D 2.5 2.5 2.5 2.5
NSR 2.0 2.1 2.2 2.3
Op income 9.6 11.8 14.1 16.3
Interest 0.0 0.0 0.0 0.0
Workers Part. 0.8 0.9 1.1 1.3
Tax 2.5 3.1 3.6 4.2
Net income 6.4 7.8 9.3 10.8
Shares out 460 460 460 460
EPS 0.01 0.02 0.02 0.02
Sust. Capex 4 4 4 4
FCF 0.03 0.03 0.03 0.04
Sources: MAI data, IKN calcs & estimates
And that generates a per-share valuation for Santana in 2023 as follows:
Sales and earnings Target price & valuation data for MAI.v based on
Year 1.7kAu 1.8kAu 1.9kAu 2.0kAu Santana Only and U$1,800/oz gold
Sales (U$m) 40 42 44 47 12-month target C$0.39 based on 10x FCF
Sales growth 6% 6% 5%
EPS 0.014 0.017 0.020 0.023 Mkt cap (CAD$m) $181 Enterprise value $172
FCF 0.027 0.030 0.033 0.036 P/sales (1.7kAu) 4.30 EV/sales (1.7kAu) 4.08
P/E (1.7kAu) 28.5 EV/EBITDA (1.7kAu) 14.8
P/E (1.8kAu) 23.2 EV/EBITDA (1.8kAu) 12.4
P/E (1.9kAu) 19.5 EV/EBITDA (1.9kAu) 10.7
We’re using a 10X free cash flow multiple because Santana is no longer a mine for the future
and 10X is reasonable for a small and profitable gold operation. As a result, we’re at 39c/share
for MAI at Santana, which means in simple terms that the whole of its current share price and
market cap is covered by this one mine. Now for the upside for this year:
Cerro de Oro development: Now we turn to a valuation for Cerro de Oro and this won’t take
as long as there are only minor changes to our previous economic model (see IKN706,
IKN703). Most of the model is left untouched and as a result, we still have a model year
producing a little under 63,000oz gold at a cash cost of around U$800/oz. We also go with the
same type of global financial parameters and update inputs as required, this short list
containing a couple of them. Effectively, the only big changes are 1) the gold price assumptions
and 2) our new lower multiple for the per-share target price, as we need to take into account
the poor delivery on plans from MAI in 2022 and not blithely assume the same levels of trust as
the company enjoyed before from the wider market. Here’s that quick list of changes:
 Gold price assumptions now start at U$1,700/oz and as with Santana above, we use
U$1,800/oz as our baseline
 The CAD/USD forex is now 1.3/1 (previously 1.2/1).
 Operations begin in the second half of 2024, with CdO at full speed in 2025 (we still
use a “model year” valuation)
 We’ve out the FCF multiple on the target from 6X to 4X to take into account lower
market confidence in MAI at present, as well as the slight push back of full scale ops
So to the model and as you can see, Cerro de Oro on paper is still a real money-spinner of an
operation:
11

MAI at CdO: Model Year Revenues & Op Income (U$m)
Price Deck U$1.7k/oz Au U$1.8k/oz Au U$1.9k/oz Au U$2.0k/oz Au
Prod. gold (Oz) 62,971 62,971 62,971 62,971
U$/oz $1,700 $1,800 $1,900 $2,000
gold revenues 107.1 113.3 119.6 125.9
Total COGS 53.4 53.4 53.4 53.4
TC/RC+NSR 15.5 16.4 17.3 18.3
Gross Profit 38.1 43.5 48.9 54.3
Op. Income 33.1 38.5 43.9 49.3
Sources: MAI data, IKN calcs and estimates
In similar style to Santana, here’s the condensed income statement breakdown for our model
year:
MAI.v at CdO: Condensed Income statement model (U$m)
item U$1.7k/oz Au U$1.8k/oz Au U$1.9k/oz Au U$2.0k/oz Au
Sales (U$m) 96.3 102.0 107.7 113.3
COGS 50.4 50.4 50.4 50.4
Depreciation 3.0 3.0 3.0 3.0
SGA+R&D 5.0 5.0 5.0 5.0
NSR 4.8 5.1 5.4 5.7
Op income 33.1 38.5 43.9 49.3
Interest 2.5 2.5 2.5 2.5
Workers Part. 2.5 2.9 3.3 3.7
Tax 7.9 9.3 10.7 12.1
Net income 20.3 23.9 27.4 31.0
Shares out 460 460 460 460
EPS 0.04 0.05 0.06 0.07
Sust. Capex 2 2 2 2
FCF 0.05 0.06 0.07 0.08
And at U$1,800/oz gold and just 4X multiple, the target is a low one compared to wjat it might
be at the end of 2024 when about to deliver its first full year of production:
Sales and earnings Target price & valuation data for MAI.v based on
Year 1.7kAu 1.8kAu 1.9kAu 2.0kAu CdO Only and U$1,800/oz gold
Sales (U$m) 96 102 108 113 12-month target C$0.32 based on 4x FCF
Sales growth 6% 6% 5%
EPS 0.044 0.052 0.060 0.067 Mkt cap (CAD$m) $228 Enterprise value $219
FCF 0.054 0.062 0.069 0.077 P/sales (1.7kAu) 2.23 EV/sales (1.7kAu) 2.14
P/E (1.7kAu) 11.2 EV/EBITDA (1.7kAu) 6.1
P/E (1.8kAu) 9.5 EV/EBITDA (1.8kAu) 5.3
P/E (1.9kAu) 8.3 EV/EBITDA (1.9kAu) 4.7
To give a quick hint on the potential that I could have dialled into this per-share valuation, at
10X FCF and U$1,900/oz the target moves to C$0.90.
Bottom line to valuation: At U$1,800/oz gold, arguably U$100/oz lower than today’s spot and a
figure that many expect to be left behind as 2023 moves ahead, we get C$0.39 in share value
from Santana in 2023, even at its lowered production expectation, without factoring in much of
the potential upside and assuming it only runs this year at 50% of its nominal 10,000tpd as the
year averages out. We then get C$0.32 in share value from Cerro de Oro at a low multiple and
the same very conservative input parameters seen before. The combined total of C$0.71 is
close enough to the current 75c price target not to warrant any adjustment, particularly as I
12

made sure to pitch lowball on so many of the input parameters.
Discussion and conclusion
That the 4q22 production came in low and disappointed the market is undeniable. However, it’s
not even necessary to consider the big picture at MAI to make it an obvious purchase today, all
we need is a Santana that takes its time in 2023 to get up to its stage one speed and a Cerro
de Oro that moves as expected through its permitting track this year
 We attribute zero value to Santana upside
 Zero value to Fortuna
 Zero value to Minera Copper
 Zero value to its strong financial position and C$13m of treasury
We affirm and ratify our current 75c target on Santana and Cerro de Oro alone, and on what
we can expect from them in 2023 alone. The world may be worried about “the water issue” at
Santana and imagining some desolate Mexican desert scene where water doesn’t exist and
equipment lays idle for months or years. Not so, because even in a worst-case situation MAI
has (or will soon have) a workaround that will allow them to keep production running at level
that may not be full speed, but will always be profitable. Meanwhile, the leach pad has show it
works, so “just add water” and the mine will leave these early stage glitches far behind. As for
Cerro de Oro, it will be far more valuable on a per share basis once it’s up and running but even
in 2023, its value makes MAI at under 40c today a clear and obvious bargain.
It’s been “fun” in a masochistic way to tune into the MAI bullboards and social media to gauge
the sentiment among long-term holders,
traders, even detractors and troll bashers.
But one thing that’s been missing from the
conversation is a real, substantive look at
what Minera Alamos is today and what it
offers as a fundamentals-driven investment.
Even under the lower targets outlined today
and knowing what we now know about the
delays in production growth at its first
mine, this is one of the most obvious long
propositions in the world of juniors, so
accuse me of being a fanboy permalong if
you like but there’s no way around it. This
is a Top Pick.
Stocks to Follow
Just two week-over-week winners for our Stocks to Follow list, though it so happens that by
luck or judgment both Orefinders (ORX.v up 12.5%) and Minera IRL (MIRL.cse up 33.3%) were
both big percentage moves. One other stock remained unchanged on the week (RIO.v) which
leaves a lot of losers, so we’ll keep things concise and only note the two double figure drops
Mene Inc (MENE.v down 12.6%) and ATAC Resources (ATC.v down 12.5%). Considering the
heavy drop seen in gold and the metals on Thursday and Friday, walking away with mostly
minor losers isn’t too bad.
With the sale of Altiplano Metals (APN.v) we’re down 15 stocks on the table below and 12 of
them owned, five below our self-imposed maximum and leaving plenty of room to add new
trades as long as the market is conducive in 2023. Seven are in the green, eight are in the red.
13

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$0.395 88.1% $0.75 first tgt, #1 idea
RECOMMENDED STOCKS
Amerigo Res ARG.to STR BUY C$1.36 12-Dec-21 C$1.47 8.1% Main Cu trade, top fundies
Western Copper WRN.to BUY C$2.02 13-Nov-22 C$2.35 16.3% M&A potential in FY23
QC Copper&Gold QCCU.v HOLD C$0.275 25-Apr-21 C$0.155 -43.6% MRE now due 2q23, annoying
Newcore Gold NCAU.v BUY C$0.21 23-Oct-22 C$0.25 19.0% Cheap now, MRE any moment
AbraSilver Res. ABRA.v STR BUY C$0.37 4-Dec-22 C$0.325 -12.2% Added end Jan, v cheap
Rio2 Ltd. RIO.v HOLD C$0.83 22-Apr-18 C$0.215 -74.1% Cheap on permit probs, appeal
SPECULATIVE TRADES
Orefinders ORX.v.v SPEC BUY C$0.04 23-Oct-22 C$0.045 12.5% build position at 4c
Chesapeake Gold CKG.v SPEC BUY C$3.07 20-Feb-22 C$2.15 -30.0% Au leverage, small trade so far
Aldebaran Res. ALDE.v BUY C$0.72 16-May-21 C$0.89 23.6% drill assays from March'23
Minera IRL MIRL.cse avoid C$0.195 22-Jul-12 C$0.06 -69.2% run into ground by CEO,AVOID
A WATCHLIST OF POTENTIAL TRADES. NB: I DO NOT OWN
ATAC Res ATC.v WATCH C$0.095 11-Sep-22 C$0.07 -26.3% Cheap Yukon neighbour play
Contango Ore CTGO WATCH U$23.25 2-Dec-22 U$24.00 3.2% watching for financinf package
Anacortes Mining XYZ.v WATCH C$0.49 22-Jul-22 C$0.41 -16.3% may drop from watchlist
LONG-TERM NON-MINING HOLD
Mene Inc. MENE.v adding C$0.65 6-Dec-20 C$0.38 -41.5% LT bet, adding slowly
CLOSED TRADES IN 2023 date closed close price
Altiplano Metals APN.v jan'23 C$0.31 17-Sep-21 C$0.17 -45.2% delayed and will dilute soon
2015 to 2022 annual closed positions in appendices below, 2009 to 2014 closed positions in editions IKN553 or earlier
Now for notes on some of the covered companies:
Altiplano Metals (APN.v): POSITION CLOSED. A brief note to confirm that I’ve twken my
loss and moved on. As it turns out, it was fairly easy to sell and move on as volume remained
healthy on most trading days and made the job straightforward.
Amerigo Resources (ARG.to): The stock drifted with copper as we await ARG’s year-end
financials, due pre-open on Ash Wednesday (February 22nd) and lost 8c on the week in
moderate trading. We also got the first share buyback bulletin from the company, as seen in
this table on the company’s dedicated page (2):
We note that due to the YE financials blackout period, buybacks will be restricted to just four
trading days of February. So we may see some buying then, but as long as copper holds where
it is March should see more buybacks. Unlike so many other junior miners, when ARG opens a
NCIB facility it actually uses it.
Aldebaran Resources (ALDE.v): A slight negative to report, as multiple attendees of the
VRIC conference in Vancouver last week reported to this desk that the John Black and Kevin
Heather told them they were looking to get the next round of drill assay results to the market at
14

some point in March. That means April at the earliest.
In trading, ALDE lost a penny on moderate traded volume. Nothing has changed and the
seemingly interminable wait for a reasonable selling window continues.
Newcore Gold (NCAU.v): January came and went without the MRE announcement from
NCAU, but it’s going to be sooner rather than later
and I wouldn’t be at all surprised to see it drop in the
next five days. Trading was lacklustre in the stock and
NCAU drifted lower on a lack of market interest in the
story, though it was probably unlucky to sell off so
sharply on Friday…then again, Friday was “one of
those days”. It’s up to the company to grab the
world’s attention and we are waiting for the
razzmatazz on the back of an updated 2m+oz gold
resource.
Minera IRL (MIRL.cse): Weirdly enough, after
trading literally nothing for two weeks, MIRL suddenly
came alive with a burst of trading and five days of action. Here’s the table showing the last 25
trades as seen on the CSE dedicated website (8) and frankly, I have no idea why it suddenly
perked up but would suggest 6c as a decent exit point for anyone thinking of getting rid of their
remnants before Cofide forecloses on Ollachea in November.
We’ve heard very little from MIRL regarding its Corihuarmi mine and the closure plan was
supposed to have been completed and filed by the end of last year (a document that should be
filed to the Peru BVL website, but so far hasn’t shown). As this was part of the deal reached
between company and locals in October last year, it begs the question as to whether the
company is going to keep its part of the new deal. If not, the Peru macro backdrop is volatile
enough to see locals try to take matters into their own hands again.
15

Western Copper & Gold (WRN.to): Last week saw one of those “Hello We Exist” arm-
waving NRs from WRN, that tried to manufacture an angle of marketing for the stock and its
story but in real terms, said nothing new. The NR announced (3), “…the results of an updated
study on the potential economic impact of the development of its wholly owned Casino Copper-
Gold on the Yukon and Canada recently completed by MNP LLP” and had this as the main info
paragraph:
The Report highlights the impressive cumulative economic effect that developing
Casino will have on the Yukon and Canada during the project’s construction, operation,
closure, and reclamation. The Casino project is estimated to contribute $44.3 billion to
Canada’s Gross Domestic Product (“GDP”), create 132,280 full-time equivalent
positions (“FTE”), and generate $12.8 billion in wages and salaries over the entire life
of the Project. Note that the use of FTEs is a method to account for partial
employment or employment for different durations and 1.0 FTE is equivalent to a full-
time job for one year of employment.
In other words, 4,900 full time jobs over the 27 year life of mine. These numbers won’t affect
our trade, nor are they likely to nudge WRN’s suitors into action. In trading, WRN sold off in line
with most copper stocks, losing 10c and closing at C$2.35. I’d prefer it to be back over the
C$2.50 line but that’s the way it is for the moment, we await some sort of competitive tension
between RTZ and NEM, or some rumour mongering.
The Copper Basket
After five weeks of 2023, The Copper Basket shows a gain of 4.45% to level stakes:
company ticker price 1/1/23 Shares out Market Cap current pps gain/loss%
1 Solaris Res SLS.to 6.44 114.56 793.90 6.93 7.6%
2 Western Copper WRN.to 2.41 151.597 356.25 2.35 -2.5%
3 Marimaca Cop MARI.to 3.22 88.028 307.22 3.49 8.4%
4 Arizona Sonoran ASCU.to 1.92 105.96 212.98 2.01 4.7%
5 Oroco Res OCO.v 0.91 207.034 163.56 0.79 -13.2%
6 Faraday Copper FDY.to 0.54 166.137 132.91 0.80 48.1%
7 Aldebaran Res. ALDE.v 0.78 138.579 123.34 0.89 14.1%
8 Hot Chili HCH.v 0.78 119.455 105.12 0.88 12.8%
9 Regulus Res. REG.v 1.10 124.51 103.34 0.83 -24.5%
10 Pan Global Res PGZ.v 0.46 212.145 93.34 0.44 -4.3%
11 Kodiak Copper KDK.v 1.12 55.6 50.04 0.90 -19.6%
12 QC Copper QCCU.v 0.165 150.736 23.36 0.155 -6.1%
13 Libero Copper LBC.v 0.155 90.669 16.77 0.185 19.4%
14 Element 29 Res ECU.v 0.16 86.966 14.78 0.17 6.3%
15 Atacama Copper ACOP.v 0.16 34.373 6.36 0.185 15.6%
NB: All stocks in CAD$ Portfolio avg 4.45%
Despite the drop in the price of copper and the headcount of our 15 component stocks being
against our favour, The Copper Basket managed
to beat the odds and improve by 1.76% week- 10% The Copper Basket 2023, weekly evolution
over-week. There were six winners (OCO.v, 9%
ASCU.v, FDY.to, ECU.v, LBC.v, ACOP.v) and nine 8%
7%
losers (SLS.to, WRN.to, MARI.to, ALDE.v, HCH.v,
6%
PGZ.v, KDK.v, QCCU.v) on the week, but the 5%
overall average benefited from the big 4%
3%
percentage moves in Libero Copper (LBC.v up
2%
32.1%), Atacama Copper (ACOP.v up 15.6%)
1%
and Faraday Copper (FDY.to up 9.6%). 0%
Jan1st Jan8th 15th 22nd 29th feb5th
16 source: IKN calcs

Compared to those, the worst losers were Regulus (REG.v down 15.3%) and Kodiak (KDK.v
down 8.2%), with most of the other losers relatively small scale.
Today marks the debut of the 2023 basket tracking chart (right) and without setting the world
on fire, it’s so far so good . Last week’s percentage gain into the teeth of a sector sell-off is the
added bonus. That segues us into our weekly look at a copper chart, this time we have two as
the longer-term chart (below left) shows that despite the sharp selling of last week, we’ve spent
the last four at prices over U$4/lb. But the real news is below right, the ten day chart that
shows how the perfect storm rose up around copper and whacked the price of the most liquid
futures contract, Comex HG23 (March), to U$4.03/lb by the close Friday:
Copper was knocked down by something of a perfect storm:
 Reports of weakness and rising metals inventories in the China market
 A nervous market into the FOMC statement
 The negative delayed reaction to the FOMC on Thursday
 The blow out US jobs number
By Friday midday bears were in full control and copper was walked down to its U$4.03/lb close
on our preferred March futures contract. As for the Chinese newsflow, it’s still early days after
the Chinese New Year holidays (parts the country’s economy takes a week off, others take two
weeks) but the narrative emerging in the English-speaking media is of a country that is certainly
re-opening after its long Covid-lockdown period, but one that has enough raw materials for the
time being. That applies to metals and this report that centres on zinc was typical of the line
last week (4):
Three-month zinc CMZN3 was the biggest loser on the London Metal Exchange (LME)
as it dropped 1.7% to $3,325.50 a tonne by 1110 GMT, having gained 12% so far this
year.
Zinc stocks on the LME have sunk to the lowest levels since 1989 but have soared in
China.
Inventories in warehouses registered with the Shanghai Futures Exchange ZN-STX-
SGH have more than doubled to 91,616 tonnes since Jan. 20, data showed on Friday
in the first such report since China’s Lunar New Year holiday.
That was evidence that metals demand in China will take time to increase, said
Edward Gardner, commodities economist at Capital Economics.
“We think that metals prices will struggle to make gains this quarter, (and) if anything
fall a little bit, before starting a more sustainable upturn around the middle of the year,”
he said.
So I thought I’d check on Edward Gardner and from his mug shot, he must be around 25 years
old and looks 17 (5). At least he does to me, but Mr. Gardner might want to check metals
seasonality because if SHFE inventories don’t rise sharply this time of year there’s something
very wrong. As for copper, the Peru political situation was used as a reason for its relative price
resilience before Friday came along but that went out the window with Friday’s selling. As a
result, it’s easy to discard the SHFE stocks situation when it’s used in post-mortems on copper
this week, the stock situation in China is normal and tight in LME warehouses, the same as
17

before. Therefore, the dumpage last week was all about the US macro prints, their effect on the
US Dollar and the algos adjusting their positions to allow for a Fed that may have to raise rates
higher than anyone expected this time last week in order to tame inflation.
We move to the inventory data and as the end of January has just gone, we start with the long-
term charts:
Key Cu inventory aggregate, 2012 to date
1000000
900000
800000
700000
600000
500000
400000
300000
200000
100000
0
18
21.naJ ram yam luj pes von 31.naJ ram yam luj pes von 41.naj ram yam luj pes von 51.naj ram yam luj pes von 61.naj ram yam luj pes von 71.naj ram yam luj pes von 81
naj
ram yam luj pes von 91
naj
ram yam luj pes von 02
naj
ram yam luj pes von 12
naj
ram yam luj pes von 22
naj
ram yam luj pes von 32naj
Mt Cu
Comex
Shanghai
LME
source: Cochilco
To the right of the upper chart, we see the big jump in SHFE inventories that we go into in
closer detail below. More interesting is the percentage chart below, as the influx of copper to
SHFE and the continued tightness of LME stocks means that over 70% of all copper held in the
world’s three official systems is now in SHFE stores. That’s an all-time record and as much a
commentary on the lack of LME copper stocks as the return to normal seasonality at SHFE.
Copper inventories: percentage held per exchange
80
70
60
50
40
30
20
10
0
21.naJ ram yam luj pes von 31.naJ ram yam luj pes von 41.naj ram yam luj pes von 51.naj ram yam luj pes von 61.naj ram yam luj pes von 71.naj ram yam luj pes von 81
naj
ram yam luj pes von 91
naj
ram yam luj pes von 02
naj
ram yam luj pes von 12
naj
ram yam luj pes von 22
naj
ram yam luj pes von 32naj
LME Shanghai Comex source: Cochilco
That’s the monthlies done, now it’s time for the regular weekly update on the world copper
inventories, with data from Cochilco:
 A big week for copper inflows, as the aggregate of copper inventories in world’s three
official systems rose by 80,361 metric tonnes (mt) to close Friday at 321,641mt and the
move was all about Shanghai, the end of the Chinese New Year period and a return to
what looks like normal seasonality for copper in China.
 It’s all the SHFE all the time, as a lack of outflows and massive arrivals at port
combined to add a cool 86,542mt to SHFE stocks on the week. Take a look at the
dedicated SHFE charts below for the visual interpretation of this inflow, but there seems
to be a combination of factors in play. First, SHFE has been attracting stocks by paying
better premiums than LME or the unofficial stores, second China got well stocked into
the Christmas period in a return to the normal business cycle that had been previously
disrupted by Covid, third the Chinese New Year came early on our Calendar this year.
 So while SHFE got all the copper, we saw another modest drop from an already tight
position for LME. Copper inventories here dropped by 3,975mt to close at exactly
70,000mt.
 And for a second week, Comex saw a large drop in stocks of 2,206mt to close at
25,132mt.
The long-term dedicated SHFE tracking charts show the big inflow of metal into China, which
Mr. Gardner believes to be bearish (and it suits the narrative of last week’s sell-off, of course)
but in a normal year wouldn’t be a biggie.

Shanghai Futures Exchange Warehouse Stocks, 2014 to date
400000
350000
300000
250000
200000
150000
100000
50000
0
19
31'13ceD dr32 ht51 ht7 ht03 dn22 ht71 ht9 ts1von ht42 ht71 ht01 dn2tcO 7102ts1naJ ht62 ht81 ht01 dr3ced ht52 102ht72rpa ht91 ht11 9102
dr3bef
102ht82rpa ts12 ht31 0202ht5naj 202ht92ram ts12 ht31 0202ht6ced ht82 dr32 ht51 ht7 202ht03naj ht42 ht71 ht9 3202
naJ
Mt Cu
|
source: Cochilco
SHFE copper inventory levels, 2018 to 2023
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 2023
2022
2021
2020
2019
2018
source: Cochilco data
I’d agree the move is coming earlier in the cycle, as seen in the lower chart, but the first week
of the post-holiday season isn’t when you can gauge overall demand. That comes later when
the top shows, so all eyes on the 300kmt line.
Now for a few notes on some basket component
stocks:
Libero Copper (LBC.v): A heavily promoted stock,
LBC got the pumpo on the back of the MIF/VRIC
Vancouver conferences and popped hard to 20c by
midweek. Then came a nothingburger NR regarding
a 2.1km access road driven into the Mocoa project in
Colombia via an agreement with a small group of
locals. The issues at Mocoa are greater, with first
and foremost the drilling permits the company is not
going to get anytime soon.
Faraday Copper (FDY.to): Another very positive week for the copper stock of 2023 to date.
First up was the NR Tuesday January 31st (6) that came with the impressive title line:
Faraday Copper Reports 33.77 metres at 3.43% Copper within 65.20 meters at 1.88%
Copper at Copper Creek in Arizona
That’s a good hole by any standard. Even though this is a notes section, we’ll run two of the
visuals from the FDY NR and use up more space than normal, starting with the plan view and
we note in passing that the second assay returned from the “glory hole” area was a total
duster. As for the headliner, that came from the “Copper Knight” zone where plenty of historic
holes have already been drilled, so it wasn’t as if FDY was going in blind, but the width and
strength trumps that and indicates the strength of the system they are now uncovering at
Copper Creek

The section diagram shows the sweet spot that FDY hit, though the halo around it was weak it’s
still close enough to surface and right in line with the geology of the Copper Knight Breccia.
Expect more holes in this area in 2023, for sure.
Then FDY took full advantage of the momentum it has built by following up with this news (7)
on Thursday post-bell, after seeing the stock price rocket to 84c during the trading day:
“…entered into an agreement with a syndicate of underwriters led by Canaccord
Genuity Corp. on behalf of a syndicate of underwriters (collectively, the “Underwriters”),
pursuant to which the Underwriters have agreed to purchase, on a bought deal basis,
37,500,000 common shares in the capital of the Company (the “Common Shares”) at a
price of C$0.80 per Common Share for gross proceeds to the Company of
C$30,000,000.”
The deal comes with a 15% overallotment facility and I’d be surprised if that didn’t fill. As noted
in the NR, a portion of the proceeds for the placement are going towards the purchase of a
cattle ranch located adjacent to the Copper Creek project. Regarding this, I had an informal
exchange with one of the C-suite members of FDY who told me they’d been doing their DD on
this purchase for a few months and had decided to move ahead as it demonstrates “senior
company mindset”, de-risks the project and while not an immediate value-add, is the type of
move that would be appreciated by the eventual operator of any Copper Creek mine.
I don’t mind admitting to be quietly impressed by the strategy and thought gone into that
decision, it’s not something that would occur to the fly-by-night management teams so
prevalent in this sector. So well done FDY for both pieces of news, another strong drill assay
and good corporate moves. The new share count in the table above assumes the current
financing closes with the overallotment facility fully taken and notably, FDY is now in 6th place
in our market cap league table. Not bad for a month and a bit, as it started January 1st in 10th.
Arizona Sonoran (ASCU.to): Some odd coincidences between ASCU and FDY at the
moment:
 Both copper explorecos
 Both with flagship asset in USA
 Both make a flying start in 2023
 Both run a C$30m financing within a week of each other
20

 Both are shareholder-friendly bought deals with no warrant attached and a 15 overallot
We noted the ASCU deal last weekend, priced at C$2.00, the ten-day chart is that of a company
in the process of filling its placement book completely. To wit, I have adjusted the share count
in the table above to prorate 115% of the currently open placement.
Pan Global Resources (PGZ.v): First thing Monday morning came news for PGZ (8) of their
2023 exploration and development plans, mainly a 20,000m drill program of at least 50 holes as
Escacena, which PGZ stated as fully funded (whatever that may mean, as it wouldn’t stop a
“top up financing” if they so choose). The stock traded flat all week and we now have a
roadmap for newsflow for the months ahead. Watching.
Regulus Resources (REG.v): Excuse me while a have a rant. On Wednesday, REG
announced (9) the outstanding assays from its recently completed program and…the results
were not outstanding. The hits were low-ish grade and the
lengths didn’t sparkle either, so while we were told how
“geologically interesting” they were by the team during the
company’s webinar on Friday, you’ll be able to spot where
the news was factored into the ten-day price chart (right)
easily enough. We also got confirmation that the 7,500m of
drilling at the BVN JV zone Colquirrumi* and now, BVN has
until February 22nd to decide on whether to claw back to
70% by paying REG U$9m, or to leave REG with 70%
ownership. As mentioned previously, I would be very
surprised if BVN doesn’t exercise its clawback option, no
matter how mediocre the latest drill assays may have been.
Speaking of the webinar, indeed we saw Messrs Black and Heather appear on a one hour live
webinar on Friday (recording here (10)) which went over the drill results and mapped out the
future milestones and expected catalysts for the company. This slide from the corporate
presentation has the two items worthy of mention here.
First, the resource estimate for AntaKori has been put back slightly and is now scheduled for
the end of this year. Considering this team’s abysmal track record of keeping to schedule, let’s
now pencil in 2024 for that number.
Second, John Black took time to talk up a deal that he cannot talk about. Apparently there are
confidential discussions going on between parties that will allow this or that result to happen
and then, everything will be fine and man oh man, when will these people ever learn? What
we’re supposed to glean from his cryptic clues is some sort of deal is being thrashed out
between mine owners Coimolache and REG. From there, REG will be able to incorporate the
whole of the AntaKori resource into its eventual 43-101 technical reports and economic studies.
CEO Black made the point that the current Coimolache oxides operation was due to deplete out
in five years, so it made all the sense in the world for Coimolache (i.e. Buenaventura as
operator) to get a deal done now on the underlying sulphides. Which is fair enough, but he
somehow forgot to mention that BVN/Coimolache has been working on its own sulphides
21

project for Coimolache for the past couple of years and in December, mentioned that it would
present its own pre-feas for “Coimolache Sulphides” in the second quarter of this year. We
await the details, but its apparent plan is to build a smaller , 20,000tpd to 30,000tpd operation
on its wholly-owned land and as such, will have no need to JV with its neighbour REG or the
AntaKori project area.
REG dropping cryptic hints of secret deals is all well and good, but it’s exactly this attitude that
saw the company try to drip feed information to the market and fail to offer a single official NR
for the entire year of 2021. Now they’re at it again and what’s more, failing to mention the clear
position of weakness they have in the negotiations with BVN/Coimolache. Therefore and to
make things simple, two lines:
 REG needs to cut a deal with BVN
 BVN does not need to cut a deal with REG
BVN/Coimolache has land position, infrastructure, funding, history and time on its side, as well
as deep ties to the region. For sure REG can try to build competitive tension by getting in
strategic investors and do potential JVs with others (e.g. GFI) but if BVN so desires, REG and
any mine development on the AntaKori area can be left withering on the vine for a couple of
decades. So be clear, any deal will be done on terms that suit BVN or not at all and John Black
needs to realize, once and for all, that gossiping and off-record hint-dropping does not become
a modern CEO. Another thing that might improve negotiations is if, after six years of the
collaborative agreement, Kevin Heather learned to pronounce “Buenaventura” correctly.
And that’s the end of an other rant on REG. I took flak for dropping this stock from my portfolio
coming on three years ago but that’s okay, because it’s turned out to be the right call and nigh
on everything that’s happened since then has only confirmed that decision. Its management
team are using the same whispering strategy to attract attention from the retail community but
still to no avail, as its traded volume in 2023 as low and illiquid as ever. Maybe they should
take a step back, think about all this “off record” intel dropping they love to do and considering
whether there might be a better way. Meanwhile, REG will have its hardcore fanclub who will
insist it is the “stock of the future” until the cows come home but, while this desk is the first to
admit that its rocks, size and potential economics would make any eventual mine built on top a
mouth-watering opportunity, the basic red flags around the corporate politics remain as per. If
and when there’s serious change to the way AntaKori is owned or developed between its
partners (be that in “collaborative agreement”, JV or other) there may well be an excellent
trade in the offing here, but until something substantive happens on the corporate business
front there’s a long list of more attractive ways to play the copper exploreco sector.
*REG even managed to spell Colquirrumi incorrectly on the company’s webinar presentation:
I know this probably seems petty to you, but to me it’s a tell on the lack of
understanding of where they are and what they are doing. Here are some Quechua
words:
 Anta: Copper
 Cori/Kori: Gold
 Colqui: Gold miner
 Rumi: Stone
That’s where “AntaKori” comes from as a name, of course (though the recent
unofficial adaptation “TantaKori” is silly, it means Bread Gold). Therefore
“Colquirrumi” is also a Quechua compound word, roughly in English “the mineral of
the gold miners”. In fact, “rumi” is a common word even today and you’ll often see
it printed in Quechua speaking areas of the Andes, (e.g. town names or hotel
names in Peru). Whether or not it would grate on local sensibilities the same way
Kevin Heather’s “Boner venture” must pain the ears of Raul Benavides is not the
point, what is the point is the lack of understanding shown by REG for its locality
after six years of operations there. Nobody who knows the area or even the wider
Andean uplands of Peru, North to South, would ever spell “rumi” with two Ms, so
why do these people?
22

The Producer Basket
After 5 weeks of 2023, the Producer Basket shows a gain of 4.54% to level stakes:
company ticker price 1/1/23 Shares out MktCap(U$Bn) current pps gain/loss%
1 Newmont NEM 47.20 799 39.83 49.85 5.6%
2 Barrick GOLD 17.18 1761.54 32.27 18.32 6.6%
3 Agnico Eagle AEM 51.99 488.9 25.64 52.44 0.9%
4 Wheaton PM WPM 39.08 451.963 19.88 43.98 12.5%
5 Kinross Gold KGC 4.09 1256.1 5.50 4.38 7.1%
6 Alamos Gold AGI 10.11 393.1 4.19 10.65 5.3%
7 B2Gold BTG 3.57 1074.567 4.07 3.79 6.2%
8 Hecla Mining GFI 5.56 603.86 3.59 5.94 6.8%
9 Eldorado Gold EGO 8.36 185.73 1.74 9.35 11.8%
10 Wesdome Gold WDOFF 5.53 142.287 0.65 4.56 -17.5%
All prices and stock quotes in U$ Port. avg 4.54%
After a couple of week in which the larger cap producers tried to consolidate their early year
gains, last week was the first outright negative week for our Producer Basket and all ten of our
stocks headed South. Losses varied from least-worst Eldorado Gold (EGO down 1.4%) and the
more defensive Wheaton (WPM down 3.7%) to the biggest drops in Kinross (special K down
8.6%), Agnico (AEM down 7.8%) and early-year springer Barrick (GOLD down 6.9%). In
general, the larger-weighted GDX stocks fared worse and the feeling of Wall St instos all hitting
the big red SELL button at the same time on Friday is difficult to avoid.
Our tracking charts debut today and, as seen, we did slightly better than GDX last week and
managed to claw back some of the losses taken when Wesdome (WDO.to) (WDOFF) sank badly
on its Q4 news and issues. We’re still 1.25% behind, however.
The 2023 Producer Basket: Weekly performance and The 2023 Producer Basket: Percentage difference
20% comparative to GDX control between GDX benchmark & basket (negative = IKN ahead)
18% 4.0%
16% ikn 3.5%
14% gdx control 3.0%
12% 2.5%
10%
2.0%
8%
1.5%
6%
1.0%
4%
2% 0.5%
0% 0.0%
Jan1st Jan8th 15th 22nd 29th feb5th Jan1st Jan8th 15th 22nd 29th feb5th
source: NYSE, IKN calcs source: IKN calcs, NYSE data
Eldorado Gold (EGO) (ELD.to): I didn’t mention this at the time and probably should have
done. This chart shows the last two months of
EGO vs benchmark GDX, a period that doesn’t
include the bump EGO got from its decision to
move forward on the E680m Skouries gold
project.
On January 16th EGO reported its 4q22 production
numbers to the market (11) and as you can see,
the news got a cautious but eventually favourable
reception and EGO has now pulled out an approx
11% lead over the peer median ETF. We’ll dial
back into this new basket stock come February
24th and its YE financials report, due that day.
23

Wesdome Gold (WDOFF) (WDO.to): I was pointed toward this interview (12) (requires
registration) between WDO’s Chairman and Interim CEO, Warwick Morley-Jepson and Arun
Lamba, analyst at TD Sec, dated January 25th and those interested in the stock should take a
listen. In the approx 25 minute audio interview, we first learned that just after Christmas ex-
CEO Duncan Middlemiss had approached the company and said he wanted to retire, the end of
a exchange that had gone on for most of 2022. His petition was accepted and Morley-Jepson
was willing to step in as interim while the search for a new permanent CEO goes on.
 Interim CEO Morley-Jepson then went on to address Kiena and its supply shortfalls in 2022
and said that while the plan is indeed delayed, the company is going to make its slow and
steady progress and the ramp development for Kiena Deeps is critical path. That deeper
mineralization should be accessed by the end of this year and by the second quarter of 2024,
will get to the highest grade of Kiena Deeps. He used “transition year” and “catch-up year” to
describe 2023.
 Then there was section talking about Eagle River (they are keen on the potential of the Falcon
zone) and reiterating its conservative-leaning guidance for FY23.
 Regarding the financial issues at WDO, Interim CEO Morley-Jepson said that the company
hadn’t made much use of the ATM share sale facility to date and that they’d tapped around
C$55m of the current revolving credit facility. That compares to around C$52m as at the last
published date, November 9th, and means that still have C$95m available in that facility. As
for capital spend, Interim CEO Morley-Jepson said that the biggest outlays come in mid-2023
for the remaining Kiena capex. The overall impression is that WDO is going to remain under
balance sheet pressure in 2023, as we’ve previously modelled, though Interim CEO Morley-
Jepson expects that it can cover all plans under budget without any new facility and without
any liquidity issues. Finally, he made generic and classic sounds on M&A that ultimately means
little (“duty to shareholders”, “our current share price is too low”, “will consider any serious
offer”, blah blah)
The bottom line: The colour on the Middlemiss departure was welcome, though we only got
one side of the story. Eagle River isn’t a top worry and there’s no reason to believe it won’t
deliver on its low-end guidance this year. Kiena is clearly going to take some time and the the
sounds of things, we shouldn’t expect the type of blueprint quarter we imagine from the
company until at least 1q24, probably 2q24. In the meantime WDO is going to have the cash
and liquidity required to finish the build-out and the timing of outlays seem to suit the
company’s current weak balance sheet position, but
by the same token we’re not likely to see a
significant improvement in the balance sheet until
2024. Overall, Interim CEO Morley-Jepson painting
of 2023 as a “transition year” for WDO sounds
right, but that also means there’s no need to start
rushing back into this stock. On the other hand, the
way WDOFF didn’t drop with the rest of them over
Thursday and Friday last week suggests seller
exhaustion and it’s likely the bigger insto holders
had already dumped their shares on the bad
newsflow in January.
The TinyCaps List
After five weeks of 2023, the TinyCaps show a gain of 25.89% to level stakes:
24

company ticker price 1/1/23 Shares out Mkt Cap current pps gain/loss%
Aurelius Min AUL.v 0.07 49.787 3.49 0.07 0.0%
Coast Copper COCO.v 0.045 64.001 3.52 0.055 22.2%
District Metals DMX.v 0.075 86.891 11.73 0.135 80.0%
Latin Metals LMS.v 0.13 69.962 17.14 0.245 88.5%
Manitou Gold MTU.v 0.02 344.568 8.61 0.025 25.0%
Nine Mile Metals NINE.cse 0.29 57.025 14.26 0.25 -13.8%
Palamina Corp PA.v 0.08 65.285 6.85 0.105 31.3%
Precipitate Gold PRG.v 0.075 130.367 11.08 0.085 13.3%
South Star STS.v 0.55 32.755 17.69 0.54 -1.8%
Viva Gold VAU.v 0.14 91.608 14.66 0.16 14.3%
Prices in CAD$, data from TSXV basket avg 25.89%
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 2023. This connects to the company’s “unbroken” status, as we
want news and potential catalysts from companies with projects that can work.
 Decent management if possible. When you are down among the little guys it doesn’t pay to be too
choosy, but still I preferred companies that have teams or people with good peer reputations.
The good start to the year for this basket continues and the average managed to brush off the
reversal in the larger cap sector stocks, with four
TinyCaps, 2023 weekly tracker
winners (AUL.v, LMS.v, PA.v, PRG.v) edging out
40%
three losers (DMX.v, STS.v, VAU.v)) on the
35%
headcount, with three unchanged stocks
30%
(COCO.v, MTU.v, NINE.cse) making up the 25%
weight. What’s more, there were some big 20%
percentage upmove in Latin Metals (LMS.v up 15%
53.1%) and Palamina Corp (PA.v up 40.0%) that 10%
5%
pimped the overall basket gains nicely. As with
0%
the other dedicated sections, we debut the
Jan1st Jan8th 15th 22nd 29th feb5th
annual tracking chart today and the initial read is
of a sector that’s seen regular increases in the source: IKN calcs, TSX data
first month of the year. Long may it continue.
Palamina (PA.v): Both PA.v and its sister company Winshear
(WINS.v, on the TinyCaps list in 2022) both popped last week
and if I had to bet, it would be on CEO Andrew Thomson
putting in some effective lobbying at last week’s junior mining
conferences in Vancouver (MIF and VRIC, he pinged me to
mentioned that they had been lively). The only issue with PA’s
move is the thin volume, something our next featured
company didn’t suffer.
Latin Metals (LMS.v): I’m on record as interested in this
stock and its deep asset book in Argentina and Peru. One of the secondary assets until now has
been Tillo copper project in Peru, in a good location on the edge of the coastal batholith central
region, but it got a spotlight from the LMS NR last week (13), which highlighted its promising
early stage sampling results, with soil and fines samples showing zones of high copper content.
25

See the NR for all the details and some photos of samples as well, a good start to the Tillo
program but there’s a long way to go at this early-stage project. It’s certainly not enough to
explain the trading in LMS last week, as seen in the
ten-day chart (right).
As mentioned on these pages previously, the issue at
LMS has been its market volume and the way its
share would move on thin trading between 10c and
15c. It’s been difficult to buy, but that all changed on
Tuesday when someone, somewhere, decided it was
going to be the next big thing. The pattern suggests
a newsletter reco of some sort and coming after the
MIF and VRIC conferences, it may have caught the
eye of some letter or other. It may also be a new
individual buyer who decided to wade into the open
market, but whatever the reason that’s a big move on a new influx of money.
Not a price to chase until real news shows, but certainly a good start to 2023 and I’m glad to
have kept LMS in the 2023 basket, it means we can keep a close eye on things.
District Metals (DMX.v): It wasn’t exactly the most difficult or even actionable of market
predictions, but let’s mention it anyway. We signed off last weekend’s TinyCaps sector by
noting that the market for exploreco financing had perked up and with “…DMX a double in a
month, a placement in this stock is now more likely than not.” And sure enough (14)….
“…private placement of up to 20,000,000 units (the “Units”), at a price of C$0.15 per
Unit (the “Offering Price”) to raise aggregate gross proceeds of up to C$3,000,000.”
…we got just that on Monday. The brokered deal (PI Fin leads, Haywood is in there) units
include a share and a half warrant at a 20c strike with a
three year shelf life and though comes with a minimum
take-up, is bound to be popular. The 15c price is logical,
as was the market reaction as the deal put the brakes
of DMX’s recent run though the very soft trading across
the mining board on Friday probably pushed DMX to
oversold. All in all a reasonably standard deal on
standard terms with a predicatable reaction at market.
We wish DMX fortune with its business plan and now
funded, will watch closely this year.
NB: Please be clear that The Tiny Dogs is NOT a list of recommended
tinycap stocks. It is a list of companies with market caps of under
$20m offering a reasonable representation of the wider tinycaps market. It’s possible in the future I may buy shares in
one or several of these stocks, at the moment both my opinion and wallet are strictly neutral.
Regional politics
Colombia: Mining law project timing update
Thanks to a reporter from Colombia’s business magazine Semana (15), who caught up with
Colombia’s Vice-Minister of Mines Giovanni Franco Sepúlveda, at the open of the MinExpo
mining conference in Medellín on Wednesday, we have a little extra information on the timing
of the new Mining Law project from the Petro government. There were some neutral comments
on the way “the executive will become entrepreneur” in the mining sector (i.e. the mooted plan
to start buying gold from small producers), but the Vice-Minister steered well clear of any
comment about changes to exclusion zones for mining in enviro zones or new prior consultancy
rights for local communities. The only real news came when Señor Franco was asked about
timing for the law project and when the executive expected to send it to Congress for
26

treatment, debate and eventual vote:
Regarding the date on which the law project will be presented to Congress, Franco
Sepúlveda said that, “We hope that it will make it to the Senate in May of 2023”, which
means it will go at the same time as the other law reforms that are being prepared by
various ministries, looking for approval by the legislature.
That represents another small setback to the timeline. Also, we learned that the new Mining
Law will be only one of several law projects sent to Congress at the same time, the Petro
government will be looking to make wide-ranging reforms to Colombia’s statute in different
areas and the mining world is just one of them. To reiterate the point made on many occasions
in past notes on Colombia’s mining sector under Petro, we expect major environmental
clampdown measures in the Petro mining law project and many zones will become de facto off-
limits for mining activity. It’s the moment when this government will show its true anti-mining
colours, so be prepared.
Final point: I am seriously considering a short trade in Aris Mining (ARIS.to), as it is wide-open
exposed to the bad end of the upcoming law project via its JV on Soto Norte along with
MINESA and here’s what President Petro had to say on the subject on Friday afternoon (16):
At Málaga, Santander, where hundreds of people in rural and páramo zones met for
discussions with President Gustavo Petro regarding the boundary limitation for the
Almorzadero and Santurbán páramos, the Head of State “closed the door on large-
scale gold mining and stated that the multinational MINESA will not enter Colombia.
“I do not agree there should be large-scale gold mining in Santurbán. I do not agree
and I don’t know what agreement are being done with MINESA”, said the leader of the
Pacto Historico party to rounds of applause from those at the meeting.
In the announcement, Gustavo was emphatic that the multinational MINESA would not
enter Colombia, in the same way he had stated during the presidential campaign. “If I
am President of Colombia MINESA doesn’t enter the country….water is more valuable
than gold.”
The President’s announcement met the approval of the Comité Santurbán, which has
been organizing protests and demonstrations for many years in order to prohibit large-
scale mining in the páramo.
“Gustavo Petro, fellow countryman, has just rartified that the MINESA project will not
go forward in Santurbán. Large-scale mining is a death sentence for rural communities,
the committee said.
Peru’s Congress makes a bad situation worse
I’m trying hard to keep this series concise, because it’s not directly about mining and by
necessity, it needs to get into Peru’s political weeds. One page of script way more than
enough, so if you’d like details on anything mentioned you know my address. On January 31st,
ratings agency Moody’s downgraded Peru’s risk outlook from “stable” to “negative” in a move
that surprised nobody, but one that underscores the deterioration in the country’s image among
potential investors and with no end in sight for the current political turmoil. The main event in
Peru’s ongoing political clownshow went largely as expected last week. Congress tabled several
motions to approve early elections, but each one came from a different political faction inside
Congress, carried its own earmark and, in a shock to nobody, failed to gain enough votes from
the main floor as each bloc wanted to stop the others to allow their own to prosper. A couple of
quick examples, one part right wing asked for the Congressional elections to be
“complementary” (which would allow current sitting members of Congress to run again),
another right wing group earmarked a proposed change in the Constitution to bar certain types
of convicted criminal from running as they try to stop Antauro Humala’s candidacy. Meanwhile
on the left wing, a proposal was shot down that insisted on including a vote on whether to
change the Constitution, something the right refuses to consider point blank. Meanwhile
President Dina Boluarte sent her own law project for early elections to Congress that didn’t
even pass committee and make it to the floor (Boluarte also included a clause on a possible
Constitutional Assembly). The failure of the executive law project prompted the resignation of
one of the committee members, Ms. Digna Calle of the right wing Podemos Peru, who summed
things up in a video she recorded as part of her resignation and protest against the attitude of
27

Peru’s collective political leaders (17). We quote (translated):
“The members of Congress and the Presidency of the Republic do not want to assume
responsibility for the crisis facing the country. We have used four congressional
sessions, eleven votes and 20 hours of debate without reaching the necessary
consensus. The formulas come and go, but the excuses impose at the moment of
voting. It’s clear that they (the members of Congress or the Presidency) do not want to
go, renounce their salaries or their privileges.”
Quite right and indeed, President Dina Boluarte has taken every opportunity to state in public “I
will not resign”, pinning her position on her desire “not to give in against the violent mob” even
though 95% of protests against her government have been peaceful and from law-abiding
members of public (who get teargassed by the police for their efforts). The resulting stalemate
is fuelling the fire of further and more serious social protests. With one week to pass an
alternative proposal, Congress is now likely to move to its new legislative season starting
February 15th with only one option left on the table, that of voting to ratify elections in April
2024 (and even then it may not get the 87 votes required). This prospect is what brought Peru
out on the streets in the second phase of protests this year, as everyone except Congress
wants Congress out and new elections a.s.a.p.
The most obvious end to the logjam is for Dina Boluarte to resign, which would mean executive
power shifts to the Head of Congress, Señor José Williams, and force him to call elections
almost immediately. However there’s also a massive risk in this pathway because Congress may
decide not to allow new general elections and instead call Presidential-Only elections, allowing
the current Congress to remain in place until 2026. If that happens, the likelihood of an
increase in social protests is sky-high and Peru may slip further down the slope toward true
mayhem. Summing up the week in Peru, even though protests were less intense the country
remains on a political knife-edge and anything might happen in the near future.
Meanwhile in provincial cities and regions (usually unreported by a Lima-owned national media
aligned with Congress and Boluarte) the marches and roadblocks continue unabated and the
call remains simple, “¡Que se vayan todos!” (All of them out), provoking the national
government this weekend to extend the State of Emergency decrees in seven regions for
another 60 days (including another ten days of night curfew in the Puno region). As for the
mining sector, the South of the country continues to be widely disrupted. Last week the big Las
Bambas (MMG) and Antapaccay (Glencore) copper mines made headlines by announcing partial
closures and a new round of road blockades, but the disruption is over the whole region and
plenty of small scale miners have seen operations grind to a halt. Another issue from the
widespread is the lack of produce arriving at Peru’s coastal ports for export and the main
outlets, such as Peru’s Matarani port that services much of the copper concentrate from the big
mines in the South, is now empty in practical terms.
Ecuador: The Quito region mining referendum is back on
This weekend sees Ecuador vote in the referendum on eight Constitutional questions tabled by
President Guillermo Lasso, designed to allow him to circumvent the belligerent Congress of his
country and give him some limited powers in specific areas to pass laws. All the questions are
likely to be voted up (it would be a severe embarrassment if not) and he’ll claim some sort of
victory, but in real terms not much would have changed and he is still going to find it difficult to
get effective laws passed in the country. Also at the same time, Ecuador votes for 23 new
regional prefects (regional governors by any other name) and those votes are likely to give a
better tell on local issues.
Meanwhile and to focus on mining issues, this week saw the Quito mining referendum petition
ratified by Ecuador’s electoral body, the CNE. This is the petition that needed to gather 198,000
signatures to get on the ballot, got more than double that amount but then saw the State try to
block and delay ratification at every turn. Late last year, the CNE tried to ignore its validity by
saying there has been tens of thousands of false signatures on the petition, which saw its
promoters need to go to court and to cut a long story short, the issue on Friday when, after
much prompting, the CNE announced 206,571 valid signatures. The “Quito Sin Minería”
28

campaign and referendum vote was originally supposed to happen on February 5th, along with
this weekend’s national referendum and while it’s too late to include the vote now (and take
advantage, the CNE is now obliged to announce a date for the vote in the next 60 days. So this
vote will happen in 2023 and when it does, the “Andean Chocó” region of Central Ecuador that
includes the country’s capital city is very likely to vote against the presence of mining activity in
its region. The only issue is turnout, as the vote is now likely to be a standalone and the “Quito
Sin Mineria” activists will have to work hard to get an apathetic general public to the voting
booths (18) (19).
Chile: More environmental actions
We have another community entering a legal battle with a mining company in Chile, this time
it’s the Freeport (FCX) El Abra mine, which is being taken to court by the local community of
Conchi Viejo for damage to the environment and patrimony, the demands based around an
alleged spill of sulphuric acid that caused damage to their land around the mine. According to
the litigants, the event is one of many that have occurred during the mine operations. To this
point, El Abra has played deaf and in a press release, stated it had not been notified of the
lawsuit (20).
Market Watching
Deferred
I was going to do that now long-overdue piece on AbraSilver. I was going to note a couple of
thoughts about the price rise in molybdenum. I was also thinking about a comment or three on
those four new ETFs from Sprott, including the interesting copper junior COPJ vehicle. But
Minera Alamos took way more time than I expected and to be honest, there’s nothing in those
subjects that is particularly time-sensitive. And it’s 1am and I’m tired and lazy. Next week.
Conclusion
IKN716 is done and as usual, we end with bullet points:
 Today’s edition had to take in the turbulence caused by last week’s US macro data, but
in the end I don’t think it’s as serious as people made out. There’s no really new
dealbreaker information or any reason to suppose the recent tide has changed. Metals
and miners are rough and volatile markets and days like Friday come with the territory.
 Aside from the extended notes in The Copper Basket, today’s edition belongs to Top
Pick Minera Alamos (MAI.v) and, for the first time in a long time, I’m seriously thinking
about adding to an already way-overweight position. People are selling the stock as if
it’s a total failure because it produced 2800oz instead of 5,500oz due to an
unseasonable and temporary dry period at its start-up mine, they are worried about
2,700oz of gold and willing to ignore the 100,000oz run rate as it exits 2024. The only
thing stopping me is good portfolio management standards. Maybe I should sell them
all and just own MAI.
 Peru is a mess and it’s going to get worse. It’s still better for mining than Colombia,
though.
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
29

Footnotes, appendices, references, disclaimer
(1) https://mineraalamos.com/news/2023/minera-alamos-achieves-2022-commercial-production-thresholds-at-santana/
(2) http://www.amerigoresources.com/investors/share-buybacks/
(3) https://www.westerncopperandgold.com/news-and-resources/news-release/western-copper-and-golds-casino-
project-to-have-significant-impact-on-yukons-economy-2/
(4) https://www.hellenicshippingnews.com/zinc-slumps-on-jump-in-inventories-and-weak-chinese-demand/
(5) https://www.capitaleconomics.com/commodities-overview
(6) https://faradaycopper.com/news-releases/faraday-copper-reports-33-77-metres-at-3-43-coppe-4939/
(7) https://faradaycopper.com/news-releases/faraday-copper-announces-c-30-million-bought-deal-financing/
(8) https://www.panglobalresources.com/_files/ugd/eec401_09435aeb3d6e4d50b7f2846e81e3b2ee.pdf
(9) https://regulusresources.com/news/2023/regulus-reports-all-remaining-holes-from-2022-drill-campaign-and-
announces-completion-of-colquirrumi-claims-earn-in/
(10) https://www.youtube.com/watch?v=XyRsKSSyJqs
(11) https://www.eldoradogold.com/news-and-media/news-releases/press-release-details/2023/Eldorado-Gold-
Announces-Fourth-Quarter-and-Full-Year-2022-Preliminary-Production-Provides-Conference-Call-Details/default.aspx
(12) https://www.veracast.com/webcasts/tds/mining2023/5J28O0.cfm
(13) https://latin-metals.com/news-releases/latin-metals-discovers-high-grade-copper-mineralization-at-100-owned-tillo-
project-peru/
(14) https://districtmetals.com/news/district-metals-announces-3-million-brokered-private-placement-financing
(15) https://www.semana.com/economia/macroeconomia/articulo/revolcon-al-sector-minero-gobierno-petro-fijo-la-fecha-
para-presentar-la-reforma-al-codigo-minero/202344/
(16) https://www.vanguardia.com/area-metropolitana/bucaramanga/no-estoy-de-acuerdo-con-que-en-santurban-haya-
mineria-a-gran-escala-gustavo-petro-desde-malaga-EB6232017
(17) https://rpp.pe/politica/congreso/adelanto-de-elecciones-digna-calle-renuncia-como-segunda-vicepresidenta-del-
congreso-tras-rechazo-a-proyectos-noticia-1464461
(18) https://www.teleamazonas.com/nueva-consulta-popular-por-mineria-en-el-choco-andino/
(19) https://efeverde.com/quito-prohibir-mineria-choco-andino/
(20) https://www.reporteminero.cl/noticia/noticias/2023/02/comunidad-cochi-viejo-demanda-minera-el-abra
Stocks To Follow Closed Positions 2022
Closed in 2022 date closed close price
Great Bear Res GBR.v Jan'22 C$15.83 26-Aug-20 C$28.58 80.5% Bought out by Kinross, print
Copper Mountain CMMC.to Jan'22 C$3.40 18-Jun-21 C$3.78 15.9% Sold 1/2 position in rebalance
Copper Mountain CMMC.to Feb'22 C$3.40 18-Jun-21 C$3.70 8.8% Sold rest on FY22 guidance
Trilogy Metals TMQ Mar'22 U$1.84 15-Sep-19 U$1.04 -41.3% killed by US permit reversal
McEwen Mining MUX Apr'22 U$0.89 2-Jan-22 U$0.82 -7.9% No 2022 turnaround, cut loss
Abrasilver Res. ABRA.v May'22 C$0.42 24-Apr-22 C$0.33 -21.4% sold to reduce Ag exposure
Strategic Metals SMD.v May'22 C$0.42 31-Jan-21 C$0.30 -28.6% trade flatlined 1.5 years
Discovery Silver DSV.v Jun'22 C$1.77 24-Oct-21 C$1.39 -21.5% Cutting Ag exp.& raising cash
Element 29 ECU.v Jul'22 C$0.58 6-Mar-22 C$0.30 -48.3% sold to cut Cu exposure
Superior Gold SGI.v Oct'22 C$0.95 3-Apr-22 C$0.24 -74.7% Q3 prod fail was last straw
Goldshore Res GSHR.v Nov'22 C$0.18 23-Oct-22 C$0.34 88.9% Quick profit taken
Palamina Corp PA.v Dec'22 C$0.295 21-Nov-21 C$0.08 -72.9% Clear-out of underperformer
Pure Gold PGM.h Dec'22 C$0.14 26-Sep-22 C$0.015 -89.3% tiny trade on vh risk, went Ch11
30

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
31

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
32

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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