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The IKN Weekly
Week 794, August 4th 2024
Contents
This Week: In today’s edition, They took our jobs, A democratic depression.
Fundamental Analysis: Argentina mining: Time to look beyond San Juan (with profiles on
Fitzroy Metals (FTZ.v) and Patagonia Gold (PGDC.v).
Stocks to Follow: Amerigo Resources (ARG.to), Western Copper & Gold (WRN.to) (WRN),
Florida Canyon Gold Inc (FCGV.v), SilverCrest Metals (SILV) (SIL.to), Bear Creek Mining
(BCM.v), Contango ORE (CTGO), Aldebaran (ALDE.v).
The Copper Basket: Overview, Element 29 (ECU.v), Hercules Metals (BIG.v), Solaris
Resources (SLS.to).
The Producer Basket: Overview, Hecla (HL): Newmont (NEM): Barrick (GOLD).
The TinyCaps Basket: Overview, Awalé Resources (ARIC.v).
Regional Politics: Venezuela: Aftermath of the Presidential election (non-mining).
Market Watching: Testing myself on 35 exploration stage copper companies (Part Four),
Mene Inc (MENE.v) 2q24 financials, MAG Silver (MAG.to) (MAG) 2q24 financials, Sandstorm
(SAND) (SSL.to): The debt still weighs, Amerigo Resources (ARG.to) 2q24 financials.
I remind subscribers that no part of this newsletter can be copied, reproduced or
given to any third party without the express permission of the author.
This Week
In Today’s Edition
 Oh how we laughed as the Florida Canyon (FCGV.v) trade went down the drain less
before last week even started, the company announcing it had accepted what amounts
to a “Take Under” offer from Integra Resources (ITR.v) before the bell Monday
morning. Not often does one have the pleasure of pre-empting a M&A deal and
watching the target company’s share price sink like a stone on the news. Sigh. Anyway,
the post-mortem is in the Stocks to Follow section today and if you don’t want to suffer
through the prose, the call is to remain holding, not add any more and not sell ito
what’s likely to be the low price point in the process. There’s also still the chance of a
competing bid, but I’m not holding my breath.
 In Market Watching we do Q2 results from covered and soft-covered operators,
including the good quarters from Amerigo Resources (ARG.to), a brief word on
Sandstorm (SAND) and MAG Silver (MAG.to) (MAG) and the latest numbers from our
“non miner” Mene Inc (MENE.v). That and the copper exploreco league table.
 Today’s main fundies note is an invitation to go deeper on Argentina. The news last
week that BHP and Lundin are going JV on Filo de Sol and Josemaria has brought new
eyes to the country’s mining industry and growth. We as industry observers have
witnessed the rise of the so-called “miner-friendly” regions of Argentina such as San
Juan or Jujuy, our contention now is that it may be time to look further afield. We offer
the argument for the improvement in Mendoza and Rio Negro provinces, plus two
companies with projects in Rio Negro that have real chances of doing something and
building from a low price base.
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 Last week: “Copper seems to have found a bottom.” This week: “Copper seems to have
found a bottom.” It wasn’t a massive, spring-loaded rebound but it was enough to
suggest the U$4/lb line isn’t in danger and the way the metal moved on Friday when
the likelihood of the Fed loosening cycle became a near-certainty was straight out of
the playbook. All that and more in this week’s Copper Basket.
They took our jobs
Last week’s intro covered the main upcoming events of the macro week and while the FOMC
meeting came and went much as expected, our notes on the US BLS jobs report noted that the
market consensus was for a headline 4.1% and we’d be “…looking for even one tenth of
difference to that headline number as a potential tipping point for market assumptions and
precipitation of the cutting cycle, plus the potential for the (now regular) negative adjustments
to previous non-farm payroll jobs estimates from previous months.” Here’s what happened (1):
“The headline jobs number in the July
employment report was below expectations, and
May and June payrolls were revised down by
29,000 combined. The participation rate
increased, the employment population ratio
decreased, and the unemployment rate
increased to 4.3%.”
But if you were watching the market you knew that
already. The Calculated Risk summary continued by
saying it was a “weaker than expected report” and
you also knew that, here’s a five day chart (right).
Friday had certain quarters of hard money
adherents and goldbugs screaming foul about the
selling in miners and metals, as the initial pop in
gold and others at the bell was sold down, GLD remained essentially flat for the rest of Friday
and the miners (proxy GDX above) were dragged down with all other equities (proxy Dow
above). That’s how these things happen, I’m afraid, like it or not the market
runs on margin and when a liquidity event hits in this way, everything
becomes a source of liquidity for people who need to cover margin calls
immediately (or else). As one of the smarter market observers I follow on
social media put it as the bell rang on Friday morning (2), “This is your
timely reminder that on days like this, people sell what they can rather than
what they should.”
If you’re in gold for a fliptrade I wish you the best of fortune, but that’s not
why we cover the metal here. Nor the miners in fact, as we know that one
day of liquidity suck doesn’t define this sector and the reasons to own gold
don’t change. As for the miners, particularly the type of early stage or junior
sized company we focus on here, they’re arguably the most volatile sub-
sector in the entire market and prone to influences that don’t fit the
narrative of a perfect world. This isn’t new news, so don’t be one of those
people I was reading on TwitterX late last week (3) telling the world that
they’d lost all their money and didn’t know how to tell their family. The
example (right) is from the uranium world but you can see the same thing
happen to True Believers in gold, silver, copper, tin, nickel, you-name-it.
A democratic depression
I beg forgiveness for a first person confessional rant. Last week’s edition, IKN793, was light in
content and did not cover all the issues planned. I literally dropped a couple of articles because
even with the numbers and notes done, I couldn’t get them written up. The reason is personal,
as a wave of depression hit me as the election result in Venezuela, my country of residence
since last year, was first pre-empted and then announced. It was a strange moment, because
none of it came as a surprise and as noted in the last couple of editions, the most likely result
was always going to be a fixed and false result from the current government that did not
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represent the way Venezuela voted. However and despite being pre-warned, pre-armed and
ready for the macabre shows, it’s quite another thing to watch millions of people eagerly
queuing up at polling stations and voting with enthusiasm and true hope, then the exit polls
taken by reasonably accurate and neutral polling companies that put the opposition candidate
Edmundo González in a big lead compared to Nicolás Maduro, then at some point on Sunday
afternoon watch the nefarious show begin and the way in which a dictatorship can trampled
popular will. Although something of a cliché, the succinct way of explaining it was like
witnessing a passage from Orwell’s 1984 in real life, up close and personal in 2024.
I go into the timeline a little in ‘Regional Politics’ below, plus a sweeping overview of the last
week and what it might mean, but today’s intro is personal and anecdotal and I’m neither proud
nor ashamed to admit that it affected me. My productivity was already low on Sunday afternoon
as I watched the election unfold, but to my own surprise the process got to me. The show was
rolling out ling before the first official result was called and on Sunday evening, a time when I’m
normally round off articles and putting finishing touches to the edition (15 years and counting,
old habits die hard) I found myself staring at the computer screen instead of writing into it. This
is my 28th year as a resident of South America, it’s the continent of my adult life and after that
amount of time you start thinking that you might have seen it all, but last weekend was
different, a moment when the masks slip and you witness the evil that men and women are
capable of doing. The only thing I managed to produce was the brief resumé of the result you
saw in IKN793 last week, a short note that closed with “…it’s another day in which democracy
has been trampled upon in South America. You’d think I was used to the feeling by now, but it’s
as unpleasant as ever.” It was worse than that, the sensation of having watched millions of
people queuing patiently, eager to vote and then seeing their democratic decision not merely
ignored but sneered at then thrown in their faces, was debilitating and depressing. Be clear,
this isn’t the first “dubious elections” I’ve witnessed on this continent, either as an outside
observer or up close and personal, so before wrapping this up I’d like to add, with the greatest
respect to anyone reading these words who may or may not have thoughts on what they
believe might have been a fixed election result in their own country, that it’s one thing to see
the needle nudged a few percentage points in this-or-that direction, quite another to see a vote
that was overwhelmingly for X over Y (around 30 or 35 points of difference) only to see Y claim
the victory with obviously faked numbers, then immediately send out the heavily troops in the
name of “peace” in order to quell the “fascists” who dared complain about the result, arrest
thousands and blow holes in hundreds of others.
Now you know why IKN793 was light in content and had some pretty rough editing edges in
other spots. Now for some real work.
Fundamental Analysis of Mining Stocks
Argentina mining: Time to look beyond San Juan
The change and improvement in the mining sector OF what we affectionately call South
America’s Basket Case Country isn’t a new subject to these pages, as we’ve been banging on
about the changes in the air in Argentine mining literally for years. The improvement started
with the defeat of Mauricio Macri and the arrival of the Alberto Fernández government in 2019,
and to pick one of many example, here’s an coverage from IKN635, dated July 25th 2021:
“Without making big headlines, Argentina is slowly becoming a better and more attractive
jurisdiction for mining investment under this current Alberto Fernandez administration.
Faced with the uphill task of maintaining national pro-mining an pro-development policies
while opposed by the same left wing environmental activists who helped to vote him into
power, Fernandez has pleasantly surprised this desk by being practical and, in real terms,
delegating decisions on mining Argentina to his Mining Secretary Alberto Hensel, who
ostensibly reports to “Superminister” Matias Kulfas, but the three are equals on any policy
decision for the sector.”
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That feels like a long time ago. We went on to praise Hensel for his work in that note and
others, as he was the central figure that reversed the poor policymaking choices for mining
under Macri that tried to make Argentina a homogenous country for mining risk. Macri was
destined for failure when highly anti-mining provinces dug in their heels and dragged the rest
down, in perceived risk terms. With the arrival the Alberto Fernández administration we got a
smarter way, which offered provinces to the world on a case-by-case basis and allowed places
such as San Juan and Jujuy to present their pro-mining cases, unfettered by the ideologies of
provinces such as Chubut or Neuquen. This may surprise those who see the world in simple
left/right political terms but it’s also the way it is and while we’re the first to concede that the
Fernández admin wasn’t a panacea for mining companies, it was certainly better and allowed
companies and projects to gain a foothold in the country and develop.
However, the improvement in Argentina has been turbocharged by the arrival of the Javier Milei
presidency, both in substance and style. The world of money and investment likes what it sees
in Milei’s free-market, FDI-friendly, right wing/libertarian style and with the recent success in
passing his omnibus law package including the “RIGI” investment laws (see recent editions or
the world’s business press), mining companies and investment houses alike can point to
substantial improvements in the legal framework. Case in point, last week’s news that BHP and
Lundin Mining would indeed pull the trigger and go 50/50 on Filo Corp (FIL) and Josemaria (4):
BHP and Lundin Mining Corporation (Lundin Mining) have agreed to jointly acquire 100% of Filo
Corp., a Toronto Stock Exchange (TSX) listed company, through a Canadian plan of
arrangement (Filo Acquisition). Filo Corp. owns 100% of the Filo del Sol (FDS) copper project.
BHP and Lundin Mining have also agreed to form a 50/50 joint venture to hold the FDS and
Josemaria projects (Joint Venture) located in the Vicuña district of Argentina and Chile (together
with the Filo Acquisition, the Proposed Transaction). Lundin Mining owns 100% of the Josemaria
project. The Joint Venture will create a long-term partnership between BHP and Lundin Mining to
jointly develop an emerging copper district with world-class potential.
At C$4.1Bn this is a big deal for any mining jurisdiction, let alone one with the past history
Argentina brings. Meanwhile we’ve seen the world get smart to the difference between the
“pro-mining” and “anti-mining” provinces of Argentina, with San Juan as the figurehead
(location of Filo, hardly a coincidence). These days surveys such as The Fraser Institute’s
annual report (for all its faults) makes sure its audience sees the split and it’s common in
corporate presentations to read an exploreco underscore its “We Are In San
Juan/Jujuy/Catamarca” credentials to the a discerning audience. Summing up so far:
 Argentina was a pariah state for mining for many years
 The Alberto Fernández government began the improvement
 Things have become substantially better since Milei arrived, both in the legal
framework for going mining and in the eyes of the outside world
 Specific locations inside the country (e.g. San Juan) have grown positive reputations as
pro-mining jurisdictions and companies located in those zones have benefited
accordingly
 Recent deals have brought concrete evidence that Argentina has gained capital in the
mining world
Indeed, the comments of current Mining Secretary Luis Lucero last week on the news of the
BHP/Lundin deal for Filo Corp are exactly correct in the view of this desk (5) (translated):
“This is great news for the Argentina mining industry. It combines the financial strength and operating
capacity of the biggest mining company in the world, BHP, with the Argentine operating experience of
the Lundin Group, which in the 90s was involved with the development of the first world class
(copper) mine in Argentina, Bajo de la Alumbera.”
Full agreement. The opening of Argentina is undeniable and this deal is a big and positive
advertisement, straight from the world of hard-nosed capitalism. It also means projects in the
star provinces have been on the radar of observers of the mining sector and picking up fans
and adherents, but there’s more to Argentina in 2024 than the flagship provinces of San Juan,
Salta, Jujuy, Santa Cruz or Catamarca. This is what today’s note is all about.
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Milei’s changes run deeper
Deeper than San Juan and deeper than the announced “pro-mining” provinces on everyone’s
radar, perhaps the biggest change in Argentina is the way RIGI has been adopted by provinces
and locations that to now were either ambivalent toward or actively against mining. Of course,
RIGI isn’t only about mining and we know the law package was aimed as much at the
hydrocarbons, infrastructure and agro sectors in Argentina as hard rock mining however, RIGI
fits the high-capex, long lead time world of medium-scale and large-scale mining to a tee and
as such, provincial governments and governors have been quick to promote its advantages.
And that’s a potential advantage for us, the potential investor in the Argentina mining sector.
While San Juan-located projects and companies generally command a premium at market,
companies working in provinces with negative reputations (to date) get overlooked quickly and
their shares change hands at bargain basement prices. This draws us toward the main reason
for today’s note on Argentina, was we highlight two companies that fit the bill and may interest
this audience looking for dirt cheap shares in reasonable companies, but those companies are
inextricably linked with their host province of Rio Negro, so part of the task is to provide an
overview on provincial political risk. But before we get to that case, I want to offer Mendoza as
another place in which risk for mining seems to be improving rapidly after decades of being in
the penalty box and often cited by The Fraser Institute as one of the worst jurisdictions in the
world (not just Argentina to go mining).
 Mendoza: For the longest time. Mendoza has been one of the conservative backwater
provinces in Argentina and when it comes to mining, the Old Family Money behind its wineries
that ran the province was dead set against mining. The excuse was water (supply and
contamination), the underlying reason the prevalent Lord/Serf mentality among its landed
gentry that didn’t want to lose its cheap rural labour sources to high-paying permanent sources
of jobs (e.g. the annual grape harvest needs all the hands it can get at the lowest cost. Though
Mendoza hasn’t changed 180° from that posture and there’s still plenty of anti-mining feeling in
the province fueled by its political left wing and the enviro lobby as much as Estancia or Bodega
owners, times are changing and the advent of Milei has crystallized the pro-business camp and
brought them into action. Evidence starts with the way Mendoza is finally allowing exploration
stage drilling activity in its province, with permits being awarded to explorecos large and small.
Next up, is the news last week that Mendoza’s lower house of Congress (the Deputies) passed
its decision to get on board with the RIGI law by a vote of 32 to 13. That law bill now goes to
the upper house (Senate) at the end of this month. While Milei has no direct party control over
Mendoza, the RIGI law bill passed the lower house thanks to support from its majority UCR
(Radicals) bloc and they also control 19 or Mendoza’s 38 Senate seats, so chances are Mendoza
will join the RIGI provinces soon. Meanwhile, a law project has been presented to the same
parliament to reform the province’s contentious Law 7722, the so-called “Water Law” that stops
industry from using a list of substances in specific operations. These include the chemicals
required for typical mining operations (e.g. dilute Sodium Cyanide, dilute Sulphuric acid) in
open pit mines and this law has been the block on mining project development in the province
for the last 15 years. The law project is polemic and we’ve already seen environmental groups
marching through Mendoza city opposing and law reform, but if the RIGI law is passed there’s a
high likelihood that 7722 will see enough changes to allow large-scale formal mining to move
forward in the province. For more, check out these links on the subject (6) (7) with one of
those reports from the pro-mining business/right wing and the other from the anti-mining
environmental/left wing, to get a feel for the argument. Suffice to say that if 7722 is reformed,
it will open up Mendoza to mining FDI immediately and those companies working the province
will surely get a lift.
 Rio Negro: Now for our second feature province and location of the two explorecos of
interest, of Rio Negro. Located North of Chubut (see map) and with the red circle indicating the
approximate region where the two explorecos work, Rio Negro is one of the sparsely populated
regions of the country and that particular red-ringed corner has a population of around 21,000
people in total, scattered among 150 small towns and villages (with the main town 12,000 of
those).
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The province of Rio Negro has garnered a couple of mentioned in
editions of The IKN Weekly this year, the first in IKN773 dated March
10th in “Argentina: Rio Negro heads up”, a brief and then in IKN791,
dated July 14th in the note “A extra thought on Rio Negro”. On both
occasions we noted the improving backdrop for mining stocks in the
region and on both occasions we made mention of our first feature
company, Fitzroy Minerals (FTZ.v) (8). This small exploreco has early
stage properties in both Chile and Rio Negro Argentina, but the one
that has my attention in the Taquetren project, which has been on the
personal radar for many years and thanks to the détente in the
province toward mining, has finally seen some meaningful work
getting done. It’s early stage still and FTZ has made it clear that the
plan is to work on target definition before getting the diamond drills
turning, so perhaps we’ll get new core in 2025, but there’s definitely
gold in the rocks as evidenced by the trench results of 5.2m of 1.8 g/t
gold, 3.4m of 3.8 g/t gold and 3.6m of 1.0 g/t gold, as well as
published rock chip results of up to 18 g/t gold.
FTZ currently has 88.044m shares out, which gives it a market cap of
C$14.97m this weekend…let’s call it 15m. Then there are 15.704m
options and 15.454m warrants outstanding with most of the strikes of
those derivatives between 12c and 25c, so all of those are in-play. It’s
a reasonably tight structure and plenty of those shares are with tight
hand insiders and backers, so any decent discovery should send the
price higher.
Now for our second featured company, Patagonia Gold
(PGDC.v), a company that’s been around for a long time in
many guises but as seen in this long-term chart, has been
off radar for the last few years. However and suddenly,
the improvement in sentiment toward mining and the
position and history of PGDC’s flagship project, Calcatreu,
may be about to catapault it back into the public
conscience and with share price down where it is (chart
right), that could be good news for speculators. This story
is as much about the political situation as the company,
but we start with a screenshot of PGDC’s latest balance
sheet that shows the thin treasury and large debt position
on its books.
After all, there’s a reason why you can buy these shares at 2c apiece.
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As well as the balance, the share structure is the
most important part of today’s PGDC corporate
structure. According to the last Management
Information Circular, PGDC has 471.06m shares out
and a typical share price of just 2c (as shown here,
you can buy at 1.5c or 2.5c), giving the company a
market cap of just C$9.42m. Volume in that time
has been spotty as you can see and at 2c/share (for
the sake of a median number), we’re not moving
much money around. Every so often we’ll get a
spike in volume, such as the 500k shares traded on
July 18th, but even then it adds up to C$10,000 in
cash terms in one day (for context, Contango ORE
(CTGO) would have to move 400 shares in a day for same in cash transactions).
It’s also important to understand the people behind this corporate structure (9): There are two
big shareholders of PGDC, namely the directors Carlos Miguens with 199.767m shares (42.4%
of shares out) and Tim Hunt with 97.35m shares out (20.7% of S/O). Tim Hunt entered in 2019
when PGDC merged with Hunt Mining and has decades of experience in both mining and
Argentina. He was once part of the Aquiline team that sold Navidad and Calcatreu to Pan
American Silver, so knows all about that asset. As for Carlos Miguens, he’s a very rich Argentine
businessman who among other fingers in other pies was once owner of Argentina’s biggest
beer brand, Quilmes (99% of readers who have visited the country will know that name) before
it was sold to Ambev. He is reputed to head a family with a net wealth of U$850m and as we’re
talking Argentina, we can probably double that official number. But either way, Señor Miguens
is a very rich man and part of his empire is now PGDC, as aside from his dominant share
position he’s also the main source of its working capital and two weeks ago, we had news on
that (10):
VANCOUVER, British Columbia, July 26, 2024 (GLOBE NEWSWIRE) -- Patagonia Gold Corp.
(“Patagonia” or the “Company”) (TSXV: PGDC) announces it has entered into an agreement with
Cantomi Uruguay S.A. (“Cantomi”) to increase the maximum aggregate amount of the Cantomi
Loan (as defined below). The original loan facility, which Cantomi provided in February 2019 for
US$15 million was subsequently amended and further increased to US$33 million with a maturity
date of December 31, 2025 (as amended, the “Cantomi Loan”). The agreement amending the
Cantomi Loan provides that the maximum aggregate amount of the Cantomi Loan is increased to
7

US$35 million. The funds from the increased Cantomi Loan will be used to refinance existing
lines of credit to reduce interest costs and for general working capital purposes. Other than the
amendment to increase the maximum amount of the Cantomi Loan, all other terms of the
Cantomi Loan remain unchanged.
Cantomi Uruguay S.A is a private financing entity wholly owned by the family of Carlos Miguens.
As at end 1q24, PGDC owed Cantomi U$31.87m in debt principal (plus U$4.98m in interest,
paid on 7.5% per annum). The agreement in June allows the company to draw another U$3m
or so, enough to keep it ticking over as it goes through the next phase of its permitting track.
Effectively, this gives PGDC an equity value of around U$45m at the moment and in round
numbers via his shareholding and debt position, Carlos Miguens is U$40m of that. Those are big
numbers for a small company and one running a tiny 2c share price over the long term, so it
begs the question as to why Sr. Miguens is still keen on lending PGDC money and keeping it in
business. For that we turn to the current permitting track at its flagship project, Calcatreu.
An open pit gold mine project with around 1m oz of defined gold at a grade of close to 3g/t,
Calcatreu has been an object of desire for over 20 years without ever being developed due to
the poor political risk for mining companies in Rio Negro. This project has been through many
hands over the years, including Pan American Silver (PAAS) when it bought Aquiline Resources.
Calcatreu came along with the main reason for the deal, the Navidad project in Chubut (which
also turned out badly) and for a time, PAAS made noises about developing both projects before
the negative national sentiment in the Argentina of Cristina Kirchner and then Mauricio Macri,
along with strongly anti-mining sentiment at provincial level in both Chubut and Rio Negro, saw
it step back. Part of the repentance was to sell Calcatreu back to the original team, now at
PGDC, in 2018 for a ticket price of U$15m. Then Patagonia Gold did some more resource
definition work until Covid hit, but after that enforced interruption was over it’s been all about
social outreach work required to gain its social license, essential for its EIA permit award. That
work was very low key for years, but the arrival of Milei on the scene and the change in
national politics has resulted in a thawing of attitudes towards large-scale capital projects and
they include mining. Cutting a long story short, Rio Negro has become an enthusiastic
proponent of Milei’s economic perestroika under its governor, Alberto Weretilneck. The
governor is worthy of his own paragraph but we’ll cover it by saying he’s been a figure on the
Rio Negro political scene for two decades and was a faithful lieutenant of Cristina Kirchner
during her government, but in fine political chameleon style he’s now all free market and
pushing Milei’s agenda. Weretilneck is happy RIGI passed, it was quickly ratified in Rio Negro
and while his main concern with the new investment law id trying to get Argentina’s dominant
oil company, YPF, to build an LNG terminal in his province (11), he’s also aware of its potential
to attract mining FDI. He also understands that Calcatreu is the most advanced project in his
province and while there are the small details of financing and tooling, it’s fair to say that the
only major barrier stopping the project from becoming a mining reality is the award of its
environmental impact permit (EIA). That permitting track is happening now and in true South
American style, there’s a clear pro/anti split in the local region.
Last week saw a big local meet-up run by PGDC, the local government (Weretilneck was
present and spoke) and Argentina’s main miners union AOMA. Around 600 local citizens were
present and according to all reports (12) (13) the meeting went well, with near unanimous
support among those present for the project.
However, Calcatreu still has opposition in the region, led by environmental groups and Mapuche
indigenous communities who object to mining as it goes against their traditional worldview. This
opposition has always been strong and until today, has been enough to stop any mining project
from moving forward and on the day after last week’s meeting, on Wednesday 31st the anti-
mine groups held their own presser (14) to reaffirm their opposition to the project. That’s
because the next meeting, set to happen at the end of this month, is the big one at which
Patagonia Gold will present its proposals to the local community on a formal basis in order to
gain the approval it needs for it EIA permit.
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As for the potential prize, if allowed to go ahead Calcatreu would be an open pit operation that
would run at approximately 2,500 tonnes per day, with a average head grade of 2.97 g/t gold
and 65& estimated recovery. That points to around 14,000 oz gold per quarter and while cost
parameters are no available, it’s fair to say that a relatively high grade open pit operation such
as this in Argentina would be able to run at a total cash cost of U$1,200/oz (and probably a lot
cheaper, but let’s be conservative). If we remain conservative on selling price and model using
U$2,200/oz gold, that makes for some very easy mathematics: U$14m in operating profits per
quarter and to underscore, that’s almost certainly a baseline with gold at U$2,400/oz and above
and total costs more likely at the U$1,000/oz level. In other words, U$20m per quarter in
operating profits isn’t difficult to imagine.
That’s a lot for a company with a $45m EV. With Alberto Weretilneck and a sizeable number of
locals looking toward Calcatreu as a source of jobs and economic growth, plus a date in the
near future that could mean EIA approval, plus a multi-millionaire sponsor looking to build his
gold mine. The 2c share price at which Patagonia Gold trades at this weekend is a tempting
level for those willing to gamble on an Argentine community permitting track. This company,
along with FTZ, will go on the Stocks to Follow Watch List as from next weekend with a view to
possible purchase.
Stocks to Follow
Things were reasonably good until Wednesday, deteriorated somewhat Thursday and went into
meltdown mode on Friday as broad market participants ran for the exits and dragged
everything down with them, even spot gold. See today’s intro for more on that and perhaps a
look at the Producer Basket as well, because bigger cap miners held up better than smaller
caps. That means it was tough for our portfolio of juniors and explorecos, unsurprising given
the circumstances but that doesn’t make up for the disappointment of having to report just two
winners (ARG.to, OCI.v) and five unchanged stocks (MAI.v , RIO.v, MIRL.cse, RPX.v, PAU.cse)
instead of a majority in the green. That left ten losers so we’re not listing them all, we’ll go with
the big drops in Florida Canyon (FCGV.v down 15.9%...UGH!), Contango ORE (CTGO down
13.6%), Mene Inc (MENE.v down 10.0) an d let’s add Newcore (NCAU.v down 9.2%) in for
good measure. In real terms it wasn’t that bad (“tis but a scratch”) and would not have hurt
much if it hasn’t been for the Florida Canyon surprise at the start of the week.
We lost Western (WRN.to) and Amerigo simply moved from Watch List to main list, so we’re
now at 17 open positions on our Stocks to Follow list, three under our self-imposed maximum.
Seven of those are in the green, two are UNCH, eight are in the red.
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$0.285 35.7% $0.75 first tgt, #1 idea
RECOMMENDED STOCKS
Rio2 Ltd. RIO.v STR BUY C$0.80 22-Apr-18 C$0.53 -33.8% Momentum now building
SilverCrest Met SILV STR BUY U$6.90 31-Mar-24 U$8.76 27.0% Quality Ag/Au, U$12.96 tgt
Florida Can. Gold FCGV.v hold C$0.63 21-Jul-24 C$0.53 -15.9% under offer, too cheap
Pan Global Res PGZ.v SPEC BUY C$0.19 19-Feb-24 C$0.14 -26.3% 3 adds,big position,cheap Cu
Marimaca Copper MARI.to STR BUY C$3.05 14-Jan-24 C$3.87 26.9% Quality Cu developer
Amerigo Res ARG.to BUY C$1.54 28-Jul-24 C$1.56 1.3% return, (re)starter position
Bear Creek Min BCM.v SPEC BUY C$0.35 10-Jun-24 C$0.315 -10.0% Spec Ag(& Au) trade, 2 buys
Orecap Inv OCI.v BUY C$0.06 4-May-24 C$0.06 0.0% Exposed to several good jrs
Contango Ore CTGO BUY U$18.70 30-Jul-23 U$19.91 6.5% Production re-rate in Q3
Newcore Gold NCAU.v BUY C$0.205 23-Oct-22 C$0.295 43.9% Cheap Au in West Africa
9

SPECULATIVE TRADES
Aldebaran Res. ALDE.v SPEC BUY C$0.72 16-May-21 C$0.95 31.9% into FY24 news season now
IMPACT Silver IPT.v SPEC BUY C$0.30 14-Apr-24 C$0.235 -21.7% Silver spec, added IKN783
Minera IRL MIRL.cse avoid C$0.195 22-Jul-12 C$0.02 -89.7% leaving list soon (good)
A WATCHLIST OF POTENTIAL TRADES. NB: I DO NOT OWN
Red Pine Expl RPX.v WATCH C$0.08 4-May-24 C$0.08 0.0% Special situation, poss trade
Provenance Gold PAU.cse WATCH C$0.085 8-Oct-23 C$0.08 -5.9% Idaho gold drill play
LONG-TERM NON-MINING HOLD
Mene Inc. MENE.v adding C$0.48 6-Dec-20 C$0.09 -81.3% LT bet, adding slowly
CLOSED TRADES IN 2024 date closed close price
Amerigo Res ARG.to Jan'24 C$1.36 12-Dec-21 C$1.34 -1.5% reduced Cu exposure
Fortuna Silver FSM Jan'24 U$2.92 13-Aug-23 U$3.09 3.4% Time ran out on NT trade
Argonaut Gold AR.to Jan'24 C$0.42 17-Dec-23 C$0.395 -6.0% NT specflip closed on poor Q4
Equinox Gold EQX May'24 U$4.42 30-May-23 U$5.57 26.0% Took sm.profit, disappointing
Adventus Mining ADZN.v May'24 C$0.305 7-Jan-24 C$0.445 45.9% bot out, nice win
SolGold SOLG.to May'24 C$0.22 19-Feb-23 C$0.165 -25.0% ran out of patience
Western Copper WRN.to July'24 C$1.57 26-Feb-24 C$1.53 -2.5% Sold on regional risk
2015 to 2023 annual closed positions in appendices below, 2009 to 2014 closed positions in editions IKN553 or earlier
Now for notes on just a few of our covered companies this week:
Amerigo Resources (ARG.to): POSITION OPENED. It’s only a small position and it’s a
start, but the new trade in ARG is officially open and as was the plan last week, was in place
before the company reported its Q2. See above for more on that, suffice to say that I was
suitably impressed and with regrets that I hadn’t bought more when seeing the numbers. That
also means Friday’s selling suited my personal cause and with the plans around Florida Canyon
(FCGV.v) coming to naught (see above and below), I may well add some more ARG in the week
to come in order to top up copper exposure
Western Copper & Gold (WRN.to) (WRN): POSITION CLOSED. It was easy to sell at the
same early 50s price range we noted last weekend and while the stock also sold off on the
sector dumpage Friday, that’s neither here nor there. So a small loss booked and a trade that
won’t go down in my memoirs, made all the worse because our entry point was well timed and
we were soon in the green on the trade before the negative news and selling came to wipe out
profits. There’s a lesson to learn from this failed trade, I hope I can find it.
Florida Canyon Gold Inc (FCGV.v): DID NOT ADD, NOW HOLDING. What an utter pain
in the backside. Just hours after IKN793 went out with the second installment of our Florida
Canyon (FCGV.v) and anticipating an additional purchase before the hammer came down on a
deal to sell itself to the highest bidder, we got this (15):
“VANCOUVER, BC and TORONTO, July 29, 2024 /PRNewswire/ - Integra Resources
Corp. ("Integra" or the "Company") (TSXV: ITR) (NYSE American: ITRG) and Florida
Canyon Gold Inc. ("FCGI") (TSXV: FCGV) (together, the "Companies") are pleased to
announce that they have entered into a definitive arrangement agreement (the
"Arrangement Agreement"), dated July 28, 2024, whereby Integra has agreed to acquire
all of the issued and outstanding shares of FCGI pursuant to…”
Sure enough, our intel had played out but even quicker than imagined. We bought FCGV for the
M&A trade and it had indeed found its buyer. However…
“Under the terms of the Transaction, FCGI shareholders will receive 0.467 of a common
share of Integra (each whole share, an "Integra Share") for each common share of
FCGI…
And
“…The Exchange Ratio implies consideration of C$0.69 per FCGI Share…”
10

Ugh. In order to put that deal price into perspective, please see the work done in IKN792 two
weekends ago, but here we pick up the pieces and cry over the spilled milk.
 I am dumbfounded that FCGV agreed to this deal at this low price.
 Then again and in hindsight I’m not, because Cormark has played one helluva
middleman’s game here. Not only is Cormark the lead supplier of funds via equity
financings for ITR, but also the chair of FCGV is also a VP at the brokerage.
 This is how Canadian mining works, folks. Then these same people will scratch their
heads and write meaningful op-eds, wondering why the retail investment community
doesn’t want to participate in their “success”.
Let’s be clear here:
A company that starts its very short life by claiming a 75c equity fair value, then trades down to
55c as early holders dump into the liquidity moment, then trades for the only week of its real
market life at 63c to 65c does its shareholders zero favours by agreeing an all-paper 69c deal,
even if the paper were good and solid. ITR’s paper is far from that and nobody was surprised to
see ITR dump 10% on the news and drag the real price of this deal to where FCGV traded all
week, South of 55c. How on earth is this fiduciary duty to shareholders? On what VWAP is this
being pegged? Why did FCGV even bother to publish a 43-101 economic report? Why did they
reassess asset value of the mine less than two quarters ago when gold was trading 20% lower
than it is today?
And that’s my rant about this corrupt, self-serving deal, got it off my chest. As for the practical
side of things, it probably goes without saying but to be clear, I did not make good on my plan
to add FCGV as per last weekend’s edition once the news of this awful deal had hit. Instead,
the plan now is to hold through for two reasons:
1) Though not likely, there’s enough room in this deal to get a third party competing bid,
as the way Cormark ran the “open shop process” (ironic speech marks) clearly left a lot
to be desired and now the news is out, another miner may decide to take a stab at it.
The break fee isn’t onerous and there’s both financial width and time enough for
another offer. Be clear, it might not be likely (put a gun to my head and I’d call it a
25% chance) but it’s possible. There’s no reason to dump at this stage.
2) The dynamics of this deal probably mean ITR gets a boost once it’s closed, so I’m okay
about holding through until my FCGV become ITR and then selling at a better price.
Therefore, the decision is to hold through on FCGV.v. I won’t add any more shares but I’m not
in the same type of hurry to sell as the idiots running this company were, so it will sit in the
portfolio for a few weeks and we’ll see how it pans out.
Finally, if you followed me into this trade feel free to berate me, criticize or unsubscribe from
the service but first listen to my defence: As a value investor, first and foremost I go with the
data as presented and will always do that. In this case, we had a company that had recently
valued its asset at a U$128m carry and not only that, made sure its board fully believed in that
value by doing it in the audited annuals and reversing a previous impairment. That’s the asset,
11

we also had the recently published 43-101 economic report on Florida Canyon using data valid
as at December 31st 2023 that laid out a strong NPV even before exploration upside was
factored in, all at an average gold price of U$2,150/oz. Both those valuations were up to date
and with explicit approval from the board of Florida Canyon, so just why they agreed to sell at
literally half the price is beyond me. Some discount for risk perhaps, but not an all-share deal
that valued the company at 69c and the asset at 60c in theory, but 53c and 44c in practice
(backing out the net working capital position) once the inevitable dump of the ITR share price
had happened. Of course, the value investor (i.e. me) has to take into account corporate level
risk and the propensity of boards to reach shareholder-unfriendly deals, but in this case the
Florida Canyon asset value compared to its apparent share price at market left such a wide gap
that the value investor’s (i.e. me) concerns were suitably countered. Out simply, the risk/reward
balance looked skewed in our favour and the fact that reality turned out to be otherwise is a pill
I must swallow. However (and this is the point I most want to make), be clear that I’ll make the
same mistake again because that’s how value investing works. You have a framework, you
abide by it and you know you’re never going to bat 1,000 because nobody does. This one
started and ended quickly as well as badly, which makes the trade more evident and topical,
but ultimately it’s going to be a 10% approx loss on a small trade and one that hurts the ego
more than the back pocket. I’ll apply the same process to a different company and set-up in the
future and win one, instead of lose one.
SilverCrest Metals (SILV) (SIL.to): As with many
PM producers, SILV was going well last week until the
Thursday downturn became the Friday rout and in this
case, a stock that lost % on the week. This five day
chart has a pattern repeated by many other sector
stocks, including that buying spike at the bell Friday
quickly followed by the widespread liquidation as the
broad markets cracked under pressure.
We remind readers that next week includes the SILV
2q24 financials, due out post-close on Wednesday and
a ConfCall Thursday morning (the link for that is here
(16)). We’ll take a good look at the results in IKN795, next weekend.
Bear Creek Mining (BCM.v): Even though it sold off with the rest of the market (and
particularly the silver juniors) on Thursday and Friday, I took cheer from the way BCM traded
last week because it passed the first test; Bottom tested and a rebound that indicates the
market understands the company isn’t going out of
business. As noted in several previous issues, the
main reason for this pick as a way to speculate on
silver is its Corani project in Peru, but there’s also a
side order of “things aren’t as bad as they seem” with
its financials. While surveying the online
commentariat, I’ve noticed that certain professional
financial people (no names no packdrill) have
commented on BCM being insolvent and if you just
open the balance sheet and take a 90 second look at
the numbers, it’s an understandable opinion to draw.
It’s also wrong, because BCM’s situation only becomes
apparent in the financial notes.
Of course it’s risky and of course this is a small speculation, rather than a more serious
investment in silver producers such as my current trade in SilverCrest (SILV). But it’s here for a
reason and hey…risk is what we manage round these parts.
Contango ORE (CTGO): It’s not a case of ever getting used to the highly volatile nature of
this stock, it’s more a case of not being too surprised when it suddenly dives the way it did on
12

Thursday and Friday. Sellers are a constant but when the buyers dry up, they don’t stop selling
and the resulting drops are real rollercoaster rides.
The Q2 report from Kinross confirmed that (as operator)
Manh Choh had started as per the plan and the ramp up to
full production was in progress. That’s good news, but also
reminded this desk that CTGO didn’t have to run that last
placement when it did (or at those terms wuith that warrant,
ugh). If it weren’t for that, I’m convinced we would have
been at $27 and dumping to $25 this week, instead of $23
dumping to $21. Sigh.
Aldebaran (ALDE.v): What with being a large copper
project in San Juan Argentina, ALDE responded with some reflected glory on Tuesday and the
news that LUN and BHP were moving on FIL (and Josemaria), also large copper projects in San
Juan Argentina. But interest quickly faded and once again we saw ALDE unable to generate
trading momentum.
The Copper Basket
After thirty-one weeks of 2024, The Copper Basket shows a gain of 6.50% to level stakes:
company ticker price 1/1/24 Shares out Market Cap current pps gain/loss%
1 NGEx Minerals NGEX.to 7.16 186.824 1677.68 8.98 25.4%
2 Solaris Res SLS.to 4.13 161.833 516.25 3.19 -22.8%
3 Marimaca Cop MARI.to 3.43 93.11 360.34 3.87 12.8%
4 Los Andes LA.v 11.80 29.53 253.66 8.59 -27.2%
5 Faraday Copper FDY.to 0.63 204.72 178.11 0.87 38.1%
6 Aldebaran Res. ALDE.v 0.89 169.819 161.33 0.95 6.7%
7 Arizona Sonoran ASCU.to 1.75 109.17 148.47 1.36 -22.3%
8 Hercules Metals BIG.v 1.38 231 133.98 0.58 -58.0%
9 Oroco Res OCO.v 0.375 236.911 85.29 0.36 -4.0%
10 American Eagle AE.v 0.26 116.75 78.22 0.67 157.7%
11 Element 29 Res ECU.v 0.18 106.25 34.53 0.325 80.6%
12 Kodiak Copper KDK.v 0.58 63.93 28.77 0.45 -22.4%
13 QC Copper QCCU.v 0.12 173.7 20.84 0.12 0.0%
14 Camino Min COR.v 0.07 206.66 12.40 0.06 -14.3%
15 C3 Metals CCCM.v 0.61 61.885 12.38 0.20 -67.2%
NB: All stocks in CAD$ Portfolio avg 6.50%
13

A mixed bag of a week and despite the carnage on Friday, the basket average managed to add
3.59% on the back of six winners versus seven losers (), with two unchanged stocks making up
the numbers. The average was propped up by Element 29 (ECU.v up 27.5%) once again, aided
and abetted by some more reliable buying in American Eagle (AE.v up 11.7%).
As for losers, they were headed by C3 Metals 25% The Copper Basket 2024, weekly evolution
(CCCM.v down 18.4%) and don’t say I didn’t warn
20%
you, it’s now a lower market cap than even the
15%
disaster that is Camino Minerals. The other big
10%
drop came from Hercules Metals (BIG.v down
5%
12.1%) as that company started promoting The
0%
Long Game to its supporters.
-5%
-10%
We’ve hashed over the Friday meltdown in other
places, not going to repeat all that here. Instead
and despite the overall market weakness we saw
copper doing quite well last week and
re-testing the lows twice and
rebounding both times. The phrase
scribbled on the chart is “cautious
optimism”, not just optimism.
The market continued with its battle
between the bearish narrative of real
use of copper in the near-term and
the bullish outlook from financial
desks, no change there. What did
change last week was the reasons for
the abstract market’s bull view, as
the FOMC communiqué on
Wednesday followed by that 4.3%
unemployment reading Friday caused
a straightforward knock-on effect:
USA Rates Dropping = Dollar Weaker = Things Measured In
Dollars And Sold In Other Countries Higher
No rocket science applied in that sequence and for another view, here’s Reuters on Friday
morning, pre-Employment Report (17):
The only thing I’ll add here is that those expecting a market crash should and now pointing at
the Sahm Rule (allow me to re-label, let’s try “Sahm Opinion”) ought to allow Doctor Copper his
view, as the world’s barometer metal should not have rallied Friday afternoon if the normal
checks and balances of the free market system weren’t working inside their tolerances.
Bottom line: Neither the Good Doctor nor this desk are buying the Doom Hype from a market
with desks run by people who were watching Nickelodeon in 2008 and 2009. Hard landing?
Possible. Soft landing? Also possible. End of capitalism as we know it? No.
Now for inventory stuff and it’s the end of another month, so first the long-term tracker charts
and then the regular update on the week’s action.
14
ts1naJ ht7naJ ht41 ts12 ht82 ht4bef ht11 ht81 ht52 dr3raM ht01 ht71 ht42 ts13 ht7rpA ht41 ts12 ht82 ht5yam ht21 ht91 ht62 dn2nuj ht9 ht61 dr32 ht03 ht7luj ht41 ts12 ht82 ht4gua
source: IKN calcs

The basket we arrive at the end of another week for The Copper Basket and move to our
weekly look at world copper inventories, data from Cochilco:
 The three official world inventory systems combined to add a total of 3,701 metric
tonnes (mt) to stocks last week, the total coming to 555,272mt
 The SHFE has finally dipped under the 300k line, with the 6,062mt draw down last
week putting the total copper under roof at 295,141mt.
 The LME saw yet another add, this time 8,750mt to bring its total to 246,500mt. Once
again that tonnage went to its Asia stores with Taiwan alone accounting for 7,500mt.
Interestingly, New Orleans only has 500mt left in its warehouses and with another
50my in Mobile (basically one truck’s worth) stocks of copper in North America are at
historic lows.
 Meanwhile at the Comex, another addition of 1,013mt to get the total to 13,631mt. No
biggie.
The dedicated SHFE chart shows how stocks have finally dropped under the first of those lines,
but it also shows how stocks are still way higher than in any normal year, so apart from that
“psychological barrier”, not much has changed and our data continue to point to asthenic
demand in the world’s biggest market. That won’t last forever and there’s money to be made by
the person who gets the “how long?” question right.
SHFE copper inventory levels, 2019 to 2024
400000
350000
300000
250000
200000
150000
100000
50000
0
15
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 2024
2023
2022
2021
2020
2019
source: Cochilco data
Now for some notes on a couple of our basket stocks.
Element 29 (ECU.v): The unreliable trading
continues in ECU, don’t take last week’s +27.5%
move in the stock as anything real. This chart
shows the reality and the way it put in some
sort of bottom at 25c, that’s when someone was
willing to step up and take size from a seller.
Then came Friday and the arrow shows how 55k
shares managed to add $9m in market cap to
the company. So yes, the price has improved
and if it can trade at 25c going forward that’s a
lot better than the typical 15c prices early year
(and down at 10c at one point), but in the same
way as images on social media in these days of
AI, don’t believe everything you see.
Hercules Metals (BIG.v): Down 12.1% on the back of this NR (18), BIG last week set the
scene for “The Long Game” instead of revving up spectators for market moving new sin the
near term. That’s its own message and the selling is therefore understandable. Drilling has hit

fault zones and despite the CEO comments about the company being able to “increase
productivity” thanks to this new information, the delays to the planned program are now
telegraphed for all to see. There were other
indicators that BIG is now catering for the longer-
term desires of sponsor Barrick more than the
immediate needs of retail speculators such as you
or I, for example the neat framing of the reverse
circulation rig being added to the program as from
September because they want to drill deep and
the expense and time of putting in a wider road is
apparently worth it. That’s a good way of telling
us that the place where they want to drill is the
fault zone that’s screwing with the diamond drill
and until they know what’s down there, don’t
expect sparkling assay results. BIG also
announced it had paid a contractor with 500k
options, strike 62c, with half of them vesting
immediately and knowing contractors the way I do, they’ll be liquidating them at the first
opportunity,
Solaris Resources (SLS.to): There’s a big
difference these days when SLS publishes one of its
sophism specials about some or other aspect of
community relations at Warintza. Last week we got
“Solaris Completes Socialization of Initial District
Exploration Programs” (19) on the morning of Friday
August 2nd, with the company again offering
information on the groups and bodies in the Shuar
Arutam region without addressing the PSHA elephant
in the room. The difference these day is market
reaction, as SLS dropped 4.2% on the news as the
market has learned not to take these purveyors of
propaganda at face value. Friday’s close was another 52 week and all-time low for the stock.
The Producer Basket
After 31 weeks of 2024, the Producer Basket shows a gain of 25.33% to level stakes:
company ticker price 1/1/24 Shares out MktCap(U$Bn) current pps gain/loss%
1 Newmont NEM 41.39 1152.6 55.91 48.51 17.2%
2 Agnico Eagle AEM 54.85 497.971 37.41 75.12 37.0%
3 Barrick GOLD 18.09 1756 31.45 17.91 -1.0%
4 Franco-Nevada FNV 110.81 192.119 24.03 125.10 12.9%
5 Pan American PAAS 16.33 364.439 7.65 21.00 28.6%
6 Lundin Gold LUGDF 12.64 238.22 4.09 17.15 35.7%
7 Eldorado Gold EGO 12.97 202.472 3.41 16.84 29.8%
8 Hecla Mining HL 4.81 617.768 3.05 4.94 2.7%
9 Dundee PM DPMLF 6.43 183.278 1.53 8.37 30.2%
10 Wesdome Gold WDOFF 5.83 148.95 1.39 9.34 60.2%
All prices and stock quotes in U$ Port. avg 25.33%
The GDX benchmark ended the week unchanged to the penny and our basket of ten stocks
somehow managed to return a 0.5% gain, despite that carnage on Friday. Seven of our stocks
returned gains (NEM, GOLD, AEM, FNV, LUGDF, EGO, WDOFF) and while the best moves came
from Lundin (LUGDF up 5.2%) and Eldorado (EGO up 5.2%), arguably the best moves came
16

from the Tier 1s Newmont (NEM up 3.8%) and Agnico (AEM up 2.3%), both of those doing a
lot better than the GDX considering their size. Of the three losers (PAAS, HL, DPMLF), notably
two of those are silver plays and the biggest loss by far was taken by Hecla (HL down 12.6%).
We would have done a lot better if it hadn’t been for that, but with the lead back to 7.69%
there’s no complaining here.
The 2024 Producer Basket: Weekly performance and
40% comparative to GDX control
30%
20%
10%
0%
-10%
-20%
Hecla (HL): The softest member of our group of
ten, HL suffered last week as silver dumped
because that’s what Hecla does. It’s a grotty,
marginal silver miner with a long history of over-
promising and under-achieving but hey, that’s
exactly why it was picked as a component of the
2024 basket. Up to last week it was ahead of the
basket average, now its well behind and it’s
anyone’s guess where it will be by the time August
becomes September, but the leverage is what we
wanted and that will always be a double-edged
sword.
Newmont (NEM): Without doubt the most
significant trading result of the week and even
though it got hit along with the rest of them on
Friday, NEM showed relative strength all week and
even saw buying on Friday, once the dump was
done. This is what the precious metals mining
world needs and wants from its market cap leader
and the buying pattern
Barrick (GOLD): we noted last weekend how
around 42% of Barrick 2q24 production is
accounted for at an abnormally high AISC of
U$1,689/oz, thanks to NEM’s disclosure of costs at
the Nevada Gold Mines (NGM) JV. That’s worth
keeping in mind, as Barrick since then has been
virtual lockstep with the market as seen here
We still have a week and a bit before GOLD
reports its quarter on August 12th, but seeing it
trade the sector average when all signals are for a
poor quarter opens up the potential for a trade
into its earnings.
17
ts1naJ ht7naJ ht41 ts12 ht82 ht4bef ht11 ht81 ht52 dr3raM ht01 ht71 ht42 ts13 ht7rpA ht41 ts12 ht82 ht5yam ht21 ht91 ht62 dn2nuj ht9 ht61 dr32 ht03 ht7luj ht41 ts12 ht82 ht4gua
The 2024 Producer Basket: Percentage diff. between
GDX benchmark & basket (negative= IKN ahead)
2.0%
ikn 1.0%
gdx control 0.0%
-1.0%
-2.0%
-3.0%
-4.0%
-5.0%
-6.0%
-7.0%
-8.0%
source: IKN calcs -9.0%
ts1naJ ht7naJ ht41 ts12 ht82 ht4bef ht11 ht81 ht52 dr3raM ht01 ht71 ht42 ts13 ht7rpA ht41 ts12 ht82 ht5yam ht21 ht91 ht62 dn2nuj ht9 ht61 dr32 ht03 ht7luj ht41 ts12 ht82 ht4gua
source: IKN calcs, NYSE data

The TinyCaps List
After 31 weeks of 2024, the TinyCaps show a gain of 50.96% to level stakes:
company ticker price 1/1/24 Shares out Mkt Cap current pps gain/loss%
Aston Bay BAY.v 0.065 248.82 26.13 0.105 61.5%
Awalé Res ARIC.v 0.135 85.319 49.49 0.58 329.6%
District Metals DMX.v 0.170 106.98 32.63 0.305 79.4%
Endurance Gold EDG.v 0.18 150.136 21.77 0.145 -19.4%
Kirkland LDC KLDC.v 0.100 88.625 5.76 0.065 -35.0%
Latin Metals LMS.v 0.075 71.476 6.43 0.09 20.0%
Palamina Corp PA.v 0.130 71.285 10.69 0.15 15.4%
South Star STS.v 0.750 48.8 26.84 0.55 -26.7%
Surge Copper SURG.v 0.090 284.79 39.87 0.14 55.6%
Viva Gold VAU.v 0.120 118.384 18.35 0.155 29.2%
Prices in CAD$, data from TSXV basket avg 50.96%
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 (though this year I’m making one clear exception and one rule
stretcher). 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, our task is to trawl through the TSXV and find companies that are small but with life in them. The vast
majority of tinycap stocks are broken stories, 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 2024. 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
TinyCaps, 2024 weekly tracker
down among the little guys it doesn’t pay to be too 100%
choosy, but still I preferred companies that have teams 90%
or people with good peer reputations. 80%
70%
Down 9.32% on the week, with eight of the ten 60%
50%
stocks returning week-over-week losses and only 40%
Endurance (EDG.v up 0.5c) bucking the trend, then 30%
20%
Surge Copper (SURG.v unch) holding the line. 10%
However, there weren’t any massive losers among 0%
the other eight with Palamina (PA.v down 11.8%)
and Awalé (ARIC.v down 9.4%) at the bottom end.
Awalé Resources (ARIC.v): The old saying “buy the rumour, sell the news” was in play with
ARIC last week when if gave us its first drill result NR (20) since its March 25th gangbusters hole
that set the Charger zone at ARIC’s Odienné project alight. The pick of the four holes reported
last week was OEDD-88, with a cut of 29m of 20
g/t gold as seen on this drill chart (along with the
reasonable hole 85). While hole 88 wasn’t quite up
to hole 83’s 45.7 g/t gold over 32m that we saw in
March, it’s still a strong hole and in the words of
one of the company insiders with whom I spoke
last week, these holes validate Charger as a real-
deal target and in particular the results from the
headline hole, cut 50m from 83 “show that
something noteworthy is in-situ”. I agree.
18
ts1naJ ht7naJ ht41 ts12 ht82 ht4bef ht11 ht81 ht52 dr3raM ht01 ht71 ht42 ts13 ht7rpA ht41 ts12 ht82 ht5yam ht21 ht91 ht62 dn2nuj ht9 ht61 dr32 ht03 ht7luj ht41 ts12 ht82 ht4gua
source: IKN calcs, TSX data

As for trading, the stock saw buying on whispers one day before it dropped the NR and the
stock popped on early volume, only to reverse after the news was out. Sadly, this type of move
doesn’t help ARIC’s deserved reputation as a leaky boat (if you don’t remember the “fun”
around the bought deal in April you’ll need to if you’re interested in the stock) and watching the
stock move like this on no news, then getting the first drill result in over four months just hours
later, then seeing the stock nosedive is the pattern that will scare away traders and speculators.
Wednesday’s NR was the first 900m (or so) from an announced 3,000m program and that
means more news coming soon, so seeing people with a clear insider track on news from the
company is bad optics for the NRs coming soon.
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
Venezuela: Aftermath of the Presidential election (non-mining)
It’s non-mining and it’s only for those who care, today’s only Regional Politics note is concerned
with the only political event in the region that matters today. Picking up from the first person
op-ed in today’s intro, a few lines on how the last week has been in Venezuela. To begin and as
noted above, the dark shadow didn’t begin on the announcement of Maduro’s false victory,
instead the positive atmosphere of the morning with people eagerly queuing for their moment
to vote started changing for the worst in the afternoon. First came images of polling stations
being shuttered and voters in their thousands being locked out of the buildings, unable to vote,
with voting officials inside the buildings brandishing the keys at the crowd and literally laughing
in their faces. Then as the polling stations that were open closed came unofficial
pronouncements from the current government ministers that exuded confidence, insisting that
Venezuelans were voting heavily for Maduro when that was obviously not the case. Then came
press conferences and that’s when things got truly dark: First the opposition, led by figurehead
19

candidate Edmundo González and main opposition figure María Corina Machado, who said they
were confident, they had preliminary numbers from their team of observers, they could not say
anything until the official results were announced (as per the law) but they made it very clear
that a majority of Venezuelans had voted for change. Just a few minutes later the government
held its main presser in which they said they were confident, they had preliminary numbers
from their team of observers, they could not say anything until the official results were
announced (as per the law) but they made it very clear that a majority of Venezuelans had
voted for continuity. In other words, the government said exactly the same as the opposition
which was cynical in itself, but most unnerving was how government lackeys copied words and
phrasing of Edmundo González and María Corina Machado. It was deliberate, eerie, they used
many of the same words and the air of supreme confidence in what the CNE electoral body was
about to publish was as bare-faced as it was disheartening. Then came the official result as
reported in last weekend’s edition and we found out the numbers the Maduro regime had
decided upon for its fakery, they went with 51.2% to 44.2%. However the opposition was
obviously prepared for the electoral fraud and has used the system under which Venezuela
votes smartly and wisely. The tallying process is governed by clear laws that require observers
and agreed signatures on all the “actas” before they are sent into the CNE electoral body HQ.
Therefore, by having official observers present at all counts and collecting the official “actas”
(acts, voting result total tallies) from polling stations BEFORE they were sent to head office and
getting copies of each acta, the opposition has demonstrated that the real result was 67%
Edmundo González vs 30% Nicolás Maduro. The opposition has published its data and all the
tallies lists on a website that was prepared specially for the election, pre-supposing that the
Maduro dictatorship would do what they have done. As a result, we’ve seen bodies all over the
world quickly draw the same conclusion that yes indeed, the result as announced by Maduro on
Sunday evening is a blatant fraud. Notable, according to electoral law the government and its
electoral body, the CNE, is obliged to present the actas within 48 hours of the result being
called but until now they’ve refused to do so, thereby opening the election to potential
annulment. However, as Maduro has his own puppets in control of the Supreme Court it’s
unlikely we’ll see the judiciary do anything proactive.
We then had protests, crackdowns, summary arrests and the country is now a hotbed of
rumours but the most significant moment came this weekend when the opposition led by María
Corina Machado held protest marches in all major towns and cities, including the main one in
Caracas where hundreds of thousands of people turned up. As leader of the opposition
resistance, María Corina Machado has been nothing short of heroic in her actions and stance
and those who speak Spanish would do well to find footage of her speaking with a group of
police officers sent into Caracas on Saturday to “police” the protest meeting (i.e. repress them).
Instead of allowing the police to begin their move on the crowd, Machado went over and
addressed them personally with a five minute ad hoc speech that was as courageous as it was
moving. Her position is for non-violent protest and she’s ready to welcome all sides into the
movement, even those officers that she left with tears in their eyes. An incredible moment,
captured by someone with their telephone.
Meanwhile, the international has generally fallen into the camps one would expect, with
countries such as China, Russia, Bolivia, Nicaragua, etc congratulating Maduro but most of the
serious entities either expressing serious doubts about the result (e.g. supposed allies of
Maduro such as Colombia and Brazil) or not hiding from the subject, calling the election illegal,
fraudulent and with some recognizing Edmundo González as the winner. This international
pressure is similar to the last time Venezuerla ran a dubious election in 2017, but this time the
opposition has clear-cut proof of the true vote tally (via its careful collation of the polling station
“actas” and there’s also the size of the real victory, with 2 out of 3 Venezuelans voting the same
way. How this plays out is yet to be decided, but we know Maduro has fallen back on the “We’ll
wait them out” tactic he used in 2018 to hold onto power. Meanwhile and as usual, the
country’s military holds the balance of power and so far at least, Maduro has kept his generals
under control (it’s a big slush fund, they all get to eat at the same trough) but there have been
no end of rumours about dissention in the ranks. Therefore we face one of two likely scenarios,
either 1) the long-winded way of international pressure that has failed so far to dislodge the
20

dictator and his illegitimate government or 2) an insurrection movement that would bring the
regime to an end very quickly but must, by its very definition, came as a Black Swan event.
However, the preparedness of the opposition and its moves to date have been all the right ones
and that organization, combined with the clear result that Maduro is trying to hide, will make
his survival far more difficult than in 2018.
Market Watching
Testing myself on 35 exploration stage copper companies (Part Four)
We’re now three months into this experimental series, planned for monthly updates over the
course of the second half of 2024. By way of a reminder before we get to the updated table,
we’re monitoring the price action in the copper exploreco sector for the rest of the year in order
to spot springers, winners and what type of stock does best in the new environment for copper.
The league table has 35 juniors with projects, all of them copper targets and most of them in
The Americas, be that North, Central or South. The rules:
 We start with the share prices as at May 17th (recent market top)
 We take a snapshot price reading at the end of each month and report in that
weekend’s edition (e.g. today)
 We calculate the percentage change since May 17th
 We put the 35 stocks in league table order, with the best performers at the top
However, before the game started I ranked the companies and projects, according to my wholly
subjective opinion of what they have to offer. Please see IKN783 for the stocks in colour
grouping, (with three added) but by way of a reminder, here’s how I’m rating them as
prospective Value propositions:
The colour code
Big Star Green
Star Blue
Neutral Cream
Dog Orange
Big Dog Red
Now for the updated table, in which they are ranked in order of percentage gain or loss since
IKN783, the second edition of this series in IKN785 and the latest edition in IKN789. The last
time we tuned in there was only seven stocks in positive territory, that’s crept up to eight but it
still means there are 27 negatives.
Putting myself to the test on 35 copper juniors
Proj.
Rank Company Ticker Project Quality PPS May 17th IKN Value Score Aug 1st % change
1 Element 29 ECU.v FdC/Elida 4 0.16 4 56.3
2 Trilogy Met TMQ.to UKMP 4 0.65 2 43.1
3 SolGold SOLG.to Cascabel 5 0.155 5 29.0
4 Northern Dyn NDM.to Pebble 2 0.415 2 21.1
5 Filo Corp FIL.to Filo 10 26.66 7 18.0
6 Regulus Res REG.v AntaKori 7 1.72 4 16.3
7 Cordoba Min CDB.v Alacran 3 0.47 2 4.3
8 Faraday Cop FDY.to Copper Creek 7 0.80 6 3.7
9 Pampa Metals PM.cse Piuquenes 5 0.25 6 -2.0
10 American Eagle AE.v NAK 8 0.74 7 -4.1
11 Marimaca MARI.to Marimaca 7 4.15 7 -6.7
12 Camino Min COR.v Chapitos 3 0.065 2 -7.7
13 NGEx Min NGEX.to Helados 7 9.98 5 -8.0
14 Panoro Min PML.v Cotabambas 3 0.12 2 -12.5
15 Atex Res ATX.v Valeriano 5 1.41 3 -12.8
16 Arizona Son ASCU.to Cactus etc 7 1.65 4 -15.2
17 Los Andes LA.v Vizcachitas 5 10.40 3 -16.8
18 Hot Chili HCH.v Costa Fuego 5 0.97 5 -17.5
19 Alta Copper ATCU.to Cañariaco 3 0.71 1 -18.3
21

20 QC Copper QCCU.v Opemiska 5 0.15 6 -20.0
21 Aldebaran ALDE.v Altar 6 1.20 6 -20.0
22 Pan Global PGZ.v Escacena 5 0.19 8 -21.1
23 Kodiak KDK.v MDN 3 0.60 3 -21.7
24 Oroco OCO.v Santo Tomas 4 0.455 4 -23.1
25 Western Cop WRN.to Casino 5 2.09 7 -26.3
26 Libero LBC.v Mocoa 4 0.395 2 -30.4
27 Kutcho KC.v Kutcho 2 0.20 2 -32.5
28 Hercules BIG.v Hercules 7 0.89 6 -33.7
29 Surge Copper SURG.v Berg/Ootsa 4 0.22 4 -36.4
30 Sendero Res SEND.v Peñas Negras 5 0.095 4 -36.8
31 Solaris Res SLS.to Warintza 5 5.43 3 -38.7
32 Copper Fox CUU.v Schaft Creek 2 0.42 2 -42.9
33 C3 Metals CCCM.v Jamaica 3 0.41 2 -43.9
34 Chakana PERU.v Soledad 3 0.10 3 -57.9
35 World Cop WCU.v Escalones 2 0.305 1 -70.5
source: TSX/V data, IKN calculations
Mene Inc (MENE.v) 2q24 financials
It’s not going to be an extensive look but as MENE Inc (MENE.v) filed its 2q24 financials on
Friday evening and the numbers were better than expected, a bried overview is required. Q2 is
normally one of the two soft quarters in the Northern hemisphere luxury goods cycle and we’d
expected something in line with 2q23, instead we saw sales of C$6.464m and while some of
that was the higher cost of spot gold, the way MENE managed to sell 58kg of gold in the period
from slightly lower number of customer orders YoY suggests that clients were going upmarket
and buying weightier baubles per docket.
MENE: Customer orders, per qtr
So revenues were better than expected, costs were in-line with the last two quarters (they
cannot control the price of bullion, they can and did control operating costs)…
…and the resulting operating loss of $0.412k was not an issue, particularly as it included $0.5m
of share based payments (i.e. non-cash bonuses for insiders). I’m not doing all the charts today
but the balance sheet remains rock solid and MENE also increased precious metals inventory as
22
7514 0972 4643 4745 7605 7734 3514 4856 7045 7493 5714 5946 8394 0563 5443 7974 8573 4353
8000
7000
6000
5000
4000 3000 2000
1000
0
02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
MENE: Precious metals sales in Kg, per qtr
source: MENE filings
96 93 65 67 97 66 26 89 08 66 65 79 37 84 54 96 54 85
110
100
90
80
70
60 50 40 30 20
10
0
02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
source: MENE filings
)tP
ronim
htiw( uA
gK
MENE: Revenues per qtr
751.5 934.3 324.5 11.7 302.7 457.5 813.5
894.8
643.7 158.5 50.5
566.8
251.7 389.4 392.4 268.6 928.4 464.6
10
9
8
7
6 5
4 3
2
1
0
02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
C$m MENE.v: Costs breakdown
source: company filings
127.1
441.4 582.1125.2
133.1
548.3
319.1
914.5
35.1
664.5
34.1
422.4
614.1
270.4
248.1
984.6
656.1
393.5
296.1
123.4
454.1
729.3
651.2
726.6
315.1
924.5
334.1
394.3
996.1
343.3
893.2
591.5
1.2
396.3
401.2
277.4
10
9
8
7
6 5
4 3 2
1
0
02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
$m
COGS operating exp
source: company filings,IKN ests

it prepares for Q4. Overall a better quarter than expected, a company on rock solid financial
ground and a new CEO that must be pleased with the better sales number.
This is a very cheap stock, be in no doubt. So many companies of this ilk are build on pure
growth expectations and are prone to financial failure if things don’t go their way. MEBNE is
built on very solid foundations and even if it doesn’t turn a profit in any given quarter, it’s been
developed with the long-term in mind and can take a prolonged period of economic downturn
without issue. With its upside potential once the economy gets motoring again and luxury
goods come back into fashion (literally), you’re getting a lot for your money at these prices.
MENE.v: Operating income, per qtr
23
807.0- 763.0-
742.0
222.0-
702.0
1.0
71.0-
761.0 792.0
261.0- 133.0- 811.0-
12.0
750.0
947.0- 137.0- 469.0- 214.0-
1
0.8
0.6
0.4
0.2
0
-0.2 -0.4 -0.6
-0.8
-1
02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
C$m
source: company filings
MAG Silver (MAG.to) (MAG) 2q24 financials
As mentioned on around 450 occasions on these pages, it’s not easy to find quality silver miners
in today’s market and while companies such as Bear Creek (BCM.v) and IMPACT (IPT.v) are
reasonable vehicles for a speculative trade, when thoughts turn to investment the field is sparse
indeed. For that last year we’ve zeroed in on SilverCrest Metals (SILV) on these pages, we now
own shares in the company and so far the trade has gone well enough, but the other “quality
silver” we considered closely was MAG Silver and last week that company filed its 2q24
financials (21).
MAG: Quarterly Earnings overview
As 44% minority owner of Juancipio, MAG doesn't have to file costs and so forth on its P+L and
instead simply files "Income From...", its portion of what the JV generates. In 2q24 that came
to U$25.123m, right on our estimate of U$25m. Costs at U$3.622m and general exploration
expenses of 95k were both lower than our guesstimates and that means the Mine Operating
Earnings of U$21.406m beat our guess handily. The company continues to use its tax credits in
Mexico and gets interest from the cash it loaned to
the JV, so once the numbers are crunched we get
net earnings of U$21.614, which is an EPS of 21c.
By comparing MAG to our preferred silver trade
SilverCrest (SILV), we see the two trading in
lockstep over MAG’s reporting period and that’s not
a bad result for this company. However, the EPS of
8.11 0.3
8.8
9.2 8.3
0.1- 9.7
3.3 5.4
4.22
2.3
1.91
7.31 1.4
1.9
1.12
0.3
9.71 2.91
1.4 8.41
1.52
6.3
4.12
MAG: EPS, per qtr
U$m
Income from Juancipio
30
G&A
25 Mine Op. Inc
20
15 10
5
0
-5 source: company filings
3q22 4q22 1q23 2q23 3q23 4q23 1q24 2q24
7.2 7.7 3.8 8.0-
6.4 8.81
6.8
2.51 5.41 0.12
25
20
15
10
5
0
-5
-10
22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
U$/share
source: company filings, IKN calcs

21c implies a 15X P/E ratio this weekend and that looks priced close to perfection. Then there’s
the way it’s been spending its treasury on its other projects that haven’t come close to
impressing in the same way Juancipio has, there’s a feeling of MAG throwing valuable treasury
down a money pit. As SILV has performed better in 2024 to date, I’m happy enough to stick
with my preferred silver vehicle but equally, I wouldn’t have featured MAG today if it hadn’t
delivered well this quarter. A good and profitable silver company.
Sandstorm (SAND) (SSL.to): The debt still weighs
A quick word on Sandstorm Gold Royalties (SAND) (SSL.to), which also filed its Q2 report last
week. The results wer in-line with expectations, here we point out its weak flank once again,
that debt it took out in 3q22:
SAND: Liabilities Breakdown per qtr
600
550
500
450
400
350
300
250
200
150
100
50
0
24
51q1 51q3 61q1 61q3 71q1 71q3 81q1 81q3 91q1 91q3 02q1 02q3 12q1 12q3 22q1 22q3 32q1 32q3 42q1 42q3 52q1 52q3 62q1 62q3
U$m
LT liab
current liab
source: company filings
SAND has paid down the principal to U$388m as at end 2q24, which is an improvement of
course but there’s still a long way to go and all that
time projected to 2026, it will be paying interest on
the debt (2q24 was $6.65m). This long-term chart
of SAND versus the GDX shows how the two lines
ran in general lockstep until 3q22, at which point
SAND started lagging. We expect that to continue
for as long as the welter debt burden weighs down
this corporate structure. We’ve spend the last two
years saying that it’s better to look elsewhere for
your royalty/streamer trade on the precious metals
market, we’ve been right all that time, we continue
to call the same until 2026 minimum.
Amerigo Resources (ARG.to) 2q24 financials
Right on schedule, Amerigo Resources (ARG.to) filed its 2q24 financials last week and all went
almost as expected:

 Your author was long into the earnings
 We expected a good quarter
 We got a good quarter
 The price went up
All was well and the price pop as seen on this five-
day chart was fully deserved, but the negativity
that took over the broad market dragged ARG
down and come the close of a painful Friday, ARG
only managed to add a penny on the week.
We previewed the financials in IKN791 three weeks ago in the main fundies note “Amerigo
Resources (ARG.to): Q2 production and a bonus dividend”, a quick look at a couple of the
updated charts from that day, then we’ll move to the financials and of the charts that urgently
need an update, this one stands out:
ARG: Gross Cu value, Cu revs and Revs total, per qtr
25
797.37 904.97 567.35 766.36 818.55
485.33
457.65 879.74
858.03
241.16 729.56 548.94 897.66 2.07 846.25 908.25 882.94
630.23
855.14
2.14
3.03 5.95 591.16
4.24
582.16 787.26
129.44
379.26 448.96
206.15
90
80
70
60
50
40 30
20
10
0
22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
U$m
Cu gross value
Cu revs
Revs total
source: company filings
Our estimates in IKN791 were based on the preliminary production and limit sales data
presented by the company that week. With the advent of the real data, we now know that top
line revenues at U$51.602m were nearly U$4m higher
than our guesses. That good result was mostly about
ARG: Mo credits
slightly higher sales at a slightly better average
received price, a slightly better adjustment number
from previous quarters, slightly lower input costs
(offset by higher DET royalties) but most of all, a
moly by-product credit that beat our estimate by a
cool $1.9m (right). That’s good and we deliberately
aimed low on the moly credit as it’s difficult to know
exactly when ARG books those sales.
Long story short, our guesstimate top line revenues
number of U$47.85m was blown out the water by the
U$51.602m reality. Costs came in competitively, including a main COGS number of U$35.109m
that managed to drop by 230k or so YoY, that’s a good effort and indicative of a company that
has a lid on its cost inputs.
605.3 267.4
116.5
822.4 683.3 142.2 294.3
149.5
930.8
958.2 85.4 478.3
454.5 993.6
9
8
7
6
5
4
3 2
1
0
12q1 12q2 12q3 12q4 22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
U$m
source: company filings, IKN ests
ARG.to: Costs breakdown
933.23 869.13 414.43 800.14 71.93 143.53 353.23 544.63 611.73 901.53
60
55
50
45
40
35 30
25 20
15
10 5
0
22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
U$m ARG: Main costs per Lb Cu
other
G&A+roy
COGS
source: company data, IKN ests
09.1
73.1
10.2
32.1
39.1
88.0
01.2
39.0
19.1
21.1
73.2
20.1
44.2
79.0
60.2
89.0
69.1
50.1
69.1
92.1
4.00
3.50 0.39 0.39 0.42 0.41 0.42
0.36 0.40 0.40 0.39 3.00 0.37
2.50 2.00
1.50
1.00
0.50
0.00
22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
U$/lb smelt/refine/lb
cash cost/lb
DET royalty/lb
source: ARG data, IKN calcs

ARG: Estimated margin/Lb Cu
There are all sorts of ways to cut and slice the
costs number, one that works well is to step back
to the gross revenues stage and consider the
three main cost inputs at ARG, namely COGS, the
DET royalty and the smelting/refining costs on a per Lb basis. Tot them up and 2q24 came in at
U$3.67/lb, which compares favourably to the
average received price in the quarter of
U$4.39/lb. That margin of 72c is from where ARG
generates all its profits and when it runs
smoothly as it did this quarter (bar that small
interruption for heavy rains at the end of the quarter), it turns into a cash cow as copper prices
increase.
The result is a gross profit number of U$16.493m (below left), and an operating profit of
U$15.70m (along with a net of U$9.676m, but the way forward is to benchmark its operating
profits).
The result is an ARG that announces “We’re back!” After several quarters of lower than
expected profits, first due to the dump in
copper prices in 2022 and then the storm-
induced production glitches of mid-2023, ARG
has returned to efficient production rhythm at
the right time, i.e. with copper back over
U$4.00/lb and the result is solid margins.
Isolating the operating profit data from 2020
to date shows what the company is capable of
doing once it starts running smoothly,
stringing together a series of U$10m+
quarters with ease.
It goes without saying that the recent drop
back toward the U$4.00/lb line may crimp
operating margins in future quarters, but the
latest U%15.7m result is a good baseline from
which to start the important point is its costs
regime and with better production forecast for
Q3 and Q4, ARG looks like staying in its sweet
spot. Before balance sheet items, the last
comparative quarterly chart on operations is
out “real world margin” chart that backs out
DD&A at ARG (we argue that in this special
case, the “non renewable resource” at ARG is
26
56.3 46.4 99.0 36.3 01.4
74.0
81.3 05.3
23.0
93.3 08.3
14.0
34.3 20.4
95.0
18.3 08.3
10.0-
28.3 67.3
60.0-
44.3 28.3
83.0
04.3 79.3
75.0
76.3 93.4
27.0
5.00
4.50
4.00
3.50
3.00
2.50 2.00
1.50 1.00
0.50
0.00
-0.50 22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
U$/lb Cu main cost subtotal
Avg Cu price
difference
source: ARG data, IKN calcs
ARG.to: Quarterly Earnings overview
624.12
616.1 655.3-
738.8
874.31
503.3- 420.2-
200.6 508.7
394.61
60
55
50
45
40
35
30
25 20
15 10
5
0
-5
22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
U$m ARG.to: Gross, operating and net profits, per qtr
revenues
COGS
Gross profit
source: company filings
10.12
74.1- 41.5- 10.1-
44.31
72.3- 3.6- 9.3
84.6
07.51
25
20
15
10
5
0
-5
-10
22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
U$m
Gross profit
op profit
Net Income
source: ARG data
ARG.to: operating profit
9.4-
3.3-
1.8
4.31 0.61
1.81
6.21
5.71 0.12
5.1-
1.5-
0.1-
4.31
3.3-
3.6-
9.3
5.6
7.51
25
20
15
10
5
0
-5
-10
02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
$m
source: company filings
ARG: The real world margin
61.0- 30.1
33.21
97.71
24.02
93.22 79.61 15.22
49.52
95.3
20.0-
57.51
4.81
8.1 80.1-
41.9
52.21
25.12
28
24
20
16
12
8
4
0
-4
02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
U$m
source: ARG data, IKN calcs and ests

as close to unlimited as exists in the mining world, as such we can eschew the accountancy and
watch the cash flow). “q24 was the best quarter since the end 2021/start 2022 period and the
third best ever.
As for the balance sheet, we can check out the overview charts but in this case, they don’t
really tell us much aside from “things are solid and normal”.
It’s better to get into the weeds a little and the financial moving parts that matter, starting with
cash debt at ARG which is down to virtually nothing:
ARG: Debt profile
23.825.7
9.410.19.49.914.217.114.910.79.27.07.37.07.57.07.67.07.510.38.58.0
27
9.44
9.13
7.54 8.54 2.14 2.14 0.93 7.63 1.23
8.62 8.62
4.32 5.32 0.02 1.02 6.61 7.61 7.21 8.21 4.01 5.01
4.6
70
60
50
40
30
20
10
0
91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
ARG.to: Total Assets
350
300
250
200
150
100
50
0
U$m
long-term borrowings
current borrowings
source: company data
In four more small and scheduled payments over the next two years that disappears and please
note, that balance sheet strengthening continued to happen through the lean 2022 quarters
and the storm-affected 2023 period, it’s what happens behind the scenes when a good
company run by class professionals has a clear plan and sticks to it.
As for the more dynamic parts of the balance sheet, we already knew ARG had over U$28m at
treasury end 2q24 because it told us in July, the exact number being U$28.736m. That covers
the bonus dividend and standard dividend payments going out this quarter, they total a
maximum of U$8.5m or so (and should come in slightly lower, what with short interest on
shares). The only surprise for me in the Q2 numbers was the fact that working capital had
stayed in the negative. Not by much and it’s only a temporary thing, also with hindsight I
missed the detail of accumulated tax liabilities that always rise at this time of year, that threw
my model out by around $5m. A small mistake on my part, rather than anything bad at ARG.
91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
source: company filings
srallod
fo
snoillim
ARG.to: Liabilities Breakdown per qtr
200
cash&eq Trade/Rec
Inventory other current 180
fixed 160
140
120
100
80
60
40
20
0
91q1 91q2 91q3 91q4 02q1 02q2 02q3 02q4 12q1 12q2 12q3 12q4 22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
source: company filings
srallod
fo
snoillim
LT liab
current liab
ARG.to: Cash and ST
590.17
20.35
318.14 128.73 329.34
576.13
131.31 842.61 108.31
637.82
80
70
60
50
40
30
20
10
0
22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
$m ARG.to: Working capital
source: company filings
494.43 209.01
58.6 79.9
806.21
998.4- 27.21- 503.21- 781.4- 474.1-
40
35
30
25 20
15
10
5
0
-5
-10
-15
22q1 22q2 22q3 22q4 32q1 32q2 32q3 32q4 42q1 42q2
U$m
source company filings

The bottom line: With earnings slightly above expected thanks mainly to bonus cash from the
moly by-product and costs kept nicely under control, ARG had a great quarter and exactly what
was needed form the company. All eyes will no be on the copper price, but in truth ARG makes
enough money at U$4.00/lb and above to fund its operations, dividend and re-start the share
buybacks in the months to come, anything above that goes toward the next bonus dividend.
With production set to return to its normal rhythm we can expect 16m lbs quarters in Q3 and
Q4 not just 14m lbs, that will help boost cash flow. As for a price target in the near term, that
all depends on the copper price because it’s this very level that’s mopst sensitive to fluctuation
so rather than set a formal target, I propose ARG as a leveraged plan on copper from her to
U$4.50/lb as if it returns from whence it came, expect the stock to return to the C$1.80/C$2.00
range again. The downside risk doesn’t really start under U$3.80/lb is broken to the downside,
which affords reasonable protection in this current market. But either way, sitting back and
harvesting the 3c/qtr dividends is probably the best way forward when trading this stock. Sit
back and let Aurora do the world for you.
Conclusion
IKN794 is done, we end with bullet points:
 I think that’s my last published comment on Venezuela for the time being, as it’s not
really that related to mining. You can always drop a line iof you have any questions.
 Patagonia Gold (PGDC.v) has been hanging around South American longer than I have
and for years has had that “broken stock” look about it. That might be about to change,
so let’s put it on the watch list and see what happens for the next couple of months ,
FTZ.v too.
 Reports of Dr. Copper’s death have been greatly exaggerated.
 The disappointment of watching the ex-Argonaut Gold (AR.to) board once again snatch
defeat from the jaws of victory around FCGV.v is a painful one, more for the ego than
the back pocket but it still comes keen. Crony capitalism at its worst.
 Avoid Colombia. Seriously.
I thank you in advance for any feedback. Our Top Pick stock is Minera Alamos (MAI.v). Flash
updates will be sent if required by events.
I wish you good trading fortune, ladies and gentlemen. Best wishes, Mark.
Footnotes, appendices, references, disclaimer
(1) https://www.calculatedriskblog.com/2024/08/comments-on-july-employment-report.html
(2) https://x.com/CorpusCol/status/1819366313069842887?t=cRpJsS-tUniaQcCu06r8Tg&s=03
(3) https://x.com/richard_yellow/status/1819482407676137916?t=J2ma4dX64gIwPPZMi2sx8g&s=03
(4) https://www.bhp.com/news/media-centre/releases/2024/07/bhp-and-lundin-mining
(5) https://mineriaydesarrollo.com/2024/07/30/luis-lucero-esto-es-una-gran-noticia-para-la-industria-minera-argentina/
(6) https://www.memo.com.ar/poder/mendoza-un-estado-que-perdio-el-adn-minero-de-la-mano-de-la-7-722/
(7) https://www.laizquierdadiario.com/Reforma-del-Codigo-de-Mineria-el-Gobierno-de-Mendoza-renueva-su-ofensiva-
extractivista
28

(8) https://fitzroyminerals.com/
(9) https://patagoniagold.com/company/board-of-directors/
(10) https://patagoniagold.com/investors/news-releases/
(11) https://www.lmneuquen.com/neuquen/alberto-weretilneck-la-adhesion-al-rigi-termina-inclinar-la-balanza-la-planta-
gnl-n1133195
(12) https://mase.lmneuquen.com/mineria/calcatreu-una-mineria-el-foco-usar-menos-agua-n1133543
(13) https://lu17.com/contenido/61332/calcatreu-una-nueva-oportunidad-para-la-region-sur
(14) https://www.resumenlatinoamericano.org/2024/07/30/nacion-mapuche-195/
(15) https://www.prnewswire.com/news-releases/integra-resources-announces-transformational-merger-with-florida-
canyon-gold-creating-a-leading-growth-focused-gold-and-silver-producer-in-the-great-basin-302208498.html
(16) https://www.silvercrestmetals.com/news/2024/index.php?content_id=543
(17) https://www.hellenicshippingnews.com/copper-firms-on-potential-u-s-rate-cuts/
(18) https://www.juniorminingnetwork.com/junior-miner-news/press-releases/2952-tsx-venture/big/164960-hercules-
metals-provides-exploration-update.html
(19) https://www.solarisresources.com/news/press-releases/solaris-completes-socialization-of-initial-district-exploration-
programs
(20) https://awaleresources.ca/2024/07/31/awale-hits-20-g-t-gold-over-29m-at-the-charger-prospect-odienne-project/
(21) https://magsilver.com/2024/mag-silver-reports-second-quarter-financial-results-2/
Stocks To Follow Closed Positions 2023
CLOSED TRADES IN 2023 date closed close price
Altiplano Metals APN.v jan'23 C$0.31 17-Set-21 C$0.17 -45.2% delayed and will dilute soon
Western Copper WRN.to mar'23 C$2.02 13-Nov-22 C$2.32 14.9% sold on reduced M&A prob.
Chesapeake Gold CKG.v may'23 C$3.07 20-Feb-22 C$1.75 -43.0% Closing on legal action news
Amerigo Res ARG.to may'23 C$1.36 12-Dic-21 C$1.48 8.8% sold 20% to raise cash
Amerigo Res ARG.to oct'23 C$1.36 12-Dic-21 C$1.21 -11.0% sold 10% raise to cash
QC Copper&Gold QCCU.v oct'23 C$0.265 25-Abr-21 C$0.12 -54.7% sold raise to cash
Faraday Copper FDY.to oct'23 C$0.79 26-Mar-23 C$0.68 -11.4% sold raise to cash
AbraSilver Res. ABRA.v oct'23 C$0.36 4-Dic-22 C$0.28 -22.2% sold raise to cash
Orecap inv OCI.v oct'23 C$0.04 20-Nov-22 C$0.03 -25.0% sold raise to cash
Western Explor. WEX.v nov'23 C$1.87 9-Abr-23 C$0.60 -67.9% poor trade, cutting loss
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
29

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
30

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
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Stocks To Follow Closed Positions 2016
Closed in 2016 closed close price
Phoscan Chem FOS.to jan16 C$0.28 29-mar-15 C$0.265 -5.4% Buyout trade, bot but poor deal
True Gold TGM.v jan16 C$0.18 23-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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