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The Metal Augmentor © 2008
The Metal Augmentor’s
MINING EQUITIES REPORT: ISSUE I

CASH IS KING?
September 14, 2008

Introduction

A major objective of many investors active in the natural resources sector is to diversify away from the
fiat-based world of finance and credit-dominated sectors such as banking, insurance, and retail. These
investors want exposure to hard assets, not soft ones. Today, they desperately hope that commodity
prices will soon recover given the large losses just about every natural resource portfolio has incurred
over the past few months, the last two in particular.
The fall in commodity prices has created an environment that has made it very challenging for natural
resource companies—mining equities in particular—to obtain financing for exploration and project
development. It seems cash, not metal in the ground, is king. How ironic that the one asset natural
resource investors are trying to diversify away from—the U.S. dollar and its troubled competitors—is the
very asset that mining equities need the most right now. It turns out that drilling contractors, engineers,
geologists and miners all still prefer to be paid in paper money.
Due to the simultaneous reduction in market liquidity and commodity prices, metal exploration and
mining companies that need to raise funds to finance their activities are facing the prospect of
substantial share dilution or the possibility of losing their property interests if they cannot meet
contractual spending commitments. We believe there has to be a very compelling reason to own cashstrapped companies in this market.
Conversely, companies that are not in need of financing have an important margin of safety in the
current environment. Should metal and commodity prices stay weak for a long period of time—
something that is not impossible during a bull market as the historical example of the mid-1970s
demonstrates— such a margin of safety could turn into a major advantage.

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The Metal Augmentor © 2008

Indeed, if the markets were efficient and logical, we should expect that mining equities with lots of cash
and other liquid assets would trade at significant premiums to their cash-strapped peers. But that
doesn’t appear to be the case at the moment.
In early August of this year, things didn’t look quite as bad, but nevertheless we had already started to
notice that the market capitalizations of several mining equities were approaching their cash positions.
This situation piqued our curiosity so we placed these companies on our radar. To our surprise, their
prices continued to fall so that now in many case they are trading at a steep discount to their breakup
value (the estimated amount of cash that could be distributed to shareholders if all assets and liabilities
are liquidated and the company is broken up). Compellingly, many of these companies have attractive
property holdings—some joint ventured with majors—that are currently being assigned a zero value by
the market.
Thus was born the idea for our inaugural Mining Equities Report, the title of which—“Cash is King?”—
reflects the strange contradiction that the one asset in greatest need, cash, seems to actually be more of
a burden than an asset to some mining equities. While this situation is perplexing, we feel that it is only
a matter of time before the most astute natural resource investors begin to realize that the market’s
present foolishness obscures a rare opportunity. With blood running in the streets, now seems like the
best time to beat the smart crowd to that realization.
The dollar signs wouldn’t stop dancing in our minds, so we were left with no choice but to examine
several hundred mining equities, both explorers and producers, to plot their cash and liquidity positions
against their capital requirements. We discarded companies that still have substantial value attributed
to their projects because those values could evaporate should fear continue to run rampant in the
hearts of investors. Though some of you may protest that we have erred in casting aside some
extremely undervalued companies, we suspect that the value of fiat money could fare better than the
value of metal in the ground for a while yet. That bold assessment still left us with more than 30
companies that deserve closer examination. We detail these companies in our inaugural report.
We would like to point out that our report is not a comprehensive list of mining equities with breakup
value exceeding market cap because such a calculation is very difficult to make given the large daily
fluctuations in the prices of mining equities recently. Rather, our report should be viewed as a crosssection of interesting opportunities to explore further. We believe it contains something for every
natural resource investor.
Some of the mining equities in our report possess a cushy cash position that is not contractually
committed to be spent in the near term. Others have virtually no cash requirements because a separate
company (for example, through a joint venture) is paying for all exploration expenditures and
sometimes even covering administrative expenses. Many of these companies have projects of

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significant merit and other assets unaccounted for in our calculations because they have been given zero
value by the market. After all, who are we to argue with the market?
Ultimately, our report does not answer the underlying question: Cash is King? Only time will do that.
But we believe there is a reasonable basis to conclude that some of companies in our report are
positioned to benefit, relative to other mining equities, regardless of where the market heads next: up,
down, or sideways.

About The Metal Augmentor
The Metal Augmentor is a new service being launched in the next few weeks at
www.metalaugmentor.com. The main purpose of The Metal Augmentor is to aid both new and
experienced investors in navigating the fascinating, dangerous, and rewarding world of investing in
physical metals and mining equities. Our focus will be on gold and silver, but we will also provide indepth coverage of the other major metals.
Portions of the service will be devoted to investors who buy gold and/or silver in its various forms (ETF,
bullion, allocated account, etc.) for price appreciation. Other portions will appeal to people who buy
bullion to hold in their own possession for the purpose of preserving their wealth or buying power
against fiscal irresponsibility by fiat-wielding governments.
A key feature of The Metal Augmentor will be the detailed coverage of mining equities from junior
explorers to major mining companies. Our unique approach will avoid making outright buy and sell
recommendations (except in special reports that focus on individual situations) but instead provide
relevant and timely information and insights so that each investor can confidently make his or her own
investment decision.
Perhaps the most valuable feature of The Metal Augmentor will be exclusive coverage of the basis in
gold and silver as taught by Professor Antal E. Fekete.

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Questions on How to Use this Report
What is Breakup Value (BV)?

We compute a company’s breakup value by adding together all cash plus assets that can be liquidated
and converted to cash in a reasonable period of time and then subtracting the company’s debt and
other liabilities. Breakup value does not include off-balance sheet commitments and liabilities that may
require cash expenditures to eliminate.
What is Market Capitalization (MC)?
A company’s market capitalization is computed by multiplying its number of shares outstanding by its
current market price.
What does MC-BV tell us?
The MC-BV calculation shows how much value the market is assigning to the company’s non-cash and
non-marketable assets including exploration and mining properties. In many cases, this number is
negative in our report, which means the company’s cash and other marketable assets less its debt
exceeds its current market capitalization. In other words, if the company shut its doors and liquidated,
shareholders may receive a per share cash distribution greater than the current share price.
Why use MC instead of Fully Diluted MC for the BV computation?
Because generally the average exercise prices of all warrants and options (which are included in the fully
diluted MC) are significantly above the current share price. Therefore, if the fully diluted MC were used,
it would be necessary to add the cash to be received upon exercise of all warrants and options, which is
often several multiples of the current market cap.
Why use separate columns for unrestricted assets vs. restricted assets?
The use of separate columns is to identify relatively liquid (unrestricted) vs. relatively illiquid (restricted)
assets. For example, if a company’s MC-BV is negative but the majority of the assets included in BV
come from the restricted category, which would be less desirable than a similarly-valued company
where the majority of assets are unrestricted (all else being equal).

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Why not compare MC to working capital instead of performing the BV computation?

Working capital doesn’t include many assets that could be marketable in a liquidation scenario, nor does
it include noncurrent debt. As a result, it is a better measure of short-term liquidity as compared to
ultimate liquidity.
What is the attached Excel file to be used for?
The attached Excel file is an extremely valuable part of this report. This is where all of our numbers
within the tables of each company are derived. Importantly, our Excel file is enabled such that the
market price of each company can be updated (this requires downloading a free add-in program – see
instructions tab within Excel file). In turn, this updates all dependent cells and allows us to compute
measures such as MC-BV in nearly real time (with a 15 minute quote delay). Without this functionality,
the report would not remain as relevant after the publication date. Using the Excel file, users can get
updated figures throughout the trading day and are able to make more informed investment decisions.
How to open the Excel 2007 file?
If you own an earlier version of Microsoft Office (i.e. prior to 2007), you will need to download the
following Microsoft Office 2007 compatibility pack in order to open the attached Excel file: Compatibility
Pack Download
Why is there a warning message when I open the attached Excel file?
Some systems may display a warning message about a potential virus, macro, or other program that
could potentially harm your computer, but this is due to the MSN Money Stock Quotes add-in. Both the
Excel and PDF files have been scanned using Bit Defender and no threats were detected.
How do I close the attachments window in order to view the PDF in full page format?
Once you have downloaded the attached Excel file, or if you have decided not to do so at this time, you
can close the attachments window by clicking on the paper clip icon on the lower left hand corner of the
page. Doing so will allow you to view the report in a full page format.

5 The Metal Augmentor

The Metal Augmentor © 2008

Augment Partners, Inc. © 2008

All Rights Reserved
Unauthorized Distribution will be Prosecuted to the Full Extent of the Law

Disclaimer: We are not licensed investment advisors and this is not a recommendation to buy or
sell any company. The information and data herein is being presented as a service to help investors
conduct further research. We believe the data comes from reliable sources but it may not be
current and material changes in a company’s financial position could have taken place since the asof date. Before making an investment decision, you or your licensed investment advisor should
verify all information that you are relying upon. We are not responsible for the results of any
investment made on the basis of the data presented herein, nor are we responsible for any errors
or omissions (though we strive for accuracy and completeness). We disclose our own investment
position or relationship in all companies.

6 The Metal Augmentor

Contents

The Metal Augmentor © 2008

Page

Introduction __________________________________________________________________________________ 1
Questions on How to Use this Report ______________________________________________________________ 4
Cash Value Companies __________________________________________________________________________ 8
Altius Minerals Corporation (TSX: ALS) ......................................................................................................................8
Committee Bay Resources Ltd. (TSX-V: CBR) ...........................................................................................................10
Dynamite Resources Ltd. (TSX-V: DNR) ...................................................................................................................12
Endeavour Financial Corporation (TSX: EDV) ..........................................................................................................14
Golden Arrow Resources Corporation (TSX-V: GRG) ................................................................................................16
IMA Exploration Inc. (TSX-V: IMR; AMEX: IMR) .......................................................................................................18
Mega Silver Inc. (TSX-V: MSR) .................................................................................................................................19
Minco Gold Corporation (TSX: MMM; AMEX: MGH) ...............................................................................................20
Mundoro Capital Inc. (TSX: MUN) ...........................................................................................................................21
Nautilus Minerals Inc. (TSX: NUS) ............................................................................................................................22
Orvana Minerals Corp. (TSX: ORV) ..........................................................................................................................24
Pacific North West Capital Corp. (TSX: PFN) ............................................................................................................25
Pinetree Capital Ltd. (TSX: PNP) ..............................................................................................................................27
Southwestern Resources Corp. (TSX: SWG) .............................................................................................................29
Sprott Molybdenum Participation Corp. (TSX: MLY)................................................................................................30
Staccato Gold Resources Ltd. (TSX-V: CAT) ..............................................................................................................31
Strategic Metals Ltd. (TSX-V: SMD) .........................................................................................................................32
Talon Metals Corp. (TSX: TLO) .................................................................................................................................34
Tiomin Resources Inc. (TSX: TIO) .............................................................................................................................35
Tri Origin Exploration Ltd. (TSX-V: TOE)...................................................................................................................36
U.S. Energy Corp. (NASDAQ: USEG) .........................................................................................................................37
U3O8 Corp. (TSX-V: UWE)........................................................................................................................................39
Volta Resources Inc. (TSX: VTR) ...............................................................................................................................40
Wallbridge Mining Company Ltd. (TSX: WM) ..........................................................................................................41
Western Uranium Corporation (TSX-V: WUC) .........................................................................................................42
Appendix A: Other Companies to Consider ________________________________________________________ 43
Appendix B: Technical Analysis Charts ____________________________________________________________ 46

7 The Metal Augmentor

Cash Value Companies

The Metal Augmentor © 2008

Altius Minerals Corporation (TSX: ALS)

Price:

C$5.25

Click Here for Technical Analysis Chart

Shares Outstanding (O/S):

30.9M

Shares Fully Diluted (F/D):

32.0M

Market Cap. (MC):

C$162.4M

Fully Diluted MC:

C$167.8M

Options:

1.0M

Avg. Opt. Exercise Price:

C$10.34

Warrants:

0

Avg. War. Exercise Price:

n/a

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$167.4M

ABCP/etc:

C$0

Marketable Investments:

C$20.0M

Cash Cost of Property:

C$12.3M

Other Liquid Assets:

C$0

Other:

C$34.3M

Debt:

C$38.5M

Quarterly Burn Rate:

C$(1.0)M

Breakup Value (BV):

C$195.5M

Last Financial Filing:

July 31, 2008

MC – BV:

C$(33.1)M

www.altiusminerals.com

Altius is a natural resource project generation and royalty business. Currently, it is involved in joint
ventures on 11 different projects and is seeking partners on several others.
The company’s “Marketable Investments” reflected in the table above include a portfolio of undisclosed
resource companies with a fair market value of C$11.1M at July 31, 2008. These investments may need
to be discounted up to 50% given the current market environment. The “Marketable Investments” also
include several companies for which share amounts and prices are current as of the date of this report.
Most significantly, Altius owns a 10% interest in the Labrador Nickel Royalty Limited Partnership, which
owns a 3% net smelter return royalty on the Voisey's Bay nickel project. This royalty is reflected in the
above table in “Cash Cost of Property” at C$12.3 million. Voisey’s Bay began its first full year of
operation in 2006 and is expected to have at least a 25-yr. mine life. Revenue from this royalty interest
totaled C$5.2M for the year ended April 30, 2008.
Altius has C$38.1 million in long-term debt, payable at maturity on December 2011 and bearing interest
at 4.25% per annum. The value of this loan roughly coincides with the value of Altius’ hedge to sell 2.5

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million shares of Aurora Energy Resources Inc. (TSX: AXU) in December 2011 at C$17.72 (current market
price of C$2.41). The hedge is reported in “Other” (C$34.3M).
In December 2007, Altius advanced C$30.1 million in the form of a non-interest bearing convertible loan
to Newfoundland and Labrador Refining Corporation (NLRC). In June 2008 NLRC filed for Bankruptcy
and has been given until October 17, 2008 to attract additional financing or partners. The full amount of
C$30.1M has been written off by Altius and it not reflected in the table above, but should NLRC emerge
from bankruptcy, it is possible that a portion of the loan may be recoverable.
Altius reported net income of $12.1 million or $0.40/share for the year ended April 30, 2008 and is
therefore trading at a trailing P/E ratio of about 13 or so at current market prices. However, it should be
noted that earnings for Altius are fairly erratic given that they are influenced heavily by gains or losses
recorded on the sale of its mining and mineral related investments. For example, in the most recent
quarter ended July 31, 2008, Altius reported only C$0.4M of net income.
Recently insiders of Altius have begun buying shares in the open market, with about 103,000 shares
having been purchased since July 30, 2008 when the buying began. Collectively, insiders now own about
5 million shares, or nearly 17% of the company. Notably, Altius has only slightly over 1 million options
with an average exercise price of C$10.34 and zero warrants.
Additionally, Altius began aggressively repurchasing its shares in the open market under its normal
course issuer bid during August and September 2008—repurchasing 1,134,030 shares at an average
price of $6.49.
We don’t own any shares nor have we ever received compensation in any form from Altius Minerals.

9 The Metal Augmentor

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Committee Bay Resources Ltd. (TSX-V: CBR)

Price:

C$0.13

Click Here for Technical Analysis Chart

Shares Outstanding (O/S):

96.1M

Shares Fully Diluted (F/D):

122.3M

Market Cap. (MC):

C$12.5M

Fully Diluted MC:

C$15.9M

Options:

8.9M

Avg. Opt. Exercise Price:

C$0.66

Warrants:

17.3M

Avg. War. Exercise Price:

C$0.71

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$17.0M

ABCP/etc:

C$0

Marketable Investments:

C$3.8M

Cash Cost of Property:

C$0

Other Liquid Assets:

C$0

Other:

C$3.1M

Debt:

C$0

Quarterly Burn Rate:

C$(1.2)M

Breakup Value (BV):

C$23.9M

Last Financial Filing:

June 30, 2008

MC – BV:

C$(11.4)M

www.committeebay.com

Committee Bay agreed to acquire Niblack Mining Corp (TSX-V: NIB) which requires Committee Bay to
provide funds of up to C$10 million to Niblack by way of a secured convertible debenture. According to
Niblack's press release on September 10, C$5.6 million has been advanced for exploration and
development work on the Niblack project which reduces the above cash position by C$4.5 million (C$1.1
million is already included in “Other” representing the amount loaned as of June 30). It should be
expected that Committee Bay has or will fund the remainder of this program, although it is not an
obligation. “Other” also includes a C$2 million debenture from Focus Minerals (ASX: FML) due April
2009. Committee’s “Marketable Investments” include 140 million shares of Focus Minerals.
The above does not consider that Committee Bay has spent over C$20 million to explore its Committee
Bay Greenstone Belt property in Nunavut where it has defined 468,000 ounces of gold in the indicated
category and another 231,000 ounces in the Inferred category at its Three Bluffs Deposit.
In addition, the above figures do not include Committee Bay’s 100% interest in Underground Drilling and
Services Pty Ltd. a private Australian drilling company with a potential fair market value of C$2 million.
The company reported C$11.3 million of working capital as of August 20, 2008 which is almost equal to
its current market capitalization.

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We don’t own any shares nor have we ever received compensation in any form from Committee Bay
Resources.

11 The Metal Augmentor

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Dynamite Resources Ltd. (TSX-V: DNR)

Price:

C$0.14

Click Here for Technical Analysis Chart

Shares Outstanding (O/S):

113.5M

Shares Fully Diluted (F/D):

225.6M

Market Cap. (MC):

C$15.9M

Fully Diluted MC:

C$31.6M

Options:

8.7M

Avg. Opt. Exercise Price:

C$0.67

Warrants:

103.4M

Avg. War. Exercise Price:

C$0.84

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$26.0M

ABCP/etc:

C$0

Marketable Investments:

C$0.3M

Cash Cost of Property:

C$15.7M

Other Liquid Assets:

C$0

Other:

C$0

Debt:

C$0

Quarterly Burn Rate:

C$(1.6)M

Breakup Value (BV):

C$42.0M

Last Financial Filing:

April 30, 2008

MC – BV:

C$(26.1)M

www.dynamiteresources.com

Dynamite has commitments to spend approximately C$6 million in 2008 at its Mike Lake project in the
Dawson Mining District, Yukon Territory, which is not reflected in the above figures. In addition,
Dynamite has an AUD$6.5 million commitment to fund exploration at the Lake Torrens IOCGU project
located next to BHP’s Olympic Dam Mine, not all of which is due in the near term.
Additionally, the “Cash Cost of Property” reflected in the table above is related to Dynamite’s purchase
of Tau Mining in 2007, which owns two prospective uranium and gold exploration licenses in Kyrgyzstan.
Discounting the Kyrgyzstan uranium properties by 50% or more may be appropriate, which would
reduce the MC-BV calculation to negative $12 million or so (about the same as the committed
exploration expenditures noted above).
Even when the near-term exploration commitments and other company obligations are figured into the
equation, Dynamite will have significant operating cash remaining. Should the share price recover in the
next 12 months, significant proceeds may also be realized from warrant exercises. Alternatively, if the
share price does not recover to $1 or more (a 600% rise from current levels), those warrants may expire
and reduce the fully diluted share count by a very significant amount.
Finally, note that the breakup value assumes the IOCGU and Mike Lake projects are worthless. Given
that Dynamite has planned to drill up to 30,000 meters in 2008, there is the possibility of significant

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assay results that could re-ignite interest in the company. Such prospects are enhanced when we
consider that in 2007 Dynamite drilled a “discovery hole” at Mike Lake grading 0.61% Copper, 1.38 g/t
Gold, 13.6 g/t Silver and 0.044% Tungsten oxide over 89.31 meters near surface.
We don’t own any shares nor have we ever received compensation in any form from Dynamite
Resources.

13 The Metal Augmentor

The Metal Augmentor © 2008

Endeavour Financial Corporation (TSX: EDV)

Price:

$5.47

Click Here for Technical Analysis Chart

Shares Outstanding (O/S):

30.5M

Shares Fully Diluted (F/D):

36.8M

Market Cap. (MC):

$167.1M

Fully Diluted MC:

$201.2M

Options:

2.8M

Avg. Opt. Exercise Price:

$9.73

Warrants:

3.4M

Avg. War. Exercise Price:

$5.50

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

$14.8M

ABCP/etc:

$0

Marketable Investments:

$237.3M

Cash Cost of Property:

$0

Other Liquid Assets:

$0

Other:

$71.1M

Debt:

$0

Quarterly Run Rate:

$2.0M

Breakup Value (BV):

$323.2M

Last Financial Filing:

June 30, 2008

MC – BV:

$(156.1)M

www.endeavourfinancial.com

All amounts are in US Dollars unless otherwise noted.

Endeavour Financial is an investment, financial advisory, and merchant banking firm focused on the
natural resource sector. Its clients include well-known names such as Goldcorp, Northern Orion, Silver
Wheaton, and Hecla Mining.
Endeavour Financial held marketable securities, convertible loans and debentures, and warrants valued
at $308.4 million as of June 30, 2008. “Marketable investments” in the above table includes publicly
traded equity securities and “Other” includes convertible loans and debentures, warrants, and
investments in privately-held companies.
Unfortunately, Endeavour’s financial statements do not disclose the individual securities held, which
means we cannot update the value of these securities. We do know that about 70% of Endeavour’s
portfolio is allotted to gold, oil & gas, and copper investments. Given the current market conditions for
these commodities and especially their underlying stocks, it may be reasonable to discount these
marketable investments, convertible loans and debentures, and warrants by 50 percent.

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The company currently generates positive cash-flow from its merchant banking and advisory business,
excluding gains and losses from its investment portfolio. Endeavour also pays out a small dividend, with
a current annualized rate of C$0.18.
We don’t own any shares nor have we ever received compensation in any form from Endeavour
Financial.

15 The Metal Augmentor

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Golden Arrow Resources Corporation (TSX-V: GRG)

Price:

C$0.28

Click Here for Technical Analysis Chart

Shares Outstanding (O/S):

15.5M

Shares Fully Diluted (F/D):

21.0M

Market Cap. (MC):

C$4.3M

Fully Diluted MC:

C$5.8M

Options:

1.5M

Avg. Opt. Exercise Price:

C$0.85

Warrants:

4.0M

Avg. War. Exercise Price:

C$1.27

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$3.0M

ABCP/etc:

C$0.2M

Marketable Investments:

C$0.1M

Cash Cost of Property:

C$0

Other Liquid Assets:

C$0

Other:

C$0

Debt:

C$0

Quarterly Burn Rate:

C$(0.3)M

Breakup Value (BV):

C$3.2M

Last Financial Filing:

June 30, 2008

MC – BV:

C$1.0M

www.goldenarrowresources.com

Golden Arrow is required to fund exploration and option payments of approximately US$5.5 million
related to its Poncha gold-copper project in San Juan Province, Argentina including US$1.4 million over
the next 12 months.
A Phase II drill program at Poncha produced 266m @ 1.21 g/t gold and 3.30 g/t silver as announced
March 27, 2008.
Golden Arrow holds 2.3M shares of Amera Resources Corporation (TSX-V: AMS), as well as a small
amount of asset back commercial paper with an estimated fair value of C$0.2 million.
Most significantly, Golden Arrow owns a 1% NSR on Yamana Gold’s Gualcamayo Project, with annual
production expected to be 200,000 oz. starting at the end of 2008. The mine has Measured and
Indicated resources of over 2 million ounces of gold and currently has an estimated 10 year mine life.
Cash flow from the royalty is expected to begin in early 2009, when the royalty is estimated to bring in
about $1.0 million in after-tax cash flow— assuming $800/oz gold and an annual production rate of
200,000 ounces.

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Yamana claims the mine has the potential to produce 300,000 ounces per year and perhaps even more
if underground mining operations are initiated. Thus, Golden Arrow can be viewed purely as a royalty
company with the potential to yield a roughly 20% return per annum on the current share price.
We don’t own any shares nor have we ever received compensation in any form from Golden Arrow
Resources.

17 The Metal Augmentor

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IMA Exploration Inc. (TSX-V: IMR; AMEX: IMR)

Price:

C$0.38

Click Here for Technical Analysis Chart

Shares Outstanding (O/S):

52.1M

Shares Fully Diluted (F/D):

57.7M

Market Cap. (MC):

C$19.8M

Fully Diluted MC:

C$21.9M

Options:

3.9M

Avg. Opt. Exercise Price:

C$2.86

Warrants:

1.7M

Avg. War. Exercise Price:

C$3.45

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$24.8M

ABCP/etc:

C$0

Marketable Investments:

C$0.5M

Cash Cost of Property:

C$0

Other Liquid Assets:

C$0

Other:

C$0

Debt:

C$0

Quarterly Burn Rate:

C$(0.5)M

Breakup Value (BV):

C$25.3M

Last Financial Filing:

June 30, 2008

MC – BV:

C$(5.5)M

www.imaexploration.com

IMA has obligations to spend C$15 million over the next 3 years on its Island Gold Project in order to
earn an initial 49% interest from Western Copper Corporation (TSX: WRN). This is currently IMA’s only
project, and it can earn up to a 70% interest.
The Island Gold Project includes the Hushamu deposit, which hosts a NI 43-101 compliant Measured and
Indicated resource of 2.3 million ounces of gold and 1.4 billion pounds of copper, as well as an Inferred
resource of 326 million pounds of copper and 0.6 million ounces of gold. The deposit also includes
molybdenum (0.013%) although this is not part of the defined NI 43-101 resource.
IMA expects to begin a drill program on the Island Gold Project sometime in September or October of
2008. The project is estimated to require 52,000m of diamond drilling, with at least 5,000m planned for
this initial drill program.
IMA previously owned the Navidad Project, which hosted a very large silver-base metal deposit.
However, Aquiline Resources Inc. (TSX: AQI) has since taken ownership of the project following the
Supreme Court of British Columbia ruling against IMA regarding an alleged breach of a confidentiality
agreement in 2002 between IMA and Newmont Mining.
We don’t own any shares nor have we ever received compensation in any form from IMA Exploration.

18 The Metal Augmentor

The Metal Augmentor © 2008

Mega Silver Inc. (TSX-V: MSR)

Price:

C$0.30

Shares Outstanding (O/S):

26.8M

Shares Fully Diluted (F/D):

37.8M

Market Cap. (MC):

C$8.1M

Fully Diluted MC:

C$11.3M

Options:

1.8M

Avg. Opt. Exercise Price:

C$1.61

Warrants:

9.2M

Avg. War. Exercise Price:

C$1.47

Click Here for Technical Analysis Chart

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$14.7M

ABCP/etc:

C$0

Marketable Investments:

C$0

Cash Cost of Property:

C$0

Other Liquid Assets:

C$0

Other:

C$0

Debt:

C$0

Quarterly Burn Rate:

C$(1.1)M

Breakup Value (BV):

C$14.7M

Last Financial Filing:

June 30, 2008

MC – BV:

C$(6.6)M

www.megasilver.ca

Mega Silver holds an interest in two silver and gold projects in Mexico, both of which are under option
from Silverstone Resource Corp. (TSX-V: SST). The option agreement requires Mega Silver to spend
C$10 million on both properties over 5 years. The company is currently conducting a 5,000m exploration
program on these properties.
Meanwhile, the company is carrying out a 1,500m drill program on its optioned Virginia Silver property
located in British Columbia. The option agreement on Virginia requires that Mega Silver incur C$3.0
million in expenditures by August 2009.
Finally, on Mega Silver’s Strategic Properties located in the Yukon Territory, the company must expend
C$3.0 million by September 2009.
We don’t own any shares nor have we ever received compensation in any form from Mega Silver.

19 The Metal Augmentor

The Metal Augmentor © 2008

Minco Gold Corporation (TSX: MMM; AMEX: MGH)

Price:

C$0.57

Click Here for Technical Analysis Chart

Shares Outstanding (O/S):

42.9M

Shares Fully Diluted (F/D):

47.4M

Market Cap. (MC):

C$24.5M

Fully Diluted MC:

C$27.0M

Options:

4.4M

Avg. Opt. Exercise Price:

C$1.15

Warrants:

0

Avg. War. Exercise Price:

n/a

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$7.3M

ABCP/etc:

C$0

Marketable Investments:

C$18.9M

Cash Cost of Property:

C$0

Other Liquid Assets:

C$0

Other:

C$3.7M

Debt:

C$4.3M

Quarterly Burn Rate:

C$(1.7)M

Breakup Value (BV):

C$25.5M

Last Financial Filing:

June 30, 2008

MC – BV:

C$(1.0)M

www.mincogold.com

Minco Gold has conditional commitments to pay approximately C$10 million for exploration and
property payments related to its projects, with C$4 million falling due within one year. Most of this is
related to the Changkeng gold project, where Minco Gold can earn 51%. The Changkeng (also known as
Mingzhong) gold project sits directly atop Minco Silver’s developing Fuwan Silver deposit. The proximity
of Changkeng to the Fuwan Silver project makes its exploitation more likely despite its relatively small
resource (700,000 oz. Measured and Indicated at approximately 5 grams per tonne) at the present time.
Minco Gold holds 13 million shares of Minco Silver Corporation (TSX: MSV). In addition, Minco Gold has
net receivables of approximately C$2.0 million due from Minco Silver.
Minco Gold also holds exploration licenses on a number of prospective properties in China which are not
being given any value by the market.
We own shares in Minco Gold and Minco Silver but have received no compensation in any form from
either company.

20 The Metal Augmentor

The Metal Augmentor © 2008

Mundoro Capital Inc. (TSX: MUN)

Price:

$0.33

Shares Outstanding (O/S):

38.6M

Shares Fully Diluted (F/D):

44.4M

Market Cap. (MC):

$12.8M

Fully Diluted MC:

$14.7M

Options:

5.7M

Avg. Opt. Exercise Price:

$1.55

Warrants:

0

Avg. War. Exercise Price:

n/a

Click Here for Technical Analysis Chart

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

$16.9M

ABCP/etc:

$0

Marketable Investments:

$0

Cash Cost of Property:

$0

Other Liquid Assets:

$0

Other:

$0

Debt:

$0

Quarterly Burn Rate:

$(0.5)M

Breakup Value (BV):

$16.9M

Last Financial Filing:

March 31, 2008

MC – BV:

$(4.1)M

www.mundoro.com

All amounts are in US Dollars unless otherwise noted.

Mundoro owns 79% of the Maoling gold deposit located in Liaoning Province, China. The deposit has
Probable Reserves of 2.8 million ounces of gold as well as 4.8 million ounces in Measured and Indicated
Resources and 4.4 million ounces in Inferred Resources. There has been a long delay in the renewal of
the license related to this project. If and when the license is renewed, Mundoro is expected to have
substantial expenditures to complete a full Feasibility Study and other requirements leading up to a
production decision. The project is being assigned zero value by the market.
As announced in May 2008, Mundoro may purchase for cancellation up to a maximum of 1.9 million of
its Common Shares, or approximately 5% of the Common Shares outstanding as of the date of the
announcement.
We don’t own any shares nor have we ever received compensation in any form from Mundoro Capital.

21 The Metal Augmentor

The Metal Augmentor © 2008

Nautilus Minerals Inc. (TSX: NUS)

Price:

$1.46

Shares Outstanding (O/S):

146.6M

Shares Fully Diluted (F/D):

175.3M

Market Cap. (MC):

$214.4M

Fully Diluted MC:

$256.3M

Options:

13.6M

Avg. Opt. Exercise Price:

$4.04

Warrants:

15.1M

Avg. War. Exercise Price:

$5.14

Click Here for Technical Analysis Chart

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

$299.0M

ABCP/etc:

$0

Marketable Investments:

$0

Cash Cost of Property:

$0

Other Liquid Assets:

$0

Other:

$1.8M

Debt:

$3.6M

Quarterly Burn Rate:

$(10.0)M

Breakup Value (BV):

$297.2M

Last Financial Filing:

June 30, 2008

MC – BV:

$(82.8)M

www.nautilusminerals.com

All amounts are in US Dollars unless otherwise noted.

Nautilus is a mineral exploration company attempting to tap vast offshore resources of high-grade
seafloor deposits of copper, zinc, gold, and silver. Currently, the company is planning to mine highgrade, copper-gold material about 1,500 meters below surface in the Bismarck Sea of Papua New
Guinea beginning in late 2010 (subject to timely permitting).
Nautilus has spending commitments of roughly $141 million over the next 6 years, most of which will go
towards paying for a deepwater seafloor sulfide exploration vessel—much of this expense will
presumably be incurred after mining has commenced. A roughly $60 million contract has also been
awarded for two subsea mining tools, as well as a $116 million contract for a riser and lifting system.
Nautilus’s cash position of about $300 million should provide a significant portion of the funding
required to bring this seafloor mining project into production.
Nautilus has partnered with Teck Cominco Limited (NYSE: TCK) on a currently ongoing $12 million
exploration program.
Holding more than 360,000 km2 of tenement licenses and exploration applications in the exclusive
economic zones and territorial waters of Papua New Guinea, Fiji, Tonga, the Solomon Islands, and New

22 The Metal Augmentor

The Metal Augmentor © 2008

Zealand, Nautilus is well-positioned to make additional underwater discoveries going forward. If
Nautilus can demonstrate success on its first project, this massive land package could potentially
become very valuable.

We don’t own any shares nor have we ever received compensation in any form from Nautilus Minerals.

23 The Metal Augmentor

The Metal Augmentor © 2008

Price:

Orvana Minerals Corp. (TSX: ORV)
C$0.56

Shares Outstanding (O/S):

Click Here for Technical Analysis Chart

115.2M

Shares Fully Diluted (F/D):

118.2M

Market Cap. (MC):

C$64.5M

Fully Diluted MC:

C$66.2M

Options:

3.0M

Avg. Opt. Exercise Price:

C$0.90

Warrants:

0

Avg. War. Exercise Price:

n/a

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$87.5M

ABCP/etc:

C$0

Marketable Investments:

C$0

Cash Cost of Property:

C$0

Other Liquid Assets:

C$0

Other:

C$0

Debt:

C$4.5M

Quarterly Run Rate:

C$7.6M

Breakup Value (BV):

C$83.0M

Last Financial Filing:

June 30, 2008

MC – BV:

C$(18.5)M

www.orvana.com

Orvana’s Don Mario Mine produces approximately 15,000 to 20,000 ounces of gold per quarter at a cash
cost of under US$200 per ounce. This resulted in US$7.1 million or US$0.06 per share earnings in the
latest quarter. Meanwhile, free cash flow for the quarter was more than US$9 million.
The company plans to extend the life of the Don Mario mine to the third quarter of 2010 and at the
current rate that would mean another US$50 million in production cash flows. There are plans afoot to
acquire prospective projects with the more than US$80 million cash hoard, but management does not
appear to be in a hurry. In the meantime, the company trades at a significant discount to its cash even
on a fully diluted basis.
We own shares in Orvana but have received no compensation in any form from the company.

24 The Metal Augmentor

The Metal Augmentor © 2008

Pacific North West Capital Corp. (TSX: PFN)

Price:

C$0.17

Click Here for Technical Analysis Chart

Shares Outstanding (O/S):

61.7M

Shares Fully Diluted (F/D):

77.8M

Market Cap. (MC):

C$10.2M

Fully Diluted MC:

C$12.8M

Options:

6.3M

Avg. Opt. Exercise Price:

C$0.63

Warrants:

9.8M

Avg. War. Exercise Price:

C$0.69

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$8.6M

ABCP/etc:

C$0

Marketable Investments:

C$0.4M

Cash Cost of Property:

C$0

Other Liquid Assets:

C$0

Other:

C$0

Debt:

C$0

Quarterly Burn Rate:

C$(1.0)M

Breakup Value (BV):

C$9.0M

Last Financial Filing:

July 31, 2008

MC – BV:

C$1.2M

www.pfncapital.com

As of August 2008, Pacific North held about C$9 million of cash, leaving it with sufficient funds for
operating expenses over the next 12 months. The company has total spending commitments of
approximately C$2.5 million to earn an interest in optioned properties.
Pacific North has an interest in a number of PGM and nickel properties located throughout Canada,
none of which are given any value in the breakup value calculation. River Valley, located within
Sudbury, is the company’s most advanced project. The project hosts a near surface, NI 43-101
Measured, Indicated, and Inferred resource of 1.1M oz. palladium, 0.4M oz. platinum, and 63,400 oz.
gold. The project is a 50/50 joint-venture with Anglo Platinum, which can earn up to a 65% interest by
taking the project to production. Anglo Platinum has already expended approximately C$22 million on
this project. Assuming Anglo continues to advance River Valley towards feasibility, at the very least this
should put a floor under the price of Pacific North given the value of the current resource.
Pacific North also boasts a number of other high-profile partners on its remaining projects, such as
Stillwater Mining Co. (NYSE: SWC) and Xstrata plc (LSE: XTA.L), and all of these projects have been given
a value of zero in the breakup value calculation.

25 The Metal Augmentor

The Metal Augmentor © 2008

We don’t own any shares nor have we ever received compensation in any form from Pacific North West
Capital.

26 The Metal Augmentor

The Metal Augmentor © 2008

Pinetree Capital Ltd. (TSX: PNP)

Price:

C$1.34

Shares Outstanding (O/S):

114.0M

Shares Fully Diluted (F/D):

133.6M

Market Cap. (MC):

C$152.8M

Fully Diluted MC:

C$179.0M

Options:

6.4M

Avg. Opt. Exercise Price:

C$5.46

Warrants:

13.2M

Avg. War. Exercise Price:

C$9.89

Click Here for Technical Analysis Chart

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$ nil

ABCP/etc:

C$0

Marketable Investments:

C$223.0M

Cash Cost of Property:

C$0

Other Liquid Assets:

C$0

Other:

C$48.4M

Debt:

C$68.3M

Quarterly Burn Rate:

C$(6.0)M

Breakup Value (BV):

C$203.2M

Last Financial Filing:

June 30, 2008

MC – BV:

C$(50.3)M

www.pinetreecapital.com

Pinetree is a diversified investment, financial advisory and merchant banking firm focused on the smallcap market primarily within the uranium, oil & gas, molybdenum, precious metals, potash, rare earths,
and base metals sectors. Pinetree also has a small amount of investments in the biotechnology, energy
related technology, and technology sectors.
As of June 30, 2008, Pinetree held “Marketable Investments” in over 70 companies, which means that
unlike other firms such as Sprott Molybdenum Participation Corp., its relatively small positions are
spread throughout many companies and sectors. That should theoretically allow Pinetree to be
relatively more nimble in acquiring and divesting. On the other hand, the sheer number of positions
may call into question whether Pinetree has a clear portfolio strategy or whether it is simply diversifying
for the sake of diversification.
Marketable Investments as of June 30, 2008 have been adjusted to current prices but do not reflect any
purchases or sales that may have taken place since that date.
Importantly, Pinetree’s marketable investments consist of a very substantial number of warrants across
many different companies, all of which have conservatively been given zero value.

27 The Metal Augmentor

The Metal Augmentor © 2008

The “Other” category under restricted assets is made up of positions in private companies, and given the
current market conditions it may be prudent to discount this amount by 50 percent.
Insiders began buying in mid-July 2008, and have since acquired approximately 330,000 shares at
market prices as of early September 2008.
Subsequent to June 30, 2008, Pinetree completed a brokered financing which raised aggregate gross
proceeds of C$43.2 million through the issuance and sale of 17.3 million units of the company at a price
of C$2.50 per unit, which includes one common share and one purchase warrant exercisable at C$3.50.
We don’t own any shares nor have we ever received compensation in any form from Pinetree Capital.

28 The Metal Augmentor

The Metal Augmentor © 2008

Southwestern Resources Corp. (TSX: SWG)

Price:

C$0.56

Click Here for Technical Analysis Chart

Shares Outstanding (O/S):

44.9M

Shares Fully Diluted (F/D):

48.3M

Market Cap. (MC):

C$25.2M

Fully Diluted MC:

C$27.1M

Options:

3.4M

Avg. Opt. Exercise Price:

C$0.65

Warrants:

0

Avg. War. Exercise Price:

n/a

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$23.0M

ABCP/etc:

C$0

Marketable Investments:

C$3.9M

Cash Cost of Property:

C$0

Other Liquid Assets:

C$0

Other:

C$0

Debt:

C$0

Quarterly Burn Rate:

C$(3.0)M

Breakup Value (BV):

C$26.9M

Last Financial Filing:

June 30, 2008

MC – BV:

C$(1.7)M

www.swgold.com

On September 10, 2008, Southwestern Resources announced it will settle a class action lawsuit by
shareholders whereby the company will make a cash payment up to C$S7.5 million. This will reduce the
above cash position by a corresponding amount.
Southwestern Resources holds a 48.2% interest in Zincore Metals (TXS: ZNC) (approx. 38.2 million
shares). The company also holds 6.5% of Northern Superior Resources (TSX-V: SUP) (approx. 4.1 million
shares).
Southwestern Resources is currently evaluating its options including its significant landholdings in Peru,
two of which are joint ventures with Hochschild Mining and Yamana Gold. It should be noted that, as
announced on August 21, 2008, Hochschild acquired its 50% interest in the Liam project (the other 50%
is held by Southwestern Resources) along with related assets from Newmont Peru for cash
consideration of US$33.3 million. That implies a potentially significant valuation to the other 50% of the
Liam project held by Southwestern Resources, yet the market is currently giving zero value to the
project.
We don’t own any shares nor have we ever received compensation in any form from Southwestern
Resources.

29 The Metal Augmentor

The Metal Augmentor © 2008

Sprott Molybdenum Participation Corp. (TSX: MLY)

Price:

C$2.80

Click Here for Technical Analysis Chart

Shares Outstanding (O/S):

40.4M

Shares Fully Diluted (F/D):

40.6M

Market Cap. (MC):

C$113.1M

Fully Diluted MC:

C$113.6M

Options:

0.2M

Avg. Opt. Exercise Price:

C$5.31

Warrants:

0

Avg. War. Exercise Price:

n/a

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$23.4M

ABCP/etc:

C$0

Marketable Investments:

C$143.8M

Cash Cost of Property:

C$0

Other Liquid Assets:

C$19.8M

Other:

C$0

Debt:

C$0

Quarterly Burn Rate:

C$(1.3)M

Breakup Value (BV):

C$187.0M

Last Financial Filing:

June 30, 2008

MC – BV:

C$(73.9)M

www.sprottmoly.com

Sprott Molybdenum Participation Corp. (SMPC) is an investment holding company which invests in
molybdenum assets— primarily companies focused on exploring for, mining, and/or processing
molybdenum.
SMPC’s portfolio of molybdenum assets is relatively small, consisting of about 20 different molybdenum
explorers, producers, and/or processors, as well some physical molybdenum—included in “Other Liquid
Assets” above—of which SMPC plans to sell the balance by the end of 2008.
“Marketable Investments” as of June 30, 2008 have been adjusted to current prices but do not reflect
any purchases or sales that may have taken place since that date.
SMPC’s portfolio also includes a number of substantial warrant positions, none of which have been
given any value in the above table.
SMPC has been engaged in a share buyback program, having purchased and cancelled 3.0 million shares
during the six months ended June 30, 2008.
We don’t own any shares nor have we ever received compensation in any form from Sprott Molybdenum
Participation Corporation.

30 The Metal Augmentor

The Metal Augmentor © 2008

Staccato Gold Resources Ltd. (TSX-V: CAT)

Price:

C$0.10

Click Here for Technical Analysis Chart

Shares Outstanding (O/S):

99.8M

Shares Fully Diluted (F/D):

155.1M

Market Cap. (MC):

C$10.0M

Fully Diluted MC:

C$15.5M

Options:

8.2M

Avg. Opt. Exercise Price:

C$0.43

Warrants:

47.1M

Avg. War. Exercise Price:

C$0.50

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$12.7M

ABCP/etc:

C$0

Marketable Investments:

C$0

Cash Cost of Property:

C$0

Other Liquid Assets:

C$0

Other:

C$0

Debt:

C$0

Quarterly Burn Rate:

C$(0.5)M

Breakup Value (BV):

C$12.7M

Last Financial Filing:

April 30, 2008

MC – BV:

C$(2.8)M

www.staccatogold.com

Staccato has five gold exploration projects in various stages of exploration in the Carlin, Cortez/Battle
Mountain, and Independence Trends in North-eastern Nevada, including a 70/30 joint venture with
Barrick Gold Corporation (NYSE: ABX). Two of these properties have NI 43-101 compliant Measured,
Indicated, and Inferred resources totaling approximately 1.1 million ounces gold (~1.4g/t cut-off).
The company has future minimum property payments and exploration expenditures of under C$0.6
million per year.
A 6,000m drill program has recently commenced on Staccato’s 100% owned flagship South Eureka
property (current defined resources of ~0.9 million ounces gold).
Insiders have been very heavy buyers since late July 2008, purchasing about 3.5 million shares at an
average market price of about $0.11 as of early September 2008.
We don’t own any shares nor have we ever received compensation in any form from Staccato Gold
Resources.

31 The Metal Augmentor

The Metal Augmentor © 2008

Price:

Strategic Metals Ltd. (TSX-V: SMD)
C$0.38

Shares Outstanding (O/S):

Click Here for Technical Analysis Chart

58.0M

Shares Fully Diluted (F/D):

75.7M

Market Cap. (MC):

C$21.7

Fully Diluted MC:

C$28.4

Options:

5.3M

Avg. Opt. Exercise Price:

C$0.56

Warrants:

12.5M

Avg. War. Exercise Price:

C$1.17

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$17.5M

ABCP/etc:

C$0

Marketable Investments:

C$3.6M

Cash Cost of Property:

C$0

Other Liquid Assets:

C$0

Other:

C$2.8M

Debt:

C$0

Quarterly Burn Rate:

C$(0.4)M

Breakup Value (BV):

C$23.9M

Last Financial Filing:

June 30, 2008

MC – BV:

C$(2.1)M

www.strategicmetalsltd.com

Strategic Metals uses the “generative business model” which involves farming out projects to joint
venture partners who incur exploration expenditures while retaining an equity interest in the project
and receiving cash payments, royalties or shares in the JV partner. According to Strategic Metals, this
business model minimizes shareholder exposure to exploration risk and minimizes shareholder dilution
because expenditures are made by a third party. The model also protects shareholders in the case of a
major discovery because an equity or royalty interest is retained in each farmed-out project.
Meanwhile, this strategy allows the company to accumulate cash for protection against market
downturns or to use if exceptional opportunities arise.
Strategic Metals holds shares in a number of current and past exploration JV partners, including almost
9 million shares in Rockhaven Resources Ltd. (TSX-V: RK). The value of these shares should be
discounted to reflect that approximately 8 million shares are escrowed until 2010.
Strategic Metals has insignificant spending commitments related to its large project portfolio due to its
use of the “generative business model”. The company’s exploration pipeline is very active it will directly
and indirectly participate in several substantial drill programs throughout the rest of 2008 and beyond.
With around 35 properties available for joint-venture, spin-out, or outright sale, another 20 under
option, and several NSR royalties, Strategic Metals seems to offer attractive value besides the fact that it
sports a breakup value exceeding its market capitalization.

32 The Metal Augmentor

The Metal Augmentor © 2008

We own shares in Strategic Metals but have received no compensation in any form from either the
company or any of its joint venture partners.

33 The Metal Augmentor

The Metal Augmentor © 2008

Talon Metals Corp. (TSX: TLO)

Price:

C$0.45

Shares Outstanding (O/S):

27.0M

Shares Fully Diluted (F/D):

29.6M

Market Cap. (MC):

C$12.2M

Fully Diluted MC:

C$13.3M

Options:

2.5M

Avg. Opt. Exercise Price:

C$1.20

Warrants:

0

Avg. War. Exercise Price:

n/a

Click Here for Technical Analysis Chart

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$12.8M

ABCP/etc:

C$0

Marketable Investments:

C$1.8M

Cash Cost of Property:

C$0

Other Liquid Assets:

C$0

Other:

C$0

Debt:

C$0

Quarterly Burn Rate:

C$(0.9)M

Breakup Value (BV):

C$14.7M

Last Financial Filing:

June 30, 2008

MC – BV:

C$(2.5)M

www.talonmetals.com

Talon has up to approx. $1 million in property payment and exploration commitments over the next 12
months and can elect to modify its current exploration budget to conserve cash.
Talon holds 2.5 million shares in Beadell Resources Ltd. (ASX: BDR) and 4.9 million shares of Brazauro
Resources Corp. (TSX-V: BZO).
Talon also has several interesting-looking projects in Brazil including Sao Jorge where it has delineated
343,000 oz. of gold in the Indicated category.
We don’t own any shares nor have we ever received compensation in any form from Talon Metals.

34 The Metal Augmentor

The Metal Augmentor © 2008

Tiomin Resources Inc. (TSX: TIO)

Price:

C$0.05

Shares Outstanding (O/S):

445.4M

Shares Fully Diluted (F/D):

584.2M

Market Cap. (MC):

C$20.0M

Fully Diluted MC:

C$26.3M

Options:

40.4M

Avg. Opt. Exercise Price:

C$0.12

Warrants:

98.4M

Avg. War. Exercise Price:

C$0.54

Click Here for Technical Analysis Chart

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$23.7M

ABCP/etc:

C$0

Marketable Investments:

C$0

Cash Cost of Property:

C$2.0M

Other Liquid Assets:

C$0

Other:

C$0

Debt:

C$0

Quarterly Burn Rate:

C$(2.0)M

Breakup Value (BV):

C$25.7

Last Financial Filing:

June 30, 2008

MC – BV:

C$(5.7)M

www.tiomin.com

Tiomin owns the interesting Kwale Titanium Project, regarding which a memorandum of understanding
was reached on July 28, 2008 whereby Jinchuan Group Ltd. would invest $25 million into the project to
earn a 70% interest. Jinchuan would be responsible for advancing all funds required to bring the project
to production and after repayment of these funds, profits are to be shared 70/30 by Jinchuan and
Tiomin respective. This transaction values Tiomin’s retained 30% interest at potentially $10 million on a
breakup basis.
Tiomin has also earned a 49% interest in the Pukaqaqa copper-gold project in Peru. The project contains
2 billion pounds of copper in Indicated and Inferred Resources at a 0.3% cutoff as well as 500,000 oz.
gold.
Tiomin also owns 4 million shares and 4 million warrants of Kivu Gold Corp. (acquired for $2 million in
February 2008), a private company operating in China. This has been given zero value in calculating
Tiomin’s breakup value.
We don’t own any shares nor have we ever received compensation in any form from Tiomin Resources.

35 The Metal Augmentor

The Metal Augmentor © 2008

Tri Origin Exploration Ltd. (TSX-V: TOE)

Price:

C$0.30

Click Here for Technical Analysis Chart

Shares Outstanding (O/S):

51.0M

Shares Fully Diluted (F/D):

53.3M

Market Cap. (MC):

C$15.3M

Fully Diluted MC:

C$16.0M

Options:

2.3M

Avg. Opt. Exercise Price:

C$0.79

Warrants:

0

Avg. War. Exercise Price:

n/a

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$ nil

ABCP/etc:

C$1.9M

Marketable Investments:

C$15.6M

Cash Cost of Property:

C$0

Other Liquid Assets:

C$0

Other:

C$0

Debt:

C$0.5M

Quarterly Burn Rate:

C$(1.0)M

Breakup Value (BV):

C$17.0M

Last Financial Filing:

March 31, 2008

MC – BV:

C$(1.7)M

www.triorigin.com

Tri Origin Exploration (TOE) holds 49 million shares of its Australian-traded subsidiary, Tri Origin
Minerals Ltd (ASX: TRO). In addition, TOE holds C$1.8M of asset-backed commercial paper marked
down to fair value (cost of C$2.5M), which may become liquid at some point in the future. TOE has little
to no available cash and has been relying on a credit facility secured by its illiquid ABCP holdings.
TOE also has some exploration properties which appear to have significant potential, including projects
in the Red Lake district and Abitibi Greenstone Belt. The company has also recently entered into an
agreement with OZ Minerals, which is one of the largest diversified mining companies operating in
Australia. This agreement requires that OZ fund TOE’s Canadian exploration expenditures to identify
new projects up to C$750,000 per year, which may significantly reduce TOE’s cash burn rate.
TOE’s appears to be an arbitrage opportunity solely on the basis of the trading price of its Australian
subsidiary, with some upside for the resolution of its ABCP and the value of its own exploration projects.
Of course, should the share price of the Australian subsidiary decline, the arbitrage opportunity might go
away. Currently, Tri Origin Minerals trades near a 52-week low.
We don’t own any shares nor have we ever received compensation in any form from either Tri Origin
Exploration or Tri Origin Minerals.

36 The Metal Augmentor

The Metal Augmentor © 2008

Price:

U.S. Energy Corp. (NASDAQ: USEG)
$2.29

Shares Outstanding (O/S):

Click Here for Technical Analysis Chart

23.5M

Shares Fully Diluted (F/D):

28.1M

Market Cap. (MC):

$53.9M

Fully Diluted MC:

$64.4M

Options:

3.6M

Avg. Opt. Exercise Price:

$3.74

Warrants:

0.9M

Avg. War. Exercise Price:

$3.61

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

$9.9M

ABCP/etc:

$0

Marketable Investments:

$60.9M

Cash Cost of Property:

$7.0M

Other Liquid Assets:

$0

Other:

$9.9M

Debt:

$13.9M

Quarterly Burn Rate:

$(2.0)M

Breakup Value (BV):

$73.8M

Last Financial Filing:

June 30, 2008

MC – BV:

$(19.9)M

www.usnrg.com

All amounts are in US Dollars unless otherwise noted.

Most of U.S. Energy’s liquid assets are held in the form of U.S. Treasuries with maturities greater than 3
months ($60.3 million at June 30, 2008).
U.S. Energy is developing a multi-unit apartment project in Wyoming that may require the company to
fund up to $14 million if a permanent loan cannot be obtained and none of the units are sold (worst
case scenario). That does not represent an additional commitment above the amounts reflected in the
table above (project debt of US$14 million, $7 million spent on the property so far, and $4.9 million
secured investments held in U.S. Treasuries reflected in “Other”) but it could reduce breakup value by
up to $14 million.
U.S. Energy had budgeted $5 million in expenditures related to its Lucky Jack molybdenum project for
the remainder of 2008. Importantly, on August 19, 2008 US Energy entered into an agreement with
Thompson Creek Metals Company Inc. (TSX:TCM; NYSE:TC) whereby Thompson Creek will have the
ability to earn up to a 75% interest in the Lucky Jack molybdenum project by expending up to $400
million. This comes soon after US Energy’s prior partner, Kobex Resources Ltd. (TSX-V: KBX), terminated
its agreement due to its perception of uncertainties in the regulatory and legal environment for
developing the property.

37 The Metal Augmentor

The Metal Augmentor © 2008

On August 22, 2008, U.S. Energy announced it had sold its interest in Sutter Gold Mining Inc. (TSX-V:
SGM) for C$5.4 million, net of a C$0.5 million private placement. After the transaction, U.S. Energy will
have approximately 8 million shares of Sutter (4.5 million shares with a 4 month holding period),
warrants to purchase 2.2 million Sutter shares at $0.15/share, and a 5% Net Profits Royalty which will be
reduced to 1% after U.S. Energy receives $4.6 million from production. We have estimated the value of
the Sutter transaction to be $5.0 million and included it as “Other” in the table above.
Effective June 22, 2007, US Energy approved a share buyback program for up to $5.0 million. Through
June 30, 2008, the Company had repurchased 0.78 million shares of its common stock (including 0.55
million in 2008 for $1.9 million).
The company’s breakup value does not include any value attributed to the company’s Lucky Jack
molybdenum project, its oil and gas interests, its 4% Net Profits Royalty on the Green Mountain uranium
property in Wyoming owned and operated by Rio Tinto, or the up to $40 million in payments from
Uranium One starting in 2010 (including initial payment of up to $27.5 million).
We don’t own any shares nor have we ever received compensation in any form from U.S. Energy.

38 The Metal Augmentor

The Metal Augmentor © 2008

U3O8 Corp. (TSX-V: UWE)

Price:

C$0.64

Shares Outstanding (O/S):

23.1M

Shares Fully Diluted (F/D):

25.5M

Market Cap. (MC):

C$14.8M

Fully Diluted MC:

C$16.3M

Options:

1.9M

Avg. Opt. Exercise Price:

C$2.03

Warrants:

0.6M

Avg. War. Exercise Price:

C$2.50

Click Here for Technical Analysis Chart

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$17.4M

ABCP/etc:

C$0

Marketable Investments:

C$0

Cash Cost of Property:

C$0

Other Liquid Assets:

C$0

Other:

C$0

Debt:

C$0.7M

Quarterly Burn Rate:

C$(3.0)M

Breakup Value (BV):

C$16.7M

Last Financial Filing:

June 30, 2008

MC – BV:

C$(2.0)M

www.u3o8corp.com

U3O8 Corp. expects to spend about C$3.0 million on exploration over the next 18 months.
The company is making good progress on its Prometheus Uranium project in Guyana. A 77-hole, phase
III drill program (13,600m) was recently completed on the project’s Aricheng South structure. Similarly,
a 53-hole, 8,831m Phase III program on Aricheng North was also recently completed and all assay results
are in the process of being received. An initial resource estimate on both these structures is expected in
Q4 2008. Meanwhile, a Phase I drill program is taking place on the Accori North area. Infill drilling is
expected to continue into late 2008, with a resource estimate planned for early 2009. Typical
intersections across these structures have ranged from 10-20m of 0.10%-0.20% U3O8.
We don’t own any shares nor have we ever received compensation in any form from U3O8 Corporation.

39 The Metal Augmentor

The Metal Augmentor © 2008

Volta Resources Inc. (TSX: VTR)

Price:

C$0.25

Shares Outstanding (O/S):

53.2M

Shares Fully Diluted (F/D):

58.1M

Market Cap. (MC):

C$13.3M

Fully Diluted MC:

C$14.5M

Options:

4.9M

Avg. Opt. Exercise Price:

C$0.94

Warrants:

0

Avg. War. Exercise Price:

n/a

Click Here for Technical Analysis Chart

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$11.0M

ABCP/etc:

C$0

Marketable Investments:

C$2.9M

Cash Cost of Property:

C$0

Other Liquid Assets:

C$0

Other:

C$0

Debt:

C$0

Quarterly Burn Rate:

C$(1.0)M

Breakup Value (BV):

C$13.9M

Last Financial Filing:

June 30, 2008

MC – BV:

C$(0.7)M

www.voltaresources.com

“Marketable Investments” reflected in the table above consist of 10 million shares of Apex Minerals NL
(ASX: AXM).
The breakup value assumes that Gaoua, Kampti, and various other prospects located in Burkina Faso are
worthless. At Gaoua, Volta has partnered with Freeport McMoRan Exploration Corporation, a subsidiary
of Freeport McMoRan Copper and Gold Inc. (NYSE: FCX) where a 12,000m drill program is currently
underway-- significant drill results include 106m of 0.66% copper and 0.49g/t gold, and 224m of 0.52%
copper and 0.19g/t gold. At Kampti, Volta is currently carrying out a 5,000m program targeting gold,
with recent results such as 3m of 63.52g/t gold.
We don’t own any shares nor have we ever received compensation in any form from Volta Resources.

40 The Metal Augmentor

The Metal Augmentor © 2008

Wallbridge Mining Company Ltd. (TSX: WM)

Price:

C$0.16

Click Here for Technical Analysis Chart

Shares Outstanding (O/S):

88.8M

Shares Fully Diluted (F/D):

111.7M

Market Cap. (MC):

C$14.2M

Fully Diluted MC:

C$17.9M

Options:

10.1M

Avg. Opt. Exercise Price:

C$0.44

Warrants:

12.8M

Avg. War. Exercise Price:

C$0.91

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$4.4M

ABCP/etc:

C$0

Marketable Investments:

C$10.0M

Cash Cost of Property:

C$0

Other Liquid Assets:

C$0

Other:

C$0

Debt:

C$1.0M

Quarterly Burn Rate:

C$(2.0)M

Breakup Value (BV):

C$13.4M

Last Financial Filing:

June 30, 2008

MC – BV:

C$0.8M

www.wallbridgemining.com

Wallbridge has commitments to spend roughly C$2.5 million on exploration properties by December 31,
2009, but is likely to spend at least 2-3x this amount especially given its aggressive drill program for
2008—10,000m on 11 properties.
The company has a number of PGM exploration projects in Sudbury as well as a copper-moly-gold
property in British Columbia and several gold properties in the Kirkland Lake gold camp which have
recently been joint-ventured with Tanqueray Resources Ltd. (TSX-V: TQY). Wallbridge’s Sudbury
properties include joint-venture arrangements with Xstrata Nickel (LSE: XTA), Impala Platinum Holdings
Limited (JSE: IMP), and Lonmin Plc (LSE: LMI).
With 10 million shares of Duluth Metals (TSX: DM) which are worth close to the company’s current
market capitalization, Wallbridge is highly leveraged to Duluth’s performance. Investors are essentially
receiving exposure to Wallbridge’s exploration projects at little to no cost.
We don’t own any shares nor have we ever received compensation in any form from Wallbridge Mining.

41 The Metal Augmentor

The Metal Augmentor © 2008

Western Uranium Corporation (TSX-V: WUC)

Price:

C$0.85

Click Here for Technical Analysis Chart

Shares Outstanding (O/S):

59.4M

Shares Fully Diluted (F/D):

65.3M

Market Cap. (MC):

C$50.5M

Fully Diluted MC:

C$55.5M

Options:

3.2M

Avg. Opt. Exercise Price:

C$1.64

Warrants:

2.8M

Avg. War. Exercise Price:

C$4.25

Unrestricted Assets

Restricted Assets

Cash & Short Term Inv:

C$51.5M

ABCP/etc:

C$0

Marketable Investments:

C$6.8M

Cash Cost of Property:

C$0

Other Liquid Assets:

C$0

Other:

C$0

Debt:

C$0

Quarterly Burn Rate:

C$(1.5)M

Breakup Value (BV):

C$58.3M

Last Financial Filing:

June 30, 2008

MC – BV:

C$(7.8)M

www.westernuraniumcorp.com

“Marketable Investments” consist of 15.2 million shares—or about 30%— of its recent spin-out,
Western Lithium Canada Corporation (TSX-V: WLC).
Western’s breakup value assumes that its 4 uranium properties located in New Mexico, Nevada, and
northern Canada are worthless. The most advanced project, Kings Valley, contains about 23 million lbs.
of uranium exposed at or near surface levels, of which 4.8M lbs. are NI 43-101 compliant Inferred
resources—average grade of 0.08 percent. Western is currently drilling in Kings Valley.
Finally, it is interesting to note that the company entered into a strategic alliance with Cameco
Corporation (NYSE: CCJ) in August 2007, whereby Cameco has the right to earn a 70% interest on any of
Western’s project if they represent a stand-alone deposit containing at least 15M lbs. of Indicated or
better NI 43-101 uranium resources. To obtain this interest, Cameco must pay Western a minimum of
$5.00 per pound of uranium resource and carry the project through feasibility.
We don’t own any shares nor have we ever received compensation in any form from Western Uranium.

42 The Metal Augmentor

The Metal Augmentor © 2008

Appendix A: Other Companies to Consider
Brinkley Mining Plc (AIM: BRM)

Brinkley currently has a BP$5.6M MC versus BP$8.1M cash on hand at June 30, 2008. In July 2008, the
company spent US$1.75M to acquire the remaining 30% stake in African Uranium. The quarterly burn
rate, absent unusual one-time transactions, of BP$1-2M should allow the company to operate for some
time without needing to raise funds.
We don’t own any shares nor have we ever received compensation in any form from Brinkley Mining.

Continental Precious Metals Inc. (TSX: CZQ)
Don’t let the name fool you, this company is actually exploring for uranium in Sweden. The company
had a treasury of over C$28M as of May 31, 2008 and currently sports a market capitalization of
$C31.4M. Thus, the market is giving almost no value to the significant indicated and inferred resources
consisting of (1) 20 million pounds of higher-grade uranium oxide and (2) 437 million pounds of lowgrade uranium oxide hosted in oil shale. At the current burn rate, the company could support
exploration and other costs for several years.
We don’t own any shares nor have we ever received compensation in any form from Continental Precious
Metals.

Crescent Gold Limited (TSX-V: CRA; ASX: CRA)
The Canadian listing of Crescent (TSX: CRA) is trading at a very large discount to its Australian listing
(ASX: CRE). The company’s market capitalization on the basis of its Canadian share price (C$44.0M) is
below the cash on hand as of June 30, 2008 (AU$49.6M). We should not that Crescent has likely spent a
substantial amount of cash since June 30, 2008, and it also appears to have substantial liabilities
including accounts payable and an AU$5M convertible debenture that would reduce breakup value
below its current Canadian market capitalization. The price arbitrage, however, between the Canadian
shares (C$0.065) and Australian shares (AU$0.115) appears interesting.
We don’t own any shares nor have we ever received compensation in any form from Crescent Gold.

43 The Metal Augmentor

The Metal Augmentor © 2008

International Nickel Ventures Corp. (TSX: INV)

International Nickel (INV) currently trades near its cash position reported on June 30, 2008, giving no
value for its Canadian and Brazilian projects which include the Santa Fe nickel laterite project. Santa Fe
is a joint venture with Teck Cominco beneficially owned 20% by INV and carried on the company’s books
at C$17M (representing property option payments). The company’s exploration budget appears
somewhat flexible and should allow the current C$3M per quarter burn rate to be reduced.
We don’t own any shares nor have we ever received compensation in any form from International Nickel
Ventures.

MAX Resources Corp. (TSX-V: MXR)
MAX had approx. C$7M of cash at June 30, 2008 compared to a current market cap of C$6.5M. MAX has
optioned a number of projects that would require exploration expenditures and option payments
totaling more than C$2M over the next 12 months to remain in good standing. Assuming that MAX
management picks and chooses among the most prospective projects in the current tough environment,
there may not be a need for a financing any time soon.
We don’t own any shares nor have we ever received compensation in any form from MAX Resources.

New Oroperu Resources Inc. (TSX-V: ORO)
While New Oroperu holds just C$1.2M of cash at June 30, 2008, it has no project expenditures and only
minimal administrative expenses—under C$0.2M per quarter. The company receives a C$0.2M annual
cash option payment from Barrick Gold, which is currently earning a 70% interest in the company’s
100% owned Tres Cruces project in Peru.
Recent drill results from this project included the highlight hole of 228m grading 2.96g/t gold. The
project also has a historical (non-43-101 compliant) resource estimate of 1.7 million ounces of gold at
1.59g/t—this does not include hole highlighted above or many other significant holes drilled by Barrick
over the last several years.
With just 16.2 million shares outstanding, 1.8 million options, zero warrants, no requirement in the near
term to raise funds, and Barrick proceeding with baseline project studies for the development of the
Tres Cruces project, New Oroperu represents an interesting option in a cash-strapped resource market.

44 The Metal Augmentor

The Metal Augmentor © 2008

We own shares in New Oroperu but have never received compensation in any form from the company.

Triex Minerals Corporation (TSX-V: TXM)
Triex had about C$12.5M of net cash at April 30, 2008 as compared to its current market capitalization
of C$10.M. However, the company is extremely active in Canadian uranium exploration, and therefore
its current cash position is likely to be several million dollars lower than what was last reported.
We don’t own any shares nor have we ever received compensation in any form from Triex Minerals.

U.S. Silver Corporation (TSX-V: USA)
U.S. Silver has put approximately US$30M into its Galena project in Idaho during the past 2 years—more
than US$15M to purchase it from Coeur d’Alene Mines and another US$15M in repairs, development,
and resource expansion. The current market cap is C$32M (US$30.3M), about the same as the cash
investment in the mine, and that does not account for the US$20M in working capital as of June 30,
2008 (currently estimated to be US$15M).
We own shares in U.S. Silver but have never received compensation in any form from the company.

45 The Metal Augmentor

The Metal Augmentor © 2008

Appendix B: Technical Analysis Charts
By Roy Martens
Charts begin on the following page.

46 The Metal Augmentor

Altius Minerals Corporation

The Metal Augmentor © 2008

Return to Company Profile

47 The Metal Augmentor

Committee Bay Resources Ltd.

The Metal Augmentor © 2008

Return to Company Profile

48 The Metal Augmentor

The Metal Augmentor © 2008

Dynamite Resources Ltd.

Return to Company Profile

49 The Metal Augmentor

Endeavour Financial Corporation

The Metal Augmentor © 2008

Return to Company Profile

50 The Metal Augmentor


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