Correlation, page-10

Not really sure at this point John. I thought it would be good to have some cash on hand for other opportunities in mining and energy. The sell off in December produced some of he best bargains I've ever seen and I didn't have the cash to pursue them.

What is amazing about this market is the complete lack of attention being paid to most of the smaller producers (all metals, not just gold). When DRM came out with their increased guidance 4 weeks ago the market was very slow to react but now it is up 65%. In the past I've tended to be a bit overactive trading. There is no need to predict price movements really now as there is slow reaction. BDR is another one where the market seemingly has taken a week to run on the announcement. Even the $A effect was evident in early December and it has taken the market a month to work out that this might just help domestic producers. Whether this is just because of the Christmas break I'm not sure.

I think ALK could see a re-rating with its gold mine performing well above feasibility estimates of grade and costs. It's really my pick of the mine developers with cash generation and a DFS level project.

PNA is a stock that is completely unloved and does not get the trading tailwinds like others. Copper in general is unloved but I think PNA is a good defensive play for the medium term. There is takeover potential as well with an offer being rebuffed 6 months ago.