Weathering The Storm by Jp Colin

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  • All attempts to log in and order the computer to cancel the countdown fail, and all weapons will launch if the computer is disabled. Instead, the heroes of the movie direct the computer to play tic-tac-toe against itself. This results in a long string of draws, forcing the computer to learn the concept of futility. The computer obtains the missile code but before launching, it cycles through all the nuclear war scenarios it has devised, finding they too all result in stalemates. The computer concludes that nuclear warfare is "a strange game"; having discovered the concept of Mutually Assured Destruction ("WINNER: NONE"), therefore "the only winning move is not to play." Joshua then offers to play "a nice game of chess", and relinquishes control of NORAD and the missiles.

Transcript

  • 1. Captain Jack Sparrow in Pirates of the Caribbean:
"Trueenough, this compass does not point north."
"...Where does itpoint?"
"It points to the thing you want most in this world.”Weathering the Storm “Think Differently” PDAC 2013 Jean-Pierre Colin Capital Markets Strategies JPColin@Sympatico.Ca Mobile: 416-573-4300
  • 2. 2 Survival of an Industry  Charles Darwin: “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.”  Is the financial crisis temporary?  Who wants you to believe this?  Is this a down cycle or a fundamental and permanent shift in capital markets?  If this is a temporary crisis  For how long?  What will make it revert?  Who will survive?March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 3. 3 Juniors Lag Large Caps in Funding and the financing window for juniors is shorter Volume of Financings over Time Large Caps Juniors time 2013March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 4. Sources of Funds Continually 4 Evolve 2013 Off-Takes Royalty Deals High Net Worth Governments and Individuals large Corporations Family Offices in Asia and Middle Secondary Hedge Funds East Fundraising Mainly newcomers New Wealth to the industry Seeking Retail Distributions International Flow-Through Funds Still active but many Mining IPO’s sitting on the Opportunities Select Group of sidelines this year VSE Institutional Investors Different MSE and Banks with Negotiation Tactics Expertise Longer Lead Times ME Canadian, USA and New Intermediaries ASE European Portfolio Grub Staking 1980 Seed WSE Managers and Letter Writers Are Many of Our Traditional Brokers Investments Evolution to Becoming Obsolete? TSX, TSXV, AIM by Syndicates of Private InvestorsMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 5. 5 When Survival is at Stake  There is No Plan “B”  Develop a Strategy  Engage Shareholders  Manage Dilution  Maintain Ownership Title of Core Properties  Goal, as always, is to advance towards building a mine  Methodology? There is only one: “Think Differently”March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 6. 6 Apple Computer Ad Campaign  Apple once held an Ad Campaign entitled “Think Differently”.  It read like this:  "Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs inMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 7. 7 Lofty Goals: Mines & ShuttlesMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 8. Best and Unique Accomplish -ments Requires 500 thousands of skill sets person to build: no team subset is substitute 33 Successful Mines No one Few people individual have seen it on TV can build one You can name the CEO!March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013 8
  • 9. Best and Unique Accomplish -ments Requires thousands 50,000 of skill sets person to build: no team subset is substitute 33 Successful Space Shuttles 4 Billion No one people individual have seen can build it on TV one Can you name the CEO?March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013 9
  • 10. 99% of a Project = Failure the project must be 100% completed and each time it is different than the last time there is no cookie cutter formula Mine Space Shuttle Technologically Risky Technologically Risky Large Team Required Large Team Required No Margin for Errors No Margin for Errors Capital Intensive Capital IntensiveMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013 10
  • 11. Only 33 New Mines Opened in 11 Canada in the Last 33 Years 33 New Mine Operators Fewer Mining Companies with Feasibility Study Some Juniors with PEA Many Juniors with Resources & Reserves Thousands of Early Exploration JuniorsMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 12. 12 33 Mines are Outliers that think differently  Distribution of thousands of Junior Exploration Companies  or Distribution of thousands of Flying Machines conventional “me too” conventional “me too” thinking thinking 33 Mines and 33 Shuttles thinking differently to achieve outlier statusMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 13. 13 Investment Check List  The 7 “Ps” of Successful Investments in Mining  Most juniors often fail to address what is most important to investors  In “feeding frenzy” capital markets, in the rising tide when all the boats go up, the problem isn’t apparent  In a financial crisis, it’s very easy to point to the lack of investors instead of looking introspectively  But, it isn’t just the pitch deck that needs attention  It’s the entire corporate strategy that needs to change  What criteria are used by experienced professionals?  Research Analysts, Investment Bankers  Retail Brokers, Institutional Desks  Institutional Investors, Flow-Through Funds, Portfolio ManagersMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 14. 14 People Property Mining Mining companies companies with with good perceived good properties managementPriceMining 7 P’s of Miningcompanies with Investments Promotionlow market Miningvaluations companies with perceived good promotional capabilities Plan Patience Mining Mining companies with companies with strategic plans credible that appeal to timelines investors Persistence Recognizable mining March 6, 2013 companies Think Differently - Weathering the Storm - PDAC 2013
  • 15. 15 People Property Price Promotion Plan Persistence Patience  The art of winning an unfair game  Peter Brand in Moneyball: “Baseball thinking is medieval, they are asking all the wrong questions and if I say it to anybody Im...Im ostracized. Im a rebel, so thats why Im...Im cagey about this with you, thats why I respect you Mr. Beane and if you want full disclosure, I think its a good thing you got Damon off of your payroll. I think it opens up all kinds of interesting possibilities.”March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 16. 16 People Property Price Promotion Plan Persistence Patience  Wise & balanced board of directors  Not just “my friends and drinking buddies”  Consult with board members  C-Suite (CEO,CFO,COO) who have survived crises  Older executives with relevant experience  Not people learning as they go along at your expense  Forward-looking Technical Staff  Exploration geologists, field geologists, engineers, metallurgists  Continually review and question assumptions, don’t allow group-think  Consultants to save funds and … think differently  Moneyball = an example of success when funds are very scarce  Change the way your company plays the mining gameMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 17. 17 People Property Price Promotion Plan Persistence Patience  Hire Mentors  It’s not uncommon in a VC office, or local coffee shop in Silicon Valley to see the 20-something first-time entrepreneur in jeans and a t-shirt sitting across the table from the 50- something entrepreneur wearing jeans and sandals. It just happens that the 50-something is a third generation entrepreneur and ridiculously wealthy. He or she’s not helping the first-time entrepreneur because of the money, but as Randy Komisar would say; “he or she wants to be part of the future”. They want to give back! They are paying it forward.March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 18. 18 People Property Price Promotion Plan Persistence Patience  Hire More WomenMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 19. 19 People Property Price Promotion Plan Persistence Patience  Hire Locals & First NationsMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 20. 20 People Property Price Promotion Plan Persistence Patience  Hire Young PeopleMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 21. 21 People Property Price Promotion Plan Persistence Patience  Pay Good Wages  Robert Bosch: “I don’t pay good wages because I have a lot of money; I have a lot of money because I pay good wages.”  Simple Wisdom: “If you pay peanuts, you get monkeys.”  Cut your expansive drilling budget a bit to stretch for  The best of the best people  Put some money into your thinking  Not all the money in the ground  Mines are made, not foundMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 22. 22 People Property Price Promotion Plan Persistence Patience  BlackRock Metals Inc. is a privately financed Canadian mining company:  100% owned world-class iron ore, vanadium and titanium property  In one of the most prolific mining regions in the world  High-performance culture is guided by its core values of  putting people first  operating on budget in a safe environmentally sound manner and  maintaining a high standard of social responsibility and social acceptance of its projects  BlackRock is still awaiting its newest final feasibility study, yet:  has commenced mine construction  production will have been achieved in record time  financed in part by off-take agreementsMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 23. 23 People Property Price Promotion Plan Persistence Patience  Captain Jack Sparrow in Pirates of the Caribbean:
"True enough, this compass does not point north."
"...Where does it point?"
"It points to the thing you want most in this world.”March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 24. 24 People Property Price Promotion Plan Persistence Patience  Prioritize your properties and pick only one  Limited funds impedes achieving a Valuation Milestone  Spending on several properties reduces the impact of the limited cash  Consider the spectrum of investor segments  Gold Bugs vs. Base Metal Investors  Safe Jurisdictions vs. Riskier Higher Return States  Early Stage vs. Advanced Stage  Deal with investor risk  Don’t build half bridgesMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 25. 25 People Property Price Promotion Plan Persistence Patience Main Property Secondary of Merit Property of Expenditure Geological Limited Funds Requirement Interest Expenditure Requirement Do One Thing Available Cash and property fully financed to Do That Particular advance to a Thing Very Well value creation milestone Fashionable Dormant Property Properties Expenditure Expenditure Requirement RequirementMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 26. People Property Price Promotion Plan Persistence PatienceOnly some Universe of Gold Universe of Base Only someGold Bugs like Investors Metal Investors investors likebase metals Gold
  • 27. People Property Price Promotion Plan Persistence PatienceOnly some Universe of Safe Universe of Only someinvestors like Jurisdiction Complicated investors likerisky safejurisdictions Investors Jurisdiction Jurisdictions Investors
  • 28. People Property Price Promotion Plan Persistence PatienceOnly some Universe of Universe of Only somespeculators Investors Investors in investors likelike early stageproduction In Advanced Stage juniors Early Stage Juniors Juniors
  • 29. 29 People Property Price Promotion Plan Persistence Patience  Maintain ownership title through the financial crisis  Renegotiate with co-operative industry colleagues  JVs  Earn-ins  Options  Help industry colleagues maintain ownership title  e.g. Celine Dion’s Golf Course in Terrebonne, Quebec  Opportunity to acquire new propertiesMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 30. 30 People Property Price Promotion Plan Persistence Patience  Eli in The Book of Eli: “People had more than they needed, people didnt know what was precious and what wasnt, people threw away things they kill each other for now.”March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 31. 31 People Property Price Promotion Plan Persistence Patience  Valuation Parameters  If it costs $15 to find one oz. of Au then don’t raise exploration funds at $5 market cap per oz.  Low Capital Expenditures + Low Operating Costs are financed first  Comparables  You must not be better than your peers; you must be the best at something  e.g. best in the region, best in a commodity, closer to markets, closer to production, best grades at best cut-offs, lowest cost structure, lowest market cap per lb. etc.  Independent opinions of value  News Letter Writers; Research Analysts; 43-101 reports  Who else thinks you are undervalued and WHY?  Address dilution head-on  Reverse Stock splits are not the solution  Stock Consolidations are not the solution  Detour Gold emerged out of Pelangio Mines  A new company was created  Property was sold, stock was not dilutedMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 32. 32 People Property Price Promotion Plan Persistence Patience Flow- Through Future Investors Pressure on Stock PriceRigorous Short TermInvestment Institutional Retail InvestmentCriteria Horizon Investors InvestorsMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 33. 33 People Property Price Promotion Plan Persistence Patience  Gordon Gekko in Wall Street: “I dont throw darts at a board. I bet on sure things. Read Sun-tzu, The Art of War. Every battle is won before it is ever fought.”March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 34. 34 People Property Price Promotion Plan Persistence Patience  What is your Value Proposition?  Why will your stock price rise?  Demonstrate this assertion with hard evidence  Finance enough to reach a Valuation Milestone  Do not build half a bridge; it is as useful as no bridge at all  e.g. As disclosed in Barrick’s Q2 2012 Report, preliminary results of a review indicated an increase in capital costs of its Pascua-Lama project to $7.5-$8.0 billion and a delay in first production to mid- 2014  Show evidence of your Valuation Milestone  Formation Capital did everything right, they reached Full Feasibility, Full Permits, but  Without financing the stock price has languished  Investors have not made money  Liquidity is Value; Displace Peers; Exit StrategyMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 35. 35 People Property Price Promotion Plan Persistence Patience  What is good promotion?  “I need to meet more investors because my stock is down,” says the CEO  “Well, how much promotion have you done so far?” says the Thinker  “Oh, I do a lot, and I spend a lot on promotion, years of meetings, in Canada, USA, Europe, many retail brokers too,” says the CEO  “Well, maybe this proves your promotion isn’t working because your stock hasn’t appreciated during this period of promotion. In fact, you have proven beyond doubt that, whatever your promotion is, your methodology isn’t working,” says the Thinker  You don’t need to meet more investors yet, you must fix your story first! That doesn’t mean a fancier PowerPoint, it means a new overall business strategy, a new value proposition, basically, a new business! When you are ready, then, meet new investors.March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 36. 36 People Property Price Promotion Plan Persistence Patience  JK Rowling: “I really don’t believe in magic.”  Ensure your strategic plan adheres to strict logic.  Demonstrate that  if your plan is successful it will make money for investors  You have the ability to fulfill the plan with aplomb…March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 37. 37 People Property Price Promotion Plan Persistence Patience  Demonstrate you have the ability to fulfill the plan with aplomb  A plumMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 38. 38 People Property Price Promotion Plan Persistence Patience  Zig Ziglar: "If you wait until all the lights are green before you leave home, you will never get started on your trip to the top.”  Plan a strategy  Measure Progress  Eliminate Debt  Think Big – Think DifferentlyMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 39. 39 People Property Price Promotion Plan Persistence Patience  Develop a suitable foundation that inspires your potential investors at the start of your presentationMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 40. 40 People Property Price Promotion Plan Persistence Patience  Reach a Valuation Milestone  Do not build half a bridgeMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 41. 41 People Property Price Promotion Plan Persistence Patience  99% of a Plan is not a strategy, it doesn’t work  A beautiful car without a battery is uselessMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 42. 42 People Property Price Promotion Plan Persistence Patience  It’s ironic that the most important instant in presentations is a tiny fraction of the 30 minutes spent with investors but no effective adjustments to the plan can be made at that very crucial moment  Do not try to alter your plan during investor presentationsMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 43. 43 People Property Price Promotion Plan Persistence Patience  Every detail is a major decisionMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 44. 44 People Property Price Promotion Plan Persistence Patience $UCCE$$ Exit Strategy Demonstrate you Production or Sale can realistically Quality of data is achieve an Exit established Strategy. Next Valuation throughout the Milestone process before future production and/or Determine how you due diligence by a survive the crisis that potential senior follows even if you buyer or production Value Creation survive the current Milestone team. one? If successful, the current expenditures lead to a significantly Acquisition higher share price and and value. expenditureToday… programme of Property Manage Capital Spending.March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 45. 45 People Property Price Promotion Plan Persistence Patience  Hope for the Best  The unexpected is always upon us  Plan for the Worst  Lightning strikes unexpectedly  Adapt to the Financial Crisis  Make your company robust  Expect unusual setbacks  Maintain flexibility  e.g. Creation of NIM in 1980sMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 46. 46 People Property Price Promotion Plan Persistence Patience  NIM Limited Partnerships of the 1980s  1st public Junior Flow Through Share funds  raised over $730,000,000  invested in over 400 mining companies in Canada  9 public limited partnerships  Created in the summer of 1984 in a very slow capital markets environment, while sharing innovative ideas and thinking differently  aided by just the perfect amount of fine red wine  on an outdoor patio  on the island of Stanley Park  one sunny afternoon  on a seemingly very ordinary Sunday.March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 47. 47 People Property Price Promotion Plan Persistence Patience  Abraham Lincoln: “If once you forfeit the confidence of your fellow-citizens, you can never regain their respect and esteem.”March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 48. 48 People Property Price Promotion Plan Persistence Patience  Plan the Ultimate  Sally Ride: “Even though NASA tries to simulate launch, and we practice in simulators, its not the same - its not even close to the same.”March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 49. 49 People Property Price Promotion Plan Persistence Patience  Voisey’s Bay Mine  Even the best of plans are subject to change  The 1993 discovery of Voiseys Bay by prospectors Albert Chislett and Chris Verbiski, was almost accidental.  The Diamond Field Resources managers were focused on diamonds and initially showed little interest in the nickel- copper prospect.  Of course, they changed their minds when drilling revealed core rich in massive sulphides, with stunningly rich grades of nickel.  The property fetched $4.3 billion in 1996 after a takeover battle.March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 50. 50 People Property Price Promotion Plan Persistence Patience  Mark Zuckerberg: “There are people who are really good managers, people who can manage a big organization, and then there are people who are very analytic or focused on strategy.”March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 51. 51 People Property Price Promotion Plan Persistence Patience  Wolfden Resources  TSX listed and successfully sold (purchased by Zinifex, now China MinMetals) for approximately 1/2 billion dollars.  Ewan Downie created Wolfden which became an acquirer of dozens of mining properties that no one wanted in Nunavut. Wolfden adopted the strategy of the little fish eating the even smaller fish and the little fish grew and grew. Then one day an even bigger fish ate Wolfden and investors made a lot of money.  uNCONVENTIONAL tHINKING: we made money for investors by being acquired instead of being the one doing the acquiring.March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 52. 52 People Property Price Promotion Plan Persistence Patience  Miyagi in The Karate Kid: “Wax on, right hand. Wax off, left hand. Wax on, wax off. Breathe in through nose, out the mouth. Wax on, wax off. Dont forget to breathe, very important. You learn plenty.” Daniel: “I learn plenty, yeah, I learned how to sand your decks maybe. I washed your car, paint your house, paint your fence. I learn plenty!” Miyagi: “Ah, not everything is as seems...”March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 53. 53 People Property Price Promotion Plan Persistence Patience  John F. Kennedy: “When written in Chinese, the word "crisis" is composed of two characters. One represents danger and the other represents opportunity.”March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 54. 54 People Property Price Promotion Plan Persistence Patience  Caratax Management Ltd.  Created in 1993, when the mining capital markets were dead  FIRST ever diamond Flow Through Share fund manager  FIRST fund manager ever to proclaim that there would be diamond mines in Canada well before any such mines existed  FIRST ever to proclaim that, ironically, Canadians would not own nor control most of the diamond mines discovered by Canadians in Canada and on Canadian soil because Canadian financial institutions were not thinking outside the box.  Foreign companies bought many of these mines with foreign capital.  "Those who think something cannot be done should not stand in the way of those who are actually doing it."
Farallon Management MantraMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 55. 55 People Property Price Promotion Plan Persistence Patience  Blue Note Metals Inc.  $6,000,000 market cap, didn’t even own the asset  We raised $150,000,000 at market via subscription receipts  BN re-opened a mine all within 3 years, thinking differently  Walter Duranty: “You can’t make an omelette without breaking a few eggs.”March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 56. 56 People Property Price Promotion Plan Persistence Patience  Puget Ventures/Global Cobalt  Thinks Differently because  the acquisition of Karakul Cobalt Deposit in Altai, Russia, and current corporate transition is a game-changing expansion of the company  that will allow for the evolution of a leading strategic metals player  focused on the creation of a new mining district in the crossroads of Central Asia  As first mover into this new region, the Company will be able to leverage the world-class Karakul  has the potential to become the worlds largest primary-cobalt deposit outside of Africa  bring on stream a number of projects that are under right of first refusal, creating a mining district with enormous potentialMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 57. 57 People Property Price Promotion Plan Persistence Patience  Joshua, the NORAD computer, in War Games: “A strange game, Global Thermonuclear War. The only winning move is not to play.”March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 58. 58 People Property Price Promotion Plan Persistence Patience  Virginia Gold  TSX listed and assets successfully sold to Goldcorp for $1,300,000,000  I was honoured that Andre Gaumond, President of Virginia, asked me to join his board in 1993. Virginia was a pure exploration play of very high risk mining prospects in Quebec.  For 10 years nothing great seemed to happen at Virginia and Andre and I would tell each other month after month:  "Never Give Up”  It worked!March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 59. 59 People Property Price Promotion Plan Persistence Patience  Ernest Hemmingway: “The first draft of anything is shit.”March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 60. 60 People Property Price Promotion Plan Persistence Patience  Detour Gold  For me, the story of Detour Lake started in 2001, when I got involved with an orphan company and relentlessly promoted the opportunity in the mining and finance world.  Ironically, no one on Bay Street, not even the best of experts, seemed to think that this property could ever amount to anything (except the Pelangio Mines board, Eric Sprott, Franco Nevada and Gerald Panneton).  Today, 10+ years later, Detour Gold is a $3 billion market cap public company, perhaps one of Canadas largest gold mines.  The lesson: "When you think differently or ahead of your time, expect to be all alone for a long while."March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 61. 61 People Property Price Promotion Plan Persistence Patience  Winston Churchill: “If you have ten thousand regulations you destroy all respect for the law.”March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 62. 62 People Property Price Promotion Plan Persistence Patience  Celebrate Our Outstanding Jedi  A Very Incomplete List: Ray Goldie, Graham Farquason, Murray Pezim, Chuck Fipke, Ron Thiessen, Bob Dickinson, Gerald Panneton, Bob Schaefer, Dick Whittington, Andre Gaumond, Ingrid Hibbard, Bob Wares, Erin Chutter, Ewan Downie, Jim Gill, Charles Beaudry, Alex Stewart, Robert Cudney, Laurie Curtis, Stephen Stewart, Fred Archibald, Rob McEwen, Sean Cleary, Jean Rainville, Edward Yu, Mark Monaghan, Abraham Drost, Jim Rogers, Lawrence Page, Roger Scammel, John Cullen, Rene Galipeau, Frank Smeenk, Tom Larsen, Tom Meredith, Frank Callaghan, Scott Bending, Mari-Ann Green, Natasha Blackburn, Alex MacDonald, Stan Bharti, Shawn Wallace, Jim Watt, Joe Conway, Pierre Lebel, Dennis Milburn, Nicholas Colin, John Kearney, Judy Baker, Michael Judson, Guy Hebert, Michel Bouchard, Hugh Morris, Jacques Perron, Pierre Gauthier, Emma Drapell, Gary Pelangio, and all the people in this roomMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 63. 63 What Can the Junior Mining Industry Do?  Celebrate Industry Successes; it’s well-deserved!  Honour our mining Jedi  Heroic successes not well-known outside the industry  Disasters like Bre-Ex are well-known  Advocate why investment in Junior Mining is important; because it is!  Ensure Governments understand the problems of raising capital and the consequences; they need votes every once in a while!  Should we foster flow-through style deductions for hard dollar expenses? i.e. “20% Hard Movement”  Demonstrate value to the investment community; they are greedy!  Attract international capital; they get it!  Insist on regulatory simplification; it’s way out of control!March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 64. 64 What Can the Junior Mining Industry Do? Discredit Lies of Naysayers  Illegitimi non carborundum  Discredit the unfounded rhetoric of Naysayers  It is loud and powerful, threatening Junior Mining Survival  It spreads negativity about Juniors and with no remorse  Where do cowardly naysayers hide?  Canadian banks (not all) and other large financial institutions  They are among senior executives and decision-makers  Investment funds, mutual funds and portfolio managers (not all)  Some executives of large mining companies! They roam among us. They are “inside the tent”  How can the industry discredit rhetoric of naysayers?  The Junior Mining Industry needs a public debate on its survival  Discredit negativity publicly with well-researched facts and denounce unfounded prejudice  Don’t give your business to organizations that hide the naysayersMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 65. 65 Capital Markets Strategies  At Capital Markets Strategies my colleague, Emma Drapell, and I inspire our clients  to change,  to think differently,  to create,  to make a mine where just before there was  … absolutely nothing.March 6, 2013 Think Differently - Weathering the Storm - PDAC 2013
  • 66. THANK YOU"Would you tell me, please, which way I ought to go from here?"
asked Alice. "That dependsa good deal on where you want to get to," said the Cat. “I don’t know where I want to go,”said Alice. “Then, it doesn’t matter which road you take,” said the Cat. Weathering the Storm “Think Differently” PDAC 2013 Jean-Pierre Colin Capital Markets Strategies JPColin@Sympatico.Ca Mobile: 416-573-4300
  • 67. 67 Jean-Pierre Colin DCS, LL.L., MBA – Mining Executive Jean-Pierre Colin is a Mining Executive and provides corporate strategy consulting services to boards and shareholders of public companies and serves on audit committees, corporate governance committees and compensation committees. He is a Director of Premier Gold Mines Limited (TSX: PG), Director of Xmet Inc. (TSXV: XME) and Director of Global Cobalt Corporation (TSXV: PVS). For 30 years, Mr. Colin was an investment banker responsible for corporate finance and M&A from 1980 to 2010, formerly Director and Head of Corporate Finance at Octagon Capital Corporation, an investment banker with Desjardins Securities Inc., Executive Vice-President of Deacon Capital Corporation (now Dundee Capital), and Senior Vice President of Richardson Greenshields of Canada Limited (now RBC). Mr. Colin was also the founder of JP Colin Securities Inc., a securities dealer focused on corporate finance services to public mining companies. He is the former Faculty of Arts Co-Chair of the Waterloo Advisory Council of the University of Waterloo, former founder and President of Caratax Management Ltd., the manager of Canada’s first diamond exploration public flow-through share limited partnerships, a founder of NIM Management, the manager of over $730 million of flow through funds, a co-founder of Detour Gold Corporation, and a former director of numerous other successful public mining companies in Canada including Wolfden Resources Inc., Pelangio Mines Inc., and Virginia Gold Mines Inc. He is a Member of the Bar of the Province of Quebec and holds a Master of Business Administration from the University of Western Ontario, a Civil Law Degree from the University of Ottawa and a Certificate in Comparative Law from the University of ManitobaMarch 6, 2013 Think Differently - Weathering the Storm - PDAC 2013