RE: The Roulston EffectThanks for the clarification.
I am not sure what you mean by "mining by Bay Street". But I owned another Hochschild just as they started production in MNEAF. The stock eventually got the attention of Rob McKwen and took off. It got as high as $2.50 and has now pulled back to $1.65. The story is very similar. Building a mine on limited reserves and then adding to reserves. The drilling program at San Jose (in Argentina) about doubles reserves every year. Production has started small and is now ramping up with additional reserves. This MO is similar at Moris. HSE had dozens of projects and companies to choose from in Mexico. The fact they chose EXMIN and have also chosen to finance EXMIN's 30% speaks volumes. I really believe when they saw McKwen come in to MNEAF at $.30 and make a killing off all their work it opened Hochschild's eyes. Of course, having McKwen own 30% has helped, as well. Anyway I really like the current EXM business plan. They now have a partner in their back pocket who will step in and develop projects. The downside, of course, is that it may curtail new JV deals. Karl now has no reason to JV on Horcon or Reyes de Oro until a couple rounds of drilling are completed. (These are their top two 100% owned projects). A typical 70/30 or even 60/40 deal with a third party would probably not leave room for HSE to participate. I think that any new JV deals will either be with new quality partners, or bottom end projects with other juniors. Also Karl picked up the "Street Claims" in Canada early this year. This is a 43-101 project, so someone could do an IPO with that claim but use the proceeds to drill an EXM project in Mexico. I expect to see this deal soon.