First Asset Morningstar Emerging Markets Composite T.EXM.A

The Roulston Effect

[mrmrre]

Posts on this board have indcated that Roulston has upgraded EXM to a buy. I have not confirmed this and have not seen the reports. I do know in talking to Karl that he has been talking with LR for some time and had hoped to get more coverage. A Roulston buy is much more significant than a Casey Buy or a Taylor Buy. LR is on of the few analysts that does not require compensation for coverage. Most of the gold stock analysts only cover stocks where they were allocated private placement shares, warrants and/or other compensation. Some disclose their positions, most do not. Karl has a background working on both sides of the market. He has a very bad taste in his mouth for the way the game is played. AND HE REFUSES TO PLAY. This is why EXM gets so little respect. It may not be the right attitude. There is nothing wrong with a little "hype from your friends" when financings are a way of life. Still, Karl is steadfast and intent on growing Exmin the "his way". Karl's way is to find excellent properties, strong JV partners and work towards his TSX and Amex listings. With production at Moris this year, analysts at firms like BMO, Scotia and TD will soon take notice. These are the bankers for GRS and Ocampo is right next door to Moris. Also, analysts covering partner Hochschild will have to take a look. Because the stock has never been over-hyped, the story will play much better with the big boys. Be patient and buy the dips.

[piece-of-eight]

"I have not confirmed this and have not seen the reports." Hi, The upgrade game in the July 20th report. You may have seen my previous messages re. Roulston on this board. I finally got my letter and indeed, he moved his rating to what he calls a "2A." Previously, he has had the company at other lower rankings, and if I'm not mistaken, at one point when the shares

[mrmrre]

Thanks 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

[bryancj]

Good summary. Can you explain the canadian claims? Thanks The model of production first followed by expansion of reserves is a pretty good model and gives investors some downside protection (near term cashflow) that pure explorations company dont. AUN and ADA are following a similar plan as a result of high metal prices. The only thing with this is investors need patiences as analysts find it

[mrmrre]

The Street Claims in Canada are not significant in themselves. They do have a 43-101 "compliant report". This is needed for listing on the TSE-Venture. This means that an IPO can be done by a company that options the Street Claims and say the Batopilas properties from EXMIN. The Canadian claims are included only to qualify for the listing and do the IPO. The Batopilas project is where

[bryancj]

See eReseach blog

[bryancj]

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