M&I 14,511 4,847 16,808 INITIATION REPORT | November 16, …cdn.ceo.ca.s3-us-west-2.amazonaws.com/1dv53p6-ALDE 2018 11 16... · Investments, the third partner and a major shareholder

Research Note Aldebaran Resources Inc.

Our disclosure statements are located at the end of this report.

INITIATION REPORT | November 16, 2018

All figures C$, unless otherwise noted.

A Star Waiting to Shine

Investment Thesis

Aldebaran Resources, the result of a spin-out joint-venture agreement with Regulus

Resources and Sibanye Gold Ltd., is a well-backed early-stage exploration company.

Its flagship asset, the Altar project, offers strong potential as a large resource base, in

addition to the portfolio of promising secondary assets.

Highlights

Recap on Recent Events | Aldebaran Resources (ALDE) started trading on

November 2, after its spin-out from Regulus Resources. Regulus shifted the Rio

Grande copper-gold project (100%-owned) and the Aguas Calientas gold-silver

project to Aldebaran's portfolio as secondary assets, while ALDE's flagship asset,

and focus, will be the Altar copper-gold project in San Juan, Argentina. The

company has entered into a joint-venture option agreement with an indirect

subsidiary of Sibanye Gold Ltd., Stillwater Canada LLC, to acquire a 60% (up to

80%) interest in Peregrine Metals Ltd., which owns the Altar copper-gold project.

Peregrine is a wholly owned subsidiary of Sibanye-Stillwater. The agreement

entails a combination of cash payments, share issuances and staged

expenditures to acquire the mine.

Transaction Summary | Regulus shareholder's received one Aldebaran share for

every three Regulus shares held, which represents a 39.1% ownership of ALDE.

ALDE is responsible for an upfront cash payment of US$15 million to Sibanye-

Stillwater as well as 15.45-million shares for a 19.9% equity interest in ALDE.

Aldebaran is required to spend US$30 million on Altar over five years to earn 60%

ownership of the project, with the opportunity to earn an additional 20% by

incurring US$25 million in additional spending over three years. Aldebaran has

secured financing from Route One who will fund US$30 million (at US$0.96 per

post-consolidated share), which will cover its near-term financing obligations for

down payments and exploration. Route One, as an existing shareholder of

Regulus, receives an additional 9.2% interest, bringing its interest up to 49.5%.

Aldebaran will initiate with 77.6-million shares outstanding, and is currently trading

at $0.55, for a total market cap of $43 million.

Strong Portfolio of Assets | The flagship Altar project is large, with estimated

measured and indicated (M&I) resources of 14.5Blb copper and 5.2Moz gold in its

2018 NI 43-101 technical report. The Rio Grande project, which also completed a

technical report August 2018, is estimated to hold indicated resources of 468.6Mlb

copper, 815Koz gold and 7.3Moz silver.

Valuation & Conclusion

Considering the strong backing that Aldebaran has, in terms of leadership and

financing, and its promising portfolio of assets, we see major potential upside in the

company. We are initiating coverage of Aldebaran Resources with a $1.90 target price

and Speculative Buy recommendation.

David Davidson, Sr. Analyst | 416.360.3462 | [email protected] Jeff Woolley, CFA, Analyst | 416.361.9557 | [email protected]

Gordon Lawson, MBA, Sr. Associate | 416.363.5476 | [email protected]

Rating: Speculative Buy

Initiating Coverage

12-Month Target: C$1.90

Source: FactSet, Company filings, Paradigm Capital Inc.

Company Description: Aldebaran Resources is a spin-out company that originated from Regulus Resources and was founded in the acquisition of a joint-venture agreement with Sibanye-Stillwater for its flagship Altar project. Aldebaran is focused on early0stage exploration assets in the Argentina area and holds other secondary assets such as the Rio Grande and Aguas Calientas project.

Price (C$) $0.55

Ticker ALDE-CA

FYE 31-Dec

Potential ROR (incl. dividend)

Avg 3-month daily vol. (000s) 0

Shares O/S Basic (M) 77.6

FDIM (M)* 77.6

FD (M)** 77.6

Market Cap Basic (C$M) 43

FDIM (M)* 43

FD (M)** 43

* FDIM - Fully Diluted, In-the-Money **FD - Fully Diluted

Project Resources Cu (M lbs) Au (Koz)

CuEq (M

lbs)

Altar Project Results

M&I 14,511 4,847 16,808

Inferred 3,420 1,072 3,890

QDM Project Results Ag (Koz) Au (Koz)

M&I 1,725 387

Inferred 153 14

Rio Grande Project Cu (M lbs) Au (Koz)

Indicated 468.6 815

Inferred 208.4 375

METALS & MINING

mailto:[email protected]



Paradigm Capital Inc. | IIROC/TSX member Page | 2

Research Note

Aldebaran Resources Inc.


Table of Contents Company Overview ........................................................................................................................... 3

Altar Project ....................................................................................................................................... 3

Property Description ...................................................................................................................... 3

Large Resource with Further Potential in Grade and Size ............................................................. 4

Altar Will Be Prioritized as a Core Asset ........................................................................................ 5

Potential in the Secondary Assets ................................................................................................. 5

Valuation ........................................................................................................................................... 6

Conclusion ........................................................................................................................................ 7

APPENDIX I: Investment Risks ......................................................................................................... 9

APPENDIX II: Management ............................................................................................................ 10


Research Note



Company Overview

Aldebaran is an early-stage exploration company with a portfolio of assets in the Argentina area,

including its flagship Altar project, and secondary assets such as the Rio Grande project and the drill-

ready Aguas Calientas project. ALDE is backed by three strong players in the mining industry. The first

is Regulus and its highly regarded management team led by John Black, who have proven to have the

ability to drive large exploration projects forward and create shareholder value (evidenced by their

previous successful monetization of Antares Minerals and the Haquira copper-gold project in 2010,

and their more recent work with their flagship AntaKori project). The second player, holding roughly

20% ownership in Aldebaran, is Sibanye–Stillwater, South Africa's largest gold producer. The material

benefits of the backing have already been proven through the financing agreement with Route One

Investments, the third partner and a major shareholder in Regulus, who has fully backed the $30-

million financing to cover the buy-in and additional future exploration costs, effectively increasing its

ownership to 49.5% post-consolidation (9.2% pre-existing and 40.3% gained from the recent

financing). Figure 1 shows ALDE’s ownership structure.

Altar Project

Property Description

The Altar project a copper-gold-(silver-molybdenum) porphyry deposit located ~10 kilometres from the

Argentina-Chile border and 180 kilometres west of the city of San Juan, in San Juan Province,

Argentina. Altar forms part of a cluster of world-class porphyry copper deposits which includes: Los

Pelambres (Antofagasta Minerals) located 25 kilometres to the south; El Pachon (Glencore) located 28

kilometres to the south; and Los Azules (McEwen Mining) located 50 kilometres to the northeast. The

Altar project consists of several mineralized porphyry centres (QDM, Radio, Altar North, Altar Central,

Altar East) aligned along a 6-kilometre long east-southeast-trending structural corridor. A total of 251

drill holes (113,428 metres) have been completed at the Altar project between 1995 and 2018. The

main Altar deposits are associated with Middle-Late Miocene intermediate composition subvolcanic

porphyries that intrude Early Miocene rhyolitic ignimbrites and fine-grained andesite flows of the

Pachon Formation. Elevated gold, silver and molybdenum values are associated with the copper

mineralization. The QDM deposit, which is located just ~3 kilometres to the northwest of the Altar

system, is hosted by the same andesite volcanic sequence as Altar, though it is primarily gold and

silver mineralization hosted in the Pachon andesite and the intrusive porphyry near the surface with

increasing copper content at depth.

Figure 1: Estimated Ownership Structure of Aldebaran Resources (post-consolidation)

Source: Paradigm Capital Inc., Company filings

Existing REG Shareholders

29.8%

Route One Existing

9.2%New Route One

Issued (Financing)

40.3%

Sibanye Stillwater

19.9%

Maxit Capital (Service Fee)

0.8%


Research Note



Large Resource with Further Potential in Grade and Size

In August 2018, Regulus published its 2018 NI 43-101 resource estimate on the Altar copper-gold

project, and the results were positive: M&I resources were estimated at 2.0Bt, grading 0.32% sulfide

copper and 0.074 g/t gold, representing 14.5Blb copper and 4.8Moz gold, or 16.8Mlb copper

equivalent. Inferred resources were measured at 556Mt, grading 0.28% copper and 0.06 g/t gold,

representing 3.420Mlb sulfide copper and 1,072Koz gold. It is important to note that the 2016/2017 drill

programs did not add significantly to the resource total, but did result in the discovery of the Quebrada

de La Mina (QDM) and Radio Porphyry zones. Drilling at QDM/Radio Porphyry, and at both the Altar

Central and Altar East deposits, led to the discovery of high-grade mineralization, at depth, and

presents an opportunity for further exploration in the areas (see Figure 3 for both resource estimates).

Figure 4 illustrates the location of the QDM discovery and Altar mineralization profiles.

Figure 3: Altar Project Resource (as of July 2018)

Source: Company filings, Paradigm Capital Inc.

Tonnes (M) NSR $/t Sulfide Cu (%) Au (g/t) Arsenic %Sulfide Cu

(M lbs)

Au Ozs x

1000

CuEq (M

lbs)

Measured 995.0 15.90$ 0.34 0.083 0.028 7,458 2,655 8,766

Indicated 1,048.9 14.09$ 0.3 0.065 0.023 7,053 2,192 8,042

M&I 2,043.9 14.97$ 0.322 0.074 0.025 14,511 4,847 16,808

Inferred $4.67 556.0 12.88 0.28 0.06 0.022 3,420 1,072 3,890

Total Material of ore and waste in the Altar Cone: 8,041,551 ktonnes

Mineral Resources at 4.67 NSR Cutoff

Altar Project (100% Basis)

$4.67

Contained Metals

Cut-off Grade

(NSR US$/t)

Resource

Category

Tonnes (M) NSR $/t Au (g/t) Ag Gm/tAu Ozs x

1000

Ag Ozs x

1000

Measured 10.9 27.94$ 0.93 0.083 0.326 1,224

Indicated 2.6 21.24$ 0.72 0.065 0.061 501

M&I 13.5 26.64$ 0.89 0.074 0.387 1,725

Inferred $13.17 603.0 23.80$ 0.73 7.87 14 153

Total Material of ore and waste in the QDM Cone: 39,776 ktonnes

Quebrada de La Mina, Mineral Resources

Resource

Category

Cut-off Grade

(NSR US$/t)

Contained MetalsMineral Resources at 4.67 NSR Cutoff

$13.17

Figure 2: Altar Location & Surrounding Projects

Source: Sibanye-Stillwater


Research Note



Altar Will Be Prioritized as a Core Asset

The Altar project has had a history of different ownership over the last 10 years, but we believe this

may be a significant turning point for the project. Stillwater acquired Altar/Peregrine in 2011 for

US$490 million and completed ~38 kilometres of drilling to further define the resource estimates over

2012–2013, but by 2014 it had refocused its operations on platinum group metals production,

effectively labeling Altar a non-core asset. In 2017, Sibanye acquired Stillwater and further deemed the

Altar project to be non-core to its operations. Similarly, Regulus has expressed that it wants to remain

focused on its flagship project, AntaKori in Peru. With these facts in mind, and noting that while the

companies backing Aldebaran have the ability to drive mining projects forward successfully, the spin-

out will allow the same leadership from Regulus to conduct an aggressive exploration program.

Potential in the Secondary Assets

The Aldebaran portfolio will also include two noteworthy secondary assets. The first is the 100%-

owned Rio Grande copper-gold porphyry project which, based on its August 2018 NI 43-101 technical

report, holds indicated resources of 71.0Mt of ore at 0.3% copper and 0.36 g/t gold, totaling 468.6Mlb

copper and 815Koz gold. Figures 5 & 6 illustrate the mineralization profile of the Rio Grande project

and its location within Argentina. Inferred resources were measured at 41.0Mt of ore; 0.23% copper

and 0.28 g/t gold, totaling 208.4Mlb copper and 375Koz gold. The second is the drill-ready Aguas

Calientas gold-silver project, as well as additional early-stage assets in the Argentine area.

Figure 5: Rio Grande Resource Estimate


Cu (%) Au (g/t) Ag (g/t) Cu (M lbs) Au (K oz) Ag (M oz)

Indicated 71.0 0.3 0.36 3.2 468.6 815 7.3

Inferred 41.0 0.23 0.28 2.8 208.4 375 3.6

Total 112.0 677 1,190 10.90

Contained Metals

Rio Grande Project (100% Basis)

Resource

CategoryTonnes (M)

Grade

Figure 4: Altar Copper-Gold Project Long-Section

Source: Regulus Resources Inc.


Research Note



Valuation

In order to value Aldebaran’s portfolio, we first look at two previous acquisitions to benchmark its

value. The first is the Stillwater acquisition of Altar in October 2011, which was valued at US$490

million, or US$0.035/lb copper equivalent, and we note that multiple drilling programs have been

completed at the deposit since then. The second is First Quantum's (FM-T, $19.50 TP, Buy)

acquisition of Taca Taca in 2014, which is another Argentine copper-gold project in Salta Province,

located just north of San Juan and the Altar project. The acquisition was valued at US$470 million,

roughly US$0.022/lb copper. Using the value-in-the-ground method based on these M&A transactions,

which is often used to roughly value copper development companies, we look at further cases to

estimate the value of the project. Figure 7 provides a compilation of all transactions in the copper

space over the past few decades, which suggests that the typical range for copper developers is

$0.03–$0.06/lb.

Figure 6: Rio Grande Location

Source: Regulus Resources Inc.


Research Note



From the recent NI 43-101 resource studies on the Altar project, we see that the M&I resources are

measured at 14.5Blb of copper and 5.2Moz gold, or 16.7Blb copper equivalent. We expect the project

would be valued somewhere in the range of the two benchmark acquisition values of US$0.02–

US$0.05/lb and use a conservative value of $0.02/lb, resulting in a total asset value of US$335 million.

However, we understand that the main Altar deposit contains arsenic, which could seriously reduce its

value, though the newly discovered QDM deposit and deeper mineralization do not have the same

issues. To account for this, we apply a 75% discount to the value of the Altar project, resulting in a total

value of US$252.1 million, or C$297.5 million, based on our long-term USD/CAD exchange rate of

1.18. Aldebaran can acquire 60% of the project by spending US$30 million, which makes its interest

worth US$121.3 million, or C$143.1 million.

Conclusion

Looking at the company’s current stock price of C$0.55, the market is valuing Aldebaran at $43 million.

The recent acquisition of the Altar project under Aldebaran's portfolio was priced at roughly $0.004/lb

copper equivalent. Both values suggest a disconnect between market value and the asset, and it

should be pointed out that Route One completed the US$30-million placement at US$0.96/share. Altar

is a large resource that has shown the potential for further, higher-grade, discoveries. The deposit,

which has largely been neglected since 2014, will have better strategic focus as a flagship project and

has already secured financial backing for the next three years of exploration. These factors, combined

with the strong portfolio of secondary assets, provide upside for Aldebaran Resources shareholders. In

Figure 7: Copper Acquisitions at Varying Stages of Development and Takeout $/lb in the Ground


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Research Note



In Figure 8, we provide a sensitivity table based on pounds-in-the-ground valuation compared to the

market value of the asset. Based on our valuation, which uses a $0.02/lb copper price, Aldebaran's

60% interest at a 75% discount represents a value of US$121.3 million. We are initiating coverage of

Aldebaran Resources with a $1.90 target price and Speculative Buy recommendation.

Figure 8: Sensitivity Analysis: Altar Project — Altar Asset Value & Target Price

Source: Company filings, Paradigm Capital Inc.

Take out value

($/lb)

Total Asset

Value CuEq

(US$M)

Discount

(75%)

AR 60%

Interest

(US$M)

Value After

Debt Pmt.

(US$30M)

CAD$MTarget Price

(CAD)

0.010 $168 $126.1 $75.6 $45.6 $53.9 $0.72

0.015 $252 $189.1 $113.5 $83.5 $98.5 $1.31

0.02 $336 $252.1 $151.3 $121.3 $143.1 $1.91

0.025 $420 $315.1 $189.1 $159.1 $187.7 $2.50

0.03 $504 $378.2 $226.9 $196.9 $232.4 $3.10

0.035 $588 $441.2 $264.7 $234.7 $277.0 $3.69

*Based on a 1.18 USD/CAD exchange rate,spot prices of Cu price of $2.78/lb, Au price of $1220 as of Nov 9, 2018.

Sensitivity Analyis: Altar Project


Research Note



APPENDIX I: Investment Risks

Exploration & Extraction Risk | Aldebaran holds a portfolio of early-stage development projects

which are currently being drilled and defined. Recent discoveries of arsenic have been found at the

Altar project, which could impact its value to shareholders, though this has been priced into the

valuation. While there has been an NI 43-101 resource estimate on the Altar project and Rio Grande,

further drilling and evaluation needs to be undertaken to solidify the resource estimates. Extraction risk

will also need to be addressed through later-stage development studies.

Geopolitical, Regulatory & Sovereign Risk | Argentina carries a high degree of country risk as a

developing country. The 2015 Presidential election in Argentina resulted in a mining friendly agenda,

which suggests a range of positive implications for the mining industry. Highlights include eliminating a

5% federal retention tax on mining exports in February 2016 and implementing a harmonized sales tax

and legislation setting a 3% ceiling on royalties that mining companies pay to provinces. The

Presidential mandate has also promised to double investment in the mining sector to US$25 billion by

2025. Finally, the corporate tax rate has been decreased to 30% until 2020, after which it will decline

further to 25%. Amidst these positive indicators, the state of Argentina's economy has taken a negative

turn again, and faces turmoil despite greatly reducing its corruption with the governmental change.

Over 2018, the central bank raised interest rates multiple times to fight inflation, reaching a record-

setting 40% in May. It will be important to watch these factors closely over the coming months as the

country battles to regain its stability. That said, Aldebaran has an early-stage exploration portfolio,

which should give the country time to stabilize before any later-stage development production should

begin.

Land Access Risk | The Altar project has been in early-stage development for a number of years,

prior to Aldebaran's acquisition of the asset. As a result, there have been two gravel roads previously

developed to access the site but the property does not have a paved highway, rail, or air access.

There is risk associated with these conditions but the company has an opportunity to upgrade existing

unpaved public roads and construct new roads to access the deposit to mitigate such risk.

Technical Risk | Aldebaran has conducted a number of exploration activities and risk studies at Altar

and Rio Grande, having consulting experts in the field to assess the risk profiles of each. The

development, construction and production process holds a variety of technical and operational risks

that investors need to be aware of. The risk is slightly offset by the technical expertise of the

management team, the board, and strategic investors in the company and projects.


Research Note



APPENDIX II: Management

John E. Black — CEO | John Black is an economic geologist with more than 30 years of exploration

experience around the world, having worked on projects in The Americas, Central Asia, the SW

Pacific, and Eastern Europe/Western Asia. He first worked in South America in 1993 and has been

actively involved in mineral exploration throughout the continent for several companies since that time.

John earned a B.Sc. in Geology in 1983 and an M.S. in Geology — Ore Deposits Exploration in 1988

— both from the Stanford University. John was the founding President of Antares Minerals Inc. and

was instrumental in acquiring the Haquira project in Peru for Antares. He was the key driver in

negotiating the sale of Antares to First Quantum Minerals for $650 million. John’s early career included

work with Bear Creek Mining Company, Kennecott Minerals Corporation, Rio Tinto and Western

Mining Corp., and he currently serves as a director or technical advisor for several private and public

exploration companies

Mark Wayne — CFO | Mark Wayne is a co-founder, director and the CFO of Regulus Resources, and

prior to that, Antares Minerals Inc. Mr. Wayne has a law degree and is a CFA. He practiced law from

1980 to 1987, specializing in corporate and securities law. In 1987, he founded, and became President

of, AltaFund Investment Corp., a public investment company that raised $110 million. In 1991,

AltaFund joined the Altamira group of mutual funds and He subsequently served as Vice President,

Western Canada, for Altamira until November 1998. Mr. Wayne has raised money for, and served as a

director or officer of, a number of public and private companies over the years in the mining, oil and

gas and technology sectors. Mr. Wayne is based in Calgary, Alberta and is also a vice president of IA

Securities Inc., a full service investment dealer.

Kevin B. Heather — Chief Geological Officer | Dr. Kevin B. Heather is an economic geologist who

has more than 30 years of experience in North and South America. He received a BSc. (honours)

degree in geology from the University of British Columbia (Vancouver, Canada), a MSc. in Geology

from Queen’s University (Kingston, Canada) and a PhD From the University of Keele (Keele, England)

in 2001. Kevin was a founding member of both Antares Minerals and Regulus Resources and directed

exploration that led to the discovery of the high-grade Haquira East deposit and was involved in the

overall development of the Haquira copper-molybdenum—gold porphyry project in Southern Peru,

which sold to First Quantum Minerals in December 2010 for $650 million. In his most recent role at

Regulus, Dr. Heather has been responsible at the corporate level for overseeing the technical aspects

of the company’s exploration activities and building a technical committee from his numerous,

internationally recognized contracts. His focus is on bringing strong geological, metallurgical and

engineering professionals onto the committee to help advance Regulus’ projects.


Research Note



DISCLAIMER SECTION

Company Ticker Disclosures

Aldebaran Resources Inc. ALDE-T 3

First Quantum Minerals Ltd. FM-T 3

Note: Please refer to above table for applicable disclosure numbers.

1. The analyst has an ownership position in the subject company.

2. Paradigm Capital Inc. has assumed an underwriting liability for, and/or provided financial advice for consideration to the subject companies during the past 12 months.

3. Paradigm Capital Inc. expects to receive or intends to seek compensation for investment banking services from the subject companies in the next 3 months.

4. Paradigm Capital Inc. has greater than a 1% ownership position in the subject company.

5. The analyst has a family relationship with an Officer/Director of subject company.

Paradigm’s disclosure policies and research distribution procedures can be found on our website at www.paradigmcap.com. Paradigm Capital Inc. research is available on Bloomberg, CapitalIQ, FactSet and Thomson Reuters or at www.paradigmcap.com. Issued by Paradigm Capital Inc.

Research Rating System

Paradigm Capital Inc. uses the following rating recommendation guidelines in its research:

About Paradigm Capital Inc.

Paradigm Capital Inc. (PCI) is a research-driven, independent, institutional equity investment dealer focused on sectors and companies that have attractive long-term secular growth prospects. PCI’s research is available on our website at www.paradigmcap.com. Please speak to your Sales or Trading Representative if you require access to the website.

The analyst (and associate) certify that the views expressed in this report accurately reflect their personal views about the subject securities or issuers. No part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendations expressed in this research report.

Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is determined by revenues generated directly or indirectly from various departments including Investment Banking, based on a system that includes the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and investment guidance and client feedback. Analysts are not directly compensated for specific Investment Banking transactions.

The opinions, estimates and projections contained herein are those of PCI as of the date hereof and are subject to change without notice. PCI makes every effort to ensure that the contents herein have been compiled or derived from sources believed reliable and contain information and opinions, which are accurate and complete. However, PCI makes no representation or warranty, express or implied, in respect thereof, and takes no responsibility for any errors and omissions that may be contained herein and accepts no liability whatsoever for any loss arising from any use of or reliance on this research report or its contents. Information may be available to PCI, which is not reflected herein. This research report is not to be construed as an offer to sell or solicitation for or an offer to buy any securities. PCI, its affiliates and/or their respective officers, directors or employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent. PCI may act as financial advisor and/or underwriter for certain of the corporations mentioned herein and may receive remuneration for same. PCI is a member of The Toronto Stock Exchange, The TSX Venture Exchange and The Investment Industry Regulatory Organization of Canada (IIROC).

Any products or services mentioned on this website are made available only in accordance with local law (including applicable securities laws) and only where they may be lawfully offered for sale. PCI will not open accounts except in jurisdictions in which it is registered.

To U.S. Residents: This report was prepared by PCI which is not subject to U.S. rules with regard to the preparation of research reports and the independence of analysts. PCI U.S. , affiliate of PCI, accepts responsibility for the contents herein, subject to the terms as set out above. Any U.S. person wishing to effect transactions in any security discussed herein should do so through PCI U.S.

Number of Percentage

Recommendation Companies Breakdown

Buy 92 61% Buy – Expected returns of 20% or more over 12 months.

Spec. Buy 35 23% Speculative Buy - Expected returns of 20% or more over the next 12 months on high-risk development

or pre-revenue companies, such as junior mining and other early stage companies.

Hold 13 9% Hold - Expected returns of less than +/- 20% over the next 12 months.

Sell* 7 5% Sell - Expected returns of -20% or more over the next 12 months.

Total 147

*Includes companies with a "Tender" recommendation

https://www.paradigmcap.com/docs/default-source/research-disclosures/research_disclosures_201811.pdf

http://www.paradigmcap.com/

http://www.paradigmcap.com/


Research Note



RESEARCH

Infrastructure / Travel & Leisure

Corey Hammill (Head of Research) 416.361.0754

Technology

Kevin Krishnaratne, CFA 416.361.6054

Healthcare

Rahul Sarugaser, PhD 416.216.3564

Energy Services

Jason Tucker 403.513.1031

Oil & Gas

Ken Lin, CFA 403.513.1042

Metals, Mining & Agriculture

David Davidson 416.360.3462

Jeff Woolley, CFA 416.361.9557

Gold and Precious Metals

Don MacLean 416.360.3459

Don Blyth 416.360.3461

Lauren McConnell 416.366.7776

Industrial Products

Marvin Wolff, CFA 416.361.3376

Quantitative / Technical Analysis

Kevin Archibald, CMT 416.368.6150

Research Associates

Michael Freeman 416.361.9080

Gordon Lawson 416.363.5476

Alex Ricci 416.361.6056

SALES

John Bellamy (Head of Sales) 416.361.6032

David Roland 416.216.6844

Kevin Conibear 416.361.1895

Naomi Ebata, CFA 416.364.9764

Wolfgang Rosner 514.447.8950

TRADING

Peter Dunlop 416.368.6557

Matthew Green 416.364.7988

Blair McIntosh 416.360.3579

Conor O’Brien 416.368.8353

OFFICES

Toronto

95 Wellington Street West, Suite 2101, PO Box 55

Toronto, Ontario M5J 2N7

General Line 416.361.9892

Fax Line 416.361.6050

Calgary

110-9th Avenue SW

Suite 500

Calgary, Alberta T2P 0T1

General Line 403.513.1025

Fax (Research) 403.265.8721

STOCK RATING SYSTEM

Buy: Expected returns of 20% or more over 12 months.

Speculative Buy: Expected returns of 20% or more over the next 12 months on high-risk development or pre-revenue companies, such as junior mining and other early stage companies.

Hold: Expected returns of less than 20% over the next 12 months.

Sell: Expected returns of -20% or more over the next 12 months. .

Documents

M&I 14,511 4,847 16,808 INITIATION REPORT | November 16, …cdn.ceo.ca.s3-us-west-2.amazonaws.com/1dv53p6-ALDE 2018 11 16... · Investments, the third partner and a major shareholder