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To: ms.smartest.person who wrote (901)	3/31/2006 9:22:47 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

No End in Sight to Commodities Bull Cycle By Jon A. Nones 30 Mar 2006 at 11:19 PM St. LOUIS (ResourceInvestor.com) -- At the third annual American Stock Exchange Precious & Base Metals Investor Conference in New York today, Van Eck Global analyst Charl Malan gave a broad overview of the metals market. His synopsis: many more years to come in the commodities bull cycle. Malan’s presentation focused on the supply and demand fundamentals of precious and base metals, and began by noting a lack of major discoveries in recent years as compared to the 1980s - but with increased exploration spending. Neal L. Wolkoff, Chairman and CEO of AMEX cut the proverbial ribbon at the conference by saying, “It a very good market now in metals and business expansion of the like.” Indeed with base and precious metals all hitting record highs today, the timing couldn’t be much better. So without further ado.... Supply Malan wasted no time with making forecasts for the future – all bullish. “We believe that is very unlikely that the current commodities cycle will come to an abrupt end due to a large influx of new supply. And even more so, if we consider the time lag associated between discovering a new deposit and the time before the metal comes to the market,” Malan began. This almost mimics the point raised by veteran resource analyst Donald Coxe at the BMO Nesbitt Burns Global Resources Conference last month. Coxe said it now takes about eight to ten years to bring a mine online because of stricter regulations when it used to take only five years. “We’re not going to have the knee jerk” on commodity prices like we’ve had before, Coxe said. According to Malan, current inventories remain low at about an average of four weeks of global demand. And this tightness in the commodities market can be seen in copper especially, he said. Copper inventories in 2001 average roughly 5.8 weeks, but in 2005, it was predicted to average just below two weeks of supply. “Van Eck remains confident that the tightness in the market will remain not just because of a lack of below ground supplies but also due to the lack above ground inventories,” he said. cont'd resourceinvestor.com

To: ms.smartest.person who wrote (901)	4/3/2006 8:22:34 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition April 3, 2006 OILEXCO INC. (T-OIL) $4.65 -0.05 INTL. FRONTIER RES. (V-IFR) $1.86 +0.16 If there is one market commentator that’s always entertaining and enlightening, it’s Josef Schachter. On a day like today when oil is up big time, because of further concerns about just what the Iranian Navy can accomplish—checking out those videos of their torpedoes, reminds us that they could in no time, shut down all that tanker traffic in the Gulf of Hormuz, has oil up and running today. It’s interesting that just last week Schachter had written a bullish report suggesting the correction was over, enjoy the next bull market up-leg and suggested that his next target was 400 on the S&P/TSX Energy Index. He wrote that the “TSX Energy Index corrected from a high of 371 in early February to 317 later that month and now has started the next up-leg in this ongoing bull market. Into the summer driving and hurricane season, we expect to see a vibrant market take this Index to new all times highs—this time to the 400 level. If you are not fully invested in your favorite names, do so on any down days ASAP.” He is not concerned at all about natural gas either, which has gone through quite a correction over the last few months as there was simply no winter over much of North America. He writes, “Natural gas prices are now lifting as concerns about this summer’s hurricane season in the Gulf of Mexico is beginning to mount. Some weather forecasters have noted that the temperature of the water in the northern Gulf is warmer than last year and warm water is a key factor in creating hurricanes. It is conceivable that this warm water could make for an even worse hurricane season this year, as even small deviations in temperature can cause significant weather changes offshore. If this occurs, production in the Gulf could get shutin faster and for longer than last year which would drive prices of both commodities materially higher.” He also shows some charts showing some significant oil and gas companies and the tough time they are having on the production treadmill—to see the drops in production from companies such as Petro Canada, Devon Energy and Anadarko Petroleum, tells you that it’s not that easy anymore to replace depleting resources. As far as the all important stock picks, he once again talks about Oilexco (OIL) and his target price is $6.44, but you can see he is able to move that upward. Vero Energy (VRO) he has big hopes for giving it a target of $11.52. Off his watch is ENDEV Energy (ENE) as he writes, “we do not see material upside from these levels over the coming year. In 2005, ENE had $40 million in capital expenditures, drilled 136 gross natural wells yet had a decrease in Q4/05 production of –19%”. Ouch! He also features this month, one stock that we have been writing about the last while and that’s International Frontier Resources (IFR). At the bottom of the newsletter (and everyone should take a look at it) he writes as a bottom line, “IFR is currently drilling 2 wells in the NWT and in 2006/07, plan to drill 2-3 exploration wells in the UK North Sea exposing shareholders to ~$14 in NAV upside. Due to the uncertainty surrounding gas facilities in the NWT and the long time frames until production can be brought on, our 12-month stock price target of $3.00 assumes modest success in either the NWT or UK N. Sea”….For those with a little greed...and we do have some of that! GOLD: $589.30 +7.60 BRAZMIN CORP. (T-BZM) $ 2.45 n/c Canaccord’s mining analyst Graeme Currie tells us, “I’ve never seen a time before where we basically had all the mining commodities going the same way at the same time”. We’ve had, he suggests, “bull and bear markets before, but we’ve never seen all metals participating in the same direction and this time they are, and they are all to the upside”. He also points out we have yet to see any sign of a correction being imminent, but in today’s Canaccord’s Junior Mining Weekly, he writes, “valuation levels are now beginning to reach in the stratosphere on a number of companies. For example, we would reference our in situ gold spreadsheet at the end of this report. The 44 companies in the list are well past the discovery stage with many now entering or having already entered into production...The average in situ value for the week just ended is US$63.62. This represents a 100% increase in our in situ value since early November”. We have speculated a couple of times in the past just when we get the usual spring correction you see in the mining sector, but as Currie points out, “it’s not just the volume of stocks going up, but also the value heading towards new records, seemingly almost every day”. Why worry about a correction? Shouldn’t one just go with the trend? With worried voice, we ask Currie if he could only buy one stock today, what would it be? BrazMin is his answer and the Brazilian-based explorer has four significant projects and some analysts suggest as many as three of them might inevitably be commercial, but most importantly, the monsoon season is over in the Brazilian jungle and they will be at work shortly and there should be a stream of news coming out. Meanwhile, one mining guy today points out that there are several “junior” mining companies that sport billion dollar market caps, despite no production, no cash flow, etc. Disclosures: Oilexco Inc: Canaccord Capital covers this stock and has a Buy rating on it. (Buy: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months.) BrazMin Corp: Canaccord Capital covers this stock and has a Speculative Buy rating on it. (Speculative buy: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments in the stock may result in material loss.) Canaccord has recently led a financing for Oilexco Inc. and BrazMin Corp. If you would like to receive a copy of Josef Schachter’s writing for Maison Placements Canada and his monthly comment, email Sandra Wicks at sandra_wicks@canaccord.com and if you also like to receive Graeme Currie’s Jr. Mining Weekly, courtesy of Canaccord, also email Sandra and she will send it off to you.