I was hoping to have been cashed out before now. The main problem that we are facing is an extremely poor macro environment. I'm following several juniors and in just about every case the shareholders are blaming management. I'm just saying that we are not alone.

I like the following article.

http://www.theaureport.com/pub/na/greg-mccoach-says-keep-the-best-and-dump-the-rest

While the article is mostly talking about gold stocks, I think the following part applies to us as well. Especially note his comments about the best Juniors are the ones with cash in the bank. We have a double win in that scenario - not only do we have cash in the bank but we have Teck paying for us.

TGR: You wrote on Sept. 20, 2013 that you've lost confidence in "a recovery this fall in our overall junior mining stock market." If you are right, doesn't this mean that many juniors won't survive? And if this occurs, will it make the survivors stronger?

GM: Absolutely. This is an unfortunate chain of events, but in many regards it needed to happen. There were just too many junior mining companies. There are only so many talented teams of professionals in the industry that know how to make the discoveries that can be developed into producing mines. When you look at the monies that have been raised in this sector in the last 5–10 years, we have very little to show for it. All the low hanging fruit has already been discovered.

"Realign portfolios to the highest quality and build positions in companies that can make up for a lot of lost ground when the market recovers."

So this "wipeout," as I'm referring to it, has been very difficult on investors, people employed by mining companies and newsletter writers like myself. I was hoping we would have a recovery this fall. The early signs in July and August seemed to indicate one because the strongest companies started to move and in many cases doubled from their lows in late June, early July. That is usually a sign that things are going to float again, but it all fell apart in September.

TGR: You have recommended that investors reduce their portfolios "to just a few of the highest quality stocks as we await the recovery." What are the criteria that determine the highest quality stocks?

GM: Companies with plenty of cash on hand that don't need to raise money right now. It is almost impossible to raise money in this sector at this juncture. Look for companies that are producing from high-grade projects with low costs, companies that will make money even if gold and silver go down further from current levels.

Even with companies like these, there is always something making things more difficult. There are a lot of great companies I like in Mexico, where the politicians are trying to change the laws to charge more taxes. Politicians have an insatiable appetite for other people's money. It will affect companies in Mexico with low-grade projects to the point it may force them out of business.

TGR: When do you think the market will turn around?

GM: Things are not going to get better at least until 2014, and in the meantime a lot of juniors hanging by their fingernails are going to go out of business. That will solidify the market for the survivors. Maybe that is as it should be. I do believe that monies we've lost in this sector in the last two years can quickly be made up if investors maintain a position, or build positions, during these low times in the highest quality companies. Because when the market does recover, it is going to be a screamer.