Hi Rico, the lesson is of a political nature - You are correct, analysts call for $10 plus - However, according to an one analysis I've read by RBC Capital Markets, this is a long-term target (4 - 12 months) with an inferred short-term low.

One section of the report reads: "... An Attractive Takeover Target. "...But not until Political Risk is reduced. We do not expect established producers to move on ARU in the next few quarters, at least until after the Ecuadorian government has tabled it's new mining law (mid-year), established new royalty rates for non-renewable resources (shortly?), and clarified (hopefully killed) plans for a windfall profit tax. Comfort levels may need to wait until after the new Constitution is tabled (late this year?)."

BTW the target is $11 based on 15MMoz using an AMC/oz of $100/oz. Of note, said analysts suspect that further exploration may prove resource from 13.7M to as much as 20M ounces.

ARU's valuation is time and politically sensitive due to uncertainty. Kodiak's, on the other hand, is moreso qualitative with respect to proven resource and economic viability. We have the added advantage of being in Canada, which although is not reflected in the SP now, will facilitate KXL SP to trade at fair market value once/if the resource is proven further.

Although the insider selling may affect the share price, unless insiders have sold most of their shares I personally wouldn't worry... these people have been in ARU since the ground up, and deserve to take profits just like their shareholders.

On another note, as a KXL shareholder, I'm very thankful the golden mile is in Canada.