Rick Rule Newmarket Gold Inc NMI-T COMMENT May 12, 2016

This has done extremely well. There is a wonderful promotional team behind it. They did a great opportunistic buy of an Australian gold asset. High quality people. Their strategy is basically a rollup strategy, and it is all about implementation.

The Australian dollar drove their costs down and if you think it stays there and gold stays strong then you will do very well. Their costs are relatively high.

He is buying this, but not big. Waiting for pullbacks, because it is up about 60% year to date. They have some marginal assets. Cosmo is not making a lot of money, and Stawell is making a little bit. Really it is the Fosterville that is generating the lions share of the free cash flow. It was under capitalized for a while, but now they are bringing capital in to improve the mine lives and the head grades.

Supposed to be merging with Kirkland Lake (KLG-T), but a new bid has emerged which would kibosh the takeover. Supposedly Goldfields (GV-A) and Silver Standard (SSO-T) have come in over top with their own bid. If true, this company gets a going away present of $55 million break fee.