A Comment -- General Comments From an Expert (A Commentary)

Has been pretty much his least favourite major mining stock in Canada. It really hasn't made a lot of money for investors over the years. Have good assets, but haven't developed them well. Not managed all that well.

Thinks the Falconbridge take over has made a whole new better company and doesn't think the market is recognizing it yet.

A little piece has come into play in the last 6 months. There has been overcapacity on the smelting side for the last couple of years, so you bought actual mines i.e. the concentrate out of the ground. Now the concentrate has gone from $0.02 a pound to over $0.18. Extremely inexpensive on the mining side.

Thunder Energy (THY-T), Mustang Resources (MUS.A-T & MUS.B-T) and Forte Resources (FRZ-T) are merging to form a trust. These 3 together will make a pretty decent trust. Down at these levels you'll probably make a little bit of money from here.

The big question here is whether it will be sold or not. Thinks that it is pretty much off the table now. Likes the base metal sector.

The Pembina area is a very expensive play right now. Not the same kind of value, matrix story is was 2 1/2 years ago. They're a very good operator and should do well with their Pembina play but he is looking for significantly undervalued stocks.

A little worried about the metals market in general. Heading into a seasonally weak period. If global growth slows down, demand for all metals is going to come down.

Finally working out its problems with Falconbridge (FL-T) and starting to realize some value. There was a fly in the ointment with the US hedge fund interfering, but feels there is no concern. Would prefer other areas.

Has a good management team. The assets they were given were high decline gas properties. Have been able to keep production relatively flat, but expectations on future production is not very positive. He's been lightening up his positions.

Teaming up with StarPoint Energy Trust (SPN.UN-T). This is a good deal for them. They have never been a Top Pick of his.

Problem with commodities and the materials sector is that we are very likely this year to see US interest rates continue to go up which can choke off the US economy. If the US economy slows down, we are likely to see the worldwide economy slow down. Europe is in bad shape and if we see both Europe and the US both slow down, where is the demand for more raw materials going to come from? China? China exports most of their stuff to the United States. He’s bearish on commodities.

In the short term, we are in a bear trend. Long term trend is positive for gold.

There was a recent breakout of a gap. Just beginning at the bottom of the weekly cycle. Money flow has turned positive and it's trying to improve its relative outperformance. Now into a breakaway gap.

Merging with Starpoint Energy Trust (SPN.UN-T). A positive for APF unitholders. Starpoint management has an excellent track record. A lot of its production is early stage which generally creates higher risks, and acquiring APF diversified their asset base for a more stable base. Longer reserve life. Better payout ratio. To play this, Buy APF rather than Starpoint.

Very technically competent management. Recently announced a proposed acquisition of Resolute Energy (RSE-T) basically increasing their production from 10,000 barrels a day to 18,000. This has also diversified their asset base with a much broader drilling program.