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

A pretty good story. Very solid management. Held back a bit by pipe problems (can't get the gas out of the ground) and processing problems. Feels it has room to move up.

Expects more consolidations and mergers in the mining sectors.

Has it on his list for following. Last fall their output was relatively flat at 78 barrels a day. Has been some improvement recently and have announced a deal with Impact and should be up over 10,000 barrels daily. This is a level where they could become an income trust. This factor is probably priced in now.

Will probably be acquired in the next year or two. Nice dividend. At an attractive price.

Have some questions about management. Has enough cash flow to meet its distribution needs, but they are not growing their production.

A number of very good assets, but were lumped together as a conglomerate which gave a discount to its valuation. Now restructuring which should give a valuation bump. Should generate good cash flows.

Very good company and very well run. Have been having excellent success. Still relatively inexpensive. A lot of these are going to become royalty trusts over the next 12/18 months.

A smaller trust. Has a 2-sector perform recommendation on this trust. One concern is that on developement capital expenditures one component comes from bank debt. High payout ratio of 231% versus an average of 150%.

A chicken way to play the base metal market. Has been waiting for a pull back which seems to be happening now. Feels there's a floor of near $20 and can't see it going much below that. Incredibly cheap. If the transaction goes through with the Chinese government, can see it go to the $24/25 level.

Quite a bit of debate on what can be done with this stock. Takeover bid might not be much more than the current price.

In an extended secular upswing for metals pricing because of 1) the surge in demand and 2) because of the uptick in global production rates. But the big moves in the metal prices are now done which takes a way the froth and excitement. Not enamoured with Noranda's assets.

A "wait and see" situation. Not very expensive. Buyers are not ready to pay high multiples. Not the lowest cost producer.

(A Top Pick Oct 27/04. Up 10%.) May sell their holdings. Will vote against the merger with Coors.

His least favourite mining stock in Canada. Always had good assets, but management has never realized the potential. Brascan has put the company up for sale, but no one has been interested.

Prefers the underlying operating company Falconbridge, but this will do fine.