Lydian International Limited (LYD-T)

They have gold development projects in Armenia. It will be an ultra low cost gold producer. It is a development-only company, so he does not own it.

He was early with this one. He learned about political risks. They have been effectively solved, but he would wait for them to put a financing package together. He wants to see the lenders comfortable before he would put money back in.

(Top Pick Mar 6/13, Down 40.11%) Sold when they government changed the whole scenario for them. Wait until they get their permit.

(Top Pick Mar 5/13, Down 31.71%) The risk is political risk. That political risk should soon be behind us and there is no technical risk. He is willing to sit and wait.

(A Top Pick March 5/13. Down 47.73%.)

(Top Pick Mar 5/13, 2.44%) Still likes it. There is an overhang because people recognize they have to raise equity to build the mine. He is still buying it.

(A Top Pick March 7/12. Down 32.95%.) Big project in Armenia. 3+ million ounce deposit, about a gram. It’s going to be very cheap to mine. There is feasibility on it that shows it worth over $1 billion at a 5% discount rate and you can buy the company for $200 million. Thinks they are a takeout candidate.

(A Top Pick March 6/12. Down 37.45%.) Located in Armenia. Story gets better and better and the stock gets worse and worse. One of the highest quality undeveloped deposits globally. They need to finance the thing into production now. Believes the company will probably be taken over in the next 18 months. If not, he feels the stock will go up.

Can’t understand why this one is not recognized by the market. It’s an easy oxidized deposit and sitting on a hill. Armenia is very friendly towards this development, which will go ahead. Just put out a feasibility study that discounted 5% at $1500 gold is worth over $1 billion. Expect that a mid tier company should be looking to buy this. The big advantage is that it is not a huge CapX. Hope to be in production by 2014.