sculpin

Yeah about that $12.85 per share.... Aggressive accounting if you ask me but who knows it must fall under GAAP principles. So they carry UHIC for $193mm - well we know they just got about $40mm Cdn cash for this plus upside thru payments & future royalties. If you want to be conservative I would value it at $40mm plus some amount to take into account the option value of the potential payouts & royalties. So knock off a good $150 million from their $12.85 or minus about $2.70 per share. Also Dundee Energy is carried at $22mm while the market value is maybe $1.5mm. Just saying they have nothing to crow about yet. Shares are definitely undervalued but anything over $10/share NAV is really being aggressive. And from the MD&A they are still making highly spec investments although on a much smaller scale. My guess is DC is once again late to the marijuana madness party. Thought these guys were supposed to be value investors.... Approximately $2.0 million of proceeds generated were reinvested into the portfolio, including an investment of $1.5 million in Nuuvera Corp., a Canadian incorporated private company focused on medicinal cannabis opportunities.

It is incredible the amount of wealth destruction that has taken place here in their investment in UHIC. Already wrote off $215 million and now most likely another $100+ million writeoff coming when they release Q1 on Thursday. This on an current equity market cap of $164mm. Will be interesting to see the proxy circular this year if the Board has awarded themselves with stock options & management with either pay increases or bonuses for such great shareholder value creation....

Agreed that the prefs are still very secure. If oil comes back then there may be a chance the net asset value stays above $10. I believe the Taurx is a complete write-off which they have listed at $72mm. As well, the UHIC is carried at $189mm but last financing I believe was at $0.10 and they have just under 600mm shares or 85% - I would guess UHIC is worth <$60mm unless we get Brent > $60bbl by Summer - this would represent a $2/share impairment. Also Dundee Energy is most likely worthless as the Castor appeal failed - unless again oil & southern Ontario natural gas stage a remarkable price recovery soon. Many of the other investments are not strong & continue to bleed - Dundee Sustainable, Blue Goose, Agrimarine, Dundee 360 problems with Parq, on and on. Believe the debt in Dundee Energy & Blue Goose (about $100mm total) would be most likely covered by sale of those assets so total parentco debt is only about $90mm. DC is an investment conglomerate gone very wrong & should be the poster boy for diworsification and the ills of multiple voting shares controlling publicly traded corporations. That said the pref pricing & even the common at $4 already reflect the disaster that has been their portfolio. My guess is real NAV right now is about $7.50/share but there are a lot of unknowns to the OPMI. Have bought the common at around $4 recently. For those that believe in oil >$70 and that management & the Board of DC are turning over a new leaf then the warrants at $0.75 (Strike $6 til 30 June 2019) are an interesting levered play. All IMHO of course. This is a move they had to make and is not too bad in terms of moving the United project into better operating hands and securing some liquidity ($47mm Canadian). The potential upside of the payments on first oil in the respective blocks ($50mm total US $) and the royalty (below) are attractive as well.... United will retain a royalty of 10 per cent on Doba production and a 5-per-cent royalty on all block H production, payable unless the average price of Brent crude oil is less than $45 (U.S.) for a quarter. DC.A was probably a screaming buy under $3 Cdn. Dundee to sell United Hydrocarbon Chad to Delonex 2017-05-10 08:32 ET - News Release Shares issued 3,598,203 DC.PR.E Close 2017-05-09 C$ 23.75 Mr. Gabriel Ollivier reports UNITED HYDROCARBON INTERNATIONAL CORP. ENTERS INTO AGREEMENT WITH DELONEX Dundee Corp.'s subsidiary, United Hydrocarbon International Corp. (UHIC), has entered into an agreement with Delonex Energy Ltd. pursuant to which Delonex will acquire United Hydrocarbon Chad Ltd. (UHCL), a wholly owned subsidiary of United, and the holder of United's production sharing contract (PSC) in the Republic of Chad. Delonex will pay $35-million (U.S.) on closing of the transaction, and will pay an additional $50-million (U.S.) if first oil is achieved, including $20-million (U.S.) for first oil at Doba and $30-million (U.S.) for first oil at block H. United will retain a royalty of 10 per cent on Doba production and a 5-per-cent royalty on all block H production, payable unless the average price of Brent crude oil is less than $45 (U.S.) for a quarter. Under the terms of the agreement, Delonex has committed $65-million (U.S.) in financing within two years of the closing date for a comprehensive exploration program for the assets in Chad, and has committed, subject to commerciality being achieved, $35-million (U.S.) for development in Doba. The exploration program will include 2-D and 3-D seismic programs and three exploration wells, representing a significant increase in activity compared with UHCL's current obligations. The agreement will benefit Chad by ensuring the rapid exploration and development of Chad's hydrocarbon resources across the PSC and including in block H, where there has been limited activity since the mid-1970s. Delonex is a sub-Saharan oil and gas company focused on exploration, development and production. Delonex is currently active in Ethiopia, Kenya and Mozambique and the proposed transaction in Chad is part of the company's strategy for expanding its portfolio in central and West Africa. Delonex is led by a management team with a proven record in discovering, developing and operating world-class, on-shore basins and building and operating pipeline infrastructure. Its core leadership team previously worked together at Cairn India, where it established a recoverable resource base of 1.2 billion barrels of oil on shore in Rajasthan, India, with plateau production of about 200,000 barrels of oil per day. It also managed the successful financing and execution of integrated upstream and mid-stream development projects with a combined capital spend of over $4-billion (U.S.). The projects included development wells, processing facilities and the world's longest (about 700 kilometres) continuously heated and insulated oil pipeline with an export terminal. Delonex is backed by a group of global investors with extensive oil and gas experience, led by global private equity firm Warburg Pincus and the International Finance Corp. (a part of the World Bank group). The transaction is subject to a number of conditions including approval from the government of Chad and UHIC shareholder approval. A special meeting of UHIC shareholders to approve the agreement is anticipated to be held by June 30, 2017.

BRI-CHEM ANNOUNCES 2017 FIRST QUARTER RESULTS CONFERENCE CALL Bri-Chem Corp. will hold its first quarter 2017 conference call to discuss Bri-Chem's results, outlook and related matters at 1 p.m. EDT on May 12, 2017. Details for the conference call are as follows: Date: May 12, 2017 Time: 11 a.m. MDT (1 p.m. EDT) Conference call-in details: 1-800-273-9672 (for participants in North America)

New SA write-up trying valiantly to model BRY's business... https://seekingalpha.com/article/4058749-king-oil-dead-long-live-king-part-2-drill-baby-drill Now trading at $0.45 with net net value (current assets minus all liabilities) at $0.57/share and book value of $1.20. Drilling rebound in North America continues to gain strength. Recent quarter provides sales & ebitda upside surprise.

Marrett Resource Q4 MD&A Cline Mining Update Met coal prices were very volatile in Q4 with the peak above $300/tonne and but prices seem to have stabilized in the $170-175 area. This is a very attractive level for the long term value creation from Cline’s assets. The Manager is exploring several avenues to either liquidate this asset or to recapitalize Cline and move the mine back into production.

Agreed that the prefs are still very secure. If oil comes back then there may be a chance the net asset value stays above $10. I believe the Taurx is a complete write-off which they have listed at $72mm. As well, the UHIC is carried at $189mm but last financing I believe was at $0.10 and they have just under 600mm shares or 85% - I would guess UHIC is worth <$60mm unless we get Brent > $60bbl by Summer - this would represent a $2/share impairment. Also Dundee Energy is most likely worthless as the Castor appeal failed - unless again oil & southern Ontario natural gas stage a remarkable price recovery soon. Many of the other investments are not strong & continue to bleed - Dundee Sustainable, Blue Goose, Agrimarine, Dundee 360 problems with Parq, on and on. Believe the debt in Dundee Energy & Blue Goose (about $100mm total) would be most likely covered by sale of those assets so total parentco debt is only about $90mm. DC is an investment conglomerate gone very wrong & should be the poster boy for diworsification and the ills of multiple voting shares controlling publicly traded corporations. That said the pref pricing & even the common at $4 already reflect the disaster that has been their portfolio. My guess is real NAV right now is about $7.50/share but there are a lot of unknowns to the OPMI. Have bought the common at around $4 recently. For those that believe in oil >$70 and that management & the Board of DC are turning over a new leaf then the warrants at $0.75 (Strike $6 til 30 June 2019) are an interesting levered play. All IMHO of course.

2016 results tomorrow... Will be interested on how the clean up of their stable of troubled investments is progressing. Perhaps the rise in the price of oil - hopefully to $60+ by this Summer - may save some of the investment in United Hydrocarbons Intl. Hard to believe that Dundee had invested a total of more than $400mm in this highly speculative exploration junior in the heart of sub Sahara Africa in the country of Chad - this amounts to over $7 per share. For perspective the DC.A current market cap is $234 million at $4/share current price. As at September 30, 2016, the Corporation’s carrying value of its 85% interest in UHIC was $189.5 million, and was net of an impairment of $215.2 million recognized in the third quarter of the prior year. Additional information regarding UHIC may be accessed at www.unitedhydrocarbon.com. Dundee Corp. senior management will host a conference call on Friday, March 31, 2017, at 10 a.m. ET, to discuss the company's fourth quarter and year-end 2016 results. Fourth quarter and year-end 2016 results conference call and webcast Date: Friday, March 31, 2017 Time: 10 a.m. ET Webcast: at the company's website Live call: 1-888-231-8191 or 1-647-427-7450 Replay: 1-855-859-2056 or 1-416-849-0833 Replay passcode: 87507054 Dundee plans to issue a news release containing the fourth quarter and year-end 2016 results after market close on Thursday, March 30, 2017, and will also post it to the company's website. The conference call will be archived for replay until Friday, April 7, 2017, at midnight. An archive of the audio webcast will also be available at Dundee's website.

"For reasons I have never understood, people like to hear that the world is going to hell," historian Deirdre N. McCloskey told the New York Times this week. It's hard to argue. Despite the record of things getting better for most people most of the time, pessimism isn't just more common than optimism, it also sounds smarter. It's intellectually captivating, and paid more attention to than the optimist who is often viewed as an oblivious sucker..... https://www.fool.com/investing/general/2016/01/21/why-does-pessimism-sound-so-smart.aspx

I find there is too much senior debt ahead of the TBE debentures for my comfort - especially with oil down at $33. The Fortress 2019's are a good bet. Don't know Argent or Toscana enough to comment. I like the Zargon debentures and the Pengrowth ones are beginning to get interesting. Two others that may be attractive that I own are the Discovery Air debentures and Western One debentures - both series. WEQ sells Britco Leasing for $41mm This will allow the Company to pay off all bank debt if they so desire. Remaining business I assume is Britco modular and the profitable WIS business. Remaining WEQ debentures (WEQ.DB) should rise to near $100 in price as they are now well covered. Black Diamond Group Completes Strategic Acquisition Acquires Britco Rental Business From WesternOne Inc, Enters Into $29 Million Bought Deal Equity Financing and Amends Credit Facilities CALGARY, ALBERTA--(Marketwired - March 6, 2017) - Black Diamond Group Limited ("Black Diamond" or the "Company") (TSX:BDI), a leading provider of modular work space solutions and workforce accommodations in Canada, United States and Australia, is pleased to announce it has completed the acquisition of the modular workspace rental fleet and related assets, including the Britco brand, from Britco LP, a wholly-owned subsidiary of WesternOne Inc. (the "Transaction"). Black Diamond has not acquired the modular manufacturing business of WesternOne Inc. The Transaction is expected to give Black Diamond a leading position in the British Columbia work space solutions market, and provide additional size and scale to the Company's existing BOXX Modular operations. Black Diamond will now operate over 2,000 rental units from five key locations throughout the province of British Columbia. "This acquisition of Britco's modular workspace rental fleet and related assets serves to further diversify our business, expands our customer base and footprint in British Columbia and positions us for future infrastructure projects in the province," said Trevor Haynes, Chairman and CEO of Black Diamond Group. "We will leverage the strong brand that Britco represents in this marketplace and are excited to play a meaningful role in British Columbia and its communities, including First Nations." The Business Founded in 1977, Britco has the largest fleet of modular buildings in British Columbia- including site offices, mobile offices, office complexes, classrooms, sales centres, first aid buildings, mobile washroom facilities and container solutions for storage. Britco has a diverse customer base and stable revenue stream, with utilization rates averaging 75% over the last three years. Summary of Transaction This is a strategic transaction for Black Diamond to acquire all of the assets pertaining to and currently used in Britco rentals, for cash consideration of approximately $41 million, subject to customary adjustments. The Transaction includes all of Britco's 1,896 rental fleet assets, working capital in the amount of approximately $1,175,000, nearly 1,000 existing customer contracts, nine strategic First Nations partnerships, and the transfer of all key personnel to ensure the seamless transition of Britco operations to Black Diamond. The Company will not be assuming long term liabilities or debt obligations other than real estate leases for the five operating locations. The Transaction has an effective date of March 1, 2017. The Company intends to continue operating as Britco in this marketplace. Peters & Co. Limited acted as financial advisor to Black Diamond in connection with the Transaction. Strategic Rationale The Transaction is expected to: Provide immediate accretion on a cash flow per share basis; Further diversify Black Diamond by continuing to scale its non-resource business lines and expand its customer base; Increase Black Diamond's future cash flow stability; Position Black Diamond as the largest modular workspace and modular rental provider in British Columbia; Strengthen Black Diamond's position in future British Columbia infrastructure projects; and Allow Black Diamond to access new customers through the expanded British Columbia footprint, which includes operating locations in Vancouver, Nanaimo, Prince Rupert, Fort St. John and Kelowna. Pro-Forma Summary of the Transaction Black Diamond's BOXX Modular business unit is expected to have the following characteristics after giving effect to the Transaction: With the trailing $6.5 million of Adjusted EBITDA from the Transaction, normalized for approximately $500,000 of synergies, BOXX Modular will represent over 40% of the Black Diamond EDITDA on a trailing basis; and Largest work space solutions and modular rental provider operating in British Columbia with the most diverse fleet of over 2,000 assets to meet a wide variety of customer needs; One of the largest modular work space solutions and modular unit operators in Canada; and Five key operating locations in British Columbia, bringing the total number of BOXX Modular locations to 17 throughout Canada and the United States. With the completion of the Transaction, Black Diamond's 2017 Adjusted EBITDA guidance increases to a range of $35 million to $45 million.

I find there is too much senior debt ahead of the TBE debentures for my comfort - especially with oil down at $33. The Fortress 2019's are a good bet. Don't know Argent or Toscana enough to comment. I like the Zargon debentures and the Pengrowth ones are beginning to get interesting. Two others that may be attractive that I own are the Discovery Air debentures and Western One debentures - both series. Discovery Air debentures which had been trading at $30 now bid $50 on talks of potential takeover. March 06, 2017 13:50 ET Discovery Air Updates Market TORONTO, ONTARIO--(Marketwired - March 6, 2017) - Discovery Air Inc. ("Discovery Air" or the "Company") (TSX:DA.A) announced, at the request of Market Surveillance on behalf of the TSX, that the Company has been approached on a preliminary basis regarding a potential corporate transaction. The Company has not received a binding proposal and is in discussions as to the viability of such potential transaction. There can be no assurances that a definitive transaction will result from any such proposal, and there may be limited available alternative transactions having regard to the Company's current ownership structure. The Company does not intend to comment further upon any potential corporate transaction, or alternative thereto, unless and until it deems further disclosure is appropriate, or required by law.

King Coal Begins To Releverage 12:29 PM ET Thomson Reuters LPC: Coal companies return to U.S. leveraged loan market By Jonathan Schwarzberg NEW YORK, March 3 (Reuters) - Rising coal prices and a more favorable outlook for the industry under President Donald Trump’s administration are allowing U.S. coal companies to sign new leveraged loans after being shut out of the market since mid-2015, despite a declining long-term outlook for the industry. Massive investor demand for floating rate assets helped St Louis, Missouri-based coal mining and processing company Arch Coal to increase the size of a refinancing loan to US$300m from US$250m on February 23, less than six months after emerging from bankruptcy. “This is probably the strongest leveraged loan market since before the credit crisis,” a banker said. Coal has fallen out of favor as a fuel source in the United States in the last few years due to environmental concerns and the sector was hit by multiple bankruptcies amid the commodities and energy slump of 2015 and 2016. “The coal world has gone through some challenging times,” a syndicator said. “However, met coal prices have been in a rally for a number of months now, which is helping to portray that industry in a more positive light,” Metallurgical coal prices climbed more than 50% from March to October in 2016 and have held on to these gains as the U.S. gets ready to increase coal production. Coal carload traffic was up 19.2% in February compared to a year earlier, according to the Association of American Railroads. President Trump has been promising to help strengthen the coal industry since the campaign trail, and a White House official told Reuters Wednesday the president plans to remove a federal coal leasing moratorium as soon as next week. “The regulatory scrutiny of coal has eased since the new administration has taken over, and that has relaxed some of the negative bias as well,” the syndicator said. Although coal companies are anticipating regulatory relief and are getting a better reception in the capital markets, production is continuing to decline and the rise in the price of thermal and coking or ‘met’ coal is failing to increase enough to benefit shareholders or stimulate new investment. MORE DEALS Coal companies, which until recently were viewed as difficult credits, are taking advantage of seemingly insatiable investor appetite and an issuer-friendly market to complete deals, helped by investors’ preference for floating rate debt as U.S. interest rates start to rise. Arch Coal’s new US$300m term loan will refinance existing debt. The company emerged from bankruptcy in October 2016 after eliminating about US$4.8bn in debt. In addition to increasing the loan, Arch Coal was also able to cut the pricing to 400bp over Libor from initial guidance of 450bp. Coal plant owner Homer City Generation was not able to achieve similar pricing for a loan after it filed for bankruptcy on January 11. The company launched a US$150m term loan to collateralize its obligation and fund its debt service reserve account, which priced in line with guidance at 825bp over Libor on February 8. Blackhawk Mining had to increase pricing on a US$66m term loan that refinanced existing debt to 950bp over Libor from guidance in the 800bp-850bp range in early February, but completed the deal. Other coal companies were encouraged by these syndications and headed to the market, including U.S. coal supplier Contura Energy and Alabama coal miner Warrior Met Coal, which both set deadlines of March 9. Contura is arranging a US$400m term loan to refinance debt with proposed pricing of 500bp over Libor and Warrior Met, which is made up of assets from bankrupt Walter Energy, is also lining up a US$350m term loan with guidance of 550bp-575bp to back a dividend payment. Coal companies have not tapped the market since mid-2015. The metals and mining sector ended 2016 with a default rate of 23.6%, according to Fitch Ratings, led by the coal sector. However, a recovery in secondary loan prices and strong investor demand has created the current wave of coal loans. Investors’ hunt for paper and yield as billions of dollars of cash flows into the U.S. leveraged loan market has led them to reconsider deals that would previously have been off limits, despite the coal industry’s negative long-term outlook. “The leveraged loan market has been overrun by such massive inflows of capital that you could probably get a loan to buy a fleet of zeppelins at this point in time,” said Jim Tisch, president and CEO of Loews Corp during his February earnings call. (Additional reporting by Lynn Adler.) (Reporting by Jonathan Schwarzberg; Editing By Tessa Walsh) http://www.economiccalendar.com/2017/03/02/teck-resources-noble-group-optimistic-about-coal-prices/

DC.A closing in once again on its 52 week low. One insider actively selling over the last 2 months.... Date Transaction Date Insider Name Ownership Type Securities Nature of transaction Volume or Value Price Feb 6/17 Feb 6/17 Goodman, Daniel Indirect Ownership Subordinate Voting Shares Class A 10 - Disposition in the public market -400 $5.40 Feb 6/17 Feb 2/17 Goodman, Daniel Indirect Ownership Subordinate Voting Shares Class A 10 - Disposition in the public market -1,800 $5.40 Feb 6/17 Feb 1/17 Goodman, Daniel Indirect Ownership Subordinate Voting Shares Class A 10 - Disposition in the public market -15,200 $5.40 Jan 31/17 Jan 30/17 Goodman, Daniel Indirect Ownership Subordinate Voting Shares Class A 10 - Disposition in the public market -300 $5.45 Jan 30/17 Jan 27/17 Goodman, Daniel Indirect Ownership Subordinate Voting Shares Class A 10 - Disposition in the public market -5,200 $5.45 Jan 30/17 Jan 25/17 Goodman, Daniel Indirect Ownership Subordinate Voting Shares Class A 10 - Disposition in the public market -8,900 $5.59 Jan 9/17 Jan 3/17 Goodman, Daniel Indirect Ownership Subordinate Voting Shares Class A 10 - Disposition in the public market -1,500 $5.95

Do you have a short (1 para) investment case for EBN.V? No I'm actually long. I'm aware of the historical short thesis but I don't agree. I actually like the stock very much. I haven't been shorting much lately but I would only short a large cap - regardless of your views shorting a microcap is really risky. I think he meant short in the literal sense - aka 1 paragraph instead of say a 10 page pitch of your long position. Yes I did - guess I should have used "brief"!

Do you have a short (1 para) investment case for EBN.V?

Should help keep coal pricing elevated... North Korea is China’s fourth-biggest supplier of coal. Although China announced last April that it would ban North Korean coal imports to comply with United Nations sanctions, it made exceptions for deliveries intended for the “people’s well-being” and not connected to the North’s missile programs. In practice, that exception was the cover for coal to continue to flow across the border in huge quantities, with imports of non-lignite coal up 14.5 percent last year to 22.5 million metric tons (24.8 U.S. tons). China suspends North Korean coal imports, striking at regime’s financial lifeline https://www.washingtonpost.com/world/china-suspends-north-koreas-coal-imports-striking-at-regimes-financial-lifeline/2017/02/18/8390b0e6-f5df-11e6-a9b0-ecee7ce475fc_story.html?utm_term=.bfd37e7f4293 http://www.reuters.com/article/us-column-russell-coal-coking-idUSKBN1582BY Another factor to consider is Chinese imports of North Korean coal. This is classified as anthracite by customs, but North Korean supplies are largely used as coking coal in steel-making or as a high-quality fuel in other manufacturing, such as ceramics.

http://seekingalpha.com/article/4047169-doorbuster-sale-zargon-energy-common-stock-last

Success! ZARGON ANNOUNCES APPROVAL OF DEBENTURE AMENDMENTS AND COMMENCEMENT OF REDEMPTION AUCTION Eighty-seven per cent of the holders of Zargon Oil & Gas Ltd.'s 6.00 per cent convertible unsecured subordinated debentures voting at the extraordinary meeting of the debentureholders held today voted in favour of an extraordinary resolution approving certain amendments to the trust indenture governing the debentures. They voted to: extend the maturity date of the debentures from June 30, 2017, to Dec. 31, 2019; Increase the interest rate of the debentures from 6.00 per cent per annum to 8.00 per cent per annum, effective April 1, 2017; Change the interest payment dates applicable to the debentures under the indenture from June 30 and Dec. 31 to March 31 and Sept. 30; Reduce the conversion price in effect for each common share of Zargon to be issued upon the conversion of the debentures from $18.80 to $1.25; Amend the redemption provisions of the debentures to provide debentureholders with a right to require Zargon to redeem up to $19-million aggregate principal amount of debentures (or such other amount as may be determined by Zargon) at a cash price to be determined by a Dutch auction process; Amend the redemption provisions to provide that (other than in connection with the put right) the debentures will not be redeemable by the company before Jan. 1, 2019, and for the 12 months following Jan. 1, 2019, the debentures may only be redeemed by the company if the current market price (as defined in the indenture) of the common shares exceeds 125 per cent of the reduced conversion price; Make such other consequential amendments as required to give effect to the forgoing. Zargon is also pleased to announce that it has entered into a supplemental indenture with Computershare Trust Company of Canada as debenture trustee to effect the amendments, and, pursuant to the terms of the supplemental indenture, the company's board of directors has approved the commencement of the redemption auction, effective Feb. 14, 2017. The redemption auction will expire at 5 p.m. Eastern Time on March 31, 2017, unless otherwise terminated, extended or amended by Zargon. Pursuant to the put right and redemption auction, Zargon will redeem up to $19-million aggregate principal amount of debentures. Debentureholders tendering debentures for redemption must tender a minimum of $1,000 principal amount of their debentures and any additional debentures in integral multiples of $1,000, and must specify the minimum price per debenture (of not less than $890 and not more than $1,000, in increments of $10), at which that debentureholder is willing to have its debentures redeemed by Zargon. Debentureholders who wish to tender their debentures for redemption under the redemption auction can only do so by contacting their broker, dealer, bank or other financial institution, which will then tender the debentures according to the debentureholders' instructions. If a debentureholder's debentures are redeemed, that debentureholder will be paid the relevant redemption price for each $1,000 principal amount of debentures redeemed in cash, together with all accrued and unpaid interest (from and including Dec. 31, 2016, up to but excluding the redemption date) promptly following the redemption date. The debenture amendments and the terms of the redemption auction are more fully described in the information circular of Zargon dated Jan. 16, 2017, which is available under Zargon's profile on the SEDAR website. For more information, please contact your broker, dealer, bank or other financial institution, or contact the company at zargon@zargon.ca. Strategic alternatives process update In third quarter 2015, Zargon announced the formation of a special board committee to examine alternatives that would maximize shareholder value in a manner that would recognize the company's fundamental inherent value related to Zargon's long-life, low-decline oil assets and their related oil exploitation upside. To this end, the third quarter 2016 southeast Saskatchewan asset sale eliminated all of Zargon's bank debt, allowing the company to focus on the restructuring of the debentures. With today's approval of the amendments, Zargon has taken a significant step to providing the company with a more stable financial position from which to seek additional value for Zargon stakeholders. With the elimination of the company's bank debt and the restructuring of the debentures, Zargon will continue with its strategic alternatives process, which will be refocused to include, among other alternatives, the addition of capital to further develop the potential of the company's assets, a merger, a farm-in or joint venture, the sale of the company or a portion of the company's assets, or other such options as may be determined by the company's board of directors to be in the best interests of the company's stakeholders. Macquarie Capital Markets Canada Ltd. will continue to be Zargon's exclusive financial adviser related to this component of its strategic alternatives process. The company has not set a definitive schedule to complete this process, and there are no guarantees that the process will result in a transaction of any form or, if a transaction is entered into, as to its terms or timing.

Perhaps final distribution coming for MAR and MHY.un. Marret Resource Corp portfolio being cleaned up with only a few HY bond positions left now. Met coal has leveled out at a decent price after its meteoric rise from Summer 2016. If ever there was a time to sell Cline this should be it. Marret has steadfastly maintained the NAV's at their funds with substantial value realization from Cline - time to put up or shut up in 2017 I would think. http://marret.ca/pdf/MAR-PH-1612.pdf

The destruction of shareholder value in this Dundee subsidiary company has been epic. From $1.50 per share in 2007 to the current $0.03 offer price. From a multi billion $ bungled Spanish offshore natural gas storage to natural gas under Lake Erie to windmills in Africa of all things. Not sure how much DC.A has ploughed into this but it has been substantial.... Dundee Energy to review LP's strategic options 2017-01-10 20:19 ET - News Release Shares issued 188,268,994 DEN Close 2017-01-10 C$ 0.035 Mr. Bruce Sherley reports DUNDEE ENERGY LIMITED ANNOUNCES INITIATION OF STRATEGIC REVIEW PROCESS FOR DUNDEE ENERGY LIMITED PARTNERSHIP Dundee Energy Ltd.'s board of directors has determined to initiate a process to identify, examine and consider a range of strategic alternatives available with respect to enhancing the value of its investment in Dundee Energy LP (DELP). Strategic alternatives may include, but are not limited to, a debt restructuring, a sale of all or a material portion of the assets of DELP, either in one transaction or in a series of transactions, the outright sale of DELP, or business combination or other transaction involving DELP and a third party, and/or alternative financing initiatives. Dundee Energy has engaged Dundee Capital Partners, an unrelated entity, and CW Leigh Cassidy of Whitewater Inc. as its financial advisers to advise the corporation in connection with this comprehensive review and analysis of strategic alternatives in connection with the process. Dundee Energy has not set a definitive schedule to complete its identification, examination and consideration of strategic alternatives with respect to DELP. Given the nature of the process, the corporation does not intend to provide updates until such time as the board of directors approves a definitive transaction or strategic alternative, or otherwise determines that further disclosure is advisable. Dundee Energy cautions that there are no guarantees that the review of strategic alternatives will result in a transaction, or if a transaction is undertaken, as to its terms or timing. The strategic alternatives review process has not been initiated as a result of receiving any transaction proposal. As previously disclosed, DELP and its lenders have been in continuing discussions regarding the reduction of DELP's borrowings. As a result of these discussions, the terms of DELP's credit facility have been amended to require that DELP reduce borrowings under its operating facilities to $55.0-million by Jan. 13, 2017. This represents a reduction of approximately $3.0-million in borrowings under DELP's operating facilities as at Dec. 31, 2016. About Dundee Energy Dundee Energy is a Canadian-based oil and natural gas company with a mandate to create long-term value for its shareholders through the exploration, development, production and marketing of oil and natural gas, and through other high-impact energy projects. Dundee Energy holds interests, both directly and indirectly, in the largest accumulation of producing oil and gas assets in Ontario, and, through a preferred share investment, in certain exploration and evaluation programs for oil and natural gas offshore Tunisia.

https://reminiscencesofastockblogger.com/2017/01/08/revisiting-zargon-after-the-debenture-amendment/ Revisiting Zargon after the debenture amendment by Lsigurd on January 8, 2017 I wrote about my position in Zargon in my September update. I bought the stock because, after a large asset sale of their Saskatchewan properties at a favorable price, the company seemed poised to recover with an uptick in the price of oil. As an aside, what a long post that update was! I really was cramming a lot of information into the monthly updates I used to focus on. Hopefully having the updates dispersed into smaller chunks will make for easier reading. On Friday Zargon announced that their 6.00% convertible unsecured subordinated debentures due June 30, 2017 would be amended, pending approval of holders. The amendments are as follows: debenture_terms When I looked at Zargon in the fall I did so with the assumption that they would have to dilute to raise capital to pay back the debentures. I was optimistically thinking that would happen at around a 80c share price. With this deal Zargon is using the cash it has available to pay what of the debenture it can, and then, rather than issuing equity at the current level, its saying give us 3 years and we will issue equity at a 50% premium. So its much less dilutive than I had been anticipating. I took a look at what Zargon would look like if the debentures are converted. This happens at a stock price of $1.25, so I took a look at the company at $1.30. That implies over 50% appreciation from the current level. What I’m doing here is asking the question “is this is a reasonable valuation for this company?” – if it is, then there is a lot of upside in the stock. If I assume that Zargon uses the $19 million to purchase the debentures at par (as opposed to 89% of par), which would be the worst case outcome of the put option, they end up diluting 31 million shares with the rest of the debentures (at $1.30 the debentures would be in the money). The capitalization and metrics look something like this: incomestatement(Note that my $52 scenario assumes a 1.28 CAD/USD exchange whereas my $45 scenario assumes 1.33 exchange. I am trying to be conservative by using an $18 differential between WTI and what Zargon realized. This differential was $10/bbl in the third quarter) Total market capitalization is still only $80 million. There is no debt. And you have a company with a best in class decline rate of ~10%, producing 2,500boepd that is 75% oil. On traditional metrics it looks reasonable. Even after the large price appreciation the company would still be trading at $31,000 per flowing boe and at a little under 8x EV/EBITDA, which is in-line with peers once you account for the fact that the resulting company has no debt. At $52 oil ($66 Canadian), they can keep production steady with capital expenditures of $6.3 million (in the recent corporate presentation they breakdown the $7.8 million of capital expenditures they expect to incur in 2017 and $1.5 million of it is for land retention). This leaves around $4 million of discretionary cash flow for growth. I think Zargon could turn out to be a good idea in a rising oil price environment. It wasn’t, and isn’t a great company at $40 oil. Its barely treading water. At $50 it gets its head above. In the high $50’s there is real value there. I thought we were moving into a rising price environment in September and I am more convinced of that now. So I think there is more chance Zargon moves higher than lower.

Assuming the price of oil goes to $65 by mid 2017 I don't think it is a stretch to assume Zargon can increase their cap ex somewhat to be producing 3,000 boed mostly oil by 2nd half 2017. At that point I would think the Company would be worth mininum $60,000 per flowing barrel or $180 million total enterprise value - this would place a value on the shares of $3 and $240 per $100 ($100/$1.25 times $3) face value of debenture. This is a win win situation for both shareholders and debenture holders.

Short TSLA??

GMP - only broker that covers this as far as I know. Will the resource recovery lead to them once again growing NAV and seeing the big discount narrow over the next year? Dundee BUY DC.A-TSX Last: C$6.03 Target: C$11.00 Deep discount to NAV remains We are exiting a period of research restriction on Dundee Corp. (DC.A-TSX) due to an advisory role. Our updated NAV, including Q3/16 results, is now $13.52 (previously $14.88). Our NAV is lower q/q due largely to market depreciation in publicly traded shares of DRM and DPM and a lower management reported carrying value of UHIC. Despite the decline, the discount to NAV remains wide at ~55%. We believe that some investors may be continuing to apply deep discounts to the private investments. DREAM sale eases near-term liquidity concerns At the corporate level, DC.A’s credit line was reduced from $250 million to $125 million as part of an agreement extending the facility to March 14, 2017. At the end of Q3/16, $94 million had been drawn against the facility leaving ~$31 million available. Cash at the corporate level was ~$11 million. Subsequent to the end of the quarter, management announced the sale of 6.1 million shares of DRM at a price of $6.25 per share. The transaction added ~$38.1 million to DC.A’s existing cash balance. In our view, the DRM sale has eased near-term liquidity concerns but we still believe the balance sheet may restrict management’s flexibility going forward. Further asset sales of the liquid public investments remain a possibility. Maintain BUY – NAV discount remains wide UHIC remains the largest NAV contribution. In August, UHIC completed a restructuring to emerge with an essentially debt free balance sheet and with sufficient working capital to pursue an immediate goal of attracting a joint venture partner. This process remains ongoing. In the near term, DC.A’s SPAC has scheduled a Dec. 20 vote on its proposed qualifying transaction with CHC Student Housing Corp. We would view a successful vote favourably and calculate that it could add ~$0.30-$0.40 to our DC.A NAV. Currently, we do not include the SPAC in our NAV calculation. Our undiscounted NAV is $13.52 (previously $14.88). We apply a 20% discount to yield our price target of $11.00 (previously $12.00). We maintain our BUY rating. Please see Figure 1 for our NAV sensitivity analysis.

According to Metal Bulletin, the Q1/17 coking coal benchmark price has been settled at $285/t FOB DBCT. The participants to the settlement were Nippon Steel and Sumitomo Metal on the steel production side, and Glencore and Teck on the mining side. We view this as positive - the settlement price of $285/t is $10/t higher than our recent forecast of $275/t for the quarter. Updating our metallurgical coal forecasts. With the Q1 benchmark now settled, we are updating our coking coal price forecasts for 2017. We are now forecasting an average annual price of $214/tonne (from $158/tonne). We maintain our belief that the price will correct downwards in the second half of the year, though not as aggressively as we had previously forecasted.