Tamarack Valley is a junior oil & gas company operating asset in the Canadian Western Basin. The production comes largely from the Viking and Cardium Oil horizons based in Redwater and Wilson Creek/Alder Flats area. The company targets a 10-15% growth rate annually and has a strong inventory of drill locations. They have successfully reduced their exposure to gas which has been positively received by investors. The company was significantly undervalued relative to other light oil producing peers. With the stock rallying over 64% last quarter, we trimmed the position into strength but continue to hold a significant position in the portfolio.

Parex Resources is a very strong free cash flow generating energy company with its oil production coming from the Llanos and Magdalena basins in Columbia. Due to the more conventional nature of its production, decline rates are lower than other resource plays. The company is exposed to Brent pricing with very strong net backs. This allows Parex to show robust growth and strong free cash flow. This company trades at a discount to most North American producers and we continue to hold sizeable position in the portfolio.

Nevsun provided solid returns for the portfolio in the second quarter despite the poor performance of most base metal stocks (the TSX Small Cap Index Diversified Metals sub-index was down -7.7%). The company operates Bisha in Eritrea (a high grade low cost copper/zinc asset) and owns Timok, a world class underdeveloped copper-gold asset in Serbia. Timok is permitted and is currently trying to fend off a Lundin bid to acquire Timok in conjunction with Eurosun which would purchase Bisha. Although the stock has reacted positively, we expect a better bid from other acquires and/or an increased bid from the Lundin Group. We continue to hold the position.

1 2 3 4 5 6 7 8 9