Desjardins NOVEMBER 16, 2010

Securities
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Metals & Mining Weekly

METALS & MINING

Desjardins Basic Materials Conference—

How good can it get?

 More than 20 companies will be presenting in Montréal on December 6 and 7

 Copper—‘the risks are on the upside’
 Physical market in copper continues to ‘tighten’—evidenced by declining inventory and rising cancelled
warrants

We will be hosting our annual metals conference at our head office (1170 Peel Street, Montréal) on December 6 (Monday) and
December 7 (Tuesday). A tentative schedule is set out below. There will be ample opportunity for clients to meet with
John Redstone, MBA, MEng management individually. We have asked our presenters to focus on the potential upside for their companies in the near
Metals & Mining term.
(514) 281-7088
Aleem Ladak, Associate We hope you can join us.
(514) 985-3573

Desjardins Basic Materials Conference, December 6 & 7, 2010

Day 1, December 6 Day 2, December 7
 8:00–9:30am Registration/continental breakfast  8:00–9:00am Registration/continental breakfast
 9:30–10:00am First Quantum Minerals Ltd.  9:00–9:30am Teck Resources Limited
 10:00–10:30am Quadra FNX Mining Ltd.  9:30–10:00am Thompson Creek Metals Company Inc.
 10:30–11:00am HudBay Minerals Inc.  10:00–10:30am Inmet Mining Corporation
 11:15–11:45am Cameco Corporation  10:30–11:00am Capstone Mining Corp.
John Hughes 
 11:45am–12:15pm Uranium One Inc. 11:00–11:30am Peregrine Metals Ltd.
Metals & Mining, Steels
(416) 867-3778  2:00–2:30pm SouthGobi Resources Ltd.  11:30am–12:00pm Aurizon Mines Ltd.
 2:30–3:00pm Ivanhoe Mines Ltd.  1:00–1:30pm Orezone Gold Corporation
 3:00–3:30pm Consolidated Thompson Iron Mines Limited  1:30–2:00pm Gammon Gold Inc.
 4:15–4:45pm Royal Nickel Corporation  2:00–2:30pm Sabina Gold & Silver Corp.
 2:30–3:00pm Allied Nevada Gold Corp.
 3:00–3:30pm Richmont Mines Inc.
 3:30–4:00pm Agnico-Eagle Mines Ltd.
 4:00–4:30pm SEMAFO Inc.
 4:30–5:00pm Osisko Mining Corporation

Please see disclosure section on pages 12–13 for company specific disclosures, analyst certification and legal disclaimers.
 Desjardins
Securities Metals & Mining Weekly
PAGE 2
NOVEMBER 16, 2010

Copper outlook—US$4/lb may be too conservative

At the risk of sounding like a ‘broken record’, the outlook for the copper market remains extremely strong. We would suggest
that the risk is that demand will outstrip supply by an even greater amount than we forecast, driving prices well above our
forecast average price for 2011 of US$4/lb.

Moderate growth in consumption forecast. As shown in Exhibit 1, our forecast for world copper consumption in 2011 is
essentially in line with long-term growth patterns. The ‘pick-up’ in demand for 2011 is in line with growth patterns seen at
similar stages of previous economic cycles (ie roughly four years after an economic downturn, copper demand is roughly 10%
above the previous high). Our forecast assumes growth in China continues to moderate but remains robust (growing 8% in 2011
vs 2010). China should act to contain inflation, but still post GDP growth in excess of 8% to maintain social stability. Chinese
infrastructure projects (eg the rapidly expanding high-speed rail network) should drive growth in copper demand. We also
assume that demand in most western economies remains below the levels of 2007. If China’s economy were to continue to
grow at the rates seen in 2010 and if economic growth in the west were to accelerate from current levels, world demand could
exceed our forecast by roughly 1 MMT.

Exhibit 1: Global copper consumption

25,000

20,000

15,000
(KMT)

10,000

5,000

2011F
1989

1990

1992

1993

1995

1996

1997

1998

1999

2000

2001

2002

2003

2005

2006

2008

2009
1991

1994

2004

2007

2010E
ROW China

Source: Desjardins Securities, World Bureau of Metal Statistics

Limited supply-side response. Our forecast is based on maximum production at all existing mines and assumes that all
potential expansions come onstream at the maximum rate as early as possible. Our list of expansions is shown in Exhibit 2. In
addition, we assume the availability of secondary materials is optimized. Obviously, delays, strikes and other production
problems could significantly reduce the level of production in 2011. We would suggest our supply forecast may have to be
reduced by as much as 500 KMT.

John Redstone
Aleem Ladak, Associate

John Hughes
 Desjardins
Securities Metals & Mining Weekly
PAGE 3
NOVEMBER 16, 2010

Exhibit 2: 2009–11 new mines and expansions

Mine Country Net rise in capacity (KMT)
Esperanza Chile 180
Konkola Deep Zambia 160
Cananea Mexico 120
Andacollo Chile 79
Vale Inco Canada 72
Las Cruces SXEW Spain 70
Los Bronces Chile 60
Lumwana Zambia 56
Tenke Fungurume DRC 54
Olympic Dam Australia 50
Miscellaneous Various 47.9
Source: Brook Hunt, Metal Bulletin

Low inventories do not provide a ‘safety net’. Strong demand/supply fundamentals have reduced total inventories to
825.8 KMT—which is equivalent to 2.3 weeks of consumption (compared with normal levels of 6.0 weeks).

Exhibit 3: Long-term copper inventories and price

2,000 4.40

1,600 3.60

1,200 2.80

(US$/lb)
(KMT)

800 2.00

400 1.20

0 0.40
May-00

May-01

May-02

Jan-03

Jan-04

Jan-05

Jan-06

May-08

May-09

May-10
Sep-00

Sep-05

Sep-06

Sep-07

Sep-08
May-06
Jan-00

Jan-01

Sep-01
Jan-02

May-03
Sep-03

May-04
Sep-04

May-05

Jan-07
May-07

Jan-08

Jan-09

Jan-10
Sep-02

Sep-09

Sep-10
Producer (LHS) Consumer (LHS) Merchant (LHS)
Shanghai stocks (LHS) LME and Comex (LHS) LME 3-month price (RHS)

Source: CRU, Comex, LME, SHFE

Our current forecast (see Exhibit 4) calls for a deficit of 375 KMT. If, as discussed above, demand were to exceed our expectations
by 1 MMT and supply were to be 500 KMT lower than our forecast, total inventories would be completely depleted, which
would result in an explosive rise in prices.

John Redstone
Aleem Ladak, Associate

John Hughes
 Desjardins
Securities Metals & Mining Weekly
PAGE 4
NOVEMBER 16, 2010

Exhibit 4: Copper supply/demand balance

(KMT) 2007 2008 2009 2010E 2011F
Western world mine production 12,800 12,700 12,350 12,700 13,600
Russia 682 689 678 687 731
China 925 1,025 1,050 1,075 1,100
Other former communist countries (FCC) 1,430 1,515 1,582 1,633 1,609
Total FCC 3,037 3,229 3,310 3,395 3,440
Total world mine production 15,837 15,929 15,660 16,095 17,040
SXEW production -3,200 -3,000 -3,300 -3,400 -3,400
Mine production available for smelting 12,637 12,929 12,360 12,695 13,640
Smelter equivalent (at 98%) 12,384 12,670 12,113 12,441 13,367
Indicated change in concentrate stocks -266 1 -87 -59 67

Concentrate consumed by primary smelters 12,650 12,670 12,200 12,500 13,300

Scrap consumed by primary smelters 1,500 1,600 1,500 1,700 1,900
Western world primary smelter production 9,400 9,200 8,250 8,500 8,900
Russia 950 876 850 900 930
China 2,600 2,900 3,300 3,500 4,100
Other FCC 1,370 1,400 1,400 1,400 1,400
Total FCC 4,920 5,176 5,550 5,800 6,430
World primary smelter production 14,320 14,376 13,800 14,300 15,330
Fed directly to refineries 776 1,330 1,000 1,100 1,100

Western world primary refinery production 12,525 12,500 11,800 11,900 12,200
Russia 950 876 850 900 930
China 3,500 3,900 4,300 4,900 5,300
Other FCC 1,150 1,300 1,100 1,100 1,300
Total FCC 5,600 6,076 6,250 6,900 7,530

Total world refined production 18,125 18,576 18,050 18,800 19,730

Change (yoy%) 3.3 2.5 -2.8 4.2 4.9
Total world refined metal supplies 18,126 18,600 18,000 18,700 19,700

Refined consumption 18,150 18,450 17,600 18,900 20,075

Change (yoy%) 3.1 -0.3 4.6 7.4 6.2

Metal balance -24 150 400 -200 -375

Price LME (US$/lb) 3.22 3.12 2.32 3.30 4.00
Weeks of consumption 1.7 2.0 3.3 2.5 1.4
Source: Desjardins Securities

All the more reason then that we have Buy recommendations (except for HudBay, which is rated Hold) on our covered copper
producers. Exhibit 5 shows the leverage to the copper price of the earnings of our covered copper producers.

Exhibit 5: Company-specific sensitivity to a US$0.10/lb change in copper price

Impact on EPS Impact on NAV (LT copper price effect)
Company (C$) ($/share) ($/share)
First Quantum (US$) 0.40 NA
Freeport-McMoRan (US$) 0.55 NA
HudBay 0.05 NA
Inmet 0.51 NA
Teck Resources 0.07 NA
John Redstone Capstone NA 0.23
Aleem Ladak, Associate Quadra FNX NA 0.93
Source: Desjardins Securities, company reports
John Hughes
 Desjardins
Securities Metals & Mining Weekly
PAGE 5
NOVEMBER 16, 2010

LME copper inventories declining as level of cancelled warrants

increases—a positive for copper prices
LME copper cancelled warrants—on the rise. We note the level of copper cancelled warrants in LME warehouses remains on
the rise. Cancelled warrants reflect the amount of copper currently in LME inventory that is scheduled or ‘earmarked’ for
delivery out of the warehouse over the coming two-week period. Total cancelled warrants have reached 33,800 tonnes, up
from 16,000 tonnes in mid-May 2010 and compare with a low of 2,600 tonnes at the beginning of the year (see Exhibit 6a).
In addition, the current level of copper cancelled warrants relative to total available copper in LME warehouses is also
increasing—currently representing almost 10% of total LME inventory vs only 1% at the beginning of the year. This is driven by
two factors—a rising level of cancelled warrants during a period of declining copper inventory. We highlight the downtrend in
LME copper inventory during a period of uptrend in related cancelled warrants as one signal of accelerating tightness in the
physical copper market.

Conclusion—the level of copper cancelled warrants is becoming more meaningful. We believe one of the major discussion
points for copper traders and consumers during late 4Q10 and early 1Q11 should be the rising level of copper cancelled
warrants during a period of declining LME inventory. This trend indicates a real potential for the downward trend in LME
copper inventory to continue. Although at present currency markets are a major determinant of copper prices over the shorter
term, improving physical markets should advance to the forefront of trader discussions. This should provide upside potential
for copper prices over the same timeframe from current levels of US$3.10/lb.

We maintain our forecast average copper price of US$3.30/lb during 2010 and US$4.00/lb in 2011. The year-to-date average is
US$3.33/lb, with the price on November 15, 2010, of US$3.91/lb following a year-to-date low of US$2.75/lb during early
June 2010.

Exhibit 6a: Tonnes of LME copper cancelled warrants rising… Exhibit 6b: …reaching almost 10% of total LME inventory
90,000 600,000 25% 4.25
75,000 500,000 20% 3.65
60,000
400,000 15% 3.05
(tonnes)
(tonnes)

45,000
300,000 10% 2.45
30,000
200,000 5% 1.85
15,000
0 100,000 0% 1.25
Oct-09
Apr-09

Jul-09

Jan-10

Jul-10

Oct-10
Jan-09

Apr-10
Oct-09

Oct-10
Jan-09
Apr-09

Jan-10
Apr-10
Jul-09

Jul-10

LME Cu inventory (RHS) Warrants vs total inventory (%) (LHS)

LME Cu cancelled warrants (LHS) Copper price (US$/lb) (RHS)

Source: Desjardins Securities, Reuters, LME Source: Desjardins Securities, Reuters, LME

Economics
US
October retail sales. Retail sales in the world’s largest economy increased 1.2% mom in October, indicating that consumers
may play a bigger role in a recovery. The market was expecting an increase of 0.7% mom.

Asia
China October consumer price index. Consumer prices increased 4.4% yoy in October, adding to the government’s need to
control price increases. The market was expecting an increase of 4.0% yoy.

China October retail sales. Retail sales increased 18.6% yoy in October. The market was expecting an increase of 18.8% yoy.

China October industrial production. Industrial production increased 13.1% yoy in October. The market was expecting an
increase of 13.4% yoy.
John Redstone
Aleem Ladak, Associate Japan September machine orders. Machine orders fell 10.3% mom and increased 4.2% yoy in September. The market was
expecting a decrease of 9.5% mom and an increase of 4.5% yoy.
John Hughes
 Desjardins
Securities Metals & Mining Weekly
PAGE 6
NOVEMBER 16, 2010

Japan 3Q10 gross domestic product. The economy expanded at a rate of 0.9% qoq in 3Q10. The market was expecting an
increase of 0.6% qoq.

Europe
Germany September industrial production. Industrial production fell 0.8% mom and increased 7.9% yoy in September,
adding to signs that the recovery is losing momentum. The market was expecting an increase of 0.4% mom and 9.5% yoy.

Germany October consumer price index. Consumer prices increased 0.1% mom and 1.3% yoy in October, both in line with
market expectations.

Germany 3Q10 gross domestic product. The economy expanded at a rate of 0.7% qoq in 3Q10. The market was expecting an
increase of 0.8% qoq.

Copper
Exhibit 7: Copper market review and forecast
LME Comex Shanghai
Market review
Closing price 12-Nov-10 (US$/lb) 3.91 4.02 4.63
Change on the week (US$/lb) -0.02 0.11 0.26
Ytd average (US$/lb) 3.34 3.35 3.97
Inventory as of 12-Nov-10 (tonnes) 362,775 67,390 115,423
Change on the week (tonnes) -3,575 -404 8,572
Ytd change (tonnes) -139,625 -22,592 20,108

Weeks of consumption
Current 2.3
Estimated for end of 2010 2.5

Forecast
(000 tonnes, year-end Dec-31) 2008 2009 2010E 2011F
Consumption 18,450 17,600 18,900 20,075
% increase -0.3 -4.6 7.4 6.2
Supply 18,600 18,000 18,700 19,700
% increase 1.5 -3.2 3.9 5.3
Market balance: Surplus (deficit) 150 400 -200 -375
Average price (US$/lb) 3.12 2.32 3.30 4.00
Note: Surplus = demand < supply, Deficit = demand > supply
Source: LME, Comex, Shanghai Exchange

Company news. Nanya Copper Foil Co. Ltd. has invested US$96m to build a new plant in Kunshan City that will be the largest
copper foil plant in China. The Nanya copper foil plant will have a production capacity of roughly 45.9 KMT/yr of refined copper
foil.

Chinalco has postponed the start of construction of its Toromocho project in Peru due to resistance from some local residents
of the Morococha town to their relocation. The original start date was 4Q12; however, CRU estimates a new production date of
2Q13. The project’s total capital expenditure requirement will be US$2b. The mine is expected to produce 250 KMT/yr of
copper-in-concentrate.

Production update. The strike at the Collahuasi mine in Chile (jointly owned by Xstrata, Anglo American and a number of
Japanese companies) is ongoing. Mine management has indicated that operations are being run by non-unionized workers
and that the company can meet its contract requirements. The mine was expected to produce 493 KMT of
John Redstone copper-in-concentrate and 43 KMT of copper cathode this year. We forecast world refined copper production of 18,700 KMT
Aleem Ladak, Associate
and 19,700 KMT in 2010 and 2011, respectively.

John Hughes
 Desjardins
Securities Metals & Mining Weekly
PAGE 7
NOVEMBER 16, 2010

Aluminium
Exhibit 8: Aluminium market review and forecast
LME Shanghai
Market review
Closing price 12-Nov-10 (US$/lb) 1.09 1.14
Change on the week (US$/lb) -0.02 0.02
Ytd average (US$/lb) 0.99 1.07
Inventory as of 12-Nov-10 (tonnes) 4,252,550 485,420
Change on the week (tonnes) -31,725 -7,391
Ytd change (tonnes) -371,875 187,911

Weeks of consumption
Current 8.1
Estimated for end of 2010 7.7

Forecast
(000 tonnes, year-end Dec-31) 2008 2009 2010E 2011F
Consumption 38,000 35,600 40,900 46,700
% increase 1.8 -6.3 14.9 14.2
Supply 40,020 36,760 41,010 46,210
% increase 4.7 -8.1 11.6 12.7
Market balance: Surplus (deficit) 2,020 1,160 110 -490
Average price (US$/lb) 1.19 0.77 1.10 1.40
Note: Surplus = demand < supply, Deficit = demand > supply
Source: LME, Comex, Shanghai Exchange

Production update. A transformer fire at China Power Investment’s 270-KMT/yr Yichuan Ningdong smelter in the Ningxia
Autonomous Republic has forced the plant to be idled for roughly 4–5 months. We forecast world primary aluminium
production of 41,010 KMT and 46,210 KMT in 2010 and 2011, respectively.

Zinc
Exhibit 9: Zinc market review and forecast
LME Shanghai
Market review
Closing price 12-Nov-10 (US$/lb) 1.09 1.32
Change on the week (US$/lb) -0.06 -0.08
Ytd average (US$/lb) 0.99 1.19
Inventory as of 12-Nov-10 (tonnes) 631,875 300,848
Change on the week (tonnes) -1,325 4,093
Ytd change (tonnes) 142,660 128,948

Weeks of consumption
Current 6.0
Estimated for end of 2010 7.5

Forecast
(000 tonnes, year-end Dec-31) 2008 2009 2010E 2011F
Consumption 11,575 10,705 11,650 12,700
% increase -0.1 -7.5 8.8 9.0
Supply 11,650 11,230 12,210 12,335
% increase 2.3 -3.6 8.7 1.0
Market balance: Surplus (deficit) 75 525 560 -365
John Redstone
Aleem Ladak, Associate Average price (US$/lb) 0.90 0.76 1.00 1.20
Note: Surplus = demand < supply, Deficit = demand > supply
Source: LME, Comex, Shanghai Exchange
John Hughes
 Desjardins
Securities Metals & Mining Weekly
PAGE 8
NOVEMBER 16, 2010

Production update. Horsehead Holding Corp.’s Monaca zinc smelter in Pennsylvania is set to return to full production by the
end of the year, earlier than the previous estimated date of 1Q11. In July, the plant was hit by an explosion that caused the
company to declare force majeure on supply contracts. The company produced 25.5 KMT of zinc in 3Q10, up from 24.7 KMT in
3Q09. We forecast world refined zinc production of 12,210 KMT and 12,335 KMT in 2010 and 2011, respectively.

Nickel
Exhibit 10: Nickel market review and forecast
LME
Market review
Closing price 12-Nov-10 (US$/lb) 10.29
Change on the week (US$/lb) -0.81
Ytd average (US$/lb) 9.78
Inventory as of 12-Nov-10 (tonnes) 130
Change on the week (tonnes) 1
Ytd change (tonnes) -28

Weeks of consumption
Current 8.0
Estimated for end of 2010 6.8

Forecast
(000 tonnes, year-end Dec-31) 2008 2009 2010E 2011F
Consumption 1,319 1,301 1,431 1,521
% increase -5.9 -1.4 10.0 6.3
Supply 1,382 1,292 1,424 1,501
% increase -4.8 -6.5 10.2 5.4
Market balance: surplus (deficit) 63 -9 -7 -20
Average price (US$/lb) 9.63 6.63 9.00 10.00
Note: Surplus = demand < supply, Deficit = demand > supply
Source: LME, Comex, Shanghai Exchange

Production update. Norilsk Nickel has restarted the Nkomati mills (one of its South African mines) earlier than expected. The
mill was closed in July due to modifications made to increase its capacity (by 150 KMT/month) to 250 KMT/month of ore. This
mill and the adjacent mill at the mine now have a combined capacity of 375 KMT/month of ore. CRU expects that the
expansion will double next year’s production to 16.5 KMT of nickel-in-concentrate.

John Redstone
Aleem Ladak, Associate

John Hughes
 Desjardins
Securities Metals & Mining Weekly
PAGE 9
NOVEMBER 16, 2010

Uranium
Exhibit 11: Uranium world balance
(tU) 2007 2008 2009 2010E 2011F
Supply
Primary uranium (excluding Kazakhstan) 34,627 35,332 33,176 34,000 35,000
Kazakhstan production 6,637 8,521 13,800 17,000 19,000
Total production 41,264 43,853 46,976 51,000 54,000
% of primary capacity 67.7 71.4 72.7 72.1 75.7
HEU downblended 9,000 9,000 9,000 9,000 9,000
DOE sales 100 600 600 2,381 1,997
DOE tails material 0 0 0 0 0
Re-enriched tails 5,000 3,000 3,000 3,000 1,000
Recycling 1,850 2,690 2,670 2,980 3,000
Russian LEU exports 3,500 2,000 2,000 2,000 2,000
Ex military MOX 250 300 350 350 350
Total secondary capacity 19,700 17,590 17,620 19,711 17,347
% of total secondary capacity 32.3 28.6 27.3 27.9 24.3
60,964 61,443 64,596 70,711 71,347

Demand requirements 64,375 64,615 66,625 70,000 71,500

Metal balance (supply – demand) -3,411 -3,172 -2,029 711 -153

Total inventory (non-strategic) 17,589 14,417 12,388 13,099 12,946

Price (US$/lb) 98.55 63.03 46.66 45.00 60.00

Cameco average realized uranium price (US$/lb) 37.47 39.52 38.00 41.50 47.00
Source: Desjardins Securities, World Nuclear Association

Company news. AREVA has signed an agreement with China Guangdong Nuclear Power Corp. to supply the company with
20,000 tU (52m lbs) of uranium over a 10-year period.

Australia update. Australia and Russia have signed a bilateral nuclear cooperation agreement that will allow Australia to start
supplying uranium to fuel Russia’s nuclear power reactors.

China update. A report indicates that China has begun building two more new nuclear energy plants in Dalian City in northeast
Liaoning Province. The two reactors will have a total capacity of 2 GWe and are due to be completed by 2016.

Kazakhstan update. Kazakhstan plans to build its first nuclear power plant (estimated cost of US$1b) by 2020. The country is in
talks with a number of nuclear power technology companies (including Rosatom) to help it obtain the technology and prepare
a feasibility study.

KAZATOMPROM has also signed a long-term contract with China Guangdong Nuclear Power Corp. for the sale and purchase of
uranium. KAZATOMPROM will be supplying China with 24,200 tU (62.9m lbs) until 2020.

John Redstone
Aleem Ladak, Associate

John Hughes
 Desjardins
Securities Metals & Mining Weekly
PAGE 10
NOVEMBER 16, 2010

Metals & Mining and Steels: Earnings estimates and price targets
Exhibit 12: Earnings estimates and price targets
Annual EPS ($) Current Book Price/ One-year
Year-end Dec-31 2008 2009 2010E 2011F price ($) value ($) book (x) target ($) Rating
Agrium1 8.34 2.33 5.34 8.77 84.80 32.23 2.63 96.40 Buy
Alcoa (US$) 1.08 -0.71 0.59 2.20 13.78 13.00 1.06 26.40 Buy
Asian Mineral Resources NM NM NM NM 18.00 0.28 0.65 0.35 Buy
Baffinland Iron Mines NM NM NM NM 1.18 0.75 1.58 1.10 Tender
Cameco 1.67 2.82 1.23 1.59 37.51 12.57 2.98 42.50 Buy
Consolidated Thompson1 -0.12 -0.12 NA NA 11.51 3.44 3.35 NA Restricted
Freeport-McMoRan (US$) 5.32 5.86 8.38 10.17 102.00 24.46 4.40 122.00 Buy
GobiMin1 0.05 NM NM NM 0.83 0.99 0.84 1.19 Hold
Inmet Mining 5.07 5.13 5.27 7.25 64.80 36.61 1.77 79.75 Buy
Ivanhoe Mines NM NM NM NM 26.06 3.36 7.74 29.15 Buy
Potash Corporation1 11.01 3.25 6.40 15.92 142.47 25.72 5.54 175.00 Buy
Thompson Creek 1 1.86 -0.44 1.13 1.91 13.22 5.87 2.25 20.55 Top Pick
Uranium One1 -4.98 -0.08 -0.03 0.19 13.22 2.65 4.98 5.50 Buy

Capstone Mining 1 1.31 -0.11 0.26 0.75 4.16 1.97 2.11 4.90 Buy
First Quantum1 0.67 5.77 8.84 9.17 93.84 30.81 3.05 107.30 Buy
GlobeStar Mining1 -0.08 -0.02 0.37 0.52 1.64 0.90 1.83 1.65 Tender
Harry Winston1, 4 1.55 -0.27 0.51 0.78 13.36 9.95 1.34 10.90 Sell
HudBay Minerals 0.55 0.73 0.50 1.07 17.67 11.09 1.59 16.00 Hold
Polaris1 -0.26 -0.27 -0.30 -0.20 1.85 1.98 0.94 1.65 Hold
Quadra FNX1 0.60 0.93 1.25 2.00 14.38 17.22 0.83 18.50 Buy
Sherritt -1.05 0.30 0.65 0.88 8.59 11.87 0.72 9.65 Buy
Teck Resources2 1.57 3.42 2.41 4.27 50.26 26.84 1.87 56.10 Buy
Westshore Terminals3 1.09 1.07 1.15 1.19 22.90 6.89 3.32 16.90 Hold
1 All data in US$ except share price and target in C$/share, 2 Class B subordinate voting shares, 3 Annual distribution, 4 EPS forecasts for FY09–12

Source: Desjardins Securities, company reports

John Redstone
Aleem Ladak, Associate

John Hughes
 Desjardins
Securities

Desjardins Basic Materials Conference

How good can it get?
Two-day conference, December 6 & 7, 2010
Le Windsor, The Windsor Ballroom, Montréal

Participating companies include:

Base Metals Precious Minerals
 Cameco Corporation  Agnico-Eagle Mines Ltd.
 Capstone Mining Corp.  Allied Nevada Gold Corp.
 Consolidated Thompson Iron Mines Limited  Aurizon Mines Ltd.
 First Quantum Minerals Ltd.  Gammon Gold Inc.
LE WINDSOR  HudBay Minerals Inc.  Orezone Gold Corporation
The Windsor Ballroom
 Inmet Mining Corporation  Osisko Mining Corporation
1170 Peel Street
Montréal, Québec H3B 0A9  Ivanhoe Mines Ltd.  Richmont Mines Inc.
 Peregrine Metals Ltd.  Sabina Gold & Silver Corp.
 Quadra FNX Mining Ltd.  SEMAFO Inc.
 Royal Nickel Corporation
DESJARDINS OFFICES
Montréal  SouthGobi Resources Ltd.
1170 Peel Street  Teck Resources Limited
Suite 300  Thompson Creek Metals Company Inc.
Montréal, Québec H3B 0A9
 Uranium One Inc.
(514) 987-1749

Toronto
145 King Street West For further information, please contact Christine Wise at (514) 281-2313 or (877) 780-1171 ext 2313,
Suite 2750 christine.wise@vmd.desjardins.com, or your institutional equity salesperson.
Toronto, Ontario M5H 1J8
(416) 867-6000
METALS & MINING METALS & MINING/STEELS PRECIOUS METALS
Calgary John Redstone, MBA, MEng John Hughes Brian Christie
110 9th Avenue SW (514) 281-7088 (416) 867-3778 (416) 867-3776
Suite 410
Calgary, Alberta T2P 0T1 Aleem Ladak, Associate Graham Markham, CA, CFA, Associate
(877) 532-6601 (514) 985-3573 (416) 867-3769
 Desjardins
Securities Metals & Mining Weekly
PAGE 12
NOVEMBER 16, 2010

DISCLOSURES
Distribution of ratings
Rating Desjardins Desjardins coverage % Desjardins Investment %
category rating universe (# of stocks) distribution Banking (# of stocks) distribution
Buy Top Pick/Buy 104 70.7 37 74
Hold Hold 41 27.9 13 26
Sell Sell 2 1.4 0
Total 147 100 50 100

COMPANY SPECIFIC DISCLOSURES

Legend
1. Desjardins Securities makes a market in the securities of the issuer.
2. Desjardins Securities has performed investment banking services for the issuer in the past 12 months.
3. Desjardins Securities has received compensation for investment banking services from the issuer within the past 12 months.
4. Desjardins Securities has managed or co-managed a public offering of securities for the issuer in the past 12 months.
5. Desjardins Securities beneficially owned 1% or more of the common equity (including derivatives exercisable or convertible within
60 days) as of the month end preceding this report.
6a. The Desjardins Securities research analyst(s) and/or associate(s) who covers the issuer discussed has a long position in its common
equity securities.
6b. A member of the household of the Desjardins Securities research analyst(s) and/or associate(s) who covers the issuer has a long
position in its common equity securities.
7a. The Desjardins Securities research analyst(s) and/or associate(s) has viewed a material operation of the issuer, and the related travel
expenses have not been paid for by the issuer.
7b. The Desjardins Securities research analyst(s) and/or associate(s) has viewed a material operation of the issuer, and the related travel
expenses have been paid for partially by the issuer.
7c. The Desjardins Securities research analyst(s) and/or associate(s) has viewed a material operation of the issuer, and the related travel
expenses have been paid for fully by the issuer.
8. Desjardins Securities has received compensation for non-investment banking, non-securities-related services from the company in
the past 12 months.
9. The issuer is a client for which a Desjardins Securities company has performed non-investment banking, non-securities related
services in the past 12 months.
10. The issuer is (or was) a client of Desjardins Securities or an affiliate within the Desjardins Group within the past 12 months and
received non-securities related services.
11. A partner, director or officer of Desjardins Securities or any analyst(s) involved in the preparation of this publication has provided
services (other than for investment advisory or trade execution purposes) to the issuer for remuneration within the past 12 months.
12. An officer or director of Desjardins Securities, outside of the Equity Research Department, or a member of his/her household is an
officer or director of the issuer or acts in an advisory capacity to the issuer.
13. The Desjardins Securities research analyst(s) and/or associate(s) had communication with the issuer regarding the verification of
factual material in this research publication.
14. The Desjardins Securities research analyst(s) and/or associate(s) had communication with Investment Banking regarding the
verification of material in this research publication.
15. A director or officer of the issuer (or any of its affiliates) serves on the board of the Desjardins Group.
16. The issue date for this research publication is within the restricted period for any recent IPO, secondary offering or lock-up
agreement between the issuer and Desjardins Securities.
17. The Desjardins Securities supervisory analyst serves as an officer, director or employee of the issuer or acts in an advisory capacity to
the issuer.

Disclosures for issuers discussed in this publication

Agrium Inc.: 7a, 13 GlobeStar Mining Corporation: 2, 3, 4, 7b, 13 Potash Corporation of Saskatchewan Inc.: 7a, 13
Alcoa Inc.: 7a GobiMin Inc.: 7a, 13 Quadra FNX Mining Ltd.: 7a, 13
Asian Mineral Resources Limited: 7a, 13 Harry Winston Diamond Corporation: 7a Sherritt International Corporation: 7a
Baffinland Iron Mines Corporation: 2, 3, 7b HudBay Minerals Inc.: 7a, 13 Teck Resources Limited: 1, 7a
Cameco Corporation: 7b Inmet Mining Corporation: 6a-6b, 7a Thompson Creek Metals Company Inc.: 2, 3, 7a, 13
Capstone Mining Corp.: 7a, 13 Ivanhoe Mines Ltd.: 7a, 13 Uranium One Inc.: 13
First Quantum Minerals Ltd.: 7a Polaris Minerals Corporation: 7a, 13 Westshore Terminals Income Fund: 7a
Freeport-McMoRan Copper & Gold Inc.: 7a
Price graphs: For full disclosure, please visit our website at https://www.desjardins-securities.ca
Full disclosures for research of all companies covered by Desjardins Securities can be viewed at http://www.desjardins-securities.ca/Disclosures/
English.aspx or http://www.desjardins-securities.ca/Disclosures/Francais.aspx
 Desjardins
Securities Metals & Mining Weekly
PAGE 13
NOVEMBER 16, 2010

STOCK RATING SYSTEM

Top Pick Buy Hold Sell Not Rated
Desjardins’ best investment ideas – stocks Stocks that are expected to Stocks that are expected to Stocks that are expected to Stock is being
that offer the best risk/reward ratio and outperform their respective perform in line with their underperform their covered exclusively
that are expected to significantly peer group* over a 12- respective peer group* over a respective peer group* over on an
outperform their respective peer group* month period 12-month period a 12-month period informational basis
over a 12-month period

RISK QUALIFIERS
Average Risk Above-average Risk Speculative
Risk represented by the stock is in line with its peer Risk represented by the stock is greater than that High degree of risk represented by the stock,
group* in terms of volatility, liquidity and earnings of its peer group* in terms of volatility, liquidity marked by an exceptionally low level of
predictability and earnings predictability predictability
* Peer group refers to all of the companies that an analyst has under coverage and does not necessarily correspond to what would typically be considered an industry
group. Where an analyst’s coverage universe is such that ‘relative’ performance against a ‘peer group’ is not meaningful, the analyst will benchmark the rating against the
most appropriate market index

DESJARDINS SECURITIES INC. LEGAL DISCLAIMERS

Dissemination of Research
Desjardins Securities makes all reasonable effort to provide research simultaneously to all eligible clients. Research is available to our
institutional clients via Bloomberg, FactSet, FirstCall Research Direct, Reuters and Thomson ONE. In addition, sales personnel distribute
research to institutional clients via email, fax and regular mail.
Analyst Certification
Each Desjardins Securities research analyst named on the front page of this research publication, or at the beginning of any subsection
hereof, hereby certifies that (i) the recommendations and opinions expressed herein accurately reflect such research analyst’s personal
views about the company and securities that are the subject of this publication and all other companies and securities mentioned in
this publication that are covered by such research analyst, and (ii) no part of the research analyst’s compensation was, is, or will be,
directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this publication.
Additional Disclosures
Desjardins Securities’ equity research analysts are compensated from revenues generated by various Desjardins Securities businesses,
including Desjardins Securities’ Investment Banking Department. Desjardins Securities will, at any given time, have a long or short
position or trade as principal in the securities discussed herein, related securities or options, futures, or other derivative instruments
based thereon. The reader should not rely solely on this publication in evaluating whether or not to buy or sell the securities of the
subject company. Desjardins Securities expects to receive or will seek compensation for investment banking services within the next
three months from all issuers covered by Desjardins Securities Research.
Legal Matters
This publication is issued and approved for distribution in Canada by Desjardins Securities Inc., a member of IIROC and CIPF. In the US,
this publication is issued via the exemptive relief described in SEC Rule 15a-6, and through reliance on Desjardins Securities
International Inc., a member of FINRA and SIPC.
This publication is provided for informational purposes only, and does not constitute an offer or solicitation to buy or sell any securities
discussed herein in any jurisdiction where such offer or solicitation would be prohibited. The securities mentioned in this publication
may not be suitable for all types of investors; their prices, value and/or income they produce may fluctuate and/or be adversely affected
by exchange rates. This publication does not take into account the investment objectives, financial situation or specific needs of any
particular client of Desjardins Securities. Before making an investment decision on the basis of any recommendation made in this
publication, the recipient should consider whether such recommendation is appropriate, given the recipient’s particular investment
needs, objectives and financial circumstances. Desjardins Securities suggests that, prior to acting on any of the recommendations
herein, you contact one of our client advisors in your jurisdiction to discuss your particular circumstances. Since the levels and bases of
taxation can change, any reference in this publication to the impact of taxation should not be construed as offering tax advice; as with
any transaction having potential tax implications, clients should consult with their own tax advisors. Past performance is not a
OFFICES guarantee of future results.
Montreal
1170 Peel Street
This publication may contain statistical data cited from third party sources believed to be reliable, but Desjardins Securities does not
Suite 300 represent that any such third party statistical information is accurate or complete, and it should not be relied upon as such. All
Montreal, Quebec H3B 0A9 estimates, opinions and recommendations expressed herein constitute judgments as of the date of this publication and are subject to
(514) 987-1749 change without notice.

Toronto Although each company issuing this publication is a wholly owned subsidiary of Desjardins Group, each is solely responsible for its
145 King Street West contractual obligations and commitments, and any securities products offered or recommended to or purchased or sold in any client
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(416) 867-6000 by Desjardins Group, and (iv) will be subject to investment risks, including possible loss of the principal invested.
Calgary The Desjardins trademark is used under licence.
110 9th Avenue SW
Suite 410 © 2010 Desjardins Securities International Inc. and Desjardins Securities Inc. All rights reserved. Unauthorized use, distribution,
Calgary, Alberta T2P 0T1 duplication or disclosure without the prior written permission of Desjardins Securities is prohibited by law and may result in
(877) 532-6601 prosecution.
 Desjardins
Securities
Research Industrials Paper & Forest Products
Patrick Bartlett, CFA (416) 867-3760 Steels Pierre Lacroix, CFA (514) 281-4231
Head of Research John Hughes (416) 867-3778 pierre.lacroix@vmd.desjardins.com
patrick.bartlett@vmd.desjardins.com john.hughes@vmd.desjardins.com David Rochow, Associate (514) 985-3576
Portfolio Strategy & Quantitative Research Transportation & Aerospace david.rochow@vmd.desjardins.com
Ed Sollbach, PEng, CFA (416) 867-6135 Benoit Poirier, CFA (514) 281-8653 Jeremy Rosenfield, Associate (514) 985-1862
ed.sollbach@vmd.desjardins.com benoit.poirier@vmd.desjardins.com jeremy.rosenfield@vmd.desjardins.com
Deep Jaitly, Associate (416) 867-2050 Etienne Durocher-Dumais, Associate (514) 985-3498 Real Estate
deep.jaitly@vmd.desjardins.com etienne.durocher-dumais@vmd.desjardins.com Jeff Roberts, CFA (416) 867-2048
Philippe Gear, Associate (416) 867-9039 Diversified Industries jeffrey.roberts@vmd.desjardins.com
philippe.gear@vmd.desjardins.com Pierre Lacroix, CFA (514) 281-4231 Vanessa Gravina, Associate (416) 867-8002
Consumer Discretionary pierre.lacroix@vmd.desjardins.com vanessa.gravina@vmd.desjardins.com
Retailing/Consumer Staples/Food & Beverages/ David Rochow, Associate (514) 985-3576 Telecom, Media & Technology
Food & Drug Retailing david.rochow@vmd.desjardins.com Maher Yaghi, CMA, CFA (514) 281-8664
Keith Howlett (416) 861-0728 Jeremy Rosenfield, Associate (514) 985-1862 maher.yaghi@vmd.desjardins.com
keith.howlett@vmd.desjardins.com jeremy.rosenfield@vmd.desjardins.com Matthew Logan, Associate (416) 867-3573
Chase Bethel, Associate (416) 867-3424 Martin Landry, CA (514) 985-3538 matthew.logan@vmd.desjardins.com
chase.bethel@vmd.desjardins.com martin.landry@vmd.desjardins.com Production
Financial Pooya Hemami, Associate (514) 985-7574 Karen Voon, Head of Production (416) 867-3585
Banks & Diversified Financials/Insurance pooya.hemami@vmd.desjardins.com karen.voon@vmd.desjardins.com
Michael Goldberg, CFA (416) 867-3758 Materials Marigold de Mesa (416) 867-3446
michael.goldberg@vmd.desjardins.com Metals & Mining marigold.demesa@vmd.desjardins.com
Stefanie Lau, Associate (416) 867-3752 John Redstone (514) 281-7088 Simon Dukes (416) 867-3756
stefanie.lau@vmd.desjardins.com john.redstone@vmd.desjardins.com simon.dukes@vmd.desjardins.com
Healthcare Aleem Ladak, Associate (514) 985-3573 Heather Snow (416) 867-8983
Pooya Hemami (514) 985-7574 aleem.ladak@vmd.desjardins.com heather.snow@vmd.desjardins.com
pooya.hemami@vmd.desjardins.com John Hughes (416) 867-3778 Translation
Energy john.hughes@vmd.desjardins.com Johanne Chevalier, C. Tr. (514) 281-4389
Oil & Gas Precious Metals johanne.chevalier@vmd.desjardins.com
Wendy Liu, CFA (403) 532-6611 Brian Christie (416) 867-3776 Administration
wendy.liu@vmd.desjardins.com brian.christie@vmd.desjardins.com Tonia Di Censo (416) 867-3584
Chris MacCulloch, Associate (403) 532-6617 Graham Markham, CA, CFA, Associate (416) 867-3769 tonia.dicenso@vmd.desjardins.com
chris.macculloch@vmd.desjardins.com graham.markham@vmd.desjardins.com Christine Wise (514) 281-2313
Allan Stepa, PEng (403) 532-6613 christine.wise@vmd.desjardins.com
allan.stepa@vmd.desjardins.com
David Hawthorn, CA, Associate (403) 532-6615
david.hawthorn@vmd.desjardins.com
www.desjardins-securities.ca
http://strategy.vmd.ca

Desjardins Economics
François Dupuis, Vice-President & Chief Economist Mathieu d’Anjou, CFA (514) 281-2336
Yves St-Maurice, Director & Deputy Chief Economist Benoit P Durocher desjardins.economics@vmd.desjardins.com
Francis Généreux
Martin Lefebvre

Equity Capital Markets

Paul Hardy (416) 867-1789
Head of Equity Sales & Trading
paul.hardy@vmd.desjardins.com

Sales
Paul Pint, CA, Head of Sales (416) 867-7590 Chung Kim (416) 867-3581 Rob Posthumus (416) 867-3580
paul.pint@vmd.desjardins.com chung.kim@vmd.desjardins.com robert.posthumus@vmd.desjardins.com
Kim Bettez (514) 281-2894 Stephen Lloyd, CFA (416) 867-3598 Wolfgang Rosner (514) 281- 8632
kim.bettez@vmd.desjardins.com stephen.lloyd@vmd.desjardins.com wolfgang.rosner@vmd.desjardins.com
Robert Dennison (416) 867-3587 Jamie Murray (416) 867-1396 Paul Sun, PEng, CFA (416) 867-1404
robert.dennison@vmd.desjardins.com jamie.murray@vmd.desjardins.com paul.sun@vmd.desjardins.com
Simon Dionne, Analyst (514) 985-5064 André Pagé (514) 281-2291
simon.dionne@vmd.desjardins.com andre.page@vmd.desjardins.com

Trading
Felix Bélanger (514) 985-5072 David Lailey (416) 867-8612 Michael Nicholishen (416) 867-3436
felix.belanger@vmd.desjardins.com david.lailey@vmd.desjardins.com michael.nicholishen@vmd.desjardins.com
Eric Bouchard (514) 985-1889 François Laplante, Head of Liability Trading (514) 281-7707 Mel Peralta (416) 867-1710
eric.bouchard@vmd.desjardins.com francois.laplante@vmd.desjardins.com mel.peralta@vmd.desjardins.com
Jose Estevez (416) 867-2266 Reid McGregor (416) 867-1232 Pierre-Olivier Tardif (514) 281-8771
jose.estevez@vmd.desjardins.com reid.mcgregor@vmd.desjardins.com pierre-olivier.tardif@vmd.desjardins.com
Meiwen Gouadec (416) 867-3423
meiwen.gouadec@vmd.desjardins.com

Administration
Lindsay Booth (Sales) (416) 867-3586 Angela Di Pede (Trading) (416) 867-1952 Marie-Claude Thériault (514) 281-4210
lindsay.booth@vmd.desjardins.com angela.dipede@vmd.desjardins.com marie-claude.theriault@vmd.desjardins.com
Yasmina Borki (Trading) (416) 867-2262 Jay Peralta (Trading) (416) 867-1888 Angelique Welsch (514) 985-1844
yasmina.borki@vmd.desjardins.com jay.peralta@vmd.desjardins.com angelique.welsch@vmd.desjardins.com
Jo-Ann Deguire (514) 281-7251
jo-ann.deguire@vmd.desjardins.com

Preferred Shares
John Nagel, Vice-President (416) 867-3535 David Paul (416) 867-3772 Alex Somjen (416) 867-3751
john.nagel@vmd.desjardins.com david.paul@vmd.desjardins.com alex.somjen@vmd.desjardins.com