I would suggest getting a little exposure to Gold can you afford not too ?

1. Daily Letter | 1
18 February 2009
Canaccord Adams is the global capital markets group of Canaccord Capital Inc. (CCI : TSX|AIM)
The recommendations and opinions expressed in this Investment Research accurately reflect the Investment Analyst’s personal,
independent and objective views about any and all the Designated Investments and Relevant Issuers discussed herein. For important
information, please see the Important Disclosures section in the appendix of this document or visit
http://www.canaccordadams.com/research/Disclosure.htm.
Metals and Mining -- Precious Metals
and Minerals
Steven Butler 1.416.869.7918
steven.butler@canaccordadams.com
John Vinnai 1.416.869.7289
john.vinnai@canaccordadams.com
GOLD’S RUN NOT YET DONE; RAISING PEAK
GOLD SCENARIO TO $1,100/OZ
As gold passes through our previous $950/oz peak target price (for equity target price
setting), we remain confident in the bullish view on gold. As such, we are raising our peak
gold price by a further $150/oz to $1,100/oz gold. Given the leverage to gold, our equity
target prices have increased by approximately 20% (Figure 1). Our official 2009 earnings
and cash flow estimates also reflect a bump in gold price to $975/oz from $900 (Figure 2
and 3).
It is fair enough that gold may be in a bubble, but we think the bubble is still being blown
up. Overall global financial market conditions remain weak and we believe the safe haven
flight to gold can continue. Credit risk, while lower than most recent highs, is as high as
the first peak last March which coincided with the collapse of Bear Stearns; but, gold is still
lower than the US$1,003/oz peak set one year ago (Figure 4). Bear Stearns was a relatively
small foreshadowing event in what was a growing list of much greater financial calamities
that have occurred over the past year.
Of particular interest has been the abrupt turn from the depths of deflation a few months
ago (Figure 5). While inflation has not yet registered in near-term expectations, we
ultimately believe that inflation and general devaluation of paper currencies will be the
result of the concerted monetary and fiscal policies to reflate the global economy.
Gold’s run since autumn 2008 has been a true bull run, rising despite the strength of the
US dollar (Figure 6) and outperforming virtually ever other commodity and currency class
and setting recent new highs in Euro, GBP and CAD (among other) currency terms.
Indeed, the biggest factor in the current spike in gold has been increasing momentum of
investment demand as demonstrated by the abrupt rise in SPDR gold trust holdings (Figure
7). Already year-to-date, this trust has added over 228 tonnes of gold for an annualized
increase of over 1,700 tonnes in this trust alone. By reference, all ETF holdings in gold last
year rose by only 308 tonnes to end 2008 at 1,209 tonnes. Clearly, a small portion of the
immense amount of money on the sidelines (money market funds in the US grew by 23.4%
in 2008 to $3.83 trillion) has made its way into gold. While the SPDR gold trust has been
on quite a run, keep in mind it is still only a $31 billion investment, relatively paltry when
measured against the trillions on the sidelines and trillions in bailouts and stimulus
packages.

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18 February 2009
The record-setting level of investment demand is more than offsetting the slackening levels
of fabrication demand, lower de-hedging demand and potentially higher scrap supply at
these high prices. The low level of recent central bank selling (and noteable purchases by
the Russian central bank) has also provided some support. We expect that a renewed
Central Bank Gold Agreement (with potential IMF sales) in Europe will provide additional
support for another five-year term commencing September 2009.
Ratings and Targets
As mentioned above, we have raised our peak gold scenario for equity target price setting
by $150/oz to $1,100/oz. See Figure 1 for details. Target prices have increased by
approximately 20% given the leverage to our higher peak gold price. Superior NAV
leverage to gold is delivered by Golden Star, Northgate, Barrick and Agnico-Eagle. We have
not materially changed target multiples except in the case of Eldorado Gold (return to
historically higher multiple) and Silver Wheaton (balance sheet/financial covenant relief
following recent equity financing).
There are no ratings changes as a result of this update.
Figure 1: Ratings and Targets
Implied Peak NAVPS @ Peak NAVPS Spot P/NAV Peak P/NAV Mult. @ Peak Mult.
Rating Target Return $950 $1100 Increase/ @ 5%/$970 $950 $1100 Increase/
Currency Price Previous New Previous New % Previous New (Decline) Current Previous New (Decline)
SENIOR PRODUCERS
Barrick Gold US$ $37.29 BUY BUY $39.25 $51.00 37% $26.17 $34.18 31% 1.37x 1.50x 1.50x 0%
Goldcorp US$ $31.84 HOLD HOLD $29.25 $37.50 18% $19.55 $23.46 20% 1.58x 1.50x 1.60x 7%
Kinross Gold US$ $19.17 HOLD HOLD $19.00 $23.50 23% $13.06 $16.20 24% 1.41x 1.45x 1.45x 0%
INTERMEDIATE PRODUCERS
Agnico-Eagle Mines US$ $54.21 BUY BUY $59.00 $72.00 33% $32.66 $41.08 26% 1.60x 1.80x 1.75x (3%)
Centerra Gold C$ $5.30 SPEC BUY SPEC BUY $7.50 $7.50 42% $9.39 $12.04 28% 0.43x 0.65x 0.50x (23%)
IAMGOLD US$ $8.58 R R R R R R R R R R R R
Randgold Resources US$ $50.08 BUY BUY $51.25 $63.00 26% $34.18 $42.02 23% 1.42x 1.50x 1.50x 0%
Yamana Gold US$ $9.38 BUY BUY $12.00 $14.00 49% $9.29 $10.88 17% 1.01x 1.30x 1.30x 0%
Sr./Int. Capped Average 30% 24% 1.37x 1.45x 1.46x 1%
JUNIOR PRODUCERS
Eldorado Gold US$ $8.86 HOLD HOLD $7.50 $10.65 20% $5.71 $7.10 24% 1.52x 1.32x 1.50x 14%
Gold Wheaton C$ $0.30 BUY BUY $0.65 $0.65 120% $0.55 $0.50 (8%) 0.52x 1.00x 1.00x 0%
Golden Star US$ $1.82 HOLD HOLD $1.30 $2.15 18% $2.56 $3.94 54% 0.66x 0.50x 0.55x 10%
Northgate US$ $1.46 BUY BUY $1.50 $2.15 47% $2.99 $4.26 42% 0.46x 0.50x 0.50x 0%
SILVER PRODUCERS
Pan American Silver US$ $17.42 HOLD HOLD $17.00 $20.00 15% $12.52 $13.57 8% 1.29x 1.35x 1.45x 7%
Silver Wheaton US$ $7.47 BUY BUY $8.25 $10.00 34% $9.21 $8.67 (6%) 0.84x 0.90x 1.15x 28%
Source: Canaccord Adams estimates
Company-specific updates
Our valuations and estimates have been updated for three recent equity financings in:
• Kinross Gold (KGC : NYSE | HOLD);
• Pan American Silver (PAAS : NASDAQ | HOLD); and
• Silver Wheaton (SLW : NYSE | BUY).
• In addition, we have adjusted our Gold Wheaton (GG : NYSE | HOLD) valuation and
estimates to exclude any value for the gold stream from the Tulsequah project given
yesterday’s suspension of construction activities by Redcorp Ventures and remove for
the time being (pending financing arrangements), the $75 mm option to acquire an

3. Daily Letter | 3
18 February 2009
additional 15% offtake from First Uranium’s MWS project. In addition, our valuation
now assumes equity conversion of the C$50 mm payment to FNX in July 2010 at an
assumed price of C$0.50/share (range will be $0.20-$1.00, our assumption of
$0.50/share is neutral to NAV but dilutive to EPS estimates beyond July 2010). The
impact of these revisions is largely offset by the raising of our peak gold scenario and a
weaker Canadian dollar exchange rate (US$/C$0.80 versus $0.85 previously) for an
unchanged target price of C$0.65.
• Our Eldorado model has been updated to reflect the 2008 year end update and 2009
guidance.
Gold & Silver price revisions for earnings/cash flow purposes
Gold
For earnings/cash flow purposes, we have increased our 2009 gold price estimate by
$75/oz to $975/oz, and our 2010 estimate by $50/oz to $900/oz. Our 2011 and long-term
estimates (2012 and beyond) are unchanged at $800/oz and $750/oz.
Silver
For earnings/cash flow purposes, we have increased our 2009 silver price estimate by
$1.25/oz to $13.50/oz, and our 2010 estimate by $0.25/oz to $13.75/oz. Our 2011 and
long term estimates (2012 and beyond) are unchanged at $14.00/oz.
Earnings and Cash Flow Changes
The biggest increase in 2009 cash flow estimates is noted in Golden Star (GSS : AMEX |
HOLD), Agnico (AEM : NYSE | BUY) and Centerra (CG : TSX | SPECULATIVE BUY).
Figure 2: Metals Prices and FX estimates
Q4/07A Q3/08A Q4/08A Q4/08A % Change vs. 2008A 2009E 2010E 2011E 2012E Long
Q3/08A Q4/07A Term
Gold (US$/oz) US$/oz $789 $870 $799 (8.2%) 1.2% $873 $975 $900 $800 $750 $750
Silver (US$/oz) US$/oz $14.24 $15.00 $10.23 (31.8%) (28.1%) $14.99 $13.50 $13.75 $14.00 $14.00 $14.00
Copper US$/lb) US$/lb $3.29 $3.49 $1.79 (48.7%) (45.6%) $3.16 $1.50 $2.00 $2.50 $2.25 $2.00
Zinc (US$/lb) US$/lb $1.21 $0.81 $0.54 (32.7%) (54.9%) $0.86 $0.63 $0.70 $0.90 $1.00 $0.80
US/CDN Exchange $1.02 $0.96 $0.83 (14.0%) (18.9%) $0.94 $0.85 $0.90 $0.90 $0.90 $0.90
US/AUS Exchange $0.89 $0.89 $0.67 (24.3%) (24.4%) $0.85 $0.70 $0.75 $0.80 $0.80 $0.80
US/EUR Exchange $1.45 $1.50 $1.32 (12.2%) (8.9%) $1.47 $1.40 $1.34 $1.35 $1.30 $1.30
REAL/US Exchange R$ 1.79 R$ 1.67 R$ 2.32 (28.0%) (22.9%) R$ 1.84 R$ 2.25 R$ 2.20 R$ 2.20 R$ 2.20 R$ 2.20
Source: Bloomberg, Canaccord Adams estimate

4. Daily Letter | 4
18 February 2009
Figure 3: EPS and CFPS revisions
EPS Estimates CFPS Estimates
2008E 2009E 2008E 2009E
Previous New % chg Previous New % chg Previous New % chg Previous New % chg
SENIOR PRODUCERS
Barrick Gold $1.85 $1.85 0% $2.07 $2.52 22% $3.01 $3.01 0% $3.24 $3.76 16%
Goldcorp $0.55 $0.55 0% $0.46 $0.60 30% $1.29 $1.29 0% $1.16 $1.34 15%
Kinross Gold $0.42 $0.42 0% $0.70 $0.86 24% $0.87 $0.87 0% $1.33 $1.53 15%
INTERMEDIATE PRODUCERS
Agnico-Eagle Mines $0.21 $0.21 0% $0.67 $0.89 33% $0.73 $0.73 0% $1.39 $1.69 22%
Centerra Gold $0.53 $0.53 0% $0.59 $0.80 36% $0.99 $0.99 0% $0.99 $1.20 21%
IAMGOLD R R R R R R R R R R R R
Randgold Resources $0.67 $0.67 0% $1.22 $1.50 23% $1.36 $1.36 0% $2.05 $2.37 16%
Yamana Gold $0.43 $0.43 0% $0.45 $0.56 24% $0.74 $0.74 0% $0.90 $1.01 13%
JUNIOR PRODUCERS
Eldorado Gold $0.21 $0.22 3% $0.29 $0.33 15% $0.34 $0.35 4% $0.41 $0.46 11%
Gold Wheaton $ (0.02) $ (0.02) 0% $0.02 $0.02 0% $0.01 $0.01 0% $0.04 $0.03 (10%)
Golden Star $ (0.18) $ (0.18) 0% $0.07 $0.14 108% $0.03 $0.03 0% $0.36 $0.47 30%
Northgate $ (0.06) $ (0.06) 0% $0.13 $0.20 59% $0.30 $0.30 0% $0.53 $0.64 20%
SILVER PRODUCERS
Pan American Silver $0.72 $0.72 0% $0.65 $0.88 36% $1.37 $1.37 0% $1.46 $1.69 15%
Silver Wheaton $0.34 $0.34 0% $0.29 $0.33 12% $0.44 $0.44 0% $0.47 $0.48 3%
Source: Canaccord Adams estimate
Figure 4: Spot Gold vs. Credit Risk
400
500
600
700
800
900
1000
1100
3-Jan-06 9-May-06 12-Sep-06 16-Jan-07 22-May-07 25-Sep-07 29-Jan-08 3-Jun-08 7-Oct-08 10-Feb-09
Gold$/oz
0
30
60
90
120
150
180
210
240
270
IBOXUMAEIndex
Gold $/oz IBOXUMAE Index
Source: Bloomberg, Canaccord Adams

5. Daily Letter | 5
18 February 2009
Figure 5: Spot Gold vs. Expected Inflation (1 Yr)
500
600
700
800
900
1000
1100
3-Jan-06 9-May-06 12-Sep-06 16-Jan-07 22-May-07 25-Sep-07 29-Jan-08 3-Jun-08 7-Oct-08 10-Feb-09
Gold$/oz
-7.00
-5.00
-3.00
-1.00
1.00
3.00
5.00
ExpectedInflation(%)
Gold $/oz USGGBE01 Index
Source: Bloomberg, Canaccord Adams
Figure 6: Spot Gold vs. Trade Weighted Dollar
500
600
700
800
900
1000
1100
3-Jan-06 9-May-06 12-Sep-06 16-Jan-07 22-May-07 25-Sep-07 29-Jan-08 3-Jun-08 7-Oct-08 10-Feb-09
Gold$/oz
70
74
78
82
86
90
94
DXY
Gold $/oz DXY
Source: Bloomberg, Canaccord Adams
Figure 7: SPDR ETF Gold Tonnes in Trust vs. Spot Gold Price
500
600
700
800
900
1000
1100
Dec-07
Feb-08
Apr-08
Jun-08
Aug-08
Oct-08
Dec-08
Jan-09
GoldInTrust(t)
700
760
820
880
940
1000
1060
SpotGoldPrice(US$/oz)
StreetTracks GLD:ETF Spot Gold Price
Source: Company Reports, Bloomberg

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18 February 2009
Investment risks
There are risks associated with share prices achieving our target prices and our financial
forecasts. Metal prices may not match our forecasts, and exchange rate fluctuations may
impact company earnings. Further, there are operating risks involved in all mining
operations. Technical, environmental, regulatory, and political risks can all impact
financial estimates and valuations.

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18 February 2009
APPENDIX: IMPORTANT DISCLOSURES
Analyst Certification: Each authoring analyst of Canaccord Adams whose name appears on the front page of this investment
research hereby certifies that (i) the recommendations and opinions expressed in this investment research
accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the
designated investments or relevant issuers discussed herein that are within such authoring analyst’s coverage
universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly,
related to the specific recommendations or views expressed by the authoring analyst in the investment
research.
Price Chart:* In order to obtain these (6 or more) stock price charts or additional applicable disclosures and
information concerning Canaccord Capital’s recommendations of companies under coverage
mentioned in this report, please contact Canaccord Capital at 1-800-382-9280 or visit
www.canaccord.com.
* Price charts assume event 1 indicates initiation of coverage or the beginning of the measurement period.
Distribution of Ratings:
Global Stock Ratings
(as of 4 February 2009)
Coverage Universe IB Clients
Rating # % %
Buy 339 60% 31%
Speculative Buy 68 12% 53%
Hold 135 24% 24%
Sell 23 4% 26%
565 100%
Canaccord Ratings
System:
BUY: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months.
HOLD: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months.
SELL: The stock is expected to generate negative risk-adjusted returns during the next 12 months.
NOT RATED: Canaccord Adams does not provide research coverage of the relevant issuer.
“Risk-adjusted return” refers to the expected return in relation to the amount of risk associated with the
designated investment or the relevant issuer.
Risk Qualifier: SPECULATIVE: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental
criteria. Investments in the stock may result in material loss.
Canaccord Research Disclosures as of 18 February 2009
Canaccord Adams is the business name used by certain subsidiaries of Canaccord Capital Inc., including
Canaccord Adams Inc., Canaccord Adams Limited, and Canaccord Adams, a division of Canaccord Capital
Corporation. Clients of Canaccord Adams, in the past 12 months, may have been clients of Canaccord Capital
Corporation, Canaccord Capital (Europe) Limited, Canaccord Capital Corporation USA Inc., and/or Adams
Harkness Financial Group Ltd.
The authoring analysts who are responsible for the preparation of this investment research are employed by
Canaccord Adams, a securities broker-dealer with principal offices located in Vancouver, Calgary, Toronto,
Montreal (all Canada), Boston, New York, San Francisco (all US) and London (UK).
In the event that this is compendium investment research (covering six or more relevant issuers), Canaccord
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access this material or for more information, please send a request to Canaccord Adams Research, Attn:
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disclosures@canaccordadams.com.
The authoring analysts who are responsible for the preparation of this investment research have received (or
will receive) compensation based upon (among other factors) the Corporate Finance/Investment Banking
revenues and general profits of Canaccord Adams. However, such authoring analysts have not received, and
will not receive, compensation that is directly based upon or linked to one or more specific Corporate
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and information barriers or firewalls have been used where appropriate. Canaccord Adams’ policy is

8. Daily Letter | 8
18 February 2009
available upon request.
The information contained in this investment research has been compiled by Canaccord Adams from sources
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9. Daily Letter | 9
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