Brien Lundin, in the August, 2014, edition of the Gold Newsletter, refreshes his buy of Inca One Resources Corp., recently 16 cents. Mr. Lundin said buy in July, 2014, at 17 cents. Assuming a $1,000 investment for the buy, the position is now worth $941. Mr. Lundin says Inca appears well on its way to profiting from the Peruvian government's decision to formalize the country's small-scale mining sector. The company's first processing plant, Chala One, is located in the Arequipa district, which contains more than 13,700 small-scale mines. The plant is currently operating at 25 tonnes a day, handling ore in the 0.5-ounce-gold-per-ton range. That translates to an annual cash flow of about $1.6-million. By year-end, Inca hopes to increase Chala One's capacity to 100 tpd by adding two 50-tpd ball mills already acquired. It is also working on deals with local miners to boost the average ore grade to 0.8 ounce per ton gold. If those goals come to fruition, annual cash flow will shoot up to $9.8-million. In the long term, the company plans to expand Chala One to 350 tpd and acquire three or four more plants for a combined 1,000 tpd. Regardless of where gold goes in the meantime, says Mr. Lundin, Inca's upside is tremendous.