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9/17/14

On the road


Your humble scribe is spending two days and one night in other places. No evening drinkies at The Blue Oyster planned, though.

Normal* service will resume tomorrow Thursday evening. Enjoy the Yellen show.


*whatever that means

9/16/14

"Fortuna Silver’s San Jose Mine Can Handle Lower Silver Prices"

Thus blares the headline on Kitco about Fortuna Silver (FSM) (FVI.to), as the site goes into its interview with CEO Ganoza.

Which means of course that its other mine, Caylloma, can't handle lower silver prices. QED.

This Modern World

A top level edition of my favourite cartoon today. Not pasting it here out of respect, go view at the source. But do so, it's wonderful.

More rebuttals to The Economist

Colin Snider has written a short follow-up post that rounds up the various reactions and rebuttals to The Economist and its highly misleading LatAm "history is not memory" article. Snider pulls together articles from several places that have criticized TE from different angles. Your humble scribe is included, though fortunately there's plenty more on offer from smarter commentators. You can find it here.

Scotia and the Blue Oyster Bar

This is what happens when you don't do your DD:

IKN Nerve Centre™ hears of an amusing incident at the Denver Gold Show. Last night Scotia Bank decided to play at host and invited a select band of WIMPs (Wonderfully Important Mining People; e.g. chairs, directors, CEOs etc) out for drinkies and chat in true corporate PR happytime style. The problem is that the Scotia flunkey in charge of organizing the event picked as venue Denver's premier gay and trans bar. No word on whether said flunkey still works for Scotia this morning, though we'll undoubtedly be able to update on that as the week progresses.

Here's a still from Police Academy and one of the memorable scenes from the Blue Oyster Bar.



Streaming royalty companies have a date with the law of diminishing returns

This in my inbox this morning:
MONTREAL, QUEBEC--(Marketwired - Sep 16, 2014) - Osisko Gold Royalties Ltd (the "Company" or "Osisko") (OR.TO) is pleased to announce that it has entered into an agreement with National Bank of Canada for a $100 million Revolving Credit Facility to be used for investments in the mineral industry, including the acquisition of royalties and the funding of precious metal streams. The facility may be increased by $50 million at Osisko's request. 
The Revolving Credit Facility will be secured by the Company's assets and will have a two-year term, which can be extended by one year. The facility is subject to initial standby fees of 0.30%. Drawn funds with base and prime rate advances will bear interest at a base/prime rate plus between 0.50% and 2.50% and LIBOR loans will bear interest at LIBOR plus between 1.50% and 3.50% depending on the Company's leverage ratio. 
Sean Roosen, Chair and Chief Executive Officer of Osisko, noted: "We are pleased yada yada continues here.

So what happens when the larger mining sector sees one small sector of the mining world making a crapload of money?
a) It ignores the smaller sector, congratulates them, wishes them continued good luck, gets back to work on its unprofitable business model. 
b) It copies the moneymaker.
Yup, you guessed it. The OR.to news this morning is bad news for the streaming companies run by mediocrity. Yup Nolan, we be lookin' right atcha.

9/15/14

Just when you thought it couldn't get any worse for B2Gold $BTG (BTO.to) than its performance in August...

...September came along.

We noted back on August 25th in this post that BTO was underperforming the PM ETF benchmark, GDX. So here we are three weeks later and...


...not only has the gap grown to a 9% advantage for GDX vs the supposed "industry leading growth story", but BTO is now UNCH on the year. But don't fret The Clive, people aren't going to starting laughing in your face in Denver this week. They'll do it behind your back.

Peru GDP July 2014 1.16%

Here's the news, here's the chart, over there on the right is the new figure added in:


The government and the probiz press is now busily spinning this figure as good news. They think we're idiots.