The Daily IKN email digest, get all daily posts sent to you next day (& no ads)


The Great Royalty Freak-Out

Love this piece in Global Mining Observer today, in which the intrepid AW gives the Emperor's News Clothes treatment to this most annoying of new mining sector fads. Example:
Some recent examples have been farcical. Corvus Gold recently dumped its Alaskan assets, selling them for $120,000, but CEO Jeff Pontius framed the deal as “the creation of a Corvus royalty portfolio”, because the company kept royalties over the discarded tenements.

But the real story in Guatemala this week may turn out to be Jimmy Morales, not OPM

That's because the last round of opinion polls now have the from-out-of-nowhere candidate Jimmy Morales leading voter intention and Manuel Baldizon from the powerful LIDER party, who looked like a shoo-in just a couple of months ago, no longer leading the polls.

For the Otto Pérez Molina resignation story...

...I recommend Latin America Daily Briefing on this link today, which does a fine job of rounding up the story and bringing all the salient points of OPM's decision to resign as President yesterday evening.

FF.v: All hands to the pumps (updated)

Daniel Ameduri's earning his "investor relations" fee from First Mining Finance (FF.v) today, I see:

This is in fact a window on one of my weak points as an investor. I keep forgetting that there's a near unlimited supply of stupid people out there. Daniel, on the other hand, understands this perfectly.

UPDATE: Daniel writes in (screenshot of mail):

For what it's worth I can state categorically that I have never had a penis in my mouth, let alone sucked on one. It really doesn't do to make such wild assumptions, Daniel.

Minera IRL (MIRL.L) ( appoints Jaime Pinto as new chair: Two observations

1) At least Pinto was smart enough to make it non-executive.

2) Apart from that it means nothing at all. Totally irrelevant to the future of IRL.


Apropos of nothing: Faith No More; Underwater Love

What fine music.

The real reason it's fine music in my book: The vocals for sure yes, the slap bass forsure, the beautiful lead guitar intromissions yep, but what drives me to crazyloveness about this song is Mike Bordin's drumwork. This is the way John Bonham used to drive Led Zep. 

Minera IRL ( (MIRL:): Daryl Hodges's problem is that he can't open his mouth without lying

My thanks to reader 'SW' for the headsup.

Today sees another report in Mineweb that gives Daryl Hodges the chance to give "his side of the story" (I think that's what they say in these situations) and as befits a liar, it takes scant sentences before we hit the plain untruths mixed up in the spin and blather. Here's part of the Mineweb script:
Hodges flatly denies this. “I did not go there to present anything. I was led to believe that I was going to do a meet-and-greet with the local community leaders. My community manager only advised me that I was expected to give a speech to a crowd of some 500 just minutes before the meeting began. So I was not properly prepared, and therefore kept my comments at a high level, described a bit of my background, and emphasized my strong belief in good community relations.” 
Hodges points to his experience in mining – which he has been involved in since 1977, including working in many jurisdictions across the globe. “I have plenty of experience working with local constituents, communities, and cultures, and I am also very sensitive to the volatile situation in Peru this past spring, so this whole notion of me walking into a community meeting and insulting people is so far beyond me, it’s ridiculous. And for the record, as opposed to changing the agreement with the community (as has been intimated), I said we would keep it exactly in place, and improve on it,” he says.

The facts are different. 
  • In fact, nobody asked Hodges to go to Ollachea and meet with the community.
  • In fact, it was Hodges who insisted on several occasions to go to Ollachea and meet with the locals.
  • In fact, he was strongly advised by several quarters, including his community relations team (the same people he denegrates and tries to lay blame upon in that note), not to make the trip.
  • In fact, Hodges decided to overrule every single piece of advice he heard on this subject, which came from people both inside and outside the company.
  • In fact, he knew very well that he'd have to stand up and make a speech. He even got to choose the person who'd translate his speech for him (he went for VP Exploration Don McIver).

These aren't subjective opinions, there are dozens of witnesses who'll testify to all those. He knew he'd have to make a speech because HE INSISTED ON GOING THERE AND GIVING A SPEECH, EVEN AFTER LISTENING TO THE EXPERIENCED PROFESSIONALS AND OTHER ADVISORS WHO TOLD HIM ON REPEATED OCCASIONS NOT TO GO. "Meet and greet" my rear end, he knew he was going to a formal assembly and in Peru that means only one thing. Speeches from the invited and questions from the floor.

The problem may be found in that second paragraph excerpted, because Hodges has such a high opinion of himself and his abilities, despite all evidence to the contrary, that he thinks he can just stroll into any old town and talk with any culture or community, immediately winning them over with a flashing smile or two. Therefore more facts:
  • He cannot speak Spanish.
  • He does not understand the culture in Ollachea at all. 
  • He might not have intended to insult those present that evening, but you can take it to the bank that he did just that and in spades. Perhaps it was deliberate or perhaps it was accidental due to his plug dumb ignorance of where he was and who he was talking to (combined with a large dose of hubris) but sure as eggs are eggs, he pissed off the Ollachea locals bigtime.
  • He specifically told the people present that there would be changes in the way Minera IRL operated and did things. The problem that Señor Hodges has on this score is that a video was shot of that meeting and it's all on the record*. What he thinks he says (when it suits him) is one thing, what he said is quite another. 

So to sum up, the man is a liar and is stupid to boot. Seriously, how many lies do you need to catch a guy in before the reality of the situation starts to manifest? 

The question arises as to why he still cares about Minera IRL, now that he's been fired. Surely you don't have a continued interest in what's going on, Daryl? Heaven forbid you'd try to influence things from the outside, eh? No boardroom power struggle, y'say? You're so cute.

*And yup, I've seen it.

For the record, I've just had a bloody good cry