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7/1/16

Naughty naughty Asanko Gold (AKG): Selective disclosure is illegal

IKN knows the Canadian regulatory authorities read this blog (OSC, IIROC etc) and this post, ladies and gentlemen of those offices, is for you. Canada Day or not, time for you guys to pick up the phone and ask Peter Breese and his merry band a few pertinent questions.

We noted earlier this week that an insto known as K2 Associates published a report on Asanko Gold (AKG) (AKG.to). We know that K2 are short AKG and we know their publication is one of those known as a "hit piece", providing the public with (what they say) is evidence that the stock is overvalued. Also for what it's worth, this desk has had a few exchanges with other houses and anal ysts since then and there are a range of view out there, from "it's a BS report" to "they have a point". Finally, I would like to make clear that I have no position or opinion on AKG, IKN is strictly neutral

But now for the reason for today's post: It has come to light that after the K2 report was published, AKG held a conference call for anal ysts. However, the ConfCall was not made public, it was invitation only, there is no record of the ConfCall happening and the company almost certainly gave this small and select band (let's call them "the friends of AKG") material information that has not yet been made public. That's the kind of cheap trick that calls into doubt the reputation of any company, not just a producing miner current under attack from people who accuse them of hiding facts from the public. It's also ilegal, as Newcrest found out to its chagrin when it was fined for giving selective disclosure in 2014 (and in that case Newcrest could almost be called innocent and making a genuine mistake).

This latest twist potentially explains why AKG is down in New York trading today when just about anything else in the mining sector is up.




IKN ad revenues update

We haven't done one of these posts for quite a while and I know a few of you are interested in the subject, plus there's been a sea-change in the cash brought in by the Google adverts on this blog and things are different from the last time we made mention, so here goes:


Last month (June 2016) revenues from the little adverts you see on these pages reached U$260.30, which is the best number since 2011. That's also a big change from the middle of last year when , for reasons unknown, revenues slumped to under $100/month on a couple of occasions. 

I don't know the exact reasons for he improvement in earnings, but I think it's because of 1) more viewers of the blog (there's been a big uptick in viewing figures in 2016 and 2) Google getting its act together on mobile device adverts and scoring more revenue from hand-held screens. The interesting bit is the second one, because that would make GOOG the stock a decent buy coming into earnings season if this small and completely anecdotal example is emulated across the market.

And finally, theres' no need to write in and mock, I know $100 or $200 a month is hardly a king's ransom and not the kind of cash that changes anyone's life. But it's enough to pay household bills, it feels like 'free money' this end and I'm enough of a number nerd to care about datasets. Which is why I bother.

One hundred years ago today

There were other days and other battles of course, some of them (e.g. Verdun) had already happened, but the first day of The Somme, July 1st 2016, has gone down as the emblematic slaughter of the First World War. It would be very easy to add to the mountains already written but it would bound to be trite in nature so rather than any extra words of mine, we'll go with some immortal ones from somebody who lived and died in the trenches.

Strange Meeting
Wilfred Owen (1893 - 1918)

It seemed that out of the battle I escaped
Down some profound dull tunnel, long since scooped
Through granites which Titanic wars had groined.
Yet also there encumbered sleepers groaned,
Too fast in thought or death to be bestirred.
Then, as I probed them, one sprang up, and stared
With piteous recognition in fixed eyes,
Lifting distressful hands as if to bless.
And by his smile, I knew that sullen hall;
By his dead smile I knew we stood in Hell.
With a thousand fears that vision's face was grained;
Yet no blood reached there from the upper ground,
And no guns thumped, or down the flues made moan.
"Strange, friend," I said, "Here is no cause to mourn."
"None," said the other, "Save the undone years,
The hopelessness. Whatever hope is yours,
Was my life also; I went hunting wild
After the wildest beauty in the world,
Which lies not calm in eyes, or braided hair,
But mocks the steady running of the hour,
And if it grieves, grieves richlier than here.
For by my glee might many men have laughed,
And of my weeping something has been left,
Which must die now. I mean the truth untold,
The pity of war, the pity war distilled.
Now men will go content with what we spoiled.
Or, discontent, boil bloody, and be spilled.
They will be swift with swiftness of the tigress,
None will break ranks, though nations trek from progress.
Courage was mine, and I had mystery;
Wisdom was mine, and I had mastery;
To miss the march of this retreating world
Into vain citadels that are not walled.
Then, when much blood had clogged their chariot-wheels
I would go up and wash them from sweet wells,
Even with truths that lie too deep for taint.
I would have poured my spirit without stint
But not through wounds; not on the cess of war.
Foreheads of men have bled where no wounds were.
I am the enemy you killed, my friend.
I knew you in this dark; for so you frowned
Yesterday through me as you jabbed and killed.
I parried; but my hands were loath and cold.
Let us sleep now ...

It's so bullish out there, that...

...the market has even decided that Primero Mining (PPP) can make money now.

 
That's as impressive a signal as they come.

Anyway, happy birthday Canada. You get to play catch-up on Monday when the USA does happy birthdays.

6/30/16

Guatemala: Today El Tambor....

...and tomorrow, who knows?

Yesterday the Guatemala courts ruled that the El Tambor (aka La Puya) gold mine in Guatemala, owned by private US company Kappes (KCA), must be closed and its licence suspended because it did not have the necessary "social licence permit", in other words formal permission from its local community to operate.

For the record, Tahoe Resources (TAHO) at Escobal doesn't have that piece of paper, either. Consider it next in the firing line.

Ralph Rushton leaves Gold Group

The Simon Ridgway empire, that is. Just so you know.

Light aircraft

We like, therefore we share. Thanks due to reader PK.

In Race To The Bottom news...

...the British Pound (GBP) does the obvious the moment that the CenBank chief says the obvious:







At least we don't get President Boris, thanks to the nefarious "Et Tu Brute" Gove, who read the cowardice of Johnson correctly. We should be grateful for small mercies, though the way in which Boris Johnson played lead lemming and then stops at the edge to watch his fellow citizens make the big drop...that's fun.



Porter Stansberry now shorting Almaden Minerals (AMM.to) (AAU)

With the stock at U$1.56, this morning Porter Stansberry has decided to put "buy to" price of U$1.30 on the stock, effectively calling short on Almaden to the people that rocketed the junior up from its sub-dollar levels when he started this BS-pump. Unsurprisingly AMM is selling off this morning on the news.

6/29/16

Argentina's new 500 Peso banknote

As from tomorrow, June 30th 2016, this goes into circulation in Argentina (front and back shown):


The new 500 Peso banknote takes over from the 100 Peso note as Argentina's biggest denomination note and it's about time, too. With the forex standing at ArgP$15.29 to one US Dollar, it means that up to today the biggest note, the 100, had the buying power of U$6.54 and people either had to credit card even for small-scale purchases or carry around bulky wads in their pockets.

Anyway, the new 500 has a U$32.70 equivalent and makes more sense. Nice picture of a jaguar on it too, a resident of the far North of the country.

Continental Gold (CNL.to): The Ron Stewart factor

One of Canada's most respected anal ysts, Ron Stewart of Dundee upped his target on Continental Gold (CNL.to) yesterday afternoon, calling the investment opportunity "compelling" along the way. The reaction:






Don't mess with the best, the best don't mess.

Dalradian (DNA.to) and your lyin' eyes

Via mail, your humble scribe was accused of "waaaaay over reacting" (sic) on the call to sell Daradian Resources (DNA.to) made Sunday evening, due to the new political risk uptick, and the advice move any cash in DNA to other mining places. Let's examine evidence:



And said evidence suggests that dumping a five day 14% underperformer isn't so much of an over-reaction, more a smart call. One can only assume the "waaaaay over reacting" (sic idem) comes from a DNA long who is either ignorant or nervous. Or both.

PS: Galantas Gold (GAL.v) is 20% down since Brexit, too.