The Daily IKN email digest, get all daily posts sent to you next day (& no ads)
1) Go straight to the voting page here
2) Check 'News of the Restless' (about 2/3rds the way down the list)
3) Hit 'Vote' button at the bottom.
4) Err, that's it.
Quite interesting, I thought. Thanks to 'MR' for the headsup.
The Group of 20 will today pledge to refrain from competitive devaluations and commit to market- determined exchange rates, a G-20 official said, citing a statement to be released after talks end in South Korea.
The International Monetary Fund will be tasked with producing a broader report on currency policies and studying economies with persistant trade imbalances, the official said.
Play loud and get your bop on. Love it.
|Change in metals prices, July 20th to date (U$)|
|20th July||Today||% change|
Here's a chart that shows the percentage changes in the spot prices of the metals in question.
This one is the silver numbers
As for calculated revenues, here's what comes out.
1) Click on the mask to make bigger.
2) Print off a copy.
3) Paste onto a piece of card, or even that Spiderman mask that you bought last year but didn't use because you finally realized it was lame before it was too late.
4) Wear, enjoy, get double rations of sweeties on the night.
Another free service, humbly offered to you by IKN.
1) Go straight to the voting page here
2) Check News of the Restless (about 2/3rds the way down the list)
3) Hit 'Vote' button at the bottom.
4) Err, that's it.
....on the rise in Colombia oil production, taken from this Reuters report yesterday.
Here's the opening blurb of the Reuters piece:
BOGOTA, Oct 21 (Reuters) - Colombia's oil production rose to its highest level in a decade in September with output of 798,000 barrels per day (bpd) up 17.4 percent from a year ago, the National Hydrocarbons Agency said on Thursday.
Oil investment has boomed in Latin America's No. 4 oil producer since a U.S.-backed security crackdown in 2002. The Andean nation is trying to boost crude output to 1.5 million bpd in the next few years.
Output from CONTINUES HERE
I visited Ucore Rare Metals’ (UCU.V) Bokan Mountain project in mid-August along with fellow Rare Metal blog editors Jack Lifton and Tracy Weslosky.
The Dotson Ridge deposit is small with low TREO (total rare earth oxide) grade but heavily skewed toward the HREOs (heavy rare earth oxides). The individual mineralized zones are very narrow (generally less than a mineable width of 1.5 meters) and are discontinuous along strike. The deposit will require selective mining and/or physical or mechanical separation of pay zones from wall rock using very high cost mining methods.
The company apparently is reluctant to commence the next logical step: Permitting, test mining, and bulk sampling during the 2011 field season. I must conclude the sole corporate exit strategy is to sell the project but have doubts that any larger player in the REE sector is seriously interested at this juncture. With current knowledge, the Bokan Mountain project is not viable. I agree with Jack that it will require private or government subsidies if a significant deposit can be delineated and if it is ever mined.
As of June 30, Ucore Rare Metals had 105.4 million shares outstanding, 134.0 million shares fully diluted, 24.5 million warrants at an average price of 26 cents, market cap of about $65 million, and $4.4 million in cash and securities. The company must go to the market for financing later this year or in early 2011. Ucore Rare Metals’ share structure is highly diluted given the stage of its flagship project and the potential for a significant increase in its share price is therefore limited.
Cass, David Maurice2010-09-07 2010-09-08 Direct Ownership : 51 - Exercise of options -90,000 410,000 0.52002010-09-07 2010-09-08 Direct Ownership : 51 - Exercise of options +90,000 0.52002010-09-07 2010-09-08 Direct Ownership : 10 - Acquisition or disposition in the public market -50,000 0.78002010-09-07 2010-09-08 Direct Ownership : 10 - Acquisition or disposition in the public market -5,000 0.79002010-09-07 2010-09-08 Direct Ownership : 10 - Acquisition or disposition in the public market -19,500 0.80002010-09-07 2010-09-08 Direct Ownership : 10 - Acquisition or disposition in the public market -10,500 0.81002010-09-07 2010-09-08 Direct Ownership : 10 - Acquisition or disposition in the public market -5,000 0.82002010-09-08 2010-09-09 Direct Ownership : 51 - Exercise of options -100,000 310,000 0.52002010-09-08 2010-09-09 Direct Ownership : 51 - Exercise of options +100,000 0.52002010-09-08 2010-09-09 Direct Ownership : 10 - Acquisition or disposition in the public market -30,000 0.78002010-09-08 2010-09-09 Direct Ownership : 10 - Acquisition or disposition in the public market -15,000 0.79002010-09-08 2010-09-09 Direct Ownership : 10 - Acquisition or disposition in the public market -45,000 0.80002010-09-08 2010-09-09 Direct Ownership : 10 - Acquisition or disposition in the public market -10,000 0.8100
Bales, Kevin2010-09-02 2010-09-10 Direct Ownership : 51 - Exercise of options -30,000 0.26002010-09-02 2010-09-10 Direct Ownership : 10 - Acquisition or disposition in the public market -30,000 0.63002010-09-28 2010-09-30 Direct Ownership : 51 - Exercise of options -20,000 0.26002010-09-28 2010-09-30 Direct Ownership : 10 - Acquisition or disposition in the public market -20,000 0.7300
Cooke, Bradford2010-09-20 2010-09-24 Direct Ownership : 10 - Acquisition or disposition in the public market -10,000 0.6900
Osler, Tim R.2010-09-21 2010-09-26 Direct Ownership : 10 - Acquisition or disposition in the public market -3,500 0.70002010-09-21 2010-09-26 Direct Ownership : 10 - Acquisition or disposition in the public market -3,500 0.70002010-09-21 2010-09-26 Direct Ownership : 10 - Acquisition or disposition in the public market -8,000 0.70002010-09-22 2010-09-26 Direct Ownership : 10 - Acquisition or disposition in the public market -20,000 0.70002010-09-22 2010-09-26 Direct Ownership : 10 - Acquisition or disposition in the public market -20,000 0.7000
Rushton, Ralph2010-09-03 2010-09-06 Direct Ownership : 10 - Acquisition or disposition in the public market -7,500 0.7000
Here's Setty this morning (excerpted, of course)
Now we’re all friends here (literally!) so I’m not going to get bitchy about this, but I need to note that when a small publication like this one scoops the big guys, it’s considered to be the polite, ethical thing to do to give a little link or mention. For future reference, the phrasing is something like “The change was first reported on the Web site Setty’s notebook.” But you already know that.
DYODD, dudettes and dudes. And read blogs to find out first.
*I know y'all need to worry about something...just feeding the neuroses a little :-)
"Our fourth edition of our Mining and Exploration Prospects report continues to present some of what we view are the more interesting emerging stories in the base and precious metals market today. As noted before, the list is by no means complete and we have restricted it to 30 names to be manageable. As such, there are many other high quality prospects out there."
....the number of cellular lines in service in Peru, 2000 to 2010.
"From what I can remember, because I still have blanks in my memory about what happened, there was a moment when the goalkeeper in the rival team was being treated for an injury. At that point a person from the Sport Ancash training staff came on and, as is customary in any match, we shared their drinks", said player Andy Salinas.
"I asked to share a bit of their drink because I was thirsty and they offered me a squeeze bottle. The trainer had a six-pack and offered me one of them. The drink had a bitter, unnatural taste", added the player.
Salinas said that a little while after drinking the liquid he had difficulty seeing, he fainted and woke up in hospital.
Another player, Luis Coello, said that after drinking the liquid offered he felt "heavy" and "tired".
1) note sales numbers for the quarter in gold, silver, whatever
2) go over and get London PM fix prices for your metals
3) work out the average PM fix price for that quarter
4) do the math (ounces X price)
5) once you have your number, compare it later to the revenue result reported by the company in question
6) if the estimate gets close to the reality over time, you can begin to rely on the calculation more closely
UPDATE: Anonymous (yawn) writes in the comments section:
Here are the charts. Maybe, but not a datapoint that will change things much. As you see, it's more run of sales rhythm more than a big inventory build-up that's in play. There is a common point though; look at several quarters' worth of information, not just one. The trend is your friend. You want charts? We got charts. DYODD.Anonymous said...The revenue maybe down but they built up inventory to realize higher prizes in the future/now
Mexico’s drug violence now affecting junior exploration mining companiesA very interesting report came out of Reuters last week (15) that we’re going to reproduce here in its entirety (and thanks to JS for the headsup). Your author has heard plenty of underground rumblings over the last year about this-or-that project that isn’t moving forward very quickly in the northern part of Mexico due to the threats of violence from drug gangs but this report, I believe, is the first time a mainstream news source has picked up on the story, got quotes from a mining executive whose company is exposed to the region (which probably was’t easy either) and shone a light on the potential problem.
(Reuters) - Mining firms have shuttered a handful of exploration projects in remote areas of Mexico as the industry grapples with threats from drug cartels and rising security costs, Mexico's mining chamber said on Thursday.Cartels are threatening mining operations not just in the violent corridor along the U.S.-Mexico border but in isolated, mountainous regions in other parts of Mexico, where traffickers grow marijuana and heroin poppies, the chamber said.Executives belonging to Mexico's National Mining Chamber have reported cases of drug traffickers extorting, kidnapping, attacking and selling drugs to their workers.Theft of precious metals is on the rise in Mexico, executives said. The government also said this week it caught one cartel member selling iron ore to firms exporting to China."We are living a very difficult situation," said Ramon Davila, the COO of Vancouver-based First Majestic Silver Corp."There are more and more specific cases of threats from organized crime trying to penetrate areas of mining exploration and operation," he said.Miners have long seen Mexico, a major copper and silver producer, as a top destination for investment in Latin America. Spending on new projects is on the rise and the industry sees investment at over $13 billion from this year through 2012.But as bloodshed mounts in Mexico's war on drugs, which has killed over 29,000 people since late 2006, there are some cases of small companies fleeing the country's most perilous areas.Davila said he knew of at least two companies in Durango state that had shut down exploration projects due to fears of drug violence.President Felipe Calderon has pledged to crack down on drug cartels and says spiraling violence is a sign the government is making progress as it captures capos and cartels splinter.But some analysts warn drug violence could eventually undermine the economy as Mexico struggles out of a deep recession and courts international investors."Unfortunately, where we operate the response from authorities has not been as fast as we would have liked," Manuel Luevanos, the mining chamber president, said.STOLEN GOLD, OREAbout two weeks ago, 150 gold and silver bars worth $3 million were stolen from a mining company in the central state of Zacatecas, said Luevanos, also an executive at top silver producer Fresnillo.Canadian mining giant Goldcorp built a landing strip to fly gold out of its Los Filos mine as the country's highways become more fraught with banditry, said Salvador Garcia, the company's Vice President.Garcia said security costs had risen 5-10 percent this year compared to last year.Some traffickers have started their own side business in illegal mining, the attorney general's office said this week.Steel giant ArcelorMittal recently lodged a complaint claiming iron was being sacked from its concessions in the western state of Michoacan, Jesus del Campo, an official at the economy ministry, told Reuters.He said some foreign mining companies were encouraging illegal mining by paying cash for tonnes of iron ore, used to make steel in China, without asking for permits.Mining executives said drug traffickers were encouraging drug use among some of their employees who make relatively high salaries in poor areas."A mining camp is an attractive market for drug dealers," Luevanos said. Companies have taken to giving workers drug tests and firing those who turn up positive.Drug violence around mining facilities has caused concern for the industry. Fresnillo had a case of workers gunned down in front of their families at a mining camp where employees live, Luevanos said."This is not just worrying the management. It is sowing terror among (mining) families and many have fled," he said.
IKN back. This, I believe, is a story we’ll need to watch very closely going forward. The only company on our ‘Stocks to Follow’ list that would fit into the potential danger zone right now is (name removed from public blog) so our own exposure is low. Also, let’s be absolutely clear and say XXX.XX has not reported or mentioned any problems vis-á-vis the drug gangs. However, it’s definitely a factor that we need to consider as part of the political risk melting pot going forward, something we made a point of mentioning the last time we ran our regional political risk table in IKN70, September 5th. This is what we wrote on that occasion, by way of a reminder:
Mexico: We drop Mexico down to 31 this quarter, taking two points from the ‘political stability’ column due to the ever-worsening image problem Mexico has with its so-called “narco-war”, which is hardly a real war but more a three-cornered fight between narcogroup, narcogroup and police/army that’s spiralling a little too far out of control.
The problem is mainly one of national image right now compared to any direct threat to the mining industry, but that’s still something we need to take into account. Also, the risk is clear for any junior mining company operating in the North of the country and it wouldn’t take much more than an unfortunate incident between the narcos and a mining camp or exploration geologists to get really bad looking headlines in the mining trade papers.
Be clear that the vast majority of Mexico is unaffected by this current escalation of drugs related violence, with business continuing as usual. The problem for juniors is mainly one of negative image (the potential investor asks the company IR person, “You’re in Chihuahua/ Sonora/Coahuila/etc State? Oh, any cocaine problems around your way?”) but the risk of future direct problems has grown somewhat, it must be admitted.
....the gold/silver ratio, three years showing.
Broker 1: "Hey, remember this time last week when Timmy G said that he'd "work very hard to make sure that we preserve confidence in a strong dollar"?"
Broker 2: "Yeah, that was a good one. Mind you, even the gold market fell for it...for about half a day or so."
Broker 1: "Yup, I just loaded up. Seems like a no-brainer looking back now, doesn't it?"
Broker 2: "Dude it was a no-brainer then, too."
Conventional wisdom on Peru: New miracle economy.....stable.....top performing....great growth......new best friend......can't be bettered......expanding local market
Never forget that most advice you receive on LatAm finances is laden out by complete dumbasses.
Here for good measure is the 1 year Pediment Gold (PEZ.to) chart.
Here's the NR linked and here are the two bits you'll need to know.
"TORONTO, ONTARIO--(Marketwire - Oct. 19, 2010) - Argonaut Gold Inc. and Pediment Gold Corp. are pleased to announce that they have entered into a binding agreement (the "Agreement") to complete a business combination (the "Transaction") to create a premier mid-tier gold producing company focused on the Americas.
"......all of the Pediment common shares (the "Pediment Common Shares") issued and outstanding immediately prior to consummation of the business combination shall become exchangeable into the common stock of Argonaut on the basis of 0.625 of a common share of Argonaut for each one (1) Pediment Common Share. Based on the closing price of Argonaut on the Toronto Stock Exchange ("TSX") on October 18, 2010, the exchange ratio implies an offer price of C$2.56 per Pediment common share and values Pediment's equity at approximately C$137.1 million on a fully diluted in-the-money basis."
Riverside Resources (RRI.v): An interview with John-Mark StaudeTracking down Riverside Resources’ (RRI.v) head man John-Mark Staude and keeping him in one place long enough to answer a few questions isn’t as easy as you’d imagine, but your author finally got his Q&A session with this workaholic and genuinely nice guy late last week. Here’s the result for your reading pleasure.
IKN: Riverside stock has been on quite a run recently, John-Mark. To what do you put this run down to? Is it the general market atmosphere for juniors or is there something more company-specific?
John-Mark Staude: We believe that Riverside has been and is still significantly undervalued in the marketplace because we have a portfolio of strong assets and the marketplace in the short term values single asset, "go for it all" drilling explorers. We appreciate that approach but have been able to maintain a very tight share structure and converted our capital into ownership of precious metal assets. As exploration is done by us and our partners on our Mexico properties including anticipated drill results from Libertad, recent high grade Ag results from Clemente and early this coming week new gold results from Chapalota projects we hope to continue to see strong gains in share price coincident with de-risking, adding value to our properties.
The general market atmosphere has been very good, with particularly realization that gold needs to rise relative to the US dollar. Riverside has nearly 2 M Oz of gold in the ground at our 1,200,000 ounce gold resource that was drilled and estimated prior to the Toronto Stock Exchange’s rule 43-101 and is a non-43-101 inferred resource and secondly with the Capitan gold body where we have a volume of mineralized material that is still wide open and summarized in the filed 43-101 report. Riverside has 24.5M shares issued and is trading around US$1.00 which makes for a ~$25,000,000 market capitalization. Riverside has $3,000,000 in cash so the current Enterprise Value is $22,000,000. With gold now over $1350 and other insitu values exceeding $30 / oz the fact that just Sugarloaf at just $18/oz explains the full market cap of Riverside. Riverside has other open-pit style gold bodies and targets, drill results coming, exploration by partners, two strategic alliances that fund at least over $1,000,000 in exploration each year with no dilution to Riverside shares.
The two precious metals assets alone indicate in-situ value for Riverside at $20/oz of a market value of between ~$30-60M. This doesn’t even take into account the Company’s ten other value driving projects and initiatives. So we believe the market rise is both the overall market and also realization of the ounces Riverside has but still we are far from valued compared to with our asset base.
Then the other 100% owned assets in Mexico plus the newly drilled gold body at Libertad and the high grade silver at Clemente combine to give Riverside an exceptional portfolio and at a relatively low market cap; thus we see good upside potential right now.
IKN: Your new big partner is Cliffs (CLF). Can you update us on how things are going in the JV?
JMS: The Strategic Exploration Alliance with Cliffs is going well with Riverside now having identified targeted properties and in the field following up on locations that Riverside has generated from our proprietary 44,000 mineral location integrated database. The database provides a unique tool to rapidly launch this major generative program and now Riverside’s technical team is in the field, in fact I am conducting this interview right now from the Cliff’s field program as we are working as a team to highlight priority targets for the coming two month push.
IKN: Is there any news regarding Sugarloaf Peak coming up, or are the RRI efforts now largely aimed at your Mexican operations and assets?
JMS: Sugarloaf Peak is now on an joint venture asset capitalization track for Riverside where we have added value, shown already a double from the near surface now down to 200m open pit depth and with gold above $1300 this project looks increasing interesting. Riverside has focused this year on value, making a discovery and making some money along the way in Mexico. By making money we have limited the need for large financings and our capital is best spent in Mexico on our high quality Tajitos open pit gold asset plus having discovered new high grade silver areas in Mexico.
We expect to have news out from Sinaloa and Durango Mexico as projects have been advanced and now Riverside has at least 8 drill targets so we are in a very strong position for joint ventures and going forward ourselves.
IKN: So what, in your opinion, should be regarded as the company’s current flagship asset or project?
JMS: Our current flagship where we are spending our own money is the Tajitos gold project because it is in the exact right location among the large open pit gold systems of western Mexico and because we have high grades up to 1 ounce per ton and drill targets ready to go on the property. Riverside has successfully moved from drilling up a mineralized block at Capitan in Durango then a large gold inferred resource of Sugarloaf Peak in Arizona and now has worked up Tajitos. We realize that it takes a bit of thinking to appreciate having three large good gold assets and will be unlocking the value for shareholders over the coming 90 days with a significant push on deals and delineating the gold bodies.
IKN: You’re very much regarded as Mexico experts, John-Mark, but are there plans to expand into other LatAm countries? I ask this, because when we met for breakfast you just happened to be in Peru. Was that purely by chance or are there plans afoot?
JMS: Riverside looks for great opportunities and we are not bound by a country. My being Peru was for a growth opportunity and we will continue to rapidly go after assets, deals, alliances with a primary focus toward Latin America. The Arizona asset was an example as it came across my desk and we immediately moved and acquired it. This one asset substantiates our company value and is not even our lead asset now that we have high grade open pit gold in Mexico. As I have worked in over 20 countries and lived in different parts of Latin America we actively on the prowl.
IKN: What’s the current cash position and approximate burn rate at RRI? Are you planning to spend more aggresively and accelerate programs thanks to the current bullishness in the metals markets?
JMS: Riverside is well-funded with a current cash position of approximately $3M in the treasury, and a historic burn rate of ~$1.5M per year. We are more aggressively working to get deals done, help others who have raised money to access our projects and make discoveries and drill up our projects. We brought in temporary business development people to specifically help increase the deal flow and we ourselves have already included in our annual budget drilling and could be more aggressive based on results. We are pleased with Clemente, Tajitos and now Chapalota. Yes, Riverside has a set of very good assets and we will deliver deals that expose our shareholders to at least 6 advancing projects in the coming 3 months. It is exciting for Riverside and we are in action to leverage off the bullishness in the metals markets.
IKN: Thanks again for your time, I know what a busy guy you are. Any last words for IKN readers?
JMS: Yes, a final plug for our Youtube videos. Riverside through our YouTubeVideos, www.youtube.com/user/RiversideResources and our website www.rivres.com aim to continually provide information that can help investors and people interested in the exploration business. We hope readers will contact us via email email@example.com or call us 1-877-RIV RES1 (or 1 778 327 6671 x 333) to find out more. We truly aim to share ideas as we stand for “knowledge is golden” and are working to convert ideas into value for shareholders.
The Presidents of Bolivia of Bolivia and Peru will leave behind them years of political fights and "relaunch" the relationship between the two member states of the Andean Community when they meet on Tuesday in the Peruvian port of Ilo, according to the Bolivian head of State.
Evo Morales said on Monday in a press conference that his meeting with his Peruvian counterpart Alan García was made possible by the recent decision in Lima to send back two right wing ex-functionaries of Bolivia who had escaped to Peru in order to evade justice on charges of corruption.
It will be, "A Presidential encounter in the city of Ilo that has the objective to relaunch, impluse give new vigour, a renovation to bilateral relations with Peru", announced the indigenous governor. Continues here
Greystar (GSL.to) finally gets round to informing the market something that IKN Weekly readers have known for eight days
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 18, 2010) - Greystar Resources Ltd. (the "Company") (TSX:GSL - News; AIM:GSL) announces that the Ministry of Environment, Housing and Territorial Development (Ministerio de Ambiente, Vivienda y Desarrollo Territorial MAVDT) has officially confirmed the date for the Public Hearing to consider the Company's Angostura Project Environmental Impact Study ("EIS"). The hearing will be held on November 21st, 2010 in California, Santander the town closest to the project site, at 9:00 am local time.
As part of the process established by the MAVDT, Greystar will conduct two prior informational hearings in the department of Santander. The first meeting will take place in California, Santander on November, 3rd, and the second one will be held in Vetas on November 4th, 2010.
Steve Kesler, President and CEO of Greystar Resources commented, "We are pleased that yada yada continues here
......to this section of IKN75, published on October 10th:
Greystar Resources’ (GSL.to) environmental hearingGreystar Resources (GSL.to) is not a stock we follow or recommend here, but the company does have a key political date with Colombian authorities coming soon so today we take time to give a headsup on proceedings.First the quick and dirty background. GSL went through a share price slump earlier this year when Colombia’s Environment Ministry requested a new environmental impact study (EIS) from the company (4). The reason for the request was that its ‘Angostura’ project in Colombia didn’t meet the requirements of the country’s newly modified mining code, with the specific problem being the planned open pit mine encroaching on the protected ‘Paramo’, a region of Colombia high above sea level that is apparently a biologically sensitive ecosystem. The share price then rebounded in style when the company announced on May 31st (5) it had successfully appealed the decision and the case would go to arbitration. The price chart seen here (right) speaks eloquently of the effect this process had on the share price at the time. We also see the lacklustre performance of the stock since then, perhaps due to this pending arbitration process
We are now less than a month from the start of that process. The first stage will be on November 3rd and 4th when informative sessions for the public are held on the case. Then on November 21st the formal audience takes place that will allow all those pro and contra the project to voice their opinions on the record. Once the formal audience is complete, the final decision as to whether Angostura is allowed to go ahead or is stopped is left to the Ministry of the Environment. As far as this author can tell (after checking the relevant papers and websites) there’s no set time limit for the Environment Minister’s decision and so it may come in days or months, we simply don’t know (but typical LatAm time schedules are suspected). In the case of a ruling against the project Greystar would likely have room to appeal to Colombia’s judiciary, but even a successful appeal would add mountains to the timeline in all likelihood.
...copper, weekly candles.
UPDATE: Make that three hundred and sixty reasons, with Top Pick ANM.v trading at $6.54 right now. We've been in it since $1.42. Just sayin'.
I've had this tune in my head all weekend. Now it's your turn.
Here are the lyrics. We heart Les VRP, best French band ever amen.
Nous avions rendez-vous a la piscine Toi et moi, tous les deux Sans mes copains, sans tes copines Tous les deux en amoureux Ta soeur mongolienne Ta soeur schizophrène Ta soeur a tout gâché La raison m'a quitte Sur le bord du petit bassin Nerveux je craignais ton absence J'aurais mis ma tête dans ton maillot de bain Si j'avais su que tu trimbalais Clarence Ta soeur débile mentale Ta soeur hydrocéphale Ta soeur a tout gâché La raison m'a quitté Ta soeur mongolienne Ta soeur schizophrène Ta soeur a tout gâché J'ai failli me noyer