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6/18/11

I liked this post from Jesse's Café Américain...

....this post right here, because it fits well with this great George Carlin rant that a friend sent over to me last night.


Here's an except from the Jesse piece. Read it then watch Carlin, because they say the same thing. The styles are somewhat different though.

"The effective tax rates of the super wealthy are less than 15 percent, because they draw a major portion of their annual increase in wealth from capital gains and dividends, and unrecognized entitlements. as well as a wide menu of tax avoiding schemes.

"And while they moan about the nominal headline tax rates, paid only by the 'little people' even if they do not know they are little, corporations and the truly wealthy have not enjoyed just low effective tax rates in the post WW II era. And yet it is still not enough.


"In light of the severe unemployment problems plaguing a large portion of families, austerity seems like a cruel joke, a
coup de grâce delivered by the bankers to the income producing classes who depend on labor in the creation and delivery of real products, and not artificial arbitrage and gaming the system.

"But on the other hand, stimulus seems just another excuse for the special interests to put on the feedbag once again to the detriment of the many of the next generation. There is no comparison between the Obama Administration and the New Deal in terms of real change and productive innovation.


"There has been a very strong recovery in corporate profits in the non-financial sector, and the financiers barely missed a beat in distributing a healthy chunk of GDP to themselves in bonuses, while the ashes of the financial crises which they caused still glowing.  And their behaviour in the mortgage and derivatives markets has been despicable.  I am appalled that people put up with this sort of thing, much less defend it out of some mistaken belief in neoliberal 'free markets.'"

Read the whole thing here

Long the metal, short the miner

A chart.

The good news for the miners is that this cannot last. The bad news is that gold might drop down instead of the miners rebounding back up. Time will tell.

6/17/11

James West bails on his pump'n'dump dog Seafield (SFF.v) as well as 27 other juniors

A bottom signal if there ever was one, scamball pumper James West has had enough of the market and has just called sell on a whole bunch of his picks. Here's number one of the list of 28, Seafield Resources (SFF.v), the one he said "accumulate to $1" without knowing anything about the BS drill pump job.
Sell the dogs:
1. Seafield Ventures Ltd. (TSX.V:SFF)
We learned that the CEO and CFO, Tony Roodenburg and James Pirie, doubled their own severance pay this year prior to being replaced as management.
Unethical, for sure, and possibly illegal. We are going to break this story next week, so I’m saying get out of Dodge while you still can, cause this could really take the share price lower.

It's hilarious to hear a scumbag pumper like West talk about "unethical" behaviour. Look in the mirror, dumbass. DYODD and don't listen to the market charlatans. Above information supplied by A. Friend.

The Friday OT: Calle 13 and Ruben Blades (feat La Chilinga); La Perla

The best new sounds out of LatAm right now come from Calle 13 and this song from a couple of years ago features the outright masterful Panamanian salsero Ruben Blades, a singer who's about 14 cuts above the rest of his genre....prohibido olvidar, baby.



La noche me sirve de sábana....this song is so damned cool

Gold Resource Corp (GORO): Lucky management

David Reid, co-founder, director VP Expl, Secretary and treasurer of Gold Resource Corp (GORO) has been cashing out.


According to the filings that the rabid GORO faithful either never read or ignore, Between May 11th and May 19th, he sold 65,701 of his shares. If we assume he got an average of U$28 for each one (some he sold in the 27s, some in the 28s) he'd have raised U$1.84m from the sales. 

Oh, and by the way, company President Jason Reid sold 24k of his shares worth around U$700k on May 18th and 19th, too. Same kind of prices, same excellent luck at market. Cue owly:

Portage Resources (POTG.pk), a pump and dump scam

Portage Resources (POTG.pk) is a Quebec based scam that's doing the rounds amongst the French speaking community up there, so I am reliably told. The chart shouts scam...

...and the regulatory filings (find em all here) screams SCAM in a really loud, horror-movie-girl-victim-about-to-leave-film-early type of scream (like...err..loud, dude). 

Let's take for example its latest quarterly, filed 19th April for the period ending Feb 28th 2011. We note that POTG.pk has 637 million shares out, assets of U$533 (yeah, that's five hundred and thirty-three dollars) and liabilities of U$129k, to boot. There are manifold red flags in the Reg Fs for anyone that takes a look...so go look and avoid this scam being run by a scumbag named Paul Luna Belfiore who learned how to scam the market sheep by working at the disgusting Ecometals (EC.v) and its merry band of scamsters and shitbags, then known as Goldmarca, a few years back. Belfiore recently took contol of 480m of those outstanding shares, around 75% of the caboodle. Smacks as normal biz practice for an upstanding junior?

You have been warned.

Mining newswire of the day

To give you an idea of the current atmosphere for junior mining companies and how much their news releases affect their share prices, here's one from Reuters this morning:

New York, June 17 (Reuters) UPDATE 4 - Junior exploration mining company Wonderful Resources Inc (WON.to) today announced it had discovered the lost city of El Dorado in the middle of the Brazilian Amazon rain forest.  Wonderful Resources' CEO George Bloggs remarked in the company press release that bullion gold and jewelry found in an initial reconnaissance of the location is estimated at 56 metric tonnes of pure gold.


Shares of Wonderful Resources fell in late afternoon thin trading to 56 cents (Canadian).


And yeah I made all that up, but you get the picture right?

Chart of the day is....

...copper, dailies.


Glass half-empty or half-full?

6/15/11

Two snaps from many taken on a good day

Bubbles (but not edible)

Part of today's fun that carries on tomorrow. As for an outside shot, here's a clue for non-subbers (as those who read IKN110 know where I am already). 
There's been a lot to like so far, so expect news on positive developments this Sunday. I'm also impressed with the 21st century and its ability to give this humble scribe a decently fast interwebnetpipes connection at 14,760 feet above sea level.

On the road


Posting will be light-to-zero today Wednesday and tomorrow Thursday, as your humble scribe is doing things that involve going places on a tight time frame and a lack of interwebnetpipes. Normal service will resume Thursday evening...probably....if I feel like it....if not Friday. Until then, kick back with Jack.
"What is that feeling when you're driving away from people and they recede on the plain till you see their specks dispersing? - it's the too-huge world vaulting us, and it's good-bye. But we lean forward to the next crazy venture beneath the skies."

6/14/11

Thinking about Pan American Silver (PAA.to) (PAAS)

It does seem like good value compared to specific market peer tickers.

What might put you off buying PAAS is the belief that the silver market is currently going up shit creek without a paddle, but if you believe that you're probably a technical analyst and it's beyond the ability of this humble corner of cyberspace to help you. So overall it's probably a pity your author won't ever buy the stock, what with its cruddy record on environment, health & safety and social issues in Peru. Money isn't everything, y'see. DYODD

In Gold We Trust: Standard Chartered and a good solid piece of fundy analysis on the gold sector

Reader 'PB' today alerts this humble scribe to a report that he found over at the quality blog Jesse's Cafe Américain". Entitled "In Gold We Trust" and published today June 14th by Standard Chartered, there's lots for those into juniors and gold to get their collective teeth into. Here are the front page bullet points to get you started:

Slow production growth: Most market commentary on gold centres on the direction of US dollar movements or inflation/deflation issues – we go beyond this to examine future mine supply, which we regard as an equally important driver. In our study of 375 global gold mines and projects, we note that after 10 years of a bull market, the gold mining industry has done little to bring on new supply. Our base-case scenario puts gold production growth at only 3.6% CAGR over the next five years.


High cost hurdle: Our IRR analysis of the major gold projects under construction globally reveals that the long-term gold price will need to be US$1,400/oz to justify capital cost. For greenfield projects, the gold price would need to be closer to US$2,000/oz to generate the minimum required return. Escalating costs of building gold mines could result in delays at many projects.


Deficit  market: The limited new supply comes at a time when central banks have turned from being net sellers to significant net buyers of gold. The result, in our view, will be a gold market in deficit, even assuming flat growth in demand. With the supply-demand balance so out of kilter, we see the gold price potentially going to US$5,000/oz.


Our hunting ground – the juniors: We believe the gold juniors are the best way to play a rising gold price, as they offer good growth at attractive valuations in terms of EV/resource within our universe of 106 gold companies. We think the gold majors, with their low growth, will continue to underperform the juniors, particularly those depending on expensive acquisitions for growth.


Zhaojin Mining our top pick: Among the gold companies we cover, Zhaojin Mining stands out for its superior production growth and low production cost. More importantly, it has built a track record in low-cost expansion through exploration and acquisition. We also like Zijin Mining for its cheap valuation and Philex Mining, which has the potential to create value by spinning off its petroleum business and restarting its Bulawan mine

So now we've got you in the mood, go read the whole thing here and thanks again to reader 'PB'

In Gold We Trust 061411

McEwen Mining! May I suggest EGO.to as the ticker symbol?


So we now know why Minera Andes (MAI.to) tanked 10% yesterday Monday, as word must have leaked out to the inside trading scumballs in Canada about Rob McEwen's latest brainwave. Here's how today's NR kicks off, click through for more:

Press Release Source: US Gold Corporation and Minera Andes Inc. On Tuesday June 14, 2011, 8:00 am EDT
TORONTO, ONTARIO--(Marketwire - 06/14/11) - US Gold Corporation (NYSE:UXG - News)(TSX:UXG - News) and Minera Andes Inc. (TSX:MAI - News)(OTC.BB:MNEAF - News) announce that Rob McEwen, Chairman, CEO, and largest shareholder of both companies has proposed to combine these companies to create a high growth, low-cost, mid-tier silver producer focused in the Americas. Mr. McEwen's investment in the combined company (market close on June 13, 2011) would be approximately US$ 345 million. CONTINUES HERE

And the cherry on the cake? If (when) this deal goes through, the newly fused company gets to be called "McEwen Mining Inc", which caused me to wipe coffee off my nice new computer screen this morning.

If I were a long time supporter and holder of MAI.to I'd be hopping mad today. Because of McEwen's desire to "do something" and "take initiative" and "be innovative", MAI.to holders are faced with the future of seeing their valuable producing asset at San José, very good looking prospects around the area and the spin-out bonus of Los Azules be diluted to kingdom come by the pisspoor track record of gold exploration at US Gold (UXG), which to date has only found one decent silver prospect (the gold assets currently at UXG ain't never gonna happen) at El Gallo Mexico (i.e. for "US Gold" please read "Mexico Silver") that's already valued up to the hilt. Sadly for MAI.to longs, it's going to be very difficult to stop McEwen from applying the KY Jelly because as he owns 31% of shares and will be able to mesmerize enough of his faithful flock into believing this deal is good for them and not just his own ego the majority vote will be easy for him to reach.

0.4 shares of UXG is an insult! ForCryinOutLoud, HOC.L could offer a better deal than this. In fact, thinking about it, that might just happen....

Chart of the day is....

...this blurb with this table:

Market Vectors® Junior Gold Miners Index (MVGDXJ)
The quarterly review produced 23 additions (18 Canadian stocks) and 4 deletions (all Canadian) from the index. 
The changes of the index components will be implemented after the close of trading on Friday, June 17th, 2011 and will be effective the next trading day.

Adds

Est Demand / Supply
FVI CT Equity
FORTUNA SILVER MINES INC
4,260,779
BCM CV Equity
BEAR CREEK MINING CORP
2,612,782
MAG CT Equity
MAG SILVER CORP
1,532,146
OK CV Equity
ORKO SILVER CORP
4,391,395
GPR CT Equity
GREAT PANTHER SILVER LTD
4,467,599
ECU CT Equity
ECU SILVER MINING INC
10,657,909
AUMN UA Equity
GOLDEN MINERALS CO
407,051
AVR CT Equity
AVION GOLD CORP
13,222,891
TXG CT Equity
TOREX GOLD RESOURCES INC
11,968,748
TRR CV Equity
TRELAWNEY MINING AND EXPLORA
3,874,626
AR CT Equity
ARGONAUT GOLD INC
2,960,120
ATC CV Equity
ATAC RESOURCES LTD
2,528,876
SUE CT Equity
SULLIDEN GOLD CORP LTD
6,732,300
ORE CT Equity
OREZONE GOLD CORP
2,527,123
PZG UA Equity
PARAMOUNT GOLD AND SILVER
3,146,107
EDV CT Equity
ENDEAVOUR MINING CORP
4,002,054
BRD CT Equity
BRIGUS GOLD CORP
5,815,474
P CT Equity
PRIMERO MINING CORP
1,937,853



Dels


ANV US Equity
ALLIED NEVADA GOLD CORP
2,849,000
DGC CN Equity
DETOUR GOLD CORP
2,226,000
ASR CN Equity
ALACER GOLD CORP
9,581,950
EGU CN Equity
EUROPEAN GOLDFIELDS LTD
4,778,200


I was sent this info by several readers (i thank them all) as to why many of the stocks on the list were rallying while the rest of the sector found itself in the doghouse. It makes sense in yesterday's rallies of many issues, from the good silver stocks all the way down to the crud included, like ECU Silver (ECU.to). As well as that table, here's an example mail from reader "T", received this morning (permission to reproduce granted) and I agree with every point he made, fwiw:

Otto, I think the Bear creek rally yesterday was mostly, or at least partially due to their inclusion in the GDXJ, the junior gold ETF. As well as FVI, MAG, GPR, ATC, ECU and roughly 20 others. Look at the action in those vs the peers yesterday. Removed from the index were DGC, EGU, ANV, and Alacer. The index has an enormous effect on small companies. I think its about $2 billion in assets now, so a typical 0.5-1% position is $10-20 million. As an example, that's 2-4 million shares of BCM. Nuts. Funds obviously front run the ETF as you can see, which only makes me wonder why the changes are announced prior to the GDXJ purchases. I guess by law an ETF must disclose the changes so that a potential buyer knows what he is buying. It certainly sets up for some funny business.

6/13/11

Superb piece on copper by Andy Home of Reuters today

Reuters dude Andy Home is a must-read on copper and today he adds several degrees of intelligence to the current debate on China demand levels. Get the note here, meanwhile below one of the charts lifted from the note.

click to enlarge

FYI, the next Casey Research pump and dump scam is using PC Gold (PKL.to)

Lobito James reco'd PKL.to to his A-List clients on Friday, so it's odds on that they'll get to sell to the larger International Speculator subs list when Lobito pumps this dog to them next month.


The day the scamrunning scumballs at Casey Research are closed down and their immoral practices stopped will be a good day for market transparency. DYODD.

Why Bear Creek Mining (BCM.v) is rallying this morning and why Vena Resources (VEM.to) could rally soon, too

Bear Creek Mining (BCM.v) has been nastily beaten up these last few weeks but is enjoying a decent relief rally bounce this morning, probably due to the roadblock being lifted in the Carabaya region (where its world-class Corani project is located) yesterday evening (read more about that here).

The protests in Carabaya aren't really about mining and more about the plans to build a big hydro power station in the Inambari area of that region, a massive power plant that would drown a sensitive ecosystem's worth of valley. So this morning we have news on that aspect too and that's where the potential for a rally in Vena Resources (VEM.to) comes into play. Peru's national daily La Republica reports plans to scrap the Inambari power station and replace it with a nuclear power plant instead. Guess where the U would come from for that project, folks? Yup, just down the road (literally) at Macusani, the place where Cameco and Vena have their JV exploration program, already have a multi-million Lbs U resource under 43-101 compliance and look like adding substantially to said resource later this year when the new and good looking drill results are factored in.

DYODD, cos I'm long VEM.to (but more for its Azulcocha zinc mine, less for this U that's suddenly looking like a decent asset adding bonus prize again)

Chart of the day is....

...GDP per capita in Bolivia, 1990 to 2010, data from the World Bank.


It accompanies this text extract from Bolivia Weekly:

The World Bank representative in Bolivia, Óscar Avalle, said yesterday that Bolivia is about to graduate from a “concessional” country to join the ranks of countries like Brazil and Argentina. Avalle explained that this “graduation” was provoked by a prudent macroeconomic policy begininning in 2006 and that Bolivia may transition from a poor country to a middle income country in the next two years. During these years Bolivia has averaged a 4% growth rate despite the global recession. Avalle reminded listeners that the World Bank forgave $1.5 billion of Bolivia’s national debt in 2006 and then began loans again in 2008 which now reach $257 million dollars. Avalle said that World Bank disbursement rates have risen from 9% to 22% which brings Bolivia on par with other countries.

It must be really frustrating for the rabid Evo opposition in Bolivia to see the country progressing so well under a Commie Pinko, no?

6/12/11

The IKN Weekly, out now


IKN110 has just been sent to subscribers. Lots of pretty charts and gloomy words.

Happy birthday bro!

Somewhere in a far off land, one of your author's younger siblings is almost certainly nursing a rather nasty hangover right now. Happy birthday pal.

Sunday freebie

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