...comes from Market Narrative in this post:
"...this is aided by the fact that most of the people who write about junior miners are fundamentalist Christians, racists, neo-Nazis, "paleo-conservatives", or at least far to the right of Strom Thurmond.
The good things about these people are:
- their thought patterns are terribly predictable.
- because of (1), you can easily fleece them out of all their cash.
- they're stupid enough to keep coming back for more.
Today's Friday OT is humbly dedicated to reader Kirsty H and it's two for the price of one.
First up, a bit of Lindisfarne:
And the second is Toni Basil's all-time classic.
Enjoy the haircuts, the make-up, the everything.
From left to right, Correa (Rafa), Castro (Fidel), Chávez (Hugo), Castro (Raúl)
A Kirchner psychiatrist analyzed the spot where an attempted assassination of a president is seen. He denounces the large quantity of K letters, a message that suggests "mental manipulation" according to the expert.
Thursday, 21 July
Scandal has erupted due to an advert in which Channel 13 publicizes its High Definition TV (HD) service. In it, a young female killer is seen trying to assassinate a supposed president of a European country who is waving from a balcony. The assassin misses the target and shoots a TV with HD images which is benig watched by a pair of pensioners in an apartment close to the site.
Up to now, all normal stuff, but the problems start with the inscriptions. Psychiatrist Marcelo Dignani, self-proclaimed "national and popular (i.e. Kirchner) militant, has made an analysis of the advert and found a large quantity of K letters that appear semi-hidden, as in the advert words in Spanish and a supposed East European language appear.
"My duty as a professional in the popular field is to warn (about this)", he said. There arer 120 K letters, between normal Ks, double Ks or reversed Ks", he revealed.
This video analysis was published under the title "Subliminal Anti K (Kirchner) Messages in Channel 13" by the Kirchnerite publicity agency Paco Urondo. They make referense to this advert as a proposal that incites "Magnicide".
All the details of how Peru's drug squad tracked and nabbed Nader in that above link.
...copper daily candles.
(Reuters) - Leftist Peruvian President-elect Ollanta Humala picked more centrists for his Cabinet on Thursday as he tries to reassure investors he will govern as a moderate in one of the world's fastest-growing economies.
To burnish the pragmatic image Humala sought to project during the campaign, he has hired two conservative economists who worked under departing President Alan Garcia and are respected on Wall Street to run the central bank and finance ministry.
UPDATE: Handy hint for those wishing to engage with your author via e-mail. Don't put "ecu.to" anywhere in the title line, as those mails tend to be deleted unread. Biondi shots served, the end.
...built to show that South American stocks are not having a vintage year so far.
So far at least. DYODD
- St. Mary Magdalene
- A reformed prostitute
- A home for reformed prostitutes
* Sets one-for-seven reverse split of common shares, warrantsFri Jul 15, 2011 5:20pm EDT
* To change name to PetroMagdalena Energy Corp
* Consolidation, name to change effective July 19 (Follows Alerts)
July 15 (Reuters) - Canadian oil exploration company Alange Energy Corp said it will effect a one-for-seven reverse split of its common shares to reduce volatility and to make the stock more attractive to institutional investors.
Toronto-based Alange will also consolidate its listed warrants on a one-for-seven basis, it said in a statement.
The company said it will change its name to PetroMagdalena Energy Corp, and that the shares and warrants will start trading on a post-consolidation basis from Tuesday under the symbols "PMD" and "PMD.WT".
Shares of the company closed at 21 Canadian cents on Friday on the Toronto Venture Exchange. (Reporting by Mayuresh Tungare in Bangalore; Editing by Joyjeet Das)
"So to sum up, there’s a small chance that SWC comes under pressure to drop this deal, with evidence supplied by the drop in the share price and backed up by the weakness giving rivals a potential opportunity to buy SWC on the cheap. Because of this, there’s a chance that SWC under its current management will not be able to close its desired deal and therefore PGM drops from its current “under offer” type prices. This is why I decided to leave the position last week, take the money and run."
Shockah! Gold down under $1600/oz on a US debt deal.....who could possibly have predicted such a thing?
Errr...me. On July 14th to be exact, in this post which said:
"Anyway, when all this stupidity about the US debt is behind us, expect gold to get jawboned down a bit. Might be over 1.6k by then, though"
That day gold closed at 1590. It then went to 1610 or so. Now it's 1587. DYODD
Legal Proceedings Against Monterrico Metals Settled20 July 2011Legal proceedings against UK-based Monterrico Metals PLC by 33 members of a peasant community in northern Peru were settled earlier today by compensation payments, without admission of liability. The claimants allege torture by the Peruvian police after protesting at Monterrico's Rio Blanco copper mine in Piura in August 2005 (for a video outlining the allegations and background to the case please click here). The settlement means a hearing at the UK High Court, scheduled for October this year, will no longer go ahead. One consequence of this is that the full details of the events of August 2005 are unlikely ever to be established or publicly disclosed. Nevertheless, the Peru Support Group welcomes the payment of compensation to those who allegedly suffered mistreatment.
The Rio Blanco mine has been a key focal point for our organisation since March 2006 when we sponsored a meeting in the Houses of Parliament in which the project was debated. During the meeting, local citizens’ organisations and representatives from Monterrico Metals expressed radically different analyses of both the events of August 2005 and of the wider effects of the firm’s operations on development in Piura. To establish the veracity of their claims, PSG President Lord Avebury suggested we send an independent delegation to the region to visit the sites in question and discuss the project with local organisations and experts. With Monterrico Metals’s assent, the delegation travelled to Piura in October 2006 and its conclusions were subsequently published in our report entitled ‘Mining and Development in Peru, With Special Reference to the Rio Blanco Project, Piura’ (March 2007). We have also supported the legal proceedings subsequent to the report by providing UK law firm Leigh Day, who represented the claimants, with political context to the case, facilitating contact with Peruvian organisations and helping to coordinate translations of witness statements.
Today’s settlement represents a significant achievement for the claimants and communities affected by the events of 2005. However, it has not resolved all the outstanding issues related to the Rio Blanco project. Domestic attempts to prosecute police and private security officers who allegedly committed the abuses are yet to make much headway. Many in Piura also express concern over the likely environmental impact of the Rio Blanco project (now owned by Chinese firm Zijn) when it begins production later this year. As such, further tensions between the local communities and the mine operator cannot be ruled out.
Consequently, the PSG will continue to closely monitor developments around the project in Piura for the foreseeable future. In the meantime, we encourage the mine’s new owner to engage in regular, participatory dialogue with the local communities in an effort to minimise the risk of renewed social conflict.
...a close-up of very recent action in the Gold/Silver Ratio (GSR) as a follow-on from last week.
The Julio Velarde news gets the Eurasia treatment in this note out today. Enjoy.
PERU: Humala sends strong signals of policy moderation, but medium term risks remain
19 July 2011 03:31 PM EDT
President-elect Ollanta Humala's decision to keep current President of the Central Bank and respected economist Julio Velarde in his post amidst concerns about slowing private investment and falling approval ratings represent the strongest signal to date over his commitment to maintain macroeconomic stability. The next most important decision for Humala now rests in who he will choose to head the Ministry of Finance, where there is growing speculation he will announce tomorrow Luis Miguel Castilla, another moderate economist, to the post. The fact that Humala is responding to early difficulties through a stronger turn toward the center reinforces our view that he will start his administration on a positive note and will prioritize stability. That said, we continue to expect economic policy to take a negative turn in the medium term as Humala gradually increases spending to meet his ambitious social and economic goals in a context where his expectations about new source of revenue are probably overly optimistic. Such a risk is particularly acute if Humala's approval ratings don't recover or drop further in his first year in government.
Humala's decision to keep Central Bank President Julio Velarde in his post, announced in an interview Sunday night (he added that Velarde accepted to stay) is the strongest indicator to date that his administration will pursue relatively moderate macroeconomic policies. Humala originally seemed to prefer a new, less conservative president for the board, so the decision to keep Velarde is a positive surprise. Of the central bank's seven board members, the executive will appoint another three (the other three are appointed by congress), but it looks unlikely that Velarde would have accepted to stay if he would not at least have a say on other executive appointments. Given that the constitution guarantees the autonomy of the central bank, and that the central bank sets inflation targets, the decision to maintain Velarde indicates that keeping inflation low will be a priority under Humala.Erasto Almeida
The next most important decision for Humala is who he will choose to head the Ministry of Finance. The strongest candidate for the post appeared to be Kurt Burneo, who was former President Alejandro Toledo's main economic advisor and joined the Humala campaign after the first round of the presidential election. Burneo has experience in office and is viewed as more moderate than Felix Jimenez, Humala's long-term economic advisor, but shares some of Humala's views about the need for a larger role for the state in the economy. Now there is growing speculation he will choose to the post Luis Miguel Castilla, a moderate US-trained economist with a more technocratic profile than Burneo. Speculation grew after Castilla resigned from his post as Vice-Minister of Finance last Friday. Humala has always been more open to appointing independent technocrats to the central bank than to head the Ministry of Finance, a post he views as highly strategic given its role on budget issues and fiscal policy. As a result, decision to appointing Castilla would represent another strong early signal of moderation.
While the decision to keep Velarde in his post and the potential nomination of Castilla to the Ministry of Finance are a bit of a surprise, we have long expected Humala to appoint respected economists to the central bank and place a premium on stability, so this doesn't change fundamentally our baseline view on his economic policies.
Humala's decision to veer more strongly to the center, however, is probably a function of concerns with slowing private investment, which would affect future economic growth and tax collection, but also with a sharp decline in support for Humala over this past month. According to an Ipsos/Apoyo poll released over the weekend support for him dropped from 70% to 41%. While part of the drop was probably driven by a high profile scandal involving his brother (who has been accused of trying to use his family ties to negotiate private deals in a recent trip to Russia), part of it may also be driven by more negative economic news associated with uncertainties surrounding the transition. The fact Humala is responding to such difficulties through a stronger turn toward moderation is certainly a positive sign, but it probably reinforced his view on the need for a "positive shock" on expectations early in his administration.
Despite the recent positive developments, we continue to expect economic policy to take a negative turn in comparison to the past administrations-particularly in year two and three of his administration. Humala is well aware that sending positive signals to investors early in his administration is critical to avoid an environment of uncertainty which could dampen investment, economic growth and tax collection. But he also wants to expand the role of the state in the economy through social programs, infrastructure investment and an active industrial policy, all of which will require more spending. He will increase spending gradually and seek to finance new expenditure with higher tax revenues on mining and measures to fight tax evasion and corruption. However, such measures look unlikely to generate additional revenue equivalent to 3% to 4% of GDP as the government expects. As a result, reconciling conservative macroeconomic policies with his more interventionist goals won't be easy. As we have been arguing, if Humala faces tough decisions later on his administration, he will probably lean towards a more heterodox economic policy mix.
The trajectory of Humala's approval ratings will be a key variable to follow. If his approval ratings don't recover or drop further in his first year in government, his incentives to pursue policies that are less-investor friendly will increase over time. While the recent decline in support for him probably contributed to a turn toward moderation, if that doesn't yield political or economic results Humala could be tempted later on in his mandate to adopt a more heterodox approach. The fact that Humala's approval ratings dropped so sharply and so early is worrisome. Past presidents started with about 60% of approval, but support for them declined over the course of their first year in office and recovered only partially towards the end of their terms. This suggests that presidential approval ratings in Peru are structurally low. It looks like Humala will start with a lower level of support, so if there is a repetition of past trends, he may struggle to recover support and his approval ratings could very well drop further. If that happens, Humala could feel that he needs to spend more to deliver on campaign promises and boost political support.
Even in this scenario Humala is unlikely to respond with a radical shift in economic policy, but the risk of a negative turn in policy would increase. He wouldn't put stability at risk, but would probably test the limits on fiscal policy, which could generate political tensions between the executive and the independent monetary authority if the central bank starts a tightening cycle that could dampen growth. There would be higher risks for the mining sector as well. While Humala looks poised to increase taxes on mining operations, which he views as a key source of new revenue, we expect him to show some restraint to avoid hurting a promising pipeline of investment (See Humala likely to show some restraint in approach to mining sector, from 1 July). However, greater fiscal pressures and a weaker political standing would increase the risk of a more cumbersome tax hike.
Analyst, Latin America
The bad news for Jaime: He sold too early
|As of July 18th, 2011|
|Filing Date||Transaction Date||Insider Name||Ownership Type||Securities||Nature of transaction||# or value acquired or disposed of||Unit Price|
|Jul 18/11||Jul 15/11||Soldi, Jaime||Direct Ownership||Common Shares||10 - Disposition in the public market||-14,900||$2.240|
|Jul 18/11||Jul 15/11||Soldi, Jaime||Direct Ownership||Common Shares||10 - Disposition in the public market||-5,100||$2.230|
|Jul 18/11||Jul 15/11||Soldi, Jaime||Direct Ownership||Common Shares||10 - Disposition in the public market||-80,000||$2.150|
GENEVA — Swiss mining giant Glencore said Monday it would buy a majority stake in Peruvian mine owner Marcobre for $475 million in cash."Glencore International AG, a wholly-owned subsidiary of Glencore International plc, today announced that it conditionally agreed to acquire from CST Mining Group Limited a 70 percent interest in Marcobre S.A.C.," said the group in a statement.Marcobre owns Marcona Copper Property and the property's exploration and development project Mina Justa, which contains resources of 413.3 million tonnes containing 0.79 percent copper."Mina Justa would ideally complement Glencore?s existing polymetallic mining operations in Peru, and add significant value to our worldwide group of copper mining assets," said Daniel Mate, Glencore co-director of zinc, copper and lead department.The deal is expected to be closed in October.
...gold dailies, showing $1600.
Still on the road, posting still light. Have nice day yes thank you yes please do.
Well done Paraguay, Uruguay.....but Peru for the cup, carajoooo.