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OT: Yesterday at the World Athletics Championships, Sogelau Tuvalu of Samoa runs his new personal best time
...of 15.66 seconds.
Lane seven is where the action is.
PS: Special thanks to Edwin.
Why so? Because it's funny hardcore capitalism. Here's an example.
"...here is my chart of the day and an associated diversion from the markets. It shows geochemical data from a project presented in a way to investigate alteration intensity. Each rock type is identified by a symbol. If the world was very simple, each rock type would plot in its own unique location but like people, rock composition is variable right from birth. Added to this original compositional variation are analytical variation and variations from effects of hydrothermal alteration, which is the variation of interest to me. The element concentrations reported by the lab need to be adjusted mathematically based on chemical theory (not statistics) in a manner that helps understand a geological process like alteration. In this one, the scatter in pink and red dots shows how much alteration has modified the rock composition. Since altered rocks are found close to ore ($$$) and unalterated ones are further away, explorers can use this alteration gradient to direct them to the deposit. The pink diamonds started life at about (0.07, 0.7) and the red ones around (0.10, 0.10). Alteration displaces these original compositions up to the right so using this diagram with knowledge of where each point is located in geographic space, I can define the alteration gradient. The trick is knowing how to process the analytical data and arrange them for plotting. In case you are interested, the trick is based on vector algebra...every mineral has a chemical formula (eg. orthoclase, a common mineral in rocks = KAlSi3O8; which shows the molar proportions of elements as one part K, one part Al, 3 parts Si, 8 parts O; or 1:1:3:8). The molar proportions are the coefficents in a matrix and elements are the variables. Since we have many minerals making up the rocks we sample, we have multiple equations of minerals that define a multidimensional geochemical space. These can be solved in a manner that orients the view of space in a way that helps us understand the data. Cool huh?"
I love geologists. DYODD, dude.
You want the paydirt? Minutes 6:00 to 8:31.
Yesterday in this post we pointed to B2Gold (BTO.to) in this chart, let's check in on how that call is going:
Annoying, aren't I?
Good news for the serious type of gold longs: The Kitco indicator has just flashed the infallible "gold is bottoming" signal
Service UnavailableWas the reply received.
UPDATE: Reader 'RB' sends in the following image, which is nicely meta. Thanks RB.
It was all set to be delayed (if that makes sense) until after the election on October 23rd, but yesterday the parliament of Mendoza made a somewhat surprising decision and decided to debate and vote on whether the San Jorge copper project owned by Coro Mining (COP.to) would be given its permission to operate.
UPDATE: This post went up at 07:58am, some 32 minutes before the bell. Ten minutes later the stock was halted. Just sayin'
UPDATE 2: Gawd, it took 'em long enough. Here's the NR, just released with less than 90 minutes' playtime left before the close:
Press Release Source: Coro Mining Corp. On Thursday August 25, 2011, 2:38 pmVANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 25, 2011) - Coro Mining Corp. ("Coro" or the "Company") (TSX:COP - News) regrets to announce that the Provincial Legislature of Mendoza has voted against the ratification of the Company's approved Environmental Impact Declaration ("EID"), notwithstanding that the EID was conditional, inter alia, upon the Company's Argentinean subsidiary, Minera San Jorge ("MSJ"), complying with the highest standards of environmental protection, control and monitoring prior to, and during the construction and operation of the project. Over the past 3 years, Coro has strictly complied with all laws and regulations, including the 7722 law which required the ratification of the approved EID, and has made every effort to ensure that the legislators were fully informed about the project. In addition, a Mendoza court recently determined that the process which led to the approval of the EID was neither illegitimate nor arbitrary, and therefore fully complied with provincial law.
As recently as August 24th, the head of the Lower House confirmed that the ratification vote would take place after the elections scheduled for October, in order that the decision could be taken based on the merits of the project and not on a calculation of electoral advantage. Unfortunately, the vote took place in any event, without consideration of the conclusions of the legislature's commissions who have spent the last several months evaluating the EID, and more pertinently, the validity of the process which led to its approval. The decision to not ratify the EID was taken against the clearly expressed wishes of the current government, with whom the Company was in advanced discussions aimed at delivering a carried 10% interest in MSJ to the province.
Coro will now consider its alternatives to seek legal redress and compensation through the Argentinean and international courts. In particular, the 7722 law is currently subject to legal challenges of its constitutionality by Coro and several other parties. We anticipate that this lawsuit may be resolved by mid 2012 and in the event that the courts find that the law is indeed unconstitutional, the denial of legislative ratification of the Company's valid and approved EID, may be deemed to be null and void.
Finally, we wish to express our gratitude to the people of Uspallata who had supported the development of San Jorge. We sincerely regret the rejection our project by your elected representatives, especially given the rigorous review and consultation process that has taken place over the past 3 years. Coro had hoped to work with you in raising your living standards and demonstrating the economic and social benefits that San Jorge could have brought to your community; unfortunately, this opportunity has now been denied to us.
CORO MINING CORP.
Alan Stephens, President and CEO
You want an Ottotrans™ on that? Ok, here goes:
UPDATE: Final final version here
Just thinking out loud here...
4) She freely admits, without any sort of prompting, that she doesn't know much about mining. However that didn't stop her from writing a detailed hit piece on a mining company that her company had previously and quietly sold short.
Janice Shell to me show details Aug 16 (7 days ago)
StreetSweeper is looking at GORO (but please don't tell anyone). I've read what you've had to say about it, but wish you'd said more. What do you think of it? I agree that for now, they're a silver miner, not a gold miner. What are the chances of that changing?
And what, of course, about Hochschild? I gather from their most recent annual report that when they invest in a company as heavily as they did in GORO, they intend eventually either to take control, or divest entirely. They haven't bought any stock since June 2010, which suggests they've decided on the latter. But how would they get rid of that much stock, and to whom could they sell? Have you heard anything?
I'd love to hear about anything else you might know.janice
I think there's two main issues with GORO
otto rock to Janice show details Aug 17 (7 days ago)
1) No drilling program so far means that there's legitimate doubt as to what they have underground.
2) It's overvalued for what it is. I've run numbers and in an optimum situation (i.e. they find the mineral they say there is down there and keep on finding it) with Ag & Au at current prices, GORO is good for a 50c EPS. From that I'm good with a $18 share price, $20 tops. (ABX sells at 9X PE, why pay more for a pissant 450tpd miner?)
HOC.L is an extremely difficult company to read policy-wise. Difficult like Glencore is difficult. It's worthwhile to consider the long term history of HOC the company, because they made their company by buying prospective looking vein properties in Peru (well, first tin in Bolivia, but that's REALLY going back) and drifting down with no drilling done until they run out of Ag. It fits their history to invest in this minimally drilling GORO thing. But try to 2nd-guess what goes on at HOC BoD level and you'll spend days and weeks getting nowhere. Tough read, that company.
However I think HOC is now trapped in. They can't sell wholesale (to who?), they can't start selling on the open mkt cos it'd rank the stock in minutes. GORO is forced to defend its high share price and so far it's shown it can be done quite successfully. Having a bunch of mouthbreather goldbugs as your core support helps a lot too, of course. :-)
Thanks very much. It's interesting that HOC doesn't thing drilling is worth the trouble, either. GORO's attitude seems pretty much to be that they haven't done it simply because they don't feel like doing it, which is odd. If they got round to it, presumably their financials would be more impressive to potential investors, because they could book their proven and probable reserves as assets. But they don't care. Over the years, they've said that to do a feasibility study would cost them about a million dollars. Compared to what they've spent on the El Aguila project alone, that's a drop in the bucket. So why not? Recently they've been saying in conference calls--but NOT in their SEC filings--that they intend to do one this year. I doubt that'll happen. If they were serious about it, they'd have begun by now.
Janice Shell to me show details Aug 17 (7 days ago)
I don't know a great deal about mining, but I think if I were going to spend millions and millions on a mining project, I'd want to have a good idea what I could expect to find underground. Even companies that have no intention of doing their own mining, but only want to sell their claims to the highest bidder, cough up for the NI 43-101s that will make it possible.
What if GORO so expensive because the price of silver, not gold, is so high? After all, they do have silver. Much more silver, it seems, than gold. So they benefit from the price of silver AND the enthusiasm of the goldbugs.
You said in your blog that one of the Reids was posting at Yahoo. Which one, and what's his alias?
No, I didn't say in my blog that one of the Reids was posting at Yahoo, if i were you i'd read what I wrote again. And while we're on the subject, I remember a while back (re POTG) that you made a comment about me being such-and-such poster on such-and such board. That's not true either, because i don't post on any bullboard anywhere and rarely even visit the things.
otto rock to Janice show details Aug 18 (6 days ago)
All in all it seems to me that you're a little too quick in jumping to conclusions. That'd likely be true for mining companies especially when you say that "I don't know a great deal about mining".
Sorry. When you said "managerial team" I thought you meant a Reid.
Janice Shell to me show details Aug 18 (6 days ago)
Hey guys over at the Yahoo board, did you know that GORO management are regular readers of your posts? Hey, wouldn't it be interesting if you found out that one of the posters there was in fact part of the managerial team at GORO, too?
I was merely curious; I wouldn't write about anything I couldn't prove. As for the IHub poster calling himself "Bruce," I asked if you were he simply because whoever he is, he seems knowledgeable about things Peruvian. He found the Wuakakuy claim numbers, the names of the original claim holders, and a few more things. And he offered up Luna's cellphone number. He's obviously not a fan of POTG or Luna, and is a native English speaker. He was a brand new poster. So I think you can see the logic of my question.
Did you know that now Luna wants to do a 10:1 forward split? That would raise the outstanding to 4.5 billion shares. He now seems to be trying to appeal to hard core penny plungers. But he's kind of screwed things up with FINRA; it may not happen.
No. What you wrote was, "The penny dropped: you must be "Bruce" on IHub."
otto rock to Janice show details Aug 18 (6 days ago)
If that's your way of asking a question, I suggest a few remedial English language classes.
Again, I'm sorry. Though I wouldn't be so offended. But then people confuse me with others all the time.
Janice Shell to me show details Aug 18 (6 days ago)
Whoever "Bruce" may be--and I do wonder--he had some interesting information.
Hunter Adams, a member of the expert advisory board for The Street Sweeper/American Fraud Fighters, understands stock manipulation firsthand. Adams entered the securities industry 15 years ago with a focus on high-risk penny stocks. He quickly became an expert at establishing shell corporations, executing reverse mergers and selling both equity and convertible debt in speculative small-cap companies. His career ended in 2001, when government investigators accused him of manipulating worthless penny stocks. He pled guilty to two conspiracy charges -- for securities fraud and money laundering -- and served time in prison for his crimes. Years later, he pled guilty to racketeering charges, fully cooperated with the government and accepted full responsibility for his actions. Today, he has embraced a life of reform and now hopes to help protect the public by exposing others who tread in the same murky waters he once swam in. To contact him directly, please send an email to firstname.lastname@example.org.
* Important Disclosure: Prior to the publication of this article, TheStreetSweeper (through its members) has effected a “short sale” of 74,246 shares of GORO stock at an average price of $25.28 a share with the intent of profiting from decreases in the share price. TheStreetSweeper has also purchased 50 September 2011 $30 "put" options priced at $5.80 apiece, hedged by the sale of 50 September 2011 $25 "call" options priced at $1.15 apiece, as well. TheStreetSweeper may choose to make additional trades in GORO securities, potentially covering part or all of its short position in the stock, and will fully disclose the details of those transactions as they occur.
Update: TheStreetSweeper covered 3,200 shares of GORO stock at a price of $23.23 a share on Aug. 23. Following that transaction, TheStreetSweeper continues to hold a short position of 71,046 shares of GORO stock at an average price of $25.28 a share.
Disclosure: no position of any sort in GORO (not short, not long) and it's going to stay that way.
This post is dated Saturday August 20th and is all about how wind power is competing and beating traditional electricity generation methods on a level playing field. No government subsidies, no skewing the math, Brazil's wind power generators are now in the position to compete directly against the coal burners and win contracts because of one simple fact: They're cheaper
This post is dated Monday August 22nd and covers what people do, or don't do, with all the waste generated by the enormous coconut juice industry in Rio. A fascinating look behind the scenes and at a businessperson who's trying to make the recycling of coconut husks into a profit-making sector, which also shows how local politicos and established businesses are more of a hindrance than a help.
You did not ask for permission to quote me in your report and I did not give it to you.
I would like you to remove all links to my site and remove the quoted text immediately.
Disclosure: No position in GORO at all. Not long, not short, not me, not family, not friends to the best of my knowledge.
A gold rant (feel free to roll your eyes and move to the next segment)Seems to me that so much serious money is now taking some sort of QE3-type stimulus from the Fed as its baseline that it’s not going to make much of a splash if (sorry, when) a formal program is announced and implemented. In fact, it might just let some of the air out of the speculative b___le (hah! You nearly caught me using the B word, didn’t you) currently around gold. On that subject, here’s a muse on the current action in gold. Many months back when gold was flirting around the $1100/oz to $1200/oz level, I took time in one of the Weeklies to ask two questions and then just ploughed forward and answered them. Paraphrased somewhat, those two questions were:
1) Is gold in a bubble? Answer at that time, I don’t know2) Even if it’s in a bubble, is the bubble about to burst? Answer at that time, NO.
That was then and looking back all 20/20 and that, I’m happy enough with that call. But this is now and here we go with the same questions, but this time answers that pertain to IKN120, dated today August 21st 2011.1) Is gold in a bubble? Answer: YES2) Even if it’s in a bubble, is the bubble about to burst? Answer: I don’t know.
So a couple of thoughts on those two Q&As, starting with 1). This below is the 12 month chart for GLD, the gold ETF, and before we continue you’ll hopefully note that I’m not pulling down one of those veeeeery long term gold charts that offers up a price line acceleration in the last year or so to rival the North face of the Eiger. That’s not the point, we’re basically all friends of gold here and I for one will state right now that I have absolutely zip squat nada zero intention of selling any type of bullion position (gold, silver, you name it).
With that hopefully clear, if you can look at that chart and tell me you don’t see speculative interest moving into GLD with the greatest of respect I’d suggest a trip to the optician’s. Up to perhaps end of June the price rise was healthy, with its small corrections along the way but a clear and undeniable trend-is-your-friend. But then in July things started to accelerate and now in August they’re flying.
I don’t want this kind of speculative mania in gold, for reasons that should be apparent to anyone holding the underperforming junior silver producers a few months ago when Ag the metal shot to $50/oz and then dropped. But that nice Mr. Market doesn’t give two hoots for my personal preferences (and rightly so) and today’s action in gold does indeed show signs of doing the same thing as silver did a few weeks back. And hey, let’s be clear about the potential consequences starting with how we’re all going to have to be prepared for the noise from the told-ya-so brigade that has been 100% wrong for a decade and just can’t wait to be right, if only for a few weeks. They’d be insufferable...for a short while least.
However, before we get ahead of ourselves and start predicting the end of the gold run around Tuesday lunchtime (between main course and dessert), let’s consider Q&A 2). I say that yes, gold is in a bubble right now but then again, gold can keep on keeping on in a bubble for quite a while yet. Not only that, but if we are at an end, this is the late stage of a chapter in the spec moves and we’re closing in on a parabolic blow-off top, there’s still nothing to stop gold the metal from going a lot higher in a very short space of time before the blow-off arrives. Truly, $2000/oz by the end of next week would be pretty spectacular from a market watcher’s point of view but I wouldn’t be astounded and dumbfoundedly amazed by such action either.
And now, finally, the real thing I want to say here. All the above is pretty typical “what’s gold gonna do?” type chatter and in its own way entertaining. However, gold shouldn’t be part of your financial life for the amount of dollars you make from it from one day to the next. Gold isn’t about a nominal price in US Dollars. It’s not about seeking alpha against the market (or at least it damned well shouldn’t be, which is another good reason to suppose that rampant speculation taken hold in the last two months or so). It’s not about demand, nor supply, nor anything else that affects a commodity. That’s because:
- Gold is not a commodity, it’s an asset class. Gold isn’t silver, or a PGM, or copper, or zinc or yttrium. Gold is gold and financially speaking unlike any other metal.
- To quote Gary Tanashian on this (because he nails it down well), gold isn’t about price, it’s about value.
- Gold isn’t something that makes you rich, it’s something that stops you from becoming poor.
Here's a quote about the deal from Gana Perú party (Ollanta's crew) spokesperson Freddy Otorola:
"We cannot govern behind people's backs and the only way to consolidate democracy is listen to the people".
Translation: If mining companies don't play nice, they're out. Sadly, the dumbass treehuggers at MiningWatch now think all their Christmasses and birthdays have come at once.
...the five year forex charts of four South American currencies versus the U.S Dollar:
The Peruvian Nuevo Sol (PEN):
The Chilean Peso (CLP):
Which one of you paid $3.19 for GPR.to at the bell this morning? C'mon...hands up...
Anyone know a company like that?