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An utter blastout tune, so play it at eleven and we love love love Green Day forever and ever amen, oh yesssss.
UPDATE: Longtime reader and all-round good egg, TW writes in with this:
"I was a huge fan after the Slappy Hours release when I was a Lad. In roughly 90, before the Kerplunk release, I saw them play a small venue with about 100 people. My buddies band even opened up for them! I remember sitting in the hallway waiting for the show to start and a guy walks by with Annie Warbucks bleached blond hair, skin pale as the moon, wearing a ladies bright pink nighty. Strange anywhere but especially in my small town; Tres Cool had entered the building. To this day was the most fun show I have ever been to. They snuck mud balls into the building and threw them into the "mosh pit" creating some chaos. Billy Joe sang and performed the same then as he does now. Other than becoming more refined, they really haven't changed their style of music or performance after 20+ years which proves they are timeless."
Disclosure: Long SWD.v. Nuff said.
All you need to know in three Q&As:
1) Is the USA in recession?Answer: Yes
2) Will the Occupy Wall St movement achieve anything?Answer: No
3) Will The Euro/The Eurozone implode?Answer: No
So now we've got all that sorted out, go and buy some gold and STFU, willyaz?
- $40 on Peru to win, price 7/5, total return envisaged: $96
And let's see how we get on.
...the Small silvers YTD update, October edition:
This is an interesting interview.
7 hours ago by Thomson Reuters
* Changes in mining sector welcomed by some miners
* Estrella has big exploration portfolio in Peru
By Terry Wade
LIMA, Oct 6 (Reuters) - President Ollanta Humala's effort to solve conflict over natural resources by steering more money to rural communities is welcome and could make life easier for mining firms, the head of a top Peruvian junior miner said.
Keith Laskowski, chief executive of Estrella Gold
, said the previous government paid too little attention to settling disputes between corporations and communities that arose as billions of dollars poured into Peru's mining sector over the last 15 years.
"The prior administration wasn't dealing with this very much, or at all," Laskowski, whose company runs exploration and resource definition work on 30 properties in the Andean country, told Reuters.
"I'm very glad (the new president is) trying to deal with it because it was becoming prohibitive in some instances to try to explore."
Then-president Alan Garcia helped lure $40 billion in planned investment to Peru's mining sector, only to see his term marred by conflicts that often turned violent. More than 200 communities have organized to halt mining or oil projects.
But Humala, a leftist former military officer who took office in July, has won quick approval for two bills in Congress aimed at calming tensions.
One requires firms to consult with local communities about mining and oil projects proposed near their lands before beginning construction, while the other raised royalties on miners to fund infrastructure and social programs.
"(The government) has to equalize these issues and improve the landscape for the communities that, to some degree, have certainly been offended and overlooked," Laskowski said.
He said mining companies of all sizes must develop strong relations with communities, which often are worried about pollution, losing control of scarce water supplies or not receiving direct economic benefits from mining.
"To be successful, you can't have a separation between the community and the company," said Laskowski, a geologist who is also a consultant for the International Finance Corporation -- a member of the World Bank group -- on its potential equity investments in small mining companies.
"You can have the best deposit in the world, but if you don't have the community on your side you aren't going to go anywhere," he said.
NEW SOUTH AFRICA
Estrella arguably has the biggest exploration portfolios in Peru and 24 of its properties are part of a strategic alliance with Cliffs Natural Resources
"We are in Peru because it has fantastic mineral endowment, meaning that we have a better chance of success, and it has a good mining law," he said. "We used to think South Africa was incredibly endowed -- I think Peru is the new South Africa when you look at the amount of diverse metals here."
Though Peru is a top global metals producer, its mining ministry says less than 1 percent of the country's existing mineral deposits are being mined.
The laws introduced by Humala, who was initially feared by many in Peru's mining sector, were made after he negotiated the content of the bills with mining companies.
In practice, that means the consultation law will not give veto power to communities when it goes into effect in January and royalties will be charged on a sliding scale depending on profit margins in boom and bust years.
Those two laws still need to be implemented and companies are trying to persuade the government to apply them in ways that won't turn off investors.
Humala is also reviewing the process for giving licenses to exploration companies, apparently in a bid to make sure all companies are actively exploring their concessions and not just holding them to speculate.
Any changes for junior mining companies will need to be made in a way that does not hurt exploration and shut off the country's future pipeline of big projects, Laskowski said.
More and more hurdles could reduce Peru's competitiveness in a difficult and often risky business.
But for now, Laskowski's feeling is that the new taxes and consultation requirement are reasonable.
"I think the bottom line is there is a need for more money to go to the communities and this is one way to do it," he said. (Editing by Dale Hudson)
Press Release Source: Pershimco Resources Inc. On Thursday October 6, 2011, 12:48 pm EDTROUYN-NORANDA, QUEBEC--(Marketwire - Oct. 6, 2011) - RESSOURCES PERSHIMCO INC. ("Corporation" or "Pershimco") (TSX VENTURE:PRO - News; FRANKFURT:BIZ - News) announces that it continues advanced negotiations for the conclusion of a strategic alliance with a major mining company on the Courville Gold Project. Any important information relating to the progress of the negotiations will be released by the Corporation through further press releases.
Even in a very-short-term trading situation, understanding company fundamentals is useful if you want to make money
For example, understanding cash cost profiles for junior silver miners.
Mark Frederick, Chairman of the Board of Inter-Citic Minerals Inc. (TSX:ICI) ("Inter-Citic" or "the Company"), reports that the Company has rejected an unsolicited preliminary proposal from a large Chinese mining company to acquire all of the outstanding shares of the Company ("the Proposal"). The Proposal was rejected by a Special Committee of the Inter-Citic Board after consultation with its independent financial advisors and legal counsel. The Proposal, from a company that to the best of Inter-Citic's knowledge is neither an insider nor shareholder of the Company, included an indicative price of between $1.20 and $1.70 per share for Inter-Citic.
WHO is the phantom bidder? If this is a hostile/unsolicited bid, Inter-Citic (ICI.to) has no reason to keep the name quiet. So c'mon, WHO is this "large Chinese mining company"? Where does it operate? Who's in charge? What kind of assets does it hold? Why doesn't ICI.to feel like shedding some light on the matter?...this is China after all. You seriously expecting us to swallow a Sino-pump wholesale after all we've seen from the scumbag companies operating these in recent times?
WHEN was this bid first heard about? Right now, after the sink in gold price, or has this been on the table for a while? Makes a big difference, especially when the "timing" of this NR today is taken into account (see price chart below).
WTF is that bid price about? My stars, you just got to explain a range of $1.20/$1.70, you can't just leave that hanging there without a word of detail.
Portage Resources Inc. ("Portage" or the "Company") (POTG-OTCQB) through its subsidiary Portage Minerals S.A. has opened new corporate offices in the most prestigious business district of Lima, Peru.......The Portage offices are within minutes of Larcomart, and are directly located across from the fabulous Crown Plaza Hotel.
For context, please read this line from a mail received from an experienced Lima mining head:
The “fabulous Crown Plaza Hotel”. There´s a gay disco on the ground floor, I guess it´s fabulous all right.
This is a bizarre quote by George Bee of Andina Minerals (ADM.v) in today's NR:
Or in other words, "It's just not jolly well fair! So now we have to close the camp and lay off the cook.""Given global market uncertainties and the market's lack of recognition to our recent exploration success, Andina has eliminated all Volcan exploration activities from its current plans and will focus solely on delivering the key milestones for the Company."
Oh well, what's $30m between friends these days anyway?
Fortuna Silver (FVI.to) (FSM) record monthly production at its Caylloma mine for the second month running
disclosure: way long
Be clear: It can get worse in juniorsIt was always going to be a rough week last week and sure enough, the market didn’t “disappoint” our expectations. Your author executed his cash raising plans early Monday, then as noted in the Flash update of Thursday decided not to go for the other mooted sale, that of (removed), as its share price action has been fairly good and its news that very morning was very good (more on that NR below).So that’s how I’ve decided to position myself to the current airs and trends of the market; put simply, some hatches battened down, risk-off silver in particular, but without doubt I’m still long the junior mining sector (just less long than I was). I’m now at XX% cash in the trading account, which could be a little more come this time next week because sales in the small positions are in the cards However, I’m eyes-wide-open to the fact that the stocks I’m holding, especially those tiny illiquid things like (removed) or whatever other you’d like to mention may well see further downside before things get better. Or they may not just stay where they are for a while. Or they may rebound tomorrow morning and get 50% bounces by this time next week.Be clear: I DO NOT KNOW.I’m not your guru, folks, never have been and never will be. I’m the value investor, the risk-adjuster and the whussy weakhand/stubborn obstinate holder. However, what I DO know is that I’m comfortable with my personal current portfolio positioning and exposure, it’s where I want to be right now and the relief of raising cash is offset nicely by the positions and risk exposure still held. I’m fully aware that there may be further short-term pain in the works, but I’m also fully aware that the tidy little cash pile now raised might be better used in buying back a few positions tomorrow morning. In other words, I’m good about the balance here and don’t feel the need to buy back immediately...that can wait a couple of weeks at least.With the emphasis firmly on “at least”.With last week’s sales done there’s an automatic and natural tendency to sniff the air, see recently sold stocks at significantly cheaper prices and think “hmmm...could buy that back right here”. However I’m going to resist rushing back in to any position until mid-October at the very earliest, because it doesn’t matter how good a stock looks (or not) on a stand-alone basis when the macro scene is the most important price driver. GPR, FVI, MFN, GOZ, RIO or whatever other company could have a blow-out excellent quarter under its belt and could guide strongly for the quarter or quarters to come, but if gold drops $50 and/or silver decides to swoon another $5/oz it won’t matter a jot. They’ll all go down.Therefore your author will stay consistent and be the whuss that he normally is regarding the market. In my considered opinion it’s too early to think about buying back into the market and I much prefer the safety of the sidelines for the cash recently accumulated. Repeat: The earliest for a re-buy would be mid-October and that’s only if things go very well from now until then, so it’s far more likely that the cash stays on the sidelines through October and into November. No definitive calls being made here, it’s going to be one step at a time and a constant consideration of risk vs reward in the short-term. In a perfect world, even lower prices will turn up for purchase before a decent rebound sets in. In an imperfect but acceptable world the bottom is already in, the positions still held make gains and the cash is used to buy back at higher prices in a few weeks’ time. But either way, I’m holding on tight to the cash for the moment as the risk factor is still way too high for my cowardly blood.
...this one, a Bloomie screengrab featured in yesterday morning's Scotia Daily Mining Scoop mailer:
- Note October 2010, which until today was the winningmost production month in MDD's history. That month, according to the official Ministry of Energy and Mining figures, MDD produced 2,453,545 grams of gold.
- Now August 2011, in which according to the official Ministry of Energy and Mining figures MDD produced 2,453,545 grams of gold.
Your humble scribe's guess: they don't feel wonderfully wonderful about it.
Disclosure: No position in MAI.to, not for quite a while in fact. Once upon a time yes, but then Robbie Mac got all egomonster and...well.....no position nowadays.
IKN suspects that the guys at Capstone and HudBay would like to offer their sincere thanks to Stillwater Mining (SWC)
Press Release Source: Peregrine Metals Ltd. On Tuesday October 4, 2011, 1:46 pmBILLINGS, MONTANA and VANCOUVER, BRITISH COLUMBIA--(Marketwire -10/04/11)- STILLWATER MINING COMPANY (NYSE: SWC - News)(TSX: SWC-U.TO - News) ("Stillwater") and PEREGRINE METALS LTD. (TSX: PGM.TO - News) ("Peregrine") today announced the completion of the acquisition of Peregrine by Stillwater.
Stillwater has acquired all outstanding shares of Peregrine pursuant to a plan of arrangement under the Canada Business Corporations Act. The transaction was previously approved by the Peregrine shareholders, who voted in respect of the arrangement, and the British Columbia Supreme Court.
Effective today, each common share of Peregrine has been exchanged yada yada continues here
Long ICE Brent December 2012 contracts (initial price $105.16/bbl, current loss $8.14/bbl)
We recommend a long position in the ICE Brent December 2012 contract, as we expect that the market will continue to tighten to critical levels by 2012, pushing oil prices substantially higher to restrain demand.
Long UK NBP Q4 2012 ICE Natural Gas contracts (initial price 70.8 p/th, current gain 0.3 p/th)
We continue to recommend a long position in UK NBP Q4 2012 contracts as we expect UK NBP prices well above the current forward curve in 2H2012. Our view is mainly driven by our constructive oil price forecasts implying higher oil-indexed natural gas prices than what the market current expects. This would imply an arbitrage between UK NBP and oilindexed gas at higher price levels than what is currently embedded in the market.
Long Copper: Buy June 2012 LME copper (initial price $8,804/mt, current loss $1753/mt)
Although we have reduced our 12-mo copper price target to $9500/mt from $11000/mt as Goldman Sachs economists have reduced global economic growth forecasts, our downwardly revised copper price forecast still suggests substantial upside from current depressed levels. We caution that sentiment regarding the economic outlook and the European sovereign debt problems are likely to remain poor in the near term, presenting further downside risk to prices as well as our forecasts. However, we also note that the speed and magnitude of the copper sell-off suggests an accumulating short position in the market. Further, a potentially powerful upside catalyst lies ahead in China should policymakers shift to an easier stance and/or should lower prices entice Chinese buyers back into the market. Thus, given the mainline expectation of still lackluster but substantially positive global economic growth, we continue to recommend long positions in copper.
Long Zinc: Buy December 2012 LME zinc (initial price $2,189/mt, current loss $256/mt)
Although we have lowered our 12-mo zinc price target to $2400/mt from $2700/mt as Goldman Sachs economists have reduced global economic growth forecasts, our downwardly revised zinc price forecast still suggests substantial upside from current depressed levels. We caution that sentiment regarding the economic outlook and the European sovereign debt problems is likely to remain poor in the near term, presenting further downside risk to prices as well as our forecasts. However, zinc prices are currently low enough to motivate reduced production in coming months. Medium-term, we continue to expect zinc to become more supply-constrained owing to growing demand from China as well as important mine closures that are set to take place in 2013-15. Thus, given the mainline expectation of still lackluster but substantially positive global economic growth, we continue to recommend long positions in zinc.
Long Gold: Buy December 2011 COMEX Gold (initial value of $1,364.2/toz, current gain $258.1/toz)
We expect gold prices to continue to climb in 2011 and 2012 given the current low level of US real interest rates.
Long soybeans: Buy November 2011 CBOT soybean call options (initial value of $11.60/bu, current gain $1.69/bu)
Our price forecast does not suggest upside potential to our outstanding long soybean trade recommendation. However, we had locked in potential gains in early August by rolling the long Nov-11 CBOT future position initiated in November 2010 into a long Nov-11 soybean $14.00/bu call position and we recommend keeping this position open in case of a supply disappointment in South America should the La Nina weather condition intensify.
... voter intention for the Nicaragua Presidential election, now just one month away.
"The truth is that I also light a little candle every day and pray that China doesn't fall apart on us."
xPress Release Source: GolfGear International Inc. On Monday October 3, 2011, 2:21 pmLAS VEGAS, NEVADA--(Marketwire -10/03/11)- GolfGear International, Inc. (PINK SHEETS: GEAR) announces that it has cancelled 1,000,394,000 Common shares and 50,000 Preferred shares through voluntary stock cancellations. These cancellations have significantly reduced the Company's Issued and Outstanding stock.
Dale Geck, President of GolfGear International stated, "The reduction of over one billion shares of the Company's Issued and Outstanding stock should reassure shareholders that the Company is serious about its commitment to its shareholders. Major shareholders have been asked to participate in voluntary share cancellations in order to increase stock value. We are extremely pleased with the response to this program thus far. Management emphasizes that no reverse stock split is anticipated. The Company will continue to seek opportunities to reduce the Company's Issued and Outstanding stock in order to add value to the Company and build shareholder confidence."
Due to the Company's change in business direction from golf equipment to gold and silver mining and processing, Management has proposed a change in the name of the Company from GolfGear International, Inc. to GEAR International, Inc. Management feels that the name, GEAR International, Inc., better reflects the Company's new business focus and will eliminate confusion in the market. The Board of Directors has given its approval for this name change subject to necessary due diligence and legal advice. The Board anticipates a formal announcement to be forthcoming upon final approval.
The Company has recently announced the execution of a joint venture agreement with Mission Holdings, LLC for placing into production the Silver Cord Mine in Arizona, a historically producing silver and gold mine with over 900 feet of existing tunnels. GolfGear plans to process gold and silver extracted from the Silver Cord utilizing an efficient environmental extraction and refining technology under a licensing agreement with EnviroXtract, Inc. (PINK SHEETS: EVXA). GolfGear anticipates further announcements regarding additional gold and silver mining and processing opportunities to be forthcoming.
About GolfGear International, Inc.:
GolfGear International, Inc. was originally incorporated in 1996 as a golf equipment company. The Company has recently altered its business strategy to include gold and silver mining, providing financing for gold and silver mining projects, and precious metals processing and refining.
...the gold/silver ratio (again), but this time we're zooming in on the 2011 year-to-date action only:
*Errr..yeah, there's bad news on that, too. The rapture actually happened a couple of centuries ago and it's been End Times ever since then.
Lima (AP) - police rescued 234 women from sexual exploitation in dozens of whorehouses in a remote zone of the Peruvian jungle where for the last three decades informal miners have dug for gold, according to authorities Sunday.
"234 women, 15 of them under the age of 18, have been rescued. They were found in 60 whorehouses in the city of Puerto Maldonado and in nearby zones where they were sexually exploited", the Vice-Minister of the Interior, Alberto Otárola, told Associated Press.
Puerto Maldonado, capital of the Madre de Dios region, is located 861km South-East of Lima and is surrounded by an abundance of informal gold mining operations that have been the reason for an intense migration from other regions.
Otárola added that, "during the operation we found a girl of 13 years old."
A good job of work done this weekend by Franklin Briceño of AP Lima.
Owly sez this:
Rio Alto says disruption at Peru mine now overOct 1 (Reuters) - A labor disruption at Rio Alto Mining Ltd's (RIO.V) La Arena gold mine in Peru has ended, an official at the small Canadian company said on Saturday.
"The illegal work stoppage is over," the official said via email.
On Thursday, the Vancouver-based miner said its 2011 gold output would be cut due to the disruption, adding it would provide an updated production forecast following the resumption of mining activities at the site.
The news this morning....is of an "illegal work stoppage" at the Rio Alto (RIO.v) La Arena gold mining operation. In fact what we have there is an illegal blockade that's stopping workers from getting to the mine, and not a strike (continues). ......This blockade will blow over and will likely blow over soon, for the simple reason that (continues).......Overall, the effect on RIO.v is likely to be minor and short-lived....