Why love South America?

Well, there are a million reasons and counting but let's start with this, a photo taken on a bus in Lima Peru featuring instructions for the passengers. Translation on the right (accuracy and gist combo) by your author:

It was placed this afternoon on the most excellent Perufail blog, right here, so click thru for the original.

Van Eck now owns 10.02% of Minefinders (MFN) (MFL.to), but they're not all in the GDXJ

An interesting 13G filed by Minefinders (MFN) (MFL.to) a few minutes ago. Apparently those nice people over at ETF makers Van Eck now own 10.02% of the company, or precisely 8,159,029 shares. However, the ETF vehicle in which it places the MFN shares, the Market Vectors Junior Gold Miners ETF (GDXJ), holds just 4,564,762 of the shares according to the same 13G. Van Eck has cunning plans for the other 3.6m shares of MFN but wasn't worried about breaking through the 10% barrier and getting the total holding declared, it seems.

Looks kinda bullish for MFN to me....but hey, WTFDIK?

UPDATE: WTFDIK indeed, as reader 'BF' mails in and points to my obvious brainfart; the other 3.6m shares are held in GDX. The prosaic is the best explanation once again, but 10% is 10% after all. Anyway, thanks due to BF for the datapoint and for not calling me a dumbass outright, even though I deserved it.

Gossip on Jaguar Mining (JAG) (JAG.to) in Canada is....

...that Mr Titcomb "was encouraged to resign" after having "misled his board of directors".

Translation: Fired for lying.

Details on the misleaderation (dat a word?) are not yet available, but if and when we hear more, update(s) will be added. Please be having nice day.

Jaguar Mining (JAG) (JAG.to): In a bizarre turn of events....

...it seems the market has taken a dim view to the sudden, late night, after-hours departure of the company's CEO:

Hoodathunkit, eh?

And fwiw* we remind readers that your loving and caring IKN has been veeeery sceptical about this deal from day one. Evidence here, here and here (but the bit in the Weekly a couple of editions ago was better).

UPDATE: About 30  minutes after this post went up (still morning, though) and JAG is U$6.53 and still dropping. Oh dear, Mr. Wentworth

*not much

It's time for GUESS THE STANSBERRY/DOODY SILVER PUMP, a game all the family can play

So, it turns out that the bullshit frontrunning pumphouse Stansberry & Ass. is going to go for the silver sector at the end of this week, something that your humble scribe was blissfully unaware of until last night's mailbox was perused. Here below is the main body of said interesting mail received last night from "J". It also included a full disclosure on J's part as regards his financial positioning towards potentials here (which was straightshooting and shows he doesn't have ulterior motives, but as it's personal stuff it doesn't make the blog). The main body of the mail has also been redacted everso everso slightly to shield IDs, but the message hasn't changed a jot. Here's J and IKN returns after the break:

xxxxxxxxxxxxxxxxxx

Stansberry has been hawking John Doody's pending Silver Stock Analyst Report being released on 12/9 at 8am EST. here's the link to their "video" which you can avoid watching/listening to the whole thing by clicking Quit on that browser window and it will ask you if you really mean to Quit to which you should click Cancel, and you'll be able to READ the text of the "video" and skim over all of the marketing  BS.

The meat of this "video" is the following "teases" of the 4 Silver Stocks ("the universe of silver stocks ... there are only around 20 pure plays.") he's going to recommend:

Bottom line: I believe right now, as we experience another U.S. dollar crisis, silver could race up much higher than gold once again.
And to hedge myself against this possibility, I'm looking to buy FOUR (4) silver stocks, starting December 9th.
I applied almost the exact same metrics I use for gold stocks. And I came up with a short list of just four stocks that could take off as silver prices soar.
Each of these four stocks is #1 in one of the metrics I use: One is the #1 most profitable silver firm... One is #1 in digging out silver ounces... One is the fastest growing silver firm... And one is the best explorer.

Given that you have had many successful Silver plays in IKN Weekly, I'm wondering if you can peg Doody's four stocks and give your subscribers a heads-up before Thursday market close, ESPECIALLY if any of the four might be one's on your list of 15?

xxxxxxxxxxxxxxx

IKN back. So what we know from this is that Mr. Doody is pumping four silver stocks on Friday morning before the bell. As he does have decent traction in the market and a large following, added to the slicker-than-pigshit pumphouse that is Stansberry, it's safe to assume that four silver stocks on Friday are in for a good time. So, which ones?

The only things I can bring to the table on this are 1) that Doody concentrates on US listed stocks, so I'd expect the four he chooses will quote with US tickers and 2) a bit of educated guesswork on the sector. I have absolutely no idea which stocks are getting the Doody/Stansberry pump treatment Friday, but I'm going to hazard four guesses anyway. If you have any alternative suggestions, feel free to mail in, I'll add them to this post or run another post later in the week.

Anyway, here come my guesses on what I think Doody will go for here, tell me why I'm wrong

1) The most profitable silver firm: My best guess on the one Doody will plump for is Pan American Silver (PAAS) (PAA.to).


2) Number 1 in digging out silver ounces: My best guess is First Majestic (AG) (FR.to)


3) Fastest growing silver firm: My best guess is Silver Wheaton (SLW)


4) The best explorer: My best guess is MAG Silver (MVG) (MAG.to)

Now for sure there are plenty of alternative names you could throw in the mix, with Fortuna (FSM) (FVI.to), Endeavour (EDR.to) (EXK), Silver Standard (SSRI), Hecla (HL), Tahoe (THO.to) just five of many other candidates I could list. And I repeat, mine are just best guesses so if you have any better ones, fire away.

And dyodd dude, because when it comes to Porter Stansberry, we're talking about a guy who knows exactly what other words rhyme with pump and isn't afraid to use them.

UPDATE Friday 9th Dec: Apparently, all four of Doody's picks are mentioned in this post, but not necessarily in the four guesses.

Chart of the day is...

...the 12 month chart of Calais Resources (CAAUF.pk)....

...because it's worth getting in visual form what a Thom Calandra bullshit pump looks like. More on Calais Resources coming soon, watch this space.

UPDATE: The everwelcome quipster reader 'MP' mails in with, "Is it just a coincidence that your chart of the day kinda looks like the Vancouver skyline?"


made me laugh, anyway.

Jaguar Mining (JAG) (JAG.to): Curiouser and curiouser, said Alice

Because after all, it's a bit of a Wonderland over there at Jaguar (JAG) (JAG.to). Here's tonight's after dark NR:

CONCORD, New Hampshire, Dec. 6, 2011 /CNW/ - Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG.TO - News) (NYSE: JAG.TO - News) announced that Daniel Titcomb will be leaving his role as President and Chief Executive Officer of the Company effective today.
On an interim basis, the Chairman of the Board of Directors, Gary E. German, together with two other Jaguar directors, Gil Clausen and John Andrews, will form a newly-created Office of the Chairman to fulfil the duties of the Chief Executive Officer.  These directors also constitute a Special Committee of the Board charged with oversight of the Company's strategic process announced in November. (continues here)

So rather than continue with Lewis Carroll, let's go for something slightly more contemporary as our silly lead-out comment:

Trouble at mill.  
Oh no - what kind of trouble?  
One ont cross beams gone owt askew ont treadle.  
Pardon?
One ont cross beams gone owt askew ont treadle.  
I don't understand what you're saying.  
(In clear English accent) One of the cross beams has gone out askew on the treadle.  
Well what on earth does that mean?
(now annoyed) I don't know! Mr Wentworth just told me to come in here and say that there was trouble at the mill, that's all, I didn't expect a kind of Spanish Inquisition.

From this, of course:

Bazooka gold

Seems like the Financial Times is the world's tip sheet at the moment. Suspicious? Yup you bet.

Anyway, we hear that the EU haz buyed it one bazooka and ain't no fear to use it. Banksy's is better though.

Own gold, mojitos served, the end.

UPDATE: Effect required by ECB? Something like this:



:

c

Corrupt police in Peru? At the highest possible levels? Shome mishtake shurely ossifer!

The amounts of money involved aren't on the MF Global of Madoff level of course, nor is this a particularly uncommon occurrence in a country as riddled with corruption and petty thieving as Peru. But it does give you some idea of the mentality of corruption that runs through a third rate, tinpot, banana republic's public sector where everyone is looking to make their "second salary" (as it's known) with a sideline scam.

I mean, we're talking about the guys who ferry around and provide front line security for the President of the country and his family members. La Republica report here, translation of the first part of the report by your author below. 

Humala Security Chief Fired for Robbery of Auto Fuel

Officials in charge of the security of the President, his wife and children and his parents falsified service records to siphon off fuel from the Presidential vehicles and re-sell it. Those implicated include the administration office head Police Colonel  Belermino Vásquez Guevara, Police Commander Simión Pérez Mego and the head of security Police Commander Antonio Medrano Lau

Report by Doris Aguirre

Not even the Presidential Palace is clean.
The Minister of the Interior, Óscar Vadlés Dancuart, fired the head of Presidential security, Police Colonel Belermino Vásquez Guevara, due to his involvement in the systematic theft of fuel assigned to vehicles that protect President Ollanta Humala, his wife Nadine Heredia and the Presidential family.


Interior Minister Valdés took this drastic step least week based on a report presented by the head of the ministry's intelligence service (Digimin), Colonel Eduardo Arbulú Gonzales.


Agents under Gonzales discovered the officials of the presidential security brigade were adulterating mileometers, the devices that register the amount of kilometers travelled by a vehicle, in order to justify the fuel expenses in falsified services that never happened.  Records were invented not only for the Presidential couple but also for the children and parents of Humala. According to the Digimin report, others implicated include Police Commander Simión Pérez Mego and the head of security Police Commander Antonio Medrano Lau


Source at the National Police inspectorate say the Digimin reported filming the offices at the precise moment that modified the kilometer readings in the vehicles. Continues here

IKN back and it does show, at least, that the Humala crew is trying to clean up corruption a bit...but sheesh, if the people guarding the Prez are up to it, imagine how many other scams are happening up and down Peru right here right now. 

PBI on mining in Colombia

Peace Brigades International (PBI) is an organization that monitors human rights abuses in Colombia. In its November monthly report that you can read right here, it looks at the mining industry in the country.

Do not expect a pro-mining standpoint, but do expect to learn a whole lot about what mining is like in Colombia today and how it affects the lives of normal people in this extensive and detailed report that goes into several case studies. Anyone interested in the mining industry in Colombia and is fed up with reading the shiny, happy "nothing ever goes wrong here" bullshit pro-mining stance of the junior industry would to well to read this PBI report and get some balance. If you're going to go mining, do it right.

Quadra (QUX.to) gets a quick polish

Poor old Candente (DNT.to) ....always the bridesmaid, never the bride. Here's the NR, here's how it starts:

VANCOUVER, BRITISH COLUMBIA, Dec 06, 2011 (MARKETWIRE via COMTEX) -- Quadra FNX Mining Ltd. (the "Company" or "Quadra FNX") today announced that it has entered into a definitive agreement (the "Arrangement Agreement") with KGHM Polska Miedz S.A. ("KGHM") (warsaw:KGH) pursuant to which KGHM has agreed to acquire all of the issued and outstanding common shares of Quadra FNX and all of the outstanding Quadra FNX warrants (the "2007 Warrants" and the "2009 Warrants") by way of a Plan of Arrangement (the "Arrangement").

KGHM, which is listed on the Warsaw Stock Exchange with a market capitalization of approximately US$8 billion, is the world's 9th largest producer of copper and 3rd largest producer of silver.

Under the Arrangement, shareholders of Quadra FNX will receive C$15.00 in cash for each common share of Quadra FNX, representing a premium of approximately 41.3% to the 20 day volume weighted average price of Quadra FNX's common shares on the TSX as of December 5, 2011. In addition, holders of the 2007 Warrants will receive C$5.76 in cash for each 2007 Warrant held, and holders of the 2009 Warrants will receive C$1.68 in cash for each 2009 Warrant held. The total transaction value is approximately C$3.5 billion, inclusive of US$500 million of outstanding gross debt. KGHM has advised that it intends to finance the acquisition using existing cash on hand.

Quadra FNX's Board of Directors, after consultation with the Company's financial and legal advisors, and based on the recommendation of an independent committee of the Company's Board of Directors, has unanimously determined that the Arrangement is fair to Quadra FNX's shareholders and warrantholders and will recommend that Quadra FNX's shareholders and warrantholders together vote in favour of the Arrangement. All senior officers and directors of the Company intend to yada yada continues here

x

Chart of the day is...

..the five day price chart comparing the percentages gains of Coeur d'Alene (CDE) and Rye Patch Gold (RPM.v):

I hope you're following this one, it looks like a lot of fun in the offing...except if you're the poor bar steward at CDE who forgot to pay the annual. Anyway, it's straight to the shysters now, so expect handbags at dawn NRs for the next few weeks between these two. 

Is RPM a buy on this? I have no freakin' idea actually, so I play the "i don't care" card and will sit on the sidelines...laughing.

What Peruvians think of the first 100 days (or so) of the Humala government

The chart below is part of this presentation that survey house Ipsos/Apoyo gave to the annual bizbash in Peru, CADE 2011, last week. In fact to be exact it's page four of the 22 page gig and your humble scribe has translated the words into English (using the magic of the 21st century's computer applications, no less) but the numbers are as per. The survey was taken in November so it can be reasonably assumed as a scoreboard of the Humala govt's first 100 days:

And thus we learn that Peruvians like the way he's running the economy but also say Ollanta sucks at weeding out corruption in the country. Oh hey wow, that reminds me of this little line we use round here:

WELCOME TO THE NEW PERU! (just the same as the old Peru)™

x

Ecuador and Kinross (K.to) (KGC)

This hit four minutes ago. Here's the paste-out:

TORONTO, ONTARIO--(Marketwire -12/05/11)- Kinross Gold Corporation (TSX: K.TO - News)(NYSE: KGC - News) announced today it has reached a non-binding agreement in principle with the government of Ecuador regarding key fiscal and legal parameters for the exploitation of the Fruta del Norte (FDN) deposit in Ecuador's Zamora Chinchipe province.
A number of additional steps are required to conclude a final and binding agreement, including: the completion and approval of the project feasibility study by Kinross; a change in project status from economic evaluation to exploitation in accordance with Ecuadorian law; and, following the completion of negotiations, entering into definitive exploitation and investment protection agreements in a form satisfactory to the parties.
"This agreement represents an important milestone in the development of FDN," said Kinross President and CEO Tye Burt. "Key objectives are to develop the mineral resources at FDN in a socially responsible manner and to work closely with the government and local communities to establish FDN as a flagship mining project in Ecuador."
The key terms of the agreement in principle include the following:

 

--  An obligation to maintain the government's share of project economic
    benefits at a minimum of 52%. Project economic benefits are defined as
    the cumulative sum of the Government's share (comprised of the royalty,
    corporate income tax, the state portion of the profit sharing
    contribution, and windfall profit tax, as described below, plus a 12%
    value added tax applied to customary project expenditures) and Kinross'
    share (comprised of the after tax free cash flows of the project),
    calculated annually;

--  A sliding-scale net smelter return royalty linked to the realized gold
    price, with a royalty of 5% for gold sold at a price of $1,200 per ounce
    or less, 6% for gold sold above $1,200 up to $1,600 per ounce, 7% for
    gold sold above $1,600 up to $2,000 per ounce, and 8% for gold sold
    above $2,000 per ounce. The net smelter return royalty is calculated on
    the basis of revenues after the deduction of windfall profits tax
    payments (see below) and customary transportation and refining charges;

--  Advance royalties of $65 million credited against future royalty
    obligations and payable in two installments, subject to various project
    development conditions;

--  A corporate income tax rate of 22%, to be fixed under the proposed terms
    of the investment protection agreement;

--  A profit sharing contribution equal to 15% of earnings before tax, to be
    fixed under the proposed terms of the investment protection agreement.
    This 15% contribution includes two components, with 12% to be paid to
    the State and 3% to be paid to employees. Profit sharing contributions
    are deductible expenses for the purpose of calculating corporate income
    tax;

--  A windfall profits tax, whereby the government would receive 70% of the
    excess of the realized gold price above an agreed base gold price. The
    base gold price is defined as the greater of $1,650 per ounce and the
    spot gold price at the time of signing of the definitive exploitation
    agreement. The base price is indexed to the United States Consumer Price
    Index (CPI) on a monthly basis. The windfall profits tax would be
    deductible for the purpose of calculating royalties, profit sharing
    contributions and corporate income taxes;

--  An exemption from customs duties payable on capital goods to be
    purchased during construction, as approved by the Ecuadorian government;

--  Electrical power to be provided from the national grid at the industrial
    customer rate (currently 6.8 cents/KWH);

--  Disputes arising between the parties will generally be subject to
    customary dispute resolution mechanisms including binding arbitration in
    Chile under UNCITRAL Rules;

--  If new Ecuadorian laws are passed that adversely impact the fiscal and
    economic parameters of the exploitation agreement, the right of Kinross
    to seek amendments to the fiscal parameters of the exploitation
    agreement to preserve the original economic equilibrium and/or seek any
    remedies, pursuant to customary dispute resolution mechanisms;

--  Kinross undertaking various social infrastructure initiatives to benefit
    local communities, including the construction of a road and training
    center, airport improvements, and contributions to local social programs
    through domestic and international not-for-profit partners selected by
    Kinross.

Kinross is finalizing a project feasibility study, expected to be completed at year-end 2011. As previously disclosed, the Company is experiencing industry-wide escalation on FDN project costs, and both capital and operating costs for the project are expected to be approximately 25-30% higher than estimates included in the project pre-feasibility study. Kinross and the Ecuadorian government are currently completing negotiations and drafting of the definitive exploitation and investment protection agreements.

UPDATE: For whatever reason, I've been mailed a couple of times since this post went up and asked an opinion on the deal as stands. Well for one, it isn't a deal, not yet anyway, which is made crystal clear by the NR itself. It's a "non-binding agreement in principle"...and hey, only 18 months and umpteen delays and postponements to get that, too. Second, the terms may well be workable...just about...for a big project with loads of high grading gold such as at FDN, but it's a poor precedent to set for the exploration sector in general and will put off far more companies about the country than will attract. As for the details, the 52% overall burden (minimum) isn't a big surprise, but the 70% windfall tax is very user-unfriendly and we're supposing that gets put on top of the overall 52% minimum, of course.

The bottom line is that for juniors, this deal sucks. And it still isn't a done deal.

Morgan Stanley reads Argentina badly, as usual

Here's how today's Morgan Stanley regular "This Week In Latin America" pdf kicks off:

Argentina: The Return of Orthodoxy? by Daniel Volberg.
While most investors will be watching the European summit next weekend, we will be watching Argentina for the names of the new cabinet ministers for signs that the new administration may be about to take an orthodox turn. Indeed, we think the most likely outcome is tighter fiscal and monetary policy along with moves to limit wage increases—all designed to regain control over Argentina’s inflation problem

This is what Kirchner inner circle member Daniel Filmus said today:

No surprises. According to Senator Daniel Filmus, the new Cristina Kirchner ministerial cabinet will not have any great changes.


"The cabinet will be, in general terms, the same as that which since 2003 has brought the transformations to the country. There aren't any surprises (in store)."

MS is quite good on other LatAm countries (esp Brazil and Mex) but its coverage of Argentina is consistently dumbass. Personally I think it's the fact that Capitalist mainstream commentators just can't get their brains round the fact that a country doesn't have to do what it's told to by the North in order to grow and prosper. So Daniel Volberg, this one's for you:

Great post on the Minas Conga protest by Jacqueline Fowks

Right here, with plenty of background and behind scenes snippets from the protest and ensuing media coverage.

Chart of the day is...

...gold (proxy GLD) versus the S&P500 index, last five years.

Screw you mainstream. Still laughing at the gold longs?

Ollanta Humala declares 60 day state of emergency in Cajamarca

Tonight Ollanta Humala appeared on TV in his first official type live address to the nation type TV thing. After his Prime Minister Salomon Lerner and a few of the ministerial gang spent nine hours in meetings in Cajamarca (trying to reach some sort of negotiated agreement with the local anti-mining protesters who've been rocking the city of Cajamarca for the last 11 days against the development of Yanacocha's Minas Conga project) and getting precisely nowhere, Humala went on teevee to declare a 60 day state of emergency in the four affected provinces of the region (that include the city and the Conga site).

A State Of Emergency sounds dramatic. What it has in theory is power to suspend four constitutional rights, those of freedom of transit, meeting, personal liberty and right of protection in personal property, but in practice these things are rarely applied. Instead, Humala is using this strategy to re-open blocked roads (potentially using the military as well as police) and making sure that enough forces of order are on the streets to allow shops, schools etc to open. 

The most interesting thing was his appearance on TV to declare this, as he didn't mince his words and made it pretty clear that 1) he's pissed that the protesters didn't have the slightest intention of making any sort of conciliatory moves during the meetings with PM Lerner today and that 2) he's an ex-army guy and he's not going to back down and go wimp at this point. So chances are that we get a few heads banged together in and around Cajamarca even though I hope that violence is minimal (preferably zero). Even so, Humala hasn't been hesitant to play hardball tonight and a potential marker has been laid down for the rest of his presidency. Let's see what the next few days brings.

Finally, a message to subscribers: The thoughts as per IKN135 today on this subject are still totally valid.

UPDATE: Watch a recording of his brief address here. 

Socrates himself, particularly missed

A sports figure unlike any other passed on today. Socrates was famous worldwide for his role in the 1982 and 1986 world cups, but he was much more besides.

• A chain smoking heavy beer drinker who didn't like turning up for training.
• A qualified medical doctor.
• An off-scale IQ.
• A man who refused to go for the big bucks and play in Europe until Brazil's dictatorship was lifted and formed a political pressure group around him to help force democratic elections in his country.

And that's just for starters. He died today aged 57 and will be missed not only as a impossibly gifted ball player but as a role model for those who seek a life less ordinary. For quality reports on the man, your author recommends this link and this link for some insightful English language coverage. May he rest in peace.

UPDATE: Corinthians stadium today.

The IKN Weekly, out now

 135 es y siempre sería para vos, Tere

IKN135 has just been sent to subscribers and I actually think it came out quite well this week. But hey, WTFDIK anyway?

Ever wondered how penny stock scams work?

Check out the latest from supersleuth David Baines, who notes how easily manageable the Haywood dudes' hadslap was on this one, too. Thanks to PW for the quick headsup.

What we're reading this weekend

Tim's El Salvador Blog gives us the headsup to "Free Markets and the Food Crisis in Central America" by Carlos Sanchez at CIP Americas, probably this weekend's best read and a spot on piece of analysis. Thanks Tim.

Setty does Arevenca again and I have a sneaky deaky feeling he's really on to something here.

Argentina won the doubles and the Davis Cup lives to its last day, though Delpo has to play Nadal on Rafa's fave surface tomorrow.

Biiwii worries too much about something that has no importance whatsoever. Me.

Ritholtz shows us how to protect our online reputations but I've found a much easier way of dealing with the subject. I don't give a shit about anything said of me.

And just so you know, I've replayed Cloudbusting about 15 times since yesterday. It's been too long and I'd forgotten how wonderful it was, but I remember now.

The Friday OT: Kate Bush; Cloudbusting

I just know that something good is going to happen

And I don't know when

But just saying it could even make it happen

I've been having a Kate Bush fest. Last week, and I have no idea why, her first hit Wuthering Heights popped into my head and I couldn't stop mind-playing it. Then last weekend I read by chance that she'd brought a new album out, which was pleasing to hear.

And then Bina over at News of the Restless topped off the coincidences* by featuring this very track, Cloudbusting, on her blog last Sunday.  I hit play over there and oh wow, how good is this song? How good is Kate Bush? Answer: very very very very but very good indeed, oh yes. I thought about a variation on Bina's most excellent choice for this week's Friday OT but favourites are favourites so it's Cloudbusting here, too. Thanks Bina, I owe you one.

For what it's worth, I also found this wiki page on the track and as it's pretty good, here's the bulk of the text for own enjoyment.

"Cloudbusting" is a song that was written, produced and performed by the British singer Kate Bush. It was the second single released from her no.1 1985 album Hounds of Love. "Cloudbusting" peaked at no.20 in the UK Singles Chart.

The song is about the very close relationship between psychologist and philosopher Wilhelm Reich and his young son, Peter, told from the point of view of the mature Peter. It describes the boy's memories of his life with Reich on their family farm, called Orgonon where the two spent time "cloudbusting", a rain-making process which involved pointing at the sky a machine designed and built by Reich, called a cloudbuster. The lyric further describes Wilhelm Reich's abrupt arrest and imprisonment, the pain of loss the young Peter felt, and his helplessness at being unable to protect his father. The song was inspired by Peter Reich's 1973 memoir, "A Book of Dreams", which Bush read and found deeply moving.

The music video, directed by Julian Doyle, was conceived by Terry Gilliam and Kate Bush as a short film. The video features Canadian actor Donald Sutherland playing the role of Wilhelm Reich, and Bush in the role of his young son, Peter. The video shows the two on the top of a hill trying to make the cloudbuster work. Reich leaves Peter on the machine and returns to his lab. In flashback, he remembers several times he and Peter enjoyed together as Reich worked on various scientific projects, until he is interrupted by government officials who arrest him and ransack the lab. Peter senses his father's danger and tries to reach him, but is forced to watch helplessly as his father is driven away. Peter finally runs back to the cloudbuster and activates it successfully, to the delight of his father who sees it starting to rain.
Filming took place at The Vale of White Horse in Oxfordshire, England. Bush found out what hotel Sutherland was staying from actress Julie Christie's hairdresser and went to his room to personally ask him to participate in the project. In the UK, the music video was shown at some cinemas as an accompaniment to the main feature. Due to difficulties on obtaining a work visa for Sutherland at short notice, the actor offered to work on the video for free.
The Cloudbusting machine in the video was designed and constructed by people that worked on the Alien creature and bears only a superficial resemblance to the real cloudbusters, which were smaller and with multiple narrow, straight tubes and pipes, and were operated while standing on the ground.In an oblique reference to the source material of the song, Bush pulls a copy of Peter Reich's "A Book of Dreams" out of Sutherland's sweater.

*don't exist

Daytime television

After watching TV this morning, your humble scribe feels it safe to say that Rafael Nadal is one helluva heckuva full-on good tennis player.

Delpo vs Ferrer up next (if you were wondering why blogging is light here today, you now know)

The cost of mining copper in Chile

From this month's AreaMinera comes this chart:

The ICCU index is a pretty carefully constructed dataset compiled by local beancounter firm Xlibrium that tracks the input costs for copper production in Chile. With October's numbers now in, the ICCU indicates that it's 0.15% cheaper to produce copper now than it was at the start of 2011. We also note that it's about 40% more expensive to mine copper than it was in January 2009.

Chart of the day is...

...zinc again, this time the six month chart.

It's going back to a buck.

Douglas Adams, Candente Copper (DNT.to) and an owl

Act One: A Douglas Adams quote.

"I love deadlines. I like the whooshing sound they make as they fly by."

Act Two: A Reuters report dated November 10th.

WARSAW | Thu Nov 10, 2011 7:57am EST

Nov 10 (Reuters) - Europe's No.2 copper producer KGHM will make a decision on a large takeover by the end of this month, its chief financial officer told a news conference on Thursday.
"In November there will be a decision in relation to the large acquisition, whether we'll buy or not," Maciej Tybura told reporters.
Local media have speculated that the state-controlled Polish miner was looking at Candente, a company with licenses to explore for copper and gold in Peru.

Act Three: A 12 month price chart:

Act Four: An owl:

Potato vodkas served, the end

Corruption in The Americas, 2011

Transparency International's 2011 Corruption Perceptions Index is out and you can see the website and its results by visiting right here. However, as we at IKN Nerve Centre™ only give a blinking flip about The Americas (we've found the rest of the world is rather boring in comparison) here are the results for Anchorage to Tierra del Fuego only:

And here's a nice chart that has all those in order, too:

For me, the funniest one of the lot is Canada, because it makes darned sure that it does all its corruption outside of its own borders....and that doesn't count, does it?

The 'Small Silvers' 2011 sweepstakes end November update

With just one month to go in the great race, here's how our competitors are faring:

click image to enlarge

The top three show no change from last month, with Endeavour Silver (EDR.to) (EXK)  in the lead and around 85% up on the year. In second spot comes Fortuna Silver (FVI.to) (FSM) and third place is First Majestic (FR.to) (AG).

And then comes our benchmark, the silver ETF (SLV) that tracks bullion and shows which mining companies are doing better than the metal they rely upon. From here down, the stocks are officially underperformers and start with Great Panther (GPR.to) (GPL), U.S. Silver (USA.to) and IMPACT Silver (IPT.v) in a little heap between SLV and the YTD breakeven point.

So seven down and only the three outright woofing, howling, barking dogs to go. They be MAG Silver (MAG.to) (MVG), Bear Creek Mining (BCM.v) and Adam Graf's hot pick for 2011, Golden Minerals (AUMN). A shame on all your houses.

So around the time you're picking on what's left of the turkey and refusing any more chocolate truffles cos you're thoroughly fed up with them, we'll declare the 2011 winner of the race. Til then, toodle pip!

Chart of the day is...

...the Gold/Silver Ratio (GSR), year-to-date:

There's too much getting read into this ratio at the moment, methinks. Sorry Gary, what you're watching like a veritable hawk here...it's just noise nowadays. It's charty twiddling that cannot and will never be able to predict the type of CenBank move we saw yesterday...y'know, the stuff that really matters.

Sometimes the Gold/Silver ratio has a purpose. Othertimes it's just one more random walk in TA Fantasyland.