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Our regular Saturday slot of the last five days' worth of action in the gold bullion ETF (GLD), the silver bullion ETF (SLV), the miner ETF (GDX), the junior miner ETF (GDXJ) and the copper ETF (COPX).
After the wild ride of early September, our squiggly lines put in a flat week. Flatter then something that's really quite flat indeed. Flatter than Holland. Flatter than the Utah salt flats. Thoough it is interesting to note that the mid week weakness was soon bought, so I'd consider things as generally positive. And happy birthday Mrs Rock! World's best person turns [redacted] today and deserved all the cake.
UPDATE three hours later: Errr, toldya. Now world trending topic on twitter and all the news stories you care to mention, ever since Keiko made the news of the application official.
"This report is paid for by Yorbeau Resources Inc. Yorbeau Resources Inc paid CONSULTANT to conduct research on the company on an annual continuous basis. This report is an independent assessment of Yorbeau’s business affairs, and outlines a business plan and strategic alternatives within the competitive market circumstances. In keeping with its policies of strict independence, aIl of the opinions expressed in this report are strictly those of CONSULTANT, and are free from any influence or interference from any person or persons at the company." continues here
I like this chart.
Several years ago we were approached by a former Canadian Olympic athlete (who was then in finance) about a radically new approach to financing mining companies. We expressed interest, and soon a document arrived from some group of German banks and financial companies, in which they proposed we give them a whole pile of shares and they would manage a listing for us in Frankfurt. But the fine details set off a whole series of red flags.
First off, they get a pile of shares. They claim that they can maintain a market price of about 1 euro. But we aren't allowed to do any financings or sell any shares on the market over here for one year. There were several other one-sided clauses in the contract as well, all of which led me to believe it was possible the shares would be used in a pump and dump operation. At the time there was a lot of pump and dump activity in Frankfurt.
I researched the various banks involved over the internet and discovered that their English language and German language sites were not linked. This was important, as the officers and directors on the English-language sites all had very bland backgrounds, but the officers listed on the German-language site were different and more interesting. Two of them feature in this release
I presented my findings at our next meeting with the German group, who shouted obscenities and stormed out. We never saw them again.
I like meetings where definite decisions are made.
Via @michaelmccrae over in the WorldofTweet (nice man), your humble scribe raises an eyebrow at this report in the China Post, which tells of North Korea selling large lumps of gold to China. Here's an excerpt:
"The Chosun Ilbo daily quoted sources in China as saying that the impoverished communist state had cashed more than two tons of gold worth US$100 million in China over the past year.“North Korea has been exporting not only gold ingots it had obtained from mines or stored in government agencies but gold trinkets it had collected from ordinary people,” an ethnic Korean businessman told the daily.“North Korean trading companies in China have been cashing the gold in secrecy,” the source said. “For this purpose, North Koreans are compelled to sell gold trinkets to government authorities.” continues here
With gold breaking out in Euros today, I think China's getting the better end of this deal.
UPDATE: Here's the link to part one, the rest follows on automatically
BNamericas: Regarding the feasibility study, what are the objectives?Tagliamonte: We received a scoping study or PEA prepared by AMEC in December of last year that was based on the resource that dates back to 2004, so it is preliminary data but it confirmed that it is a very solid project with a production profile of around 105,000oz per year of gold equivalent. From that time, we have been enjoying good success with exploration on the property so for the bankable feasibility study we're aiming for a target of 155,000 oz per year over a 10 year mine life.
BNamericas: What are the investment parameters of the project?
Tagliamonte: The PEA estimated investment around $90m and we believe that capex will probably increase by 35% based on a larger mill, processing facility and equipment, because now we'll go from a production schedule of 105,000oz to 155,000oz.
However, the resource will keep increasing, so I think that the 155,000oz per year will be an initial volume. It's difficult to give an exact number, but really I think that it will be between 155,000 and 200,000 oz per year, probably closer to that last number.
BNamericas: Will you be concentrating on permitting next year?
Tagliamonte: We are now gathering data for the environmental impact study and this will be part of the permitting paperwork. We hope to submit the application to the government at the beginning or middle of next year. On receipt of a positive answer, we'd like to start construction and have the mine in operation by the middle or end of 2012.
IKN back, so let's see now: In late 2010 the plan already envisaged a mine that would produce 105,000oz/annum over ten years, but Tagliamonte said the objective would be to build a mine that would crank out 155,000oz minimum and probably closer to 200,000oz. The price for this would be 135% of $90m, i.e. $121.5m. Not only that, but SUE.to was gathering the data for the environmental impact study at that time, it would be submitting for its permits in mid-2011 and would be in operation by the end of 2012.
- A feasibility study for a mine that doesn't even make 88,000oz/annum
- Capex of $131.8m without all that extra machinery for all those extra ounces
- Add to the capex item the $8.5m working cap and initial fills needed, plus the mere trifling of $47.8m in Life of Mine sustaining capital (translation = we'll build the tailings dam to the right size when we have enough money) and all of that pre-VAT (roughly speaking, sales tax)
- No environmental impact study submission, even though all that data was being gathered way back then
- As for having the mine operation by the middle or end of 2012....well, take a look for yourself.
1) Down the road La Arena is in the province of La Libertad. SUE.to at Shahuindo is in Cajamarca. That province name ring a bell to you, perchance?2) The NPV on this feas is still less than the current market cap of the company, even after today's drop in share price on this news.3) And it still hasn't had its environmental permitting even submitted to the Peru government, let alone considered, let alone approved. Want to hazard a guess as to how long you're going to have to wait for a construction decision on this? FWIW, put me down for 2015.
UPDATE: And now, Even more Sulliden (SUE.to)
The difference between mails received from subscribers to The IKN Weekly and those received from non-subbers
"Yesterday morning new York time I sold the remainder of my FSM (Fortuna Silver) at $5.75 which was great and I would have bailed earlier but for your patience.Currently the only "Otto Stock" I own is [redacted] but it sure is a good one. It is my third largest holding..."
My name is Dominic Frisby.
In 2005-6 I became disillusioned with the advice my financial advisers were giving me, sacked them and, reading insatiably, began to look after my own money. I was fascinated by the world of finance.
It quickly became obvious to me that the global economy was a train crash waiting to happen – and it amazes me that leading politicians, economists and journalists all, without exception, failed to see it coming. Mad though my friends and family thought me at the time, I put everything I owned into gold. It has since appreciated by several hundred per cent.
I read more and more voraciously. I started a podcast as an excuse to meet, talk to and learn from some of the incredible financial and economic minds I had come across in my research. Magazine asked me to write a column. I all but sacrificed my 'other career' as a comedian.
This book is the culmination of these seven years of study, bordering on obsession. Just as I saw the financial crash of 2008 coming, I now see another one, even more calamitous, headed our way; only this one has serious political ramifications as well. But now, as then, not one high-profile politician, economist or journalist seems to "get it" - because not one of them have correctly identified the cause of our problems.
I had never thought, before, about the nature of money. I never realised that there is a direct link between what we use as money and liberty, honesty and efficiency. It is in money – the blood of an economy – that our salvation lies. Continues here
UPDATE: On reflection I've decided not to be so cheap and have therefore ordered my e-book copy, as it wasn't expensive. I suggest you do the same
Oh noes! End of Times! The preppers are
right wrong right wrong...oh i dunno:
That's what? A very lot of dollars per ounce less! Mummy!
...Sulliden Gold Corp. (SUE.to), ten days:
It'd be a real shocker if we ever found out somebody was dumping on inside knowledge of the disappointing feas study published today, wouldn't it?
What? It wouldn't?
Yup, it's a scam. SEC, where art thou?
- Royalties collected by Chile are U$311m, down $105m, or ~25%, from the U$416m in the same period of 2011.
- Of the payers, the big three payers have dropped payments substantially. They are BHP's La Escondida (down 31% to $87m), Antofagasta's Los Palambres (down 37% to U$67m) and Anglo/Xstrata/other's Collahuasi ((down 39% to U$41m.
- The reasons for the drop in royalties are a) the lower market prices for copper which shouldn't surpirse any of us and b) an approximate 15% rise in costs of production, which is interesting to read.
...some vignette snippet of information from the world of the markets put into pleasing visual form:
- Funes of El Salvador (sexy and he knows it),
- Pérez Molina of Guatemala (enjoying honeymoon period)
- Chávez of Venezuela (look, take it up with Mitofsky not with me, ok?)
- Rousseff of Brazil (we like her, good at numbers and pals with Lula)
- Fernández of The Dominican Republic (who's made great strides since polling a mere 38% in January 2012)
This is what they wrote:
, /CNW/ - INCA ONE RESOURCES CORP. (TSXV: IO) ("Inca One") or ("the Company") would like to announce receipt from Minera Huaquillas an update on the progress being made with community members regarding public participation mechanisms and the advancement of exploration work on its Las Huaquillas gold-copper project in .Requirements Related to Public ParticipationThe Company continues to develop community partnerships as it works to complete the public participation workshop required for approval of mining projects by Peru's Ministry of Energy and Mines (the "Ministry"). Seven DIA presentations regarding proposed exploration activities at the Las Huaquillas Project were delivered to the area's surface land holders and coffee farmers betweenand , 2012. The DIA is an "Environmental Impact Statement" outlining a plan for advanced exploration activities on Peruvian mineral exploration projects.These presentations to further inform local community members ran smoothly, and attendees expressed interest and enthusiasm for the Project. A larger Public Participation Workshop followed on, 2012. In a repeat of the first scheduled workshop to meet the formal Ministry requirement before a mining exploration program can be commenced, the meeting was again interrupted by an outspoken local individual. While the workshop was suspended, the Company reached an agreement with the individual regarding the need to provide additional information to the communities involved.Inca One's CEOcommented: "We are working as quickly and cooperatively as possible to successfully complete the Public Participation Workshop requirement. However, we are also sensitive to the need to engage and inform the local communities about our plans. We have stepped up our information program with local advertising. We will schedule another official Workshop, and any follow-up meetings necessary to acquire the drill permits we are seeking. We understand time is of the essence. Shareholders can be confident that we are working with the interests of the Company's future in mind."Private Placement OfferingInca One is also pleased to announce the terms of a non-brokered private placement offering (the "Offering") to raise gross proceeds of up to CAD. Under the terms of the placement, the Company intends to issue up to 10,000,000 units ("Units") at per Unit.Each Unit will consist of one common share of the Company and one half share purchase Warrant, where each Warrant will allow the subscriber to purchase one additional common share of the Company at an exercise price ofper share for a period of 12 months from the date of closing, subject to adjustment/acceleration under certain circumstances. The Company may, at its discretion, pay finder's fees of the aggregate gross proceeds raised through finders pursuant to the Offering.The securities issued upon the closing of the Offering will be subject to customary securities legislation hold periods. The Offering is subject to receipt of all necessary approvals including the acceptance of the TSX Venture Exchange ("TSXV"). The Offering is anticipated to close on or before.The net proceeds of the Offering will be used to further develop community relations for the Company's Las Huaquillas Project and for general working capital.About Inca One:
"During the quarter, Tetra Tech advised that, due to manpower shortages and scheduling difficulties of staff, the March 31st timeline for completion of the Feasibility Study would not be achieved. The delay in completing the Mine Plan, a critical component in the Feasibility Study, has delayed the completion of the Feasibility Study until mid-late summer, 2012."The management's message was repeated in this NR dated August 2nd which said:
"The feasibility study is being led by Tetra Tech Wardrop on a minimum 120,000 tpd open pit mine and is expected to be completed by late summer, 2012."And less than three weeks ago on September 4th, CUU.v confirmed the delivery date of the long awaited feas study:
The feasibility study is being led by Tetra Tech Wardrop on a minimum 120,000 tpd open pit mine and is expected to be completed by late summer, 2012.