start here

start here

The Daily IKN email digest, get all daily posts sent to you next day (& no ads)

2/7/13

Apparently, Canaccord cares about IKN's view on Belo Sun (BSX.to)

We understand (though it's unconfirmed) that The Can of Corn has just issued this alert:

Belo Sun Mining (BSX:TSX, SPEC BUY, Target: C$2.50): The incakola newsletter/blog issues a negative comment on Belo Sun's Volta Grande project stating that the Federal Public Ministry recommends the Para State Secretary of the Environment does not permit the Volta Grande project. We would note that permitting in Brazil is done on a state level not the federal level. Further, the link on the blog article actually recommended that the license be granted only after impact studies and consultations with indigenous peoples are done (and this is part of the normal permitting process). This newsletter has a track record of incorrectly representing facts in order to put a negative spin on mining stocks. In the past, the author has made similar attacks (but by mis-stating facts) on other stocks such as Argonaut Gold. The newsletter does have a bit of a following so this may cause some concerns but we would be buyers on weakness.

In weak defence, we are unable to boast a track record of systematically bullshitting our own clients, though. Over to you, Soupy :-)

PS: Oh, and by the way we here at IKN Nerve Centre™ don't believe that this blog's personal view of the news is particularly important. More important seems to be the linked report itself, entitled "Federal Public Ministry (MPF) Recommends to State Environment Agency (SEMA) That Xingu (Pará) Gold Mine Is Not Permitted". But hey, why let facts get in the way of a chance to ad-hom, right?

UPDATE: And TD Sec's Daniel Earle is on the case this morning, though he takes a more balanced view and wisely leaves his original headsup source out of it. Earle notes that any consultation would delay BSX's timeline, which at least offers objective facts to his clientele rather than Can of Corn bullshit.

UPDATE 2: With the BSX story making Canadian biz TV today, we offer some words of advice for junior mining IR departments:


Cachaças served, the end