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7/13/13

A meme

For @octavodepollo and also just for the hell of it, cos it's Saturday:

On offer: Perhaps the single best job for a gringo in South America today (seriously)

We hear that there's a peach of a job on offer over at Associated Press (AP) at the moment, namely the chance of becoming Bureau Chief for its Caracas Venezuela operations. Just think of the wonders up for grabs:
  • Get paid in dollars and get to spend them at the unofficial exchange rate. You'll live like a king.
  • Live in one serious nutbar of a country and witness first hand all the goings on and get paid for the privilege of doing so. Anything you've done before or will do in the future will pale by comparison
  • Cover the only South American country that the English speaking North cares about (and with the sidebar chance of getting to cover the Snowden story).
  • Arepas
  • Cheap fuel
  • More arepas (hint: you'll like arepas)
  • Reporting on one of the world's highest murder rates without becoming part of the story...hopefully

I'm telling you folks, if my circumstances were different* I'd be up for this job like a shot. But things as they are mean I have to pass it over, but that won't stop me from highly recommending this chance to the fine people that read IKN (that's you, by the way). Check out the link here and the description as follows, though I would comment that if the first thing that comes to your mind is a joke about toilet paper, then this job is not for you:
The Associated Press seeks an experienced, inventive correspondent to be its Chief of Bureau in Caracas, Venezuela. The successful candidate will report to Latin American Editor. currently based in Mexico City, and work closely with AP staff from all formats across the region and globally.  

The Chief of Bureau will serve as a reporter/writer/multimedia journalist and run AP's Caracas bureau.  The  Chief of Bureau will be tasked with managing a team that produces spot news, enterprise and high-impact stories, photos and video in traditional and new storytelling formats. The Venezuela story is among the most challenging and competitive in Latin America as the oil-rich nation enters the post-Hugo Chavez era. The job encompasses keeping the AP ahead of the pack through standout personal production, source development and leadership of a team of mostly Spanish-language journalists.  The chief of bureau must be willing to switch into 24/7 mode as news demands. Flexible work hours including nights, weekends and holidays will often be required 

Qualifications:

A proven track record publishing exclusives, captivating deadline writing, social media engagement and management in stressful environments is required.  Photography and video production skills highly desired. The job includes administrative responsibilities.  Candidates should have demonstrated excellence in managing a news staff, in responding aggressively to breaking news and crafting distinctive, incisive enterprise.  Candidates must be able to guide staffers in working efficiently and accurately on deadline.  Complete fluency in written and spoken English and Spanish is required.  Candidates must be able to work flexible work schedules, including frequent evening, weekend and holiday shifts.  Authorization to work in the Venezuela is mandatory.

* i.e. not married, employable, able to stand working for a boss for once in my pathetic working life

PRE trial hearing

On this link and below you can read about the bits of its operations in Colombia that Pacific Rubiales (PRE.to) tries its damned hardest to keep away from the public eye, as well as details on the "public hearing" that's taking place this weekend, July 13th and 14th to get the views and hear from the people who work there, people who are clearly fed up with the company's non-stop abuses..

Colombian Popular Tribunal to try Canadian oil company

BOGOTAColombiaJuly 12, 2013 /CNW Telbec/ - Representatives of Canadian and Quebec's civil society organizations are in Colombia this week as part of a delegation to support and observe a popular hearing on the actions of Canadian oil company Pacific Rubiales Energy in Colombia. The hearing is part of the more expansive Popular Tribunal on Extractive Policies in Colombia, organized by Colombian social organizations, including the Unión Sindical Obrera (USO), the national oil workers union.
Pacific Rubiales Energy is the largest foreign oil company in Colombia. It produces 40% of the crude oil in Colombia and employs 15,000 workers. Over 90% of of their employees are subcontracted and  work for salaries below the oil industry minimum in Colombia. Since 2011 the company has been embroiled in a conflict with its workers and the communities living near the oil fields. In September 2011, Pacific Rubiales and the USO signed an agreement in the presence of the Canadian ambassy. The company never respected the agreement.
In December 2012, a subcontractor working for Pacific Rubiales and who had been working to organizer workers received a death threat and was later assassinated. The circumstances of his death suggest that the murder was related to his union activities. The company has also created a list of USO-affiliated workers in order to bar them from working in the region.
Despite this, the Canadian government has refused to intervene further in the labour dispute. Amir Khadir, a Quebecopposition Members of the National Assembly who participate in the delegation, has denounced this silence, arguing that the company's behaviour is damaging Canada's reputation in Colombia.
Dave Coles, president of the Communications, Energy and Paperworks Union of Canada (CEP), is participating in the delegation. "Pacific Rubiales has created a violent conflict, in which worker activists not only face threats and violence, but have paid with their lives,"  says Dave Coles, president of the Communications, Energy and Paperworkers Union, Canada's largest energy union.  "This is a black mark against Canada and the entire Canadian extractive industry," he says, calling on politicians to "take their heads out of  the sand and take action by calling for a moratorium on all extraction concessions in Colombia until the country revamps its policies. As it stands now, extractive companies are exploiting workers and the environment in the blind pursuit of profits."
The hearing will take place from July 13-14 in Puerto Gaitan, Colombia, near the oil fields where Pacific Rubiales operates. Workers and local residents will testify about their experiences with the company. The Canadian embassy declined an invitation to participate.
"When the Canadian government signed the Canada-Colombia Free Trade Agreement it also signed an accord concerning labour. The labour agreement stipulates that each country must incorporate and protect fundamental labour rights like the freedom of association and the right to collectively negotiate, including the right to strike. However, since the agreements took effect, the human rights situation in Colombia has not changed. At the same time, a Canadian company -- the largest foreign oil producer in the country -- has been in the middle of a two-year long labour conflict. What is our government doing about it?" asked member of the delegation Guy Martin of theConfédération des syndicats nationaux (CSN), a Quebec union.
"On top of a lack of respect for workers' rights, sources on the ground have reported violations of the economic, social and cultural rights of local indigenous communities. These groups will also be present as witnesses during the hearing," said another member of the delegation Terry-Lynn Brant of the Public Service Alliance of Canada (PSAC).
"The witnesses can  be vulnerable to threats before, during and after the hearing. That's why a Canadian delegation is so important: to lend visibility to this popular process, and to assure the security of witnesses," added Constance Vaudrin of the Americas Policy Group (APG).
The final session of the Popular Tribunal will take place from August 16-18, 2013 in the Colombian capital of Bogota. Members of the Canadian delegation will hold a press conference in Montreal following the closing session in order to share the conclusions with the Canadian public.
The Canadian delegation is made up of nine organizations: Québec Solidaire, Confédération des syndicats nationaux (CSN), Public Service Alliance of Canada (PSAC), Americas Policy Group (APG), Canadian Union of Postal Workers (CUPW), Committee for Human Rights in Latin America (CDHAL), CASA - Toronto (Colombia Action Solidarity Alliance), the Comittee for the human rights in America latina  (CDHAL) and Project Accompaniment and Solidarity with Colombia (PASC).
SOURCE: CSN
For further information:
media should contact:
Québec solidaire:  July 12 until July 14: Nadine Beaudoin, 514-706-3616, July 15 until July 20: David Dubois, 514-208-0454
CEP: Dave Coles, 613-299-5628
CSN: Martin Petit  514-894-1326
CUPW: Gayle Bossenberry, 613-236-7238
CDHAL: Marie-Eve Marleau, 438-820-5048
PASC, Louis-Philippe Degrandpré, 514-966-8421
APG: Brittany Lambert, 613-241-7007 poste 333


x

7/12/13

The Friday OT: Stray Cats; Stray Cat Strut

For @claushot, who's got cat class and got cat style.




This is rather good

source: internet

Alamos (AGI.to) buys Esperanza (EPZ.v) for 85c cash

AKA "Bargain hunters" overpaying for idiots. The end

UPDATE: Ok, not quite the end as a quick note on market reaction is in order. AGI is down over 5% on this news and quite right too. Meanwhile, EPZ.v is trading at 90c whch suggests the market thinks there may be a bidding war for the company, or perhaps it thinks Pan American (PAA.to) (PAAS) won't want to cut its own losses and stupidity on this stock. The bottom line is that the nice Mr. Market thinks there's another company stupid enough to think EPZ is worth more than its treasury balance today. Come to think of it and considering the amount of companies out there run by total dumbasses, that might not be as wild a thought as it first seemed. But all the same...ugh, no. Avoiding all trades on this silliness.

The most amusing part of Gold Resource Corp's (GORO) 52 week low this morning...

...is the way it's still massively overvalued:



It's HOC exit time and today's dumpage on the bell is a mere hors d'oeuvre, mes braves.

Disclosure: Short GORO for the 3rd time this year, average price in the $9s (because it'd be stupid not to be short frankly). I have a nominal downside price target of $7.50 on the stock but that was stuck in place when gold was $1.5k or so and is almost certainly way too generous to this company, perhaps the most laughably valued junior company in the whole woeful sector.

UPDATE: Accelerating now...



UPDATE 2: Would the last one to leave please turn out the lights? Thanks in advance.




"Long Term Outlook for the Global Exploration Industry": A fascinating presentation

My thanks to reader MM who last night sent over a presentation PDF by Richard Schodde of MinExConsulting which is linked right here. The subject is exploration for metals and Schodde goes into several very interesting factors about the economics of the discovery of new metals deposits. Here are the six main categories of the show, to give you an idea:
1. Trends in global exploration spend Forecast future spend out to 2020 & financing issues for Junior Companies  
2. Trends in discovery rates Where were the discoveries made? Current “Hot Spots” for exploration 
3. Trends in discovery performance Which Regions did better? Factors impacting on discovery performance 
4. Trends in the types of exploration methods used Geophysics versus geochemistry versus “nearology” 
5. Trends in discovery costs Unit discovery costs ($/oz, c/lb) are rising 
6. Are we finding enough metal? To be sustainable we need to find enough to replace what we mine
Once you download your copy (and do it, you won't regret it) you'll also see that Schodde goes light on the script and heavy on the graphics, letting his well-researched story tell itself in a visual manner. All metals are featured, including PMs BMs uranium (the insights into the cost of discovering copper these days were particularly thought-provoking) as well as breakdowns into world locations for discoveries and methods used to discover new deposits (e.g. the rise of geochem). Here's the link, now use it.




Chart of the day is...

...five days of B2Gold (BTO.to), all special for Iwnattos:



There's your first 20%, dude. Now what ya gonna do? Huh? Huh?

7/11/13

Snowden's ETA in La Habana, Cuba...a few hours...probably

As reader 'T' points out today:

"Aeroflot 150 has a different flight path today… normally it would go over the USA so what are they trying to avoid? "
Link here and another link here

Seriously, have a look at those two links for yourself. 

UPDATE: Reader 'P' chimes in:
Currently Ed is flying through the Bermuda Triangle. Yes i had to look up where it was.
Bermuda
Ed
The perfect storm. Grab the popcorn.

UPDATE 2: It was fun while it lasted. The Pravda will out in the end 

Randy Reichert, Veris Gold, (VG.to), Stockwatch, JJ and instant classics

Stockwatch's Mike Caswell is, of course, wonderful. From here and below is the public viewing bit but I promise you, hand on heart, that it's worth taking out a 12 month subscription to Stockwatch just to read the whole thing. Reader 'JJ' alerted your author (ty sir) with a mail entitled "Instant classic", which is spot on.


Veris Gold Corp (C:VG) 
Shares Issued 107,641,344
Last Close 7/10/2013 $0.49
Thursday July 11 2013 - Street Wire
by Mike Caswell
Veris Gold Corp. says it fired its former chief executive officer, Randy Reichert, after "very serious problems" that included an angry outburst at a trade show and an incident of "inexplicable rage" at the Jerritt Canyon mine. His treatment of employees was abusive, intimidating and degrading, the company claims. The problems were serious enough that they amounted to just cause for his termination, according to Veris.
The company is responding to a wrongful dismissal lawsuit that Mr. Reichert filed in the Supreme Court of British Columbia on June 14, 2013. Mr. Reichert complained that the company dismissed him from his job as co-CEO in a "high handed" manner after he questioned possible inappropriate actions by senior executives and board members. Among other things, Mr. Reichert had attempted to block the company's chairman from buying shares with knowledge of a potential takeover bid, the suit stated.
Veris, however, says that that it had just cause to fire Mr. Reichert. In a response filed on Monday, July 8, the company lists a number of incidents in which he mistreated employees "to an extent far beyond acceptable boundaries." Among other things, he humiliated employees in open view of others and reacted angrily when anybody appeared to question or disagree with him, the company claims.

A couple of random thoughts at 1280 gold

That number in the title line is not enough to support this morning's PM equities pop. In fact, bits and pieces of red already showing on your author's radar in a small handful of issues that have been hit recently by sellers, or put another way this move is already being seen as a window to lighten, at least by some. Another leg up is unlikely without gold moving to and beyond $1,300, though there are a few specific stocks with their own reasons to move higher from here.

Re ABX, I've taken several mails in the last 24 hours with agreement and disgreement voiced. I thank you all for the time taken in writing in and may have more to say later, though I want to make clear that I still hold no position in the stock.  But overall (ABX and all other stocks) I'm with Iwnattos and these words of his this morning, "You goldbugs can go ahead and take your chances at making the first 20% in the next 500% junior miner bull market. I'll come back when the coast is clear.". That's because I'm a whuss, too. Anyway, toodle pip and all that, I'm taking the day and stepping out the office so no more posts until tonight at least.

Understanding junior mining newsletter writers

We're just before the open on a day on which a little reminder of their business model may well be required:


Any questions?

x

Chart of the day is

...the US Dollar (USD) index:

You'll note that this morning's level is only a teeny tiny fraction below the price the world was paying for a United States dollar on the 1st of this month. Context is important, but so is sentiment of course and the dove droppings (ewww... can we say that?) of last night have sent a shudder through a lot of they-work-right-up-to-the-moment-they-don't autotrades.

Should be an interesting day at the races today.

Prediction of the day

Due to this line in this NR...
"As a consequence of the recent drop in metal prices and the need to conserve existing cash reserves, the Company has decided to evaluate alternative sources of funding."
...Alex Black of Rio Alto (RIO.to) (RIOM) will get phone calls from every Canadian brokerage you'd care to mention this morning.

7/10/13

An interesting move in gold tonight

First time for a long time that any sort of interesting move has been up.



Let's see if it holds tomorrow, though we should reflect that "as high as $1,300/oz" isn't exactly 52 week high speak, either. And that this is more about the dollar's post-Ben dumpage than gold's sudden popularity. Still, up is up, not complaining.


Guatemala: President Otto Pérez Molina talks mining for half an hour

The programme "De Frente Con el Presidente" last night was dedicated to mining in Guatemala and put forward the government's pro-mining position. Watch the whole thing here:



Aurcana Corp (AUN.v) class action update: Game on

On May 23rd, your humble scribe published the post "The potential for a class action suit against Aurcana Corp (AUN.v)". The note included this extract...
"...the post today isn't about a dose of them there sour grapes (it's only money, after all) and more about how I'm sick and tired of having to listen to, read and pay attention to liars and scumballs in the mining industry such as Lenic Rodriguez, Pres/CEO of Aurcana. What we have in this case isn't a subjective opinion that he's a liar either, as the company's own words make it abundantly clear that AUN.v told outright falsehoods to the market in December 2012. As such, and considering the hefty share price drop between then and now, AUN.v looks ripe for a potential class action suit."

...and went on to make clear the falsehood about its 600tpd commercial mining rate at Shafter.

Today, July 10th, we get this on the wires:
WINDSOR, ON, July 10, 2013 /CNW/ - A proposed class action has been commenced in the Ontario Superior Court of Justice against Aurcana Corporation (AUN.V).  The plaintiff has retained Sutts, Strosberg LLP, a law firm that represents investors in securities class actions, to prosecute the action.
The proposed class action concerns the circumstances surrounding Aurcana Corporation's April 12, 2013 announcement that its Shafter Mine had not reached its initial production target of 600 tons per day on a continuous basis.  Since the announcement, the company's share price has declined significantly. 
Shareholders may visit the website www.aurcanaclassaction.com to learn more about the proposed class action.  Shareholders who wish to discuss the matter should contact Jay Strosberg at 519.561.6296 or by email at jay@strosbergco.com
Sutts, Strosberg LLP is a leading class action law firm that has recovered over $1.5 billion for its clients. 
SOURCE: Sutts, Strosberg LLP Barristers & Solicitors

Now that is interesting and immediately, Aurcana (AUN.v) responds with...
Aurcana has noted a press release of Sutts, Strosberg LLP, a law firm located in Ontario that engages in plaintiff class-action lawsuits, in which Sutts, Strosberg has asked Aurcana's shareholders to contact it in relation to declines in Aurcana's stock price in recent months. While Aurcana's management is not pleased with the recent trend in Aurcana's stock price, it does not believe that the current stock price reflects the underlying value of the Company, and it notes that there have been significant declines in the stock prices of almost all silver producers over this period. There is no basis for a class-action claim in relation to Aurcana's stock price.

...which is also interesting, considering how quick it was off the mark. That shyster and two-faced piece of crap Lenic Rodriguez must be running scared, at least for enough time to get him off that yacht of his, cruising round the Med. This is a story worth watching. 

The Barrick (ABX) bearish bullshit hype now signalling a rebound

Contrary to some readers' assumptions I'm not a Barrick Gold (ABX) (ABX.to) fanboy. I hold no shares of the thing and from the 30,000 foot bird's eye view level, even though the people that run the shop are strategic morons that have made a whole series of errors to get where they are today, I doubt they're the devil incarnate types they're sometimes made out to be and I've always been (and still am) agnostic about its corporate ways after years of watching it do both its good things and bad things....when all said and done, it's just another capitalist entity. Added to that, I've raised an eyebrow or two over the recent dumpage in the stock price but I can't say it's been a mighty shock either, probably because I do know my way round a balance sheet and (unlike so many I could mention) care about petty, old-skool things such as assets, debt, liquidity...y'know, trifling stuff.

But this kind of bullshit from the uninformed idiot chatterers...

...has all the hallmarks the typical and classic overstepping of the mark which flags the level at which a distressed stock price has been oversold. If market sentiment can swallow the type of tosh, balderdash and nonsense spewed out by some wet-behind-lugholes anal yst with just about nous to be dangerous (first to himself, then to others) then we're talking about a market that has overstated the risk that ABX currently runs. Herds gotta herd.

This damnfool author at Mining Dot Com named Anthony Halley obviously hasn't bothered to think things through at all, preferring to rush into the conclusion he's already drawn from his own bias and cherrypicking of data. Seriously people, think about it for one second: Here's the argument on which Damnfool Halley bases his headline:
Barrick Gold's (NYSE: ABX) expected asset writedowns of $5.5 billion on the Pascua Lama project in Chile would slash the company's net worth by roughly 40%, shrinking its credit facility 'cushion' to $4.1 billion, Bloomberg reported Tuesday.
The company needs to hold a "consolidated tangible net worth" of at least $3 billion in order to sustain its $4 billion revolving credit facility.

What? I mean WHAT? as in WTF? You mean to say that the CEO of Barrick thought this to himself:
"Oh, I know what I'll do! I'll voluntarily write down such a big portion of our fixed assets that we lose our debt facility and cause a cash crunch and liquidity crisis at the company! Hey, what a smart boss I am!"

Anthony, listen to me: You. Are. Being. Fucking. Stupid. You're seriously suggesting that a company will commit financial suicide by doing its own balance sheet in to such an extent that its credit facility is impaired. Thing is, considering the mail received yesterday on this report and the subject, as well as the recent price action in ABX, the market seems to think that ABX has actively decided to cause itself liquidity damage, or at least hasn't discounted the damnfool Anthony Dumbass Halley argument. That's my idea of an oversold signal waving a large flag at me and blowing a whistle, too.

So, pair trade anyone? Long ABX/Short GLD? 

Endeavour Silver's (EDR.to) (EXK) 2q13 production numbers

NR here, comparative charts here:



Three mines, three things:

1) Bolanitos (used to be known as Guanajuato) had a good quarter which was due to a temporary boost via the leasing of a nearby mill.Now that advantage has gone, the mine will see throughputs drop back again and future quarters less eyecatching
2) Guanacevi continues to show its age, that tired quarter-on-quarter look of a mine that's slowly depleting.
3) El Cubo sucked, but that's because it was closed down for a a little over a month for re-fitting and upgrading, so we'll find out next quarter if that has been a good  idea.

Overall a lacklustre quarter that got a decent slap of make-up over its wrinkled visage thanks to that temporary mill deal for Bolanitos, which may explain why EDR has underperformed in 2013 even when stacked up against a crappy sector and its peers. 



Chart of the day is...

...the gold/SP500 index ratio, for pal WW:


This time it's different. Really.

7/9/13

If you're wondering about the new Lowell Copper (JDL.v) "Ricardo" property...

...it's 16,250 hectares big and is located near Calama, about 12 miles South of the big Chuquicamata mine. In other words, smack in the middle of the porphyry copper elephant hunting zone of Chile. No Surprise there.

Peru leads the world!

In cocaine production (and by a mile):


According to the USA and the White House Office of National Drug Control Policy, at least. Read all about it here in this Bloomie note but to help you save time we know it's all Evo Morales' fault, right? Even when Bolivia production drops by 18% year-over-year. That's because Evo kicked out the DEA and ever since then, production's been falling. But that's just a coincidence because it's all Evo's fault, you hear? All. Evo's. Fault.




And just so we're clear on Coeur (CDM.to) (CDE) while we're at it...

...if you read IKN you knew yesterday.



There was no need to wait for the Pavlovian dog response from the brokerage downgrades today.

Just so we're clear on Huldra Silver (HDA.v)

Ryan Sharp's CV (your author's highlight in bold type):

Mr. Ryan Sharp, BA MBA has been the Chief Executive Officer and President of Huldra Silver Inc. since June 2010. Mr. Sharp has been the Chief Executive Officer and President of Venerable Ventures Ltd. since February 1, 2010. Mr. Sharp is also the Promoter of Venerable Ventures Ltd. He has been the President and Chief Executive of Huldra Silver Inc. since May 2010. Since March 2009, he has been self-employed as a consultant working with public companies. Mr. Sharp was employed as an investment advisor for Canaccord Genuity Corp. from January 2005 to March 2009. From December 2002 to December 2004, he was employed as an investment advisor for Scotia Capital. He has been a Director of Huldra Silver Inc. since March 25, 2010 and Venerable Ventures Ltd. since February 1, 2010. Mr. Sharp obtained his MBA from Simon Fraser University in British Columbia in 2003 and a Bachelor of Arts from the University of Western Ontario in 1991.

And Huldra Silver (HDA.v) today has news on Ryan Sharp:
The Company has appointed Peter Espig, a director of the Company, as interim CEO to replace Ryan Sharp. 
Surrrrrprise! So that just about wraps it up for our sporadic coverage on the trainwreck-in-waiting that was Huldra Silver (HDA.v), all that's left now are for the IKN readers who wrote in with stuffy mails earlier in the year, defending the comapny, telling me about the rock solid business plan and its "no-nonsense, straight shooting CEO" to write in again and offer up a thought as to whether they've changed their minds. Either that or just...

"Oh I'm sorry Señor Morales, there seems to have been some sort of misunderstanding...

...as we didn't realize that we were being such utter fucking dickbrained assholes."*

Last Friday Spain said it had "Nothing to apologize about" for its role in the EvoMobile incident funstuff stuck in Austria Snowden thingy. And then today we have this from Spain's Foreign Minister, José Manuel García-Margallo (the very same dude that said no go to sorries last week):

"If there has been some sort of misunderstanding, I have no problem in offering apologies"

*What? Not very diplomatic, you say?


Donner Metals (DON.v) has a lesson for you

Today's NR here, the need to know stuff below:

Jernoc Wobert news


Colombia Reports has a potentially positive development in the saga of Jernoc Wobert, the exloration geologist sent into a hot zone in Colombia by the idiors at Braeval Mining (BVL.to) who then pleaded total innocence over the matter:
Colombian president Juan Manuel Santos on Monday announced the arrest of an ELN rebel commander held responsible for orchestrating the kidnapping of a Canadian citizen earlier this year.
Continues and there's more to read, so click through here. A negotiated settlement just got closer, perhaps? It would be good because Wobert has recently been reported as ill by his captors.

Chile's copper people at Cochilco drop their 2013 copper price forecast

Yesterday evening Cochilco dropped its forecast for the 2013 average price per Lb of copper to U$3.27/lb, from the U$3.52 of May, proving once again that they're dumbasses on the subject.

please note the cut down Y-axis, done to show contrast and not to fool you

Source here.

Chart of the day is...

...copper on the hourlies, which is way more interesting than the (somewhat unsurprising, eh subbers?) upmove in gold:

Will 3 hold? Or won't it? Or will it? Or not? Oh, the suspense.

7/8/13

In which your author addresses the subject of e-mail etiquette

You probably haven't given it much thought and even if it has crossed your mind you probably don't care much (and rightly so) but as your humble scribe 1) runs a blog which occasionally puts forward somewhat strident views, 2) elected a while ago to turn off the comments facility* and 3) offers up his e-mail address on the page for anyone who might care to write in, mail arrives from readers at a pretty regular pace. Under normal circumstances the mails received are a very pleasant thing, but now and again there do come the type of missive that isn't so wonderful to read and it's here that we get to the point: Over time I've developed an easy way of dealing with all mailers, not just the hatemail type, that is encapsulated in one simple and long-understood rule:

Do unto others as they do unto you

So if you write to me in a businesslike manner, you'll get a businesslike mail in return. Or if you're friendly to me, I'm friendly to you. If you're curt, expect curtness right back at you. Et cetera and including rude mailers, which is the nub of today's post. This subject is fresh in my brain because one such rude encounter happened today, when A.N. Asshole told me how, according to them, I should think on a specific subject. The reply to that one is always easy enough, "Don't tell me how to think", which is what was sent back all concise and to the point.

Now, at this juncture I haven't cut off contact with Mr(s) Troll but when it comes to the rude or negative stuff, there's only ever one chance given. If you out there decide on reflection that you were a little too short and relax a little (no need to apologize either, just adopt a better tone) then we can still be friends. But if you decide to return with interest, then the way forward is simple.

1) You get a flame mail from me with a bunch of choice swear words.
2) Your address is blocked, you are told that it has been blocked, you read "goodbye forever" at the end of the mail.
3) That's it.

There are no second chances. Ever. My time is too precious to waste it on the blithering idiots that occupy their own little corners of cyberspace and (painful) experience has proven that there is absolutely no point in engaging with this type of person, so once your single chance has been used up you leave my life and never return. 

The moral of this story is less about me and more about you: Be nice to people when you mail them, yeah? You'll find it a far more productive way of spending your time if you do.


*life has been beautiful since, a fine decision it was

The funny bit from the Coeur (CDM.to) (CDE) news release this morning

This bit:



Full NR here

So remind us again how much Coeur paid for Orko Silver? $100m cash and 11.5m shares, you say? 



Yeah, really

UPDATE: And yep, reader 'PP' is correct when mailing in to mention that First Majestic (FR.to) (AG) also picked up the $11.6m break fee from Orko (i.e. Coeur). I just hope that Neumeyer dude is aware and grateful about being born under a lucky star.

So I'm sitting here, thinking about Barrick's (ABX) balance sheet...

...and once you dial up the latest financials, you see that:

Total assets are $49Bn
Total liabilities are $23.8Bn

Which isn't so bad (and working cap at ~$3Bn is the type of number that a company without immediate cash crunch problems has). But then you start wondering, "hmmm...wonder how much of those assets needs to be written off?" and once you consider what the company said in its latest release, there's perhaps $5Bn of the Pascua Lama asset (booked at $6.5Bn today) that's about to go. Then ABX still has $1.8Bn booked for the never-gonna-happen Cerro Casale in Chile. Add to that the $115Bnm for Donlin (hahahaha) and what we're really looking at here is a total assets (even before it writes down any of the goodwill) of $42Bn, not 49.

So, BV of $18Bn? Yep, I'd go for that right now. And oh look, it's running a market cap of $14Bn, as of this morning. A P/BV of 1.3X 0.77X* is:

a) the mark of a dysfunctional company (natch)
b) the kind of price that might make it interesting as a takeover.

So as I floated the thought in April, let's do so again now that ABX is another 1/3 cheaper: Would Goldcorp (GG) take a run at ABX at these prices? If it did it could scrap the idiot corporate culture running the decent assets (it still has those), it could scrap Pascua Lama once and for all, it would add value all round.

PS: I only post these things to have wonky mail exchanges with certain people the next day, so don't read too much into it or start thinking that I'm trying to get a posse together to go shake up the town.

UPDATE: About that * above, yes yes i'm a dumbass and flipped the numbers over, as (smarter than I) reader TC kindly pointed out. TY dude. The argument doesn't change, though.

Good news for the WSJ: Its Pin8 dream for Cairo is coming true

We noted last week how The Wall Street Journal believes that Egypt would be "lucky" to get its own private Pinochet. Well folks, lucky lucky lucky, it didn't take long:


Which translates as, "Well, they called us nasty names, didn't they? We're not standing for that, we're the army!".




Chart of the day is...

...the gold/silver ratio:


On a slightly separate subject, VancVen's post linked here and entitled 'Gold miners will continue to suck' is a pretty good overview of the current sector situation. However (and as the title suggests) don't go over there if you're after a chunk of soothing bias confirmation that all is well and that things are about to zoom back. For that you want King World News.

7/7/13

The IKN Weekly, out now


Yeah, out the reach of children. Not a bad idea.

IKN218 has just been sent to clients. We do regional risk.

Pope sez

"It hurts me to see priests or nuns with the latest model of new car....that cannot be! Better to travel by bicycle or use a more humble vehicle, think of children who are dying of hunger"
Ok, time say it out loud: I like this Pope