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12/18/15

The Friday OT: Tom Waits; Christmas Card from a Hooker in Minneapolis

With thanks for the suggestion from readers R and B (not R&B):




A jolly Christmas tune, sure to raise your spirits.

PS: If you'd like to check out the wonderful lyrics to this one, they're here.

The Minister of Energy and Mining versus Jaime Pinto

Here's a photo of today's edition of El Comercio, Peru's newspaper of record:



And yes, that's Peru's Minister of Energy and Mining Rosa María Ortiz, the country's top dog in the sector, giving her views on the supposed corruption of MEM officials that Jaime Pinto denounced earlier this week. Here are a few choice phrases from Señora Ortiz:
"We have investigated the criminal charge and no element of proof (or evidence) has been presented to the court that allows us to say there has been an act of corruption by functionaries in our sector (ministry). The name or names of the people who have allegedly been bribed aren't even mentioned."
"Anyone can bring a criminal charge, but for the sake of seriousness evidence should be presented and names of the functionaries being accused. Here we begin from the principle of presumption of innocence of all our functionaries, here there is no favouritism. But now that the investigation has been opened we will offer all the help necessary to the investigation that will be conducted by the public prosecution investigators. If they determine there has been a criminal or administrative event, we will proceed using the full force of the law, as is due."

Oh Jaime...look what you've done, Jaime...

And to think that Doug Jones and Robin Fryer thought that butter couldn't melt in Jaime's mouth. Helluva way to find out your people judgment is this poor, hey guys?

UPDATE: The El Comercio report is now on its website, link right here.

Chart of the day is...

...the Gold/Oil ratio over the last five years:



Spiky.

Standard Trolling (TON.v)

As subscribers know, I was interested in this one for a while this year. The business plan sounded great on paper and I met up with the team (who passed muster, particularly the Peruvian/Bolivian executives who were steeped in experience in this type of operation) but one of the pre-conditions for purchase of this stock was always a site visit to their toll mill facility in Huamachucho to see the thing for myself, to check out the community risk atmosphere. There was a visit slated too, but for reasons I never really understood the company never made that final call to fix a date for the visit.

I now realize why. Here's last night's NR from Standard Trolling (TON.v). Oh my stars. One bullet duly missed. Example from script:

Len Clough has resigned as Chairman, President, CEO and Director.  The Company’s Board of Directors is currently in discussions with a potential candidate to fill the resulting vacancy on the Board and to serve as the Company’s new President and CEO.

Next Steps

Standard Tolling is insolvent.

The Board of Directors of Standard Tolling is working to devise a solution to the Company’s financial difficulties, including ongoing discussions with Inca One respecting a potential asset purchase and debt assumption agreement.  Among other things, any such agreement will require the acceptance and agreement of all of the Ore Note holders.  There is no assurance that any agreement will be entered into with Inca One or any other person which will address Standard Tolling’s financial difficulties.

As the Company has only two directors with the resignation of Len Clough, it does not meet continued listing requirements of the TSX Venture Exchange and the Company understands that the trading halt on the shares of Standard Tolling will continue.

12/17/15

The Minera IRL voting results

As posted on SEDAR a few minutes ago (get your own PDF version over there).

I've scribbled a few notes in red at the side of each resolution, but remember the basic rule that as all resolutions were deemed "special" at this EGM, they all needed 66.67% to carry (at next year's EGM it'll just be 50% +1 vote).

 
 




The Friday OT on a Thursday: Four Tet; Angel Echoes

A beautiful track with a message worth remembering.



Four Tet is from the only branch of music that's bothering to innovate and reach for art these days.

Canaccord dumps on its copper coverage

Here's how their price targets have changed, from the front page of their "We Now Hate Copper" research report date December 17th. Well in fact the report's entitled "Survival of the fittest" but anyone with half a brain knows the real score.



Capstone at 30c and downgraded to hold, that one sticks in my eye (that and "sell Teck" of course). And for those of you who want to know what "downgrade to hold" means in the sellside world's code, a quick reminder from this post:

For those of you who need a translation, "cut to hold" in the world of sell side anal ysis means "MAKE LIKE A SHEPHERD"*

We good? My thanks to reader B for the forward.

*Get the flock outta here

Trident Gold (TTG.v) bites the bullet

Back in 2013, Trident Gold (TTG.v) bought the Marquesa Gold project in Colombia (close to Gramalote) from Colombia's Bullet Group (Grupo Bullet), for half a million in cash and 40% of its shares. At the same time TTG raised $4m or so from unsuspecting retail suckers savvy mining speculators to go exploring, because the deal involved them spending at least $1.5m on a drill program and things or that ilk.

This morning TTG sold the property back to Grupo Bullet for the approx $450,000 in debt it has outstanding (mostly to Grupo Bullet, surprise surprise).

Lather. Rinse. Repeat. See you in Colombia in 2019, Canuckies. Come on down, the water's lovely and the fruity rum punches are just so delish.

Candente Copper (DNT.to): Freeze Frame

Back on February 3rd 2011 Reuters ran this headline about Candente Copper (DNT.to), which was trading at the time at CAD$2.13:



And with DNT.to today at 2.5c, we now know the result of CEO Joey Freeze's prediction. Congrats Joey, one of your calls was right! Winning! Happy!


The Jaime Pinto IRL bribery accusation reaches Peru's main newspaper, El Comercio

This is how the El Comercio report, published just a few minutes ago, starts (translated):

"One day before being removed from the role of non-executive chairman of Minera IRL Ltd, Jaime Pinto dropped a bomb that puts under suspicion the system under which mining companies receive their environmental permits  .

"Pinto made public an expanded criminal charge that was present to the 4th Lima Super-Provincial Court Specialized in Organized Crime, according to which employees of Minera IRL S.A. (Peruvian subsidiary of Minera IRL Ltd) paid around U$11.5m in bribes to functionaries of the Ministry of Energy and Mining, between 2013 and 2014" Continues here

Be clear: A report in Peru's most prestigious newspaper claiming that government officials received U$11.5m in bribes is NOT a small story.

For more on this, including the full English translation of the press release that Pinto sent out at the time and the way in which scumbags like Pinto use the oddball criminal charge system for their dirty tricks campaign, check out this post from Monday

Now for a question: As the criminal charge was made under the name of the previous board of directors of Minera IRL Ltd, i.e. three people named Jaime Pinto, Doug Jones and Robin Fryer, will Jones and Fryer allow this criminal charge process to continue or will they withdraw themselves and the company from the process?

Hey, I wonder why Sean Roosen has been talking up Falco Resources (FPC.v) recently?

For example just days ago, ending this Q&A with...

But where, amongst Osisko's sister companies, will the next mine emerge? “Obviously it's hard to say which child you love the most,” Roosen says, “but Falco in Quebec. People don't understand the property, so there's quite a bit of value there.”

Hey, dythink it might maybe just perhaps have something to do with this news today?


You think? Maybe?

Exeter Resources (XRC.to) (XRA) doesn't cut all the costs it could

This morning Exeter Resources (XRC.to) (XRA) gave us one of those "we're cutting costs" NRs that explains about the lay-offs and salary reductions its decided to run on order to slow the burn on the cash it has left (now U$23m, was U$81m as at end 2010, so basically they've spent U$10m a year on......what?). It then goes on and on about the Caspiche project and the apparent benefits which we've heard about for the last five years and we still don't care (seriously, the story hasn't changed a jot).

But right at the end we're told...
 If you have any questions regarding Exeter, or would like a complete presentation forwarded to you, please contact Mr. Rob Grey, VP Corporate Communications at Toll-free: 1.888.688.9592 or by email at rgrey@exeterresource.com.
 ...so it's clear there's plenty of fat left to cut at XRC if they want. I mean, who needs a VP Corp Dev/Comms? Jobs for the boys par excellence.


Google Doodle mistake

I wake to find that the Google Doodle of today, December 17th 2015, is about Lugwig van Beethoven's birthday being today. And that's a mistake, Google People. 

It's almost certainly December 16th. Though there's no official record of his birth date, he was baptized on the 17th and the tradition in that part of the world in that period was that you got baptized the day after birth. Just thought I'd tell you. Have a pleasant day.

UPDATE: To give Google Doodle some credit, on the dedicated page it says, "It’s unclear when Beethoven was actually born, but December 17th marks the 245th anniversary of his baptism". 

12/16/15

FOMC in charts

Gold cared a little bit, but when it tried to care more nobody cared.



Copper didn't care at all.


The US Dollar pretended to care, but in the end couldn't decide.


Oil cared a bit, then again it has bigger things to worry about.




A well flagged decision. Janet done good. Care Bear.

What Minera IRL forgot to mention in its EGM news release of a few minutes ago

Here's the link to the official IRL NR, which doesn't have the percentages of the votes. That's probably because company chair and Team Hodges lackey numero uno Jaime Pinto was voted out with 92% of the votes going against him. Roughly 131 million to 9 million.

Bye bye Jaime.

It also forgot to mention that Doug Jones and Robin Fryer were elected via a minority vote, that's to say there were more votes against them than there were for them. The reason they survived is that the agenda items were deemed "special" and needed 66.67% of votes in order to pass. Come the AGM next year, those two charming and engaging gentlemen won't have that type of protection. Worth thinking about.

Bavin got 92% of votes in favour. Ramos around 86%.

As for Diego Benavides withdrawing his nomination, I strongly suggest you read the minutes of the EGM when they become available. They will explain things very well, you'll have no need for biased commentary from either side afterwards.

The IKN Weekly on Sunday will have a lot of details and thoughts about the result of the vote. It will also have a special section devoted to Jaime Pinto. And my stars Jaime, I've been waiting to publish on you vaya hijo de recontra mil putas que sos.


Timecheck: It's 1pm in New York

One hour to...


Having a difficult day, Jaime?

Oh dear!

Argentina to announce end of currency control this afternoon


They expect the Argentine Peso to trade at around 15 to the dollar once the news settles in, which is a serious devaluation. Good news for miners working in the country though, such as Rob McEwen, which is probably why MUX touched U$1 this morning.

Capex in mining, 2012 to 2015

Here's a chart I stuck together from data in the Ernst & Young PDF report I read this morning entitled "Opportunities to enhance capital productivity (Mining and metals megaprojects)" (ty reader R for the forward):


For the record, the sources for these data are 1) Ernst & Young analysis, 2) the Engineering and Mining Journal’s annual survey of mining investment, 3) the Deutsche Bank report “Riding the rising tide of global growth” of  February 2014.

And here are two other datapoints, as quoted from the report:
  • 69% of surveyed projects were facing cost overruns with an average cost overrun of 62% above initial estimate (where cost data was available).
  • 50% of projects were reporting schedule delays even after remedial acceleration initiatives had been applied.

Want more evidence that mining company management executives are among the most overrated in the world? Grist for your mill.

12/15/15

Salman Partners

Word is that Salman Partners is no more, victim of the commodities downturn. Today they closed shop, apparently.

There will be more.

UPDATE post close: Yup.

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 15, 2015) - It is with regret that Salman Partners Inc. announces that it intends to voluntarily resign from its membership with Investment Industry Regulatory Organization Of Canada (IIROC). Accordingly, we will cease carrying on operations as a registered investment dealer on February 15, 2016.
Industry conditions have made it extremely difficult for independent dealers to remain profitable. In this environment, Salman Partners has made the decision to voluntarily resign from IIROC. Arrangements have been made to ensure an orderly transition of all client accounts to alternative registered dealers and clients will be receiving information on those transfers shortly.
Salman Partners has been in business for 22 years and during that period, we were members of syndicates that raised over $20 billion dollars for over 400 issuers. As a research driven firm, Salman Partners trained over 50 analysts, many of whom are currently employed as analysts, fund manager or corporate executives globally.

Link here

Mailbag: Seriously, where do I start with this?

I got this yesterday from reader "Charlie":


You seem very upfront when I read your blog. I appreciate that. I do not know much about you or your work but somehow came across your blog a year or so ago.

I started following people like Casey Research, Sprott, Jeff Berwick etc those like minded people. Philosophically speaking I think they have sound ideas. I think Doug is extremely intelligent as well as Rick Rule. I know you rip Louis James, and recently Jeff's Galt Gulch.

I agree I lost a ton of money on Rubicon because of Louis calling a double if you buy by a certain date. I am furious over it. Also, people who invested in Galts Gulch clearly got hammered.

I guess my question is as people do you think Doug, Rick, Eric, Jeff, Daniel, Louis are good? And you do you consider their mining recommendations to be solid?

Charlie, do you really care what I think? I don't even understand the reason why you sent me this because the mere fact you use the word 'philosophically' in a paragraph that mentions Jeff Berwick is more than enough to mark our cards. But I will separate Rick Rule from the others, because he's not a snake oil salesmen. When you sit on the buyside like Rule does your motives and priorities are different and even though I'm not an adherent of his so-called anarcho-capitalism and I wouldn't trust him in a deal until he's signed at the bottom of a piece of paper, he's the only one of them who has a clear and respectable position: He just wants to make a profit. With him it's nothing personal, it's just capitalism. 

The other people you mentioned are different, they're just bullshit merchants. Some more successful than others and in the example of Doug Casey, his wealth stems from the insight of working out a couple of decades ago than there are a whole bunch of naive and financially inept people in the Libertarian (for want of another pigeonhole) movement that will give him money if he offers them the right message (gold/guns/freedom/Rand/etc). I'll give him credit for nailing a way to become rich but that's the limit of his intelligence, though. It's also a method that involves zero wealth creation, he hasn't added a thing to society, all he does is transfer wealth from one pocket (yours) to another (his). Ayn Rand would laugh at him in his face. He's also studied his PT Barnum because he knows the results of his predictions don't need to be right and they can be forgotten along the way, as long as the message about the future remains on-topic and intact. Tell stupid people what they want to hear and stupid people will give you money, it's the American Way and Doug Casey has been harvesting the fruits of the financially inept ever since he hit on the formula. As for their mining picks, you have first-hand experience of the fake geologist Louis Lobito Little Wolf James so I need tell you no more, but to give you an idea of how stupid Jeff Berwick is on mining try Googling his name and the word Batero.

Anyway, that's a paragraph you didn't want to read and ultimately I'm not trying to convince you, because if you think people who've consistently called the market wrong are smart about money you're already a lost cause. I decided to answer your mail on the public blog because it might just save some other sap from falling into the Multi-Level-Marketing hellhole they've created to trap greenhorns and fools. Thus ends another IKN rant.

Regarding Buenaventura (BVN) at San Gabriel (ex-Chucapaca), from IKN344

This was in Sunday's edition of the Weekly. The only thing that's changed is the chart, which is a 10 day chart updated to today and shows the considerable drop BVN took yesterday Monday, too.

xxxxxxxxxxxxxxxxxxxxx



Buenaventura (BVN): As this five day chart shows, at the end of Thursday there was a rough 2% gap between BVN and the GDX benchmark, but come the end of Friday that gap was up to nearly 8%.



The reason may be that BVN just sucks, but it’s more likely that the negative news from its San Gabriel project (13a) was already filtering through. The simple equation is...

Community known to be difficult + company with poor community relations record = accident waiting to happen

... so in a nutshell, last week BVN was due to hold its Environmental/Social Impact Presentation to the community of Ichuña regarding its San Gabriel (previously known as Chucapaca) gold project in the Southern Moquegua region of Peru.

The day arrived, as did the local authorities, representatives of the national government and the mining ministry (MEM), the BVN team and an estimated 1,000 members of the local population to attend to presentation, but before it could start the local authorities and BVN got into a “strong discussion” and after a prolonged discussion (that apparently happened in the police station) the meeting was eventually called off before it could begin. Adding to the mess, the locals who were to attend weren’t let into the meeting hall at any point (doors blocked by guards touting guns) and had to mill around in the main square, waiting for a yea or nay decision on the meeting happening for a few hours (until the nay was announced). Also, adding insult to injury the MEM representative, one Abel Díaz Berrios, told the local authorities that they could be subject to criminal prosecution if they continued to block the meeting from happening. That message went down like a lead balloon and hilarity ensued (though no meeting). In the words of regional council member Máximo Ramos Apaza who was part of the local authority group, “You don’t enter somebody’s else house and then treat them with a lack of respect. But the most important is that the people’s decision is respected”. According to reports, locals were upset about the lack of social outreach and communication from BVN up to last week and considered the company was trying to push through its obligatory Environment and Social meeting on the sly without having done enough beforehand.

It’s fair to call BVN’s track record in community relations as “patchy at best”, for example it has some of its non-core assets up for sale because locals want the mines to go back into operation, but not under the command of BVN. For another example, Conga. It has got to decent agreements and cordial relationships with some of its communities, for one example it manages to keep working at Tantahuatay in Cajamarca which is no mean feat, for another the word from its new Tambomayo project is positive. But you never know with this Roque Benavides guy (who could do with a lesson or two from his cousin, I think).  Then again, it’s also fair to call the population of Ichuña difficult, as even a company with a strong track record of community relations success such as Rio Alto made no progress there (when it took the option on a different Ichuña property held by Duran Ventures at the time, only to hand it back with no progress made).

The upshot is that BVN, once again, has a community problem on its hands that could be serious enough to block a key development project. The share price drop of Friday probably doesn’t reflect all of that yet. I still like the idea of buying into BVN due to its leverage to gold, but I’m also glad that I haven’t bit at it yet.

12/14/15

Tahoe Resources (TAHO) (THO.to) makes The Guardian

Good thing too, as any World Class company wants the chance at world-level publicity, right Ira Gostin VP investor relations at Tahoe resources?
"Ira Gostin, speaking for both Tahoe and Minera San Rafael, declined to answer questions about the case, stating “We are currently not granting interviews.”"

Oh, maybe not. Anyway, read all about TAHO here.

Minera IRL (IRL.to) (MIRL.l): The latest round of Jaime Pinto BS

Here's how the criminal charge system works in normal countries:
  • I accuse you of eating a live dog in public
  • You tell me not to be silly
  • I tell you I'm going to report you for eating a live dog in public
  • I report you to the police
  • The police ask me for proof or evidence
  • I don't have any
  • No charges are filed (and I might face my own charges of wasting police time)
 
And now here's how the criminal charge system works in Peru:
  • I accuse you of eating a live dog in public
  • You tell me not to be silly
  • I tell you I'm going to report you for eating a live dog in public
  • I report you to the police and I file criminal charges with the public prosecutor
  • The police and prosecutor then have to investigate
  • I can then tell everyone that you're under investigation for eating a live dog in public
  • Animal Rights campaigners beat you up in the street the next day.

In other words, I personally can bring criminal charges against you and until they're dropped by the authorities, your name gets dragged through the mud. It's also pretty easy to spin out the investigation process and have the charges hang round your neck for an extended period, especially if you're a lawyer and know the tricks (eh Jaime?).

Which brings us to the following, a news release that Minera IRL Ltd has distributed today, but only in Spanish and only in Peru (let's see if they go for it in the world sphere tomorrow morning, now that it's on the IKN blog) and to this point, there's no link to it anywhere, they're just sending it in mails to reporters and industry people. Cute. And once again they're basing the whole thing around things that anonymous callers told the IRL "Ethics Hotline" back in July, which means that 

1) Anyone can accuse a Team Benavides member of anything, made up stuff or whatever.
2) Team Hodges people will accept the anonymous word
3) Team Hodges people can then tell the world the person is facing "criminal charges" (see above).

It's interesting to note that this is exactly the same Modus Operandi that Daryl Hodges used when he was put in charge of Jennings Capital, until he was kicked out by the board for ruining the brokerage (that is quite literally ruin, too).

Here's an English translation of the Minera IRL news release in Peru only today, Monday December 14th.

UPDATE: IRL has published the criminal charge document here. But not the NR below, even though they sent it to dozens of journalists and industry people.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
 


New accusation regarding wrongdoings in subsidiary of Canadian company

Minera IRL S.A. accused of paying illegal commissions to obtain environmental and operating permits

Minera IRL Ltd. has discovered that several of the employees belonging to its subsidiary company have committed irregularites and corrupted public officials. These discoveries  concern members of the current management of the operations located in Ollachea, Puno who, according to accusations received via its “Ethics Hotline” and controlled independently, have paid illegal commissions in order to obtain environmental permits, among other serious crimes.

This has been brought to the attention of the relevant authorities by the board of directors of Minera IRL Ltd, via an expanded criminal accusation signed by the President of the board of directors and presented to the 4th Lima Super-Provincial Court Specialized in Organized Crime. In the expanded charge, it states that Diego Benavides Norlander, Oswaldo Nilton Sánchez Casas, José Antonio Cabia Vega and Patricia del Pilar Matsuda Ysa, among others, committed improper passive bribery, generic active bribery and illegal association in order to commit crimes.

In the text of the charge, the company noted that Benavides Norlander, who exercises absolute control over the administration of the subsidiary, refuses to leave the positions he holds despite the demands of the parent company, in direct denial of the board of directors who are looking to audit due to indications of underhand dealings by the current administration. It also states that on November 5th a criminal charge was filed against Benavides Norlander, Cabia Vega and Matsuda Ysa accusing them of organizaed crime and committing the crimes of aggravated fraud and illegal association connected to the deal in which the parent company obtaind a US$70m loan from COFIDE, but costing the parent company for commissions of  nearly US$3m that benefited an “intermediary” company, Inversiones y Asesorías  Sherpa S.C.R.L., that charged the company for non-existent services.

The new information regarding payment of illegal commissions has come to light from the conclusion of the processing of a series of accusations made since last July, administered independently by the firm Ernst & Young, which came from inside the subsidiary and reveal, among other things, the following irregularities:

  • Payments for access and attention of public funcionaries, including the incorrect use of company resources. This relates to a series of “money deliveries” that employees of Minera IRL S.A. made to several public functonaries in the Ministry of Energy and Mining (MEM) in order to “speed up” the revision of documents. These payments are hidden in accounts of “administrative costs” of “costs of representation” without adequate documentation. Also, it has been detected that some MEM evaluators have been given vehicles for their personal use.

  • Payment of leaders and community members in Ollachea, to which is added that the improperly delivered money did not fully arrive at its destinations. That is to say, part of the money was lost in transit and the payment of “expenses” was inflated so that a quantity was diverted from the object of the supposed expenses repayment.

“The information received from inside the subsidiary is evident and overwhelming; employees of Minera IRL SA have been bribing public employees of the Ministry of Energy and Mining. All these bribes to public functionaries were approved by Benavides Norlander and carried out by Oswaldo Sánchez, who worked in the post of Consultor to the General Management. In other cases, the method was the delivery of expensive gifts to certain key public functionaries. All this configures a systematic enactment of corruption of public employee in distinct entities of the State”, this according to the text of the criminal accusation presented to the 4th Court Specialized in Organized Crime.

According to the charges, between 2013 and 2014 the bribes totalled around US$11.5m. “However, it should not be a surprise that in the course of investigations there have been larger acts of corruption identified that have not been reported out of fear, or because other employees of Minera IRL SA have been implicated. This explains the motive as to why Benavides does not want to leave the management of the company”, states the text of the criminal charge.

As is known, passive bribery is a crime according to Article 394 of the Penal Code and consists of soliciting or accepting donations, promises or any type of unfair advantage in exchange for enacting a act connected to the obligation of one’s employment position. Generic active bribery is a crime according to Article 397 of the Penal Code and consists of “buying” a public functionary via donations, promises or advantages, that aims to obtain a determined conduct from the public employee involved. The crime of illicit association in order commit crimes, is a crime according to Article 317 of the Penal Code and is the grouping of two or more persons in order to commit crimes.



Freeport (FCX): Should have bought the GDX, Carl

On August 27th Carl Icahn announced that he'd taken an 8.5% position in Freeport McMoRan (FCX and let's hope I got all the capital letters in the right place there), which turned into an 8.7% position come November. He's apparently filed to state he's looking to take up to 25% of the company.

Here's FCX versus the precious metals from August 26th to today, compared to the precious metals producer ETF (GDX):


Here's an owl:

Here's IKN waiting for The Janet Show on Wednesday.

HudBay (HBM)

A new 52 week (and decade for that matter) low from HudBay (HBM) this morning. Now down 22% from the Garofalo goodbye announcement, just ten days ago. HBM's market cap is now 50% of the cash it spent to build Constancia. The Alan Haircut continues.


As we bide our time and wait for the Janet Show on Wednesday, as Lawrence Williams correctly notes this morning.

UPDATE PM: I'm sorry, did I day 22% this morning? I meant 24.5%. Wow there must be some nasty gossip going round HBM or something...

Kirkland Lake (KGI.to) misses

NR here, crux of the matter here:



The problem: Tonnage throughput was lower than expected. The reasons given by KGI in its MD&A were:
*During the month of August production delays were attributed to repair work in the 5100 Level loading pocket which resulted in an unscheduled week of downtime.
*In September, a ground failure on the 5300 Level at the main ore pass caused delays in tramming ore to the ore pass. Haulage was diverted to the opposite end of the 5300 Level to be dumped into the truck chute and hauled up the main ramp. This resulted in slower ore movement, while repairs were completed on the 5300 Level ore pass. Congestion on this level lasted for approximately twelve days while repairs were completed which resulted in a loss of approximately 3% of planned production for the quarter.
*In mid-October, a rock burst on the 5300 Level near the “Q Complex”, impacted production from multiple stopes while power lines were re-routed, which lasted approximately 5 days, and resulted in an additional loss of approximately 2% of planned production for the quarter.


Translation of reasons: Shit happens. And it happens at our mine.

So the big question: Will the Canadian sellside brokerage monkeys forgive one of its favourite charges for this miss and recommend their clients to "buy any weakness"? And the other big question: Is is possible to locate orsine defecation in areas of high tree density?

Spot the difference: Tahoe Resources (TAHO) (THO.to) and Primero Mining (PPP) (P.to)

An unpleasant fact is that deaths happen in mining, always have done and despite the enormous advances made in health and safety over the years, always will do. It's a dangerous way to earn a packet of money per month, period.

Which means in turn that deaths are  going to occur at mining companies that consider themselves as World Class operators, but it's only when the undesired event happens that we find out the difference between those companies that play at being World Class and those that live up to their word:

As regular reader will know, I'm no fan of Primero Mining (P.to) (PPP) but credit where due, this NR over the weekend is an excellent example of a responsible miner facing up to the hard side of the job and doing things the right way.

TORONTO, ON--(Marketwired - December 13, 2015) - Primero Mining Corp. ("Primero" or the "Company") (TSX:P.TO) (PPP) regrets to report the fatality of an employee that occurred at its San Dimas mine in Mexico on the weekend.
"We feel great remorse over the loss of our colleague Enrique Ortiz, an experienced underground miner at our San Dimas mine," said Ernest Mast, President and Chief Operating Officer. "Work-related losses are felt deeply by the Primero and Tayoltita communities and we send our deepest sympathies to Enrique's family and friends. The safe operation of our mines remains Primero's top priority, and we will continue to work hard to eliminate all work-place accidents." continues here


Meanwhile over at Tahoe Resources (TAHO) (THO.to), what has the company told the market about the death of an employee at the escobal mine in Guatemala in November, which was caused by an accident while he was on duty inside the mine?

Nothing

Nada 

Zip

Zero.

Which is the reaction of people who talk the talk, but can't walk the walk. No guts, no integrity, no humanity. Welcome to Tahoe Resources, faking it in Guat since 2012.

12/13/15

The IKN Weekly, out now




IKN344 has just been sent to subscribers. Plenty of chunks.

Hey, I wonder if you know what we know about Buenaventura (BVN)?

The top three most visited IKN posts this week are...

...in reverse order:

Third Place: "Confirmed: Photographic proof that "The Pilot" bar in Toronto is rat infested". Because you're so becoming in that photo, Chuck. Dapper, chipper and hunky.

Second Place: "Jaime Pinto and Elliot Associates: The full case file in English". Because the world is fascinated by you, Jaime. By you and by all the things you do.

First Place: "Now that IKN has both Bob Sangha and Sandeep Singh of Maxit Capital..." and it won by a country mile too. Because they love you in Canada just as much as we love you at IKN, Bob. They love you, Sandeep. Real love.