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10/15/16

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

...in reverse order:

Third Place: "Traded volumes in the mining stocks are dogshyte today", one of those silly one-line posts that gets popular for no apparent reason. Don't bother clicking through, there's nothing there, but at least I got to use the word 'dogshyte', which was fun.


Second Place: "The B2Gold (BTG) (BTO.to) rumour...". According to sources The Clive is willing to sell his company's Nica ops at the right price. According to hit counts, IKN readers like rumours.
 
First Place: "IKN's one and only opinion on K92 Mining (KNT)", the post that kicked off all the Derek and Clive stupidity all week (but don't worry, the Friday OT really was the last of that little series) and became the most hit post by a margin. By the way, thanks for the mail responses on D&C with roughly half going "OMGWTF is that???" and the other half going "OMGWTF I used to listen to them in university!!!". The latter group tended to be Brits.

10/14/16

Las Bambas Peru: Clash between locals and police leaves at least one dead

This just in: This afternoon locals blocked roads in and out of the Las Bambas copper mine in Peru. Police then moved in to break up the illegal roadblock and in the resulting melee, at least one local was killed and another three injured. Reports are still sketchy at this time.

Dear OceanaGold (OGC.to) (OGC.ax)

You freakin' idiots. I still can't believe you got involved with the PacRim snafu voluntarily.

And what does your pisspoor judgment about political risk in El Salvador tell us about your risk acumen in other countries?

And by the way, all that bit in your NR about "...the Government will need to take positive and definitive steps towards establishing a stable business environment if it wishes to attract foreign investment..." makes you sound like a bunch of arrogant assholes. You lost in a planetary-level court of law, costs are awarded against you and you still try to make out it's the other guy's fault? Fucktards.

The Friday OT: Derek and Clive; At the races

Peter Cook and Dudley Moore in the most childish, puerile, gratuitous, pathetic and crass thing possible. I love and adore it. Youtube here.




This completes IKN's Derek and Clive tribute week. Brought to you by KNT and dedicated to regular readers AB and MG.

GLD gold inventories are rising again

Here's the chart, Brexit to date. Data here and we're at 961.47 metric tonnes as per yesterday's close.


Please note the cut-down y-axis.

UPDATED: More on the death of Luís Araújo, environment secretary in Altamira Brazil

This morning's news updates out of Brazil say that police have confirmed the killing was an assassination, at least 10 shots were fired (14 entry/exit wounds have been found on the body) and that due to the method of the killing and as nothing was stolen, it was almost certainly a contract killing, for reasons as yet unknown.

UPDATE: This report from local newspaper Diario de Pernambuco states that Araújo had told his colleagues that he'd been getting death threats from illegal loggers, as he headed up a program to stop deforestation in the region.

Filipino mining political risk news

This a paste-out from a Bloomie terminal report earlier today. I'll leave you to consider the specific ramifications, but I know what I think. TY to reader A. Person, kind of you.

 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx


(BFW) Some Philippine Miners Who Failed Audit Won’t Be Suspended:Lopez

+------------------------------------------------------------------------------+

BFW 10/14 03:20 MORE: Philippines Suspends Miner Austral-Asia Environment Permit
BFW 10/14 02:58 Philippines Suspends Century Project’s Environment Permit
BN 10/14 03:37 *PHILIPPINES SAYS SOME OF 20 MINERS THAT FAILED AUDIT WILL PASS
BN 10/14 03:32 *PHILIPPINES TO DO INTENSE AUDIT OF ENVIRONMENT, MINE PERMITS
BN 10/14 03:01 *PHILIPPINES SUSPENDS MINER AUSTRAL-ASIA ENVIRONMENT PERMIT
BN 10/14 02:40 *PHILIPPINES TO SUSPEND ENVIRONMENT PERMIT OF CENTURY PROJECT


+------------------------------------------------------------------------------+

Some Philippine Miners Who Failed Audit Won’t Be Suspended:Lopez
2016-10-14 03:48:16.408 GMT


By Norman P. Aquino

    (Bloomberg) -- Some of the 20 miners recommended to halt operations because they failed a govt audit won’t be suspended as they only need “a little fixing,” Environment Secretary Gina Lopez says at briefing in Manila.

  * Lopez says she’s meeting officials from each miner telling them to fix problems
  * Environment Department stopped 20 quarrying operations in Mt. Banahaw, impounded backhoes and cargo trucks, arrested at least 30 personnel: Undersecretary Art Valdez


x

10/13/16

Brazil: The Altamira region's Environment Secretary is murdered

Chilling news out of Brazil today. The Secretary of the Environment of the Altamira region of the country, Luiz Araújo, was last night assassinated. According to military police, the government official was just outside his home in the Buruti locality when two men approached him on a motorcycle and shot him seven times in the head.

Altamira is a particularly controversial region when it comes to environmental matters, as it's home to the recently constructed Belo Monte dam and also the highly controversial 'Volta Grande' gold project owned by Canadian junior, Belo Sun (BSX.to).

UPDATE: More here, including a correction to the spelling of his name. Luís Alberto Araújo was 54 years old. And here Brazil's national newspaper O Globo has now picked up on the story, noting that Araújo was shot dead in his car with his wife and children present. The assassins apparently made off without trying to steal anything.

B2Gold (BTG) (BTO.to) 3q16 production

NR here, chart below:



A strong quarter from BTO, with Otjikoto showing what's it's capable of now and Libertad on the way back. Here's how the market reacted:


Quite right too and you'll note it was already rallying well this morning on positive jungledrums.

Chart of the day is...

...copper hourlies, which fell off a small cliff this morning...

 
...because of this.
Oct 13 China's imports of copper fell by more than a quarter in September to the lowest in more than a year, customs data showed on Thursday, the latest sign of waning appetite in the world's top commodities consumer as local supplies remain plentiful.
Copper imports dropped by 26 percent from a year ago and 2.9 percent from month ago to 340,000 tonnes in September, data from the General Administration of Customs showed. That's the lowest since at least August 2015.
Ore and concentrates shipments totaled 1.39 million tonnes, down 4.1 percent from August and Continues here.

PEAs give me the horn

Your Derek and Clive update, as K92 Mining (KNT) gives us a PEA on a secondary deposit at its asset that's...well, if it's too good to be true then usually...hey I dunno, have a look yourself:

PEA estimates;

  • positive cash flow of US$558 million over 9 years, an Internal Rate of Return (IRR) of 113% and achieve an NPV5 of US$415 million
  • 400,000 tonnes per annum (108,000 Au Eq per annum) over a 9 year period with cash costs of US$547/oz AuEq and all in sustaining costs (AISC) of US$619/oz AuEq
  • Treatment of 3.2 Million tonnes @ 7.1 g/t Au, 25 g/t Ag & 1.7% Cu (9.3 g/t Au Eq*) over the 9 years
  • Initial Capital Cost of US$13.84 Million
K92 Mining Inc. (the “Company” or “K92”, TSXV: KNT, OTC QB: KNTNF) is pleased to announce the results of a Preliminary Economic Assessment (“PEA”) on its Kora gold deposit (“Kora”), which together with its Irumafimpa gold deposit (“Irumafimpa”) comprise the Kainantu Gold Project (the “Kainantu Project”).

Continues here. One hundred and thirteen percent IRR, what could possibly go wrong?

Fortuna Silver (FVI.to) (FSM) 3q16 production

NR here, charts below.




The San José throughput upgrade kicks in, as it had to do all things considered. Production is up so much that for once, even FVI might be able to return a meaningful profit this quarter.

Bob Dylan

The Nobel committee jumps the shark.

UPDATE:  I've always been a fan of Trainspotting author Irvine Welsh (fwiw I read the book before it got made into a film) and my fandom just went up another notch:



Exactly.

Richmont Mines (RIC) 3q16 production and sales

NR here, chart below:

 
Scheduled mill downtime or not, that's a miss

10/12/16

Wesdome Gold (WDO.to) 3q16 production

NR here, chart here:


That's 15,667oz Au produced (and 15,825oz  sold). A decent quarter and proof its actual ops can run at 60k/annum. Grades was up at both Eagle River U/G and Mishi open pit, that's what made the difference.

Get well soon, Lawrie Williams

Sending best healing vibes and so forth from this side of the pond to that. I'm saddened to hear about your sudden health issue and sincerely hope you recover quickly.

Traded volumes in the mining stocks are dogshyte today

Just thought I'd say out loud what we're all thinking.

The dollar pings 98...


...which could be an election thing or a Fed thing, but it's far more likely to be the way the UK government has decided to commit Seppuku by going the Hard Brexit route. Thus the GBP falls off a cliff, thus the index basket measuring the USD weakens, thus the dollar does what you see above.

Anyone heard from the "dollar about to collapse" blowhards recently? They were very loud earlier in the year, seem to have lost their voices...


10/11/16

IKN's one and only opinion on K92 Mining (KNT)

Your author has been asked on a handful of occasions for a view or opinion on K92 Mining (KNT.v), the new vehicle that bought the Kainantu mine in Papua New Guinea from Barrick and has just got it started and producing. Another mail came in today, therefore this humble corner of cyberspace would like to take the opportunity of publishing a post in order to state its one and only opinion on KNT:
Every time I see its ticker symbol I think of Derek and Clive.
(and be warned, that link is definitely not safe for work)

Thank you for your attention.

PS: link fixed

Dear Porter Stansberry

Why has the ridiculous, waferthin lawsuit with zero chance of success you filed against IKN been stalled for weeks on end? You running out of money for the lawyers, Porter? Or are you just chicken and don't want to be embarrassed by the inevitable outcome when the judges laugh you out of court, you bullying piece of shit?

Love, Otto

UPDATE: Hi Porter!


The B2Gold (BTG) (BTO.to) rumour...

...now picked up by this desk from two wholly separate souces (therefore clearing the barrier for publication) is that the company is trying to sell its Nicaragua assets, i.e. Libertad, Limón and the exploration properties. You don't have to buy them all either, offers for any individual asset are acceptable. But so far no takers as The Clive's asking prices are too high. We already know B2 is keen on selling its 49% of Gramalote in Colombia too, that's another story.

Just so you know.

A gold price chart

Bottom's in, ladies and gentlemen. Get used to the idea.


Endeavour Silver (EDR.to) (EXK) 3q16 production

We haven't run these charts on the blog for quite a time, but they're making a comeback today because after digesting today's NR they're the best way of visually demonstrating just how pisspoor this company has become:

Silver production:


Gold production:

And of course EDR didn't hi-grade its main Guanacevi mine in 2014 and 2015 to try and paper over the cracks, only to pay with crapped out grades down the line...oh no no no, they didn't do that, oh no.

UPDATE: Reader JN writes in (thank you ma'am):

"...a couple more quarters and Endeavour will be a gold miner with silver credits."

10/10/16

Global Mining Observer is...

...way more interesting than IKN today, the latest edition is just out, here's the link to the lead story. Go read.

Chart of the day is...

...copper, weeklies:


Not much change from the last time we spoke, copper continues to patiently build inside the new trading range, the higher lows are far more important than trying to break out to the upside at the moment. Quietly constructive.

The IKN Weekly, out now




IKN387 has just been sent to subscribers. Ranting from my soapbox again. Goodnight all.

10/9/16

Dear Subscribers

The IKN Weekly IKN387 is going to be late, I'm going to watch the debate (that's starting in five minutes approx). But it will be with you tonight, I don't have that much to finish, then the tidying up takes an hour or so. Hey, Canada's closed for business tomorrow anyway. 

See you later.

Neil Young in concert last night, October 8th 2016

The choice: Rockin The Free World. And they nail it dead.



Youtube here and the poster has plenty more from 'Desert Trip' festival in Indio California, including several from the Paul McCartney set last night and the Stones from Friday. Full list here, go have fun.

International Tower Hill (ITH.to): It's been a month...

...since IKN's succinct yet wholly accurate analysis of the ITH updated pre-feas for its Livengood project, published that very day. Let's see how things are getting on:



Only 25% down so far. Plenty more downside to go.