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Is it the 75m shares added in the year?
Is it the $0.78m negative working cap?
Or is it this, the accountancy violin concerto?
During the quarter ended June 30, 2016, the operating income totaled $6,162,768 compared to a loss of $1,503,017 in 2015. The revenue, cost of sales and gross loss totaled $15,492,036, $15,636,711 and $144,675 respectively compared to $13,989,447, $14,424,851 and $435,404 in 2015. This increase of $7,665,785 is mainly explained by the reversal of an impairment charge on exploration and evaluation assets of $10,586,490 and the impairment of property, plant and equipment of $3,050,000.
However, content here on the blog has been light. That's probably because it gets tougher to be snarky about the sector when things are going well. Then again, it's going to be even thinner next week, what with the four day trip I'm on. Have a pleasant weekend.
From the Ruby Con NR just out:
"The Company plans to commence Phase 1 of a comprehensive exploration program following the successful completion of the Restructuring Transaction and after a period of transition. The goal of the exploration program is to gain a better understanding of the geology of the F2 Gold Deposit..."
That and the "we dilute existing shareholders to 5%" are the funniest bits.
Inspired by reader JM, this:
"Many weak-minded persons in cities hope to discover property under the surface of the earth and to make some profit from it. In the Maghrib there are many Berber "students" who are unable to make a living by natural ways and means. They approach well-to-do people with papers that have torn margins and contain either non-Arabic writing or what they claim to be the translation of a document written by the owner of buried treasures, giving the clue to the hiding place. In this way. they try to get sustenance by (persuading the well-to-do) to send them out to dig and hunt for treasure. Occasionally one of these treasure hunters displays strange information or some remarkable trick of magic with which he fools people into believing his other claims, although, in fact, he knows nothing of magic and its procedures...
"The things that have been said about (treasure hunting) have no scientific basis, nor are they based upon (factual) information. It should be realized that although treasures are found, this happens rarely and by chance, not by systematic search... Those who are deluded or afflicted by these things must take refuge in God from their inability to make a living and their laziness in this respect. They should not occupy themselves with absurdities and untrue stories."
1332 - 1406
And that's the best thing I'm going to do on the blog
Here's the Road & Track report and here's the video that goes with it.
Geology, too. Enjoy.
To stay outside such a traumatic and politically incorrect decision the government has passed the ball over to the population. If the referendum is positive for mining, the governor will say that "The majority decision must be respected"....if the decision is a negative Das Neves with his best "It wasn't me" face will tell Macri, "Sorry Mau, I wanted it but the people said no".
...kicked out of Minera IRL by its shareholders...fired from Peru O&G company Relapasa for helping to run it into the ground...kicked out of a local pension fund for recommending Relapasa as a good investment...and even being kicked off the board of a company as doggy as Lupaka Gold (LPK.v)
PS: Learn all about Carol Beer here.
NR here, chart here:
This humble corner of cyberspace's comment after seeing this spike down...
...was, "Bottom's in, ladies and gentlemen. Get used to the idea." And yes, I know you find me less annoying when I'm wrong.
Any further questions?
It's worst quarter of production and sales since 1q13:
Because it rained, poor little snowflakes. NR here.
The 50m share placement priced at 20c (with no warrant) is full. It took four business days to fill the book. Not shabby.
Part of yesterday's IKN Weekly IKN388. This isn't just a problem for Las Bambas, the whole of the copper mining industry needs to pay attention to this development.
Las Bambas: Trucks are the problem“Relax. Nothing is under control.“Adi Da SamrayAs noted on the blog late Friday, one man died during clashes between with police in Peru when locals blocked roads to protest about trucks coming out of the Las Bambas copper mine in the highland Apurimac region. We now have more details, as the protests happened around 50km from the mine, the clashes were very violent and along with the dead person, reports are of scores of locals and 20 police officers injured.So what’s the problem? The answer is very poor community planning by MMG, owners of Las Bambas, as well as previous owners Xstrata. Once upon a time when Las Bambas was owned by Xstrata (later taken over by Glencore) the plan was to build a 215km concentrates pipeline to connect the mine to the Xstrata-owned Tintaya mine, a little closer to the coast. From there it would join the existing transport infrastructure. But in the end the pipeline plan was deemed too expensive and dropped. Cut to today and Las Bambas now close to its full production rhythm, no pipeline built, the concentrate has to get to the coast somehow and we end up with this being published by Reuters (10):Congressman Richard Arce, who represents Apurimac, said the man was shot dead by police and that scores of people from towns nearby were also wounded.A photograph from the clash provided by Arce's office showed a man lying belly-up on blood-stained stones in a field.The protesters were upset because of the heavy dust and noise on the road where trucks transport the Chinese-owned mine's copper concentrates, Solano and Arce said."On a recent visit I saw 97 trucks carrying 30 tonnes of concentrates in 22 minutes. Passing by in front of people's homes," Arce said. "That would be outrageous to anyone."The facts back that up. According to the latest figures from Peru’s Ministry of Energy and Mining website (11), Las Bambas produced 34,983 metric tonnes of copper in the month of August 2016 alone, that’s right on its expected production clip. I don’t have the exact figure at hand but the conc there is known to be higher grades than the industry average and I’ve heard off-record that they’re running it at 30% copper, so if we run with that number we can estimate Las Bambas needs to ship out 116,667 metric tonnes of material to the coast of Peru per month. At 30 metric tonnes per truck that’s 3,889 truck trips per month, though I’d expect some trucks are overloaded somewhat (in typical Peru fashion) and carry an average of 40mt per trip, so that would be 2917 trips. So taking everything into account and splitting differences, let’s call it 3,400 trucks a month.As there are 720 hours in a (30 day) month, that’s an average 4.7 trucks per hour, 24 hours a day, seven days a week, 365 days a year rumbling past your (previously quiet and bucolic) farmhouse 50km from the mine site. And as that includes all night-time hours, the true figure is more likely to be ten trucks an hour in the daytime (one every six minutes) and as they’ll naturally bunch into a convoy formation on the way down, Congressman Richard Arce is right. And then they have to come back up the hill again. My stars the locals must be pissed with this sudden deterioration in their lifestyles, let alone things like danger and the dust (often on dirt track unpaved roads) and let’s note, this problem and last week’s violent flare-up that left one dead (social media unofficially reports three dead) and many dozens injured was 40km to 50km away from the mine and not in the zone of influence where locals get financial support. All of the annoyance, none of the compensation and if nothing is done it’s only going to get worse when the Haquira project owned by First Quantum and located just down the road from Las Bambas comes online in a few years’ time.I could go on about this, there are several directions in which this analysis could continue but the most obvious one is that cutting corners and doing things on the cheap in a country with poor internal transport infrastructure such as Peru is a recipe for community disaster. Peru is currently marketing itself as the place to go big pit mining and a better option than Chile (for example) because of its lower cost base. What we see above is the flipside of cheap, which can turn out to be far more expensive for all concerned, be it company, local residents or the country itself, than doing things the right way from the beginning. Also, be clear that this particular combination of infrastructure and community risk is going to be a growing concern across the whole LatAm region and can apply to Colombia, Ecuador (hello SolGold) and Andean Argentina, as well as this corner of Peru. However Peru is a decent test case, as its infrastructure varies greatly depending on where you are (e.g. Cajamarca is generally good, Apurimac is particularly bad). Interestingly and as a final thought (without labouring the point, as I really could spend pages on the subject) Chile holds a massive advantage here.
NR here, chart below:
Looks kind of boring, but in fact that's quite interesting.
"We have also entered into an agreement with the company and currently have been paid four hundred and fifty thousand dollars for a one year marketing program."
Bruce Bragagnolo, failed miner and now insider stock pumper. My stars, how they fall.
As for the company, anyone who can read a balance sheet will just burst out laughing at this "top pick for 2016 - 2017", as even after the recent $6.3m placement raising it's still working cap negative. Then there's the details about how they have no formal permit to operate, no EIA and the whole thing is being covered by the "in formalization" temporary ruling in Peru. When that runs out, IO.v closes down.
PS: By the way Scammy Danny, when I read this bit...
...I laughed until my sides hurt. You really are a clown of the highest order. The only people more stupid than you are the people who read you and believe this bullshit.
UPDATE: Reader 'C' writes in:
Do I get that right? That it is legal for a Canadian junior CEO to pay 450k of investor money to some shady marketing company that then starts feeding stupid people that want to believe empty phrases of vague information about a time frame long enough to claim "wait and see" and promises rainbows and lollipops which leads to rising share prices and lets the CEO then earn a fortune on his options?
And this marketing company then even criticizes Wall Street jerks about their greedy actions that doom the world. I wonder how those people can sleep at night...
To answer your question, C: Yes.