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11/12/16

Minera IRL: A news release from the company is on the way

Good news (probably). This humble corner of cyberspace has learned that the Board of Directors of Minera IRL have decided to stop treating their shareholders (i.e. the people who own the company) with complete contempt. We hear that at this moment and all thanks to the light shone upon their creeping in the shadows attitude, the directors are preparing a news release that will be published early next week in order to state their position more clearly and try to allay the 100% justified suspicions of we shareholders as to their true motives.

Up to this point, all we know is that this band of arrogant fools who don't own a single share of IRL between them want to award themselves the right to emit over 115m shares to whoever they want and at whatever price they want without getting any extra permissions from shareholders. We also know that they intend to permanently withdraw the company from the London Stock Exchange (AIM market) and due to the total lack of mention of plans for the Peru listing, the implication that they're about to leave their Peruvian shareholders in the lurch is also very clear.

I repeat: The board of directors of Minera IRL lost any rights to "innocent until proven guilty" after the shitshow they heaped upon their shareholders all through 2015. It's now their job to convince us they're worthy of our trust, it doesn't work the other way around with these jokers. I hope the NR they publish next week is a good one.

11/11/16

The Friday OT: Leonard Cohen; Hallelujah

No choice.



Nothing else to say, so I'll say nothing. Youtube here.

Minera IRL: What this sneaky board is planning, what you can do to stop them

"If it looks like a duck, and quacks like a duck, 
we have at least to consider the possibility 
that we have a small aquatic bird of 
the family anatidae on our hands."
Douglas Adams

Minera IRL is a company with a board of directors that has no right at all to the presumption of innocence. That's clear after the crap we shareholders had to put up with in 2015 from Team Hodges, but now the new board are trying to play us all for fools again. I for one am not going to stand idle and watch somebody else screw me over and luckily, I can also speak for the group of Peru shareholders I met with yesterday who aren't going to stand for this corporate rape, either.

Without any sort of announcement and leaving less than a month, the board of Minera IRL called the AGM for November 30th via the Management Information Circular filed to SEDAR a few days ago. They want to keep it quiet and low key, they don't want shareholders to hear about the meeting of take action and when you read the agenda of the AGM, you get to see why.

It's a long document but here are two of the key pieces. This bit tells you what they plan to do with listings:
"...with new Articles of Association (the “New Articles”) in substantially the form attached to this Information Circular as Schedule 1. The primary reason for replacing the Existing Articles with the New Articles is to provide the Company with a modern set of Articles of Association tailored to the Company’s primary trading market in Canada. The Existing Articles were tailored to conform to the requirements of two trading markets - the AIM market of the London Stock Exchange and the Canadian Toronto Stock Exchange (or TSX) - but the Company is no longer listed on the AIM market and has no intention of seeking to renew that listing. Some of the provisions included in the Existing Articles were adopted in order to conform to standards that are customary in the AIM market but not in the Canadian capital markets; these provisions are, on the whole, more restrictive than customary Canadian corporate and capital market provisions. As the Company is at the date of this Information Circular actively pursuing a listing on a Canadian stock exchange, management believes it to be in the Company’s best interest to adopt Articles of Association that will enable it to carry on its business and access the Canadian capital markets without the more restrictive AIM derived provisions imposed in the Existing Articles.
The main differences between the Existing Articles and the New Articles are that the New Articles (i) do not require shareholder approval in advance of any allotment of securities, and (ii) do not impose pre-emptive rights on securities to be issued."

Want that in English?

1) This board is abandoning all UK based shareholders. 
2) This board wants to give itself the right to do whatever it wants with the company, no oversight or control, starting with the freebie giveaway of 115m shares.

But that's not all. In no place is there mention of the re-listing of shares in Peru, the fact that has angered Peruvian shareholders so greatly. And those shareholders told me yesterday that they have heard from inside the Lima Stock Exchange (BVL) that a few weeks ago the Minera IRL board stopped all the paperwork and necessary actions to re-list there. It's plain that they are leaving Peru shareholders for dead, too. All this band of miscreants wants to do is list IRL on the CSE in Canada (not even the TSX or TSXV).

And here's a second short snippet from the MIC with more on that share sale:

"...directors be authorized in accordance with Article 5.1 and 6.4 of the Articles of Association of the Company to allot up to a maximum of 115,567,514 ordinary shares, being 50% of the current issued share capital of the Company, free of pre-emptive rights. This authority is being sought to give the Company flexibility to make further issues of ordinary shares in order to raise capital for the development of the Company’s portfolio of properties, the Ollachea project in particular, and for general corporate purposes. This authority will expire on the date of the next annual general meeting. As at the date of this Information Circular, the Company held no treasury shares."

What's interesting here is that they don't tell us what they want to do with the shares, apart from the vaguest of terms such as "raise capital" and "general corporate purposes". After being fooled around by the previous boards in 2015, we as shareholders need more than this. To repeat, these people lost "innocent until proven guilty" a long time ago, they can either be transparent and up front with us, or they can be considered guilty of trying to screw us all. The non-disclosure and total lack of detail in this MIC means they're trying to screw us, be in no doubt. And if you let them, they'll probably do that the very day after the AGM.

And these people have no skin in the game at all. None of the current board of directors owns a single share of IRL, but they want to give themselves the power to allocate over 115m shares to whoever they want, at any price they want, with no further control mechanisms allowed by the real owners of the company, you and I. That's crazy.

I therefore propose two things:

1) You contact the board of directors and tell them what you think of their plans, demand far more transparency from them, insist they do their job and maintain their fiduciary duty towards shareholders.

2) If not, vote them out on November 30th.

And to that end, here are the e-mail addresses of the Minera IRL board of directors. Feel free to use them.

Derrick Weyrauch (the architect of the plan to decimate shareholder value): 

derrick.weyrauch@outlook.com

Robert Schafer (the main partner in crime)

schafer_rw@comcast.com

Julian Bavin (the third willing member of this corporate asset rape)

julianbavin66@gmail.com

Frank O'Kelly (the person allowing this rape to happen on his watch)

fokelly@icloud.com

Gerardo Perez (Peru COFIDE link being left in the dark by the others)

gerardoperezdelgado@gmail.com

We need to vote this board out and get one in that represents our interests. If not, it's clear these people currently in charge are going to sell us all down the river. So get your proxy form from Computershare or SEDAR and fill it in the following way, fellow shareholder:


Chart of the day is...

...copper again. No real choice:



The wild move continues, so at what point is the world going to say...


Lest we forget


Remember.

11/10/16

Leonard Cohen

Yes, but not this dark.

Minera IRL: It's deja vu all over again

After an interesting afternoon meeting with Peruvian shareholders of Minera IRL (who control many millions of shares) it has become crystal clear to your author that the current directors of Minera IRL, led by arriviste Derrick Weyrauch, is trying to steal the company and its assets away from the shareholders in much the very same way that the scumbag Team Hodges attempted to do last year. 

The method they're using is to try and push through some draconian changes to the company in the hastily convened AGM set for November 30th, which is set to do the following:

  • Remove the company permanently from the London Stock Exchange.
  • Remove the company permanently from the Lima Stock Exchange (contrary to their current corporate position).
  • Give the board of directors, a group of people with virtually zero shares in the company, the right to allocate up to 115m shares to whoever they want and at any price they want without getting any further permission from their shareholders.
  • Sell a massive part of the company's assets to their preferred friends at a near-criminal discount the true value of the company, all to the detriment of current shareholders.

The group of Peruvian shareholders with whom I spoke today are up in arms about the way in which the directors of IRL, led by Weyrauch and the George Bee asset strippers and in cahoots with Rio Tinto, are trying to steal the company all over again. On hearing their case and reading through the 2016 Management Information Circular carefully this evening after meeting with the group of concerned shareholders, I am forced to agree. The Peru shareholders have decided to vote en masse against the current board on November 30th and in order to stop this legalized asset rape, they need everyone in The UK and Canada to know what's going on.

Expect more on the subject.

TIMMEH! Gold (TMM.to) (TGD), the epitome of the bullshit precious metals producer

The collective joke companies like Timmeh! Gold (TMM.to) (TGD), Great Panther Silver (GPR.to) (GPL) and any other producing miner that claims to be profitable but has selling shares to a gullible world as a central part of its business model.

Be clear: IF YOU ARE A PRODUCER OF PRECIOUS METALS AND CANNOT PRODUCE THEM AT A PROFIT, YOU SHOULD NOT BE ALLOWED TO CALL YOURSELF A PRODUCER. Also be clear that if you're reading this post (on your phone) while in a Canuck boiler room trying to flog this piece of crap paper to your unsuspecting list of gullible clients right now, you should hang your head in shame. You are not the cure, you're the problem.

Here's TIMMEH! today:

Timmins Gold Corp. ("Timmins Gold") (TSX:TMM)(NYSE MKT:TGD) is pleased to announce that it has entered into an agreement with a syndicate of underwriters, led by National Bank Financial Inc. and RBC Capital Markets (the "Underwriters") pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 36,400,000 units of the Company (the "Units") at a price of C$0.55 per Unit for gross proceeds to the Company of approximately C$20 million (the "Offering").
Each Unit will consist of one common share of Timmins Gold (each, a "Common Share") and one half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder to acquire one common share of Timmins Gold at a price of C$0.70 at any time prior to the date which is 18 months following completion of the Offering. continues here

I feel like I'm taking crazy pills. And here's the best-of reel:


Can't make this shit up, Panoro Minerals (PML.v) edition

Talk about geologists in love with projects...


Here's a screenshot from this report in the economy section of Peru's newspaper of record yesterday:


Yes, that is a title quoting the VP Exploration of Panoro (PML.v) about its Cotabambas project and yes ma'am yes sir, it does indeed translate as "Cotabambas project has the same potential as Las Bambas".


Apart from a couple of little rounding errors, of course. Such as the way Las Bambas runs a copper grade of 0.73% in reserves (and 0.61% in resources) and has enough in reserves to run at 140,000tpd for 20 years. While Cotabambas has no reserves at all and its inferred resource grades an average of 0.33% Cu (what's more most of that is 0.29% hypogene sulphide) and the company only gets the economics to marginal by using a $3.00/lb copper price assumption. It's a bit like saying that 12 year old kid you saw playing footy in the park has the same potential as Lionel Messi. Y'know, both human beings, both got two legs, neither of them blind, both play football, neither fall over when running in a straight line...
 
Oh, and then there's another thing about the Cotabambas project and they'd have to move a freakin' provincial capital town in order to build the pit and surrounding infrastructure, so that's slightly different from the working mine too. And the way Las Bambas isn't owned by a bullshit two-faced pumphouse junior. So yeah, apart from all that it's just like Las Bambas.


Andy Home on the copper price move

Good piece, right here:


Keith Neumeyer still doesn't get it

If all you have is a hammer...

I used to think Keith Neumeyer is just too dumb about money to be a CEO. Then I met a lot more mining CEOs and it turns out he's just box standard average dumb, but it's still no excuse for not having a freakin' clue about how money works. With heads-up thanks to reader WT, Mister Neumeyer offered another pearl of his whizz dumb on Twitter yesterday as he watched gold re-trace:



Keith, it isn't a conspiracy. They're not out to get you, it really is just you and your paranoia. Keith, look at what TIPS did yesterday. Then look at the relationship between TIPS and gold. Then try to remove a bit of that inane and incessant bias confirmation from your brain. And then STFU.

Copper kapow



Today's metals commentary is brought to you by Swing Out Sister



That's the biggest single day move in copper since 2009. It took less than 24 hours for Darren Pylot to look freakin' stupid. Thus is the power of the markets.

11/9/16

HudBay (HBM) (HBM.to) Constancia protest latest

The protesters are still squatting inside the pit (photo from that link...nice weather for it at least).


Production is still 100% halted.

The government is threatening them with arrest if they don't leave and refuse to negotiate with them until they do.

The locals say that because HBM ignored them for three years since signing the deal which they say HBM subsequently ignored and forgot about, they're not leaving until they get a written deal from HBM and approved by the Peru government.

The atmosphere is tense. To say the least.


Capstone Mining (CS.to) and "Zero Cost" collars

This from Capstone Mining (CS.to) this afternoon:

VANCOUVER, Nov. 9, 2016 /PRNewswire/ - Capstone Mining Corp. ("Capstone") (CS.TO) today announced that it has entered into zero-cost collars for 43,000 tonnes of copper with settlements between January and December 2017 at a minimum of US$5,025 and a maximum of US$5,585 per tonne of copper. There was no cost to Capstone to put this protection in place. Continues here

It all sounds so win-win, doesn't it? After all, they told us "zero-cost" and "no cost" and "protection" and those are all wonderful yummy words and phrases in an expensive and high risk business like mining. So here's a simple statement of fact: If copper goes above U$2.54/lb between now and early next year those of you wondering why all the gross profits have suddenly disappeared from the CS.to 1q17 and 2q17 results will receive a sharp lesson in just how "zero cost" this all is. And the higher copper goes the nastier it'll get, as anyone old enough to remember what Whisler did to Phelps Dodge back in the day will know all too well.

Bottom line: Capstone just removed the blue sky from its stock and investors looking for a speculative copper vehicle will now avoid it and go somewhere else. Dress it up anyway you want, but this news is shareholder-unfriendly.

Precisely two words on the Sandstorm Gold (SAND) (SSL.to) 3q16 financial results


Good quarter.







(lots more on Sunday, subbers)

A Flash update...

...has just been sent to subscribers, just before midday local time on this hot and sunny Wednesday morning. Nothing to do with Trump.

Weird block sales action today

I'll name a few, you'll probably be able to spot others, but for no apparent newsflow reason we've seen large selling chunks and big percentage drops in a whole bunch of explorecos and not-very-liquid juniors. Mirasol, Lara, Goldgroup Mining, Nevada Sunrise are examples. Perhaps add Radius, Sirios, Barkerville to the list

It could be for any number of reasons, but one line of least resistance is perhaps one sector player who, in some way or form, bet big against a Trump win and now needs to cover the loss. These chunks trades sure do have a forced look about them.

UPDATE: Mystery solved in two of the cases, as Byron King of The Gold Speculator has called sell on Mirasol and Lara Which makes both of those buying opportunities, as he's a freakin' dumbass. (EDIT: And Goldgroup too, which proves how stupid this Byron guy is because anyone who claims to have met Keith Piggott and then recos his company is one beer short of a full sixpack).

PS: And the people who believe his words are dumbass squared. Your visual evidence:


The Primero (PPP) (P.to) 3q16 dog's breakfast

To inject a little normal mining business talk into this day: My stars, rare indeed that the news release from a badly run company is worse than its actual numbers. So many negatives in one NR, it's hard to keep track. Though it is interesting that P now agrees with the sentiment laid out by this humble corner of cyberspace back in February and has walked back its NAFTA arbitration against Mexico.

This NR is so bad (and seeing the stock 20% down on a day for gold like this one) that the contrarian in me is alerted. Or is it the Saint Jude Thaddeus?

Ironically, NAFTA may well disappear into a puff of smoke on January 20th.

11/8/16

The price of gold in Mexican Pesos this evening

At this point in time, midnight EST, it's up 16.55%. Just in case you were wondering.



My thanks to readers J and N.

HudBay (HBM) (HBM.to) isn't telling you everything

As usual.

A few minutes ago the company confirmed via NR that its Constancia mine's operations have been suspended, but they got all coy about how many and why, preferring to state that "The trespassers have yet to present specific demands".

Therefore allow IKN to inform Alan Hair, because the details and demands have been in the local press for the past couple of hours. There are around 5,000 angry locals involved in the protest and they have indeed entered the mine and stopped production, but the demands are already on the table, the main one being that HBM finally gets round to fulfilling its end of the community agreement signed by all parties in 2013. Locals state flat out that once HBM signed the piece of paper for the community projects they agreed to fund, the company disappeared and has ignored them ever since, without funding a penny of the agreed deals. Along with that main complaint, locals are also calling into question the environmental impact agreement awarded to Constancia because, they say, it makes no mention of the severe environmental damage done to local land in the area of direct influence (yup, it's that truck and dust thing again).

On a day like today...

...nobody cares about IKN. Which is exactly how things should be.

I'm going to find some fish to eat. Have a pleasant day.

Chart of the day is...

...copper, 90 minute spacings:






That's a rally all right.

And though many of them have crashed and burned (as usual, this particular random prediction made in December 2015 has come back from the dead and stands a fighting chance:


Even called it under $2 early year.

11/7/16

Are you ready for some CUM...

...3q16 results numbers? 

Yes indeed, that time of the quarter is with us again when the stickiest of copper producers, Copper Mountain (CUM.to) ejaculates its quarterly results onto SEDAR. We already knew that CUM shot its production higher in 3q16, but as usual when the costs are factored in...


...we have to swallow CUM 's thin margins and poor financials. So just $4.188m in gross CUM profits and once things like G&A and debt servicing are done, the net was yet another loss, this time $7.937m. 


For sure another sticky smelly CUM quarter (and by the way, count 'em up and that's over $116m in aggregate losses since 2014). And to add a late spurt, note that CUM has managed to defer $12m in power costs in 2q16 and 3q16, thanks to the new BC Hydro initiative. It would have been even stickier otherwise.

But if you think that's messy CUM numbers, just wait til you see the balance sheet:

Ewwww CUM, negative working cap of $11.8m and all that financial debt to pay back in the next 12 months? And you can't make a profit. That's a massive CUM shot... across the bows of the debt holders.

Peru Mining reality check (from IKN391)

A small sample of IKN391, out last night. Here we see how the new Peru government of Pedro Pablo Kuczynski is going down the old and tired road of over-promise, under-deliver.





Peru Mining reality check
It’s time to start being very careful about the overly bullish statements coming out of the new PPK government, the “investment community” many like the man at the top but his minions have started bloviating, which isn’t good for the longer run.

A prime example here came from Peru’s Ministry of Energy and Mining, trying hard to fight back against the perception that there’s a big gap in the project book in the country.  To that end its trumpeted its wares to the media last week and here’s (10) an example of the result, from Peru’s major media channel (and number one news radio station) RPP which gave us the headline, “Construction Will Begin On Eight Mining Projects Worth U$9.033Bn”. Here’s a paragraph from inside the article (translated):

“The ministry specified that the projects that will move into construction in the months to come are mainly for gold and copper, though there are also iron ore and phosphate projects on the list”.

That sounds good, right? Well yes, right up until the moment you see the list of the projects about to get going in the next few months:



On the bright side the Miski Mayo (Vale) expansion project and the Ollachea project are likely to happen in good order. Hochschild has its funding issues, but Crespo should happen eventually too. And though I have my doubts due to the fact it’s copper, I suppose you could even make the case for Milpo’s Pukaqaqa project because it’s fully permitted and relatively small (as copper mines go, at least). BUT, over half this imaginary basket of loveliness is the Anglo Quellaveco copper project in Moquegua and that’s not going to see the light of day in years, let alone “a few months”. Then there’s the marginally economic Pampa de Pongo iron ore project, that’s $1.5Bn of the total and with serious doubts over its development. Then add on the Pacasmayo Fospac phosphates project in Bayovar that is advanced, but even if it gets its build decision currently slated for 2q17 won’t become a working mine until 2022 according to that company’s own timeline.

The problem with the perception in Peru that there’s a big gap in the mining investment pipeline is precisely that it isn’t a perception, it’s a stone cold fact. If the MEM decides to go the happy marketing route and Everything Is Awesome this early into the PPK administration, it’s just asking for trouble further down the line.

Tinka Resources (TK.v): "These go to eleven"

Tinka (TK.v) adopts the Spinal Tap method of raising working capital.

Tinka announces the closing of the first tranche of its upsized brokered private placement for up to C$11 Million


It's one louder, isn't it? It's not ten.




vid here

Chart of the day is...

...ten days of gold bullion (GLD proxy) versus the US broad markets (SP 500 proxy):



Love it. It's a Rorschach.

(EDIT: Reader C writes in with "It was Colonel Mustard in the conservatory with the candlestick", which is worthy of applause)

Seriously though, all the freakin' dumbass goldbugs wringing their hands about a $20 drop in the price of gold this morning should stare awhile at that chart. If they can't learn something to their advantage from it or chip away at their idiotic bias in doing so, they should just give up trying to play the market. Today's market moves are of very little consequence, up or down, so the IKN advice is to either a) relax or b) take Chopper at his word.


11/6/16

The IKN Weekly, out now




IKN391 has just been sent to subscribers. All aboard!

One year ago...

...the Samarco tailing dam collapsed, the local town was destoyed, locals were swept away and killed, the Rio Doce in Brazil was poisoned all the way down to its estuary. And now nobody gives a toss. 

Moral: Build your crap where the brown people live.

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

...in reverse order:

Third Place: "If you needed proof that Brazil Resources (BRI.v) is a total bullshit scam from start to finish...". We're into that period when the scamsters stop targeting people who know a little about mining and go for not just the truly stupid about the sector, but the truly stupid period. This pumpjob reminds me of the that the Nigerian e-mail scammers will deliberately mis-spell words in the title lines of their mailers to filter out further and make sure the people who reply are the dumbest possible


Second Place: "Mailbag". Surprisingly, this one got hit heavily. That's fine and the reader who sent in that mail makes some good points too, but it never ceases to impress me how some simple posts get a lot of traffic while other, more complex efforts get totally ignored.

 
First Place: "Yamana Gold (AUY) (YRI.to) has a reported 20,000oz of gold stolen in Brazilian robbery". It turns out that it was 2k rather than 20k (according to Reuters at least, YRI still isn't saying) and the company is still using the ridiculous excuse of "oh it's under investigation so we haven't published on the death" (seriously guys, that's pathetic, is that all you could think up?). But this one got the most hits because it's what happens when this humble corner of cyberspace breaks a story.