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2/22/19

The Friday OT: Fatboy Slim; Rockafeller Skank

Memories of hearing this the first time, thinking "WTF WAS THAT?" but knowing you're hooked at the same time (one of those you need to hear again, and immediately). These days Norman Cook and this song are part of the world sound background, but don't forget the innovation in this track at the time. Also, for some reason or another, I've had a Fatboy Slim 'best of' compilation on my Spotify all week, which is why you get a slice today.



The vid is great, too. Youtube here.

Dear Superior Gold (SGI.v): Buy a freakin' dictionary

The last time we heard from Superior Gold (SGI.v) was on February 5th when they announced their 4q18 production numbers. During that NR they also wrote this:
"The Company will announce its full year production and cost guidance by mid-February"
Mid-February. As in "Mid". As in "middle". As in twenty-eight divided by two equals fourteen. You don't make the exact mid-point well fine, but today is the 22nd day of 28, we still haven't heard anything from you and unless you're about to spring a nasty post-Friday-close NR on us, we're now staring Monday February 25th in the face. If you hadn't dicked us around before we'd be more forgiving, but the constant mushroom politics we get from you guys is freakin' annoying.

Buy a dictionary. Learn what words mean. Use them properly. Treat your shareholders with more respect. Assholes.

Further to yesterday's post on Lucara (LUC.to), IKN would like to apologize...




You may remember Marin Katusa's pump of LUC.to last year, too. We're coming up to the anniversary of that one, so don't just take my word for it. Why not ask those who bought in at $2.50 and above on his call what they think of the stock? year

Barrick (GOLD) confirms speculation on a Newmont (NEM) bid

NR just hit, here ya go:

Barrick Comments on Media Speculation


TORONTO, Feb. 22, 2019 (GLOBE NEWSWIRE) -- Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today confirmed that the Company has reviewed the opportunity to merge with Newmont Mining Corporation in an all-share nil premium transaction. No decision has been taken at this time.
Enquiries:Investor & media relationsKathy du Plessis
Email: barrick@dpapr.com
Website: www.barrick.com

PS: Want my dos centavitos? If I were Mark Bristow, I'd be doing what I could to point out the weaknesses in my main rival for the top spot while bolstering my own company. In this case, by telling people ABX is studying a zero premium offer for NEM he's saying that NEM's buyout of Goldcorpse has brought weakness rather than strength to NEM. Just by floating this idea (and just after GG impaired its book bigtime in order to fit into the NEM offer price), he's telling the world "hey look at how crap the NEM/GG deal is! Haaa haaaa, you people controlling the big insto money should flip over to Barrick now, before it's too late!".

In other words, this whole story is a smokescreen, part of the mindgames played at the top table. Bristow has just insulted Goldberg's business acumen. Grab some popcorn, it's BMO Miami next week.

Trey Reik's 2019 Top Ten list

You can find your copy right here, thanks to Gary at Biiwii. I got mine in the mail yesterday and as always, when a Trey Reik note hits my inbox read it immediately. This humble corner of cyberspace recommends you do the same, Trey is one of the smartest and most insightful commentators on gold out there and this extensive, annual-type report is a tour de force.

More utter crap from Garibaldi (GGI.v)

Right here. A squillion words on a 4.8m cut (yes guys, we know there's a small pod of hi-S in there, in fact we knew that 20 years ago). Count up the unnecessary spin hype adjectives yourself (I got bored) and wonder just why they still haven't released the other 13 holes in the campaign despite the majority of them being cut back in September (is five months a record?). 

Anyone who still believes this nonsense is either too thick to save, or making so much money on their Kirkland position that they don't care any more. That's you Eric, but this GGI clownshow is still making you look a little bit stupid.

2/21/19

Different views on Lucara Diamond Corp (LUC.to)

What Marin Katusa wants you to see:
HEY WOW LOOK AT THIS SHINY THINGS AND THEY ARE EXPENSIVE AND CLARA IS THE FUTURE AND IMPOSSIBLE TO COPY AND ISN'T IT WONDERFUL!
What IKN wants you to see:

That and the 4q18 net loss. And the inevitable upcoming capital raise (because it's now clear the Karowe capex isn't coming from op profits). And the obvious impairment these hoodwinking book-keepers are building into the carry (how can a fixed asset that loses money be valued higher every quarter?). We could continue, but the jokers who want you into this slowly sinking ship are betting on you never bothering to look at its financials. Anyway, enjoy that 2.5c dividend.

A new Top Pick recommendation

In IKN509, this weekend.

A hypothetical about Venezuela and the recent gold price action

Supposing a country with a very large but informal gold mining business and an urgent need for US Dollars suddenly stopped being able to supply large quantities of gold to a dollar rich country with a very strong demand for gold (particularly jewelry) from its citizens and people who go to visit the place.

Let's say, just for argument's sake, Venezuela and United Arab Emirates.

The sudden failure to sell gold wouldn't be the fault of the producer country either. More the way in which third parties (for right or wrong reasons) decide to play hardball geopolitics and close down the supply route of the informal gold (or illegal if you prefer, the vocab doesn't bother me) via its transit country.  Let's say, for example, The USA having a quiet word in the ear of Turkey.

That Venezuela can't shift its gold is neither here nor there to me (and frankly, if it hastens the demise of Maduro then so much the better) but that doesn't suddenly mean the UAE demand dissipates. Quite the contrary, all of a sudden it finds itself needing to fill a supply gap and in a hurry, too.

So let's say that the UAE rushes to its friends in the market and asks them to cover its unexpected gold supply shortfall with an order from the spot market. Then once the rush order is covered, things go back to normal. What would the result of that look like? Something like this, perhaps?


And all while the inventories of GLD remain unchanged on the gold move. And silver hardly budges an inch.

2/20/19

IAMGOLD (IAG) (IMG.to) and All-In Sustaining Costs magic

IAMGOLD (IMG.to) (IAG) reported its Q4 tonight and once again, we get to marvel about the way in which All-In Sustaining Costs (AISC) is used by the mining industry:

  • 4q18 average realized gold price: U$1,233/oz
  • 4q18 AISC per ounce sold:  U$1,123
  • Number of ounces sold: 220,000

So that means they make a U$24.2m* profit on the quarter, right?

Wrong. Because when real accounting rules are applied, IMG's gross profit ($17.1m) isn't even up at that level. So just forget about adjusted net earnings of NEGATIVE $16.1m or real bottom line net earnings NEGATIVE $34.8m. What's the point of having this supposed industry standard measurement when companies like this jokeshow of fakery just make shit up and massage their figures to Kingdom come? What's the point of even labelling a cost metric "All-In" when it's obviously nothing of the sort? Why do fools fall in love? And why is Steve Letwin still employed?


*220k X (1233-1123)

Chart of the day is...

...copper, weeklies:



Whisper it quietly.

Prize Mining (PRZ.v) sends mail

Mike McPhie of Prize Mining must have forgotten my mail address (he used to be keen on conversing with me) but no matter, the mail he sent out yesterday morning to dozens of anal ysts and newsletter writers found its way to IKN Nerve Centre quickly enough:



Certainly interesting to learn that, according to the company, it's all behind PRZ now. Maybe they'd like to tell the ASC that, what with those people still actively investigating the company. The fact remains that PRZ got caught with their pants down, accepting BridgeMark scam cash to run a bullshit pump and dump hype on the market. That the CEO in charge of the company at the time is still fronting it is all the reason you'll ever need for not trusting this band of thieves ever again.