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2/19/19

Argentina's inflation is now threatening to spin out of control

Buried at the back of a big datadrop today is a report out of Argentina's stats office INDEC which shows annual producer price inflation running at 66.9%. Here's a chart of the PPI index (December 2015 marked at 100) from the INDEC data today which shows the steep move the PPI has put in over the last 12 months:

Source: INDEC


What's worse, the move in PPI in mid to late 2018 is now showing up in retail indices, with foodstuffs inflation reportedly 2.8% in the last 15 days. Yes, that does say half a month, 2.8% inflation. Think about that, then think about what's in store for Macri's "pro-business" government in the Presidential elections are at the end of the year.

Prophecy Dev Corp (PCY.to): The excitement wore off quickly for Gerald Panneton

An extract from the news release dated October 10th 2018 that annoucned the arrival of Gerald Panneton as President, CEO and Director of Prophecy Development Corp (PCY.to):
Mr. Panneton commented that: “I am very excited to join the Prophecy team to work on the Gibellini vanadium project in Nevada. The Gibellini project represents an excellent opportunity to be developed in the very near future, as it stands to be a low-cost producer due to its very low strip ratio, and a low-cost heap leach operation in the mining friendly state of Nevada. I envision the Gibellini open pit project to have an excellent chance of expanding its resource base, in much the same way that I lead Detour Gold in exploring, financing and developing the Detour Lake project to become Canada's top gold mine with an annual gold production in excess of 500,000 oz today.”

Cut to the NR of today and...
VANCOUVER, BC / ACCESSWIRE / February 19, 2019 / Prophecy Development Corp. ("Prophecy" or the "Company") (TSX: PCY, OTCQX: PRPCF, Frankfurt: 1P2N) today announced that Gerald Panneton has resigned as the President & Chief Executive Officer and as a director of the Company effective February 15, 2019. The Company thanks Gerald for his service and wishes him the best in his future endeavours.
John Lee, Chairman and former Chief Executive Officer of the Company, has been appointed to serve as Interim President & Chief Executive Officer.
About Prophecy

Just 129 days from excitement to exit door...love is a fickle thing. Nothing at all to do with this, though:


Be careful out there, Chris

Being six feet seven inches tall isn't always an advantage. Makes you an easier target.

Vancouver, British Columbia--(Newsfile Corp. - February 19, 2019) - MAX RESOURCE CORP.  (TSXV: MXR) (OTC: MXROF) (FSE: M1D1) ("MAX" or the "Company") is pleased to announce the appointment of Dr. Chris Grainger to the MAX Advisory Board. Dr. Grainger resides in Medellin Colombia and has over 20 years of experience as a geologist with extensive experience in South America, including Colombia, specializing in grassroots and brownfields exploration, resource definition and development within a number of different commodities and diverse geological environments. Continues here.


Gold still failing to catch a bid on Wall St

Gold's up and doing nicely this year, but you wouldn't have known it by the way the world's biggest gold bullion ETF (by a long way), GLD, has been acting:

NB: Please note the cut down Y-axis; not trying to fool you, just making the data easier to read

Today's inventory tonnage (793.03mt) is the lowest in 2019. There's obviously a price driver to the metal, but it isn't the Wall St. jocks and some sudden love for the safe haven qualities of the monetary metal. Not yet, anyway.

Yamana (AUY) (YRI.to) has a problem

Only three things required here:

1) Brazil has just banned all upstream tailings dams and requires all current upstream dams to be decommissioned by 2021.
2) Yamana's (AUY) (YRI.to) Jacobina mine has an upstream dam.
3) See title.

Paging Marcelo Kim

This is probably why you're not on the board of Detour (DGC.to), Marcelo.



Either that or because everyone thinks you're an arrogant dickhead.

2/18/19

A 118 year old man

If I'm not mistaken, this would make Marcelino Abad Tolentino of Huánuco in Peru the world's oldest officially recognized human. Up to this week, he only had a birth certificate but now that he has been given an official Peruvian identity card (in order to receive pension and free healthcare), his age becomes A Thing. Read about it here.

The IKN Weekly, out now



Even though it's a stock photo it's irresistible, have to use it. 
Duke cigarettes are indeed the best


IKN508 has just been sent to subscribers. Total dross, don't even bother.

2/16/19

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

...in reverse order, but before that let's note this is the first edition of our regular weekend round-up post for a few weeks. That's because posting on the blog has been light recently and that in turn is because I've been in lazy mode, not been posting as much, had other matters on my mind, doing other things with my time, less urge to fill this humble corner of cyberspace. Pick your fave, I don't care. Anyway, as the urge to rant came back last week you get a Top Three today, so...in reverse order...
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Third Place: "Cardinal Resources (CDV.to) and the cost of getting U$25m out of Sprott USA". FWIW I think this one, plus its follow-up post of the day after, are the best things on the blog this week. On the other hand, if I'd spent a bit of time doing the math behind them they could have been better, but that's why I care more about the Weekly than the blog. And that's just me.

Second Place: "Kinross (KGC) (K.to): Let us not forget that Canada's sell side whore brokerages are complicit in this mess". So I had a rant. Not the first time, won't be the last.
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First Place: "Here's one for all those currently crowing about their trade in New Gold (NGD)" and what's really funny about this post is that it came just hours before the company's plug ugly Q4 financials and 2019 guidance, plus the 25%+ dump that followed. It wouldn't have made #1 without NGD helping out...by showing its true colours. 

2/15/19

To understand just how stupid Byron King is...

...about Ecuador and his take on the political risk aspect of INV Metals (INV.to), even though he claims to be an expert on the place having studied it for years. This is the bit of his reco note yesterday that mentions the issues faced by INV in Ecuador:


There’s one potential issue that I want to address. Last week, a third-party group in Ecuador filed a legal motion to place an anti-mining proposition into the upcoming March elections. In essence, the idea is to allow localities to pass ordinances that restrict mining, as opposed to mining being controlled by the national mining laws.

As I understand it, the government of Ecuador is opposed to “local” meddling into national mining policy. The matter just went before an Ecuadorean court, which kicked the issue upward to the “constitutional” court.

The government of Ecuador and Ministry of Mines are strongly on the side of resource exploitation. In a recent press release, INV detailed the estimated “take” to various levels of government in Ecuador, based on the recently released FS:

  • Corporate income tax (25%) — $177 million
  • State profit sharing tax (12%) — $107 million
  • Employment taxes (35%) — $52 million
  • VAT (12%) and import duties (0–5%) — $110 million
  • Royalties (5%) — $108 million.

See here for more details.

According to management, there’s a high-level government delegation visiting the INV project this week. Apparently, the government wants to show support for mining, investment, jobs, development and taxes.

It’s difficult to predict how “legal” cases will play out in Ecuador… or anywhere, actually. Overall, a favorable outcome here — one that upholds national control over mining — would be good for Ecuador in general and INV in particular. An adverse decision that permits local meddling would be problematic but not a showstopper at this stage.

My fave phrase in all that is "As I understand it". After all, I can decide the earth is flat or the moon is made of cheese and then pontificate behind any paragraph starting that way.

Meanwhile, we human being who live in the real world know that just about everything that dumbass has written on the subject is total hogwash. It's honestly difficult to know where to start, there are so many things Byron simply does not understand. Let's start with the political system in Ecuador and no matter what the national executive might say do or want, they cannot simply walk in and overrule the local. Byron King's ignorance is writ large above, he simply does not understand what he is talking about. Or how the "third party group" petition isn't something cooked up just last week, but is the culmination of a process that's been going on for four years. Or how the vote is not under appeal or doubt, but has been officially sanctioned and happens on March 24th. And how the anti-mine contingent is going to win it. And how that vote will stop Loma Larga from ever happening.

If this blithering idiot wants to waste his own money, well fine. But his ridiculously poor DD is going to flush the money of hundreds of naive followers down the toilet, too.

The Friday OT: Kollectiv turmstrasse; Ordinary

So cool:



Got into these a couple of months ago, on a reco (thanks). Your turn now, youtube here.

Canadian Malartic impairments

One of my fine twitterpals, waytoointense, makes a good point on the Twittermachine:




When it comes to The Honesty & Integrity Challenge, Marrone never makes the podium. I mean, how does the 2019 AUY capex estimate of $442m stack up against the consensus forecast of $290m? What's that $30m tax payment?