start here

start here

The Daily IKN email digest, get all daily posts sent to you next day (& no ads)


Another Dilbert

via ritholtz, dilbert

Luna Gold (LGC.v) and the unwritten rule of Friday night news releases

Rule: When a company waits until after the bell Friday to release news, it's rarely good.

September 22nd Luna Gold (LGC.v) NR excerpt:

"...the Company is conducting a private placement offering of up to 38,461,539 units to investors in South America (the "South American Placement") through Celfin Capital S.A. SAB ("Celfin") as lead Agent of the South American Placement for gross proceeds of up to $20,000,000."

September 30th Luna Gold (LGC.v) NR excerpt (released 5pm EST, after the bell):

"Under the terms of the South American Placement, 23,749,338 Units were sold at a price of $0.52 for gross proceeds of approximately $12.35 million."
Nuff said


A Flash update...

...was sent to subscribers at just after 8pm EST tonight, Friday.

The market never sleeps.

The Friday OT: Calle 13; Latinoamérica (New Video)

This week the choice is a total no-brainer.

  • The best band in LatAm today
  • The best song on their new album
  • The brand new video, released this week, which is an absolute pearl.

If you want a decent translation of this magnificent song, Bina has already obliged right here. And watch the video, because even if you don't understand Spanish you'll learn more about LatAm in five minutes and forty-two seconds here than you will reading the Wall St Journal in ten years.

Scott Gardner: Europe's Debt Crisis and Its Effect on Gold

This humble corner of cyberspace recommends the Q&A that Scott Gardner of Verdmont Capital has done with The Gold Report because
1) Scott's a friend and I'm shamelessly promo'ing him to make him famous and all that.

2) Apart from being a pal, Scott is in fact a very smart market watcher and his opinions are well worth your thought and consideration.

Number two is the real reason, of course. As it happens, number one is a by-product of number two. Anyway, here's the link to his interview, go read it yourself. Good stuff, Scott.

Fox on the rocks

Hey subbers, how many of you remember this little chunk of IKN110, back on June 12th 2011?

For those of you who weren't around to read IKN110, that's part of a longer article that covered other themes but it's the essence of the argument. And here's the Copper Fox (CUU.v) price chart for 2011:

That's one wild round-trip for longs in CUU.v this year, no? As it happens, I'd pencilled in $1.20 as the downside target for CUU.v...which is more than the price today...but less than the price Ernesto Echavarria expected it to be....

DYODD, dude.

UPDATE: Bizarrely, while this post was being written, this arrived from reader 'SF' (very slightly edited to protect names):

Just a quick thanks for pointing out the excessive risk with CUU.  I sold it in the summer after you picked it as a short candidate.
Sometimes you make me money, other times you save me money, but both help the bottom line!

And then 5 minutes afterwards, SF followed up with this:
Ok, I swear I sent this email before I read your blog update today.
ESP is the only explanation!  Hmmm, you are going to have fish for dinner tonight.

It's either fools seldom differ or great minds think alike. You be the judge!

Spanish lesson del día: "Baja"

From website "spanishdict":

baja (feminine noun)

1. drop, fall (descenso)
  • redondear el precio a la baja -> to round the price down
  • el precio del cacao sigue a la baja -> the price of cocoa is continuing to fall
  • tendencia a la baja -> downward trend
  • jugar a la baja (finance) -> to bear the market

From website "bigcharts", the six month chart of Baja Mining (

Luckily, the Baja Mining ( head honcho John Greenslade can't be accused of selling 200,000 shares of back in July on that last spike up to the $1.20 level.Wait a minute!....he can in fact. Oh never mind, it's only money, eh?

So tell me again how Chinese copper demand is falling apart and how the country is going to stop buying the stuff?

Here's today's M&A news:

CHINA'S Minmetals Resources will buy Congo-focused copper miner Anvil Mining for $C1.33 billion ($1.31bn) in cash, a move that shows Chinese companies remain willing to invest in risky locations despite a recent fall in commodity prices. 
Minmetals, the Hong Kong-listed unit of state-owned China Minmetals Group, said in a statement shareholders owning 40.1 per cent of Anvil Mining's stock support the $C8-a-share offer. These include trading house Trafigura Beheer, which is Anvil's biggest investor.

Minmetals said the offer, which is pitched at a 39 per cent premium to Anvil's closing share price, has been recommended by Anvil's board and will open within three weeks.

"In our view, the valuation is compelling and unlikely to be trumped," said analysts at Foster Stockbroking.

Anvil last month launched a strategic review of the business, and said today it CONTINUES HERE

Peru's new mining law: A useful guide

Yesterday morning, the new mining law passed by the Humala government was published in Peru's official gazette, "El Peruano", and therefore became active law. To make things as easy as possible, those nice people over at Estudio Grau, one of the biggest and most reputable law firms in Peru (English language website right here), published an English language summary of the situation yesterday. And IKN being IKN got its grubby little hands on a copy. 

Here it is. Click on the pages to make them bigger if you require. Thanks due to regular reader and mailpal LR for the headsup on this.
click to enlarge either page

Chart of the day is...

...the gold/copper ratio over the last three years:

So we got the big bump back in 2008, then we got the little bump in mid 2010. And now we got a bump that's bigger than the '08 '10 (typo corrected, ty WW) version (cos it should be clear by now that what's going down in Europe is serious), but not as big as a wholesale snafu we experienced back in late '08. 

So far, at least.

So place your bets, ladies and gentlemen! Is the Eurozone clustafark as big as the US mortgage clustafark?


Special message for readers Roger Mac and KF

Dear Roger Mac & KF (yeah, you)

It's been two weeks since I got back to you and explained, in the nicest way possible, into which bodily orifice you could stick your demands. In the spirit of the same niceness (ahhh, remember that song KF?) I'm writing this little missive to ask you whether you're going to bother writing back soon. If you do then nothing further has to appear on the blog. If you don't, names get named and a whole series of fun and frolics can then be enjoyed. After all, you might think it's perfectly natural to just leave people in limbo on such matters, however those of us with good judgment and moral compasses that work don't and will make a point of taking crudballs to task. 

So, a simple deal: Reply with your decision and it goes no further. That's more than fair under the circumstances, so RSVP, dudes!

Lots of love, Otto

(ps: you have a week)

OT: The male fairytale

This was lovingly placed in your humble scribe's electronic mail inbox this fine morning. We share. Please enjoy.

 A Male Fairy Tale:
Once upon a time, a Prince asked a beautiful Princess, “Will you marry me?” The Princess said, “No!!!” 
 And the Prince lived happily ever after and rode motorcycles and banged skinny long-legged big-titted broads and hunted and fished and raced cars and went to naked bars and dated women half his age and drank whiskey, beer and Captain Morgan and never heard bitching and never paid child support or alimony and banged cheerleaders and kept his house and guns and ate spam and potato chips and beans and blew enormous farts and never got cheated on while he was at work and all his friends and family thought he was frikin cool as hell and he had tons of money in the bank and left the toilet seat up. The end.

Chart of the day is...

... one that uses, GLD and SLV as proxies to examine the difference in trading between uranium, gold and silver these last ten days:

U holding up.

A Flash update...

...has just been sent to subscribers, a little under an hour into the market day this Thursday.


Photo mystery guess win money thingy

I'll give $25 to the charity of choice of the first dudette or dude to write in and tell me he name of this mine, snapped by your humble scribe yesterday morning.

Usual address.

We have a winner. Reader BF, name your charity.


Bookstaber on learning from the industrial revolution

We interrupt this temporarily quietened blog to bring you an top link. Click right here and read "What can we learn from the policies that spurred the Industrial Revolution?" at Rick Bookstaber's place. If you read just one thing on the internet this week, make it this article. Most excellent brainfood.

Chart of the day is...

Now I really gotta go...boring things to do, boringly.

On the road

Your author is pretending to work while travelling around a bit for the next four days. Posting will be light this week. Here's Jack.

"Why think about that when all the golden land's ahead of you and all kinds of unforeseen events wait lurking to surprise you and make you glad you're alive to see?"


The IKN Weekly, out now

the clue is in the question

IKN125 has just been sent to subscribers.