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I say things on Twitter

6/30/18

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

...in reverse order:
Third Place: "The thing about Wesdome (WDO.to) and the gold price is...". This is not rocket science.

Second Place: "The John Tumazos mining conference in New Jersey is an unmitigated disaster". Photos of big-name mining companies presenting to empty conference halls.
 
First Place: "The real state of interest in the mining sector". Same as above. Well to be fair, I count about 30 people and 150 seats so it's not empty. Therefore Rule beats Tumazos.

6/29/18

The Friday OT: Soda Stereo; Picnic en el 4to B

I've been on a real Soda jag again recently (when not listening to the awesome new albums from Jon Hopkins or Nils Frahm) and for some reason, even though I'd heard it a hundred times previously this 2007 live version of one of their biggest hits has got me agog. Such a tight sound live, infectious rhythm, three superlative musicians at their peaks. The riff on Talkings Heads is fun. And of course, Gustavo's voice was heaven-sent.



It's a question of voltage, y'knowz. Youtube here.

EXTRA BALL: The same tour's version of Persiana Americana is too good no to add here. Beautiful.

The real meaning of "P.E.A."

In the mining world, the term PEA (English pron "pee ee ay", not as per the leguminous vegetable) is often used to describe a specific document related to a mine project at a certain stage in its development. But what does it really mean? This question came up yesterday morning, was bandied about in the inbox of your humble scribe by a few reprobates known to him, then made its way to Twitter (Spanish pron: "tuiteh") for further thoughts and polish. 

As a result, several options were discovered. Feel free to choose your own fave, esteemed reader.
  • Preliminary Economic Assessment 
  • Pre-Economic Assessment 
  • Praying (for) Economic Action 
  • Pecuniary Exaggerated Amusement 
  • Possible Economic Alternative 
  • Possibly Exciting Assholes 
  • Published (to) Entrap Amateurs 
  • Perfectly Executed Armwaving
  • Presumably Emotional Articulation
  • Probably Erroneous Assumptions 
  • Penis Enlargement Analogue
  • Post Excrement Analysis
  • Prematurely Ejaculated Analysis
  • Pumping Event Arriving
  • Placating Enthusiastic Anal-ysts
  • Probably Envelope Art

Mo' Regulus (REG.v) on Aldebaran

I've just spent an hour on the phone with John Black. This is a very interesting deal. Details Sunday, subbers.

PS: The NR is here.

UPDATE: Haywood on the Spin-out deal here.

Regulus (REG.v) makes its move

Spin-out. Nice.

6/28/18

Massive news from HIVE Blockchain Technologies Inc. (HIVE.v)

Just hours before HIVE files its annual financials and MD&A, the stock is rallying hard into the event:


Looking good, Frank!

So how's that IMF bailout of Argentina going, Otto?

Ohhhh, about as well as expected, thanks for asking.


And the Peso is dropping hard again today, back at 28 to the USD and challenging the all-time low put in just before Lagarde decided to "help".

PS: Or to put it another way, here's how your humble scribe summed up a short note on the country in IKN474 last weekend:

"...this is also another page  straight  out  of the  1990’s playbook  and  I  for  one  am  under  no illusions about what happens next. The  government is basically offering free dollars  to the market and they will eat them all up.  Once the supply is gone (the first part of this  bailout package  ends  mid  Q3) a  country  still  ravenous for dollars will belch and demand  MORE,  if  not  the  Peso  will  go  into  freefall again. And once they’ve taken as much as  they  can in  hard  dollars  out  of  the  country, the  plug will be pulled and  it’s  bankruptcy  again.  The banks in charge of this rotten and  inhumane treatment do this because they  can,  they do not care about Argentina nor its  people in the slightest, it’s just to get as much  money as possible out of the country before  they  hit  the  big  red  button  and  watch  it  collapse,  there  is  no  other  reason. Back  in  the 2000  to  2002  period  I  witnessed  the  country  get  drained  of  its  money and it was,  quite  literally,  the  financial  lesson  of  my  life. There is no doubt at all  in  my  mind  that the North and the powerful financial institutions  in  charge  of this  unholy  scam,  from the IMF all the way  down,  will  do  it  all  again.

The John Tumazos mining conference in New Jersey is an unmitigated disaster

Following on from the photo of Rick Rule presenting to a 3/4 empty hall in London yesterday, here are two shots of the scene at the Tumazos mining gig in New Jersey, June 27 and 28:

Here's the SRO show put on by Royal Gold (RGLD):


McEwen Mining (MUX), with Rob McEwen him very self:


Photos from Luis, right here. A good Twitter to follow.

Nevada Copper (NCU.to): The raising of the dead

The news today that Nevada Copper (NCU.to) is raising $80m by selling 133.3m shares at 60c apiece is mere confirmation that this stock is stone dead as a reasonable equity to play the copper market. Killed by Pala, Red Kite and Orion when they restructured the company last year (in order to get some of their own deep bagholder money out), this deal is for suckers only because no matter how high copper might fly in the months to come, this stock price isn't going anywhere.

Anuhow, here's the term sheet. Notice how many houses will be phoning their "special clients" in order to grab their slice of the $1.6m commish. TY UG.


Transaction Summary
  • Lead Mgrs: National 27.5%; BMO 22.5%; RBC/Scotiabank 10% each
  • Co-Mgrs: Numis 15%; TD 10%; Haywood 5%
  • Issuer: Nevada Copper Corp. (“Nevada Copper” or the “Company”).
  • Offering: Marketed treasury offering of 133,333,333 common shares (the “Common Shares”) (the “Offering”).
  • Offering Price: C$0.60 per Common Share.
  • Issue Amount: Approximately C$80 million.
  • Over-Allotment Option: The Company has granted the Underwriters an option, exercisable, in whole or in part, at any time until and including 30 days following the closing of the Offering, to purchase up to an additional 15.0% of the Offering at the Offering Price to cover over-allotments, if any.
  • Use of Proceeds: The net proceeds of the Offering will be used to complete construction of the underground mine, fund development of the open pit project, for exploration programs and for general corporate and working capital purposes.
  • Form of Offering: Marketed public offering by way of a prospectus supplement to the Company’s short form base shelf prospectus dated June 13, 2018 filed in all provinces of Canada, except Québec. U.S. sales to “qualified institutional buyers” by private placement pursuant to the exemption from registration provided by Rule 144A under the U.S. Securities Act.
  • Form of Underwriting: Underwritten deal pursuant to an underwriting agreement containing “disaster out”, “regulatory out”, “litigation out” and “material adverse change out” clauses running to Closing.
  • Eligibility: Eligible for RRSPs, RRIFs, RESPs, TFSAs, RDSPs and DPSPs.
  • Selling Concession: $0.012 per Common Share.
  • Comment: This is a marketed deal for common shares at $0.60.  The shares are being marketed at a discount of 14.3% vs the last reference price of C$0.70 (as of June 27 close). 




6/27/18

The thing about Wesdome (WDO.to) and the gold price is...

...it doesn't really matter what the US Dollar print for the price of gold is.



Wesdome Gold (WDO.to) runs its books in Canadian Dollars, its workforce is paid in Canadian Dollars, its costs are in Canadian Dollars, its sales are in Canadian Dollars and its share price is in Canadian Dollars. So gold is down in USD terms? Okay, so is the Loonie and look at what happens as a result above. Anyone who thinks WDO dropped under $3.00 today because "gold was down" is looking in the wrong place and falling for the same hypnosis as those who sold, the Kiena numbers are sparkling and even though it's up sharply from the recent $2 line, there's tonnes of upside left to run. Don't say you weren't warned.

The people who hired Nick Hodge of The Outsider Club...

...have apparently finished selling their Millrock Resources (MRO.v) position to the mugs on his list:


Or maybe you think this is a coincidence?


For context, please reference this post on Millrock and Nick Hodge from earlier in the month. The cycle is complete, the scumbags have run their classic game once again. While there are still dumbass sheep in the mining market, they'll keep on doing this scumbaggery. Just make sure you're not one of their marks.

The real state of interest in the mining sector

Hey, remember the days any presentation by Rick Rule would be Standing Room Only? This from the Mining Journal London gig:

Bear Creek Mining (BCM.v): All dressed up and no place to go

The only line that matters from today's NR out of Bear Creek Mining (BCM.v) announcing that its Corani project is now fully permitted:
"Our Board of Directors will consider a Corani construction decision when a compelling project financing structure is arranged."
It means that BCM doesn't have the U$585m to build its mine, which is a slightly larger problem than getting those permits. The problem compounds when you note that the project runs an IRR of 15.1% at U$18/oz silver, which is a nice way of saying "this isn't going to work at lower silver prices. But even then, that's the project economics and does not take into account the price any acquirer would have to pay to buy out those 103m shares of BCM. Would this C$1.86/share company accept a cash offer of C$3.00? Probably, but why would a buyer remove U$240m from its NPV of $404m?

mmmmm......"optionality on silver"......mmmmmm

6/26/18

Sandstorm Gold (SAND) (SSL.to) Hod Maden PFS

Link here.

Spoiler: It's very, very good indeed.

Tinka (TK.v) drill results

Just when the world "understood" Ayawilca and was getting bored with chunky widths of "just" 7% zinc, this turns up:
That's remarkable, so click on that title line to see the NR for yourself. The ciggypack calc is 10m of $1k/t rock, and for an eventual mine that runs each tonn at around $50 cost, it's fair to say that there's margin to play with. Here's here's one of the graphics from the NR:


PS: I stuck it on Twitter a few minutes ago and I'll write it here, too: Mining is a difficult thing to do and playing the mining sector, particularly explorecos, is a very trappy exercise in which the investor needs to take a wide range of factors into account. But sometimes the most simple of statements can sum up a situation and here, today, there's one that captures the future of the Ayawilca project perfectly:

In Peru, 40% Zn rock does not stay underground. 

I could confidently write that if the intercept had been 3m at 70% true width. This is 10m at 85%. That's all you need to know.

6/25/18

Copper is at key support

Breaking the U$3.00/lb line today is no biggie.


But watch out for a U$2.94 reading.

6/24/18

The IKN Weekly, out now



IKN474 has just been sent to subscribers. Usual stuff and nonsense with words and numbers, beats me why you bother frankly.

Are you going to tell those people who paid Marin Katusa for his trade idea, or shall I?

That world-conquering reason he's promo'ing Lucara (LUC.to) so hard? De Beers got there first.

Anglo American’s De Beers said Thursday it had successfully tracked its first diamonds all the way from its mines to jewellery retailers using blockchain technology, in an effort to clear up the supply chain form synthetics and conflict stones.
The world’s largest rough diamond producer by value, which began developing the tracking platform last year, said it was able to follow 100 high-value stones through the cutting, polishing and manufacturing process to a final retailer, as part of a pilot program announced in January.
  Ooops.

A late Friday NR from Rio Silver (RYO.v)

I wouldn't have put this here, except for the fact that RYO.v tried to bury it as a late Friday evening filing on SEDAR. And it's another BS "shares for debt" transaction. And Reeder pulls this stunt all the time. So here you go:

June 22, 2018, Toronto, Ontario, Canada – Rio Silver Inc. (“Rio Silver” or the "Company") (TSX.V: RYO) announces that it intends to settle an aggregate of $42,894 of indebtedness (the "Debt") owed to certain arm’s length and non-arm’s length creditors through the issuance of an aggregate of 857,879 common shares at a deemed issuance price of $0.05 per common share (the “Transaction”), of which 497,200 common shares will be issued to non-arm's length creditors. All common shares issued to settle the Debt will be subject to a hold period of four months and one day from the date of issuance. The Transaction is subject to TSX Venture Exchange approval. Completion of the Transaction will allow the Company to improve its current working capital deficiency position.

And for those who shrug shoulders and give it the "Hey it's only $43k" or "What's so special about this one?", your complacence is why the Canadian mining scene is as FUBAR as it is.