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8/25/18

John McCain

Brave.

Tahoe Resources (TAHO) (THO.to): More fun in Guatemala (UPDATED)

I think the best thing to do is let the company tell the story the way it wants to, refraining from any further comment. NR here, main body of text below:

VANCOUVER, British Columbia--(BUSINESS WIRE)-- Tahoe Resources Inc. (“Tahoe” or the “Company”) (TSX: THO, NYSE: TAHO) regrets to announce that twelve of Minera San Rafael’s unarmed security contract workers were attacked and kidnapped late in the evening of Friday, August 24, 2018. The private contractors were unarmed and remained peaceful during the entire period.
After several hours of being abducted, injured and held at gun point, the contractors were eventually released and escorted by the Guatemalan Civil National Police (PNC) back to Jalapa where they were treated for their injuries and trauma.
The abductors identified themselves as the “Peaceful Resistance Group of Mataquescuintla.” Earlier in the week, this group of individuals installed an illegal blockade on a public road at the entrance of the municipality of Mataquescuintla in the department of Jalapa, which is about five kilometers away from the Escobal mine. Despite being a public road, this blockade was stopping all vehicles on the route to be inspected and is impacting neighbors and communities in the area.
Jim Voorhees, President and Chief Executive Officer of Tahoe, commented: “On behalf of everyone at Tahoe and Minera San Rafael, I would like to express our sincere sympathies and concerns to the families of the twelve contractors who were abducted and injured on Friday night. Tahoe condemns violence of any kind in the strongest possible terms. We are treating these developments with the utmost seriousness and are taking appropriate measures to ensure the safety and security of all of our employees and contractors, their families, and local community members. We have been working diligently to engage government and community leaders to resolve the roadblocks in a peaceful manner for more than a year, and we will continue to pursue these efforts in good faith.”
Lack of legal certainty in the case of Escobal Mine increases violence
During more than 300 days that have passed without the Guatemalan Constitutional Court issuing a final decision in the case of the Escobal mining license, various violent actions have been carried out, not only against Minera San Rafael workers and contractors, but also against residents and community members. The lack of legal certainty has allowed these attacks to occur more often where, on repeated occasions, there have been reported attacks on supplier vehicles and helicopters, threats to local community members and their families and even other kidnapping attempts. All of these incidents have been reported to relevant Guatemalan authorities including to the office of the Human Rights Ombudsman (PDH) to ensure the rights of all Guatemalan citizens.
Despite these illegal and violent actions, Minera San Rafael will not abandon its extensive efforts to promote dialogue and peaceful coexistence in the region, understanding that these violent acts are being perpetrated by minority criminal groups and do not represent the views of the majority of the community members.
Tahoe has engaged numerous stakeholders, including the President and Vice President of Guatemala, the Ministry of Energy and Mines, the Ministry of the Environment, Human Rights Ombudsman, representatives of the Catholic Church and diplomatic missions in an attempt to resolve the roadblock peacefully. The Company is committed to the human and civil rights of all Guatemalan people and supports communities’ rights to freedom of expression and peaceful assembly in a lawful manner.
About Tahoe Resources Inc.
UPDATE: This link has some photos of the incident, including the state in which the attackers left the minibus that the security personnel were travelling in and a shot of one of the people's backs, who has obviously been hit by something.

8/24/18

Panoro Minerals (PML.v): How Luquman Shaheen laughs behind Randy Smallwood's back

When the royalty deal reached by Panoro Minerals (PML.v) and Wheaton Stuff & Things (WPM) that includes $14m in staged payments over nine years in order to keep PML afloat, the PML boss guy Luquman Shaheen told us that the money would, "...allow the Company to make targeted investments into exploration at the Cotabambas Project."



In fact, it's more like targeted investments in the wine lists of Vancouver restaurants. Does Randy Smallwood of Wheaton Stuff & Things know that his cash is being wasted in this way? Does he care? 

And by the way guys, that money you've "invested" in Investor Relations...



...didn't work.

The Friday OT: Red Hot Chili Peppers/Beavis and Butthead; Love Rollercoaster

Words and music by The Ohio Players, kickass cover version by the RCHPs, visuals and yoks by Beavis & Butthead.




Funky Friday. Youtube here.

The Red Eagle (R.to) news

Here. Pretty close to the IKN Monday post, I'd dare say. I'm just glad that the local suppliers in Colombia will finally get paid.


8/23/18

Belo Sun (BSX.to) being stalked by CD Capital

You may remember Belo Sun (BSX.to) as the disaster area company with the Volta Grande project in Brazil and an environmental burden so heavy and community opposition so fierce that even Agnico (AEM) gave up on it recently. So anyway, today was the second time this week that a news report from Brazil has floated past this desk to say that CD Capital is looking to buy the thing in some way, shape or form. 

For what it's worth, CD Capital runs a natural resources fund out of London and is headed up by one Carmel Daniele, an Oz who knows her Brazil (director of Brazil Potash) and her gold mining (she's a director of Lundin Gold). If she feels like joining the long list of people and companies who have flushed money down this particular drain then so be it*.

*Full disclosure: I had a spec trade this one about a year and a half ago, came out level on price (therefore lost a couple of dollars due to commish charges), have never been back. Not planning to again, either.



The rebound of precious metals stocks: Put-up or shut-up time

The day after the big washout selling event in mining stocks last week, high volumes and toxic-level dumping by big houses all around, I stuck this on Twitter:




So far it's going as per the count. We had the knee-jerk late on Thursday and Friday (Number 2) we've had the ennui return this week (Number 3), we now have stocks re-tracing today on the back of the USD floating up and gold doing the opposite. In other words, we have so far faithfully followed three stages of a classic bottom in (precious metals) mining stocks and today looks like Number 4 in play. Therefore it's time to make sure money is where mouth is because, assuming what we saw last week is indeed a classic capitulation bottom, the better rebound and real profits from bottom-feeding the move are up for grabs.

I may be wrong and last week wasn't the final capitulation washout bottom for mining stocks (a lot will depend on what gold does of course, which also means "watch that dollar"). But it sure as hell looked like it to me and the playbook has ticked off the typical reaction stages as well. Either way, I've never had a problem about being accountable for my market calls, which is why this post exists. The game is afoot.

Regulus Resources (REG.v)

Yesterday Regulus Resources (REG.v) announces a $20m raising at $1.90, but you'd never have guessed it just by looking at the price chart:


Sometimes, what doesn't happen is more interesting that what happens. Crappy market for miners or not, serious companies will always be taken seriously. Management must be kicking themselves they didn't try to raise more.

Tahoe Resources (TAHO) (THO.to)

If you loved the low downside risk at U$5.50 (Tumazos), you'll love it at U$3.61:



Yes, it's a new 52 week and all-time low for TAHO this morning. So just think, if you buy today you'll be doing better than every other shareholder of this company. What a deal! What could possibly go wrong?

8/22/18

When informal mining meets a 7.3mag earthquake


This happened in Venezuela yesterday, which gives an idea of just how precarious the life of informal/artisanal/illegal miners really is.


Regulus Resources (REG.v) halted because...

..of financing news about to come out, this desk is reliably told.

UPDATE: Yup;

VANCOUVER, Aug. 22, 2018 /CNW/ - Regulus Resources Inc. (TSXV:REG) ("Regulus" or the "Company") is pleased to announce that it has engaged Canaccord Genuity Corp. leading a syndicate of agents including PI Financial Corp. and Haywood Securities Inc. (together, the "Agents") to complete a private placement financing, on a best efforts  basis, of not less than 10,600,000 common shares ("Shares") of the Company at an issue price of C$1.90 per Share for gross proceeds of not less than $20,140,000(the "Offering"). All dollar amounts in this press release are expressed in Canadian currency.
Regulus has been advised by Route One Investment Company, L.P. that it intends, for one or more of its managed investment funds (such funds, collectively, "Route One"), to participate in the Offering for 7,000,000 of the 10,600,000 Shares.

8/21/18

Advance Gold Corp (AAX.v): How do I love thee? Let me count the ways



Advance Gold (AAX.v) bears some stunning similarities with Alset Minerals (ION.v)

  • Same country as Alset
  • Same pump and dump BS waste of time as Alset
  • Same background Mexican landowners and major insiders as Alset
  • Same know-nothing blowhard CEO as Alset when it was in pump and dump mode, the 100% unqualified Allan Barry Laboucan
  • Same medium of BS dissemination as Alset, i.e. Allan Barry flapping his lips on CEO.ca
  • Same target audience for the pump as Alset, i.e. the neophyte greenhorns who get sucked into Tommy Humphreys' den of iniquity
  • Same price ramp on nothingburger news to draw the tyros in, with the Mexican gangsters bankrolling this scam selling millions of worthless shares to idiots with dreams.
  • Same dump on the reality when results show it's just another chinchilla pasture
  • Same "aw shucks but it'll work out" attitude from the front man of this scam, the two-faced sociopathic liar Allan Barry
  • Same bunch of idiots who don't realize their pockets have been picked by professional thieves cursing their bad luck


All with apologies to Ms Barrett Browning, of course.

8/20/18

Bobby G is looking for friends

Want to be Bobby G's friend? Maybe to console him when the SEC convicts his sorry ass on the insider trading of the pump and dump Liberty Silver? Maybe protect him from the Triads when the Chinese he's currently ripping off via Bunker Hill realize they're being ripped off? Well you too can befriend Bobby Genovese now and thanks to his mailer, it's as easy as this:


Dumbass biz wires on copper and La Escondida

It takes a special sort of ignorance to call the effects of a strike at La Escondida (BHP et al, world's biggest copper mine) wrong all the way down. Then switch and get it wrong all the way back up. But fear not, you too can find that brand of dumbassery any time you open the mining trade papers.


Facts:  The 2017 strike didn't not affect copper prices, the 2018 threatened strike did not affect copper prices, the end of the threat is not affecting copper prices. And if you don't understand why, perhaps you too should stop reading the morons you pretend to be thought leaders in the industry.

What's happening at Red Eagle (R.to)

Q: How to make a small fortune in precious metals mining?
A: Start with a large fortune and... (etc)

The guy who recently filed a 42m shareholding, Fernando Palazuelo, is a Spanish born property developer who moved to Peru maybe 10 years ago after getting into trouble with the law in his native country. Since then he's been doing the same sort of buy-renovate-sell business in Peru and with great success too (to the point where he's branched out and started to do the same to properties in Detroit USA). Anyway, he was one of the guys suckered into buying part of that 35c placement back in November by Kallpa, but instead of putting the loss down to experience and realizing he's been ripped off, his ego has got in the way and he seems to have decided to become a gold mine magnate. To that effect, he's bought more shares at the current levels but more importantly, he's negotiating to buy out the debt positions of Orion, Liberty and Stracon at distressed levels (this desk has heard 26c on the dollar, though that's unconfirmed). These negotiations have been going on for weeks and R.to has been telling people off record that a "holistic solution" was about to be revealed to the world all that time...any minute now....like next week....no, make that a few more days (etc etc) so there's obviously some sort of hitch to it all (my guess, Graña). We know Orion are desperate to get out and will happily accept this type of deep haircut in order to recuperate at least some money.

Assuming that happens, he'd then be in tacit control of R.to and would then inject capital via a dilutive raising (lets guess at 200m shares at 10c), which would give R.to the cash needed to pay down its very large and problematic accounts payables (i.e. the local suppliers who have not seen a penny recently). 

Bottom line: Fernando Palazuelo is paying something around $50m or $60m to become the one third owner of R.to shares and hold all its debt position as well, in a re-capitalized company that he believes will then be able to get on wit the job of producing gold and making him rich. And that last part of the plan is where it all falls down, because he may be good at property development but he's obviously a dumbass about precious metals mining, this one might start well in 2018 but he's destined to lose every single penny of his new hobby.

So now you know.

8/19/18

The IKN Weekly, out now


i like this one


IKN482 has just been sent to subscribers. Lots of things to read and look at inside it.