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12/1/18

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

...in reverse order:
.
Third Place: "HIVE Blockchain Technologies (HIVE.v): Embarrassing, Frank". Casting my mind back, a show on how far the crypto star has fallen is that a year ago (or even six months), one of IKN's very occasional posts on crypto would invariably be the most popular of the week. There was even one week where crypto/bitcoin posts took the top three places. Nowadays less so, but enough people tuned into the car crash quarterly from HIVE get it the bronze medal.

Second Place: "Here's hoping the BCSC goes after TSX companies as well, not just CSE". It does seem strange to me that the BCSC has turned a blind eye to no end of TSXV pump&dumps over the years, but has suddenly got hot on CSE listed stocks.
.
First Place: "Mexico: The new mining law and the changing scenario around mining (from IKN496)". I'm happy about this, it reminds me there is a place for real content on the blog.

11/30/18

The Friday OT: Paco de Lucía plays the Adagio from Joaquín Rodrigo's Aranjuez Concierto

Rodrigo was in the audience that day, too. The day the greatest flamenco guitarist of all time took on the most famous classical guitar piece ever written. This is the second movement of the three and one of the melodies we've all heard at some point. But never played like this.




Youtube here. The last four minutes melt the hardest and coldest of hearts.

Prize Mining (PRZ.v) and the crooked Maven

Toldya:


And Palisade just keeps on blowing out its shares.

Oh, and by the way, has Gwen Preston's opinion of PRZ changed yet? And and by the way of by the way, she loves all that "I'm independent and no fees and everything" thing, but fails to tell audience that her paymasters at Scott Gibson get craploads of free shares in these BS exploreco, gets her to reco the stocks and then blows out the papers into the buying she creates. Prize Mining (PRZ.v) back in March/April when it was a 25c stock? Just one example of the backroom scam operating behind her squeaky clean facade.

UPDATE: What? She'd never told you about the massive conflict of interest between Gibson Capital and the Maven Letters? Wow, must have slipped her mind...

The end of 2018 in the mining sector...

...is worse than the end of 2015 in the mining sector.

Back then the sentiment was merely exhaustion, mining investors had been beaten near-senseless after nearly three years of a secular bear for miners that had sapped all strength and removed any hope. This time is isn't just exhaustion, as after consulting and conversing with all types of industry people, from CEOs to retail and all points in between, there's also a large measure of hatred in the air for mining stocks. People are sick and tired with the way all lessons from the bear period were ignored by mining companies, who just latched onto the pop in metals prices of early 2016 and told us that this is fine...
...when it was far from fine. Zero lessons learned, therefore when the metals rally petered out we shareholders were still under the burden of profligate spenders of Other People's Money who don't give a fig about their companies' financial well-being, hold very little skin in their own games and only care about making sure the salary cheques kept rolling in (or if they didn't, converted quickly into shares that get blown in our faces). 

Fellow mining shareholders, make your list of companies right now. And when the next metals bull arrives, make a point of not rewarding the idiot companies in this sector. There are many.

Personally speaking, 2018 cannot end too quickly.

That EMX Royalty (EMX) discretionary bonus thing: Both company and Rick Rule speak

IKN tries its best to provide a public service to the industry and has noticed on manifold occasions that when cockroach companies and/or players get light shined upon them, they invariably scuttle away. The reverse is also true, of course: When people with nothing to hide are required to speak up, then speak they do. Further to the IKN coverage of the enormous and sneakily awarded $3.8m cash bonus for a deal closed on land in Russia (of all places), EMX had this to say for itself this morning:

Vancouver, British Columbia, November 30, 2018 (TSX Venture: EMX; NYSE American: EMX) – EMX Royalty Corporation (the “Company” or “EMX”) provides additional disclosure regarding the US$3.8 million in bonuses announced in its asset portfolio and corporate update on November 28, 2018. This additional disclosure includes a summary of the rationale, approval process, recipients, and allocations related to the bonus.
The NR then goes to great lengths to provide details of the transaction and the discretionary bonus. And that's good (it's long, so use the link and read it all).

Also at the time, this humble corner of cyberspace also wondered what the large shareholders of EMX such as Rick Rule would think of the bonus handout. Now we have the answer, as Rule has offered up this on-record reply to your humble scribe:
"I am delighted with the outcome. This was a spectacular effort and outcome. The team worked well, and earned every penny. 

"As to the allegations that Michael Winn or Brian Bayley would preside over illegal payments, that indicates the ignorance of the accusers. Good copy perhaps, but factually absurd."

So now you know.

Core Gold (CGLD.v) 3q18 financials; The highlight

Oh, it's definitely this bit:

As at September 30, 2018 the Company’s accounts payable includes some balances which are significantly overdue, including income taxes, royalties, IVA and other withholding taxes owed to the Ecuador Government, who have seized the Company’s bank accounts in order to garnish deposits to pay down the payables. The Company is currently negotiating to defer these amounts. These negotiations are ongoing and there is no assurance they will be successful. During the nine months ended September 30, 2018, the Company incurred a net loss of $6,064 (2017 - $8,557) and as at September 30, 2018, the Company had a working capital deficit of $17,399 (December 31, 2017 – $19,258). Continuing operations are dependent upon the Company’s ability to maintain profitable operations and generate sufficient cash flow from the sale of precious metals or secure additional working capital from external sources as required, neither of which is assured. The recoverability of properties, plant and equipment is dependent on the existence of economically recoverable reserves and the ability of the Company to obtain necessary financing to initiate and complete development.
As for the chances that Core Gold (previously known as Dynasty Metals & Mining) will be able to deliver on the need for profitable operations, in 3q18...
  • CGLD returned a net loss of $2.382m
  • They couldn't even return at minehead, as revenues ($7.036m) were wiped out by COGS ($7.72m)
  • Once you add in DD&A and office, operating loss was $3.09m
  • Working capital deteriorated another half million to NEGATIVE $17.4m
  • Even as the share count ballooned further, 12.269m shares added to bring the total to 146.047m

For some reason, the world thinks this company is still worth money and gives it a market cap of over $34m. The world is mad.

HIVE Blockchain Technologies (HIVE.v): Embarrassing, Frank

Truly embarrassing. How anyone lets Frank Holmes near their money is a mystery of the financial universe.


When you start delving into that net loss figure of $28.25m, some of the details are truly amazing. For me the best one is how they take a $14m impairment, but even then they assume a base price of $613 for Ethereum...imagine what the impairment would have been if they'd used true market prices! What this means is that there will be no respite in Q4, not for operations and not for Below-The-Line adjustments. 

The actual revenues number ($6.523m) needs careful examination as well, because most of that is coins they haven't sold. HIVE tries hard to bury the real info on that, but once you take tweezers to the numbers you see that in the three month period, HIVE sold $2.442m worth of digital currencies. Those coins sold cost the company $3.604m to produce and that at market prices that were WAY higher than today's. There are other pearls of wonder buried in the operating figures, too. This company is an absolute joke.

Meanwhile, over at the balance sheet...


We have impressive violin accountancy on show here, let's point at just a couple of items. The Mark-To-Market on held coins is going to whack them hard in the next quarter (again) and now that the receiveables and pre-paids are down to nearly zero, the next quarter's cash position will drop in scary fashion. The upcoming cash crunch at HIVE can only be avoided by a very large share placement (or a loan that would come at prohibitive cost) and with 313.7m shares out already, the dilution will be of Metanor levels.

But a special mention goes to the "Land" line item and note 7, written up at $15.413m it's the funniest thing I've seen in a balance sheet for months. For those just joining us, that asset is a 64 hectare tract of land in sub-arctic Norway that HIVE acquired as the place where they plan to build their next phase of beep beep machines to mine the coins. Yup, it's just land. It cost the company U$7.225m in cash and an assumed liability of U$2.719m from the vendor, plus 4.75m shares of HIVE and 1.25m warrants that are so far out the money you need binoculars. In other words, a piece of Elk pasture procured in May (when people still thought Ethereum was a thing) for just under $10m plus shares now worth $1.5m is booked at over $15m at end September! 

My stars Frank...you are one helluva shyster.


11/29/18

The obscene EMX Royalty (EMX) bonus payment; questions arising

After publishing on the news yesterday that EMX Royalty (EMX) had decided to reward its insiders and friends with $3.8m in cash due to the closing of a deal, the conversation over at Twitter turned to motives behind the deal and the payment. Feel free to check the details of the gig, but in the simplest of terms:
  • EMX held a minority part of copper asset in Russia for many years
  • A third party came along and expressed interest in buying it
  • The market was skeptical and didn't expect the deal to close
  • All went quiet for a considerable amount of time
  • Then in October EMX announced the closing of the deal and the main part of its proceeds, $65m, was delivered (there's another $4m left to receive, apparently) in November
  • The market applauded the unexpected result for EMX
  • We then got the out-of-blue announcement on the $3.8m in "discretionary bonuses" awarded to insiders and consultants
 Which brings us to the Twitter conversation ensuing and in the words of Per Nilsson, a guy who knows this sector backwards as well as having a better feel for the way in which dirty deals go down in Russia,
"Seems shady. External consultants in Russia getting large bonuses after a successful deal = red flag. Might as well be compensation for bribes that a consultant had to give away."
That sounds at the very least a valid issue. You close a deal on a property in Russia that the market didn't expect to happen and then all of a sudden cash is slushed around for those concerned. Therefore and as EMX is both Canadian and USA listed, we point readers' attention to this document, "A Resource Guide to the U.S. Foreign Corrupt Practices Act" published by the Criminal Division of the U.S. Department of Justice and the Enforcement Division of the U.S. Securities and Exchange Commission. Specifically, this section of the PDF:

 

IKN believes that the shareholders of EMX Royalty (EMX) deserve far more transparency about this deal. A sudden windfall juicy profit from a mining property in Russia that generates windfall cash bonuses that the company tried to bury at the very bottom of a ling-winded news release? Seriously, David Cole?

11/28/18

A list of things that Allan Barry Laboucan cannot do

  • Claim he is qualified as a geologist
  • Claim he is qualified as an engineer
  • Claim he is qualified as a lawyer
  • Claim he has any expertise of any sort in mining
  • Successfully run a mining company
  • Write a coherent news release
  • Hold his liquor

EMX Royalty (EMX) shits in the face of its shareholders

Talk about greedy assholes! Check out what this band of funsters snuck in right at the bottom of their news release today:

"The Company also announces that upon successful completion of the sale of the Company’s interest in the Malmyzh Project in Russia, a discretionary cash bonus has been allocated in an aggregate amount of US$3.8 Million to executive directors, officers, employees and consultants of the Company."


Oh my stars! I wonder how Rick Rule feels about being blatantly ripped off like this?

This is why we like Mining Ramblings UPDATED

Doug Beattie explains in simple terms why Western Uranium (WUC.cse) is an obvious scamjob. Here.

How this thing is priced at a $55m market cap is beyond my ken.


UPDATE: And yet another reason; Just added a couple of hours ago, a short and accurate assessment of the news out of Tinka Resources today. That's on this link. I hope DB gets into the habit on this, the mining blogosphere needs people with his level of nous.

Congratulations Eira Thomas, CEO of Lucara Diamond Corp (LUC.to)...

...on winning the 2018 "Outstanding Achievement for a Woman in Mining" award at Mines And Money in London this week. 


And here's the chart for LUC.to since February 26th, the day Thomas took over as CEO:


It's a small field.

11/27/18

Here's hoping the BCSC goes after TSX companies as well, not just CSE

Because there's plenty of grist for that particular mill, too.

I've been sent the link and/or the PDF of the BCSC announcement about the so-called "BridgeMark Group" around two dozen times since it came out yesterday. And a good thing too, thanks to all who cared enough to think of this humble corner of cyberspace, it's greatly appreciated. There's been plenty of real reporting on the development done by real reporters, you hardly needed a pissant blogger throwing in his dos centavitos yesterday, but there are a couple of interesting angles to the allegations brought by the BCSC Executive Director.

1) All the companies are CSE-listed. Now that's fine, if all the named issuers have been doing naughty things they should be called out but there's no way on God's green earth you can tell me these nefarious peddlers of scams are confined to that exchange. Sleight of hand as outlined in the report has been going on forever on the TSX and especially the TSXV, therefore we wait to see whether BCSC has actually grown a real pair. Is it after the bad guys, or is it just trying to shut down the TSX competition which has grown from insignificant to a thorn in the side of the main exchange these last couple of years?

2) The Bri-Bri factor. It's impressive to note how many people directly involved with Brian Paes-Braga over the years made that rogue's gallery of names in the release. For example:

  • Justin Edgar Liu and Bri-Bri go way back together and have been tight on several deals in the past.
  • We know from these very pages that Bri-Bri and David Raymond Duggan used to be tight, as Bri-Bri once used Duggan to quietly sell millions of shares of Lithium-X into an unsuspecting market. However, they've now fallen out and Duggan skipped off to live in Panama, no word on any reconciliation has reached this desk.
  • And probably the most direct link of them all, though many people assume Frank Giustra to be Bri-Bri's mentor from the getgo, in fact it was Abeir Haddad who was the original daddy and the route that BriBri took to get his first break in his sordid business.

And those just three names known by this desk to have intimate connections with the sleazy, two-faced Bri-Bri, you may know of other connections with others people or companies on that list. Rather strange how many arrows point in the same direction, is it not?}

3) Meanwhile, if we assume the BCSC is really trying to do the right thing by the Canadian people (at last) to clean up its capital markets and is not going to restrict itself to the CSE, another special name leaps out at your author's eyes from those named. That's because David Matthew Schmidt is the person who ran the recent scam pump and dump on Prize Mining (PRZ.v), the company featured on this blog while the P+D was going on and named as the scam that it most definitely is by IKN. Schmidt was the person who did the cheque swap with PRZ. I know I'm supposed to say something like "...the person who allegedly did the..." etc because in a court of law you're innocent until proven guilty, but screw that and let's talk straight, he WAS the guy according to several ultra-reliable IKN sources and has a long-standing reputation as being as legit as a seven dollar note. 

Therefore, BCSC, it would be great if you got around to making an effort with TSX(V) listed stocks as you make to clean up Vancouver (and I know you guys read this humble corner of cyberspace, so don't pretend you haven't read this post later, okay?). Start with Prize Mining (PRZ.v), its connection with David Schmidt and once you start pulling on that string, I'm sure you'll get to wondering just why a whole range of newsletters, promoters and websites suddenly and all at once decided that PRZ was just the greatest opportunity to present to their collective readerships. 

And be clear, PRZ is just the tip of this sordid iceberg of greed and lies.



Mexico: The new mining law and the changing scenario around mining (from IKN496)

You can rant or giggle at this blog's contents as much as you like, it's not where the real work goes on round these parts. This from The IKN Weekly IKN496, out on Sunday evening. I've been asked by a couple of subscribers to put it on the open blog and yeah, why not. Here you go.



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Mexico: The new mining law and the changing scenario around mining
The main political risk news story out of the region last week is the very same we previewed last Sunday, a closer look into what we can expect from the new AMLO government for the Mexico mining sector. At the time last Sunday I expected to preview some of the potential negatives in the pipeline, but events overtook me and last week we saw a range of Mexico exposed mining stocks take steep dives on the political newsflow. Examples:

  • Fresnillo (FRES.L) down 15%
  • Torex Gold (TXG) down 15%
  • Southern Copper (SCCO) down 15%
  • MAG Silver (MVG) (MAG.to) down 8%

However, not all Mexico exposed miners were whacked hard, or even at all, compared to the benchmarks. More examples:

  • First Majestic (FR.to) (AG) down 4%
  • Fortuna Silver (FSM) (FVI.to) down 3.5%
  • McEwen Mining (MUX) down 1%
  • Gold Resources Corp (GORO) down 1%

And the reason for the drops? Let’s go to Bloomberg for its coverage, here a title line on Thursday November 22nd (5):

Mexico Mining Selloff Worsens as Concerns Grow on Law Proposals

Here’s another from Friday November 23rd (6):

Prospect of Harsher Rules Causes Mexican Mining Companies to Fall Even Farther

As for the content, this segment is a fair summing up of what English language business readers understood from the coverage:

Fears of tougher mining regulation in Mexico under incoming President Andres Manuel Lopez Obrador are taking over investor sentiment, with some of the top stocks falling for the third consecutive day.
Industrias Penoles SAB, Grupo Mexico SAB and Fresnillo Plc extended losses after Morgan Stanley downgraded the stocks on concerns that Mexico’s new congress is considering as many as 11 bills or resolutions that could materially impact mining companies operating in the country. On Tuesday, an initiative from Morena party Senator Angelica Garcia called for increasing surveillance of mining activities and giving greater powers to communities and the government.
“We believe Mexican mining equities will decouple from fundamentals for the foreseeable future given the heightened uncertainty around the regulatory framework,” Carlos de Alba, an equity analyst at Morgan Stanley, said in the report. “The risk ranges widely and could be material.”
Proposed initiatives include empowering the Ministry of Economy to declare certain zones as not viable for mining, and revoke permits and existing concessions that had a negative social impact. They also contemplate charging Mexican agencies with overseeing the social and environmental impact of mining activities.

Meanwhile, Mexico media channels were also on the case, but covered the story with a little more depth. As you’ll see that depth is important (and we should also recall that one of the objectives of Bloomberg reporters is to earn bonuses by publishing “market moving reports”). Here’s a report from El Sol de Mexico (7) from Friday:

Shares in the country’s biggest mining companies continue to be in free-fall since the November 15th initiative presented by the Movimiento Regeneración Nacional (Morena) (note: AMLO’s party) which has worried investors and this Thursday became headline political news

Yesterday afternoon the Morena senator Angélica García made the formal presentation of the reform initiative to the Mining Law. The modifications propose to “give teeth” to the Mexican Geological Service to be able to actively regulate concession tenders, the power to cancel permits and sanction mining companies that do not comply with the law. It also states that the Secretary of the Economy would be able to declare non-viable zones for mining operations or under conflict for negative social impact and thereby cancel concessions.”

It goes on and covers the same type of commentary from this-or-that pro-mining committee or chamber of commerce, but then we get to the bits that didn’t make it to the English language coverage

Albert Híbert, who will work with Alfonso Romo (note: AMLO’s Chief of Staff as from December 1st who is in his own right a very rich and successful Mexican businessman) in the Presidency, asked for people to remain clam as this was only a proposal which had not gone through the legislative process. “We need to discuss them, we need to look at them, precisely because of the damage they are causing in the financial markets”, he said.

This is no small point, ladies and gentlemen. For one thing the world seems to be reacting as if these items are already on the statute: Far from it, these are law proposals no more and no less, they will go through the Mexico parliament in normal style and be debated, approved, denied, adapted or altered to the pleasing of congress.  For another, just one soundbite from the centre of the upcoming new government (starting in less than one week from now) is enough to show that the executive is at the very least not 100% behind the plan and probably looking at it as a means to negotiation.

And add in this one, the law bill as proposed by the senator for AMLO’s Morena party (the reason people are so nervous of this, it would seem) is already seeing opposition from other senators of the same party! Step forward Armando Guadiana, Morena senator in the upcoming parliament who said (8) on hearing of the contents of the law bill that it was a shame the protagonists were proposing regulations in sectors that already had legal instrumentation and how they were generating uncertainty in the capital markets. He added, “We mustn’t go around changing laws just for the sake of it”, and said that he was already preparing his case to put before congress in order to vote down this Morena-led bill. Again, that’s no small thing right there.
In other words, the first thing to take away is that this isn’t a law, it’s a law bill. The second is that in order to make it through parliament and into law as stands, it will need plenty of support (as well as time). The third is that strategically place people inside AMLO party itself (and we haven’t even mentioned the opposition yet) are either reticent or outright against the contents of the law bill. So if this is starting to sound less scary to you already, I’m not surprised.

Which brings me to my next point about the changes to the mining scene that AMLO will bring, as they start with the man who has already seen plenty of coverage on these pages this year, Napoleón Gómez Urrutia, aka ‘Napito’ who was the exiled leader of one of the largest mining unions until winning his senate seat and coming into the government of AMLO. He’s now firmly installed in parliament and it’s no surprise (considering his background and ambitions) that he’s already seeing significant victories in the mining sector.

Two examples in the last few days: First the Napito union, known as Sindicato Nacional de Trabajadores Mineros (SNTM), won a significant pay increase at one of the mines under its majority union control. The privately owned Nueva Rosita coal mine in Coahuila last week agreed (9) to a 13% pay increase for its 120 workers (7% direct, another 6% in bonus increases tied to productivity) along with other benefits such as interest free loans to buy personal vehicles. These workers suddenly find themselves with increased political power thanks to Napito’s new position and obtained a pay rise well over the current rate of inflation (Mexico is running at around 4.8% in 2018).

Secondly, by secret ballot just a few days ago the Boleo copper mine in Baja California Sur (which was sold by the near-bankrupt Baja Mining, Greenslade et al, to South Korean capitals) voted (10) to change its main representative union from the one controlled by Germán Larrea (head of Grupo Mexico) to the SNTM of Napito. This is a significant victory not only for the increased power over mining, but over Larrea with whom Napito has been in bitter dispute for over a decade. This one must have been very sweet for him.

To sum up, we have three things:

1)     Sharp falls in some Mexico-exposed companies, but by no means all of them. What the big fallers have in common is a rocky history of either worker or community relations (often both).
2)     A law bill that will at best will have a difficult passage, more likely will be greatly adapted before ever making it to statute, or may even get stuck in committee forever.
3)     A senator in Napito, suddenly powerful and making the most of it via his union,grabbing power and negotiating better employment terms for workers in his union.

That’s what I believe we have here, ladies and gentlemen. The law bill is part of the Napito strategy now unfolding that has him taking control of the mining union scene in the country, getting better deals for his members and more power for himself. As I’ve mentioned on several occasions already, the days of lapdog-type unions at Torex (for one example) that saw its own workers rebel against their representation and demand that Napito’s union were allowed in are now over (see for example this July 12th post on the blog (11) entitled, “Costs will rise substantially at Torex Gold (TXG)”. This law bill looks like a stick to me, the carrot will be Napito and his people going to the mining companies with “You let our union represent the workforce and you then cut them a better deal than before, then your problems suddenly disappear.” One person’s negotiating position is an other's extortion, after all.

The new panorama for mining in Mexico is not wholesale militancy against the industry and the driving away of companies or new investment. What it is, however, are new deals that will see more of the cash generated go to its workforce. Or else. Therefore, what this means to investments in the country is that the sharp selling we saw last week is almost certainly overdone. However, I don’t think the nerves are going to abate in a matter of hours or days and none of the affected stocks are my idea of a rebound quickflip-trade. We may get more selling in the days ahead, but above all I doubt we’re going to get enough money sloshing back in to push price back in the very-near-term. On the other hand, we may eventually see the companies that weren’t hit hard last week as the bigger losers. As an example (and it’s probably unfair just to pick on one), Fortuna Silver at San Jose in Oaxaca has fought hard to keep its mine non-unionized or keep the union influence over its operations to a minimum. With the new strength of Napito and worker emancipation on the menu, they are an example (I repeat, there are others) of a smaller company that could see its operating costs rise meaningfully in dollar terms as workers demand a better remuneration package.

The bottom line is that I am less worried about the future of mining in Mexico than the panic sellers of last week. I’m also highly suspicious of the lack of depth shown by sell side analysts on the subject, especially those in the larger firms (Morgan Stanley and Citi are two of the large entities that helped spread the unalloyed fear last week) who should have the depth of knowledge to advise their clients better. However, I am not a knee-jerk buyer of the beaten-down stocks because a) the fear-mongering could go on for a while and b) even though the worst of the law project is unlikely to make it into law there is plenty of evidence to show that the Napito-driven mining scene in Mexico is going to see changes, first and foremost in better pay deals for workers. That means higher costs for the companies. And a final point; aside from the passive exposure via Sandstorm (SAND) (SSL.to) which is something I am happy to take, the IKN Weekly ‘Stocks to Follow’ list has had no Mexico exposure for quite some time. That is not a coincidence, but in 2019 that may change once the new rules are established.


Angry Geologist does First Majestic (AG) (FR.to)

And does it very well indeed. Right here.

11/26/18

det är ingen ko på isen

It would seem that Mister Lundin is upset. He'll live. Hey dude, no cows on the ice, yeah?

Goldcorpse (GG) teams up with IBM Watson to "Improve Predictability" in the gold mining industry: Its first predictions revealed by IKN

Here's the NR:
Goldcorp and IBM Develop New AI Technology Solution to Improve Predictability for Gold Mineralization
VANCOUVER, Nov. 26, 2018 /CNW/ - GOLDCORP INC. (TSX:G, NYSE: GG) ("Goldcorp") IBM (NYSE: IBM) ("IBM") Goldcorp and IBM Canada have co-authored an innovative first of a kind technology product: IBM Exploration with Watson will improve predictability for gold mineralization. The solution applies artificial intelligence to predict the potential for gold mineralization and uses powerful search and query capabilities across a range of exploration datasets.(continues here)

And AS AN IKN EXCLUSIVE here's what the AI predictability program developed by IBM Watson has come up with so far:
  • Newcrest is not stupid enough to buy Goldcorpse
  • Caspiche is a POS and will never be mined
  • GG will have to sell Coffee to pay down its debt
  • Bristow will offer to buy the 40% of Pueblo Viejo ABX doesn't own
  • Peñasquito will be blockaded three times in 2019
  • Garofalo will be out of a job in six months

Damn clever, these machines.


HIVE Blockchain Technologies (HIVE.v) and the changing face of the Ethereum market

As we wait, bated breath, for the HIVE.v 3q18 financials (due out the end of this week), here's a look at the changes seen in the Ethereum market since the last set of financials out of HIVE. In its 2q19 MD&A, Frank Bagholder Holmes was kind enough to add in a table that explained what sort of annual revenue the company could expect from its ETH mining at different market prices and hashrates: Here is it:


Thing is, the price of ETH has since gone (quite literally) off-scale to that chart. And not in a good way, either. ETH is currently trading at U$113, what Frank needs is a new line on his chart for the 3q18 filings. But fear not Frank! IKN is here to help you and happy to provide the chart you'll require. Here ya go:



With ETH and the hashrate where it is today (212 tera and dropping fast), HIVE is staring at an annual revenue for mining of U$13m from its ETH rigs. Which should be enough to cover the company travel expenses.

Torex Gold (TXG) and Terry MacGibbon's insider trades: Seems legit

A panel:



A price chart:

An owl:

The Tinka Resources (TK.v) resource update: Many good things

This isn't going to be a long note, but I wanted to put something up here after skimming, scanning, reading and then studying the resource update published by Tinka Resources (TK.v) this morning for its Ayawilca project in Peru because there are a lot of things to like here. We'll do it via a screenshot of the main Ayawilca zinc resource table, I add the red boxes:



The red boxes pick out things to really like. Example, 20.6% of the overall resource is now in the indicated category. Example, we've added nearly 25m tonnes. Example, grade isn't just good, it's excellent (be clear that just down the hill, Peru's biggest zinc miner Volcan makes decent profits at much lower grades than even that 5.6% Zn in the inferred...so 6.9% pure zinc indicated is as juicy as you could wish). Then in the notes, I've picked out a few of the details because this obviously is NOT a BS-type of resource, they've been conservative almost to a fault with pricing, with NSR cut-off (there's a strong case to make that $50/t) and with ratio dynamics. 

There's still plenty of development work to do at Ayawilca and 2019 will be a key year for the company. Also, the way this crappy market is right now there's no guessing how the update will be received by the world. But be in no doubt, this is a strong resource update that validates the company's work so far.

Full disclosure: Yup I'm long TK, I'm nicely in profit on the trade but I'm not selling any shares. So now you know.

Continental Gold (CNL.to): Finally a resignation

It took them weeks and they tried their very hardest to ignore their responsibility and weasel out of its tight spot, but finally Continental Gold (CNL.to) has started to face reality.
TORONTO, Nov. 26, 2018 /CNW/ - Continental Gold Inc. (TSX:CNL; OTCQX:CGOOF) ("Continental" or the "Company") announces the resignation of Mateo Restrepo Villegas as President of the Company, effective November 30, 2018. Whole NR here.

Newmont laid down the law, I'd presume. Who's next, Ari?

11/25/18

The IKN Weekly, out now

Vroom Vroom

IKN496 has just been sent to subscribers. A big edition, with 37 pages, over 18,000 words, 30+photos from a recent site visit, then the usual bunch of charts and tables and numbers. The winter evenings will fly by.