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12/15/18

Separated at birth

A simple question: Has anyone ever seen Tom Morello of Rage Against The Machine and Joe Mazumdar of Exploration Insights in the same place together?



Nope, me neither. Suspicious...

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

...in reverse order:
.
Third Place: "Wesdome (WDO.to): A prediction". It got popular because of the follow-up post.

Second Place: "ATAC Resources (ATC.v), Bristow's first victim (there will be more)". It would seem Bristow wasn't joking about that 15% IRR thing.
.
First Place: "Coming soon to a pumphouse near you: African Wheaton Cannabis" and the best mail received on this one was from reader LB, who said, "...when I saw your mention of African Wheaton Cannabis on the blog yesterday, I thought it was a joke...". Couldn't put it better myself, LB.

12/14/18

Evrim Resources (EVM.v): In praise and defence of Joe Mazumdar and Brent Cook of Exploration Insights (from IKN498, last weekend)

Here's a note that turned into a rant, part of last weekend's edition of The IKN Weekly, IKN498.



Evrim Resources (EVM.v): In praise and defence of Joe Mazumdar and Brent Cook of Exploration Insights



I’m going to get something off my chest and have a good old rant.



Last week, we saw another junior story hit hard times as Evrim Resources (EVM.v) released first drilling results at its (to that point very promising and exciting) Cuale project in Mexico. Even though it’s an exploreco in LatAm, it’s not one that’s been featured on these pages as once the initial market-moving event happened to the stock, its potential risk/reward didn’t look attractive to me. My neutral position started to look a bit shaky when no lesser name than Newmont (NEM) decided to take a minority stake in the company by buying into a $7.3m place at $1.50/share, but as things turned out the drilling announced at Cuale last week didn’t get close to matching the initial trench results from the project (I’m not going to go into post-mortem details of a stock we have not previously covered here, if you want to know more check out the NR or mail me and I’ll be happy to give the quick’n’dirty) and the stock did this (below).   


That is one helluva nasty sell-off. It depends where you draw the line exactly, but in approximate terms it’s a 75% haircut and this weekend’s $0.325 price is a mile away from where it was. 


And now to the point: It so happens that this week saw me watching the market pretty closely and on the back of the collapse, bullboards and social media of all shapes and sizes decided to lay into Exploration Insights, the mining newsletter run by Joe Mazumdar and Brent Cook, as they’ve had EVM as one of their positions. So yes, they got hit by the big sell-off and yes it’s a hole blown in their portfolios (they like me use the “eat your own dinner” system and only reco the stocks they buy). So out came the trolls and the “Ha Ha Exploration Insights Sucks!” or “Joe and Brent have cost their subscribers a lot of money” type comments, Monday morning QBs all around.



Which goes to show that a little knowledge is a dangerous thing. That and the majority of people who spout on bullboards are pig ignorant and will often prefer not only to be that way but stay that way. Yes, they held into the bad news, but what the easy critics and trolls fail to mention was that Exploration Insights bought into EVM at 10c back in late 2015. And then in April 2018 when the first flush of good news about Cuale came in, they made a partial sale of stock at $1.38. Here’s that mapped out on a price chart:



If that’s your idea of a failure, I can only assume that Brent and Joe would like to fail in your eyes all the time. On show there isn’t just good investment advice in a junior exploreco, it’s exceptional. They identify an opportunity early, have the chops to call a partial sale when things suddenly get peppy, and even after the massive selling they are a mile up on their original purchase. Not only that, but this week Joe/Brent have two other trade plans open on EVM but in order to know about them, you’ll need to subscribe to their service.



Which I strongly advise you to do. I know it’s not the cheapest out there, but Exploration Insights (EI) is the best newsletter written on the mining industry, hands down period no question and yes, I very much include The IKN Weekly in that calculation. The exact focus of EI is somewhat different to The IKN Weekly and all about using the duo’s geological knowledge to identify early/very early-stage exploration opportunities in which to invest, but that’s a minor point. They are the best and you should subscribe to their service, but even if you don’t you can do yourself a favour this week and go around your usual internet haunts and jot down the names of people who have spent the week criticizing Joe/Brent for their position in EVM; those people, quite literally, do not know what they are talking about and their advice on other matters is very likely to be of the same low quality.



I’m an irregular reader of other opinions on mining and markets, but there are only two newsletters that I read every edition, come what may. One is Gary Tanashian’s ‘Notes From The Rabbit Hole' (12), which gets frequent mention on these pages due to his unbeatable macro-coverage services and impressively ego-free, insightful eye. The other is Exploration Insights (13). I often find myself agreeing with their viewpoints but definitely not all the time (and when it comes to difference of opinions, both they and I have had the last laugh on different subjects over the years), but my stars when they say something you’d be daft not to listen (and you’d better have a good reason to oppose them). Joe/Brent and Gary are both best of breed newsletter writers, I cannot recommend them too highly. And with “failures” like Evrim, who needs successes anyway? Christmas is coming…buy yourself a something nice.

Detour Gold (DGC.to): Much ado about nothing

A price chart:




Way back when John Paulson sent and published his first activist letter to Detour Gold asking the company to put itself up for sale, the stock price rallied in expectation. But look where we are today, a Paulson-nominated board is not in control, supposedly that would mean DGC willbe up for sale to the highest bidder and....nobody cares.

The problem with shit assets is that they stay shit assets, no matter who you have mining them. Anyway, let's hope they find a few ways to cut down of G&A (though something tells me that we should have our hopes up too high, even on that).

The Friday OT: Joe Jackson; Steppin Out

Great track.



Another blast from the past like last week, but this one far smoother and with more musical talent. Youtube here. And while searching for the video I came across and loved reading this "Anatomy Of" piece about the song in the WSJ, from many moons ago.

A potentially important development in the "BridgeMark Group" scam

Here at IKN, we've been following the so-called "BridgeMark Group" scam ever since it was announced by the BCSC. This first post, then subsequent follow-ups (e.g. here, here and here) covering a few of the angles are testimony to our obvious interest, because this is just about the first time that the BCSC has lifted more than a single finger to do something about the cesspool it governs over in Vancouver's capital markets.

As it happens, that first post in the series was entitled, "Here's hoping the BCSC goes after TSX companies as well, not just CSE", which brings us to the point of today's post. This humble corner of cyberspace has received word (which checks out somewhere else) that the BCSC was not the instigator of the investigation that has brought us to the BridgeMark group. It all started a few weeks ago when the US OTC market authorities, via US FINRA, brought the whole Canadian cheque swap/consulting contract scam to the attention of the US SEC. It appears that the OTC is trying hard to clean up its act (probably forced to by ever-stricter vigilance from The SEC) and has serious doubts about many of the Canadian juniors listed therein. At that point the SEC called the BCSC, along with the OSC and ASC and "asked" (i.e. ordered) them to do something about it. What results so far is the announcement of November 27th pointing the finger at the 11 companies in cahoots with the 26 or so persons or entities covered by the moniker 'BridgeMark', but last month's announcement really is just the tip of the iceberg and that the BCSC Enforcement Action is still months away.

What this means is that the investigation is ongoing. It also means that, as the SEC is the driver of this and not the BCSC, the BCSC society of chums is not going to be able to protect its crooked pals who have run the TSXV into the ground through their criminally greedy activities. This investigation will not stop at the CSE, I am reliably informed, and 2019 may well be the year when the whole rotten edifice of the Canadian capital markets comes crashing down.

12/13/18

One of the BridgeMark scam companies loses its CFO

BLOK Technologies Inc (BLK.cse) just announced this:


VANCOUVER, British Columbia, Dec. 13, 2018 -- BLOK Technologies Inc. ("BLOK Tech" or the "Company") (CSE: BLK) (OTC: BLPFF) (FRANKFURT: 2AD) today announces that David Alexander is resigning from his position as Chief Financial Officer. Mr. Yari Nieken, Director, will be serving as Interim Chief Financial Officer. The Company will promptly begin a search for a permanent Chief Financial Officer.


Probably just coincidence.




Have yourself a Merry Little Ebitbrah Mug Christmas

Okay folks, last call for your opportunity to order a fabbo cool and wonderful Ebitbrah financial coffee mug as a Christmas present. The guys behind the company told me this week that they've stepped up the shipping program and now get your order to you in 5 to 7 days, so now is the time to go over and get yours. Plus there are some new designs, such as "The Hindenburg" (for all you APHA fans) and a wider range of "The Miner" mugs.

Plus, for the holiday season they've dropped all prices by 15% (they're calling it the "Tax Loss Selling Special"). Cannot get better than that, so go over to Ebitbrah today and spend some money on something nice, for you or your loved ones. Or to suck up to the boss you secretly hate. 

And a final word: I have no affiliation with Ebitbrah at all, I don't collect commissions and even though they've offered me a freebie mug twice in return for the exposure on the blog, I'm not going to collect on it. I'm happy to provide free advertising for them because 1) I like the product 2) IKN has the right eyeballs for them 3) the person behind it is a bright, go-getting young dude who deserves a bit of sponsorship. IKN will lay into the sector's bad actors, but it also loves to promote the good guys as well. That is what's happening here, no more no less.



Wesdome (WDO.to): Further to yesterday's prediction...

...about what we could expect from the share price action today, which went like this: 

"Its share price will drop at the open tomorrow morning and then get seriously bought."

A price chart:



Further questions?

12/12/18

Eco (Atlantic) Oil & Gas (EOG.v): greedy assholes

Check out the MIC with the proposals for its AGM, just out. It includes this pearl

Pursuant to the Stock Option Plan, the maximum number of Common Shares reserved for issuance in any 12-month period to any one optionee other than a consultant may not exceed 5% of the issued and outstanding Common Shares at the date of the grant. The maximum number of Common Shares reserved for issuance in any 12-month period to any consultant may not exceed 2% of the issued and outstanding Common Shares at the date of the grant and the maximum number of Common Shares reserved for issuance in any 12-month period to all persons engaged in investor relations activities may not exceed 2% of the issued and outstanding number of Common Shares at the date of the grant

As it happens, EOG has eight (!!) directors nominated, so that means just those self-serving shitbags get rights on 40% of the float next year. Add in the consultants and various parasite hangers-on, we're talking 50% minimum.

Do Not Feed The Animals.

Wesdome (WDO.to): A prediction

Its share price will drop at the open tomorrow morning and then get seriously bought.

That's all. The rest for subscribers on Sunday.

Bagholder Quotes, New Gold (NGD) edition

As it has now been sent to this humble corner of cyberspace twice in the last few hours (TY readers L and G), your humble scribe thinks a little more light is due. This is the mailer that the retail flock unfortunate enough to be on Eric Muschinski's mailing list got yesterday:



And here's another piece of mining literature that may be of interest. Same author Eric Muschinski, same company New Gold (NGD), the only difference is the date of publication, February 13th 2017:



And let's check the scoreboard on that:


Oh dear. Lord only knows how many times he reco'd this thing before 2017. But one thing is sure, Eric Muschinski knows nothing about balance sheets. Why the financially illiterate self-appoint themselves as gurus is a minor mystery, why people actually listen to these dumbasses is the real conundrum. Mind you, I'd safely bet that those people paying this guy money are happy about their sponsorship of his Yucatan Peninsula vacation this festive season. Ho Ho Ho.

Plateau Energy (PLU.v) and its 95c placement in October

The IKN post "Some friendly advice about Plateau Energy Metals (PLU.v)" dated October 10th was short and sweet. Here's the whole thing:
Those of you thinking about participating in the placement announced this morning should Google the name "Walter Aduviri". And if you're thinking of going heavily in, make sure you do so in Spanish language (and if not versed, pay someone who is).

Thank you for your attention. And don't say you weren't warned.

And here's the PLU.v price chart, then til now:


This is just the start of Aduviri's house of pain. And just wait til the hold comes off those placement shares.

ATAC Resources (ATC.v), Bristow's first victim (there will be more)


"VANCOUVER, Dec. 12, 2018 /CNW/ - ATAC Resources Ltd. (TSX-V:ATC) ("ATAC") announces that Barrick Gold Corporation ("Barrick") has terminated its option to acquire an interest in the Orion Project, located within ATAC's 100% owned Rackla Gold Property, Yukon."

And why so? Simple, Orion was not big enough and not good enough. It doesn't matter whether you've believed the ATC spiel on its beloved project over the years, a new broom is in town and bringing some cold, hard reality with it. We've know the hammer was going to start coming down with Bristow at the helm, ABX made this crystal clear a month ago:
"To approve so-called Tier 1 projects, with potential for more than 5 million ounces of gold, Barrick will require a 15 percent rate of return, based on a $1,000 gold price.... Tier 2 projects, with more than 3 million ounces of gold, will need a 20 percent return."

So today the first victim and don't expect ATC stock to have a great day. How long before NovaGold (NG) farce finally ends?

UPDATE at the open: ATAC? ATTACK!


Now 37% down.

12/11/18

Frank Callaghan; The defense lawyer does the work of the prosecution

If there's one thing I've cherished over the years of following the Canadian mining scene, it's the sharp and dry wit of Mike Caswell over at Stockwatch.

"Lawyers for Frank Callaghan, the former chief executive officer of Barkerville Gold Mines Ltd., appeared before the B.C. Securities Commission on Monday to protest the TSX Venture Exchange's refusal to approve Mr. Callaghan as an officer or director. They said that the exchange has treated Mr. Callaghan unfairly in withholding its approval. They described Mr. Callaghan as the "kind of person who should be active in the mining industry," being one of the few to have taken a junior company to the production stage."


Full thing here.

Another reason to avoid the upcoming African Wheaton Cannabis pump like the plague

Word received at IKN Nerve Centre since this post today; No lesser scamster than Sean Zubick of Palisade has been going round telling prospective marks that he is involved in a "new potstock deal with growing operations in Africa" and trying to get people signed up to the placement (being run by Canaccord Vancouver, it could only be that way).

The chances that a share structure and insider roster as scummy as the one being promo'd by African Wheaton and the bullshit pumphouse Palisade, headed by chief scumbag like Sean Ryan Zubick, are working together? Extremely high.

Coming soon to a pumphouse near you: African Wheaton Cannabis

Here's a slide from the (what they thought was the) confidential pitch out of (what they hope to be) The Next Big Thing to hit the potstock world, African Wheaton:



And over there in the top right is the reason why they want this to be big, an obscene level of greed on show in the private rounds. According to the seed run, currently being pitched all over Canada, the 213.8m shares once done will give the company a market cap of $106.9m. And over half of those shares were distributed at under 2c! Disgusting greed, yet another no-lose proposition from people who take no risk and get all the reward. This is not capitalism, it's a crony scam and needs to be stamped out.

And when you consider the background of the people running this IPO, such as an CEO previously arrested on insider trading charges (that they couldn't make stick), the son of ex UN bigwig Koffi Annan who has been into iffy dealings all his adult life, the shell company (Trius) one of the Stan Bharti vehicles and run by one of his legal beagles and a chair of the Zimbabwe end of the company who is a well-known thug politico who was up to his neck in multi-million dollar corruption cases under Mugabe. Well, it's quite the salad this one. Oh, nearly forgot, and Harry Lundin, son of Lukas.

Canaccord (who else?) want you to buy these pre-IPO shares for 50c each, which will make all in the backrooms very rich indeed. When trading starts in African Wheaton in 2019 and you wonder where all the liquidity is coming from, look no further.

12/10/18

Today's junior mining quiz question for a maximum of 17 points

What three things do these three junior exploreco companies have in common?
  • Evrim Resources (EVM.v)
  • Silver Bull Resources (SVBL)
  • Azucar Minerals (AMZ.v)

If you answered "All in Mexico", score two points.

If you also answered "All did deals this year to let major mining companies into their flagship assets", score 5 points.

If you added to your answer, "All did those deals with majors at way higher prices than today's market because the major just waded in and then a whole bunch of retail fools who were cocksure the major "knew something special" also bought at the same time only to have their asses handed back to them on a silver platter as well", score ten points.

This thing about major mining companies knowing more than the rest of us, can we bin it now, please? Geologists are crappy at corp dev decisions.

12/9/18

The IKN Weekly, out now


Aux armes, citoyens! Formez vos bataillons!


IKN498 has just been sent to subscribers. Not a very good edition, last week's was a lot better.

El más grande, lejos

Gracias por otra alegría.