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12/29/19

The IKN Weekly, out now




IKN553 has just been sent to subscribers and I'm tired and going to bed.

12/22/19

The IKN Weekly, out now




IKN552 has just been sent to subscribers. Ink it.


PS: apparently a number of mails have bounced. If you haven't received your copy, shoot me a mail.

12/20/19

A Flash update has just been sent to subscribers...

....before the opening bell this Friday morning. Two trades planned for today.

12/16/19

For a more satisfying experience as a CEO do not publish BS in your news releases, Amerigo Resources edition

On October 17th, the Amerigo Resources (ARG.to) 3q19 production report began like this:
"In Q3-2019, MVC produced 19.1 million pounds of copper at a cash cost of $1.56 per pound, and 0.5 million pounds of molybdenum."
However, three weeks later when  ARG posted its official 3q19 financials, we found out that only 16.09m lb of that copper was produced at that $1.56/lb price (with total cost at $2.43/lb, fwiw). Then last week, this:

Vancouver, British Columbia – December 11, 2019/CNW/ - Amerigo Resources Ltd. ("Amerigo" or the "Company") (TSX: ARG) announces that effective December 6, 2019, Rob Henderson departed the Company and ceased serving as the Company’s President and Chief Executive Officer and Aurora Davidson has been appointed as President and Chief Executive Officer. 
Ms. Davidson is a long-time executive officer of Amerigo, having joined the Company in 2003 as Chief Financial Officer, and having served as Executive Vice President and Chief Financial Officer since 2015. Ms. Davidson will continue to act as Chief Financial Officer until her successor is hired.
Dr. Klaus Zeitler will remain Executive Chairman and Christian Cáceres will remain General Manager of Minera Valle Central (“MVC”), the Company’s operating subsidiary in Chile.

Fully deserved, and they didn't even say thank you. It remains to be seen whether long-standing executive officer of ARG Ms. Davidson has assimilated the corporate culture under her old boss. For the sake of her shareholders, I hope not.

12/15/19

The IKN Weekly, out now

 

IKN551 has just been sent to subscribers. Enjoy the real taste of good eating.

12/13/19

In The IKN Weekly this weekend...

...a report on your author's four days visiting the Royal Road (RYR.v) assets in Nicaragua. Planes, cars, canoes, mules, rains, rocks and toñas. Out Sunday evening, si Dios quiere. A la orden.

Kirkland Lake (KL): Money talks and BS walks

Do you see the scales-fall-from-eyes moment when the metals market suddenly realizes the wisdom of Makuch? Do you see the retro-justification of Eric Sprott gaining serious traction (a man who knew fark all about the KL deal before it struck that Monday morning, totally and embarrassingly left out the loop by the exec players who didn't want fussy uncle butting in)?



Nope, me neither. Al the column inches in the world can't disguise the bloated wankery behind this deal, Paulson wants his print and the DGC BoD get their juicy change of control bonuses. And the mining industry stubbornly refuses to grow up. And if the biggest and splashiest deal of the year is based on scratch-back dealmaking, may the good Lord help the rest of them.



Youtube here. A lovely shade of green.

The Friday OT: Crowded House; Weather with you

For Teemoh.



Blog back with several vengeances next week. Youtube here.

12/12/19

Not a good year for the Jewhating scum

First Bob Moriarty, now Jeremy Corbyn.

12/8/19

The IKN Weekly, out now



Yes I know it should be something with the number 550 in it somewhere, but I'm going to break the rules just for one week. For secret reasons. IKN550 has just been sent to subscribers. Remember the Alamo.

12/6/19

The Friday OT: Deadmau5; There might be coffee

This afternoon, Spotify informed me that I'd listened to this song more than any other during the course of 2019. As it's absolutely ace damn holy moly brilliant, I'm just going to pat myself on the back for having the most exquisite taste and be done.


In The IKN Weekly this Sunday...

...we will be talking Minera Alamos numbers. Oh yes.

12/3/19

IKN would like to send its sincere thanks to Frank Giustra...

...for making Frank Holmes look fucking stupid.


Nicely done, Shortstack.

12/1/19

The IKN Weekly, out now




IN549 has just been sent to subscribers. Signposting plenty of trades this week. Geddit?

Bob Moriarty is losing his grip on reality

Right here right now on CEO ca (index), he (his name there is "fingerprint42") is now trying to make out that I asked him to publish the jew-hating and that I'm the Jew-hater. Sorry guys, not true, just like every other unsubstantiated accusation that comes out of the fetid mouth of that serial liar, racist, bullyboy and fantasist.


Though I have no idea who or what "IK" is. Anyone?

However, we see the same Modus Operandi from this bigoted shitbag every time. Dare to mention that he's a Jew-hater and he'll come back with the brouhaha and make up all sorts of shit about you, too. Try it! It's fun and you get to see the real Bob Moriarty, a screwed-up and hate filled old man.

PS: It's really easy to accuse someone of securities fraud. I know, I've done it to other people enough times. However, when I take that very serious step I make sure I have plenty of evidence at hand in order to prove such an accusation. Bob Moriarty does none of that and what's more, he can spend the next five years searching if he likes. There is no evidence because there is no fraud and there never was, it only exists in the dubiously functioning brain of Bob Moriarty.

UPDATE: Seriously, he is losing it completely, these are the ravings of a lunatic. Nobody got fired for anything because this whole scene is utter fantasy, it only exists in his mind and now he's ingesting something and adding chapters. If he weren't such a racist shitbag I'd start feeling sorry for him, this must be embarrassing for his sycophants.


(btw Bob, not reading you directly, your "fans" are sending over screenshots)

UPDATE 2: And now Bob is offended, poor thing. Just not fair when they push back at you and spit your lies back into your face, is it Bob?

11/30/19

HIVE Blockchain Technologies (HIVE.v): Goodbye

And they couldn't even be bothered to get the grammar right:

During the second quarter of fiscal 2020 and subsequently, Bitcoin market conditions for miners worsened as coin prices declined while mining difficulty and network hash rates increased, reaching a record high. This combination resulted in the Company’s cloud mining operations, which operate on a fixed cost basis, becoming unprofitable. As a result, the Company has suspended 200 PH/s of its cloud mining capacity at the beginning of October. It is currently reviewing various factors, including market conditions and the halving of Bitcoin rewards anticipated to occur in May 2020 and it’s anticipated impact on legacy ASIC miners, and reviewing its options for this cloud mining capacity as well as its plans for its other 100 PH/s of cloud mining capacity, the initial contractual term of which expires at the end of calendar 2019.

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

....in reverse order:

.
Third Place: "Sexsomnia and the moral superiority of mining executives". And an ex-Canaccord guy, you say? Oh now, there's a surprise. Good to hear that Boreal canned him.

Second Place: "If you weren't aware that Bob Moriarty is a jew hating shit...". If your idea of a moral leader for life advice is a hate-filled bigot and bully who'd be happy to see the end of a whole people, then Moriarty has the final solution for you.
.
First Place: "The chilling effect of this ill-conceived Kirkland Lake $KL Detour Gold $DGC.to deal is bad news for the mining sector". The most hit page by a mile. Somebody has to tell you just how bad this Paulson character is for the wider mining industry.

11/28/19

Great Panther $GPR.to $GPL: Leopards don't change their spots

In less than two months, the following list of amazing things has occurred at Great Panther Mining (GPR.to) (GPL):
A pit wall collapse at its Tucano mine in Brazil (literally one day after an analyst site visit) which lowered annual guidance.

Fired its COO.

A fatal accident at its San Ignacio mine in Mexico.

Fired its CEO.

A second fatal accident at its Coricancha mine in Peru, which is aggravated by the fact the location of the fatal accident was the mill that was operating without a valid licence.

And tonight (Thanksgiving Thursday evening) it announces a second drop in annual guidance with just 32 days left on the calendar.

Chair Jeffrey Mason, along with directors Robert Archer, John Jennings, James Mullin, Elise Reese, Bob Garnett and Kevin Ross, ought to be thoroughly ashamed of themselves.

If you weren't aware that Bob Moriarty is a jew hating shit...

...and a bigot, it's about time you did. Go fuck yourself, Moriarty. Your death will improve the planet.

This is an interesting company

Been quietly watching and I do not own any shares. This news today is the start of its journey.

MONTRÉAL, Nov. 28, 2019 /CNW/ - Cerro de Pasco Resources Inc. (CSE: CDPR) (« CDPR ») (OTCMKTS: GPPRF) (Frankfurt: N8HP) is pleased to announce that it has executed a definitive share purchase agreement dated November 27, 2019 (the "Agreement") with Volcan Compañia Minera S.A.A. (BV: VOLCABC1) and its subsidiaries (collectively, "Volcan"), whereby CDPR will acquire all of the issued shares of Oxidos de Pasco S.A.C. ("Oxidos"), Empresa Administradora de Cerro S.A.C ("Cerro SAC") and Remediadora Ambiental S.A.C. (together the "Target Companies"). The arm's length transaction (the "Transaction") will provide CDPR ownership and operation of all mining and processing assets in Cerro de Pasco, Central Peru.


Full thing here.

Makuch's bullshit on Detour

On finally getting to the G&M piece on Eric Sprott and Kirkland and Detour, your humble scribe discovers the biggest fun at the very end of the note and the part that quotes Tony Makuch more than Eric Sprott:
"Kirkland has no intention of calling off the deal, he (Makuch) said, or renegotiating the terms lower, but he said he might have changed the company's messaging had he known the response was going to be this negative."

That is bullshit. Certified, gilt-edged bullshit and not only that, the worst type of casual lie that comes out of C-suite mouths. For one thing, the fate of a near-$5B...ooops, make that "near $4Bn" deal is not decided by "messaging", it is decided by cold, hard cash. For another, perhaps the "messaging" being referred to here is that Makuch himself went on record last month (last freakin month!) and said that Kirkland would not favour quantity over quality, so in fact let's call this "messaging" brouhaha for what it is, double-talk from a weak puppet of a CEO who does not have executive control of the company he pretends to run that has annoyed people who like money more than gold. And that's the worst part of the words that tumbled out of his mouth, as he knows it's a lie, the reporter knows it's a lie and anyone with an inkling of the sector knows it, too. All Makuch is doing is giving a nod and a wink to his owner, John Paulson. Plus the fact that the whole "will/won't it close?" question is a false dilemma, ain't no way this deal is voted down.

11/27/19

Luis does Kirkland

Luis over at Economic Alpha (aka highgrade on Twitter) today published his thoughts on the deal struck between Kirkland Lake (KL) and Detour Gold (DGC.to) under the title "Kirkland Takes  Detour" which are well worth reading because:
  • Luis has been long KL since it was a U$6 stock (approx) and his track record of calling the stock and its catalysts over the last couple of years has been impressive. 
  • As we know, KL has taken a big hit this week (from U$49 to U$40 approx) as the deal was handed a very negative reception by the market.
  • Luis has taken the hit on the chin and come up with a nuanced and carefully considered piece that uses his intimate knowledge of the stock as well as the public data. 

It's not for me to agree with every point he makes, but I think he nails the conclusion and gets the call right. But that's me, go make up your own mind about it by clicking right here.

Sexsomnia and the moral superiority of mining executives

Karl Antonius of Mandalay Resources and Boreal Metals (among others), you are today's most interesting story in The Vancouver Sun:

On Monday, Karl Richard Antonius called several witnesses, including his mother and a girlfriend, to testify about sleeping issues he claims to have experienced throughout his life.
He’s expected to argue that at the time of the alleged 2015 assault, he had sexsomnia, a condition in which a person behaves very much like someone sleepwalking and therefore is acting involuntarily and not responsible for their actions.
In April, the complainant, who cannot be identified due to a publication ban, testified that she was sexually assaulted during a blind date with Antonius.
They had gone to several locations before she lost her keys and Antonius suggested that they go back to his “work” apartment at the Fairmont Pacific Rim luxury hotel in Vancouver.
She maintains that she had no interest in having sex with him and it was late and she just wanted to get some sleep before she dealt with the issue of her missing keys.
The alleged victim testified that Antonius gave her some shorts and a T-shirt to change into and she went to bed before he tried to climb into bed with her, groping her.
She said she swatted his hand away and said no and then fell asleep but was awoken to him engaging in sexual intercourse that she claimed was non-consensual.
Antonius, who is expected to testify later this week, called several witnesses to testify Monday about issues he has had with sleep, including eating, walking and talking while he’s asleep.

Full report here and it's well worth checking out the details, just to see how far an asshole like this is capable of going in order to cover up his pathetic life. One has to wonder whether things may have turned out better for the Cerro Bayo mine, flooded and ruined in 2017, if the Mandalay C-Suite were more interested in its operation and less interested in banging 20yo chicks on luxury yachts and in luxury hotels around the world. We will likely never know...

11/26/19

The chilling effect of this ill-conceived Kirkland Lake $KL Detour Gold $DGC.to deal is bad news for the mining sector

I'm not going to trawl over the basics just to add word count to this, if you don't know about the deal and what it's done to the price of Kirkland Lake (KL) shares it'd be strange to find you reading this blog, frankly. Here's a 10 day price chart to get it out the way.



It only takes a minute of memory on the Denver Gold Show 2019 to recall the very clear message handed down from the money people to the mining people, that the mining companies must work to improve their balance sheets and not blow their treasury cash on expansive M&A. At the time, I wrote that while understandable and correct of the money people it wouldn't stop paper M&As from happening. Sure enough, it took just two months for an large (just under $5Bn ticket price is big enough for me) all-paper takeover to show up.

Problem is, this deal has been forced upon KL by Paulson and his Gold Pressure Group to one side (who truly do not give a single fuck about the mining industry and just want their print) and Eric Sprott OBO* on the other, who dreams of size size size as gold rockets through $10,000/oz and he gets to sit at the Davos Top Table at last. This DGC deal is shit, it explodes the myth and mystery of KL as the new and acceptable face of mining. Generalists look on with sinking hearts as Makuch does exactly the same as every CEO before him, bends to pressure and turns his lean company into a sprawling, inefficient mess that prefers quantity over quality. What we have witnessed yesterday and today is the destruction of goodwill at KL, over $2Bn in bets that "this time is different" and KL would remain a low cost, high margin producer have all lost. Money, by the way, that only ever existed in the imagination of KL longs who fell for the ruse. Welcome to reality people, KL yesterday stated for the record that its future is the same mediocrity as every Tier 1 mining company. 

However, the worst aspect of this ill-conceived debacle of a deal is that it will now send a massive chilling effect over the entire sector. Your ambitious mining company was told in September that it cannot use its cash to buy assets. It has now been told (screamed at, in fact) that it can't use paper to do deals, either. Those of you expecting a raft of M&A in 1q20 are going to be left sorely wanting.



*Our Benign Overlord

11/25/19

Marcel Rada is a very naughty boy

Back in 2017, Marcel Rada was permanently banned by IIROC and the BCSC from becoming a director or officer of a public company, from acting as a registrant, from acting as a promoter, from management and/or consultancy in the securities market and banned from all investor relations work as well. Here's part of the ruling against him:
IIROC found Rada admitted he solicited and obtained $205,000 in funds from individuals for the purpose of investing in two issuers, without disclosing that a significant portion of that money, more than $175,000, would then be paid to him. Further, Rada admitted to facilitating off-book transactions without the knowledge and consent of his employer. He also refused to produce bank records and attend at an interview with IIROC staff when asked.

Therefore, it comes as a surprise to find that this individual, resident in BC, has recently been in flagrant disregard of all those orders. Marcel is currently pitching a junior that wants to move forward with the Tassiwini gold project in Guyana and has been using aggressive pitches as well as offering places to potential investors in the seed capital round. And that should be enough to send him straight to jail if IIROC and the BCSC ever get their act together. Do Not Feed The Animals, Canada.


UPDATED Bloomie: "BHP Plans to Increase Its Stake in Ecuador-Focused SolGold"

A worthy scoop-ette from Bloomie this Americas evening and I'll betcha a dead dingo to a dozen armadillos that David Stringer's source was someone in mid-range exec BHP who is trying to stop this freakin madness from happening. Anyway, enough of my stupid and on with the serious excerpt:

BHP Group, the world’s biggest miner, plans to increase its stake in SolGold Plc, the developer of projects in copper hot spot Ecuador, according to people familiar with the proposal. SolGold shares surged.
Melbourne-based BHP will add to its existing 11% holding in SolGold and become the developer’s largest shareholder ahead of Newcrest Mining Ltd., the people said, asking not to be identified because the matter is confidential. An announcement detailing the size of the investment could be made within days.

BHP and SolGold declined to comment
Whole thing here. As for the market reaction, yup for sure a big woodie in London this morning but you also get the feeling somebody knew something on Thursday. Loose lips, Nickieboy...loose lips...



UPDATE: The deal is out, with BHP buying in to the tune of 77m shares at a kinda-thin 22.15p per share and, with a new total of 14.79% ownership, the BHP stream of urine travels a few millimeters further than that of Newcrest's.

The IKN Weekly, out now


I like pleasure spiked with pain and music is my aeroplane, it's my aeroplane


IKN548 has just been sent to subscribers. We search for a tax loss selling bargain, we find several. What could possibly go wrong?

11/24/19

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

....in reverse order:

.
Third Place: "Dear Wexford Capital". Not long now, just a few more days.

Second Place: "Belo Sun (BSX.to) and INCRA land". Didn't think for a minute that this post would make the top three, but it caught a wave of extra hits on Friday and Saturday (somebody handing the link around, probably). The morally vacant Doody and Scamsberry are still pumping this dog, maybe they tried to BS their flock into believing last week's court news was positive for the company.
.
First Place: "Even in failure, Endeavour Silver $EDR.to $EXK CEO Brad Cooke prefers to lie through his teeth". Thank you Rudy Havenstein for sending the hit count higher. It only takes one high-traffic Fintwit person to do it to a post these days, we're all on the derivative sites.
 
 
The other thing that the blog stats is showing me this weekend is that the experiment of hanging back on blog posts and doing too much on Twitter (now finished) hasn't affected eyeballs at all, viewing figures are back to the same numbers seen the first half of the year. Unimportant, but told you anyway.

"Potosí: The Silver City That Changed the World", by Kris Lane

One of the most interesting places in all the continent* and a must visit for anyone connected to mining, the town of Potosí in Bolivia has a history like no other. A new book is out on the story and kind reader GB put this link to the NY Review of Books critique of author Kris Lane's efforts. Well worth reading just the review to find out more. A small appetite-whetter:
"...the history of sixteenth- and seventeenth-century Spain, which could never have become the dominant power in early modern Europe without the regular supply of silver extracted from the mines of what is today Bolivia, but during the period of Spanish rule was part of the viceroyalty of Peru. Every year this silver was shipped to Seville, where it entered the royal coffers and those of financiers, merchants, and private individuals. From Spain the silver circulated through Europe, paying for the military and other expenses of the always indebted Spanish crown, facilitating private transactions, and flowing into Asia and the Far East, where it met the rising demands of Mughal India and Ming China for silver, and allowed Europeans in turn to purchase the spices, textiles, and other luxuries from the East that they craved. The quantities of silver from Potosí that reached Seville and were recorded by the officials of its House of Trade were staggering. Indeed, vale un Potosí—“worth a Potosí”—is an expression still used in Spain."


*Yes, I have. Three times.


11/22/19

The Friday OT: Colter Wall; "The Devil Wears a Suit and Tie"

This voice is the reason OM managed to bump Kiri to yesterday, it's Johnny Cash meets James Earle Jones wrapped up in a 24yo kid who shaves twice a week max and also happens to be off-scale wonderful at music.



Youtube here and if you click thru, check comments that include, "I've just grown a beard only by listening to his voice for 2 minutes." When did country get this good? Nobody told me.

In The IKN Weekly this weekend...

..., a significant change in plan as we make ready for what could become an all-time epic tax loss selling season (and if 2020 does to gold what I and many think, one that gets talked about in whispered tones of reverence for generations to come). You never know how tax loss selling season pans out, as deep discounts pop up in strange places but fail to appear in others you thought logical, so the plan is to have options and play the cards as they are dealt. Christmas wish lists aren't just for kids and Santa Claus. IKN548, deep into its 10th year of publication, out Sunday evening Americas time.

11/21/19

The Friday OT on a Thursday: Kiri Te Kanawa sings 'E Susanna non vien!... Dove sono i bei momenti' from Mozart's Marriage of Figaro

The original, the one-and-only, the pioneer "Where did all the good times go?" song. Lyrics of lament over love are a sub-sector of thousands of songs these days and their emotional appeal is as strong as ever, imagine the bombshell this caused in 1786, a well-to-do wife singing about her husband and her broken heart.

We're already into Act 3, the countess has worked out that the Count is a rogue when it comes to women, she's hatched a plan with her servant to catch him red-handed (Susanna the servant had previously refused to sleep with the Count in exchange for cash, not least because she's in love with Figaro) and awaits her return. But Susanna is late, so the Countess begins to reflect on her marriage and when Kiri Te Kanawa absolutely owned this aria back in the 80s and 90s, professional Rugby Union and Australian Rules Football players would weep uncontrollably en masse in opera houses and then stop the shows with standing Os.




Youtube here. Reader OM made it happen on a Thursday this week, so blame him.

There was no point in Rob McEwen cheerleading for U$1,500/oz gold for years on end...

....as his company was set for failure the moment U$1,500/oz gold shows up. MUX vs gold price (GLD proxy), June 1st 2019 to date:



Rob McEwen, poster child for the human being that gets between you and a profitable trade in gold.

Even in failure, Endeavour Silver $EDR.to $EXK CEO Brad Cooke prefers to lie through his teeth

If it weren't for the casual way in which Bad Crooke of Endeavour Silver (EDR.to) (EXK) tossed in a sentence of utter bullshittery that it could not go unopposed, this post wouldn't exist. This morning EDR announced the closure of its trainwreck of a mine El Cubo, an asset that was an unmitigated disaster for the company almost from its very first days back in 2012. But not according to the revisionist claptrap served up by CEO Crooke, who started his comments with these words:


Seriously, that's exactly what he said. Hit the link, look for yourself and when you have, come back and check out the financial results EDR has filed from El Cubo:


Only in mining can a company be so stupid as to pay U$250m for a mine and than take impairments on it to the tune of U$271m in the three years that follow. In total, gross sales have not even reached costs and the net effect of El Cubo of EDR over the period of operations is a loss of over U$243m.

That is what Bad Crooke classes as a "good mine".

11/20/19

African Gold (AGG.v): Another Stan Bharti pump that will later dump

Stan Bharti's African Gold (AGG.v) is getting the paid pump treatment, main distributor Oilprice dot com. Here's the only thing you need to know from the main p&d article (though there are several others to choose from):

"This communication is a paid advertisement. Oilprice.com, Advanced Media Solutions Ltd, and their owners, managers, employees, and assigns (collectively “the Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by 2227929 Ontario Inc. to conduct investor awareness advertising and marketing concerning African Gold Group. Inc.2227929 Ontario Inc. paid the Publisher fifty thousand US dollars to produce and disseminate this and other similar articles and certain banner ads. This compensation should be viewed as a major conflict with our ability to be unbiased."
Can't argue with the last line of that disclaimers. Anyway, this has now popped...


...and its drop back from whence it came is a question of when, not if.

McEwen Mining $MUX to raise U$50m...

....or maybe even U$57.5m, by selling small portions of the company at $1.325 per portion

"...it has priced an underwritten public offering of 37,750,000 units, each unit consisting of one share of common stock and one half of one warrant to purchase one share of common stock, at a public offering price of $1.325 per unit for aggregate gross proceeds of approximately US$50,000,000.  Each full warrant is exercisable for one share of common stock with an exercise price of $1.7225 per share and are exercisable immediately and for five years following issuance.  The Company has granted to the underwriters a 30-day option to purchase up to an additional 5,662,500 shares of common stock and/or additional warrants to purchase up to 2,831,250 shares of common stock at the public offering price per share and per warrant, less the underwriting discounts and commissions.  The offering is expected to close on or about November 22, 2019, subject to customary closing conditions."

And remember: Nobody forced him to buy Black Fox, he did it all by himself.

UPDATE: Here's how well MUX has done in 2019, the year gold moved nicely to U$1,500/oz, compred to gold, the PM miners ETF (GDX) and the juniors ETF (GDXJ):


Winning.

11/19/19

The four year chart for Regulus Resources (REG.v)

On the back of its NR today, Regulus Resources (REG.v) has dumped to its lowest price since early 2017:



Apparently, adding $20/t rock to a $5/t cost rock moving exercise is bad for the company. So be it, not illegal to sell shares. Or as mused on Twitter this morning:







Belo Sun (BSX.to) and INCRA land

Remember this post back on August 22nd as we laughed our fruitiest laugh about the BS pump job being run on Belo Sun (BSX.to) by Porter Scamsberry and John Doody? The post that explained how much trouble BSX was in on its permitting track due to the way they decided to pretend land truly owned by Brazil's agrarian reform bureau, INCRA, was theirs. To jog memories, it includes this:
"...let us be crystal clear on this, the INCRA overlap on the Volta Grande Project footprint does not cover "some of the planned infrastructure", it covers MOST of the infrastructure including pit, tailings facility and mill so fair warning required here, if you are a BSX shareholder and read this, then you do not get in contact with the company and have them explain exactly how much of the important areas of their mining concession and sat on INCRA land, you only have yourself to blame afterwards"

Cut to today, as we just got this from BSX and it includes this as a stipulation for the granting of the construction licence:
"update SEMAS on the negotiations with INCRA (Instituto Nacional de Colonização e Reforma Agrária /National Institute of Colonization and Agrarian Reform) involving the overlap of a portion of INCRA urban development project area within the Volta Grande Project."
And that's not even the enviro licence (the "LP"). This is the LI construction licence and the LP is a whole different and far more complicated thing. Meanwhile, a check on the recent share price action shows that John Doody has managed to ruin Christmas for another section of North America. 


11/18/19

A death at the Great Panther (GPL) (GPR.to) Coricancha mine in Peru

In its 3q19 MD&A, GPL stated that Coricancha is on Care & Maintenance:

Great Panther also owns the Coricancha Mine Complex (“Coricancha”), a gold-silver-copper-lead zinc mine and 600 tonnes per day processing facility. Coricancha is located in the central Andes of Peru, approximately 90 kilometres east of Lima. Coricancha is on care and maintenance and the Company is establishing the conditions under which a restart of production can be implemented.
Therefore, somebody needs to ask this question of GPL management before the markets open tomorrow:
"Do you have a valid operating permit for the Coricancha mine? Do you have all other permits required to operate the mine?"

Here's a NR:
VANCOUVER, Nov. 18, 2019 /CNW/ - GREAT PANTHER MINING LIMITED (NYSE American: GPL;TSX: GPR) ("Great Panther", the "Company") announces with great sadness that an employee lost his life in an accident that occurred during the late evening of November 17, 2019 at the processing plant of the Company's Coricancha Mine Complex in Peru.  The operation was undertaking further processing of stockpiles and limited mining, following the Bulk Sample Program completed earlier this year.  There were no other injuries related to the accident.
Great Panther's personnel immediately initiated protocols to close the plant area, and inform the employee's family and appropriate government and local authorities.  The area of the accident has been barricaded and closed off while an investigation, which is underway, into the accident has been completed.
"We are extremely saddened by this tragic accident and extend our deepest condolences to the family, friends and colleagues of our co-worker, an experienced plant operator who worked at the Coricancha Mine Complex for almost seven years", stated Jeffrey Mason, Interim President and CEO.  "Safety is a core value at Great Panther and we will continue to strive to prevent such accidents from occurring. This includes completing an investigation of this accident and taking remedial action. Great Panther is continuing an in-depth review of its comprehensive safety policies, programs, and training across all operations." 
ABOUT GREAT PANTHER

Dear Wexford Capital

Good morning,

I understand that the CEO of Mako Mining has decided to publish on social media the personal exchange he had with me last week. Very classy.

He may have been under the false impression that I would not like this, or be inconvenienced by my use of strong language in the exchange. Perhaps there was another reason, I do not know, but what I can say is that I am pleased he has decided to take this course of action. It now allows me the full opportunity to use the exact same exchange on my blog with his obvious and tacit permission, which will in turn allow me to go into greater detail about the truth of what happened last week and the insolent and outstandingly insulting way in which that person decided to treat me in order to exonerate himself from any blame. I would also like to point out that the use of swear words is not an issue for me and the only reason there are none in this mail is that you as a company may well run a profanity filter on incoming mail.

Yours, Mark


(also sent to company via mail)

The IKN Weekly, out now



IKN547 has just been sent to subscribers. A rarity.

11/16/19

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

....in reverse order:

.
Third Place: "Maybe Zara Boldt should have kept her mouth shut". Because it's not just CEOs who deserve the attention of this humble corner of cyberspace, CFOs enjoy the exposure, too.

Second Place: "Here's the thing about Quinton Hennigh". Only went out yesterday afternoon, too.
.
First Place: "The Art of Promoting Mining Projects". Thank you reader O, your happiness has been spread even more widely.

We now know why Chakana Copper's (PERU.v) annuals were delayed...

...and the stock on management CTO for a couple of months. They late-filed the 2019 annuals (and the latest quarter) on SEDAR last night and...

Subsequent to May 31, 2019, Management discovered that an employee had misused $569,698 of Corporation’s funds for personal benefit. The employee directed unauthorized cash payments to be made, which were supported by falsified supporting documentation. Management has reviewed the payments and determined that $120,169 of these transactions relates to the nine months ended May 31, 2018 and $368,886 relates to the year ended May 31, 2019. Subsequent to the year ended May 31, 2019, Management has determined $80,643 of the misuse loss relates to the period from June 1, 2019 to September 18, 2019, the termination date of the employee.

Management has determined that the effect of the misuse of funds during the nine months ended May 31, 2018 is material to the consolidated statement of loss and comprehensive loss for that period and to the consolidated statement of financial position as at May 31, 2018. The effect of restating the financial position and financial performance for the period ended May 31, 2018 is described in Note 2.

On October 4, 2019, the Corporation signed a settlement agreement pursuant to which 4,000,000 of the common shares of the Corporation, owned by a former employee of the Corporation, were relinquished as compensation for misuse of funds by the former employee. These 4,000,000 shares were cancelled on November 14, 2019. Additionally, as a result of the former employee’s termination for cause, 1,000,000 share purchase options, issued September 17, 2017, have been cancelled.

...it looks like a modest case of embezzlement. And as those tend to create an accounting spaghetti that needs to be un-knotted forensically, the delay is understandable. The silver lining is that they caught the bad actor and that the damage isn't heavy on a corporate level, Chakana will not be killed by this unfortunate event.

PS: It wasn't difficult to work out the ID of the bad actor.

11/15/19

The Friday OT: Claude Debussy; Nocturnes

This week I got on a plane in a bad mood and got off it in a good mood, partly because the nice gent in the uniform served me three rums over ice but mostly because this is downloaded on my Spotify. Nuages relaxes, Fetes gets that pent up energy out your system, Sirenes rocks you to sleep (and when you have the thing on repeat, you're still listening to it when you wake up).




Debussy improved my week, now it's your turn. Youtube here where the publisher has left a nice note:
According to Debussy's introductory note to the Nocturnes: "The title "Nocturnes" is to be interpreted here in a general and, more particularly, in a decorative sense. Therefore, it is not meant to designate the usual form of the Nocturne, but rather all the various impressions and the special effects of light that the word suggests. 'Nuages' renders the immutable aspect of the sky and the slow, solemn motion of the clouds, fading away in grey tones lightly tinged with white. 'Fêtes' gives us the vibrating, dancing rhythm of the atmosphere with sudden flashes of light. There is also the episode of the procession (a dazzling fantastic vision), which passes through the festive scene and becomes merged in it. But the background remains resistantly the same: the festival with its blending of music and luminous dust participating in the cosmic rhythm. 'Sirènes' depicts the sea and its countless rhythms and presently, amongst the waves silvered by the moonlight, is heard the mysterious song of the Sirens as they laugh and pass on."

Here's the thing about Quinton Hennigh

To get to the point, we are going to take as read that he is a world-class and peer-approved geologist, okay? I know that, you know that, good. My issue is that Quinton Hennigh the geologist has somehow managed to morph his stellar academic reputation into one that covers the world of business and finances as well, so it's equally valid to judge him on what he has done to create hard coin wealth. That was the underlying point made as per the tweet this morning which turned into a fair debate with Brent Cook (who is both a friend of QH and a true objective professional admirer of his work, we have no problems there).


Companies create wealth away from capital markets and not in them, that is a basic truth. If your company, via innovation or discovery or whatever, brings new sources of wealth to the capital market arena it will create wealth for itself and those around us. And if it doesn't it won't, so the fact that Quinton Hennigh has not made a single economic discovery while in the junior arena means his companies have not created wealth. We also know the markets are a zero sum game and also that Quinton Hennigh has done very well for Quinton Hennigh. 

So if you really want to hero-worship a economic geologist, look somewhere else. For example David Lowell, a man who not only co-authored a highly significant geology paper (which is also without a shadow of a doubt the single most significant economic geology paper ever), but then went down the coast of South America, said "I think it would be a good idea to stick a big long drill hole in right here" and nowadays more copper comes out of the hole he made than the whole of North America. There's a man who not only made himself justly rich and famous for his geological knowledge, but also created untold amounts of wealth for the planet, from shareholders of BHP to Chinese families with interior plumbing for the first time in their lives.

11/14/19

Alio Gold (ALO.to) and the lender of last resort

This is a classic Rick Rule deal: With very little risk to his company (because he's already worked out how long Alio Gold (ALO.to) can remain in production before the financials ruin it completely) he turns $15m into $20m in three years. It's great business, I mean how many mining equity investments have given you a +10% column in your port for three years running? Meanwhile ALO.to just told the world how bad its financial situation is, even with U$1,500/oz gold. Highly doubt Rule has assumed he'll get 80c for his 1.22m ALO.to shares in 121 days' time. 

Key Terms of the Facility are:
  • Principal Amount of $15 million;
  • Maturity date of October 31, 2022;
  • Interest rate of 8% plus the greater of LIBOR and 2%;
  • Amortization of the Facility in eight equal quarterly payments commencing January 31, 2021;
In conjunction with closing of the Loan Facility, Alio Gold has issued 1,286,228 shares to Sprott.

Alexco Resource Corp (AXU) 3q19 financials and another delay to the water permit

This is your carefully curated news release excerpt:
The Company is in the final steps of renewing the Water Use Licence ("WUL") with a Technical Pre-Hearing Conference scheduled for early December 2019. Following this process step, the final issuance of the WUL renewal will be subject to consideration by the Yukon Water Board and will likely extend into Q1 2020.

Whole thing here.

(Disclosure: long term long here, too. As per today's close, small profit on trade. Not selling anytime yet, either)

Integra Resources (ITR.v) and a Coeur placement and a bought deal

This is an excellent deal for Integra Resources (ITR.v) and raises my fawning fanboy bromance admiration for George Salamis, ITR's dashingly handsome CEO, one notch higher. It's like being a competent club player and watching a chess grandmaster, after a while you get a feel for how many moves ahead of you he thinks.

VANCOUVER, British Columbia, Nov. 14, 2019 (GLOBE NEWSWIRE) -- Integra Resources Corp. (“Integra” or the “Company”) (TSX-V:ITR; OTCQX:IRRZF) is pleased to announce that it intends to raise C$21.6 million via a C$6.6 million non-brokered placement of common shares (the “Strategic Placement”) with Coeur Mining, Inc. (“Coeur”) (NYSE:CDE) at a price of C$1.15 per Strategic Placement Common Share, and a concurrent C$15.0 million bought deal public offering (the “Public Offering”) of common shares (the “Public Offering Common Shares”) of the Company at a price of C$1.15 per Public Offering Common Share (the “Issue Price”).
C$6.6 Million Strategic Placement with Coeur
The Strategic Placement with Coeur will consist of the issuance of C$6.6 million in common shares at a price of C$1.15 per share on a private placement basis. The common shares issued in the Strategic Placement will be subject to a four month hold period from the date of issue. In connection with the investment, Coeur and Integra will enter into an Investor Rights Agreement which will grant to Coeur the following:
  • Participation rights to maintain pro rata share ownership interest for a two-year period;
  • The right to appoint two members to a newly created five person Technical Committee, which will be established to review ongoing exploration and pre-development activities on the DeLamar Project and other mineral properties that may be acquired in the future, so long as Coeur continues to hold at least 3% of Integra’s share capital.
C$15.0 Million Bought Deal Public Offering
Raymond James Ltd. is acting as lead underwriter and sole bookrunner under the Public Offering on behalf of continues here


Disclosure: I am long ITR, nicely in the green on the trade so far (thanks for asking), not selling anytime soon no matter what happens in 2019.

The Art of Promoting Mining Projects

Do you remember the days of Internet 1.0 when we used to send "electronic mails" (sometimes known as "e-mails") to each other? And how we'd stuff inboxes full of funny photos, jokes and silly things via mail groups? 

In order to bring some cheer to your author's day, a friend sent over the piece seen below that he's had stored on his hard drive for about a decade. I'm sure plenty of you have seen it before, but as it's new to me and made me laugh it's going up here. If anyone has a link to an original source I'll be happy to add it, not claiming this as original at all. Rule 20 is spot on, by the way.



THE ART OF PROMOTING MINING PROJECTS
The art of promoting mining projects has a long and undistinguished history. It started with Jason and the argonauts (the fleece was placed in a sluice to trap small particles of gold in streams) carried on by Cecil Rhodes and probably reached its peak with Bre–X in Indonesia.
It can of course be quickly converted to promoting technology or biotech shares by deleting all geological references and replacing them with various technical words from the electronics or genomics industries.
Rule Number 1
Make frequent press releases. The stock will move on what is called “news flow”. Any time someone flies out to the exploration area, or peers down a microscope, tell the world. This is because every shareholder knows in their bones that they shouldn't really be holding this stock. However, constant reassurances by a portly Chairman are known to deter investors from selling.
Rule Number 2
When presenting on TV or to a massed group always take a large piece of rock or drill core and wave it around imperiously. Tell the audience that it is a very rare piece of vermiculated pyroxene gabbro. Don't let anyone touch it and never explain where it came from. Let them make the assumption that as you are holding the rock and you are talking about the company that the two are connected. The fact that it came from your garden is not relevant here.
Rule No 3:
Announce loudly that you are exploring/drilling/flying over immediately adjacent to a property where a large and more famous company is working. The geology may be totally different but few mug punters know the difference between geology and geography and this technique can work surprisingly well in giving your property an undeserved aura of credibility.
Rule No 4.
Make grand claims about how much gold, platinum, copper etc was produced in historical times by the Romans, Greeks, Egyptians, Incas, Chinese and so on. Make it clear that those bozos could never have got it all out and there is still plenty left for everyone.
Rule No 5
Always include lots of pretty coloured geological maps in the annual report and presentations. For maximum effect draw lots of big bold lines and circles on them and call them trends. This impresses the hell out of people. Big maps in TV studios, or on small tables, are particularly effective as it implies the project is so large that it can't fit on a small map. Hopefully, no one will ask why you didn't bring a 1:500,000 scale map and not a 1:5,000 scale.
Rule No 6
Photographs in the annual report of gold antiquities from the local museum add a totally spurious, but very persuasive layer of intellectual credibility to the project.
Rule No 7
Always show photographs of planes and helicopters in the annual report. I don't know why, but everyone does.
Rule No 8
Never show a photograph of a donkey in the annual report. This has associations with crooks form the American Wild West which is far too close to the truth.
Rule No 9
Always show photographs of happy smiling natives. This gives the project a patina of benevolent third world development even if it is only the local mayor who will get rich.
Rule No 10
Make all press releases highly technical with lots of long words and talk of drill hole numbers, intersections, grades and rock types. Do not include anything useful that could be used by anyone to make a proper analysis of the data.
Rule No 11
Keep press releases firmly dedicated to technical issues. Never talk about detailed finances.
Rule No 12
When talking about financial projections always talk about the project as a whole. Don't remind investors that their company only owns 15% of it.
Rule No 13
Financial projections are based on the most optimistic metal prices you can find. But always label them “conservative”
Rule No 14
All projections should be based on 100% extraction of the ore, and no losses of metal in the mill, smelter, refinery or your trouser pocket.
Rule No 15
Remind investors that you are using the latest computer technology. They will assume that everyone else is using slide rules and haven't discovered PC based 3D modelling yet.
Rule No 16
A good trick is to suggest that you have some technology up your sleeve that no one else has. The most plausible ones promise better recoveries or the ability to find metal that no one else can. The name of the technology should include some or all of these words: pyro, hydro, metallic, orthogonal, bio, techno, leach, molecular, sulphidic, oxide and bacterial. The word order is not important.
Rule No 17
The board should include a couple of university lecturers or, even better, a Professor. They will be delighted to fly business class and have people listen to them while they talk about archean orogenies. The presence of academics is proven to increase the fund raising power of these companies by several times. Because academic pay is so low the non-exec compensation can be kept at a modest level.
Rule No 18
On no account actually find anything or even worse, go into production. That removes all the upside potential of the company at a stroke.
Rule No 19
Never forget that of the object of the company is to raise money for the benefit of the directors. It is not the aim of the company to find anything. That makes life far too complicated and the management might have to manage something.
Rule No 20
Always find some newspaper pundit or internet tipster to back your cause to the hilt. This can be done by flying them out business class to the drill site, putting them up in a five star hotel, showing them a few rocks, and giving them a few free shares.



11/13/19

This blog will be quiet for a couple of days...

...for secret reasons.

Well in fact the blog has been quiet for the last couple of months, on and off. That's been a deliberate thing, long-story-short it's me wondering just how much of IKN can be shifted to Twitter and doing an experiment or two. That's now over and you can now expect a return to a more regular posting rhythm this humble corner of cyberspace, as soon as this secret reasons quiet thing is over. Which is in fact a trip to Mako Mining (MKO.v) in Nicaragua and the report on the gig will be out on Sunday in IKN 547. There we go, not so secret any longer.

11/12/19

Maybe Zara Boldt should have kept her mouth shut

Zara Boldt, CFO of Lucara Diamond Corp, in the NR of November 4th 2019:

"Lucara is weathering the current downturn in the diamond market better than most of our peers."


A ten day comparative price chart for LUC.to, using the SPX as guide:

And in the next post, your author will have a good rant while explaining why LUC has fallen off yet another cliff. A drop it fully deserves, by the way.

11/11/19

Interesting that Lundin Gold (LUG.to) is selling off again...

...in the very week that it gets the official inauguration from the government of Ecuador, all pomp and ceremony ribbon cutting, to be sure.


we will remember

We are the Dead. Short days ago
We lived, felt dawn, saw sunset glow,
Loved and were loved, and now we lie
In Flanders fields.

11/10/19

The IKN Weekly, out now

FACT!

IKN546 has just been sent to subscribers. Just thought I'd let you know.

Bolivia and the OAS report UPDATED

Bolivia is a fun place this weekend for sure, but the reason why Evo Morales has capitulated and agreed to new Presidential elections in Bolivia isn't directly due to the street scenes of yesterday and more about the preliminary findings of Organization of American States (OAS) report on the election that was published early this morning. Here's the moneyline (translated):
“Taking into account the statistical projections, it is possible that the candidate Morales has finished in first place and the candidate Mesa in second. However, it is statistically improbable that Morales has obtained the 10% difference in order to avoid a second round.”

In other words, Evo cheated and has been caught as close to red-handed as our complex electronic world lets us get.

UPDATE Sunday afternoon: Evo Morales has just announced that he will resign as President.

11/9/19

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

....(and yes it's been a while since this weekend feature it's just that it's the first week in six or so that I've posted enough to have a reasonable choice) in reverse order:

.
Third Place: "Garibaldi (GGI.v): "Pssst! We think we've found the feeder system!"". The best executed Canadian scam of the last five years.

Second Place: "Mailbag on First Majestic (AG) (FR.to)". Math is fun!
.
First Place: "McEwen Mining (MUX): Puppet Show and Spinal Tap part deux". MUX has always been more sizzle than steak. More people are working that out now.

11/8/19

Philip Pascall of First Quantum (FM.to) featured in the ex-President Carlos Varela "Varelaleaks" scandal

Ah, the Friday evening long title. Anyway, see below screenshots of the whatsapp convo between then Panamanian President Carlos Varela of Panama and chair, joint founder and CEO of First Quantum (FM.to) Philip Pascall, published as part of the Varelaleaks whistleblowing currently rocking Panama's political boat (which you can find under the appropriate number on the scroll list on the left of this page, about a third of the way down).
 
 




The date-stamps on those messages are more than amusing, it's as if he knew in adva....nah! Many thanks to my friend for the heads-up.

The Friday OT: deadmau5; luxuria (ov) [Tinlicker Remix]

This is just so beautiful. That's all I've got, words are superfluous, this man makes such majestic, souch-touhing music that you just need to discover it for yourself.





Youtube here

Mailbag on First Majestic (AG) (FR.to)

Mailbag of the day is from Reader E, who likes playing with numbers as much as I do. He's quick to point out that this is the most basic of calculations and does not include items such as tax, investments, exploration etc. Also, he's being very generous to FR by leaving the production un-discounted, at NPV-5% it wouldn't even make U$600m. But as a ballpark, it does indeed shine a light on the prices people are willing to pay to have something with the word 'silver' in its corporate title.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

In regards to first majestic (AG), I actually made a funny calculation that exposes the craziness:

1) Let's take all of the measured and indicated silver resources of the company (reserves included of course), from their own website (gold is included in AISC already so we ignore).
2) Now, let's assume that their AISC numbers (which include the gold) really reflect the cost of taking those ounces of the ground, 
3) and let's just assume that they somehow succeed in producing all of their silver and gold in just one day and sell it immediately. 

the value we get:
M&I silver ounces: 150M 
AISC: $10/oz

So at a silver price of $17/oz, and AISC of $10/oz.... we get a value of 150,000,000 ounces X $7 = $1.05B  (remember, I'm not using NPV5 here, this is just cash flow, for a company that's traded for $2B).

The Bluestone (BSR.to) CAD$475,000 pump

On September 17th, an outfit called Gold Investor published a 16 page promotional report on Bluestone Resources (BSR.to), both on PDF and in glossy physical copies with a professionally shot front cover of the CEO dramatically entitled "The Gold Getter". Bluestone paid CAD$475,000 for the promo. Here's a price chart:



Another idiot CEO with more ego than brains.

UPDATE: A kind reader offers a link to the C$475k pumpo