start here

start here

The Daily IKN email digest, get all daily posts sent to you next day (& no ads)

I say things on Twitter

1/12/19

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

...in reverse order (and the first edition of 2019, Christmas period was too light to fight):
.
Third Place: "That Stockwatch piece on Palisade". Good to see more corners of the interwebnetpipes shining light on this company, a purveyor of finest snake oil. Be in no doubt, if a company hires them they are either plug dumb stupid, or in cahoots with this shell game.

Second Place: "The BCSC is not the solution for Canada's capital markets, it is part of the problem". A shame on Canada and the single most effective enabler of white collar crime in the country.
.
First Place: "Pretium (PVG) is an illegal, fraudulent operation...", that made it to #1 on its own steam and also via getting linked in this later post, a development that clearly implies PVG knows full well that illegal fraudulent activities are going on within its walls. However once again the cry goes out, where are the regulatory authorities?

More BridgeMark Group light: The news release from New Point Exploration (NP.cse) last night

Check this link out, (or find it on the right of NP's CSE page) quite an eye-opener on how the BridgeMark scam operated on this company. As well as names, dates and a dry chronology of director resignations, the short intro paragraph has this:

On July 6, 2018, the Company originally filed a financing at $0.25 per unit and raised $1,668,250. On July 25, 2018, as result of market conditions, the Company lowered the financing price to $0.125 per unit and closed on $4,651,000 on August 9, 2018, issuing 37,208,000 shares to the various subscribers.
 
Subsequent to the financing, the Company entered into consulting agreements with 16 different consulting firms from across North America and Europe totaling $4,226,979.

Run that again?

1) Company announces financing. Gets no take-up
2) Company drops financing. Suddenly, 2.5X more interest from a whole bunch of players with chequebooks at the ready.
3) On closing, company hands back 90% of that cash to a long list of consultants.

Get the picture yet, or do I need a blackboard and some chalk? This weekend, NP.cse is a 2.5c stock.

1/11/19

Sandspring Resources (SSP.v) is the next bullshit pump from proven liar Daniel Ameduri

Sandspring (SSP.v) has just filed this one SEDAR. Your late Friday evening NR vignette du jour:

The Company has entered into an arm’s length investor relations agreement (the “IR Agreement”) with Future Money Trends, LLC and affiliates (“FMT”) a limited liability company existing under the laws of the State of Texas with an office at 1102 S. Austin Ave, #110-283, Georgetown, Texas, USA. FMT is headed by Kenneth Ameduri, a media investor relations specialist in the natural resources sector. To the knowledge of the Company, neither FMT nor it’s principals own any securities of Sandspring. The IR Agreement is for an initial term of 90 days at an aggregate cost of US$300,000 to provide financial publishing and digital marketing services to then Company. Pursuant to the IR Agreement, FMT will raise public awareness of the Company (including its social media presence) and will promote the Company’s business.

Frank Giustra is up to his neck in this worthless paper, he'll be blowing out his shares when the suckers buy in.

The Friday OT: Leonard Bernstein on Beethoven's 'Ode To Joy'

When Leonard Bernstein looked straight at the camera and says this...

"...this music succeeds, even with those people for whom organized religion fails, because it conveys a spirit of Godhead  and sublimity in the freest and least doctrinaire  way that was typical of Beethoven. It has a purity and directness of communication that never becomes banal. It's accessible without being ordinary. This is the magic that no amount of talk can explain."

...I melted into a puddle of love and only then do we segue into the music, the real highlight. Oh my, what a chunk of Youtube.



Youtube here. Thank you to Brent Brickman and Jay Trenary for the heads-up.

Pretium (PVG) investigates itself

NR link here, short'n'sweet text below:

VANCOUVER, British Columbia, Jan. 10, 2019 (GLOBE NEWSWIRE) -- Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”) reports that it has retained independent legal counsel to initiate an investigation of unusual trading activity in its shares.  
About Pretivm

We had a good old discussion about this on Twitter yesterday evening and I don't really feel like going over it all again. Here I'll just say that this is a net positive. At the very least, it shows the willingness of PVG CEO to get to the bottom of the criminal activity in/around his company. It's also a damage control move, as PVG needs to regain credibility and trust. Finally, even if the third party investigation (which is likely to concentrate on the internal chain of custody of non-public material information) turns up nothing for future public consumption, it will at the very least strike fear into the source(s) of the leak and that alone should stop any further repeats. Nothing certain in this world however, let's see how things play out.

It's not even the most serious problem at PVG either. If I were long I'd be looking at the reserve ounce grade, looking at that 11.5g number this week and muttering WTF under my breath. But that, as Hammy Hamster said, is another story.

1/10/19

That Stockwatch piece on Palisade

We are of course referred to the note published on January 2nd as Part One of a three part series "Three promoters under 30". The main focus is Collin Kettell, who with his father is the majority owner of Palisade Global. This humble corner of cyberspace has been sent the note on several occasions by kind readers (I thank you all) but didn't really want to start re-printing large swathes of it because it's prop. mat. with most of it behind a paywall. However, it's very good indeed (if you haven't read it, please go over) and now that a few days have passed, I'm going to offer up just one of the segments because it has its own story to tell:

"Palisade has been hired for IR services by at least two dozen Canadian public companies. In 2013 it was charging $5,000 a month for its services, but now it is charging more than $15,000 a month. Palisade also has an investment portfolio that Collin estimates is worth about $50-million, and sounds like the miracle of loaves and fishes.
"It is a testament to Collin Kettell's and Mr. Zubick's negotiation skills that Palisade has been able to raise its IR fees over the years, despite not having a solid stock market success of which to boast."

The Stockwatch piece then goes on to list a whole bunch of apparent stock price failures, all of which decided to hire Palisade to help in their marketing. They nearly all have the same type of trade pattern too, suddenly lifting off on volume just after Palisade gets the job, then selling takes all the gains away and more.

So tell me, what sort of company would be happy to pay in order to hire a marketing company that can only manage to move your stock for a very limited amount of time before heavy selling kicks in? And what sort of company would be happy to pay $15,000 instead of merely $5,000 per month, knowing full well of the Palisade success rate by that time?

Integra Resources (ITR.v) and December

The moral of this story is...



...there are often buying opportunities in tax loss selling season. As for the nice pop in ITR share today, that's due to this NR. Good looking step-out hole and interesting to see that the market is feeling healthy enough to reward the stock for positive news. That wouldn't have happened two months ago, either.

Today


1/9/19

Pretium (PVG) is an illegal, fraudulent operation...

...as today has proven that to the satisfaction of anyone with a stock market brain. As noted this morning when PVG suddenly fell of a cliff on XXL volumes, "If this dump today turns out to be yet another leaky boat moment from PVG and Q4 production comes in weak, I don't see how we can ever trust this company again."

And sure enough, it was. And we cannot, because they perpetrated a fraud in front of our eyes. The 96,342oz production on poor average head grade missed the target, one that was reiterated mere weeks ago, by over 10k oz and if the playing field were level every penny of the drop we saw today would be in tomorrow's trading. But it's not, because this is Canada and the crooks behind this scheme can get away with murder. It's not as if it's the first time insiders have been tipped off on PVG results before the rest of us and piled into the market for the stock either, just two quarters ago we saw the same type of suspicious pre-announcement activity in the market and sure enough, the ones with the secret information were on the right side of the trade.

Now I know some of you out there will go "Yeah it sucks, leaky boat, it's the way it is" and leave it at that, but it's high time these scumbags stopped getting away with it. What we saw today in PVG is illegal insider trading, a criminal offence that should be investigated, the perps prosecuted and sent to jail. And what about all today's trades being rolled back, how about a little justice into this crooked game? As for PVG, as a repeat offender, it should have the book thrown at it by the Canadian regulatory authorities. If they start with the CEO (buck stops here and all that) and find out who inside PVG has been tipping their friends off. This fraud has cost retail investors (you and I) millions of dollars today and it's not as if those dollars have somehow disappeared into thin air, as for every party there's a counterparty and what you have lost, that one with the solid data in their hands six hours before the rest of us has won. 

Pretium (PVG) can no longer hide behind a "won't happen again, honest" defence because it HAS happened again, what's more on a much larger scale than before.

Finally!

On the BCSC Twitter page today:




FWIW, Vancouver residents should be automatically barred from applying.

A Pretium (PVG) thought

If this dump today...


...turns out to be yet another leaky boat moment from PVG and Q4 production comes in weak, I don't see how we can ever trust this company again. There would be no point in retail trying to play on a tilted playing field. We'll soon find out.

Fool me once, shame on you. Fool me twice, shame on me. Fool me three times, shame on me for using CEOca for investment advice.

UPDATE: No bottom to this move, it seems. Down another 2% since this went up, half an hour ago.

UPDATE 2 Post close: Well what a shocker. PVG posts a 4q18 production miss, 96,342oz. Why should we take these double-dealing jokers seriously any longer, when all they care about is tipping off their friends?

Gold boing boing

Gold in 2019:





1280 is telling us something.

1/8/19

The BCSC is not the solution for Canada's capital markets, it is part of the problem

We're back on the BridgeMark Group case, in which a whole bunch of scallywags and scoundrels have finally been collared for their nefarious activities. Of course it was first announced as a thing by the BCSC but as we subsequently learned, if it weren't for the US SEC getting on the BCSC's tush and telling them to to something about the single most corrupt capital market of all industrialized nations (or else), there would have been nothing. On pain of death, The BCSC has been dragged kicking and screaming by the US SEC into doing its job for the first time in forever and further to that line, today we have this news report (forwarded to IKN by the intrepid and highly esteemed tweeter IvanaBoastsky) which beggars belief. Your headline:
Convicted fraud artist at centre of crypto, cannabis shares scheme 
Aly Babu Mawji was jailed in Germany for a massive pump-and-dump scheme, but has returned to B.C.’s capital markets to allegedly help orchestrate another stock fraud operation

It turns out that one of the BridgeMark Group members, one Aly Babu Mawji, was convicted for serious securities fraud in another country and served significant jailtime, but met with zero problems when he decided to move back to his country of residence Canada and go for repeat performances on its stock market afterward. An extract:
When asked how it is possible for any person to commit securities fraud in Europe and subsequently engage in the B.C. market, the commission continued to state that it “does not discuss details of ongoing enforcement actions,” thus offering no assurances there was cross-jurisdictional regulatory and enforcement oversight in this instance.
Mawji also now stands accused by the BCSC of being one of the more prominent players in a scheme involving BridgeMark, based on the volume of shares he purchased.

The BCSC should hang its head in shame. These people are facilitating massive fraud by their non-action (while making all sorts of fuss if a mining company commits the heinous crime of writing "ore" instead of "mineral"). Perhaps the people who run the lamest regulatory body in the world should stop frequenting the same country clubs and golf courses as the scumbag millionaires...

Juggernaut Exploration (JUGR.v): Utter BS grade-smearing

Check out the NR out of this bundle of promo pump joy this morning. Juggernaut Exploration (JUGR.v) starts in breathless style with its headline, "Juggernaut Drills New Gold Zone Grading 6.85 g/t Au Over 9.0 Metres on Midas", makes sure we get what they want us to understand in paragraph one...
"VANCOUVER, British Columbia, Jan. 08, 2019 (GLOBE NEWSWIRE) -- Juggernaut Exploration Ltd. (JUGR.V) (the “Company” or “Juggernaut”) is pleased to report the discovery of a new high-grade gold zone on its 100 % controlled Midas property, where diamond drill hole MD-18-08 intersected 6.85 g/t Au over 9.0 m between 35.0 and 44.0 meters downhole."

...then they even give us a cute variation on the classic "Hey, we think we know where the feeder is!" line and for good measure, add a pretty graphic to the gig. But when we get to the stuff they are required to put into NRs, it gets funny. Your table:


Turns out that 6.85g/t of gold over 9m is one of the most blatant and BS-laden examples of grade smearing we've had for a while (for those just joining us, grade smearing is NOT a good thing, a tactic done deliberately by shady juniors to make uneconomic rock look mineable). So if we run that through the handy-dandy Corebox/EI drill hole calculator...


...oh dear. Turns out that 1m of nice stuff is surrounded by 8m of 0.156g/t gold rock and there's a technical term for rock of this grade in the formal mining business: Waste. As for the term in the junior exploreco promotion business, there are several but I really do try to refrain from swearing on the blog these days.

When a junior exploreco runs grade smearing past you like this, the only good reason for doing so is their desire for you to fall for their bunkum. And when a junior does it to you once, you can bet dollars to donuts they'll do it again and again. Juggernaut Exploration, throw it on the very large "One Less To Worry About" pile.

UPDATE: I stand corrected by mailpal M:
"We have a better name for that rock, as waste is only when you do find a mine. It's called "leaverite":  leave 'er right there."

Prize Mining (PRZ.v) now under Cease Trade Order (UPDATED)

Michael McPhie, shame on you.

UPDATE: The NR is out. Go have a look, but while you do please keep in mind the IKN First Law of Mining News Releases:
 "The IKN First Law of Mining News Releases: Considering that anything contained in a mining news release is presented in the best possible way for the company in question, any piece of information contained in a NR that comes across in any way negative means the real news and/or events behind it must be very, very bad indeed."

PS: By the way, CEO Michael McPhie is scheduled to appear before the Alberta Securities Commission on the charges brought by the ASC against PRZ.v next Monday, January 14th. He can run but he cannot hide.

1/7/19

IDM Mining (IDM.v) and Ascot Resources (AOT.v) UPDATED

There are an awful lot of losers on this chart, even if you play it generous and assume that the 8.6c all-share deal from AOT that dilutes the company by 16.7% doesn't drag its own price lower as soon as it comes out of halt:


VANCOUVER, Jan. 7, 2019 /CNW/ - IDM Mining Ltd. (TSX-V:IDM) (OTCQB: IDMMF)("IDM" or the "Company") and Ascot Resources Ltd. (TSX.V:AOT, OTCQX:AOTVF) ("Ascot") are pleased to announce that they have entered into a definitive arrangement agreement (the "Definitive Agreement") pursuant to which Ascot will acquire all of the issued and outstanding common shares of IDM (the "Transaction"). Each IDM shareholder will be entitled to receive 0.0675 of a common share of Ascot for each share of IDM held (the "Consideration"). The Transaction will consolidate Ascot's Premier Gold project ("Premier") and IDM's Red Mountain project ("Red Mountain"), to create the leading high-grade gold development and exploration company in northwestern British Columbia's Golden Triangle. The combined entity will benefit from numerous operational and development synergies.
The Consideration values IDM at approximately C$0.086 per share, representing a premium of approximately 54% to IDM shareholders based on the trailing 20-day volume weighted average price of each company as of the close of trading on January 4, 2019.  Upon completion of the Transaction, it is expected that IDM shareholders will hold approximately 16.7% of Ascot shares on an outstanding basis.


Continues here.

UPDATE: Not everyone is such a big loser, of course:



 

Continental Gold (CNL.to): Probably nothing...

NR here:

TORONTO, Jan. 7, 2019 /CNW/ - Continental Gold Inc. (TSX:CNL; OTCQX:CGOOF) ("Continental" or the "Company") reports that James Gallagher has announced his decision to resign from the Company's Board of Directors effective January 8, 2019, in order to better focus on the increasing priorities of his other professional duties. Mr. Gallagher has been a member of the Board since January 2017.

After all, who needs $50,000 a year to turn up on a few director conference calls anyway? And his $4.31 options are so far out the money it hardly matters to hand them back.

China and gold reserves

This story is doing the rounds this morning and you're likely to see it in several different places. You see it here now, too:
(Bloomberg) -- After a hiatus of more than two years, China is adding to its gold reserves again.
The People’s Bank of China increased holdings to 59.56 million ounces by the end of December, or about 1,853 metric tons, from 59.24 million ounces previously, according to data on the central bank’s website. They had been unchanged since about 130,000 ounces were added in October 2016.

Continues here. And the chart:





1/6/19

The IKN Weekly, out now


Do like a good belt buckle


IKN502 has just been sent to subscribers. And I'm tired and my leg hurts, I'm going to bed. Goodnight.

Catching up with Lucara Diamond Corp (LUC.to)

The last time we noted the price moves in Lucara Diamond Corp (LUC.to), it was late November and the stock had just broken the $2.00 line to the downside. As the post pointed out, that was important because the defence of that line was all about avoiding wholesale liquidations. And sure enough...


...the stock pumped by that arch-scoundrel Marin Katusa all last year has dived down to $1.44 in the last eight weeks, all while most other mining stocks have been in (a long-overdue) recovery mode. For experts in the diamond sector it was clear from the start that Katusa didn't know what the hell he was talking about, either.

And let us not forget that the performance you see in the chart above won the LUC.to CEO, Eira Thomas, the Mines & Money 2018 "Outstanding Achievement for a Woman in Mining" award. Way to go Eira, if the stock only goes down by 20% this year you'll be a lock for the 2019 gong.