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2/2/19

Economic Alpha does Kirkland Lake (KL)

Luis over at Economic Alpha has followed and covered Kirkland Lake's rise to precious metals mining stardom in impeccable style over the last couple of years and in this post today, gives us an update on what he thinks happens next and what to do about it. It reminded me of that famous Jesse Livermore quote, so I went off into interwebnetpipesworld and found the extended version:

"After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. I've known many traders who were right at exactly the right time, and began buying or selling stocks when prices were at the very level that should show the greatest profit. And their experience invariably matched mine. That is, they made no real money out of it. Traders who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make the big money."


2/1/19

The Friday OT: Soundgarden; Spoonman

It's been a wonderful earworm all week here in IKN Nerve Centre. Now it's your turn.




Youtube here. Lordy lord, I love this song.



Eldorado Gold (EGO) (ELD.to): Let the class action lawsuits begin

Clownshows like this are why nobody trusts mining companies.

June 27th, 2017, ELD tells us that the Kisladag heap leach operation isn't working the way it should. Stock drops.

October 23rd 2017, ELD tells us that it really isn't working very well at all. Stock drops.

October 25th 2018, ELD board approves a $500m+ capex project to add a mill to Kisladag. Another leg down.

January 30th 2019: ELD now tells us that Kisladag is fine, no $500m mill required, it'll just carry on as a working heap leach operation, recovery issues fixed. 

This price chart screams class action suit.


What utter craziness, the contempt shown by these idiots in charge at ELD for their shareholders is beyond belief.




1/31/19

AngloGold at Quebradona, Colombia

Kind of surprised that the news about AngloGold Ashanti being told to suspend all activities at its Quebradona project in Colombia (long story short, 11Bn lbs Cu at 0.6% and a robust economic mine plan) hasn't made more headlines. In effect, Quebradona is AngloGold's last big project in Colombia and all it has left after implementing a country strategy over the last couple of decades that will surely go down in history as one of the worst ever devised by a mining company. 

  • Dive in, stake off massive swathes of the country (they controlled concessions covering nearly 20% of all Colombia at one point) where anything looked remotely interesting (thereby choking off the country to others, fast growth potential stopped).
  • Consider it your God given right to land held by generations of Colombians, treat locals with off-scale arrogance.
  • Show complete non-understanding of political system, refusing to deal with any municipal or regional government, dealing instead with subservient national governments that wouldn't hesitate in offering your every whim despite not having a clue about what's going on locally.
  • Gradually realize the grave mistake when locals show that protests and regional election votes actaully mean something in Colombia. Try to roll back image and become touchy-feely but fail miserably because a) years of the arrogant Anglo cannot be erased and b) the new corporate sincerity is only skin-deep anyway.

Lose La Colosa. Driven out of other projects. And now Quebradona is teetering on the brink, which would mean 20 years of massive, multi-billion dollar programs come up with plain fat zero. Mind you, the way Colombia has turned out to be a perma-fubar place for the mining industry didn't help much.


Silver looking interesting

Yes, this is me writing, the blog hasn't been taken over by space aliens or creatures even weirder, i.e. silverbugs. My disdain for the silver permabulls and the logic of ownership of the Jekyll and Hyde metal is recorded in umpteen posts, but there's no denying...


...that silver is finally catching a bid. And frankly I'm happy about that, because I own shares in a silver miner. None of those Mexico junior stupidities, however, this one is a real deal company.

1/30/19

Regulus Rocks

Chalcopyrite with bornite, I am told.



 From the REG.v Roundup stand.

Speculating in exploration stage mining companies is difficult

Vendetta Mining (VTT.v):


One I've followed without owning (fear not, I make mistakes just as bad or even worse) all the way along this chart. Thing is, at every stage there was good and logical reasons for those bought in and holding to keep holding on longer. Even to add. Yes, even this week.

This is junior mining. Sometimes you lose. The way it is.

And news release of the day is...

...this one from Cordoba Minerals (CDB.v). Hands down. It starts like this:


On June 26, 2018, the Company terminated the employment contract of Ms. Claudia Herrera, the former President of the Company’s Colombian subsidiary, Minerales Cordoba S.A.S (“Minerales”). Following her termination, new management of Minerales discovered a number of financial irregularities, and suspected misappropriated payments and other transactions in Colombia which were completed while Ms. Herrera was the President. Cordoba commenced a review of these transactions, and as a result, it was also discovered that other members of the former Colombian management of Minerales were involved in the transactions as well.

It continues too, all wonderful stuff, and this is of cours  the very same Claudia Herrera featured in the IKN posts of 2018 entitled...



...so one has to wonder just how farking stupid CDB management were to let this person into their management structure. Not only that, but even after she was arrested on money laundering charges in April 2018, allowed to remain one of the high management in CDB until June 26th (and Lordy Lord only knows what havoc she could have wreaked in the meantime). On that subject, it's notable that the NR commentary is left to Eric Finlayson, President of High Power Exploration (and when he used the word 'unfortunate' I nearly spat my coffee out) rather than CDB CEO Mario Stifano, who must be sitting in the naughty corner this morning.

Defining 'goldbug'

1) will look at this chart



2) will swear blind gold is being suppressed

1/29/19

Macquarie on zinc: "Stubborn"

An interesting read, right here. General agreement from this humble corner of cyberspace.

The rampant corruption inside Pan American Silver (PAAS) Peru

A fascinating report out of the regional news site Cajabamba Peru yesterday, showing the type of corruption that's rife inside the Pan American Silver (PAAS) operations in Peru. The case has come to light because of the recent takeover of Tahoe Resources by PAAS, as the central figure in the corruption, one Christian Dávila Grados, was brought into the ex-TAHO operations from another mine and immediately went about cutting large slices of pie for his friends and family. When this came to the attention of locals in and around the La Arnea and Shahuindo mines and they found out that truly local companies (the people that should benefit) were being cold-shouldered and contracts awarded to Dávila's chosen few, we on the outside finally get to see what must be rife inside PAAS (and perhaps for many years). Examples of the contracts include:
  • Dávila awarded a juicy managerial post at the Shahuindo mine to a personal schoolfriend from another region, instead of the post going to a Cajabamba local.
  • The company of another of his school friends, mysteriously won a U$600,000 services contract with Shahuindo for this year. To celebrate, Dávila and his friend went to Las Vegas (and the report link has great photos of them all at the gaming tables, smiling away). 
  • Despite having no relevant qualifications, Dávila awarded the job of Residual Water Treatment Assistant in the La Arena mine to his brother.
  • Another schoolfriend of Dávila's, who has already been found guilty of benefitting from a corrupt contract at another mine (the "El Brocal" mine for a U$400,000 services contract, and strangely at a time when Dávila was also working at that mine), has made it to the final round of another tendering process that is due to close in the next couple of days.

All this and more. Also, we hear that the investigative reporter behind the report is about to publish a series on the extent of pollution issues that have come from the Shahuindo mine in particular. If this is how PAAS goes about its ops in Peru, the people living locally around La Arena and Shahuindo who welcomed the news of the abysmally run Tahoe Resources may find themselves out of the frying pan and into the fire. How long has PAAS been a paradise of slush money for the chosen few? Hopefully we get to find out soon.

Another good thing that has just happened with gold

GLD inventories have broken back above 800 metric tonnes:


No more fakey moves, no more mere reliance on Chindia or that stupid dumbass "love trade" spiel that permabulls spew at you. This is real buying from real investment money.

Has INV Metals (INV.to) told you about the officially sanctioned referendum...

...that happens in its zone of Ecuador on March 24th? The one that could see its operations permanently prohibited? The one in which over 15,000 locals will be asked as part of an officially sanctioned and legally binding vote the question, "¿Está usted de acuerdo que se realicen actividades mineras en los páramos y fuentes de agua del sistema hidrológico Quimsacocha?". Translation, "Do you agree that mining activities take place in the páramos and the sources of water of the Quimsacocha hydrological system?":


Oh, it hasn't, you say? Now there's a surprise!

Now, I wonder why Candace is so shy about this subject in front of her shareholders...hmmmmm...let me think...

Gold breaks U$1,300/oz

And we are all geniuses.




 For at least a day.

1/28/19

Rat leaves sinking ship

Pedro Grados, the piece of shit in cahoots with Jaime Pinto who has done everything in his power to steal the Ollachea project from Minera IRL (MIRL.cse), has just been fired as head of COFIDE.

Their grand deception will now unravel. Long-suffering shareholders of IRL, your 2019 will be better than your 2018.

IAMGOLD (IAG) (IMG.to) and that M&A rumour of last week

Remember this short post of last week, the persistent rumour picked up by this desk that IAMGOLD (IAG) (IMG.to) and Kinross (KGC) (K.to) are in merger talks? 

And now this news today, all of a sudden IMG is deferring on Coté Lake? That the thing is a dog of tremendous proportions and over-hyped by the company for years is not the issue, the thing that's screaming at me here is the timing. Pimp that deal.

1/27/19

The IKN Weekly, out now



IKN505 has just been sent to subscribers. Another pathetic waste of bandwidth, I don't know why you bother reading this junk.