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2/23/19

Bloomberg: "Acid Spill on Vehicles Near Glencore Mine Kills 18 People"

Even by the standards of accidents and stories of mortality that are an unfortunate but unavoidable part of the mining sector, this report is particularly horrible. Presented with no further comment, full report here (and we can expect updates on that link).

At least 18 people died when a truck transporting sulphuric acid to a mine owned by Glencore Plc in the Democratic Republic of Congo crashed and spilled its contents onto two vehicles, a provincial health minister said.
The tanker was heading to the Mutanda Mine, a copper and cobalt operation near Kolwezi in the southeast of the country, Lualaba province Health Minister Samy Kayombo Mukanza said. Nine people are also injured, he said.
“The acid was sprayed over people and vehicles,” Jean-Marie Tshizainga, mines minister for the province, said.

2/22/19

The Friday OT: Fatboy Slim; Rockafeller Skank

Memories of hearing this the first time, thinking "WTF WAS THAT?" but knowing you're hooked at the same time (one of those you need to hear again, and immediately). These days Norman Cook and this song are part of the world sound background, but don't forget the innovation in this track at the time. Also, for some reason or another, I've had a Fatboy Slim 'best of' compilation on my Spotify all week, which is why you get a slice today.



The vid is great, too. Youtube here.

Dear Superior Gold (SGI.v): Buy a freakin' dictionary

The last time we heard from Superior Gold (SGI.v) was on February 5th when they announced their 4q18 production numbers. During that NR they also wrote this:
"The Company will announce its full year production and cost guidance by mid-February"
Mid-February. As in "Mid". As in "middle". As in twenty-eight divided by two equals fourteen. You don't make the exact mid-point well fine, but today is the 22nd day of 28, we still haven't heard anything from you and unless you're about to spring a nasty post-Friday-close NR on us, we're now staring Monday February 25th in the face. If you hadn't dicked us around before we'd be more forgiving, but the constant mushroom politics we get from you guys is freakin' annoying.

Buy a dictionary. Learn what words mean. Use them properly. Treat your shareholders with more respect. Assholes.

Further to yesterday's post on Lucara (LUC.to), IKN would like to apologize...




You may remember Marin Katusa's pump of LUC.to last year, too. We're coming up to the anniversary of that one, so don't just take my word for it. Why not ask those who bought in at $2.50 and above on his call what they think of the stock? year

Barrick (GOLD) confirms speculation on a Newmont (NEM) bid

NR just hit, here ya go:

Barrick Comments on Media Speculation


TORONTO, Feb. 22, 2019 (GLOBE NEWSWIRE) -- Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today confirmed that the Company has reviewed the opportunity to merge with Newmont Mining Corporation in an all-share nil premium transaction. No decision has been taken at this time.
Enquiries:Investor & media relationsKathy du Plessis
Email: barrick@dpapr.com
Website: www.barrick.com

PS: Want my dos centavitos? If I were Mark Bristow, I'd be doing what I could to point out the weaknesses in my main rival for the top spot while bolstering my own company. In this case, by telling people ABX is studying a zero premium offer for NEM he's saying that NEM's buyout of Goldcorpse has brought weakness rather than strength to NEM. Just by floating this idea (and just after GG impaired its book bigtime in order to fit into the NEM offer price), he's telling the world "hey look at how crap the NEM/GG deal is! Haaa haaaa, you people controlling the big insto money should flip over to Barrick now, before it's too late!".

In other words, this whole story is a smokescreen, part of the mindgames played at the top table. Bristow has just insulted Goldberg's business acumen. Grab some popcorn, it's BMO Miami next week.

Trey Reik's 2019 Top Ten list

You can find your copy right here, thanks to Gary at Biiwii. I got mine in the mail yesterday and as always, when a Trey Reik note hits my inbox read it immediately. This humble corner of cyberspace recommends you do the same, Trey is one of the smartest and most insightful commentators on gold out there and this extensive, annual-type report is a tour de force.

More utter crap from Garibaldi (GGI.v)

Right here. A squillion words on a 4.8m cut (yes guys, we know there's a small pod of hi-S in there, in fact we knew that 20 years ago). Count up the unnecessary spin hype adjectives yourself (I got bored) and wonder just why they still haven't released the other 13 holes in the campaign despite the majority of them being cut back in September (is five months a record?). 

Anyone who still believes this nonsense is either too thick to save, or making so much money on their Kirkland position that they don't care any more. That's you Eric, but this GGI clownshow is still making you look a little bit stupid.

2/21/19

Different views on Lucara Diamond Corp (LUC.to)

What Marin Katusa wants you to see:
HEY WOW LOOK AT THIS SHINY THINGS AND THEY ARE EXPENSIVE AND CLARA IS THE FUTURE AND IMPOSSIBLE TO COPY AND ISN'T IT WONDERFUL!
What IKN wants you to see:

That and the 4q18 net loss. And the inevitable upcoming capital raise (because it's now clear the Karowe capex isn't coming from op profits). And the obvious impairment these hoodwinking book-keepers are building into the carry (how can a fixed asset that loses money be valued higher every quarter?). We could continue, but the jokers who want you into this slowly sinking ship are betting on you never bothering to look at its financials. Anyway, enjoy that 2.5c dividend.

A new Top Pick recommendation

In IKN509, this weekend.

A hypothetical about Venezuela and the recent gold price action

Supposing a country with a very large but informal gold mining business and an urgent need for US Dollars suddenly stopped being able to supply large quantities of gold to a dollar rich country with a very strong demand for gold (particularly jewelry) from its citizens and people who go to visit the place.

Let's say, just for argument's sake, Venezuela and United Arab Emirates.

The sudden failure to sell gold wouldn't be the fault of the producer country either. More the way in which third parties (for right or wrong reasons) decide to play hardball geopolitics and close down the supply route of the informal gold (or illegal if you prefer, the vocab doesn't bother me) via its transit country.  Let's say, for example, The USA having a quiet word in the ear of Turkey.

That Venezuela can't shift its gold is neither here nor there to me (and frankly, if it hastens the demise of Maduro then so much the better) but that doesn't suddenly mean the UAE demand dissipates. Quite the contrary, all of a sudden it finds itself needing to fill a supply gap and in a hurry, too.

So let's say that the UAE rushes to its friends in the market and asks them to cover its unexpected gold supply shortfall with an order from the spot market. Then once the rush order is covered, things go back to normal. What would the result of that look like? Something like this, perhaps?


And all while the inventories of GLD remain unchanged on the gold move. And silver hardly budges an inch.

2/20/19

IAMGOLD (IAG) (IMG.to) and All-In Sustaining Costs magic

IAMGOLD (IMG.to) (IAG) reported its Q4 tonight and once again, we get to marvel about the way in which All-In Sustaining Costs (AISC) is used by the mining industry:

  • 4q18 average realized gold price: U$1,233/oz
  • 4q18 AISC per ounce sold:  U$1,123
  • Number of ounces sold: 220,000

So that means they make a U$24.2m* profit on the quarter, right?

Wrong. Because when real accounting rules are applied, IMG's gross profit ($17.1m) isn't even up at that level. So just forget about adjusted net earnings of NEGATIVE $16.1m or real bottom line net earnings NEGATIVE $34.8m. What's the point of having this supposed industry standard measurement when companies like this jokeshow of fakery just make shit up and massage their figures to Kingdom come? What's the point of even labelling a cost metric "All-In" when it's obviously nothing of the sort? Why do fools fall in love? And why is Steve Letwin still employed?


*220k X (1233-1123)

Chart of the day is...

...copper, weeklies:



Whisper it quietly.

Prize Mining (PRZ.v) sends mail

Mike McPhie of Prize Mining must have forgotten my mail address (he used to be keen on conversing with me) but no matter, the mail he sent out yesterday morning to dozens of anal ysts and newsletter writers found its way to IKN Nerve Centre quickly enough:



Certainly interesting to learn that, according to the company, it's all behind PRZ now. Maybe they'd like to tell the ASC that, what with those people still actively investigating the company. The fact remains that PRZ got caught with their pants down, accepting BridgeMark scam cash to run a bullshit pump and dump hype on the market. That the CEO in charge of the company at the time is still fronting it is all the reason you'll ever need for not trusting this band of thieves ever again.

2/19/19

Argentina's inflation is now threatening to spin out of control

Buried at the back of a big datadrop today is a report out of Argentina's stats office INDEC which shows annual producer price inflation running at 66.9%. Here's a chart of the PPI index (December 2015 marked at 100) from the INDEC data today which shows the steep move the PPI has put in over the last 12 months:

Source: INDEC


What's worse, the move in PPI in mid to late 2018 is now showing up in retail indices, with foodstuffs inflation reportedly 2.8% in the last 15 days. Yes, that does say half a month, 2.8% inflation. Think about that, then think about what's in store for Macri's "pro-business" government in the Presidential elections are at the end of the year.

Prophecy Dev Corp (PCY.to): The excitement wore off quickly for Gerald Panneton

An extract from the news release dated October 10th 2018 that annoucned the arrival of Gerald Panneton as President, CEO and Director of Prophecy Development Corp (PCY.to):
Mr. Panneton commented that: “I am very excited to join the Prophecy team to work on the Gibellini vanadium project in Nevada. The Gibellini project represents an excellent opportunity to be developed in the very near future, as it stands to be a low-cost producer due to its very low strip ratio, and a low-cost heap leach operation in the mining friendly state of Nevada. I envision the Gibellini open pit project to have an excellent chance of expanding its resource base, in much the same way that I lead Detour Gold in exploring, financing and developing the Detour Lake project to become Canada's top gold mine with an annual gold production in excess of 500,000 oz today.”

Cut to the NR of today and...
VANCOUVER, BC / ACCESSWIRE / February 19, 2019 / Prophecy Development Corp. ("Prophecy" or the "Company") (TSX: PCY, OTCQX: PRPCF, Frankfurt: 1P2N) today announced that Gerald Panneton has resigned as the President & Chief Executive Officer and as a director of the Company effective February 15, 2019. The Company thanks Gerald for his service and wishes him the best in his future endeavours.
John Lee, Chairman and former Chief Executive Officer of the Company, has been appointed to serve as Interim President & Chief Executive Officer.
About Prophecy

Just 129 days from excitement to exit door...love is a fickle thing. Nothing at all to do with this, though:


Be careful out there, Chris

Being six feet seven inches tall isn't always an advantage. Makes you an easier target.

Vancouver, British Columbia--(Newsfile Corp. - February 19, 2019) - MAX RESOURCE CORP.  (TSXV: MXR) (OTC: MXROF) (FSE: M1D1) ("MAX" or the "Company") is pleased to announce the appointment of Dr. Chris Grainger to the MAX Advisory Board. Dr. Grainger resides in Medellin Colombia and has over 20 years of experience as a geologist with extensive experience in South America, including Colombia, specializing in grassroots and brownfields exploration, resource definition and development within a number of different commodities and diverse geological environments. Continues here.


Gold still failing to catch a bid on Wall St

Gold's up and doing nicely this year, but you wouldn't have known it by the way the world's biggest gold bullion ETF (by a long way), GLD, has been acting:

NB: Please note the cut down Y-axis; not trying to fool you, just making the data easier to read

Today's inventory tonnage (793.03mt) is the lowest in 2019. There's obviously a price driver to the metal, but it isn't the Wall St. jocks and some sudden love for the safe haven qualities of the monetary metal. Not yet, anyway.

Yamana (AUY) (YRI.to) has a problem

Only three things required here:

1) Brazil has just banned all upstream tailings dams and requires all current upstream dams to be decommissioned by 2021.
2) Yamana's (AUY) (YRI.to) Jacobina mine has an upstream dam.
3) See title.

Paging Marcelo Kim

This is probably why you're not on the board of Detour (DGC.to), Marcelo.



Either that or because everyone thinks you're an arrogant dickhead.

2/18/19

A 118 year old man

If I'm not mistaken, this would make Marcelino Abad Tolentino of Huánuco in Peru the world's oldest officially recognized human. Up to this week, he only had a birth certificate but now that he has been given an official Peruvian identity card (in order to receive pension and free healthcare), his age becomes A Thing. Read about it here.

The IKN Weekly, out now



Even though it's a stock photo it's irresistible, have to use it. 
Duke cigarettes are indeed the best


IKN508 has just been sent to subscribers. Total dross, don't even bother.