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8/16/19

Angry Geologist does copper

Right here.

The Friday OT: BT; The gathering darkness

Despite its pretentious title, the BT album "If the stars are eternal so are you and I" has been on repeat at this end of the pipe in recent weeks. One of those situations where you go back to a lesser played album by a fave artist and wonder why you didn't fall in love with it the first time around. Perhaps it was that album title, but judging a book by its cover is a bad thing. This is the last track on the album and is wonderful.



8/15/19

The Cobalt 27 KBLT.v change of control awards

Okay, the 4th person since yesterday just sent me this, let's get it out the way. This is the payments for change of control at Cobalt 27, as it's OPA'd by Pala:


Yes you are reading that right, for his two years at the helm after a) IPO'ing under Pala sponsorship b) suckering thousands into the cobalt pump c) watching the stock deflate then d) approving a takeover by Pala Investments at these new lows, CEO Anthony Milewski gets U$7.72m (and the others get theirs accordingly). But that's not all, Milewski has 840,000/RSUs which magically become C$3m in cash. He gets shares of the nickel spinco and gets to be its exec chair, too. Not to mention his salary for the two years of work, which after bonuses came to North of C$2m. All very nice I'm sure, but no matter where he goes or what he does, Anthony Milewski will always have "A Russian Oligarch Owns My Ass" tattooed on his forehead so fuck him, he's made his life choice and there ain't no going back now, Tony.



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Eira Thomas, the Mines And Money 2018 "Outstanding Achievement for a Woman in Mining" award winner

You remember that? We do. Meanwhile over at her outstanding achievement as CEO of Lucara Diamond Corp (LUC.to):



We did a lot on BS round Lucara last year, starting with that sneeringly self-serving Marin Katusa pumpjob just after Thomas's appointment as CEO, then things LUC didn't want Katusa's readers to hear about (we know them as "facts"), right to that $2.00 margin call that, when cracked, sunk the stock right on cue. Seems as though the best plan the Mines & Money 2018 Achievement Award winner's could come up with was to hire her promo pal to pump LUC to the masses on some cockamamie Clara innovation. While they were making all that noise, that chart tells you the people who can really do sums and math and things were taking full advantage of the fortunate and completely unexpected opportunity.

Oh and by the way check out who were the private owners of Clara when it was bought out by LUC. Interesting.





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Regulus (REG.v) does videos

An interesting initiative from Regulus Resources (REG.v), episode 1 of a series covering its AntaKori deposit, what the company is doing and what they hope to achieve at the project. 



Plenty of rock stuff to chew over. Youtube here.

RNC Minerals (RNX.to) 2q19 financials

Remember this one? The Beta Hunt mine and all that shiny gold specimen rock? Stick a fork in her, she's done:



Working cap deficit of $8m and even if they sell all the inventory at spot prices they only get to working cap neutral. 556.1m shares out at 51c, you gotta be mad to like this price. Going back to 20c.

The bit that Gran Colombia Gold (GCM.to) always forgets to tell you about

Beats me why it slips their minds every time. This does not include the $3.843m in finance costs, by the way:


That and the way they pay a fine to Colombia in order to dump raw waste water directly into the local river. Nice people.

8/14/19

A flash update has been sent to subscribers

Wednesday morning.

8/13/19

Exclusive: How Argentina's stock operators ripped off the market

To understand how a group of people in Argentina ripped off the Northern market players to the tune of many hundreds of millions of dollars, one must return to the action seen in Argentine stocks on Friday August 9th, last trading day before the PASO elections of the weekend. On that day and for no apparent official reason, the main MERVAL index jumped 7.94% on outsized volume and many of the stocks on the list made 10% and 20% improvements as a raft of new money came in from instos and funds from North America, Brazil and Europe.

They did so because they thought they were in the possession of super secret information, but as things turned out they were done in much the same way as the Duke Brothers in Trading Places. Our Ackroyd and Murphy this time were  a private consultancy company called Elypsis (of Argentina) and a Brazilian investment bank BTG Pactual (which is part of UBS, class action lawyers may be interested in knowing) who on Friday morning both published private voter intention polls that put sitting President Mauricio Macri in a stronger position than the final sets of official polls released before the blackout period, one week before. As a matter of fact, Elypsis put Macri on 38% and Alberto Fernández on 37%, while BTG Pactual put Macri on a three point advantage. As a result of these private polls, published at almost exactly the same time Friday morning Americas time to coincide with the opening of the market (not suspicious at all), traders piled into everything Argentina expecting a strong result from Macri that would place him in the box seat for the October first round election (with a view to getting the re-election nod in the November round two run-off).

However, and to literally translate one of my favourite dry humour Spanish sayings, "the reality is other". Sunday came, Argentina voted, Fernández beat Macri by 15 points and both the Elypsis and BTG Pactual polls were shown to be the tissue of fabrication and lies that they most definitely were. Traders who had bought the Merval like there was no tomorrow (and the big question is "from who?") were left strung out to dry, the Merval immediately dropped 10%  at which point its standard circuit breaker clicked in, then on re-opening the stampede for the door saw the Merval drop 48% on the day, the world's second largest ever one day market drop anywhere in the last 50 years. 

When rip-offs are this big and done this well, I am forced to sit back and applaud. The people behind the Elypsis and BTG Pactual polls have pulled off one of the biggest white collar crimes of all time, right in front of your noses and instead of it causing an international financial scandal, it takes a pissant blog in a dark corner of the interwebnetpipes to point it out to you all.


8/12/19

Mexico: President AMLO has a message for USA and Canadian mining companies (from IKN533)

Having seen this issue repeated erroneously on a few media channels today. This from The IKN Weekly IKN533, out last night. Cost creep comes to Mexico.

Mexico: President AMLO has a message for USA and Canadian mining companies
This weekend, while on a visit to the mining town of Concepción el Oro in Zacatecas State, Mexican President Andrés Manuel López Obrador had a few things to say to mining companies, especially those domiciled in The USA and Canada. The following quotes translated from this report (5):

Regarding new concessions
Our posture is that they maintain their (current) concessions, but we’re not going to keep Harding over new concessions for mining exploration because we’ve already given over a lot. They won’t finish exploiting the 80 million hectares of previously granted concessions in a thousand generations. Why so many? Because they get these concessions not to produce, but to speculate financially so what they have already is enough for production, if that’s the principal motive and not speculation.”

Regarding the environment
What we ask of the mining companies is that they care for the environment, that the companies act in the same way they do in other countries. If they are Canadian companies, they should apply the same rules they do in their own country so that they do not affect the environment or their territories.

Regarding Mexican mineworkers
“…they should pay mine workers well, pay the miners the same as they pay in Canada or United States. Why do they pay ten times less to Mexican mineworkers than they pay to those in Canada and The USA? They need to increase salaries for their workers.

Regarding community relations:
“…they should leave benefits wherever they operate mining. Four years ago, without exaggerating, we (his party) were the ones who got the mining companies to pay taxes when we were in opposition, because under Salinas they gave out tax breaks for mineral extraction. –that up to four years ago, as after a long struggle they started to pay taxes that would be used by the communities.”

You may agree or disagree, but this is the President of the country speaking and his words get repeated by many others.


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The IKN Weekly, out now




IKN533 has just been sent to subscribers. A sub-standard edition.

8/11/19

(Repeat post) Argentina: A flowchart on country risk for mining companies

First published on April 25th 2019, which means you had three and a half months to prepare. Don't say you were not warned.

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I've tried to make this as simple as possible, so that even people who subscribe to Casey Research, Louis James and Byron King can understand:



Further questions?