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8/30/19

The Friday OT: Foo Fighters; Summer's End

Not for the first year, it gets an airing this weekend:



Enjoy your Monday off. Youtube here.

8/29/19

We can track a few of the inside sellers at Belo Sun (BSX.to)...

...because CFO Ryan Ptolemy and VP Technical Services Joe Milbourne aren't part of the Stan Bharti inner circle den of thieves and have to do things the official way:



Pretty impressive, no? The first thing top management do when John Doody and Porter Scamsberry start their pump is to exercise their 12c options and dump them straight into the market. Birds of a feather.

8/28/19

Barrick (GOLD) and Newmont (NEM) over the last two months of the gold bull

When Newmont (NEM) completed its purchase of Goldcorpse it was the market cap leader by quite a distance and had at least $2Bn over Barrick in second spot. This morning Barrick is worth U$1.75Bn more than NEM and is the world's chip leader.


NEM is turning into a disaster, up 6% in the last two months when gold bullion is up over 9%!

8/27/19

A Flash update was sent to subscribers...

...this Tuesday evening. A trade.

Precious metals hedging: Just say no

Your humble scribe enjoyed an interesting conversation on the subject of hedging yesterday, on the back of this news out of Argonaut Gold (AR.to) yesterday:
TORONTO , Aug. 26, 2019 /CNW/ - Argonaut Gold Inc. (the "Company", "Argonaut" or "Argonaut Gold") (AR.TO) announces the Company has entered into a series of zero-cost collar option contracts, which were approved by the Board of Directors.  The contracts cover a total of 145,500 ounces of gold through mid-2022.  The floor price of the monthly gold collars has been set at $1,450 /oz with the ceiling price of the collars ranging from $1,630 /oz in the fourth quarter ("Q4") of 2019 to $1,760 /oz for the first half ("H1") of 2022.

It continues, with a head honcho who doth protest too much methinks as Prez/CEO Dougherty informed us of the corporate strategy and philosophy behind the decision to put on those "costless" collars (in speech marks because as we have noted previously, they are far from that) and bizarrely trying to compare the hedge with the whole of AR.to's resource base. The bottom line is that AR.to has hedged between 35% and 40% of its expected 2020 and 2021 production, plus a couple of smaller hedges in 4q19 and 1h22, at a baseline price of U$1,450/oz with the top end of the costless collars between 1630 and 1760 (prices their CFO hopes will not get broken during the hedge program). They've done this to ensure getting at least U$1,450/oz for their gold ounces and in that way guarantee its old and high cash cost mine El Castillo remains profitable.

Which is also complete bullshit for shareholders of course, the subject of yesterday's conversation with a friend. There are many factors involved with hedging precious metals, but at the brass tacks level it is an act of risk transference. There is always risk in mining (operational, price, execution etc) and we as shareholders, investors and speculators know this (or we damned well should by now). The risk is not diminished by a adoption of a hedging program and in fact, you can argue that risk is increased by the upper limit price of a costless collar because if it breaks, the hedger will start losing money. However, what does happen is the risk is transferred from the company and placed on the shoulders of shareholders; by selling its gold at a minimum of 1450, AR.to has removed risk from El Castillo and placed it on the company's financials. That's us, ladies and gentlemen. In effect, what AR.to has done is stated clearly that its interests are less aligned with shareholders and more about keeping their mine running. They prefer to guarantee their own jobs over the improvement of the company share price, as one of the most obvious moments to buy mining stocks is when the price of its underlying metal product moves higher. If gold runs further, shareholders will not get the blue sky benefit of the run and the company will be made to pay for their strategy (quite literally) that will crimp the share price.

Of course, companies and their C-suite decision makers have the right to do what they want with their company and if one of those corporate lines is "maintain our mines open at all costs" then that's their decision. But we shareholders don't have to put up with their self-serving, corporate cowardice. If you want to experience the full bang-per-buck opportunity that gold is currently offering you in the market, it's time to own precious metals mining stocks but you need to avoid the mediocrity in order to achieve the best gains. One of the clear signposts is not buying gold companies that hedge their production because their decision takes blue sky gain potential and your share upside away from you. Go find another stock to buy.

Ecuador: Azuay province moves a step closer to its anti-mining referendum

The story so far: We know that anti-mining campaigner and now Prefect of Azuay province, Yaku Pérez, organized the officially recognized and legally binding local referendum in the Girón Canton of Azuay Province in the South of Ecuador (a province in Ecuador being made up of many cantones). When that vote went 87% against INV Metal (INV.to) the company just said "We don't care, we'll move our mill to the other side of the valley where it's not Girón Canton", so Yaku Pérez and his friends replied, "Okay, we're going to organize he same type of vote, only this time covering the whole of the Province." He tried to get that to happen via the local mechanisms but came up just short in the provincial committee vote (he needed 18 votes out of the 23 and got 15), so instead is going the longer route and has applied to be allowed to organize a referendum under the national constitutional rules. 

Today there's movement on that, with Ecuador's Constitutional Court having allowed the paperwork to move forward. They have notified Azuay's prefect that all is in order and the job now is to get at least 10% of the population of Azuay to sign an official petition. Pérez has said this morning that they will begin the petition in two months' time, by the end of 2019 they should have cleared the next hurdle and will be ready to get court sanction for the referendum.

BridgeMark news: Prize Mining (PRZ.v) changing its name to "Boundary Gold and Copper Mining Ltd"

Because these swindlers think they can bury all their bad corporate practices this way.

Prize Mining Reports Results of Annual General and Special Meeting Including Name Change and Continuation into British Columbia

And here's the bullet point list from the NR: Remember those five names:

  • The number of directors was set at five;
  • The director nominees were all elected resulting in Michael McPhie, Raul Ramirez Morton, José Avina, Dallas Pretty and Dino Minichiello being re-elected as directors of the Company for the ensuing year;
  • Davidson & Company LLP were re-appointed as auditors;
  • The continuation into BC from Alberta, including the adoption of new Articles upon continuation (the "Continuation") was approved;
  • The change of name of the Company to Boundary Gold and Copper Mining Ltd. (the "Name Change") was approved;
  • The consolidation of the Company's common shares on a basis of five (5) pre-consolidation common shares for one (1) post-consolidation common share, or such lesser ratio that the board of directors of the Company may deem adequate (the "Consolidation") was approved; and
  • The continuation of the Company's 10% rolling stock option plan was approved until the next annual general meeting.

8/26/19

The IKN Weekly, out now




IKN535 has just been sent to subscribers. And sent late. We're just three weeks away from the big moment, IKN538 and the photo.