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10/18/19

The Friday OT: Fon Leman; Lynx Eye (Jaytech remix)

Yesterday Thursday this track knocked me clean off my feet. Out the blue, the least expected moment, never heard of the artist in life but it doesn't matter, because by that time I'm already in love.




This track is a legal high, play it at 11 and go flying. Youtube here. Fon Leman has a ton of other good stuff on Spotify btw (as I have discovered this last 24 hours).

Mining company Q3 earnings season looks more interesting than most

This from the intro to last week's edition of The IKN Weekly, IKN542:


With the uptick in gold ownership and the way in which we’ve witnessed traded volumes in precious metals stocks drop sharply in the last couple of weeks, it occurs to me that the whole market is sitting around waiting to find out if the bets they placed on juniors were right or wrong and what’s more they are only watching gold price as their marker and judge. If gold goes to 1600 they will be right, if it goes back under 1450 they’re going to sell the juniors.

But at some point a new driver will appear and I think we might have one in our very near future. One thing that doesn’t seem to be in calculations and with the potential to snap the market out of this precious metals inertia are strong quarterly operating results from the tier 1 and tier 2 mining companies and on consideration, I think that is what Barrick, Newmont, Agnico, Newcrest and all their bigass friends (into which we must also include the new star-turn Kirkland Lake) are about to deliver to the market. If the third quarter earnings period turns out to be as positive for the mining sector as I suspect, the rally is on its way even if gold stays at 1500 for the rest of 2019 and to gauge that call, I’m marking the GDX clock at $26.96 this weekend; let’s see where we are at the end of the main earnings period.



10/17/19

"Why Gold Mining Companies Habitually Destroy Capital", an excellent interview

I got a two word mail "nice interview", from An Industry Professional about half an hour ago. As I tend to pay heed when this particular industry pro recommends something, I've just finished watching this:



People, this is obligatory viewing for anyone who invests, trades or even works in precious metals mining companies. Mr. James Rasteh of Coast Capital Management speaks a tonne of sense on a whole range of topics around the central point of this interview, "Why Gold Mining Companies Habitually Destroy Capital". I found myself nodding in agreement all the way through, Rasteh has the clarity and delivery that I'd like when I grow up.

Four charts on the Fiore Gold (F.v) production numbers

Small gold producer Fiore Gold (F.v) gave us its Q4 production numbers this morning (its financial year ends Sep 30th) and here's the need-to-know:

First gold production was lower than expected:

That's mostly due to this, average grade was down. Strip rate went up, too.

So by making a reasonable guesstimate on F.v's average received price for gold during the period (U$1,490/oz) and then assuming sales exactly match production...

...it's going to be a lacklustre financial performance this quarter.
So now you know.

10/16/19

And so farewell, Prize Mining (PRZ.v)

This on SEDAR this evening:

PRIZE MINING ANNOUNCES EFFECTIVE DATE OF CHANGE OF NAME

Vancouver, British Columbia (October 16, 2019) – PRIZE MINING CORPORATION (“Prize” or the “Company”) (TSXV:PRZ) (OTCQB:PRZFF) (MQSP:GR:FRANKFURT) announces that the effective date for the Company’s change of name to Boundary Gold and Copper Mining Ltd. will be October 16, 2019. In addition, the Company’s common shares will commence trading on the TSX Venture Exchange under the name “Boundary Gold and Copper Mining Ltd.” on October 17, 2019. The new stock symbol will be “BDGC” and the new CUSIP is 10170T109 and the new ISIN is CA10170T1093. 

About Prize Mining Corp.


Farewell to one and all on this. Farewell to ex-CEO McPhie who jumped ship a few weeks ago, farewell to the cash McPhie stuffed into the satchels of the BridgeMark criminals, farewell to the corporate title and, of course, farewell to 99% of the cash that anyone foolish enough to have bought into this obvious and brazen Vancouver pump & dump (that this humble corner of cyberspace called for what it was from the very start). However, still not sure what position head pumper Gwen Preston has on the company, she jumped or is there still hope? She gonna help calm the irate bagholder subscribers through the rollback period, then be on hand at the "corporate re-launch"? Inquiring minds...

The Victoria Gold (VIT.v) first gold pour from the Eagle Mine on September 17th, 2019

No more blood, sweat and tears. Just a 30% price dump.


Joe Mazumdar of Exploration Insights does BNN today Wednesday at 12 noon EDT

That's in 90 minutes' time, when Joe...


...will explain everything there is to know about the junior mining scene. Be there or square.

UPDATE: The recordings of his hour on Market Call are now available on the BNN website, starting here

10/15/19

Another impressive quarter from Wesdome (WDO.to)

This morning we got the 3q19 production and preliminary sales numbers from one of the big success story gold stocks of the last couple of years, Wesdome Gold Mines Ltd (WDO.to). Some charts, starting with tonnage throughput and bar 204 tonnes, it all came from the Eagle Underground (UG) operation this quarter.

As for production, the 15 oz of gold from Mishi is an afterthought. Eagle River Underground is really popping and there's not a sane person out there who doesn't think this can be a 100k oz per year mine now.
There's a fat difference of 5,460 oz between the amount produced and the amount sold. This is good, the ounces will go to treasury and make the balance sheet even prettier. But once again we see that WDO is producing and selling just enough to pay for its quarterly development expenses at Kiena, the relation between Kiena development burn and operating cash flow in the last few quarters has been tiger-like tight.


Remarkably, grade from Eagle UG remained exactly the same as the previous quarter, 23.4 g/t gold. Nice blending job, guys.


As for revenues, the C$45.9m pre-announced sales number is a new record even without selling all the gold they produced. Those 5,460 unsold ounces, if priced at the average received price  of C$1,957/oz, would add a cool C$10.7m to the top line. All the same, the IKN operating earnings estimate of C$18.9m looks good to me.

WDO is up strongly on a down day for the miners, which is unsurprising. Another great quarter.

A trail of empty snake oil bottles leads to Doug Casey's door

With due hat tips to the original source @tonevays and thanks to site pal Frizzers for passing it along, this is comedy gold. Back in 1981 People Magazine (of all places) ran a note entitled "These Bad News Bears Are Bullish on Gloom and Doom—and Best-Sellers" and you've gotta see the profile they put together of Doug Casey, they had his number nearly four decades ago, my stars so they did. What amazes me is that this purveyor of pure unadulterated snake oil has managed to pull the wool over the eyes of the market not just once or twice, imagine the hundreds of times he's stood in front of a room and seen that virginal look on the faces as they get fed his well-turned bunkum for the first time. Anyway, read all about how Zimbabwean real estate was the place to be in 1981 but it didn't really matter because there was a nuclear war in 1983. Doug Casey looks way older than 72, though.

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Few prophets of America’s economic future are as spectacularly grim as Douglas Casey, the 34-year-old Washington, D.C. bachelor whose Crisis Investing (published by Stratford Press) was a No. 1 best-seller nine weeks and has sold close to a half-million hardback copies since it was published two years ago. By 1983, he warns, the U.S. will enter a depression that “will make the crash of 1929 look like a technical error.” Mounting inflation will lead to bank failures, the collapse of Social Security and pension funds, a return to bartering, urban riots and possibly even nuclear holocaust and germ warfare among industrial nations.
Now for the good news. Amid the gloom-and-doom, Casey argues, lurk opportunities that can make smart investors rich. He urges speculators to buy into companies that have fallen out of public favor—utilities committed to nuclear power or chemical companies accused of illegal dumping. “You can’t run with the thundering herd,” explains the cigar-smoking maverick. “The herd always ends up in the slaughterhouse.”
Casey cautions investors to unload their pricey U.S. real estate and recommends buying cut-rate hideaways in the cozy Bahamas or even property in Zimbabwe once that African nation’s civil conflict ends. Collectibles like stamps, rare coins and even custom-made knives are hedges against a currency collapse and perfect assets for bartering. “In uncertain times, you don’t want to be burdened with un-transportable possessions,” he notes. Gold bullion, now selling for about $500 an ounce, will jump to $2,000 during the next two years and should be banked in Swiss accounts “because in this country gold is a natural candidate for nationalization and confiscation.” Likewise, savings should be transferred to neutral foreign nations like Switzerland and Austria. If this sounds unpatriotic, well, “I didn’t make the rules,” Casey says. “I’m just playing the game.”
Of course, wealth has never been a problem for Casey, who was born the son of Eugene B. Casey, a multimillionaire Maryland landowner and developer and onetime crony of Franklin D. Roosevelt. Casey graduated from Georgetown University in 1968 and started work as an insurance consultant and financial adviser. “Everything I have I made on my own,” he observes. In 1978 he wrote a little-read book on international finance. Crisis Investing was also a flop until author-publisher Robert (Winning through Intimidation) Ringer snapped up the marketing rights, redesigned the cover and papered the country with newspaper ads announcing how “A few will not only survive, but prosper” during the coming Armageddon.
With sales now expected to hit more than $5 million, Casey is working on a follow-up volume, selling his consulting services to well-heeled investors and publishing a monthly newsletter, Investing in Crisis, for subscribers who can afford its $145-per-year price. A regular on the talk-show circuit, he has tried drag racing and skydiving (65 jumps) and he still scuba dives and studies karate. “The martial arts offer self-discipline,” says the brown belt, “which also happens to be what investing is all about.” The problem is that Casey’s reputation precedes him: “I’ve been looking for a good game of poker for months.”


The IKN Weekly, out now





IKN542 has just been sent to subscribers. Late > Never.

10/13/19

IKN Weekly subscribers have mail

The IKN Weekly will go out tomorrow Monday evening, the mail this Sunday evening explains why. TIA.

PS: Thanks to all for the reminder on US markets tomorrow.