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11/30/19

HIVE Blockchain Technologies (HIVE.v): Goodbye

And they couldn't even be bothered to get the grammar right:

During the second quarter of fiscal 2020 and subsequently, Bitcoin market conditions for miners worsened as coin prices declined while mining difficulty and network hash rates increased, reaching a record high. This combination resulted in the Company’s cloud mining operations, which operate on a fixed cost basis, becoming unprofitable. As a result, the Company has suspended 200 PH/s of its cloud mining capacity at the beginning of October. It is currently reviewing various factors, including market conditions and the halving of Bitcoin rewards anticipated to occur in May 2020 and it’s anticipated impact on legacy ASIC miners, and reviewing its options for this cloud mining capacity as well as its plans for its other 100 PH/s of cloud mining capacity, the initial contractual term of which expires at the end of calendar 2019.

The top three most visited IKN posts this week are...

....in reverse order:

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Third Place: "Sexsomnia and the moral superiority of mining executives". And an ex-Canaccord guy, you say? Oh now, there's a surprise. Good to hear that Boreal canned him.

Second Place: "If you weren't aware that Bob Moriarty is a jew hating shit...". If your idea of a moral leader for life advice is a hate-filled bigot and bully who'd be happy to see the end of a whole people, then Moriarty has the final solution for you.
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First Place: "The chilling effect of this ill-conceived Kirkland Lake $KL Detour Gold $DGC.to deal is bad news for the mining sector". The most hit page by a mile. Somebody has to tell you just how bad this Paulson character is for the wider mining industry.

11/28/19

Great Panther $GPR.to $GPL: Leopards don't change their spots

In less than two months, the following list of amazing things has occurred at Great Panther Mining (GPR.to) (GPL):
A pit wall collapse at its Tucano mine in Brazil (literally one day after an analyst site visit) which lowered annual guidance.

Fired its COO.

A fatal accident at its San Ignacio mine in Mexico.

Fired its CEO.

A second fatal accident at its Coricancha mine in Peru, which is aggravated by the fact the location of the fatal accident was the mill that was operating without a valid licence.

And tonight (Thanksgiving Thursday evening) it announces a second drop in annual guidance with just 32 days left on the calendar.

Chair Jeffrey Mason, along with directors Robert Archer, John Jennings, James Mullin, Elise Reese, Bob Garnett and Kevin Ross, ought to be thoroughly ashamed of themselves.

If you weren't aware that Bob Moriarty is a jew hating shit...

...and a bigot, it's about time you did. Go fuck yourself, Moriarty. Your death will improve the planet.

This is an interesting company

Been quietly watching and I do not own any shares. This news today is the start of its journey.

MONTRÉAL, Nov. 28, 2019 /CNW/ - Cerro de Pasco Resources Inc. (CSE: CDPR) (« CDPR ») (OTCMKTS: GPPRF) (Frankfurt: N8HP) is pleased to announce that it has executed a definitive share purchase agreement dated November 27, 2019 (the "Agreement") with Volcan Compañia Minera S.A.A. (BV: VOLCABC1) and its subsidiaries (collectively, "Volcan"), whereby CDPR will acquire all of the issued shares of Oxidos de Pasco S.A.C. ("Oxidos"), Empresa Administradora de Cerro S.A.C ("Cerro SAC") and Remediadora Ambiental S.A.C. (together the "Target Companies"). The arm's length transaction (the "Transaction") will provide CDPR ownership and operation of all mining and processing assets in Cerro de Pasco, Central Peru.


Full thing here.

Makuch's bullshit on Detour

On finally getting to the G&M piece on Eric Sprott and Kirkland and Detour, your humble scribe discovers the biggest fun at the very end of the note and the part that quotes Tony Makuch more than Eric Sprott:
"Kirkland has no intention of calling off the deal, he (Makuch) said, or renegotiating the terms lower, but he said he might have changed the company's messaging had he known the response was going to be this negative."

That is bullshit. Certified, gilt-edged bullshit and not only that, the worst type of casual lie that comes out of C-suite mouths. For one thing, the fate of a near-$5B...ooops, make that "near $4Bn" deal is not decided by "messaging", it is decided by cold, hard cash. For another, perhaps the "messaging" being referred to here is that Makuch himself went on record last month (last freakin month!) and said that Kirkland would not favour quantity over quality, so in fact let's call this "messaging" brouhaha for what it is, double-talk from a weak puppet of a CEO who does not have executive control of the company he pretends to run that has annoyed people who like money more than gold. And that's the worst part of the words that tumbled out of his mouth, as he knows it's a lie, the reporter knows it's a lie and anyone with an inkling of the sector knows it, too. All Makuch is doing is giving a nod and a wink to his owner, John Paulson. Plus the fact that the whole "will/won't it close?" question is a false dilemma, ain't no way this deal is voted down.

11/27/19

Luis does Kirkland

Luis over at Economic Alpha (aka highgrade on Twitter) today published his thoughts on the deal struck between Kirkland Lake (KL) and Detour Gold (DGC.to) under the title "Kirkland Takes  Detour" which are well worth reading because:
  • Luis has been long KL since it was a U$6 stock (approx) and his track record of calling the stock and its catalysts over the last couple of years has been impressive. 
  • As we know, KL has taken a big hit this week (from U$49 to U$40 approx) as the deal was handed a very negative reception by the market.
  • Luis has taken the hit on the chin and come up with a nuanced and carefully considered piece that uses his intimate knowledge of the stock as well as the public data. 

It's not for me to agree with every point he makes, but I think he nails the conclusion and gets the call right. But that's me, go make up your own mind about it by clicking right here.

Sexsomnia and the moral superiority of mining executives

Karl Antonius of Mandalay Resources and Boreal Metals (among others), you are today's most interesting story in The Vancouver Sun:

On Monday, Karl Richard Antonius called several witnesses, including his mother and a girlfriend, to testify about sleeping issues he claims to have experienced throughout his life.
He’s expected to argue that at the time of the alleged 2015 assault, he had sexsomnia, a condition in which a person behaves very much like someone sleepwalking and therefore is acting involuntarily and not responsible for their actions.
In April, the complainant, who cannot be identified due to a publication ban, testified that she was sexually assaulted during a blind date with Antonius.
They had gone to several locations before she lost her keys and Antonius suggested that they go back to his “work” apartment at the Fairmont Pacific Rim luxury hotel in Vancouver.
She maintains that she had no interest in having sex with him and it was late and she just wanted to get some sleep before she dealt with the issue of her missing keys.
The alleged victim testified that Antonius gave her some shorts and a T-shirt to change into and she went to bed before he tried to climb into bed with her, groping her.
She said she swatted his hand away and said no and then fell asleep but was awoken to him engaging in sexual intercourse that she claimed was non-consensual.
Antonius, who is expected to testify later this week, called several witnesses to testify Monday about issues he has had with sleep, including eating, walking and talking while he’s asleep.

Full report here and it's well worth checking out the details, just to see how far an asshole like this is capable of going in order to cover up his pathetic life. One has to wonder whether things may have turned out better for the Cerro Bayo mine, flooded and ruined in 2017, if the Mandalay C-Suite were more interested in its operation and less interested in banging 20yo chicks on luxury yachts and in luxury hotels around the world. We will likely never know...

11/26/19

The chilling effect of this ill-conceived Kirkland Lake $KL Detour Gold $DGC.to deal is bad news for the mining sector

I'm not going to trawl over the basics just to add word count to this, if you don't know about the deal and what it's done to the price of Kirkland Lake (KL) shares it'd be strange to find you reading this blog, frankly. Here's a 10 day price chart to get it out the way.



It only takes a minute of memory on the Denver Gold Show 2019 to recall the very clear message handed down from the money people to the mining people, that the mining companies must work to improve their balance sheets and not blow their treasury cash on expansive M&A. At the time, I wrote that while understandable and correct of the money people it wouldn't stop paper M&As from happening. Sure enough, it took just two months for an large (just under $5Bn ticket price is big enough for me) all-paper takeover to show up.

Problem is, this deal has been forced upon KL by Paulson and his Gold Pressure Group to one side (who truly do not give a single fuck about the mining industry and just want their print) and Eric Sprott OBO* on the other, who dreams of size size size as gold rockets through $10,000/oz and he gets to sit at the Davos Top Table at last. This DGC deal is shit, it explodes the myth and mystery of KL as the new and acceptable face of mining. Generalists look on with sinking hearts as Makuch does exactly the same as every CEO before him, bends to pressure and turns his lean company into a sprawling, inefficient mess that prefers quantity over quality. What we have witnessed yesterday and today is the destruction of goodwill at KL, over $2Bn in bets that "this time is different" and KL would remain a low cost, high margin producer have all lost. Money, by the way, that only ever existed in the imagination of KL longs who fell for the ruse. Welcome to reality people, KL yesterday stated for the record that its future is the same mediocrity as every Tier 1 mining company. 

However, the worst aspect of this ill-conceived debacle of a deal is that it will now send a massive chilling effect over the entire sector. Your ambitious mining company was told in September that it cannot use its cash to buy assets. It has now been told (screamed at, in fact) that it can't use paper to do deals, either. Those of you expecting a raft of M&A in 1q20 are going to be left sorely wanting.



*Our Benign Overlord

11/25/19

Marcel Rada is a very naughty boy

Back in 2017, Marcel Rada was permanently banned by IIROC and the BCSC from becoming a director or officer of a public company, from acting as a registrant, from acting as a promoter, from management and/or consultancy in the securities market and banned from all investor relations work as well. Here's part of the ruling against him:
IIROC found Rada admitted he solicited and obtained $205,000 in funds from individuals for the purpose of investing in two issuers, without disclosing that a significant portion of that money, more than $175,000, would then be paid to him. Further, Rada admitted to facilitating off-book transactions without the knowledge and consent of his employer. He also refused to produce bank records and attend at an interview with IIROC staff when asked.

Therefore, it comes as a surprise to find that this individual, resident in BC, has recently been in flagrant disregard of all those orders. Marcel is currently pitching a junior that wants to move forward with the Tassiwini gold project in Guyana and has been using aggressive pitches as well as offering places to potential investors in the seed capital round. And that should be enough to send him straight to jail if IIROC and the BCSC ever get their act together. Do Not Feed The Animals, Canada.


UPDATED Bloomie: "BHP Plans to Increase Its Stake in Ecuador-Focused SolGold"

A worthy scoop-ette from Bloomie this Americas evening and I'll betcha a dead dingo to a dozen armadillos that David Stringer's source was someone in mid-range exec BHP who is trying to stop this freakin madness from happening. Anyway, enough of my stupid and on with the serious excerpt:

BHP Group, the world’s biggest miner, plans to increase its stake in SolGold Plc, the developer of projects in copper hot spot Ecuador, according to people familiar with the proposal. SolGold shares surged.
Melbourne-based BHP will add to its existing 11% holding in SolGold and become the developer’s largest shareholder ahead of Newcrest Mining Ltd., the people said, asking not to be identified because the matter is confidential. An announcement detailing the size of the investment could be made within days.

BHP and SolGold declined to comment
Whole thing here. As for the market reaction, yup for sure a big woodie in London this morning but you also get the feeling somebody knew something on Thursday. Loose lips, Nickieboy...loose lips...



UPDATE: The deal is out, with BHP buying in to the tune of 77m shares at a kinda-thin 22.15p per share and, with a new total of 14.79% ownership, the BHP stream of urine travels a few millimeters further than that of Newcrest's.

The IKN Weekly, out now


I like pleasure spiked with pain and music is my aeroplane, it's my aeroplane


IKN548 has just been sent to subscribers. We search for a tax loss selling bargain, we find several. What could possibly go wrong?

11/24/19

The top three most visited IKN posts this week are...

....in reverse order:

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Third Place: "Dear Wexford Capital". Not long now, just a few more days.

Second Place: "Belo Sun (BSX.to) and INCRA land". Didn't think for a minute that this post would make the top three, but it caught a wave of extra hits on Friday and Saturday (somebody handing the link around, probably). The morally vacant Doody and Scamsberry are still pumping this dog, maybe they tried to BS their flock into believing last week's court news was positive for the company.
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First Place: "Even in failure, Endeavour Silver $EDR.to $EXK CEO Brad Cooke prefers to lie through his teeth". Thank you Rudy Havenstein for sending the hit count higher. It only takes one high-traffic Fintwit person to do it to a post these days, we're all on the derivative sites.
 
 
The other thing that the blog stats is showing me this weekend is that the experiment of hanging back on blog posts and doing too much on Twitter (now finished) hasn't affected eyeballs at all, viewing figures are back to the same numbers seen the first half of the year. Unimportant, but told you anyway.

"Potosí: The Silver City That Changed the World", by Kris Lane

One of the most interesting places in all the continent* and a must visit for anyone connected to mining, the town of Potosí in Bolivia has a history like no other. A new book is out on the story and kind reader GB put this link to the NY Review of Books critique of author Kris Lane's efforts. Well worth reading just the review to find out more. A small appetite-whetter:
"...the history of sixteenth- and seventeenth-century Spain, which could never have become the dominant power in early modern Europe without the regular supply of silver extracted from the mines of what is today Bolivia, but during the period of Spanish rule was part of the viceroyalty of Peru. Every year this silver was shipped to Seville, where it entered the royal coffers and those of financiers, merchants, and private individuals. From Spain the silver circulated through Europe, paying for the military and other expenses of the always indebted Spanish crown, facilitating private transactions, and flowing into Asia and the Far East, where it met the rising demands of Mughal India and Ming China for silver, and allowed Europeans in turn to purchase the spices, textiles, and other luxuries from the East that they craved. The quantities of silver from Potosí that reached Seville and were recorded by the officials of its House of Trade were staggering. Indeed, vale un Potosí—“worth a Potosí”—is an expression still used in Spain."


*Yes, I have. Three times.