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2/22/20

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

....in reverse order:

.
Third Place: "Alexco's (AXU) YESAB water licence is happening this time, it seems". Follow the bouncing ball. You could have bought AXU after this NR for under U$1.90 on Tuesday. Now a U$2.19 stock.

Second Place: "Harte Gold (HRT.to) goes for the Lake Superior share dilution strategy". The things instos like Appian will do to save face. 

First Place: "This is why Kirkland Lake (KL) is being hammered again". Posts about widely-held held stocks get more hits. Normal.

Answer: No

Not happening.

2/21/20

The Friday OT: JS Bach played by Neville Marriner: Was mir behagt, ist nur die muntre Jagd, BWV 208 (IX: Schafe können sicher weiden)

Better known for the "Sheep may safely graze" aria, JSB wrote this is 1713 and we'd be much the poorer species three hundred years later if he hadn't existed. This is the ninth movement, no singing in this bit, just Marriner's love of Bach shining through.



Such a beautiful piece. Youtube here.

Gold at U$1,600/oz

That's quite a chart:


If your precious metals mining company is not in the green today, it better have a damned good reason.

2/20/20

Confident prediction about Tony Makuch

He won't win in 2020.

Crux Investor does Royal Road Minerals (RYR.v)

Another in the series of Crux Investor interviews, which we like because the team takes time and asks harder questions than the average milquetoast junior mining media outlet. This one with Royal Road Minerals (RYR.v) and its CEO, Tim SackOfMonkeys Coughlin. 



This is why Kirkland Lake (KL) is being hammered again

This time last year, Tony Makuch was happy to explain the thrusting and wonderful results at KL were due to improved grade and reserves at Fosterville.
"Makuch emphasized that it is the 34% increase in the Fosterville Mineral Reserve grade that is driving the million-ounce revised production guidance. He also praised the effectiveness of the infill drilling programs both at Fosterville and Macassa, the latter in Canada."

Kirkland proceeded to spend a bucketful of cash exploring Fosterville, Swan etc, in order to increase resources and reserves. Which brings us to today:
  • At Fosterville P+P reserves are down 610,000 oz.
  • At Fosterville P+P grades are down from 31 g/t to 21.8 g/t
  • At Swan, reserves are down from 2.34m oz to 1.56m oz
  • At Swan, reserve grade is down from 49.6 g/t to 38.6 g/t

All with no meaningful increase in inferred resources. In plain English, the exploration program at Fosterville in 2019 was a bust, the mine is now facing depletion and I wish I could find those quotes of Makuch's about how Fosterville could finish producing 100m oz.

PS: Just imagine how much KL would be down today if they hadn't bought DGC.


2/19/20

Good quarter from Pan American Silver (PAAS)

NR here, a chart of earnings per share here:


The Coeur (CDE) 4q19 financial report highlights

Another raging mess from Coeur.

Non-Cash Write Downs
Fourth quarter non-cash write downs of $277.7 million reflect (i) an impairment on the carrying value of Silvertip’s long-lived assets, (ii) an inventory adjustment related to concentrate at Silvertip, and (iii) an inventory adjustment related to ore stacked on a leach pad at Wharf. Full-year non-cash write downs of $320.0 million also include (i) inventory adjustments at Silvertip during the first three quarters of 2019 and (ii) an adjustment with respect to the partial settlement of a receivable associated with the bankruptcy filing of Republic Metals Corp., which occurred in 2018.
 
Silvertip Update
The Company has elected to temporarily suspend mining and processing activities at the Silvertip silver-zinc-lead mine in British Columbia, Canada, which represented approximately 6% of the Company’s revenue in 2019. Coeur has been focused on stabilizing mill performance, which has shown signs of improvement, and implementing cost optimization initiatives. Despite these efforts, prevailing market conditions for lead and zinc concentrates remain significant headwinds for the operation.



AMLO: "I don’t want femicides to distract from the raffle"

In today's edition of LADB, Jordana Timerman does a great job of reporting the brouhaha created by AMLO's comments of the number of women murdered in Mexico, plus the latest batch of verbal vomit from Jair Bolsonaro. Anyone into the region's news and affairs should read Latin America Daily Briefing, every bit as good as any Spanish language curation site.

The reality of Keith Neumeyer, Kitco's 2019 Clown CEO of the Year

The reality is that Keith Neumeyer's First Majestic cannot even turn a profit in a U$18/oz silver price environment. This is the baloney that Keith wants you to swallow:

"Adjusted net earnings $0.3 million, or $0.00 per share, after excluding non-cash and unusual items."

That "unusual items" is in fact a near-$45m net impairment, so effect this is Keith saying, "Yes, we threw $45m of your money down the toilet, but fuck it! Just an unusual item people, not our fault. Relax and do some hot yoga."

Fact: First Majestic made yet another net loss in 4q19, due to crap management and poor decisions. Nothing changes.

UPDATE: Keith may be the clownshow CEO, but the joke's on you shareholders:



Silver up 3.5% in that chart scale, too.


Great minds think alike and fools seldom differ, Alexco (AXU) edition

IKN on the Alexco Feb 18th NR, as seen yesterday:




Cormark's Tyron Breytenbach* on the Alexco Feb 18th NR, as seen this morning:
"While the Water Use License (“WUL”) is still pending, ongoing permitting successes (note) are demonstrating that the process is still moving, and the project still remains firmly on track to restart operations in 2020. We see the divestiture as a strong indicator that the WUL is just around the corner, and believe Alexco was looking to streamline its business into the production restart."


*Crazy name, crazy guy

Mo' Wesdome (WDO.to): Nice visuals out of Kiena this morning

Middlemiss puts the hammer down on newsflow, with PDAC just around the corner. The summer's PEA will be the opening bell for potential buyers of WDO (if anyone starts a sweepstakes, put me down for McCluskey and Alamos). The PDF version of the NR here, with plenty to chew on, too.







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2/18/20

And the Opaxe "Top Drilling Intercept" award for week seven of 2020 goes to...

...Wesdome Gold Mines Ltd. (WDO.to). For the month in fact, as this slide further on in the bulletin shows:



Read the whole thing here (and hey, get your free subscription while you're over there, always a good read).

Harte Gold (HRT.to) goes for the Lake Superior share dilution strategy

That's a $27m overnight offered bot deal from a syndicate of deep bagholders Canadian brokerages and instos who, as per normal form, are determined to throw their clients' good money after their bad: NR here, business end of it below:

TORONTO, Feb. 18, 2020 /CNW/ - HARTE GOLD CORP. ("Harte Gold" or the "Company") (TSX: HRT / OTC: HRTFF / Frankfurt: H4O) is pleased to announce that it has entered into an agreement with a syndicate of underwriters consisting of Canaccord Genuity Corp. and Haywood Securities Inc. (the "Co-Lead Underwriters") on behalf of a syndicate of underwriters, (collectively and together with the Co-Lead Underwriters, the "Underwriters") to complete a private placement financing of flow-through common shares (the "Flow-Through Shares") on an overnight marketed basis from the treasury of the Company for gross proceeds of up to C$27 million (the "Offering").
The size and pricing of the Offering will be determined in the context of the market at the time of entering into a definitive underwriting agreement between the Company and the Underwriters. Appian Capital Advisory LLP ("Appian"), a significant shareholder of the Company, has advised the Company that it is supportive of the Offering and that it intends to participate by purchasing common shares of the Company to the extent of its pro rata interest, which represents approximately 24.4% of the issued and outstanding common shares of the Company.




Mark Bristow must be happy with The Clive

More things for Bristow and his fellow small penis friend, Marcelo Kim, to shoot later on.

B2Gold Donates 1,000 Ounces of Gold to Conservation Initiative to Protect Endangered Black Rhino in Southern Africa

Full story here.

Kinross (K.to) (KGC) sells its Integra (ITR.v) shares

Probably out of shame for selling DeLamar to ITR too cheaply, Special K on Friday sold its remaining 5m block of Integra Resources (ITR.v) in a AH trade, the buyer being two instos.

au1600

In early 2013, gold dropped under U$1,600/oz and has been under that line ever since, until today:


Also on the last day of U$1,600/oz gold in 2013 (March 22nd, according to the London PM fix), here are the prices of three majors and three streamer/royalties, just so you know that Harquail and Lassonde still rule everything.

  • NEM was a U$37.19 stock. Today it's U$45.35 (+21.9% in seven years)
  • AEM was a U$37.47 stock. Today it's U$49.04 (+30.9% in seven years)
  • GOLD was a U$14.62 stock. Today it's U$20.28 (+38.7% in seven years)
  • FNV was a U$40.67 stock. Today it's U$116.71 (+187.3% in seven years)
  • WPM was a U$28.03 stock. Today it's U$31.33 (+11.8% in seven years)
  • RGLD was a U$63.95 stock. Today it's U$104.83 (+63.9% in seven years)





The Kirkland Lake (KL) rally continues

Now only 15% down YTD:


More Randy Smallwood cobalt news

From Reuters:
Exclusive: Tesla in talks to use CATL's cobalt-free batteries in China-made cars - sources

 Beijing (Reuters) - Tesla (TSLA.O) is in advanced stages of talks to use batteries from CATL (300750.SZ) that contain no cobalt - one of the most expensive metals in electric vehicle (EV) batteries - in cars made at its China plant (continues here)

In June 2018, Randy's Wheaton Stuff'N'Things (WPM) paid U$390m for its part of the Voisey's Bay cobalt stream. By the last set of financials (3q19 Sept 30th) that had already been written down by U$165.912m, the asset now on WPM's books at U$227.51m.

Looks like Randy will have to impair again in the YE numbers. But it's not your fault, Randy. Blame Elon, Randy.

Alexco's (AXU) YESAB water licence is happening this time, it seems

We got this:

February 18, 2020 - Alexco Resource Corp. (NYSE American: AXU) (TSX: AXU) (“Alexco” or the “Company”) today announced that it has entered into a Share Purchase Agreement (the “Agreement”) for the sale of Alexco Environmental Group (“AEG”), to AEG’s Executive Management (“AEG Management”) led by Jim Harrington, AEG President. Under the terms of the Agreement, AEG Management purchased all of the shares of AEG in consideration for payment to Alexco of $13.35 million

We got this:
Vancouver, British Columbia--(Newsfile Corp. - February 18, 2020) - EMX Royalty Corporation (TSXV: EMX) (NYSE American: EMX) (the "Company" or "EMX") is pleased to announce the closing of a US$3.79 million strategic investment in Ensero Holdings, Inc., a privately-held Delaware corporation. Ensero Holdings, Inc. operates through its wholly-owned subsidiary Ensero Solutions, Inc. ("Ensero") formerly known as Alexco Environmental Group ("AEG"), which was previously the wholly-owned environmental services subsidiary of Alexco Resource Corp. ("Alexco").

And we even got this:
The Company has also filed the independent technical report dated May 8, 2019 with an effective date of March 28, 2019, as amended February 13, 2020, prepared by Mining Plus Canada titled “NI 43-101 Technical Report, Prefeasibility Study of the Keno Hill Silver District Project, Yukon Territory, Canada” (the “PFS”) in order to update certain disclosure issues in the text. These changes have not affected any of the numbers contained in the original PFS, nor were there any changes to the mineral reserves or mineral resource categories previously reported.

Want to know what a company about to go into production does? It gets focused.

2/17/20

Goldmining Inc (GOLD.to) is mining the depths of the German people

The below is a German language pump job promo for Adnani's waste of time and space, Goldmining Inc (GOLD.to). Kindly sent in by reader CM, he leaves this message with it:

"I copied the "research" (just text, deleted 2 pics) from wallstreet-online.de. It is about GoldMining Inc. Marked yellow is the disclaimer. Whoever invests in a company based on a document where the disclaimer is twice as long as the text itself should be forbidden to have children, vote or drive a car."



2/16/20

The IKN Weekly, out now


The answer is 42, what's the question?

IKN560 has just been sent to subscribers. Contains lots of things, does not contain one thing.

PS: Managed to confuse Andes with Alamos. No need for mails.

Tanzanian Gold (TRX) (TNX.to): Psst! wanna buy some unclassified resources?

You cannot make this shit up. Here's the NR and here's the title:
"Tanzanian Gold announces 4,291,000 ounces of gold contained in unclassified resources at the conclusion of its Phases 1 & 2 Resource Upgrade drilling along the 1.2km Buckreef Shear Zone"
And if that brings a chortle and guffaw to your lips, go have a look at the cut-off on those 4.291m oz gold too. You may notice how tonnages...well, let's just say they drop quite sharply as the cut-off rises. 

TNX is of course the goldbug cult following stock run by Jim Sinclair, who once held the dumbasses rapt with his predictions of $10,000/oz and $50,000/oz gold. My how times change.



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

....in reverse order:

.
Third Place: "Mark "Self Awareness" Bristow splains about young people in mining". He can talk up the Barrick operations and results all he wants and you won't hear a word out of me. But role-model advisory service from a person with his private tastes require all the pushback possible, the last thing we need in this world is another bunch of teens idolizing a big game hunter. 

Second Place: "It's well worth reading the Raymond James "Coronavirus Impact Call - Key Takeaways & Call Notes"". This is a good read, giving good pro/con advice about the virus as it may affect the economic sector and markets. All theory and we surely have a lot more to learn before covid-19 is done, but you have to start somewhere. 
.
First Place: "Wesdome (WDO.to) and a killer visual from Eagle River". Won the view count by a mile, what with it getting picked up by the social media crew. Not surprised, either, an image that shot the stock +10%.