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5/9/20

Eric Sprott is still lying to you about Covid-19

He is a shameless and dangerous person who is best ignored for the rest of his life.

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

....in reverse order:
.
Third Place: "Today in Pucallpa, Peru (don't open if you want good news)". It's Covid-19, it's depressing and it's also the 3rd most hit post of the week.

Second Place: "Revelo Resources (RVL.v): Jobs for the boys". How scum management rips off its own shareholders.

First Place: "Regarding Fission Uranium (FCU.to), foxes and henhouses" Oh Dev, you are so popular! Wow, what a POPULAR guy you are, Dev, every time I write about you thousands of people want to read! You must look in the mirror every morning and smile back at yourself, all the popularity you have. Tell me Dev, what does it feel like to be so popular?

Wesdome (WDO.to) and Moss Lake

The best parts of any discussion are when I learn new things and the best part of the round table discussion on Wesdome (WDO.to) between CEO Middlemiss and Luis Economic Alpha was on WDO's "other" asset, Moss Lake. Well worth checking toward the end for that.


5/8/20

Friday post-close homework

Now the week is done on the markets, your author has been instructed by his youngest daughter (13yo) to inform this esteemed audience that after your previous kind help a couple of weeks ago her third project homework, an overview of the mining industry, has now been published to her website. This follows on from the second project on the biomass and nuclear industries here (and her best so far imo). Any clean and wholesome thoughts on her notes would be most welcome.

Excellon Resources (EXN.to): Three strikes and out

And if you thought the first two bits of news out of EXN were bad enough, there's now more. The famous deal with Hecla (HL) to run its ore through EXN's Miguel Auza mill is off, because incredibly EXN's mill doesn't have a copper circuit and nobody bothered to tell Hecla (San Sebastian rock always comes with Cu in its sulphides). When HL got the first conc back from EXN recently, they had to send it to another plant to process it again because otherwise there was no way of knowing Zn or Pb recoveries.

The company should halt its own stock immediately and tell the market the truth about its comedy of errors. And then management should resign en masse.

The Friday OT: Talamanca; A day at the beach

A most beautiful piece of music; evocative, addictive and surprisingly complex, it stands up to multiple listens with ease and decent speakers make it magical.




But let's not get too tempted this weekend, the beach will still be there when things are safer for your grandmother. Best wishes from day 53 of the local lockdown, youtube here.

International Tower Hill (ITH.to) is still live'n'good about its project

The details of the plan announced by International Tower Hill (ITH.to) today to "Advance Livengood Gold Project" are as yet unknown, as the NR is long on the high-falutin' phrases and low on science and numbers. However, IKN understands one of the options being mooted is for ITH to buy a high grade mine, mine out the ore, then transport it all to Livengood and mix it into the feed. At that point it may become viable.

Duncan from Wesdome (WDO.to) and Luis from Economic Alpha do a podcast

These podcast things are two a penny these days, but one for us mining types that stands out above all others happens this afternoon. Duncan Middlemiss of Wesdome (WDO.to) gets grilled by Luis Economic Alpha at 1pm EST today Friday May 8th. Go to that link for the live gig, plus the recording available later. What will the CEO of the most successful gold mining company in Canada have to surprise us with? Word has it, quite a lot...

UPDATE: "...it used to be a 4.5g mine and now it's a 20g mine." Duncan Middlemiss, slipping his tongue nicely about Kiena during the live show. That is about a deposit grading 18.55 g/t as per its early snapshot 43-101 last year. In other words, getting better all the time.

Also, Luis; "I Think about a lot of things." It is true.

Lucara Diamond (LUC.to): Balance sheet BS writ large

By some happy coincidence, just hours after your author talks BS in balance sheets with his pal on the podcast, the company Eira Thomas has run into the ground, Lucara Diamond Corp (LUC.to), files its 1q20 financials and the BS is heaped large. Please consider that the following is the NUMBER ONE TOP BEST THING highlight of this company's NR spinfest on results:
As at March 31, 2020, the Company had cash and cash equivalents of $27.4 million, an increase of $16.2 million from December 31, 2019. The Company maintained draws totalling $19.0 million on the working capital facility from Q1 2020. A balance of $31.0 million is available to be drawn for working capital, if required, subsequent to March 31, 2020. The Company begins the second quarter with a strong cash position and available liquidity.
They are proud that their cash line has gone from $11.2m to $27.4m in Q1. Fine and dandy, let's have a look at the balance sheet:



Indeed it is true, up there line one. However, your author has painted his red in other places and I'm not even going to make a big fuss about the way working capital dropped by a couple of million during the quarter. What matters is in red and can be summed up in a very simple sentence:

"We are so bad, we need to take out a loan to pay our suppliers."

That cash position as at end Dec'19 must have been pretty close to liquidity crunch moment on any given cash flow budget for the quarter, so that when "an insistent payable" (i.e. threatening lawsuits now) came calling, Eira had no choice. That bank loan Eira is so proud to have brought into the corporate structure wasn't a luxury, it was a necessity and don't forget, all this was pre-Covid19.

Eira Thomas has received multiple industry awards for decimating shareholder value at LUC, by the way. You mining people are a strange lot.

It's worse than you thought at Excellon Resources (EXN.to)

At the end of the post this morning regarding Excellon's FUBAR purchase of Otis Gold (OOO.v) and Kilgore this morning, we added that EXN's Platosa mine has also seen worker protests and roadblocks this week. Turns out it's much worse than that.

According to the latest reports, the company has used the pretext of Covid-19 to close down its La Platosa mine and will not re-open until October, as its cost of electricity is too high and the mine is unprofitable (which is telling you something at $15/oz). That's not my opinion by the way, that's the official reason EXN has filed with the relevant government body in Mexico. 

As for the protests, they were caused by the company laying off all workers until October but only paying them one month's wages (those of April). That dispute has now been resolved, with the company committing to paying three months' wages to its workforce, who will then return in October. Ironically, you would not have found out that La Platosa is going to be closed for six months because it's a heap of dogshyte if EXN had treated their workers more equitably and not forced them to protest. A lesson there perhaps, Brendan. Or perhaps I'm mistaken, Brendan, perhaps you are not just another executive lifestyle miner asshole without a clue about the real world who folds like a pack of cards at the first sign of problems and retreats to his tequila bar.

5/7/20

kai & mark talk mining, episode three

In which your humble scribe bores you to tears with charts about balance sheets, here. Or if you prefer direct to Youtube, here.

Axl Rose, all is forgiven

Everything except those deaths at Monsters of Rock in Donington:


Excellon's Excellent DD

You might have thought they could have got a discount on the asking price for Kilgore, what with the fact they can't drill it any longer.
"The plaintiffs subsequently moved the Court to amend its judgment to vacate the DN/FONSI and EA pending completion of the supplemental analysis. The Court agreed with the plaintiffs and vacated the DN/FONSI and EA in its amended judgment."

IKN is unsurprised. This company has already proven itself to have the planning and foresight of a fruit fly and after wasting countless millions at La Platosa, it's going to move its normal way of doing business to The USA. Also worth reminding people that the Covid-19 shameless liar Eric Sprott has lost plenty of cash in this, Brendan Cahill suckered him just like the rest (being rich does not cure dumb, Eric).

PS: Workers at La Platosa this week staged a blockade protest at the mine and blocked the main highway that runs past it because the company had refused to pay their salaries. ESG and solidarity with locals is something that employees at EXN never experience.

5/6/20

Regarding Fission Uranium (FCU.to), foxes and henhouses

As the Vancouver mining community waits with bated breath for word on the Fission Uranium (FCU.to) Ethics Committee findings against Dirty Dev and his Merry Pranksters, minds turn to the make up of said committee, as lips are sealed as to who inside the FCU corporate structure is set to pass judgment on JD Hep...sorry, the esteemed Mister Randhawa.

Nobody seems to know. However, simple logic would state that a person who is also member of the Fission Audit Committee, the Nominating/Corp Governance Committee and the Compensation Committee would have to be involved in this most secretive of alternative committees at FCU, the one looking into Dev's misdeeds that include profligate spending of corporate funds. That person is Bill Marsh, who coincidentally is Dev's bestest pally pal.

Bill Marsh is also one of the people who benefited directly from the very same profligate spending he has almost certainly been assigned to investigate, oh the irony. That's because the whole ethics investigation was set off by FCU spending upward of half a million dollars on four corporate jamborees back in the early days of 2016. Dev decided to do it large (with shareholder's money) on the closure of the CGN deal, so his specially selected friends were invited on not just one but four trips and Bill Marsh got to go on the very best of them all, an all-expenses paid and all desires fulfilled stay at the Peony Hotel, Hua Hin, Thailand. My, they must have had fun.

Anyway, upshot is that the person corrupted by Dev is investigating Dev for corruption. The SEC will just love finding that one out. And by the way Dev, we're just warming up here. That Darian Yip friend of yours, fascinating dude.

Revelo Resources (RVL.v): Jobs for the boys

The NR out of Revelo Resources (RVL.v) this morning is so moronic, it's funny. It's so dumb, it zooms straight past the insult to shareholders that it was obviously intended to be and is plain straight funny. Need an example of how junior mining lifestylers carve shareholders into bits while cutting fat cheques? Read on, esteemed lector of IKN:

In fact the NR that announced the approval of shares-for-debt, cuts in salaries etc affected Chair Michael Winn, the directors and staff in Chile (e.g. VP Expl) but in order to keep this uncluttered, IKN focuses on the person at the centre of the company, its CEO Tim Beale. He wasn't the big one (that was the debt-4-shares for Winn) but is certainly the best example, as Beale has converted $373,000 in fees accrued over 30 months into 2,487,760 shares (at 15c apiece, post 10-to-1 rollback completed last week). He has also taken a 50% pay cut, effective December 2019.

Well, isn't that nice of him? So, let's check on how much this guy has earned recently via the SEDAR filings:



Okay, he's on $20,000 a month cash. At least the CFO isn't utterly shameless. And for a company that achieved nothing, even while it had cash in treasury. Then when the money ran out, 2018 and 2019 saw RVL become a 1.5c stock, dead as a doornail. No cash, no development and no reason to invest. But of course all that time CEO Tim Beale keeps accruing and by the looks of things, we can even work out when his paychecks stopped flowing as $373k owed puts us 19 months into the past. As the restructure plan was agreed on Feb 6th 2020, CEO Beale was still being paid his full whack in cash in July 2018. That's over $310,000 out of the company in FY17 and FY18 while all the time it was doing this:


That above is post 10-for-1 rollback which means all that time he was doing very little, achieving fark all and getting $20k a month for the pleasure, ain't life grand. And when the money ran out, not a thought of being a real CEO, all thoughts of being a Vancouver rip-off CEO and just keep those accruals going, year after year. Which means that now, for the first time ever, Tim Beale is a significant shareholder of the company as before this deal he only owned 53,207 shares of RVL.v despite being President, CEO and a director since 2011. As stated, utterly shameless. Hey, it'd be funny if he just blew them into the market, shameless is as shameless does.

And here endeth the lesson, another example of how Simon Ridgway's shining path of "me first fuck you all" has shaped his underlings and mini-mes over the years, toerags the lot of them. At the end of today's NR, RVL states it is now searching for financing and as it so happens, IKN can help on that with a smart strategy; First you guys all put up a million each of your own fkn money, go and do some fkn work for a change, get some decent fkn geological work done for a change, move the share price up for a fkn change and then run a second round of financing. At that point come and ask, assholes.

DO NOT FEED THE ANIMALS

The Wednesday OT: Kraftwerk; Pocket calculator

It blew my mind when it came out and there were millions of others blown the same. For people brought up with electronic sounds around them from their first day onward, it's difficult to explain how strange Kraftwerk sounded back then. A Kraftwerk track would pop up on the radio and people would stop what they were doing and listen, then would be "WTF was THAT?!" and even the people who decided they didn't like it would get drawn back and listen again.




Played today for sad reasons, but still a great track. Rock In Peace, Florian. Youtube here.

Amerigo Resources (ARG.to): Read the footnotes

Amerigo Resources (ARG.to) and its balance sheet will be one of the subjects covered in the Kai&Mark podcast tomorrow. Here today we will merely offer you some of the words found in the 1q20 financials, filed this morning:

The price of copper remains at levels where it is insufficient to cover the Company’s production costs, royalty obligations to DET (Note 4), financial commitments and ongoing working capital requirements. These adverse conditions give rise to material uncertainties that may cast significant doubt as to the ability of the Company’s ability to meet its obligations as they come due and accordingly, the appropriateness of using accounting principles applicable to a going concern.
 
In response to these circumstances, the Company has reduced operating costs, suspended most capital expenditures, and structured deferred payment programs with key suppliers. The Company is also engaged in discussion with the MVC lenders to explore options to maintain the existing loan in good standing, and MVC has approached Codelco requesting the parties revise the royalty terms in a way that operations at MVC can continue for the mutual benefit of both parties. There can be no assurance that these initiatives will be successful.
 
The Company’s ability to continue as a going concern is dependent upon copper prices stabilizing and/or MVC’s ability to reduce operating costs and royalties, in order to generate positive cash flows from operations. These financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and statement of financial position classifications that may be necessary were the going concern assumption to be inappropriate. Such adjustments could be material.


And if you need an Ottotrans of that to make it understandable, stop investing in juniors now.

5/5/20

Wesdome's margin

WDO is now at the point where it cannot invest in Kiena fast enough, treasury is swelling as well.

David Lowell

A giant has passed, according to trade site ViaMinera. However, it must be said that as this tweet went up at 10:40am 11:04m and has slept, there may be reason to doubt. EDIT: Indeed this is now sadly confirmed.

UPDATE: As a matter of fact I did take that screenshot:



Today in Pucallpa, Peru (don't open if you want good news)

Further to yesterday's post, this report from Peru breakfast TV this morning shows the state of affairs in the jungle city of Pucallpa, Peru:



  • Complete collapse of all city hospitals
  • Not enough coffins for bodies, funeral parlours out of stock
  • Bodies not picked up by families and abandoned in hospitals
  • Deaths in the street, plus during filming of the report they tell of the 34th (and counting) coffin left outside a residential house for authorities to collect and give a respectful burial
  • Bodies being embalmed in the street (no other room left)
  • In hospital, zero oxygen tanks available for critical cases has caused more fatalities 
  • Dead bodies left beside other patients for hours on end in wards, due to lack of personnel and morgue space

Also, this report from Pucallpa yesterday evening explains how a police officer suffering from suspected Covid-19 arrived at a hospital in the back of a mototaxi (tuk-tuk) complaining of not being able to breathe. He was reportedly left outside the hospital unattended for one and a half hours, at which point he died in-situ (report has photo).

Glen Watson of Smallcappower has stolen your money

And now he is laughing at you.



His sickening promo pump on Crestview Exporation (CRS.cse) is now done, he's stolen your cash and like a thief in the night is now running away. Another chapter in the shameless circus that Canada refuses to shut down by doing the right thing and jailing the scumbags and assholes like Glen Watson. And we know you're watching, you toerag.

LADB on The Venezuela Expendables

Jordana Timerman has all you need to know about the arrest of the group of 13 US ex-forces arrested over the last two days in Venezuela and accused of plotting to overthrow the government of Nicolas Maduro.

Mining Journal, reliably awful with basic facts

"The company is looking to raise up to $150 million with $80 million for project finance and $70 million to repay the Cofide bridge loan to build out Ollachea, which has reserves of 1 million ounces and 1.4Moz of resources and where IRL aims to develop a mine to produce 75,000-100,000 ounces a year."

Apart from the fact it's out by $70m on the target raise and they are looking for $80m and that the revised mine plan doesn't even consider 100k, all good. Also, after inquiry this desk now knows for a fact that the journalist couldn't be bothered to contact the company before publishing, which is a pity because if the lazy, half-assed hack had spent just two minutes hitting a number that's already on his phone log, he would have not published utter bullshit.

Full understanding of current gold miner vs silver miner trading in three very easy steps

And it doesn't get any easier:



1) The two types of miner traded in lockstep from the time gold and silver settled after the rebound, mid-2019 on.
2) Then the crash came.
3) And now gold stocks are significantly out-performing silver stocks.


The end.

Andrew Thomson of Palamina Corp (PA.v) knows you are stupid and now just wants to confirm how stupid you are

When Palamina Corp (PA.v) set up at its current gig, a large swathe of concessions in the Puno region of South Peru in January 2017, the company swore blind they would move fast on exploration. Take for example this NR from the 2018 season (just after raising $2.15m) which talked of grab samples and how, "Palamina believes it can quickly move through to the drill testing stage. Palamina has commenced environmental and drill permitting in anticipation of a potential drill program on the Veta target.”

But as they say in Spanish, ' the reality is other.' Cut to May 2020, Palamina has not turned a single metre of drilling on any of its properties at any point in time (2018, 2019...nada) and today it is asking you for more money:
Toronto, Ontario--(Newsfile Corp. - May 5, 2020) -  Palamina Corp. (TSXV: PA) ("the "Company") will conduct a non-brokered private placement offering (the "Offering") of up to 6,000,000 units ("Units") at a purchase price of $0.125 per Unit, for aggregate gross proceeds of up to $750,000. Each Unit consists of one common share ("Common Share") and one-half warrant (a "Warrant"). Each whole Warrant is exercisable to acquire one Common Share at a price of $0.35 for a period of 24 months from the closing date.
Net proceeds of the Offering will be used to carry out exploration, general corporate and working capital purposes.

If you're stupid enough, PA.v CEO Andrew Thomson is worried about his salary cheques for the rest of this year and is taking your calls now.

DO NOT FEED THE ANIMALS

5/4/20

Pucallpa in Peru is going downhill

Unofficial word coming out of the jungle region city of Pucallpa in Peru this evening is not good. Your author has read first-hand WhatsApp accounts (impossible to be fake, verified by trusted 3rd parties) of hospitals that no longer accept suspected Covid-19 patients because staff do not have the necessary PPE. As a result people are going home, dying there and we are suddenly facing the scenes we saw in Guayaquil in Ecuador two weeks ago. Meanwhile, two of the four state hospitals have closed because half of the health workers are sick, so authorities have pooled human resources into two locations. Both of which are totally swamped, sadly inevitable.

This three minute Spanish language report on the unfolding crisis in Pucallpa made it to Peruvian TV screens last night. By all accounts, things are worse today.



Youtube here.

Now that's interesting

I'm sure that comp...nah!

KELOWNA, BC, May 4, 2020 /CNW/ - Fission 3.0 Corp. ("Fission 3" or the "Company") (TSX-V:FUU; OTCQB:FISOF) has announced today that Paul Charlish has left the Company and Ryan Cheung has accepted the position of Chief Financial Officer and Corporate Secretary of the Company effective May 4, 2020.
The Company is monitoring the rapidly changing and unpredictable environment caused by the global COVID-19 pandemic and continues to reduce general and administrative costs across its business.
About Fission 3.0 Corp.

Full thing here.

Gary, give it a break with the gold/silver ratio one time

Gary T ovr at Biiwii has his bee in a bonnet about the gold/silver ratio, no end of posts in th last few weeks about how it's supposed to be "toiurning", or whatever and another one just a few minutes ago. Gary dude, drop it. Silver is broken into little pieces and is going to do nothing in 2020. Silver is a massive time suck, please don't turn your blog into one as well.

Hey Dev

Keep an eye on the blog, Dev.

The IKN Weekly, out now


Hmm...a burger.


IKN571 has just been sent to subscribers. This edition was brought to you by Johann Sebastian Bach and coffee. And it's the Weekly's 11th birthday today, too. Blow out a candle. 

5/3/20

Oh Warren, you're just going to confuse them

The only people allowed to say nice things about Dr. Fauci are the nasty horrible global cabal leaders, this isn't going to compute well with the mouthbreathers who've loved you all these years as the great example of the American Dream. And you mentioned Bill Gates, darnit dude, you may as well rip off that mask you've been wearing in public for eight decades and show them you're a lizardperson.
“Personally I feel extraordinarily good about being able to listen to Dr. Fauci, whom I'd never heard of a year ago,” said Buffett. “I think we're very, very fortunate as a country to have somebody at 79 years of age, appears be able to work 24-hours a day and keep a good humor about him and communicate in a very, very, straightforward matter about fairly complex subjects and tell you when he knows something and when he doesn't know something.”

“I do feel I owe a huge debt of gratitude to Dr. Fauci for educating and informing me— actually along with my friend Bill Gates, too — and I know I get it from a straight-shooter when I get it from either one of those,” said Buffett.