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5/15/20

Jair Bolsonaro is a murderer

World political leaders have shown a disparate range of ability in the face of Covid-19, from the good and the great to the mediocre or bumbling. But only one has been a murderer with intent, that is Jair Bolsonaro of Brazil. His destitution from office should be merely the first step in dealing with this most contemptible of men.
Record increase in cases in Brazil. Brazil has confirmed 15,305 new cases; a record for a 24-hour period, as well as 824 related deaths, according to data from the country’s Health Ministry. Brazil has registered 218,223 confirmed cases since the start of the pandemic, as well as 14,817 deaths.
Your author has been in touch with several LatAm friends this evening since the latest Covid-19 numbers were made known. They and I all have middle class friends inside Brazil, they tend to the right wing and most were Bolsonaro voters. Not any more, they've all turned their backs on their President and are as disgusted as the rest of us.

Moral: Woe betide the President that doesn't look after their citizens in 2020.

Notable trading in New Gold (NGD)

This week has turned out to be more interesting than last week.


The Friday OT: The The; Infected

There was a different track lined up for The Friday OT today, which got bumped when your humble scribe received this from reader F:
I have a suggestion for the Friday OT; Infected by The The. I've been rediscovering Matt Johnson's work, he's a deep thinker with some catchy hooks. Don't know if you like or are interested in his work. Give a listen when you have a chance, I think you may be surprised.
The blurry-eyed morning mailread suddenly changed to "Ah yeah, The The! It's been way too long..." (I liked them back then) so went over to check out F's preferred call. And fell in love again, this is brilliant:



Top vid, too. Good call F, you have spread some happiness today. Youtube here.

Also in The IKN Weekly this weekend

A new buy. A cheap and overlooked exploration stage gold mining company in South America is now a near-certainty to be bought out this year and we will be on it. This trade would have been impossible during the Alternate Universe, now it is obvious. I'm buying it next week and do not yet own a single share*.


*And will not buy any this Friday afternoon either, you wonderful internet vigilante warriors.

Virtual MIF

Virtual MIF today is unlikely to debate the price paid by companies to be involved and the cash profit being made from them by the newsletter writers. It's another angle on the same scam, Scott Gibson, Eric Coffin., Gwen Preston, Brien Lundin need to give us full disclosure of their business dealings with these companies:
  • How much they charge to start coverage
  • What incentive options and warrants they get
  • How much they charge companies to be involved with MIF
  • Their personal profit margin on the conference.




In The IKN Weekly, this weekend

A significant portfolio re-balance happening in The IKN Weekly this weekend. A long-standing covered and held company has been serially stupid for too long, at some point one must say goodbye. FWIW, your author will not sell until next week minimum.





5/14/20

The mail sent by IKN to Eric Coffin tonight

As stated here:

Dear Mr. Coffin,

Even by normal parameters, IKN has been impressed by the off-record feedback it has received about you, Gwen Preston, Scott Gibson and the nice little cabal you have set up over there. On this side, we are now at the point where several junior mining companies have confirmed the Gibson business model. One robust CEO has even offered to go on the record about you. We on this side (the good guys, if you hadn't worked it out already) are still considering strategy. However, it's almost certainly going to include a lot of noise. We hope you have enjoyed the last few years and have saved money, Mr. Coffin.

Love, Mark

PS: this has been bcc'd to a lot of people


Sandstorm Gold (SAND) (SSL.to) at Hod Maden: Speechless

Seriously, just go look for yourself.

UPDATE: To give you an idea, using 80% recoveries and today's spot prices, the metal is worth approximately U$1,000 per m3. Which is pretty good right? Ah but wait, that's just for the copper! Now go look at the gold and add that on.

kai & mark talk mining, episode four

In which your humble scribe bores you to tears with inane observations that will make you guffaw in delight at his lack of business acumen and naivete. Sure to make you vow never to tune into the podcast again. Here. Or the youtube...



...here.

Catching up with Lucara Diamond Corp (LUC.to)

Further to the post of the morning of May 8th on the company Eira Thomas ruined, Lucara Diamond Corp (LUC.to), in which this humble corner of cyberspace pointed out the obvious and urgent financial problems at the company:



That's a 17.3% drop in five trading days and balance sheets matter, people. 

Further questions?

Paid pumper Eric Coffin is scamming them with Northern Shield (NRN.v) again

Hey Eric, times must be tough if NRN is the only company you can shake down at the moment.

The thing with success exploreco investment is being able to spot the fatal flaw quickly. The thing with NRN and where they're drilling right now, the "Highway Claim", is that Eric Coffin's whole P+D scam depends on you thinking that he has done all the DD and there's no underlying issues with the property or location. In other words, Eric Coffin doesn't just scam you, he makes sure the stupid and trusting ones stick around at his service so they can be scammed again and again.

So what of fatal flaws and NRN? Well that's certainly not the geology, there's a lot going on down there and there's no doubting the validity of the rocks as a prospective target. The problem is more geography, because NRN is located...
...in the Barney's River coal zone. Whatever you look for down there, you will also find methane.
...next door to the Westray mine, the name alone is enough for anyone from Nova Scotia to remember the 26 deaths and the reasons for the tragic losses there.
...in the middle of a zone with countless abandoned, toxic mine sites (mostly gold) that make any thought of environmental permitting unthinkable.
...in a place where all decisions are made in the city of Halifax, traditionally left wing and particularly so at the moment.
The fatal flaw at NRN is enormous, a total project killer and obvious to anyone who gets past first base on their DD and starts looking. Yes for sure they can apply for and get a drill permit to stick an exploratory hole in the ground, but the chances of mining anything they find or eventually define as a reserve or a resources are zero. It's telling that it takes a Vancouver company to do something in this location, as even though locals know the rocks are good they do not go exploring there. The Vancouver shysters rely on West coast ignorance.

Therefore, if the resource can never be mined, the resource is also worth zero. But Eric doesn't tell you that. Hopefully, you are beginning to understand why.


PS: Nobody likes to find out their hero is a crook. Hey, truth hurts.

The Vizsla (VZLA.v) pump: They are getting desperate

EricCoffin, Keith Shaefer, Gwen Preston, David Forrest, all the corrupted and bought newsletter writers who pretend independence are pumping as hard as they can this morning, their envelopes of thanks dependent on the stock getting above 55c before the placement is announced.


5/13/20

In which IKN analyses the 1q20 results of Trevali Resources (TV.to) using just one word

Ouch:



And if you think  that's bad, Glencore now has them by the short and pubics. This next bit comes from the financials Note 2 and is seriously ouch:

To avoid a breach of the Revolving Credit Facility’s (the “Facility”) covenants on March 31, 2020, prior to the end of the quarter the Company obtained a 30-day covenant waiver to April 30, 2020. A further waiver was obtained subsequent to the end of the quarter to waive the covenants of the Facility until May 31, 2020. Certain terms of the Facility were amended, including a reduction of the amount available under the Facility from $275.0 million to $125.0 million, additional reporting requirements, restrictions on certain investments and distributions, as well as a minimum liquidity covenant. The minimum liquidity covenant requires that the Company maintain minimum financial liquidity, defined as cash and cash equivalents plus amounts available under the Facility of $15.0 million.
The amount available to the Company under the Facility as of March 31, 2020 was $19.4 million. In April 2020, the Company drew a further $19.0 million under the Facility.
As the covenant waiver does not extend for a period of 12 months past March 31, 2020, the Facility balance was reclassified from non-current to current liabilities as at March 31, 2020. As of March 31, 2020, current liabilities of $171.5 million exceeded current assets of $108.3 million.
The Company is currently in compliance with the minimum liquidity covenant under the Facility. The Company will not generate sufficient funds from operations to repay the Facility upon expiration of the covenant waiver on May 31, 2020 and will need to generate funds from other sources to do so or will need an extension or refinancing of the Facility. To address the near-term liquidity requirements, the Company has been in discussions with its lenders to negotiate further amendments to the Facility to provide the Company with additional time to generate cash and/or access additional sources of debt and equity financing. There can be no assurance that these negotiations will be successful or that the Company will be able to raise additional sources of debt or equity on a timely basis. The Company has also taken a number of other steps to assist in meeting the repayment obligations, including reducing capital, operating and exploration spending, placing the Caribou mine on care and maintenance and cancelling the Normal Course Issuer Bid (“NCIB”).
The ability to repay or refinance the Facility and maintain financial covenants depends on a number of factors, some of which are beyond the Company’s control. These include general global economic, credit and capital market conditions, timing of receipt of payments for the sale of concentrate and the demand for and selling price of commodities, particularly zinc. There is no assurance that the expected cash flows from operations in combination with other steps being taken will allow the Company to meet these obligations as they become due, that we will continue to meet the covenants under the Facility, or that the Company will be successful in renegotiating or refinancing the Facility. Accordingly, it is possible that the Company could be in default of the Facility prior to May 31, 2020 based on the amended terms, which could result in outstanding obligations becoming immediately due and payable unless waivers can be obtained from its lenders.



Guyana Goldfields (GUY.to): The more hostile the better, please

First the fantasy, second the reality.

I hope this one gets deep into the nettles, with both sides getting bitter and twisted, digging dirt up about all companies involved:
  • Guyana Goldfields (GUY.to)
  • Silvercorp (SVM)
  • Gran Colombia Gold (GCM.to)
  • Goldmining (GOLD.to)

There are no good guys, they are all scumbags, so c'mon all of you! We out here in the peanut gallery want this! Bring it on and get those skeletons out of each others' cupboards. Your humble scribe rubs his well scrubbed hands in glee and anticipation.
TORONTO, May 13, 2020 /CNW/ - Guyana Goldfields Inc. (TSX: GUY) ("Guyana Goldfields" or the "Company") today announced that its board of directors (the "Board"), after careful consideration and consultation with its financial and legal advisors, has unanimously determined to reject the unsolicited proposal announced by Gran Colombia Gold Corp. ("Gran Colombia") (TSX: GCM) on May 11, 2020 to acquire all of the issued and outstanding common shares of the Company for consideration consisting entirely of Gran Colombia shares (the "Gran Colombia Proposal").  The Board reaffirms its unanimous support for the transaction previously entered into with Silvercorp Metals Inc. ("Silvercorp") (TSX/NYSE American: SVM) and announced on April 27, 2020 (the "Silvercorp Transaction").
The Board has determined that the Gran Colombia Proposal is not in the best interests of the Company or its shareholders since (continues here)

In other words, GCM is just going to melt away and this M&A process is now over and fool if you bought the stock this week thinking otherwise, because there's no way Frank Giustra, Serafino Iacono, Frank Holmes or anyone else at the centre of this most fetidly corrupt gold company would ever want a forensic sniffing round its books. They wouldn't want the rollbacks spotlighted, they wouldn't want all those Panamanian "service companies" investigated (esp post-Panama Papers), they would not want their awful environmental history as a company brought to light. And that's just for starters.

Great Panther (GPL) is an embarrassment to the industry

Yet another share placement from a company that is supposed to be an operating and profitable miner, this one at a 25% haircut to an already fast-dropping close.
 VANCOUVER, May 13, 2020 /CNW/ - Great Panther Mining Limited (TSX:GPR; NYSE-A:GPL) ("Great Panther" or "the Company") announces it has entered into an agreement dated May 13, 2020 with Cantor Fitzgerald Canada Corporation ("CFCC") and BMO Nesbitt Burns Inc. ("BMO"), as co-lead underwriters and joint book-runners (the "Co-Lead Underwriters"), on behalf of themselves and a syndicate of underwriters, including H.C. Wainwright & Co., LLC as lead manager, and Roth Capital Partners, LLC as manager (collectively with CFCC and BMO, the "Underwriters") under which the Underwriters have agreed to purchase, on a bought deal basis, 25,000,000 common shares of the Company (the "Offered Shares") at the price of US$0.40 per Offered Share (the "Issue Price") for aggregate gross proceeds of US$10 million (the "Offering").

Continues here. The number of times GPL has gone to market over the years beggars belief.

Today Wednesday is turning into an important bellwether day for precious metals miners

Here's the picture now, Weds mid-morning...



...as just after Jay Powell spoke and rattled the market, the SP500 turned South and has crimped the morning rally in GDX. All eyes on that ETF, if it can reverse and rally with gold today the cash moving into our sector of focus will turn from a river into tsunami. 

FWIW, this desk will be tape-watching today.

UPDATE: If you regularly trade these stocks and are not buying this afternoon, IKN can only assume you're out of money already. Buy this dip in GDX, period.

Sandstorm Gold (SAND) and cheapies

Financial internet is polluted by those annoying onanists who write "Hey!! Thanks for the cheap shares!!!" on bullboards, social media and yeah, even blog posts. However, there's a real difference between them and the way I feel about the shares in Sandstorm (SAND) I've bought this week for tidily under U$8.00. Those "thanks for the cheapies" people are trying to put on a brave face as their previously held large position turns into a horrid bag to hold. On the other hand, I'm back in at a price I honestly thought we'd never see again.


 
The market thought for a while that SAND raising capital via an ATM placement was a net negative for the stock, that's because the majority of the financial world is still stuck in Alternate Universe. All that ended late February 2020 and the longer it takes for you to adjust, the longer the rest of us will eat your lunch. So yeah, truly, thanks for the cheapies guys.

PS: And before you internet vigilante warriors kick off, this purchase was disclosed to readers of The IKN Weekly last Sunday. Purchases made on Monday. Next question?

New Gold (NGD) pulling further ahead of McEwen Mining (MUX)

The emperor has no clothes. Now that Rob McEwen's luck has run out, we get to see the true effects of his talent.



You have to admit Rob, you rode your lucky streak well. Think about retirement now, yeah?

Do not buy bad gold mining companies

Especially when they bribe you with directorships. That's not a way to run a fund.


Nicaragua and Covid-19

Let's not beat about the bush, the list of countries in Latin America suffering from the Covid-19 pandemic is long and just for one example, the merest glimpse at the figures out of Brazil this week tells you the issues are not going away soon. However, Jordana Timerman in LADB today highlights what is happening in Nicaragua, because the Ortega government has moved from spin to propaganda and now outright lies as they continue to deny that the virus is ripping through the country. Some particularly insightful reporting from the Confidencial website she links.

Nicaragua could become one of the world's worst hotspots, because its government isn't lifting a finger to save its own people. That, ladies and gentlemen, is inhuman.

5/12/20

New Gold (NGD) versus McEwen Mining (MUX) out of the crash

Renaud Adams kicking Rob McEwen's butt again:



Not the first time, unlikely to be the last.

More on Gwen Preston's deceit

Following on from yesterday's post regarding the two-faced basic dishonesty at the centre of the Gwen Preston business model, your humble scribe receives this unsolicited message from an exploration stage junior mining CEO (grammar brushed up slightly, message 100% as-is):
I can confirm your Gwen Preston comments. Gibson’s group comes in for $x on a placement provided you pay $y a month for IR services, which includes Gwen Preston. It’s a set deal.

They are all on the take at MIF - and beyond. What needs to happen is they need to be treated as insiders with full SEDI disclosure. Without disclosure I see it as fraudulent. I’ve written to the regulators about this. Of course no reply.

Perhaps Gwen Preston would be so kind as to explain this cozy set-up with Scott Gibson and Kitco. Not to IKN mind you, it's her subscribers that deserve an explanation.

Re-writing history at Victoria Gold's (VIT) Eagle mine

The biography of Tony George, per the NexGen (NXE) NR this morning as he is welcomed onto that team, is most impressive and that's no joke. Sadly, he had to ruin it by lying at the end:

Tony is a mining engineer with over 35 years of experience in operations, project management and construction. Tony commenced his career with De Beers in South Africa and Namibia. In 1993 Tony came to Canada and has held senior positions at the Iron Ore Company of Canada in Labrador; Aura Minerals, working on projects in South America; as a lead consultant working on many international projects with Rescan Engineering and MRDI (AMEC); De Beers Canada where he was the mine general manager on the team that brought the Victor open pit diamond project through feasibility, engineering and construction; and Vice President Project Development at Lucara Diamond Corp, where he was responsible for taking the Karowe Mine in Botswana from feasibility study, though engineering and construction, into operations. Tony was Vice President Project Development at Lundin Gold where he was responsible for all aspects of the feasibility study for the advancement and development of the Fruta del Norte project in Ecuador. Prior to joining NexGen, Tony served as Vice President Project Execution with Victoria Gold Corp. where he oversaw the Eagle Mine through detailed engineering and construction which was successfully completed ahead of schedule and on budget on June 2019.

If Victoria Golds Eagle mine came in on budget, I am Chinese.

In-house note

As from today, this blog will no longer use swear words. They are not necessary.

5/11/20

Gwen Preston

IKN would not give a rat's posterior about her if it weren't for the disgusting hypocrisy at the centre of her business model. This is what she claims:

" I do not accept money or shares from companies in exchange for coverage."

Unfortunately, that disclaimer is nefarious sophistry and the truth of the matter is that Gwen Preston can be bought, as long as the price is right. This is easy to demonstrate, simply compare the list of companies that pay Kitco Gibson Capital for investment relations and marketing work, then see how they suddenly and coincidentally become Gwen Preston buy recommendations.

Stop lying to people, Gwen. The conflicts of interest are so obvious and your defence is an insult to the intelligence. Admit how corrupted you are before it's too late.

Lucky Pierre and the largesse of streamers

I still cannot get over the fact Lucky Pierre has fallen for his Ecuador/North Peru weak spot again and sponsored Solgold to the tune of $150m. Anyone who remembers how he got royally ripped off by Carlos Ballón knows what I'm talking about. Thing is, there seems to be this weak flank in all the royalty/streamer companies. At some point, they bow to the CEO and his (always male) foibles and throw him a few hundred million to go play with pet projects. This is not a good thing. Here's Lucky Pierre and Ecuador/N. Peru again. Over there, Randy Smallwood burns hundreds of millions on Cobalt at a company with a corporate title of Wheaton Precious Metals. Is Co your precioussss, Randy? And over there, you would have thought Nolan Watson would have learned by now after nearly wrecking Sandstorm over Colossus, but they still throw him play money for Mongolian crap. IKN suggests that the independent directors at these companies actually do something from time to time, instead of just getting paid $10k a shot to attend bi-monthly Zoom meetings.

WTF is that out of SolGold (SOLG.to) tonight?

And rare it is your humble scribe uses question marks in post titles, however that normally hateful avenue is tonight required. 

But seriously, what the fkn fk is this? Using "lucky" Pierre to attempt to trigger a real offer and negate this FNV gig! Holy stars, Mather is this desperate to get a bite out of BHP or NCM before the cruel reality of Ecuador dawns on the dumbass advising the dumbass advising the dumbass advising the board of directors of either. Run away fast.

The IKN Weekly, out now


There was no choice


IKN572 has just been sent to subscribers and I'm going to bed. Goodnight.

5/10/20

All you need to know about Ian Slater

He pays corrupted people to pump his scams. First Gwen Preston, now Daniel Davidoff Cigar Ameduri. Here's the disclaimer from Future Money Trends' stupidity on Libero Copper this weekend:

Disclosure/Disclaimer:
We are not brokers, investment or financial advisers, and you should not rely on the information herein as investment advice. We are a marketing company. If you are seeking personal investment advice, please contact a qualified and registered broker, investment adviser or financial adviser. You should not make any investment decisions based on our communications. Our stock profiles are intended to highlight certain companies for YOUR further investigation; they are NOT recommendations. The securities issued by the companies we profile should be considered high risk and, if you do invest, you may lose your entire investment. Gold Standard Media LLC has been compensated one hundred and fifty thoudsand dollars, directly by Libero Copper & Gold for a marketing campaign. Further, Wallace Hill Partners LTD, a Canadian company, has been compensated fifty thousand canadian dollars for a marketing campaign. Both entities are owned by the same individuals, who own Future Money Trends LLC. Additionally, Wallace Hill Partners LTD has participated in the private placement and owns five hundred thousand shares and the same amount of warrants. We will not sell shares during this marketing campaign and for four weeks after it. Please do your own research before investing, including reading the companies' SEC filings, press releases, and risk disclosures. Information contained in this profile was provided by the company, extracted from SEC filings, company websites, and other publicly available sources. We believe the sources and information are accurate and reliable but we cannot guarantee it. 

Hey Gwen, you get the same?