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2/17/18

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

...in reverse order:

Third Place: "Presumably Tahoe Resources (TAHO) (THO.to) will now drop its appeal against the licence denial at Escobal". How a company with assets this good can screw its own roost the way it has is testament indeed to the worst management team in mining.

Second Place: "Time to be a goldbug (from IKN456)". The longer op-eds (from the Weekly) tend to be popular-
 
First Place: "Spotted in Peru". Yeah, it made me laugh, too. And it's good to see the blog being taken in its true spirit, a throwaway stupid post of sheer frippery being the most popular of the week.

2/16/18

Angry Geologist does GT Gold (GTT.v)

Saddle up, pardners. Right here.

The Friday OT: BT and Jes; The light in things

A track that should come with a warning: "Under no circumstances listen to this song on headphones while riding a motorbike". Great for the gym, though.



Stupendous BT tracks are common, but this one comes with a true quality voice to match the beats and the result is a total trip. And nobody does a break like BT, a different class. And we get two in this one. Youtube here.

The current US Dollar / US broad market correlation

Gary Tanashian makes the point succinctly and perfectly in this post, right here. Just eleven words and two visuals, that's my kind of analysis.

Tahoe Resources (TAHO) (THO.to): Another example of the wonderful community relations atmosphere in Guatemala

Yesterday Thursday morning, the VP Ops at Escobal, David Howe, and the community relations chief at the mine, Camila Medina, went on a visit to local coffee farmers as part of the company's community outreach program. On the way back from the coffee growers at around 3pm their convoy was blocked by locals, who then punctured the tires of the car in which they were travelling. Now stuck and surrounded by an angry mob, the mob then told them they would set fire to the car if they didn't promise to close down the mine permanently and leave the area for good.

Luckily, after a couple of emergency calls and three hours, local authorities intervened, calming the crowd who then dispersed and there were no injuries reported. Spanish language report on the incident here.


Lithium X (LIX.v) insider sales

Strange to see company insiders exercising options and selling them straight into the market at $2.42 and $2.48 when in just a few days' time a group of very trustworthy Chinese businessmen have promised to pay more than that.


Why, it's almost as if.....nah, surely not!

IKN thanks reader "E" for the heads up.

2/15/18

Yamana Gold's (AUY) (YRI.to) successful year

In 2017, Yamana Gold (YRI.to) (AUY) lost $204.1m in operations, its assets dropped by $38.4m and liabilities rose by $94.3m.


Your quiz question for today is: Form a complete sentence which uses the words "Brewery", "Organize" "Couldn't" and "Piss-up" (feel free to add prepositions, pronouns and indefinite articles to taste).

I'm really looking forward to finding out how much Marrone paid himself in performance bonuses for this "success". Heaven help this company if it ever has a bad year.

Sandstorm files its 2017 year end financials

And here's one of the charts derived:


Working cap jumps U$12.8m in Q4. This is now a cash cow.

It's now official: Allan Barry Laboucan is a fucking moron

Either that or he's been overdoing it on the lunchtime margaritas again. No wait, those aren't mutually exclusive, a fucking moron can be drunk or sober and it doesn't change the underlying state of moronity. Anyway I digress, here's the latest from the blowhard gumflapper:


I don't know which is more moronic in fact; That he thinks I own shares in his scam stock Alset (ION.v) or he thinks I have friends. Either way, you have to wonder just why a board of directors would be happy to have a moron as CEO.

News on the Rye Patch Gold (RPM.v) "strategic review" featuring an old LatAm joke

Three separate sources now tell this desk that Rye Patch Gold (RPM.v) is trying to sell its Florida Canyon mine and its current strategic review is given the order to shop the asset (term used loosely) around. For what it's worth, this humble corner of cyberspace doubts there will be a sale, the reason being the same as the basis for this classic South American joke*:

Q: What's the best business deal in South America?
A: Buy an Argentine for what he's worth, then sell him for what he thinks he's worth.

In a nutshell, RPM's issue. They think Florida Canyon is worth decent money.


*Normally told by Argentines, before you get all politically correct on me. Also true for Chileans, but they don't have a sense of humour.

Lithium X (LIX.v): The cheque's in the post

Hey, what could possibly go wrong? We all know that Chinese businesspeople are totally trustworthy, never mess others around, never try to squirm out of deals or get discounts at the last minute, right? This from LIX today:

"...NextView has advised the Company that it is seeking alternative funding from a commercial lender in order to obtain the required funds on the most competitive terms available and that the proposed facility with the commercial lender is currently anticipated to be established and funded shortly but has been delayed by, and until after, the Chinese New Year holiday."

It's totally understandable. After all, nobody in China knew there was a New Year's holiday coming up.

Gold Resource Corp (GORO) on its U$0.5m fine

I love this, a mail sent by Greg Patterson of Gold Resource Corp (GORO) to a shareholder of the company (who will remain nameless, as will the go-between who forwarded the mail) asking for an opinion on the IKN post of a couple of days ago that pointed out GORO has been fined half a million dollars by the government of Mexico for operating without licences.

The argument of GORO seems to be:
  • IKN is an anonymous blogger, therefore we can ignore any proven fact that is stated against the company. Because.... internet!
  • IKN mixes fact and fiction, without of course mentioning any of the imaginary fictions (hint: there are none)
  • GORO prefers to ignore the legally required permitting requirements of any mining company but "voluntarily pursue" other programs at its ops, which doesn't just make it good, but actually better than any company that's operating legally.
  • GORO is a good corporate citizen which refuses to pay its fines.
  • Oh, IKN is written anonymously and mixes fact and fiction...did we mention that before?

Sadly, the facts are 100% different to the BS GORO is trying to foist on the unwary. This is a company IKN called out for years for being extremely overvalued (as it dropped from over U$20/share to its current $4 and $5 range), for over-promising on production and expansion and never fulfilling its promises (e.g. in early 2012 it was still promising 200k+ oz AuEq production...all quietly dropped), for maintaining a crazy and unsustainable dividend policy (which eventually cracked and disappeared), the large scale insider selling as GORO shares dropped that wasn't disclosed until much later, plus of course the deaths at the mine that happened while the company had no operating or enviro permit. No fiction in that list, you two-facedpieces of corporate crud, all those are facts.

Anyway, read Greg Patterson's reply to the IKN post.

From: Greg Patterson
Sent: Tuesday, February 13, 2018, 10:37:43 AM PST
Subject: RE: Arista Fine

XXXX,

IKN (he does not write under his real name) has been a critic of the Company for years.  We believe his statements mix fact and fiction for a salacious story.

What I can tell you is the Company continues to voluntarily pursue the Mexico Clean Industry Program at its operations, and therefore puts itself under additional environmental scrutiny in that regard.  The Company has in its possession the LAU permit.  The Company disagrees with the fine (and is being advised by counsel to fight it).  Regardless, we will still be working towards our Clean Industry Program status, again on a voluntary and very transparent basis with the authorities.

The unfortunate fatalities and this fine have nothing to do with each other.

IKN is known for producing salacious stories that twist facts with fiction.  Perhaps that is why he chooses to write under an anonymous blog?  As I mentioned he has criticized the Company for years and we continually prove him false as we reached production, have had 6 consecutive years of profitability and organic growth, have returned $110M in shareholder dividends and have been awarded Mexico’s ESR seal for three consecutive years which demonstrates the Company is a socially, cultural, environmental and economic positive impact company.  None of these things will ever make it into an IKN criticism.