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9/28/13

A word on Odlanier Mena


Good

End of word, context here

9/27/13

Setty has a special message for Hilary Kramer

It's about Venezuela, it's on this link and here's a chunkette of it:

Instead of helping us expose the facts about what is happening there, you participated in a fraud, you participated in the cleansing of the reputations of a few of the thousands of people who have diverted billions of dollars from the people of Venezuela into the pockets of a very few rich bullies. 

If hers isn't a paid pump piece funded by the scammers at Derwick, Hilary Kramer is merely stupid, rather than corrupt and stupid. However, it's dollars to donuts that Hilary Kramer got paid a fat fee for the puff piece she published at Forbes, only to pull the note later when the pushback got too much for even her dwindling reputation. Go see the whole lovefest over at Setty's place, it'll give you an idea of the nest of financial vipers that abide in Venezuela and suck it dry.

The Friday OT: Stevie Wonder; Superstition (live on Sesame Street)

This isn't the first time this track has made it onto the Friday OT (we played a Soul Train appearance a while back) but this one, recently stumbled upon by your humble scribe, is the version from heaven:



Stevie appeared on Sesame Street in 1973 and left this behind. Check out the steady start and then how the song starts to light up when the horns come in, then how it goes stellar and stays stellar, the band and one of the all-time great singers at peak form, totally nailing the song. Also, check out the kid rocking out on the bannister.


A McEwen Mining (MUX.to) (MUX) report in Spanish: Now that's what I call wishful thinking

Here's the link dated Sep 27th (i.e. today) and in case it accidentally gets pulled or changed like, here's a screenshot:


Yup, that headline (and topline of story) says the Los Azules copper project owned by McEwen Mining is in Chile.

Newsflash: It's not.

UPDATED: IKN gets mail from Prophecy Coal (PCY.to)

IKN Nerve Centre™ today received this mail (phone number slight redaction, rest as per):

Dear Sir,
URGENT
Please remove  below posts:
http://incakolanews.blogspot.ca/2013/09/the-prophecy-coal-pcyto-leak.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed:+IncaKolaNews+(inca+kola+news)

This post contains confidential information illegally obtained with a recent server breach at Prophecy Coal Corp.
Bekzod Kasimov
Business Development Manager, Prophecy Coal Corp.
+976 9901 XXXX
email: bekzod@prophecycoal.com

Personally I think it must be a mail from a fake account, or perhaps someone's compromised Bekzod's mail account at PCY. After all, any real Biz Dev Mgr would understand the concept of public domain material and therefore...


UPDATE: IKN welcomes Stikeman Elliot LLP, legal advisors to Prophect Coal (PCY.to): Glad you could drop by, guys!

Dilma goes social

Today's been a cyberfest for fans of President Dilma Rousseff of Brazil. Not only has she re-activated her twitter account and has been chatting away to the world all morning after a gap of nearly three years, but via Twitter she's had a long exchange with the funny satirical fake Dilma account here (which was in great humour and the real Prez has endeared herself to most everyone wtaching, including your humble scribe) and to top it off has started an Instagram account, with this shot the first to appear:


This came from a couple of days ago, when the Brazilian artist Romero Britto presented Dilma with this portrait (for what it's worth I adore). She also says she'll be on Feibu soon.

VeneBirtherism: Groundhog Day

The main problem with the Venezuelan opposition is that it's led by a total asshole. Never mind that in July this year when the Maduro birther issue started getting headlines it was slapped down in no uncertain fashion (and by way of reminder)...
"The Public Records Office in Colombia, in comments to AP, makes it clear that the "birth certificate" at the centre of the growing scandal is a obvious forgery; the dates are wrong, the number on the paper belongs to somebody else and the person who supposedly emitted the certificate had already been retired for two years before it was signed, making the forgery pretty darned obvious. And right on the heels comes Maduro with his first statement on the birther story just a few minutes ago, saying that the Venezuelan right wing (i.e. Capriles, now with a large plate of huevo splattered all over his cara) had been taken for a ride by a demented ex-senator from Panama."
...oppo leader Capriles is again trying to breathe life into the cause as he must think it's a way to gain traction. He's an utter dumbass, period. Bottom line is that until he's thrown off the podium and the opposition in Venezuela gets somebody that isn't a laughing stock, Maduro is going to be safe and calm as President, no matter how mediocre he might be (and he is, but then again Hugo is a tough act to follow).

Chart of the day is...

...Vista Gold (VGZ.to) (VGZ), 12 months, considering that we got this from the company yesterday:

DENVER, Sept. 26, 2013 /PRNewswire/ -- Vista Gold Corp. ("Vista" or the "Company") (NYSE MKT and TSX: VGZ) announced today that it is the Company's policy not to comment on unusual market activity, but the Company wishes to confirm that it is not aware of any undisclosed events or information that would explain the recent high volumes or unusual price activity of its shares.
Here's the chart:



Are these jokers fucking serious? The stock runs from $3.84 to $0.49 in the space of one year (that's -87% to you madam/sir) and we're now supposed to care...because of the dumpage volume? Yet another window as to why this stock, and juniors in general, have done so badly recently; they're run by very very stupid people, evidence abounds.

A Flash update...

...has just been sent to subscribers, an hour and 10 minutes before the opening bell on this Friday morning. It has words in it.


9/26/13

Why The USA spies on Brazil

The rarest of article; something worth reading in The Miami Herald. Here's a snippet

His explanation was starkly frank: 
“From Washington’s perspective, the Brazilian government is not exactly friendly. By definition and history, Brazil is a friendly country that sided with us during World War II and Korea, but its present government is not.”
Read more here: http://www.miamiherald.com/2013/09/25/3650784/why-we-spy-on-brazil.html#.UkQmEilSMv8.twitter#storylink=cpy
continues here

PS: By the way, things like this quote show just how amazingly ignorant and stupid The USA is regarding South America, as the number isn't just false but way way false and yet another dumbass gringo confuses coca with cocaine. Will teh stooopid ever stop?
"The production of Bolivian coca has multiplied fivefold since Evo Morales became president, and the outlet for that substance is Brazil."


Checking in on the major news out of Exeter Resources (XRC.to) (XRA)

Despite being subject to a major alert by paid pumper "Big Al" Korelin (who's been in the pocket of Yale Simpson for years) the reaction to Exeter Resources' (XRC.to) (XRA) big vaunted direction stragegic superduper improved change on Monday Sep 23rd has been...




...or put another way, this:




x

The Prophecy Coal (PCY.to) leak

You may be wondering what this NR from Prophecy Coal (PCY.to) this morning is all about:

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sep 25, 2013) - Prophecy Coal Corp. ("Prophecy") (PCY.TO)(PRPCF)(1P2.F) -
The Company has learned that correspondence it received from the Toronto Stock Exchange has been improperly disclosed to the public. The Company is in the process of preparing a response to this correspondence.
If any material information arises from this exchange of correspondence, the Company will disclose such information in a timely manner.
About Prophecy Coal
The answer is that somebody left this below on a bullboard. The bullboard posts have now been deleted but IKN....well, here it is for your information. It's a letter dated September 10th from the TSX (and I really like number 4)

Required Information
As part of this review, TSX requests that you supply the information itemized below within fifteen (15) business days from the date of this letter. TSX requests this information in connection with our fact gathering process and no inference of impropriety should be drawn from this inquiry.
1. Please describe in full detail the process the Board employed with respect to the nomination of Mr. Baz as a member of the board at the July 30, 2013 annual general meeting. Explain whether the Board considered the attendance record of Mr. Baz during the past year?
2. Explain and detail how the Company's Board believes it is appropriate for Mr. Baz not to attend Board meetings and be a member of the Board? Explain whether an annual performance assessment was completed with Mr. Baz? If one was completed, please explain the findings.
3. Provide a chronology of events regarding the change in role of Mr. Lee from Chief Executive Officer to Executive Chairman and Interim CEO. Specifically, what was the exact date of Mr. Lee’s change in role?
4. Explain why a termination fee of $525,000 was paid to Linx when Mr. Lee continues with the Company as Executive Chairman?
5. What are the Company’s role descriptions for Executive Chairman and CEO? How do these two roles differ within the Company? In your response, explain why the April 3, 2013 Annual Information Form indicates Mr. Lee is President, CEO, and Chairman from October 2009 to present and how this is different from his role as Executive Chairman.
6. Please advise and detail what actions the CGCC has taken to appoint a new CEO? Provide any supporting documentation including meeting minutes.
7. According to TSX records, a Reporting Form 3 is required for the appointment of Mr. Jeffrey Mason as CFO, Mr. Harald Batista as Director, Mr. Samir Devendra Patel as Corporate Secretary and the resignation of Mr. John Lee as CEO and appointment as Interim CEO. Please complete the required filing on SecureFile within five (5) days of this notification or advise when the Company has previously made the filing so that we can verify our records.
8. On April 19, 2013, TSX reminded the Company of Reporting Form 3 requirements. This is the second reminder TSX has issued the Company regarding Reporting Form
3 requirements. What procedures has the Company initiated to ensure going forward its Reporting Form 3 requirements are met? Please provide any documentation.
9. In accordance with section 11.3 of National Instrument 51-102 – Continuous Disclosure Obligations, please confirm the Company has or will be filing Report of Voting Results regarding the July 30, 2013 meeting.
10. Please confirm whether the Company has adopted a majority voting policy? If so, clarify the statements made in the MIC and the news release of August 1, 2013. If not, please advise TSX about the intended date(s) of adoption.

UPDATE: And don't miss out on the follow-up in the series, when PCY.to asks IKN to take this post down.

9/25/13

Annals of No Shit Sherlock, Chuck Jeannes edition

Here's the report, here's how it starts:

Chuck Jeannes, president and CEO of Canadian miner Goldcorp (TSX: G, NYSE: GG), believes that additional investments in Argentina will be "very difficult", given the complications the mining industry faces in the South American country. 
Speaking at the Denver Gold Forum, Jeannes said that working in Argentina "has not been easy," as the company has had to deal with government, monetary and labor issues.

Y'see, it's never the CEO's fault that he pays $3.4Bn (with a freakin B) for a gold deposit in Argentina from his pally pal Hubert and the deal blows up in his face afterwards, it's those pesky politicians who refuse to play fair. He was just unlucky, y'see.

A Flash update...

..was sent to subscribers, post-bell Wednesday. A bit of news.

Your 6.9mag earthquake of the day

Right here:



Betcha the guys at Shougang Peru enjoyed that one, because they're pretty close to the stretch of coast that saw the centre and it was felt all over the South of the country, including Cusco, Arequipa, Huancayo. A tsunami alert has been issued but at 6.8/6.9mag and 33km depth it's probably not big enough to cause a serious wave, happy to say. Particular whussiness coming from Lima-based twitter users. Just another bunch of cityfolk who need to take some advice from Chopper Reid, basically:




So now we know why Eric Sprott sold 6m shares of Sprott Inc (SII.to) last week

He was offered gold at U$1,200/oz. And hey, who can resist a bargain these days, right?

Barkerville explains all, here.



Thinking about cost inputs...

...and therefore decided to scribble on this oil price chart:


Cut the thing into financial quarters and stuck in a blur bar to estimate quarterly averages. Note to self complete, shared, have nice day.

Chart of the day is...

...gold dailies and a quote from Reuters. Here's the chart...


...and here's the quote (from here):
"We are seeing very slow demand as people are still bearish," said Peter Fung, head of dealing at Hong Kong's Wing Fung Precious Metals. "They are waiting for prices to fall below $1,300." 

By my eye on that chart, those waiting for sub-1.3k look likely to get their wish.

9/24/13

"Buyer Beware: How to Identify Companies That Waste Shareholder Dollars"

That above is the title of this piece from the guys over at Visual Capitalist and as the work those guys do is generally pretty good I'm happy to put the link in front of the highly esteemed readers of IKN (and even the lowly ones) in order that more eyeballs make it over there.

What the VC numbercrunch does is to compare G&A expenses at juniors to total expenses, come up with a ratio and from there posit as to whether your junior is using its cash wisely, or is maybe, just maybe more interested in signing management salary cheques (oh, perish the thought). Although the ratio isn't a perfect system it's probably a good rule of thumb for screening purposes and the VC note also gives us specific examples of companies which, in their opinion, are saints and sinners when it comes to spending shareholder cash wisely. So here's the link to the note again, go have fun.

"Where's the gold, Brown?"

Gordon Brown's sale of the UK gold reserves at the very bottom of the market is part of any self-righteous self-respecting goldbug's armoury of Things You Say About The World, but we now find out that it really bugs Gordon Brown, too. According to Brown's political confidante and spin-doctor Damian McBride's new autobiography, when he became PM Gordon Brown used to practice being heckled in order to prepare himself for speechifying to potentially hostile crowds. He'd rehearse his speeches and McBride's job was to shout abuse at him while he did his dry runs.
Favourite heckles were: "You stole my pension, Brown!", "You're a bigger bastard than Blair!" and "Where's the gold, Brown?", which particularly infuriated him. Sometimes he could not help shouting back.
I like that.


Checking in on Lydian International (LYD.to)...

...and how it's been getting on since last week's three-pronged NR charm offensive:

The pep talk progress report on Wednesday morning

The shiny new COO announced the same day

The cool drill results next day Thursday Sep 19th



Really, that well? Betcha that new money isn't worried at all about the political risk profile. What's Armenian for NIMBY, anyway?

Shorter Roque Benavides at Denver Gold

The longer version of the Buenaventura (BVN) speech is on the 20 minute presentation here.

The shorter version:

  • Conga is delayed
  • Chucapaca doesn't work at this gold price
  • We got this little thing we're working on
  • We need to buy something fast

UPDATE: And for those who thought this was some kind of jolly jest when it was posted at 10:52an EDT this morning, here's Rootrz with the latest from Newmont at Denver Gold and how no decision will be made on Conga before 2015. If this reminds you of IKN's position re. Conga last week when the Perumin fawning BVN lovefest was in full swing, it's probably not a coincidence.


"It is a breach of international law, it is unacceptable, we want an apology"

That was Dilma Rousseff at the UN General Assembly just a couple of minutes ago, telling The USA what she thinks of its NSA and the way they've been picking up her own e-mails without asking nicely first.

But don't worry, it's only the UN, it's not as if The USA ever pays attention to anything said there.

PS: We also liked this Dilma quote in the speech: "In the absence of the right to privacy, there can be no true freedom of expression and opinion, no effective democracy". 100% agreed and if anything, it's even more damning than the previous demand for an apology, because it requires no response from the arrogant country up North.

UPDATE: The full speech in English has just been published by the official General Assembly channels, find it here on this link.


9/23/13

IKN is keen that you understand just why Honduras as a country is totally fucked and will continue to be so forever

On November 24th this year, Honduras gets to choose a new President (and congress) and here's a quote from over the weekend from one of the candidates for The Big Job, TV personality Salvador Nasralla. Quote from here (translated):
The Presidential candidate for the Partido Anticorrupción (Pac) (The Anticorruption Party), Salvador Nasralla, considers himself  "a messenger of God" to "save Honduras".

He said, "I am a messenger of God. God has a purpose for every human that is born and God's mission for Salvador Nasralla is to be President in order to choose honest, God-fearing people to make the changes that the country needs."

And this isn't some sort of fringe candidate either, kind reader of IKN. This dude is currently running second in the polls at 21%, behind front-running Xiomara Castro (at 28%). And as she's wife of the deposed Mel Zelaya (remember that one?), there's no guarantee she makes it to November in the lead.

Totally, totally fucked forever. Mind you that's how the North likes its Banana Republics, is it not?

Not very Klever

Klever Meléndez Gamarra is President of the Pasco region of Peru (one of the country's 23 regions, his job is the rough equivalent of a state senator in the USA) and last Saturday was supposed to have been a big day for him, as he was getting married to the very pretty Rosario Valencia Huamán (who at 29 years old is 24 years his junior, as a minor sidebar comment). Sadly, the wedding at the region's main church, Huancayo Cathedral, had to be called off when Klever's present wife turned up with papers to show that they were still married, sat down in the church and waited for the (until that moment) happy couple to arrive. 

Mr. Klever then told the archbishop who was supposed to be doing the gig that day that he'd been separated from his wife for over 10 years and that the divorce papers were going through. Amazingly, the ceremony was then called off, much to the amusement of everybody. Except Rosario, of course.

All in all, not the best day for a region's political head.

Q: What's the maximum penalty for bigamy?
A: Two mothers in law.


Orvana (ORV.to) has a nice snippet in its NR today

I liked this, from Orvana Minerals (ORV.to) today:

"In addition, initial work on the marketing study has indicated that transportation costs will be significantly higher than the $25 per tonne estimate contained in the Feasibility Study with a low end of the range of approximately $100 per tonne if the smelter(s) are in North America and a high end of the range of approximately $200 per tonne if the smelter(s) are in Europe or Asia. While external parties have expressed interest in off-take agreements, no agreements have yet been finalized pending financing and a final construction decision."
Y'see, this cockamamie industry wants us to trust the word of companies when they publish a feasibility study. Not a "PEA" or a "Scoping Study", that's little more than a best guess, right. Not a "Pre-Feasibility Study" which is getting there but still prone to adjustments. Nah man, we're talking "Feasibility Study", the expensive documents with which you prove the economic worthiness of your project and then run off to the banks and get money to build the thing.

Except...errr...sometimes they add inputs to the Feasibility Studies that are off by a factor of four. Or eight. Right, Orvana? And nobody will care, nobody will make a fuss, life will go on as always. Then the industry leading lights will gather around cocktails at their conference meetings and wonder why the world has decided that they're not such a good risk for speculative investment cash. Assholes.

McEwen Mining's (MUX) (MUX.to) Los Azules PEA

In the space of the first half hour of the working screen day your humble scribe is asked for a comment by one regular reader and then another mail is picked up a mail on the subject. Therefore to nip this one in the bud, here's a quick post on the PEA announcement for the McEwen Mining (MUX) (MUX.to) Los Azules copper project. 



Hey people, we all know that Robbie Mac is a visionary source and an inspiration. But so is ayahuasca.

Chart of the day is...

...Peru's IGBVL 'General' index versus gold (GLD):


The correlation continues. Most impressive. Here's the last quarter in close-up:



Tight as a duck's sphincter.

9/22/13

The IKN Weekly, out now



IKN229 has just been sent to subscribers. A fruity little number with hints of lychee and well-balanced acidity that will pair nicely with flounder or sea bream.

Peru new vehicle sales: A bad August

Just last month we noted that in Peru, new vehicle sales (one of the better datasets to gauge consumer sentiment in any given country) were signalling that growth was slowing. This was confirmed in spades by the August number:




The absolute figure is 14,853 new vehicles sold, the worst monthly number since February 2012. The percentage tracker is an 8.02% drop year-over-year compred to August 2012, the first YoY decrease in sales since 2009. It's not a datapoint that's had much airtime yet in Peru, what with the country's typical lapdog attitude and prozac preferences when it comes to economic data. But this is a big lapse and alone may account for the disappointing +4.5% GDP number we saw for August, when all were expecting at least 4.75%.  Datasource AAP