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11/1/14

The Wikipedia page on Culture is excellent

I read in this piece today that Argentine philosopher José Pablo Feinmann plans to return the award given to him by the city of Buenos Aires, the 'Distinguished Personality of Culture' award, because the city has recently given the same award to Marcelo Tinelli. For those who don't know, Tinelli is a highly successful TV personality and celebrity figure in Argentina, very rich and very famous from his decades in shows and program production based around a popular entertainment format that these days includes dance reality shows as well as the typical false polemics, gossip and simplified sktech type humour of the genre. For those who do know Tinelli (and Feinmann) it won't come as much surprise to hear Feinmann's complaints that Tinelli produces rubbish for the masses in order to idiotize society and that he doesn't want to be thought of in the same room as him. 

OK, fair enough, background over but the piece really got me thinking about the word 'culture', its origins and development and what we the 21st century human understands by the term because my natural reaction was to side with Feinmann, but it got me wondering just what culture is...and why we automatically assume it to be high-falutin' brainwork rather than the type of facile entertainment that Tinelli and his ilk produce. Which is where Wiki comes in because the days when you'd look up things on Wikipedia and not tell anyone your reference for fear of ridicule are long over. My how Wiki's grown up and if you don't believe me, take a look at the superlative discourse it gives on the word culture, right here. It's seriously the best thing I've read all week.

Guerrero Mexico: Read The Mex Files today

The ongoing drama (not an exaggeration to use that word) of the 43 Guerrero region students (some still officially missing, some already confirmed dead) took a wild turn this week and The Mex Files has the headsup you need. The place is a tinderbox.

Sprott Physical Gold Trust (PHYS) (PHY.U) insider selling

Somebody named Eric Sprott...



...yesterday exchanged just over two million dollars' worth of gold bullion for that worthless fiat currency. Filing here

10/31/14

The Friday OT: The Stranglers; Walk on by

On Tuesday I read that this track had been voted the third best cover version ever in some poll or other. The memory surge was strong, having bought the single and having played it to death once upon a time.


So off to the youtuber machine and...oh yeah, still a strong piece of music. Like the best covers, it takes the original song and goes in a different direction, leaving the original revered and respected. Great intro, top keyboards, just go for a stroll in the trees.


How we know the selling in junior miners isn't over yet

The market still thinks Great Panther Silver (GPL) (GPR.to) is worth over one hundred million dollars as a company. The end.

Chart of the day is...

...gold, hourlies:



But fear ye not, mortal, as tomorrow is All Saint's and evil will be banished from the Earth. Or summink.

10/30/14

Sheldon's bonuses

Thanks to reader MB, these fun little datapoints reach IKN Nerve Centre™


Now is that cool data or what? Thanks MB.

Yes indeed, Sheldon raped his vehicle by that amount in 2011, including a $1m salary, $32.2m in cash bonus (seriously) and the rest in options. Hey, I wonder if he'll hand any of that money back in order to get his company through the hard times?

This Thing Isn't like That Thing, Burkina Faso edition

This thing:

Interest in Burkina Faso's resource potential continues to grow with 7 producing gold mines built since 2007 ranking it 4th amongst the African nations, and it is now attracting the interest of mining companies because it is a politically stable democracy with good infrastructure.

That thing:

Protesters angry at plans to allow Burkina Faso's President Blaise Compaore to extend his 27-year-rule have set fire to parliament.
Correspondents say the city hall and ruling party headquarters are also in flames.
A huge crowd is surging towards the presidential palace and the main airport has been shut.
MPs have suspended a vote on changing the constitution to allow Mr Compaore to stand for re-election next year.

Pinetree (PNP.to) distressed selling continues

Lookie at what Sheldon did to Coro Mining (COP.to) yesterday at the close:


Betcha they're more worried at PNP about this price than they are at COP.

UPDATE: Oh, just noticed that Iwnattos has a lot more on Sheldon today, does it much better than here too. It has all the look of a small empire crumbling to veritable dust. Go see this.



Dalradian (DNA.to) provides a market litmus test

The news out from Dalradian Resources (DNA.to) today is strong and positive. Reading the whole thing is recommended but for the tl:dr among you, the title of "Dalradian Announces New PEA With 36.2% After-Tax IRR Using $1,200 Gold for the Curraghinalt Deposit in Northern Ireland" contains the main elements.

  • You got a new PEA
  • You got a strong post-tax IRR
  • You got that even at today's lower gold price.

Which brings us to the reason for the post, because under "normal" (whatever that might mean) market conditions for juniors, you could guarantee a decent pop and sustained higher price deck for the DNA.to stock price. But as you probably know this isn't a normal time, juniors are in the deep funk, people losing jobs in all places, Bay St divorce rates ticking up, weallgonnadie etc so I'll be watching DNA action today and tomorrow to see how it gets on; a better sentiment indicator for the sector is difficult to imagine.

Full disclosure: Yes I'm just watching today, because I own some DNA.to, I first bought in October 2013, added some reecently and my cost average as stands is 64c. It's one of the very few pure exploreco plays I like at the moment, not planning on selling anytime soon. 

Chart of the day is...

...the US Dollar index (USD). Again.


Because it's the centre of all things once again.

Remember that peak and blowoff top of a few weeks ago? Well we're back there again and you, I and everybody else should watch very carefully to see if it holds. Last time the USD was bought on the Fed decision and then sold on the minutes. Today...well, it's being bought on the decision again.

So it goes.

Things that Steve Todoruk of Sprott needs to buy

1) A dictionary. It's Colombia.

2) A map. It's not where you think it is. Honest. Buy one, look, check carefully the relationship between Ecuador and, let's say, Argentina. Or Chile. Or Brazil.

This is how this piece written by said dumbass gringo begins.



Cute, huh? And of course, because he wears a suit and gets published he'll still want us to take him seriously about his expert views on the mining industry in Ecuador. Won't occur to him that getting the basic location right isn't anything more than a minor technical detail. Or being able to spell one of its only two neighbours correctly. Because that's how morons use their brains.

He'll probably blame a secretary or Bill Gates' autocorrect or summink. Innit.

PS: Ecuador's surface area is greater than that of The United Kingdom, Steve. Buy a pocket calculator as well.


10/29/14

Fed reaction in three gifs




Somebody please tell the British press corps that it's Colombia, not Columbia

Ferfuxsek, it's 2014. Dumbass gringos.



From here.

Pinetree's liquidity issue

Seems to your humble scribe that Sheldon Inwentash has some pretty urgent liquidity problems at his Pinetree vehicle. As well as the share dumping of African Gold (AGG.v) we reported yesterday, Sheldon and his pals have been hitting the big red sell button on holdings of Integra Gold (ICG.v), Mega Precious Metals (MGP.v), Newport Exploration (NWX.v), European Uranium (EUU.v) and Coro Mining (COP.to) to name but five. Notably, on at least two of these positions, COP.to and ICG.v), Sheldon was recently adding by the millions just a few scant days ago at higher prices, which adds an extra set of question marks to these particular dumpages.

A shame. Couldn't happen to a nicer person.

UPDATE: Add U308 Corp (UWE.to) and Mega Uranium (MGA.to) to the list.

UPDATE 2: Kind reader G gives your humble scribe the headsup on Stockwatch, which has also noticed Pinetree's apparent distress.
Finally, Sheldon Inwentash's Pinetree Capital Ltd. (PNP) slipped 1.5 cents to 16.5 cents on 1.16 million shares. As we discussed yesterday, Pinetree seems to be on a selling spree, having sold 5.8 million shares of African Gold Group Inc. (AGG: $0.04) last week. The sales left it with 15.9 million shares, but today African Gold traded another 22 million shares, making it the most-active stock on the TSX-V. It told IIROC it had no material changes. International Northair Mines Ltd. (INM: $0.07) was the second-most-active trader, slipping one-half cent to seven cents on 7.4 million shares. Mr. Inwentash and Pinetree own 11.7 million shares of this company, and have yet to disclose any sales on SEDI. The third-most-active trader was Macusani Yellowcake Inc. (YEL: $0.04), which closed down one cent to four cents on 5.99 million shares. Mr. Inwentash and Pinetree own 3.1 million shares of this company, after unloading 18 million shares at four cents last week. Pinetree is in need of cash. It had $150,000 as of June 30, at which time it valued its investments at $188-million. This is down from $609-million three years earlier, when the stock was trading over $2.

Anglo American and Galbraith's bezzle


"At any given time there exists an inventory of undiscovered embezzlement in — or more precisely not in — the country’s businesses and banks. This inventory — it should perhaps be called the bezzle — amounts at any moment to many millions of dollars. It also varies in size with the business cycle. In good times people are relaxed, trusting, and money is plentiful. But even though money is plentiful, there are always many people who need more. Under these circumstances the rate of embezzlement grows, the rate of discovery falls off, and the bezzle increases rapidly. In depression all this is reversed. Money is watched with a narrow, suspicious eye. The man who handles it is assumed to be dishonest until he proves himself otherwise. Audits are penetrating and meticulous. Commercial morality is enormously improved. The bezzle shrinks."
John Kenneth Galbraith's famous definition of what he called 'the bezzle' springs to mind on reading the fun and games that have been going on at Los Bronces, Anglo American's big copper mine in Chile (50.1% Anglo, minority ownership Mitsubishi and Codelco). I'm a little late to this story as it was broken by Chile's superlative website The Clinic on October 24th and I only read about it today, but the nub of the matter is that Anglo American has filed suit against one of the firms it contracts at the mine to the tune of $1.2Bn dollars.

Yes, that's a B. It's one point two billion dollars. Check The Clinic on that above link for the full story but in essence the suit has been brought because Anglo's beaks have finally discovered, after years of being unknowing victims, that the contractor has been clocking its vehicles, i.e. fiddling with the gauges that note how long the machines have been working (they're called "horometros" in Spanish, I think the correct term in English is tachymeters but I'm not sure and anyway, you guys are smart enough to get what we're talking about here). The fiddle is known as "chicken pecking" in local slang and from the way it's apparently universally accepted by workers at the mine and part of the day-to-day language, Anglo now strongly suspects it's been ripped by other contractors it has at the mine. Maybe in other places, too. 

As for this case the contractor now being sued, named Tranex, has been working at the mine since 1992, which basically means Anglo's management has had their collective crania up their collective recta for over 20 years. Nice job, guys.

And thus another bezzle is discovered.

Your B2Gold (BTG) (BTO.to) free passes...

...as delivered by the sycophants in suits who sell their placements to you.

Ah wuz shocked, shocked ah wuz that Canaccord gives BTO a totally free pass on its 3q14 numbers:


Though this from GMP is an example of the more typical nuanced free pass. Note how they grumble and groan and call it negative...then right at the end reiterate their rating and price target. 


In other words you the anal yst...

1) Read the NR
2) Spot the obvious problems
3) Write about the obvious problems
4) Ultimately ignore them
5) Get back to the serious morning matters matter of choosing your lunchtime restaurant and securing a strategically high-value table from the maitre dee.

Brokerage anal yst, what a great job. Beats working or thinking for a living.

10/28/14

Ebola spam mail

From your author's spambox today. Nicely done, Nigeria.

Mining PRs and the Ottotrans™, Part 87


Number 87 in our occasional series comes today from African Gold (AGG.v).

This is what they wrote:
TORONTO, ONTARIO--(Marketwired - Oct 28, 2014) - African Gold Group, Inc. ("AGG" or the "Company") (TSX VENTURE:AGG), responding to a request from the Investment Industry Regulatory Organization of Canada, wishes to confirm that the Company's management is unaware of any material change in the Company's operations that would account for the recent increase in market activity.
About African Gold Group
 And this is what it means
TORONTO, ONTARIO--(Marketwired - Oct 28, 2014) - African Gold Group, Inc. ("AGG" or the "Company") (TSX VENTURE:AGG), responding to a request from the Investment Industry Regulatory Organization of Canada, wishes to confirm that the Company's management knows that Sheldon Inwentash is dumping the merry fuck out of its stock but doesn't know why. He's doing it on other positions, too. So stop asking us. 
About African Gold Group



Let's see what Freeport (FCX) has to say about its exploration activities in Serbia

From the 3q14 earnings call, today:


“Now Serbia. There's nothing in the natural resource business like Greenfield exploration. I mean nothing. The idea of making some investments in exploration defining a new asset in creating huge value. That is the happiest day you can have in a company like ours. And you know in the oil and gas business it happens a lot more frequently than it does in the mining business and that is again the support of about prices you go back to you think what are the big success stories you know during my long career in the mining business Greenfield exploration. They are few and far between. Few and far between. We have an active program Jim Bob worked with and we find Junior mining companies around the world on exploration concepts that have the potential to be big. The to look at anything unless it has the potential to be big. So that is why you haven't heard from us about this program. This does. You've been there. There have been some really exciting core holes that are controlled. A lot of work needs to be done. It's in an area that's traditional mining area for the government of Serbia is very anxious to see us come in and invest. The current status is we are not actively drilling out. We are working on partnership arrangements with our partner there. I saw them briefly in London when I was there last week. And we are excited about it. But it's longer-term a lot of work to be done but it is a greenfield project that if it is successful could add a lot of value to the company."


Vancouver Venture takes a fond look back at Peak Oil

And also notes Goldman Sach's impressive BSsing of the market when it comes to oil, then and now. For your viewing pleasure, right here. Funniest bit of all; you dumbasses still swallow the GS line. 

A Flash update...

...has just been sent to subscribers, 45 minutes after the open on this beautiful Tuesday morning. A near-term trade, should help pay for the trick-or-treat toothrot and the pumpkin pie.

Yes, Red Kite has taken a majority position in LME copper. So freakin' what?

Due to the slow news week pre-FOMC, or the dearth of interesting things in the metals world, or the attempt to ignore just how shitty the mining stocks are right now, or something the world seems enrapt with the news that Red Kite has moved heavily into LME copper and now holds control over between 50% and 80% of total inventory. I've had the news sent to me by a goodly handful of people (which is appreciated, people) though it's been notable that each sender has sent a different version from a different news org. It's also notable that the constant line is something around, "Well we think this is important but darnit, we don't know why, but fukkit let's run a story anyway". Typical is this report from Copper Investing News that begins this way:
"It’s unclear why a single buyer is holding such a large amount of the copper stocks in London Metal Exchange (LME) warehouses, but..."Stop. Right. There.
But. Nothing.

If you don't know why, that's fine. It's unclear, we agree. But chattering class waste-o-time journalism being what it is you can't stop there, so Copper Investing News then regales another 592 words (yup, counted them via a paste into Word and the function) on this and that and what theory and other theory, etc etc ad infinitum. That's 592 words too many, C.I.N. ; if you don't know say you don't know then STFU, we out here have better things to do than read your script onanisms. Trimming toenails, for example.

When the news broke yesterday morning I sat back and thought of reasons as to why Red Kite might do such a thing, in about three minutes of vague reverie got to half a dozen reasonable explanations and then gave up. Overall, the main point we need to consider is that Red Kite is a) the world's biggest copper trader and b) a hedge fund operation. Those two are the big clues, because there's zero chance that taking such a position in the public pit is unrelated to its other deals, trades, business and operations. And as we don't know what the internal trade-offs are for Red Kite and copper, there's no point in trying to guess.

All that's a long-winded way of saying that if you immediately jump to the conclusion that this Red Kite copper news is bullish for the metals price, you need to reconsider your overall aptitude towards trading on capital markets. And yeah that last bit was me putting it nicely, how did you guess?

The gold/copper ratio, a revisit

The referenced chart of October 22nd found here. Today's update here:


B2Gold (BTG) (BTO.to) 3q14 production

A mediocre quarter. Here's the NR, here's the gold production chart:


And here's how it breaks down into its three working mines:

  • Libertad did well enough.
  • Limon was well down due to water problems (no mention that killing employees due to the water problems was a main part of the issue, but hey...capitalism)
  • Masbate underperformed again.

For the excuses and reasons, see the NR. The upshot: 2014 is a miss for The Clive and his outsized ego with the magic phrase being...
"...due to lower than anticipated production in the third quarter, the Company now expects its full-year 2014 consolidated production guidance to be marginally lower than previously guided."
...and the rest is just noise, though his sycophants are bound to latch on to how wonderfully Otjikoto is going and how first pour is due in December and love and flowers. That's a fail, Clive. Fail. You fail. Failure.

10/27/14

The most interesting slide of the Lundin Gold pitch...

...is this one. It contains the state burden expectations for the Fruta del Norte (FDN) project in Ecuador.




One of those occasions when reading the footnotes pays off.

Employment opportunity for mining engineer

Stantec in Tempe Arizona is looking for a mining engineer. The person who sent me the job info (ty sir) tells me they're a reputable outfit. Read all about the job offer on this link.

The IKN Weekly, out now




IKN285 has just been sent to subscribers. We look down at the penny end this week. Meanwhile, learn more about Thailand's award winning nail polish remover, Blend 285, at this page.

10/26/14

The IKN Brazil election prediction from October 13th

Here we are tonight, with Dilma declared the winner with 51.64% of the vote. Here's what your humble scribe predicted on October 13th, screenshot for easy reading:

I'd consider that a reasonably accurate prediction. Original post right here

BREAKING: Dilma wins


She also won the world's best election artwork award

The fast count numbers just released say that Dilma Rousseff has been re-elected in Brazil with 50.99% of valid votes, with 4.7% of fast count votes left to be tallied. Therefore it's close enough not to be able to call on the (normally very accurate) fast count and we'll have to wait until something official comes later, but the chances of Aecio Neves (on 49.01%) are now very slim indeed.

UPDATE: With 96% of votes, Dilma's now on 51.09%. This one is over.

UPDATE 2: 97% of votes counted, Dilma 51.32%, Aécio 48.67%. What's more, we hear the few remaining votes to be added are from the Northeastern region which is a PT (Dilma's party) stronghold. We may get close to my 52/48 guess after all, but the main news is now a done deal. Dilma wins.