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...has just been sent to subscribers. A quick comment on the IRL news, the main report and analysis will be in IKN329, out this weekend.
Daryl Hodges this morning failed to be ratified as a director of Minera IRL. Shareholders have voted him out by majority.
Minera IRL (IRL.to) (MIRL.L): The liar Daryl Hodges tries the Shiny Bead technique on the locals of Ollachea
PS: Oilpatch watcher Setty makes a point about the gold/oil ratio and what it might mean for the gold mining stocks in his latest post, here.
PPS: Regular mailer DW just wrote in to ask about this call in the "Ten IKN random predictions for 2015" dated December 29th 2014:
1) Gold to trend up gradually, with a rough U$1,400/oz target for some time at the end of the year. For sure with the normal wobbly stuff along the way and I wouldn't bat an eyelid to see it go under U$1,100/oz again at some point or other, but talk of its utter demise (South of 1k) strikes this author as plain silly talk from people who don't get the sector.His main question (excerpted) was...
...and as I'm fiddling around with PS's on this short post, let's do it here. (Humble scribe's note: Ladling on the congrats and doing the general ego-massage is a good way to get me to answer the thing that matters, DW isn't stupid and I'm pathetic like that).
Honestly DW, I'm happy about the rest of that forecast (yes, the "only spike under $1.1k" has worked out) but think that these days $1.4k is too far to reach and my forecast will fail. I think there is upside in gold, U$1,200/oz year-end is eminently gettable and if you want a real stretch, I'd give U$1,300/oz an outsider's chance. However (and there's always a mitigating factor) I still think the decent end of the producing gold miner sectors are good buys right now because revenues from sales are only half the story. Costs are the other and they're dropping for the operators. That means margins are beginning to grow again and the better quality stocks in the gold sector, the ones that have 1) strong/reasonable balance sheet positions and 2) have done the heavy lifting in the hard times so that now they're mean lean profitable machines, are cheap and ready for their upmoves.
So there you go.
"Anything is possible at the Copper Mountain Mine
Where the impossible gets done every time"
"Against all odds we make copper from ore
While the ball mills roll our Japanese friends need more"
"The wise investor knows when it's time to hold on"
But there was a big surge in revenues from the highs in gold prices, which reverted once the big drop happened in early 2013:
But this also shows how there was a big surge in Year-Over-Year revenues, then a corresponding drop, and now things have basically flattened out:
UPDATE: I grant Rick Rule plenty of kudos today. His timing may not be the best and he may have deployed cash too early, but I've watched carefully his strategic reading of the market and his thesis on a move to capitulation, in 2014 and 2015. What we've seen in August fits exactly into his playbook.
UPDATE 2 early afternoon: For a day in which, according to them there experts at least, I was supposed to be looking on at the death of western civilization and all equities amen, there's a fairly decent smattering of green on the screen now. And yeah, I did my pre-announced bits of buying earlier. Just sayin'.
UPDATE 3 at the close: Hah! Spoke too soon. I've never been good at micro-reading these volatile days.
UPDATE at opening bell Monday: The GSR just went through 79X.
Out four minutes ago, link here:
LIMA, PERU--(Marketwired - Aug 24, 2015) - Minera IRL Limited ("Minera IRL" or the "Company") (IRL.TO)(MIRL.L)(MIRL.L) announces that the Board has unanimously voted to remove Diego Benavides from the position of Interim CEO of Minera IRL.
The Company is also investigating allegations of impropriety received through its recently implemented and independently managed Whistleblower hotline. The investigation will be overseen by the Company's independent members of the board, Doug Jones and Robin Fryer. Additional detail will be provided as it becomes available.
About Minera IRL Limited
and the first motion, all the interim is
Like a phantasma, or a hideous dream.
The genius and the mortal instruments
Are then in council, and the state of a man,
Like to a little kingdom, suffers then
the nature of an insurrection.
One source joined the company from another brokerage just after the time Hodges was made CEO and headed the
Good Sunday evening,
Please find attached IKN328. There's a lot in this week's edition, with some of the main content being:
- I'm either buying or adding to five gold stocks
- More on the situation at Minera IRL
Lots more too, 34 pages and 17,000 words.
- An extended feature on Guatemala politics and political risk
All feedback welcomed.
How banks are getting people hooked into unpayable debt in Peru: