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Now at 364 million Youtube plays (just the official version, there's about a squillion remixes out there too). Pepsi product placement, deluxe video, the whole nine yards. And to give you an idea of the philosophical poetry, here's the chorus and a translation.
I wonder what Cole Porter would make of it?
UPDATE: Thanks guys, I knew you wouldn't let me down. Have a nice weekend.
**we now hear that they're not in Brooklyn, it's just that their ISP runs through there
1) When the broad markets drop hard, gold bullion rises due to the 'safe haven' factor. Mining stocks drop, pulled down by the market dump.
2) When the broad markets rebound and spring back hard, gold drops due to the reversal of its safe haven role. Mining stocks drop, pulled down by the gold dump.
UPDATE: Long-term reader and mailpal JH writes in:
Merci monsieur"(Y)ou forgot the third observation:When the price of gold rises so much that even dogs become profitable, Mining executives waste half the money and pocket the other half."
UPDATE Friday: IKN welcomes Hill Knowlton as visitors to the blog this fine and sunny morning. Hi guys, great of you to come along and check out info on one of your main clients. IKN suggests that you bill them early, with copper at $2/lb you never know when Alan Haircut's company is going to hit that upcoming cash crunch.
"The efforts by the TSXV to save itself are justifiably seen as a farce. But it is no longer just independent observers such as myself calling foul: read the comments by GMP's CEO Harris Fricker in his January 13, 2016 Memorandum about why he axed 27% of the staff of this brokerage firm that caters to small to mid tier companies. The enemy is not the TSXV itself, but rather its establishment bank overlords."
...will have an analysis of New Gold (NGD) (NGD.to) as its main event.
Here's the latest from Buriticá, here's your translation (your humble scribe doing the honours):
The government of Antioquia, with the support of police and the army, closed down 16 (illegal) gold mines in Buritica (Western Antioquia).Enrique Olano Asuad, secretary of mining in the Antioquia government, said that the situation in Buritica is delicate because mining there is deeply involved with crime, specifically with organized criminal groups and paramilitary groups that have infiltrated the business."What we want to do is the preserve the community life of the mining community (of Buritica). We are working with Continental Gold to develop a model of formalization of mining, including contracts with co-operatives that work, not like those in previous occasions which failed."Olano added that the evictions, that they were "trying to develop on a voluntary basis with miners", was urgent for the risk of rockfalls that could cause a landslide which could end in tragedy.Meanwhile, the secretary of the regional government, Victoria Ramirez said that the evictions had been pacific."At the moment we're only working in the Lebron mine. Some 300 families live around that mine and were looking for them to leave the sector voluntarily, she said.
"Canadian tax law is quite different than the US (and other countries), in that revenue Canada issues guidelines in many cases and not hard and fast rules.They do this so that both individuals and corporations can't just "skirt" the rules or easily find loopholes.It is a long standing policy of the CRA that if a corporate structure is setup just to avoid paying taxes, the CRA will "see through" that corporate structure to see who the beneficiaries are. That is the law, and it's been like that for ages in Canada. CRA basically goes, "we don't care what your legal paper work says, we care about what is actually going on."If SLW conducted most of its business out of Canada and just sent the checks/wires through the Caymans, that should never have passed the sniff test and the only thing surprising in terms of what revenue Canada is doing, is how long it's taken them to go after SLW.In this particular instance, this doesn't seem like a case of government overreach (i'm no fan of government) but a case of corporate incompetence in how they conducted their business."
PS: Just to be clear, the accurate word is "oligopoly", but as the IKN Weekly coverage of this issue has developed I started using the word "oligarchy" as the descriptive. It's a better fit in many ways. Read on...
Chile: Latest investment figures offer a window on the future of copper
Some interesting figures out of the Chilean cabinet ministry last week regarding the change in investment dollars in its mining industry. The main point picked up by the local media (25) offers few surprises, that the amount of investment dollars in mining projects in the country has dropped considerably in the last four months, but the details offer more.
According to the data-filled report, in December 2015 mining projects under development in Chile were worth a total of U$15.122Bn, down 29% from the U$21.347Bn registered in its last beancount in August. The drop is due to three projects being shelved (the on-off-on-off Antucoya owned by Antofagasta Minerals (ANTO.L) and Actualización Esperanza, also ANTO.L), plus the BHP Billiton OGP1 project, as well as other projects moving from development into production and therefore off this count’s radar.
So far so normal, but when we look at what’s left it becomes more interesting. Of the eight major works projects left on the list (that U$15.122Bn total), four of them are Codelco projects worth a total of U$10.531Bn. Add in the only other big ticket project, that of BHP’s desalinization plant for La Escondida and there’s little else happening in Chile.
Put simply—> If it weren’t for the State-run Codelco, which has a business and economic agenda which is wholly different from the normal capitalist-profit-only focus of a privately owned multinational and often works its investments to a counter-cyclical economic clock for national GDP reasons, plus a desal project that’s a no-brainer build for La Escondida (it pays for itself a dozen times over even if copper drops to $1.50/lb and stays there forever), there would be precious little growth in the world’s biggest copper producing nation right now.
It also has me thinking about bigger things, such as the way on which the copper production market is concentrating to the mega-players and away from the small and medium scale operations. I believe the Codelco policy of investment now is the right one, as it would be very difficult for a big mining company to convince its shareholders to keep the investment spigot running but for the nationalized, Pride-Of-Chile Codelco keen on keeping its world number one status (11% of world copper comes from them) it’s an easy sell which will give it the upper hand in the world market come the day that copper moves back up on its cycle. But aside from Codelco, it’s a window on how difficult it’s going to be for smaller entities to keep competitive (look at the enormous debt troubles of The IKN Weeky’s three touchstone stocks HudBay, Capstone, Copper Mountain, for an obvious example) or even for junior explorecos looking for the Next Big Porphyry in the Andes (or anywhere else) to compete efficiently. It’s far from the first time I’ve mentioned this but it bears repeating (for one thing I’m seeing a new batch of commentaries from higher profile anal ysts saying roughly the same thing): Copper is going the way of iron ore, where three players (BHP, RTZ, Vale) hold the market by its throat and can kill off competition in good old-fashioned oligarchy theory style.
When the Levee Breaks
The copper producers remain under pressure with spot copper prices below US$2.00/lb. While we have yet to witness substantial supply-side discipline, an extraneous event that could help bring the market closer into supply/demand balance may materialize.
At a minimum, a looming supply shock from the Zambian copper belt (~4% of world production) could swing sentiment and help alleviate the ongoing sustained pressure on equity prices.
The Zambian power supplier ZESCO has come under some scrutiny this year over its ability to continue to supply power to the energy-hungry copper miners in the world’s eighth-largest copper producing country. In this short report, we take a ‘what if’ approach to gauge the impact on the copper sector and specific copper producers.
We continue to recommend Lundin Mining (LUN:TSX) and Nevsun Resources (NSU:TSX) as the stalwarts in the base metals space at these low copper prices. However, if a supply-side driven, specifically Zambia related, upward move in copper prices were to take place, we would recommend investors place short-term focus on more levered (operationally and financially) Non-Zambian producers such as Hudbay Minerals (HBM:TSX), Capstone Mining (CS:TSX), and Teck Resources (TCK.B:TSX).
UPDATE: What, you wanna see that "Ach Captain, ah cannae hooold it much longer she's gonna blow" diagram on page three? Okay, here you go:
In next week's installment: Canaccord recommends that you buy soybean futures on a "What if?" basis as a plague of locusts could hit South America and wipe out next year's harvest.
...ten days of prices in:
Gold bullion (the GLD ETF)
Silver bullion (the SLV ETF)
The broad markets (the S&P500 index)
The precious metals miners (the GDX ETF)
The precious metals junior companis (the GDXJ ETF)
The copper miners (the COPX ETF)
As your humble scribe waits patiently for a modern jet aeroplane that's decided to be three and a half hours late this evening (we thank the airline company for the complementary "evening meal", a chicken sandwich and a coffee), news arrives as to how the Canadian tax people (CRA), already after Silver Wheaton to the tune of $265m in back tax from the 2005-2010 period, are now after SLW for a potential $310m extra for taxes in the 2011-2013 period.
Which gets me thinking about tax. SLW's set-up, the reason it says it doesn't have any bill to pay, is that it runs all its revenue through its wholly owned subsidiary in the Cayman Islands. As it's zero percent income tax there, we're all good and right, right? Not so says the CRA, these tricky fools are pulling a fast one on us all and they should pay tax on their earnings just like any other Maple Leaf waving corporation. They need to pay their fair share. It's not fair otherwise. They're depriving the good honest Canadian taxpayers of funding for (etc)
Well, maybe. And I found myself dwelling on that idea of 'fair', of equality or even justice. Because as far as I can see on this issue what SLW did when setting up its corporate structure wasn't particularly fair in terms of paying its wedge to Canada, but it was perfectly legal and inside the law.
And since when does the law need to be just or fair? The law is the law! Yes it changes over time as society's concept of what's just changes, but justice is the leading edge and law drags along later on its coattails. So would it be "fair" to suddenly back-tax SLW just because it was smarter than the average bear and found a perfectly legal way of not paying a large amount of tax?
And pay to whom? Hey 575 large is a lot of money, write me a cheque for that size and I'll probably remember the day for a long time. I might even buy you a beer to say thanks. But half a billion in the coffers of a national government, the world's least efficient entity no matter which country is in question, doesn't even move a dial. It's "three hospitals" you say? Phooey, it isn't even one, it's money down the same drain that took the cash to build the other 50 hospitals that never happened (and never will).
The tax loop that SLW has taken advantage of may be eventually closed, that's another story. But it strikes me as utterly unfair that the CRA is on its back for trying to be the best capitalists they can be. It's the nature of the corporate beast, after all. Fair? Since when did capitalism give a shit about "fair"? Gimme a freakin'break.
...when we can have five or six? My main downer is BTO of course, not the only one out there though.
My stars, this is now officially borong, The Clive. Just bite the bullet and agree to a streaming deal one time willyaz? What's the point in holding out for the bluesky upside when there's going to be nothing left of your stock price anyway?
Meanwhile, in glass-half-full news, LSG continues to buck the trend and trade rock solid.
The 4q15 numbers out of PAAS this morning are genuinely good; they've produced strongly, costs are down, they've become leaner and meaner over 2015 and the guidance for 2016 is a continuation of the efforts made.
But (and there's always one of those), you get to the AISC forecasts and it becomes cleat, they're still losing money at these silver prices. And that's the way it is, even the decent Ag plays are untouchable, so just imagine how bad things are at the never-ending list of mediocrities in the silver space...even when they aren't getting their dynamite stolen.
PS: AR.to reports in USD.
Copper Production and Costs 2017 to 2020: Consolidated production from 2017 to 2020 is expected to average between 70,000 and 85,000 tonnes of copper annually at a consolidated C1 cash cost ranging from $1.60 to $1.70 per pound of copper.
At least 200 uniformed officers from the Mobile Anti-Disturbances Squad ESMAD, have stopped miners in Buriticá, in western Antioquia, from entering the underground works of a mine owned by the company Continental Gold, considering it at a high risk of landslides in the last few days.
"ESMAD had to intevene, because there is a serious threat of landslides due to over-minng. Even so the mine workers are trying to enter the emergency zone, despite the unstable ground and warnings", said the sub-commander of the Antioquia police force, Coronel Javier Guerrero.
In the area a team from Human Rights is also present in order to calm the atmosphere between the government forces and the miners.
The Antioquia government, via a communicado, said that the instability of the terrain had forced them to close the mine entrances. However there has been no press statement to comment on the issue.
"I’d far rather see Sanatana go into bankruptcy than to give the project away for peanuts to a prick bastard like Stephen Letwin. Thieving shouldn’t be encouraged."