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5/28/16

CR7 scores the winning goal...

...in the 2016 Champions League final. Via the last penalty of the shoot-out after doing precisely nothing all match, thereby stealing all the glory.

Because it's healthy on occasion to be reminded that life is unfair. Back to work.

For your weekend viewing pleasure: Flin Flon Flim Flam

Here's the header of this news release:
Arizona investigative journalist John Dougherty will begin a 10-city Canadian tour on May 24 at the Royal Theatre in Toronto to screen his documentary “Flin Flon Flim Flam” on the worldwide operations of Hudbay Minerals, Inc.

And here's the documentary itself, no need to be in one of those ten cities in the next few weeks, IKN got your back. Alan Hair should watch it, he may learn a little more about his own company.



Youtube link here. My thanks to reader 'AB' for the heads up. I watched this last night and the Constancia bit was a fair representation of what's going on (and by the way, the five truck crashes he mentions are now eight, after three more in 2016). Also the Flin Flon Manitoba pollution angle is impressive (but not in a good way for HBM).

5/27/16

The Friday OT: John Butler Trio; Ocean

I heard it for the first time last night, when friend PK sent the link over. And I was blown away. I'm new to John Butler but you don't need to be a long-standing fan to know this is high quality stuff.



Drop everything, listen to this.

UPDATE: Reader 'MB' adds thoughts:
 I am not a subscriber, but receive your email postings each day.

Listened to your recommendation, John Butler Ocean today. You have
previously recommended music and I must admit that our tastes seem to
differ (greatly, it seemed). But 'Ocean' I absolutely love.

Thanks, MB.

In The IKN Weekly this Sunday...

...we take a look at the Tinka Resources (TK.v) resource update of Wednesday and explain why it's better than the market reaction (better said non-reaction) would have you believe, why nobody noticed and why I like it that way. Other things too of course, just like always, but that teaser for IKN368 will do for a start.

Nevada Copper (NCU.to) and the smell of mothballs

The long NR out of Nevada Copper this morning is the sound of Red Kite emitting a loud, eye-rolling sigh the way long-suffering fathers put up with errant, repeat-offending sons and daughters. They know what their offspring is doing is wrong, they know there's little hope, but they also know that they are more than a little to blame for the mess created. So Red Kite don't foreclose on Guy Prettyface and throw them a few beans in order to keep the thing in order. For a price, of course.

We're now one year on from the NCU.to feasiblity study at Pumpkin Hollow. At the time of its publication NCU was a $1.90 stock and this humble corner of cyberspace put it as clearly as possible, "No amount of hype can save a marginal project". Or this post on the day of the FS publication that noted how it used U$2.85/lb copper as its "low case" to get a 10.4% IRR. How how we laughed. That's the bottom line and it's taken a year for Red Kite to join the chorus. All they can do now is keep a skeleton staff at the site (yup Yerington folks, there are layoffs on the way) and light a candle to the Market Gods in hope for $3/lb copper...$3.50/lb in fact.

5/26/16

Joe Mazumdar and his underling do MIF

Mining expert Joe Mazumdar of Exploration Insights (aka Blackbeard) gave this presentation at the recent Metals Investment Forum:



And the hanger-on at Exploration Insights, Whitebeard, did this presentation at the same gig:


These are pretty good talks. Thanks due to mailpal Claudio for the heads up.


 

Continental Gold (CNL.to) and my final post on this Colombia Constitutional Court nonsense

With less than an hour to go before the close of play on this cloudy and slightly chilly Thursday, this is how Continental Gold (CNL.to) is trading today...



...and the weakness marked to GDXJ is presumably a reaction to the news out of Colombia yesterday of that Constitutional Court ruling, so after teasing you this morning let's be clear about this once and for all. It doesn't matter what the uninformed Chicken Little end of the mining scream-o-sphere are telling you, it doesn't even matter about my personal opinion of Continental Gold (CNL.to) or Mister Honesty himself, Ari Sussman. CNL is not meaningfully affected by yesterday's ruling. As I wrote to A. Person earlier...
"The ruling was a ratification of what we already know, not a new piece of law. It was called for by the governor of Huila region who wants to stop a couple of hydroelectric plants from being built and the government was trying to ignore him."
...so now you know. Yes it may affect other mining projects with unfriendly local governments, but Buriticá and Antioquia are among the vast majority of locations in Colombia where there's no change.

Keith Neumeyer is Inspector Gadget



Thank you reader L for the heads up and thank you Bloomie for the clickbait headline...


...and thank you Keith Neumeyer for the continued guffaws and yoks. Here's your excerpt...

A major Japanese electronics maker approached First Majestic Silver Corp. for the first time last month seeking to lock in future stock, a sign of supply concerns that could boost the metal’s price ninefold, according to the best-performing producer of the metal.
“For an electronics manufacturer to come directly to us -- that tells me something is changing in the market,” said Keith Neumeyer, chief executive officer of First Majestic, the top stock in Canada and among its global peers this year.
....go see it all here, worth every penny.

But the best bit is in the video; When asked for a forecast on silver, Neumeyer says, "I think I've been wrong every year for the last four or five years.." and then goes straight into a U$20/oz silver forecast by year end. Which is plain wrong once again. Care to wager on that one, Keith?

My stars he reminds me of Albert Einstein. Not not the Einstein brains of course, but the Einstein quotes:

"Insanity: doing the same thing over and over again and expecting different results."

Bless you, Keith, you're a visionary guru. At least you have living proof there are many people dumber than you, all you need do is look at the share price of First Mining Finance (FF.v).

UPDATE: A different reader L, this time LL, writes in after doing the math:
In his 1 min long (short) interview KN says that silver is being mined with a 9 to 1 ratio to gold and the price is 75 to 1, "this can't go on". Then at the end he goes on to predict (guess) where he think prices will be at the end of the year: "Silver in the $20 range and gold at $1,500". Now wait, isn't that a 75 to 1 ratio?
LL wins today's observation prize.

Colombia and the art of reading what is written...

...rather than reading what you think is written.

An example is the short post on Colombia yesterday evening, on the Constitutional Court ruling about permitting, compared to your humble scribe's mailbag this morning. Therefore and for the headless chicken reactionaries who decided to mail in this morning...

1) Why does the post only refer to Norte Santander region and not the whole of Colombia?
2) Why does it state that it really depends on the location of your mining project?
3) Why does it talk about only one specific company and its project?

If you can hazard a guess at those three, feel free to write in. But only after you've bothered thinking a bit.

Peru poll: Keiko 46.0%, PPK 38.9%

New out today from pollster CPI, link here. Seven points of difference is the biggest gap shown for either candidate during the process, with ten days to go before the big day. Fair to say Keiko's moving at the right time.

Spoiled balloters are at 9.6%, undecided are 5.5%. Stick all that together and mix thoroughly of a projected final result of Keiko 54.2% and PPK 45.8%.


5/25/16

Goodbye, Eco Oro (EOM.to)

And CB Gold (CBJ.v) and any other mining project located around the Páramo de Santurbán in Colombia, because today the Colombian Constitutional Court ruled that local and regional mayors and governors have the right to block mining projects in Colombia, no matter if they've been permitted at a national level.

Now it's going to depend where your mining project is located and how miner-friendly the local politicos happen to be but there are some clear-cut examples where the regional heads are dead set against mining activity and those include William Villamizar Laguado, governor of Norte Santander, where Eco Oro (EOM.to) and its Angostura project is located.. Anything round there is now dead as a dodo

And I'd suspect AngloGold Ashanti will have to do some pretty serious....lobbying (err, I think that's what they call it)...in Tolima soon.

UPDATE: One small correction, CB Gold is in Santander region and not Norte Santander like EOM. Apart from that, we're good.

Chart of the day is...

...gold, monthlies:


I've been trying to scare myself out of being long gold this morning, checking charts from 5 minutes through hourlies and dailies to that one above. I've been reading the gold bear argument carefully, too. 

Completely failed to faze myself.

5/24/16

There will be no more posting on this...

...fine and sunny Tuesday in May at this humble corner of cyberspace. For secret reasons.

Back tomorrow midday.

PS: Special dedication for reader and mailer "AL". The secret is out!


AQM Copper (AQM.v) gives us a pre-feas

FWIW and in my own little way I have a soft spot for (but not a long position in ) AQM Copper and its part ownership of the Zafranal project in South Peru, so the NR with the results of its Pre-Feas was the first NR I opened today. And on getting to the moneystuff...



...it doesn't matter how much I like it or not, this one isn't going to make the shopping list. 

Chart of the day is

...the dollar etf (DXY) against the gld etf (GLD), three months:



Nope, can't see any relationship there.

And don't you just hate it when a blogger feels the need to put an asterisk on a word or phrase and then declare "irony" underneath because she or he knows that there's going to be a good percentage of the readership that will take them literally? Yeah, me too.

5/23/16

Minera IRL news

Another piece falls into place.

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May 23, 2016

Minera IRL Reports the Transfer of Shares in its Peruvian Subsidiaries, and Announces Board and Management Changes

LIMA, PERU--(Marketwired - May 23, 2016) - Minera IRL Limited ("Minera IRL" or the "Company") (BVLAC:MIRL) reports that the one share in each of its two Peruvian subsidiaries, Minera IRL S.A. and Minera Kuri Kullu S.A., which were not registered in the name of the Company, have been transferred into the name of a nominee of the Company, thereby consolidating control over the two subsidiaries with immediate effect.
As a result, the boards of the two subsidiaries will be reconstituted as follows:
Diego Benavides
Cecilia Gonzales
Francis O'Kelly
Mr. Benavides is General Manager of Minera IRL S.A., Ms. Gonzales is a corporate lawyer in practice in Lima, Peru and Mr. O'Kelly is a Director of the company,
The Company is also pleased to announce the appointment of Mr. Gerardo Perez Delgado as a Non-Executive Director of the Company with immediate effect.
Mr. Perez is a lawyer and a partner in the firm of Barrios Fuentes in Lima, Peru. His areas of expertise include Administrative Law, Regulation, Infrastructure and Concessions. Previously he was General Manager of the National Port Authority of Peru for six years where he was responsible for the planning, organization, direction, control and management of the institution in charge of the Peruvian Port System. He was involved in the concession of the Ports of Callao, Paita, Yurimaguas among others, and of the deepening and widening of the entrance to the port of Callao project, the implementation of the Single Window Port (VUP) by which the formalities concerning the export and import of goods through the ports is simplified, and overall planning and execution of actions to achieve the competitiveness of Peruvian ports.
In addition, Minera IRL announces that Mr. Francis O'Kelly has been appointed as Chairman and Interim Chief Executive Officer of the Company and Mr. Carlos Ruiz de Castilla has been appointed Interim Chief Financial Officer.

x

“What’s the Point of Having F-You Money If You Never Get To Say F-You”

James Altucher wrote a post called "The Secret of Billions" last week and I read it on Medium yesterday. I think you should read it too, it's long and it's excellent and it talks about the show in the title and gives plenty of insight into Wall St and its inhabitants, too.

But the part of the Altucher post I want to highlight is this, at the end. It starts with the title line above as its header and it got me to see that my idea of F-You money is really low. Have a read.

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"Of course on Showtime the word is spelled out. Bobby says this line to Chuck Rhodes (Paul Giamatti) in the one heated confrontation they have during the pilot.
The line is excellent and Damien Lewis delivers it with ruthlessness.
But I always think the reverse.
When you have a job, people often daydream about saying that to their boss or colleagues or whoever. But I always felt, “When I get F you money, the last thing I want to do is come back here and talk to my boss, even if it is just to curse at him.” What’s the point?
This begs the question, why do billionaires even keep going after they get their F you money?
I guess it’s because they are so driven that that is how they got the F you money in the first place. So that same force that drove them initially is still driving them.
And then there’s the question — how much is F You money?
In the show, at the end, Bobby buys a house for $63 million. But clearly you don’t need a house that big to be happy. Many people have much smaller houses and are happy with their lives.
I tried thinking of an answer.
For instance, one answer is: you have F you money if from morning to night you only have to do the things you love doing and you don’t have to do anything else.
But what if what you love doing is building and flying rocketships to the Moon. That’s pretty expensive. Your number is going to be a very big number.
I don’t know the answer. I like to sit at home and read and write all day. And not ever feel so angry I feel the need to say “F You!” to anyone since that is a stress and stress will make you sick.
For me, “F You money” simply means I get to keep physically healthy, spend time with friends (emotional health), be creative (mental health), and be grateful (spiritual health) every single day, without anyone or anything getting in the way of that.
Life throws us difficulties and stresses every day, no matter what. And you can see that the characters in the show are setting themselves up for potentially many, many episodes of stress, no matter how rich they are, no matter how powerful.
At the end of all shows and stories, everyone eventually dies and their stories are eventually forgotten, like a lingering pain that eventually subsides and disappears.
What’s the point of having F You money if eventually everyone dies?
Please tell me the answer when you get there."

Two from the Peru presidential race

1) Last night saw the first of two live TV debates between Keiko and PPK (the next is next Sunday) before the big vote day on June 5th (two Sundays from now). Without putting too fine a point on it, Keiko wiped the floor with PPK.

2) The latest voter intention poll came out last night, from IPSOS. Keiko is polling at 46.1%, PPK at 41.6%. This indicates a approx 53%/47% valid votes result forecast. The poll was taken to last Friday, i.e. before the debate last night.


5/22/16

The IKN Weekly, out now





IKN367 has just been sent to subscribers. Elephants everywhere.