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3/27/17

Cobalt juniors are for suckers

Your humble scribe notes with interest the way the sell side community is going full-court press on cobalt juniors, urging you "to consider" a whole bunch of junior miners with cobalt deposits that will provide a hungry world with the Co it needs for a new generation of batteries. Because science. Unsurprisingly, one of the main sources of this pumpage are the minions that scurry around under Arthur Richards Rule IV (you might know him as self-made man Rick) over at Sprott and the chief mouthpiece at the moment is one Sam Broom, recently imported from Oz to tell us (and we quote), "Why Cobalt (Not Lithium) Could Be The Battery Boom's Big Commodity Winner" as well as his most recent pump piece, "The Cobalt Thesis" (oh...it's a thesis...so academic).

It's all bullshit. Two reasons:
1) Anyone who has investigated the sector carefully (e.g your humble scribe a few years back, the last time this silly sub-sector was pumped to the mouthbreather end of the market) will know that the producers have no sway at all over the supply side of the Co equation. That's something tightly controlled by the refiners and, the China black box aside, that means Freeport and Glencore. The big players have a good thing going with cobalt and they're not going to let anything as radical as free market economics ruin that for them.

2) There are a few dedicated cobalt mines around the world, but the lion's share of the stuff is produced as a by-product, not a product. In that way it's similar to silver, a metal with a price these days driven by the ultra-low costs of being a by-product (we've discussed this before, in August 2016 to be exact). But it's even worse for Co because it's a purely industrial metal, it doesn't even have the rabid guns'n'freedom idiots to back it up. The upshot is that 99.9% of these "cobalt opportunities" that Spott and others will "suggest" to you don't have a snowball's in hell of prospering because they'll never be able to compete on price when the big boys slam the door.

So just forget about this latest pump, it's silly, but Sam Broom does at least have one sensible thing to say in his pump pieces to the unknowing. He writes:
"It’s thus extremely important to speak with a qualified investment professional before jumping into the sector."
 Very true, but if you do and that qualified investment professional does not immediately shout "RUN AWAY! RUN AWAY!" when you ask him for a good Co trade, he's not an investment professional. He's a bullshit speculator professional. Thus endeth the IKN cobalt rant.

Toachi Mining (TIM.v): Probably just concidence

Please cast your mind back to this, kind reader:


Now consider this:


Toachi Mining (TIM.v) is already 24.5% down since that paragon of marketing prowess appeared at the world's biggest mining bunfest and the trend just ain't its friend. Company CEOs, don't think for a second that it's all about your precious geologists because your IR department can screw you just as quick as the things you think are important.

Chart of the day is...

...the gold/silver ratio, five years:



At what point will Keith Neumeyer and his band of delusional minions admit they're wrong about silver's relative value to the real stuff?

3/26/17

The IKN Weekly, issue 410



IKN410 has just been sent to subscribers. This one came out quite well.

Colombia news: Locals really really don't like AngloGold Ashanti's (AU) La Colosa project

Here's the link, here's a translation:

The inhabitants of the municipality of Cajamarca, on the West side of the department of Tolima, voted this Sunday to say No to gold mining in its territories. In this way they have opposed the La Colosa mining project owned by the multinational AngloGold Ashanti.

The bulletin number 10 of the national electoral body stated that the No vote had won with 97.92% of votes, i.e. 6,165 votes. For Yes there were only 76 votes. There were 41 blank votes and 14 annulled votes.

Since 8am this morning the 18 voting locations were open across the municipality, with a total potential number of voters of 16,000. The result of the vote now obliges the municipal council to adopt the necessary measures to prohibit mining in its territory.

Joy of joys! A new edition of Global Mining Observer!

Hoorah, pip pip and top hole old sports, the intrepid AW has regaled us all with another GMO.

Check out this, "Who is The Angry Geologist?"

And this, "Carving Up Anglo".

Both of those are way too cool. Go read.

Neymar's goal

Paulinho scored three of the four as Brazil whupped Uruguay 4-1 in Uruguay last week but the outstanding goal was the other one, scored by Neymar. Take a look:



It's when they make it look easy that you stop and stare. A total peach. Youtube here and by the way, the good news for world footy and the Russia 2018 World Cup Finals: Brazil are back, the Scolari years are just a bad memory and they're now looking very good indeed.

Dear Stan Sudol of Republic of Mining

On perusing the back office stats a few minutes ago, I noticed that one Stan Sudol, the person behind the website Republic of Mining (no, there's no away I'm linking you through) has recently signed on a subscriber for the IKN free daily mailer. Therefore here follows a message that's been lovingly tailored for Stan and Stan alone.

Dear Stan

Fuck the fuck right off Stan Sudol, you and your worthless website that just scrapes content off other people and gathers all the clicks for itself. Don't you even think of ripping off IKN like you do other sites in your desperate attempt to fill your parasitical den of plagiarism with content. The day that Reuters, Bloomberg, Globe & Mail, Mining Weekly and every other channel you cheat out of traffic slaps a cease and desist order on your sorry, freeloading ass will be a good day for the internet. Fuck the fuck right off and never come back to IKN.

Love, Otto.

3/25/17

The Angry Geologist explains S.H.I.T. Intercepts

Pretty damned wonderful post from my favourite blogger. This bit...

The nice thing about SHIT intercepts is that for the FAG (the Fraudulent Angry Geologist) they give you an opportunity to pad your PR with some MAXIMUM IMPACT (tm) BS, by letting you:
  • Report a nice high-grade SHIT intercept - everyone loves those
  • As a bonus you can call it a new "structure" - have some fun, name it after your girlfriend
  • Even better - as you only have a single hole, it is "impossible" to calculate a true width, because, you know, GEOLOGY!!!

...plus my introduction to the word 'chimping' right afterwards, made me laugh so loud it scared the dog. Go see for youself right here.

3/24/17

Everything Is Awesome!, Santacruz Silver (SCZ.v) edition

IKN quotes Arturo Préstamo, Pres/CEO of Santacruz Silver (SCZ.v), in today's 4q16 production report:
"We are excited to see the results of our efforts over these past months coming to fruition..."
Bless his heart. Here's the last six quarters of production at its main Rosario mine:


And oh yeah, there was this as well. You need to scroll down quite a lot under those boring tables full of numbers, but when you do...
Management Change
The Company advises that it has appointed Dante Rodriguez as Interim Chief Operating Officer, replacing Cesar Maldonado as COO.  Mr. Maldonado has agreed to remain as a consultant to the Company.  The Company wishes to thank Mr. Maldonado for his valuable contribution to the Company during his tenure as COO.
Mr. Rodriguez has most recently held the position of Vice-President, Exploration for the Company's wholly-owned subsidiary, Impulsora Minera Santacruz, S.A. de C.V.

...you see the COO has been fired but hey, fergeddaboutit. Everything is awesome in junior world. Everything.

Dear Keith Barron, it's "las" manos, not "los"

If you're going to fake knowledge of Spanish, Keith, fake it right. From here:

“For any geologist, putting this kind of historic narrative together with good geology is very, very compelling, and it’s incredibly fun to be doing it,” he says.  “It’s like a dream come true. At the end of the day, I don’t know what we’re going to find, maybe nothing. It’s in the hands of the Gods — Los Manos de Dios — but all the indicators are there, and, as exploration geologists, this is what we do. We work on hunches, we sift through evidence, and sometimes we work with historical narratives, as well.”

The Friday OT: BT; Tripping the light fantastic

Not the first time it's been the Friday OT. But that's not my fault, I'm powerless to resist.


A couple of people close to me know how this thing has turned into a full-blown obsession. Brian Transeau (BT) at his zenith and here and now, 22 years after it was recorded, still sounds way ahead of its time. Amazing sounds, play loud don't spare the woofers, it's the all-time definitive trance track.

Tr-i-i-i-i-i-p hey yeah
Tr-i-i-i-i-i-p hey yeah
Tr-i-i-i-i-i-p hey yeah
Tr-i-i-i-i-i-p hey yeah

Youtube here.