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A Flash update...

...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.

And i wudda gotten away with it too if it weren't for you pesky kids and that dawg

Daryl Hodges this morning failed to be ratified as a director of Minera IRL. Shareholders have voted him out by majority.


Minera IRL ( (MIRL.L): The liar Daryl Hodges tries the Shiny Bead technique on the locals of Ollachea

What follows is the letter sent by Minera IRL executive chair Daryl Hodges to the president of the Ollachea community. In it we see how the two-faced liar Hodges has suddenly changed his tune, realizes just how his plan to screw everyone is falling apart and is now trying to butter up the community with such choice phrases as "I give my word". Bless his heart. This from the person who screwed Tyler Resources, screwed Jennings Capital, siphoned off undeserved bonus payments into his own back pocket and deliberately ignored the express wishes of the community in order to remove the only serious threat to his coup d'etat on the company. His word...incredible.

What the following letter amounts to is another attempt by a gringo to buy off what he thinks are ignorant locals with a few shiny beads. Big big big mistake you motherfu0ker, the people in Ollachea have more integrity in their little toenails than you and your band of thieves have combined. The people of Ollachea are already laughing out loud at your stupidity and by way of fair warning, I'd strongly, but strongly suggest that if they offer you a one-on-one meeting at the town itself, with none of your team allowed to accompany you, that you don't take them up on the offer.

Anyway, here's the letter he sent which arrived and was registered received tonight August 26th at 6:15 local time, just over two hours ago. By the way, the letter was delivered to Señor Valeriano by one of the company geologists, who also just happens to be the brother-in-law of IRL's VP Exploration. Y'know, what with the company's new high directive so keen about the potential for nepotism.

Oh yeah, final thing: That's the real e-mail address Hodges left at the bottom of his letter. Just in case anybody out there fancies sending him a mail and telling him what they think of his leadership qualities.


Lima August 25th 2015

Señor Juan Luis Valeriano Gutierrez,
President of the Rural Community of Ollachea, directors and population in general

It’s a  pleasure to contact you and all the population of Ollachea. This letter is intended to reiterate my desire and commitment to continue working with you and maintaining a good relationship between company and community, in which I make clear that the new directors (of Minera IRL will respect the social commitments that the company has with the community.

I have seen that since August 14th there has been totally erroneous information published in several publications that does not reflect reality or regarding the intentions we have as a company with the community of Ollachea. At the same time, many of the publications have stated that I lacked respect, which is not part of my character and something I would never do.

Any change can at times generate certain fears, but I give my word that it won’t be this way, this change will improve both the company and the community.

Myself as representative of the company have the greatest will to continue a harmonious Company/Community relationship, working closely with you in a direct way to assure that the both present and future commitments we assumed are complied with, which reflect in positive changes for the community.

I hope to co-ordinate  meeting with you at which we can converse openly in order to get to know you and listen in order to reach a joint agreement, to be able to talk calmly and in detail about all issues that are of interest to you, so that you can get to know me as a person and a professional, my ethics, my transparency and my great interest in beginning to work with you as the highest ranking executive representative of the Minera IRL company, where both community and company will win with the Ollachea project.

I look forward to your reply so that we may meet soon. Please communicate with me via the e-mail address below.


Daryl Hodges

PS: Here's the original, so that you bilinguals out there can decide whether my translation is fair (hint: it is):

Updating the gold/silver ratio

Your humble scribe has been a very busy boy today, but if only to mark the day here's the updated gold/silver ratio:

That's my idea of the biggest tell in the near-term market, right here. Now that the pressure of options expiry is out the way, let's see what happens tomorrow.


On the road

Your humble scribe is out and about until late Thursday, so posting may be light until then. I'll leave you with this. Because it's unspeakably beautiful.

Futures up

Looks like your humble scribe did buy on the right day yesterday after all. All purchases in the five stocks outlined in IKN 328 on Sunday, subbers.

Just lucky timing I guess.

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...

"...but do you honestly think gold still has a chance of reaching $1400..(?)"

...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.

According to my inbox, you want more opinion on Daryl Hodges of Minera IRL (MIRL.L( (

...but seriously folks, if you haven't understood that my opinion is that he's a liar and a thief by reading articles such as this one and this one in the last couple weeks, what's the point here?

There will be more and there's a lot more to uncover about this most unsavoury of characters, but to give you just an idea, consider how he frames himself as the saviour of the freakin' world in the Mine Site article out yesterday (which is, by the way, sponsored and paid for by Minera IRL so if you think that's journalism take another toke of your doobie) and how we get the all-innocent "oh we don't know why the community is upset" stupidity from the lips of this abject liar, e.g "...all this seems to have rubbed the community up the wrong way. Precisely how still isn’t clear." Then compare it to the very clear and precise message given directly to Hodges by the community of Ollachea.

Playing dumb is part of the act chez Hodges. 

If you choose to believe that a company which worked for eight years to get community agreements and financing for its project (the latter over 18 months and unconnected to Hodges until the very end, when he strolled in signed the paper and picked up $100,000 cash bonus for doing basically nothing) and succeeded on all fronts under very difficult circumstances is the one that's badly organized, but the person who within six months has ruined everything is the one that's going to save IRL, I have a bridge to sell you. 

The day Hodges is thrown in jail for what he's done in Peru will be a fine day for the mining sector.


The Copper Mountain ( Corporate Song & Video

This is not a joke. This is the real Copper Mountain Corporate Song (and Video), entitled "Anything Is Possible" that Copper Mountain ( released onto an unsuspecting world on June 18th this year. Find it on the company website right here if you don't believe me.

Choice lyrics include:
"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"
And my personal favourite:
"The wise investor knows when it's time to hold on"
Which compares to this chart, that runs from the date the song came out to tonight:

How much did they spend on this Grammy award winner?

IKN sends kind thanks to reader 'JS' for the headsup on this one.