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7/31/15

If you own Nevsun (NSU) (NSU.to), read this

The report on this link will give you an idea of what you're sponsoring as a shareholder of Nevsun (NSU). Here's an excerpt:

Eritrea is not at war, but its first and only president, Isaias Afwerki, plays up the possibility of a return to conflict with neighbouring Ethiopia – the border town of Badme was the focus of a bloody territorial dispute. This threat is used to justify the absence of a constitution, the destruction of the judicial system, and the implementation of indefinite national service that allows the government to treat each civilian as a modern-day serf for their whole life.
The most obvious reason for the exodus is the country’s indefinite national service, the defining feature of contemporary Eritrea. Through this system, the government controls almost every aspect of a civilian’s life – male or female – from the age of 16 or 17. Where you live, your daily routine, and how often you see your family – all this is decided by the government, thanks to the national service system.
“We are just like slaves for them,” said Kibrom, 24, who spent the entirety of his adult life as a conscript until his escape a few months ago. “That’s why we’re leaving. It’s become one big prison for us.” 
Conscripts are technically paid. Different exiles report different monthly wages, but each fell between 500 and 750 nakfas (the local currency) – a negligible pay that equates to between £20 and £30. The amount is so low that it is virtually meaningless, former conscripts say. 
“It is only enough for three days – so for the other 27 days I would go hungry,” said Kibrom. “To buy a chicken, it’s 600 nakfa. And that tells you everything. If I want to have a family, to marry, to have children – that 600 isn’t going to be enough.”

Whole thing here


The Friday OT: The Who; Won't get fooled again

Footage from the we-record-live gig The Who put on at Shepperton Studios in London, May 2th 1978.



This gig was also the last time Keith Moon played with The Who (he died September 7th that same year). As you're about to see, he, Daltrey, Townshend and Entwistle were on their very top form that day. Some bands are better in the studio than on stage, but not The Who. They were (are) the exact opposite, laying their standard tracks down on an album then bringing them to their maximum expression in front of an audience. The above is a prime example, awe-inspiring rock performance.


OT: A courtroom exchange

As it's Friday. And as found here, though often tough to tell who was 1st at Twitter.



Mount Otto, Colorado, USA

Your author is sent this photo of Mount Otto, Colorado, by a kind reader.



Thank you kind reader.

7/30/15

A comment on Banks Island Gold (BOZ.v)

I've never looked at this Louis Lobito Little Wolf Casey Research pump job more than fleetingly, but after all the mine closure/suspension hoo-hah in the last seven days, and then including the way Lobito reassured his followers last Friday that it was a hold and the suspension was much ado about nothing but then this Thursday morning did a 180° turn and called sell on the stock (when halted, then claimed he was out at 9.5c when the stock dumped to 5c), all this BOZ silliness had caught my attention. And then of course the CFO resigned suddenly on Monday. Nice touch.

So anyway to get to the point of this post, while checking SEDAR tonight I noticed that BOZ.v had filed its quarter this evening so with interest piqued, I checked its financials for the first time ever. 

Seriously. I mean, seriously, how can anyone in their right mind like a company with a balance sheet like this? Let alone somebody as dangerous to other people as Lobito who recommends it to other people. Especially when those people are a bunch of naive sheeplike followers who require a little expertise in the sector, not tripledumb investment advice? And on checking back this evening we note that Louis Lobito Little Wolf James has been reco'ing this stock constantly since 2012 since prices of 76c (and his "stink bid" price on it was 45c...did he tell you to back up the truck when it went through that price?) and all the way down. 


This is madness, it's the type of thing that people who do not understand financials buy. Look, that's $11.2m in near-term financial liabilities, less than $170k cash, all on top of a mine that even if it was working right gives tiny gold production per quarter that makes an operating loss at $1,200/oz. There's no way, repeat no way, as in NO FREAKING WAY that debt gets paid without cash crunched to zero and beyond and that means even if BOZ can find somebody stupid enough to lend it some more cash the shares are going to be decimated even further, one way or the other. But you didn't need to know the May financials to come to that conclusion, it was already baked in. Obviously.

I knew Louis James was stupid about geology. I didn't realize how stupid he was about financials. The above is just plain embarrassing, it's amateur hour level.

And good morning to you, Porter...

...so glad you could make it.

The best quarter I've seen from a junior producer so far in 2q15 is...

..Teranga Gold (TGZ.to) (TGZ.ax). And that's good because I own some.

The thing to like isn't the production, which was slightly low due to lower than expected mined grades and head grades. What's to like is that even after producing a couple of thousand less ounces than I'd have liked in a perfect world its costs items were low, both on an absolute scale and on per-ounce metrics. With AISC at U$948/oz in what's going to be the softest production quarter of 2015 (and 2016 and beyond, most likely, as there's better grading material coming online soon) TGZ is still solidly profitable at even our new lower summer sale gold prices.
  • It's still a 200k+ oz per annum producer.
  • It has U$38m cash in the bank.
  • It's done all the heavy lifting on investment and corporate finance
  • It's profitable at current gold prices
  • It has an optimum community and social risk profile.

And you get all this for under CAD$200m market cap. Today's NR here.

I'll bet you cashmoney that when you see its 4q15 production results and guidance for 2016 you'll be saying "Damn, how the devil was that at just CAD$0.56 back in July?".

We'll do the charts on Sunday, here's just one:





Gold: Something's gotta give (x3)

We note the price of gold returned to U$1,080/oz this morning and promptly bounced off the level again. A chart:


A piece of music.