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10/21/14

Tuesday Tune: The Prodigy; Voodoo People

Click play and turn up the speakers, IKN guarantees it to be a decision you won't regret.



Kickass track! Silly Video! Oldskool! Run Away!

Gold Resource Corp (GORO) 3q14 production

Well, I laughed:


And that's before you notice that GORO calculates its 17,200 oz AuEq number from a 1:65 gold/silver ratio. Come on guys, tell me how that works, considering you used 1:67 in 2q14 and the ratio's gone higher since then? 

Another rule of juniors: When faced with "unexpected challenges" the joke companies will always revert to bullshitting you. They can't help it, it's the way they're founded, built and operated, they're run by liars and thieves.

Chart of the day is...

...zinc:



Strange how all those "Zn to the Moon Alice!" shillers have all suddenly and collectively STFU, is it not? Another example of the most important part of metals and mining punditry: Listening to the silences of these blowhard idiots is far more important than listening to their interminable and useless noise, the ones that go quiet when things don't go their way are the ones to ignore. 

Buy or build your copper mine: Not a dilemma

Let's take two recent announcements as our baseline:
  • NGEx Resources wants you to buy and then build Los Helados in Chile. Still at PEA stage, you'd need to spend $4.3Bn as well as wait several years (five's absolute minimum, and it's more like ten) before you get your copper, which would come at a rate of 115kt/year.

This is not difficult mathematics people, even when you take into account the longer mine life that Los Helados would bring to the table. Los Helados today is a money pit, anyone buying it will have to commit $5Bn to its future and on top of that, pray the Chinese still want to buy plentybigstuff copper in 2025. Candelaria throws off free cash flow from the very moment you sign off on the deal and what with the streaming deal LUN has done on the precious metal credits, the commitment here is a billion. Same metal, roughly same production rate, same country.

Who in their right mind is buying exploration companies with big copper deposits when the tier 1 miners will accept offers on what they've already got? 

10/20/14

NGEx Resources (NGQ.to) PEA

News release here. IKN's thoughts here.


I can think of better things to do with $4.3Bn, and that's putting it mildly. End.

Eric Sprott reaches the seventh age of man

Last scene of all,
That ends this strange eventful history,
Is second childishness and mere oblivion,
Sans teeth, sans eyes, sans taste, sans everything. 

Eight people and counting have already sent me that "Eric Sprott thinks ebola will make silver price go up" article. No I'm not linking it, find it yourself. 

Words fail me, though it does fit in with the way he trusted Frank Callaghan of Barkerville Gold and passed over a whole load of cash to him. How the mighty do fall...

UPDATE: Nine. That's more than enough by the way, if you didn't get the hint.

UPDATE 2: Market Narrative picks up on the story and runs with it. Runs much farther than IKN. Runs faster and runs better. Go see the post here, if only for the guffaws and yoks.

Today's news release

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 20, 2014) - Moose Pasture Resources (TSX VENTURE:MOOS) announces that it has signed a non-binding letter of intent (LOI) with an undisclosed third party in regards to its flagship property. Under the terms of the LOI, Moose Pasture is set to give away just about all the potential upside in return for enough cash to cover its accounting bills for 2014 which allow the company to limp into 2015.

Anne Elk (Miss), President & CEO of Moose Pasture commented on the LOI by saying, "We are obviously fucked as a company, but at least this way I get to play at boss for a few more months and you never know, gold might pop by $300 an ounce and save us all. Anyway, I found these suckers who'll pay our G&A in the meantime and managed to convince them that our shitty piece of land might be worth something".

Chart of the day is...

...the gold/silver ratio:



Know any silver miners that use a 55/1 ratio for their AgEq calculations? Yeah, me too.