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2/10/16

Late night extra

It's been a long day doing other, real-world things (while trying to keep at least an eye on this newly interesting miners' market). A couple of loose ends that may have warranted posts under normal, non-time constricted circumstances, today they just get a line or three:

LSG Payola: Here's the thing about the "Change of Control" payments for the CEO of Lake Shore Gold (LSG) (LSG.to), Tony Makuch, as per the latest Management Information Circular: "...the CEO would be entitled to a payment equal to 30 months' salary plus an amount equal to 2.5 times the average of his previous two years’ bonus payments, and benefits coverage for two years (or payment of an amount sufficient to obtain comparable benefits coverage)" As Makuch is on $55,000/month, that's $1.65m for the salary element. As for the bonus payment element, I don't think that includes the options and shares awards payments, just the cash bonuses. If so it works out at $2.11m. If not it's more. So, at least $3.76m bonus payment for Mr. Makuch thanks to him agreeing to this shitty deal with Tahoe Resources. Nice work if you can get it.

TAHO Conflict: Scotia has been pumping this LSG/TAHO deal so hard it's like watching elephant porn. Hey, do you think Tanya Jakusconek, who is both senior precious metals analyst at Scotia and on the board of directors at Tahoe Resources, would have anything to do with that? D'yathink?

UEC is Ruled: Did you see how Rick Rule shafted Uranium Energy Corp (UEC) this morning? Wowsers, nearly a million shares awarded, the warrants dropped to $1.35, plus more payments in shares in the years ahead, all for merely booting the payments into the future. And that's just the announced stuff, as we hear there's a hefty rollover fee to be paid too (that'll get line-itemed on G&A and never see the full light shone on it, most likely). I have to be honest, I can't help but admire the way Rule shears the sheep seven times instead of killing it once for the meat (that can come later), but it's another lesson in how slanted the playing field is against us at the retail end.

CNL Beginner's luck: Mister Paul Begin of Stockwatch has his own view on Continental Gold's (CNL.to) news release today:


Two things to note:

1) He's wrong. It's very affected. See here for more.
2) Never trust somebody's view on a location if they don't know how to spell it.

Franco Nevada

The type of deal that only big-swinging-richards pull off: FNV has just bought the precious metals stream from Glencore's Antapaccay using OPM.

Dear Kevin

Instead of this deep level inquiry into your Reno office leak that's upsetting people and putting the chairman of LSG on edge, why not mail me and ask? I'm pretty approachable, really. I won't tell you who the leak is of course, but I can help you make sure it doesn't happen again and give you some good ideas on how to tighten up your confidentiality systems. I'm not looking for paid work either, don't get the wrong impression, this is purely voluntary. And you really should disclose on that death at Escobal, the way you and Ira decided to hide that annoyed people you work with greatly. Better late than never, don't wait for the YE MD&A.

PS: Do you really own a Ferrari?

Continental Gold (CNL.to): The market begins to see the problem

But only begins. It hasn't seen the real depth of the doo-doo in which scamster Ari Sussman finds himself again (and remember, he didn't tell anyone about the mess at Colossus before it was way too late either) because if the market got the fuller picture CNL wouldn't be down a mere 10% today, it would be plumbing new multi-year lows. The problem is alluded to in this section of the company's NR today and they do it as lightly as possible, even these BSsers know they need to disclose something else face courtrooms down the line. We quote:
"The court also indicated that ANLA (the National Environmental Agency) will not have sole exclusivity over permitting and maintaining environmental aspects of PINES projects."
One simple sentence, buried in the NR. Truly IKN says unto you, if 1) you don't know what that means 2) you're long CNL 3) you're out there there arguing the long case and defending its good name 4) you are the poster child for "ignorance is bliss". 

What that means is that CNL cannot get its environmental permits from the national government, what it was planning to do after doing that sneaky switcheroo last year. It now needs to involve regional body Coriantioquia and get their permission for the Buriticá project, too. 

That's bad news for CNL. 
Very bad news.
Very very bad news, isn't it Ari?

As IKN pointed out in this post on January 5th, "Continental Gold (CNL.to): Scratching an itch", Coriantioquia has already denied CNL its permit! And the dirty little secret that CNL wants to keep away from the market is that Coriantioquia denied that permit BEFORE the company pretended to withdraw from the regional permitting program and go with the national one! Here's one of the interesting bits from that January 5th post:

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"...the director of the permitting body Corantioquia, Alejandro González Valencia, told Colombia's biznews people El Colombiano that the permit was denied due to water reasons (too much of it from the mine that wasn't being managed) and enviro-control reasons. The report also said that according to the director of the body (translated),  "...on September 11th 2015 the environmental impact permit modification was denied (by Corantioquia)."

Got that? September 11th 2015. That was a Friday.

Now compare that to the CNL.to news release dated Tuesday September 15th 2015 entitled "Continental Gold Elevates the Environmental Permit Application for the Buritica Project to the National Level" in which the only mention made of the previous permitting program was, "...Company has withdrawn its application for the modification of the EIA from Corantioquia, the autonomous regional environmental authority of the department of Antioquia".

Got that? CNL tried to make out on the 15th of September, four days (and two full trading days) after Corantioquia had  DENIED the permit, that they had withdrawn their application. Maybe, like me, you see a subtle difference between "withdrawn on 15th" and "denied on 11th"."
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And now, thanks to Colombia's Constitutional court ruling yesterday that IKN told you all about (but nobody believed) they have to go back to Coriantioquia and get the permits from them, the very ones already denied to them before CNL pretended to withdraw and go "fast track" with the PINES system. Hey, get the feeling that track won't be as fast as you thought, Canadian brokerage anal yst suckers? Oh man, I'd love to be in that room when the "Hi guys! Long time no see!" meeting goes on between the regional enviro people and the CNL team.


Question: How many times does one man have to lie to you in the face before you realize he's a liar?

Posting will be light today

Some life things to deal with. Just talk among yourselves til I get back...

2/9/16

President Bloomberg

Here I am, checking out the results of the NH primary and thinking that the above name doesn't sound so bad after all.

A Flash update...

...has just been sent to subscribers, Tuesday lunchtime. Ka-ching time.

Colombia court news: Bad for Continental Gold (CNL.to)

Props to Paul Harris of The Colombia Gold Letter for this scoop. Here's how his post starts:

Colombia's Constitutional Court endorsed the concept of projects of national interest (PINES) and the creation of a national system to handle them due to the high social and economic impact, but stipulated that local and regional authorities must be consulted during the permitting process and that the national environmental licensing agency (ANLA) cannot issue environmental permits, which is the competence of the local autonomous regional corporations (CARs), reported El Tiempo. The Court ruled that article 49 of the National Development Plan 2014-2018 (PND) violated the principle of territorial autonomy because it attributed to central authorities competencies that are exclusively those of territorial agencies. This means that continues here

And if you're long CNL and don't know what that means to your trade, I wish you the very best of fortune. And I also promise you, hand on heart, that Ari Sussman doesn't want you to read this.

UPDATE: The above went live about half an hour before the open. We're now an hour or so into the session and CNL.to is down 2% or so, which is all the proof you'll ever need that Canada doesn't have the first freakin' clue about Colombia political/community risk. If it did, CNL would be down by 50%, not two.

UPDATE 2: I'd rather call short on CNL at $4 than be a sycophantic sold-out toadying fucktard who lives up Frank Giustra's asshole, Tommy. Now you be having that nice day now.