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Yup, tough market. This from Anconia Resources (ANA.v) on December 20th:
Anconia Resources Corp. (TSX VENTURE:ARA) ("Anconia" or the "Company") announces that it proposes to complete a non-brokered private placement offering (the "Offering") of units ("Units") and flow-through units ("Flow-Through Units"), at a subscription price of $0.10 per Unit and $0.12 per Flow-Through Unit, for aggregate gross proceeds of up to $2,100,000. continues hereAnd this from Anconia Resources (ANA.v) post-close Dec 31st:
Anconia Resources Corp. (TSX VENTURE:ARA) ("Anconia" or the "Company") is pleased to announce the closing of the first tranche of its previously announced non-brokered private placement offering (the "Offering") (see the Company's news release dated December 20, 2013) issuing 416,665 flow-through units ("Flow-Through Units") at $0.12 per Flow-Through Unit, for aggregate gross proceeds of $50,000. continues hereNuff said
UPDATE: Or if you prefer, here's Cadillac Ventures (CDC.v) from November 25th
TORONTO, ONTARIO--(Marketwired - Nov 25, 2013) - Cadillac Ventures Inc. (TSX VENTURE:CDC) (CADIF) ("Cadillac" or the "Company") announces that it intends to complete a non-brokered private placement offering of units ("Units") at Cdn$0.05 per Unit and flow-through units ("FT Units") at Cdn$0.06 per FT Unit for aggregate gross proceeds of up to Cdn$1.5 million (the "Offering"). continues hereAnd here's Cadillac Ventures (CDC.v) six weeks later today, post-close Dec 31st:
TORONTO, ONTARIO--(Marketwired - Dec 31, 2013) - Cadillac Ventures Inc. (TSX VENTURE:CDC) (CADIF) ("Cadillac" or the "Company") is pleased to announce the closing of the first tranche of its previously announced non-brokered private placement offering of units ("Units") at Cdn$0.05 per Unit and flow-through units ("FT Units") at Cdn$0.06 per FT Unit, issuing 200,000 Units and 2,090,666 FT Units for aggregate gross proceeds of $135,440 (the "Offering"). continues hereNuff nuff said.
PS: The above was written when CSI.to was trading at 9c this morning. It closed at 7c.
Found on Twitter this morning, this is something to behold.
Presented with no further commentary.
1) The hack hasn't thought through the piece to the extent where true conclusions can be drawn2) The hack doesn't have the guts to make a statement and invite pushback from their target3) The hack is making shit up in the guise of real news and is using the device as a way of avoiding a libel case.
It's when they just run out of BS. Here's Colossus (CSI.to) this afternoon:
December 30, 2013
Colossus Minerals Announces Director Resignations
TORONTO, ONTARIO--(Marketwired - Dec. 30, 2013) - Colossus Minerals Inc. (TSX:CSI) (OTCQX:COLUF) (the "Company") announced today that Messrs. Douglas Reeson and Greg Hall have resigned from the board of directors. At this time, no replacement candidates have been identified.
Messrs. John Frostiak and Alberto Arias remain directors of the Company.
So, about that bidding up thing that's been going on in CSI the last 3 or 4 days. I recommend the casino next time.
*you think i read this shit?
*oops, too much eggnog
See if you can spot the exact date Sandspring Resources (SSP.v) announced its innovative funding deal with Silver Wheaton (SLW)
But hey, who are we to kvetch on the formidable due diligence powers of SLW?
What's that you say? Pascua Lama? Oh stop splitting hairs!
A silly company for silly people.
The Real has taken a right battering, but the interesting one is the Peru Nuevo Sol. Its Central Bank has been pretty aggressive in protecting the PEN from downside and considering that Chile and Peru have similar exports mixes, there's the type of gap beginning to appear that would appeal to the currency futures traders.
Some context is necessary because Lara Exploration (LRA.v) has had a rough year, just like the rest of the sector...
...and let's not kid ourselves that the rally is on anything but modest volumes. However, the last few days of price action in LRA has been more than interesting...
- On the left the date of each survey. Simple.
- The next five lines are the raw data from Kitco, including a) the number of people asked (part), b) the number of responses garnered c) the number of bullish calls d) bearish calls e) and neutral calls on the week ahead in gold.
- Next the numbers were crunched into the percentage of bulls bears and neutrals, which you see in the centre of the above table (all cute with a colour code, too). Also in this section, I’ve highlighted in peach the most popular call of the week, i.e. the direction in which the overall survey is pointing for gold.
- Then comes paydirt. First the price of the gold bullion ETF (GLD that weekend and then the percentage change in the price of gold that week (result %).
- The final column of the table is the answer to a simple question: Was the survey accurate that week in its prediction for the price of gold. To decide this, I assumed any plus/minus movement on the week of under 0.5% was neutral, then above was a bullish result and below a bearish result.
I'm sorry, does that say 230,000 ounces of gold in your brand new 43-101 resource?
Are you guys telling us that after all this schamoozle, you only had...? Ah, forget it.
Oh my stars, this one's going to be fun.
1) Gold, at ~$1,200/oz today, is close to its bottom. I'm going to allow perhaps another $100 and make the 2014 low call $1,100/oz and the high $1,500/oz, which we'll see as the year draws to a close.
2) Quality junior mining companies and explorecos will finally split away from the cruddy juniors and we'll see an all-important gap develop between the companies that need to die and those that will survive and eventually thrive.
3) Copper will be weak in 2013, with supply outstripping demand and new lows of under $3/lb registered (put me down for $2.80/lb on multiple days, not just a single spike). Average for the year to be around $3.10/lb
4) Uranium won't break $40/lb at any point and the sector will continue to get the rah-rah from the promo people still holding their large bags.
5) Dilma Rousseff, President of Brazil, will be re-elected in 2014. The election is set for October 5th and Dilma will win it, no matter whether her coutnry manages to lift the major trophy of next year or not (see below). Dilma is liked and likeable, gets the key backing of Lula and notwithstanding bumps in the road during her current terms (economy not motoring well, corruption scandals in her government) has done a more than acceptable job so far. She'll get a second bite, no worries.
6) Evo Morales, President of Bolivia, will be re-elected in 2014. The presidentials in Bolivia are currently slated for October 5th 2014 (that might move by a couple of weeks, or might not) and even though there are doubts as to whether Evo can run again (Supreme court says yes because the constitution is a new one, opposition says no it's against the law because re-election is still not allowed) the chances are that he'll be the MAS Party candidate and once there, win his next (first? other?) mandate.
7) Juan Manuel Santos, President of Colombia, will be re-elected in 2014. We complete our trifecta of presidents to get second terms with Juanma. He's currently favourite without being a lock for the May 25th 2014 vote, but as the FARC talks make slow but sure progress (contrary to my 2013 prediction) and the economy is doing ok (GDP growth modest but acceptable, unemployment now at record lows) he should have enough in the tank to defeat the main opposition that comes from the Uribe-backed right wing, whose anti-talks/anti-FARC-deal candidate looks set to be Oscar Zuluaga.
8) Both Argentina and Venezuela will continue to defy and confound the non-stop barrage of criticism from the western media and get through 2014 just fine. Inflation in both countries will still be a problem, but there will be no defaulting of bonds, no forced changes of government no large-scale citizens uprising, no matter what dreams the country haters might have to the contrary.
9) Juan Martin Del Potro will win at least one of the Grand Slam tournaments this year. Argentina's ace tennis player is up against tough competition in Joker, Rafa, Murray and even a Roger who could put in a swan song, but I reckon it's time for Delpo to make good on the promise of a few years ago and shake off time lost through niggling injuries.
10) And finally, the big one: Brazil will win the 2014 World Cup. I'll be cheering for Argentina, but my head will rule my heart on the predictive stakes (love to see them both in the final, though). Obvious dangers are (and in order) Germany, Spain, Italy and Holland. The rest make the show, not the semis or the final.
IKN242 has just been sent to subscribers. It's a fruity combination of mango and strawberry, with just a hint of lime. Served over cracked ice and garnished with a playful paper umbrella.
There were plenty in the running for this week's award, but all are trumped by this short, sweet and nasty one from Colossus Minerals (CSI.to), a company that's just lost its lender of last resort.
TORONTO, ONTARIO--(Marketwired - Dec. 20, 2013) - Colossus Minerals Inc. (CSI.TO)(COLUF) ("Colossus" or the "Company") On Friday, December 20, 2013 the Company was advised by Arias Resource Capital Fund II L.P. and Arias Resource Capital Fund II (Mexico) L.P. (together, the "ARC Funds") that the ARC Funds would not be proceeding with the two tranche financing previously announced on December 18, 2013.
For the 5th year running, IKN's Friday OT features the world's greatest ever Christmas song.
- You, the mining or mining related company, spend about a nanosecond of true creative thought on the subject.
- We, the recipients, think you are jerk-offs of the highest order.
- Inside the meeting hall in the town of Cocachacra, 1,200 people assembled to hear SCCO do its thing. Which they did.
- Of those 1,200 people, those against the mine's development were very thin on the ground despite the overwhelming majority of Islay locals being against the project. Also, those against the mine, including the local priest (not normally known for telling fibs) were adamant that the assembly was filled with people shipped in from locations outside Islay and were being paid to attend by the mining company. Just the same as in other meetings, in fact.
- But even then, there was no sort of vote or formal public approval process. According to the justice-seen-to-be-done artificial Peru system, all SCCO has to do is give its presentation and hold its meeting, no sort of yea or nay decision is required, looked for or received. The people inside the hall may as well have been mannequins.
- Meanwhile, outside the hall with 1,200 people were 2,000 police officers, fully equipped with riot gear, as well as a couple of riot containment vehicles (armour plating, water cannon etc). Their job was to keep thousands of real locals away from the hall; the protesters who are against the mine project weren't allowed to attend the social audience meeting because we wouldn't want to encourage a real debate at a meeting now, would we? Anyhow, the police did a good enough job (according to all media reports), with just a few skirmish-type incidents in outlying areas and a few tear gas canisters to upset the near-total success of the containment operation.
Yours, bored with morons, Otto.
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec 19, 2013) - Aurcana Corporation ("Aurcana" or the "Company") (TSX VENTURE:AUN)(AUNFF) wishes to provide an update as to the status of its Shafter Project. The Aurcana Board of Directors, after careful consideration and review of the development and mining options for the Shafter Project under current economic conditions and low silver prices, has elected to put the Shafter Project on "care and maintenance". Employees were notified Wednesday, December 18, 2013.Aurcana is planning to initiate an exploration program designed to test targets within Shafter's known mineralized areas in further detail, to help determine whether additional higher grade mineralization can be delineated. Aurcana geologists have identified areas of interest to justify such a program.Lenic Rodriguez, Aurcana's President and CEO, states "Aurcana's management and its board of directors are very disappointed that (another batch of Lenic bullshit follows here)
Yup, $1,200/oz again.
...the gold/silver ratio, 12 months:
The trend is clear and the moving averages indicate more of the same, within the daily fluctuations and noise of course. Or put another way, you think gold's had a hard year?
Wassat you say, guv? Wot? Me?
Nah, nowt t'do wi me, mate.
(exit stage left, hands in pockets, quietly whistling)
Not satisfied with its previous forays into third party juniors in Colombia for example...
Buying 15.38m shares of Tolima Gold for $10m (those are now worth $0.46m)
Buying 11m shares of Bellhaven Copper & Gold for $6.05m (those are now worth $0.36m)
Buying 12m shares of Colombia Crest for $3.42m (those are now worth $1.2m)
UPDATED: Colossus (CSI.to): We can safely say Sandstorm doesn't want to throw any more good money after bad
As has been previously disclosed, Colossus is in dire financial circumstances. Colossus believes that the Noteholders' Resolution is necessary in order for it to improve its balance sheet in order to raise the short term equity financing needed to implement the Company's de-risking strategy and thereby make it more attractive to future investors and potential partners to a mergers and acquisitions transaction.
UPDATE: That didn't take long. ARC Fund bites the bullet, the swimming pool dilutive placement is outlined as well as a loan that pays 20% per annum (!!) interest. Details here
h/t reader MM
Good news for the bullshit promo sharks in junior mining: The action in Carpathian Gold (CPN.to) proves there are still a whole bunch of suckers out there
1) As at end 3q13, before CPN explained to the world that it was facing a nasty cash crunch, it had a working capital of negative $102.524m (with very little of that in real cash) and on top of that, another $43m in long-term financial debt. The only thing balancing the sheets at that point was its declared property values (and if you think, for example, that its Romanian snafu is worth $50m, then jolly good luck is wished upon you) but as this isn't an asset story, it's a liquidity and (supposedly) cash generation story, what really matters isn't some mutually convenient fixed asset value but the financial parts of the balance.2) At end 3q13, it had 694.17m shares out. That means today's 12c share price gives it a market cap of $83.3m.3) According to its own Feasibility Study (that by way of a slight sidebar is looking a little long in the tooth, what with the changes in costs in the industry since its publication), at U$1,250/oz gold RDM has an after-tax 5% discount NPV of $172m.4) So therefore, even if we take a couple of giant leaps of faith, assume this perenially underperforming management team stops being crap and starts delivering 100% on its promises and then things go perfectly with operations at RDM, the NPV of the RDM project is less than the combination of the negative working cap and the current market cap. That's without even mentioning the LT debt portion.
First the scenario: The world has offered up two interesting projects NR this morning:
1) The pre-feas of the large-ish Magino project, owned by Argonaut Gold (R.to), with a post-tax 18% IRR using $1,250/oz gold. Lots more details here.
2) The PEA (scoping study) of the smallish Karma project, owned by True Gold (TGM.v), with a post-tax 43.1% IRR using $1,250/oz gold. Again, mull over the details at the company NR, here.
And so to the test: We discount immediate reaction (eg this morning) and set the clock for, say, Thursday evening. Right now AR.to is priced at $5.43 and TGM.v is 38.5c, so let's see how those prices sit at the end of three days of market because if these projects can't bring love to these stocks, gawd help us all.
Caracas, 16 December AVN: The Vice-President of the Economy, Rafael Ramirez, said on Monday that a JV gold company would be created by the Venezuela Central Bank and PDVSA."The only partner of the State oil company in this JV will be the Venezuela Central Bank", said Ramirez, who is also the minister of petroleum and mines, during a press conference."The company is very important because PDVSA, via the Venezuela Mining Corporation, has been granted the rights over 92 billion* ounces of gold," he said.Ramirez pointed out that this JV company is valued at U$40Bn, and would contribute to the re-launching of the Venezuelan] gold sector in 2014.He added that the make-up of this JV company will allow the State to receive a larger amount of the gold that's produced in the country
Argentina: Barrick cuts 1,500 jobs at Pascua Lama ArgentinaThe decent local media channel covering the Northeastern Argentina region, El Diario Del Cuyo, first reported a story on Friday (13) which was then picked up by regional media and even made English language copy by yesterday Saturday (e.g. here’s Reuters, reporting about ¾ of the story (14)). The need to know is:Of the 4,800 to 5,000 workers employed at Lama (the number varies), which is the Argentina side of the Pascua Lama project, the 3,500 workers who are residents of San Juan are being kept on until end April minimum. The other 1,300 to 1,500 workers, said to be comprised of 400 foreign nationals and around 1,000 Argentines from other provinces, are being laid off.At a best guess, the decision to employ the 3,500 (pre-crisis there were around 10,000 workers at Lama) instead of trimming workforce to the bone as was originally planned, will cost Barrick around U$30m until April and around U$70m if employed to the end of 2014. This would roughly double the U$60m ABX had originally set aside for care and maintenance costs in 2014 for the Lama end of the project, however it’s the veritable drop in a bucket compared to the overall U$5Bn+ already thrown at the project.The decision to keep on the 3,500 local workers is almost certainly politically motivated and comes after some negotiations. As noted in the very interesting report linked on the blog last week (15) ABX was coming under pressure from the San Juan province to keep paying salaries, with the big bargaining chip being the “continued well-being” of Veladero, the ABX gold mine that lies South of the Pascua Lama project and also in San Juan. The provincial government’s strategy may not have been very subtle, but it’s probably the difference between full-scale lay-offs and the 3,500 who’ll keep on receiving salaries. Also, the inference is that the April 2014 minimum employment will likely get extended, else cause “problems” for the other mine. It’s how business is done in Argentina, ladies and gentlemen, though the April minimum decision does give ABX the chance to play hardball come the time, which is always a possibility if the world gold market deteriorates further. We shall see.Changing the subject slightly, we also had plenty of talk floating around the Southern Hemisphere last week that Barrick is actively looking for a Chinese JV partner to move Pascua Lama forward, one example of many this report in Chile’s best biznews paper (16), which is one of those unsubstantiated rumours that makes a lot of sense. But as the saying goes down here, “Hay un gran trecho entre dicho y hecho” (close enough is “there’s a big gap between word and deed”) and as ABX really doesn’t have much in the way of kudos to lose at this point in the South, there’s no reason to suppose the propagation of the jungledrums equates to a near-done deal this time, either.