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6/13/15

The most visited IKN post this week is...

...this one, "News on the upcoming Sprott-Stansberry Vancouver Natural Resource Symposium". I also got good mail feedback on this one, lots of laughs. As for the post, by the looks of back office stats half the visitors were from Sprott in Carlsbad. It's culture, innit guv.

John Waters gives a graduation speech

And it's wonderful. He's exactly right in his definition of rich, too.



Go out in the world and fuck it up beautifully. Thanks to reader B for the headsup on this one, fine weekend fare.

6/12/15

Mining PRs and the Ottotrans™, Part 89


We haven't had one of these for quite a while, but tonight's batch of Friday post-close NRs offers up an unmissable opportunity: Thanks to Marlin Gold (MLN.v) we get to Ottotrans a 1,126 word news release down to just TWO WORDS:

This is what they wrote:


June 12, 2015
Marlin Gold Mining Ltd. Provides Corporate Update
VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 12, 2015) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES

Marlin Gold Mining Ltd. (TSX VENTURE:MLN) ("Marlin" or the "Company") has been integrating its Arizona properties acquired after the closing of the Commonwealth Silver and Gold Inc. ("Commonwealth") acquisition on May 21, 2015. After further review of the geological database, Management believes that Commonwealth represents a second district-scale land package in addition to our 118,000 hectare land package in Sinaloa, Mexico surrounding our operating La Trinidad gold mine. The addition of Commonwealth allows Marlin to continue building a diversified precious metal mining company.

On June 3, 2015 Marlin closed a $13 million private placement, with approximately $11.6 million of this being used for debt repayment, including $5 million to the Sprott Resource Lending Partnership. This has significantly improved the Company's balance sheet and provided the financial flexibility to bring the San Carlos satellite pit into our mine plan as early as September 2015 depending on the results of our accelerated development plan. We expect the total capital expenditures to develop the San Carlos satellite pit to be around $5 million (US$4 million).

Exploration drilling has begun at La Trinidad, which is the first time an exploration drill rig has been on site since 2011. This drilling program will concentrate on infill drilling at our primary Taunus pit, and resource delineation at our San Carlos satellite pit.

La Trinidad Optimization is Progressing Well

Sonoran Resources LLC, led by Jesse Munoz, has been advancing the Company's Taunus pit optimization and San Carlos accelerated development plan since the beginning of May. Since this time, key components of our operations, including our adsorption, desorption and recovery ("ADR") plant, waste removal within the Taunus pit and recoveries at our leach pad have been performing better than they have been since declaring commercial production in November of 2014. Our average recovery rates at the leach pad have been materially better, with cumulative recovery rates nearly 4% better than they were at the beginning of May. Changing in leaching procedures, including better irrigation of slide slopes and rotating the areas under leach in an optimized fashion have allowed us to recover significant gold from our inventories. Waste material that was built up during the first four months of the year has been removed, allowing our pit to gain access to lower levels, and accelerating the time it will take to get to the high grade HS zone earlier in Q2 2016. Our ADR plant has been operating at 95% efficiency since it has been optimized (vs. 90% before) and is flowing nearly 6% more solution through the plant (8,500 vs. 8,000 cubic meters per day). The net effect is that gold production has increased over 12% per day assuming constant solution grades. Since the end of the last quarter we have shipped and sold approximately 5,100 ounces of gold.

Management Changes Will Further Advance Marlin's Assets

As Marlin transitions to a multi-asset and multi-jurisdiction mining company, it is crucial that the Company develop a flexible and scalable operating team that is capable of advancing as many assets as we can bring into the portfolio. Sonoran Resources LLC has demonstrated that they are the ideal team to be advancing and optimizing Marlin's mines and projects. They have proven themselves at La Trinidad, and being headquartered in Arizona will significantly help the advancement of Commonwealth. To this end, Marlin is pleased to welcome Jesse Munoz as interim COO of the company replacing John Brownlie, the former CEO and COO of Marlin. Akiba Leisman will assume the role of interim CEO in addition to Executive Chairman.

About Marlin Gold

Marlin is a TSX-V publicly-listed company with properties located in Sinaloa and Zacatecas, Mexico and Arizona, U.S.A. Marlin's priority is to advance its properties toward commercial production and enhance shareholder value through financial optimization, namely through the growth of its wholly-owned subsidiary, Sailfish Royalty Corp. The La Trinidad property, which hosts the Taunus gold deposit, declared commercial production on November 1, 2014. An NI 43-101 mineral resource estimate and preliminary economic assessment for the Taunus gold deposit can be found at 
www.sedar.com or atwww.marlingold.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary statement regarding forward-looking information

This news release contains 'forward-looking statements' within the meaning of applicable securities laws. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by words such as the following: expects, plans, anticipates, believes, intends, estimates, projects, assumes, potential and similar expressions. Forward-looking statements also include reference to events or conditions that will, would, may, could or should occur, including in relation to statements regarding the completion of any equity financing, use of proceeds from any equity financing, the expected results and timing for the development and exploitation of any mineral resources, the timing of reprocess of material and production from La Trinidad. These forward-looking statements are necessarily based upon a number of estimates and assumptions that, while based on management's expectations and considered reasonable at the time they are made, are inherently subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: uncertainties related to raising sufficient financing to fund planned work in a timely manner and on acceptable terms; changes in planned work resulting from logistical, technical or other factors; the possibility that results of work will not fulfill projections/expectations and realize the perceived potential of the Company's projects; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold resources; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of environmental issues at the Company's projects; the possibility of cost overruns or unanticipated expenses in work programs; the need to obtain permits and comply with environmental laws and regulations and other government requirements; fluctuations in the price of gold and other risks and uncertainties, including those described in the Company's current Annual Information Form filed on SEDAR at 
www.sedar.com. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this release. Unless required by law, Marlin has no intention to and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

And this is what it means:

CEO fired.



x

The Friday OT: Paco De Lucia, Al Di Meola; Mediterranean Sundance

I'm going to try a bit of commentary on this, but in truth words are inadequate.



Nine minutes of musical bliss. First the song is laid out, which takes perhaps three or four minutes. Then Paco De Lucia and Al Di Meola move in a different direction and begin to deconstruct what's there, laying out the music to a point where they're down to grabbing at the melody from time to time just to keep it all together. You start to wonder why and where they're going with the idea when suddenly Blam!, they bring it all back together in the final three minutes of The. Most. Incredible. Guitar. Playing

The Friday OT tries to feature chunks of great music, but for me this is the best one ever. Enjoy.

Kaplan and Electrum funding at the bottom

I should have mentioned this yesterday, I didn't, I've been reminded about it again today by a couple of mailers (ty MH ty RF). I'd safely call this the most interesting news release of the week and it starts this way (your author's bold type in a couple of places):

NEW YORK, Jun 11, 2015 (BUSINESS WIRE) -- Electrum Special Acquisition Corporation (the "Company") today announced the pricing of its initial public offering of 17,500,000 units at $10.00 per unit. Each unit consists of one ordinary share and one warrant to purchase one-half of one ordinary share for $5.75 per half share, subject to adjustment.
The units are expected to begin trading Thursday, June 11, 2015 on the NASDAQ Capital Market under the symbol "ELECU." Once the securities comprising the units begin separate trading, the ordinary shares and warrants are expected to be listed on the NASDAQ Capital Market under the symbols “ELEC” and “ELECW,” respectively.
The Company is a blank check company formed for the purpose of acquiring, engaging in a share exchange, share reconstruction and amalgamation with, purchasing all or substantially all of the assets of, entering into contractual arrangements with, or engaging in any other similar business combination with, target businesses. Although the Company’s search for a target business is not limited to a particular industry or geographic region, it intends to focus its search on target businesses that operate in the metals and mining industry, with an emphasis on gold and other precious metals. An affiliate of The Electrum Group LLC, a privately held global natural resources investment management company that manages the assets of Thomas S. Kaplan and other institutional investors, is acting as the Company’s sponsor.

So, Thomas Kaplan has U$175m and is looking for a place where it can play nicely in the PM space. Gold juniors, form an orderly queue, no jostling at the back there.

PS: The difference between this new mine-funder company and others that have sprung up recently? Unlike the vast majority of the people who populate the sector, Kaplan is worthy of respect. 

Argentina is coming out of recession

And it's coming out on the back of large-scale public sector infrastructure works.



Cement dispatches have always been a good hack on the state of Argentina's real economy. In the first five months of this year they hit record numbers and according to the cement people, 2015 is forecast to be 9.4% better than 2014. Data here.

So bad news for the Argentina haters, its economy grows. Thanks to government spending projects. Just in time for a Presidential election, too. Oh what a coincidence.

B2Gold (BTG) (BTO.to)

A big long late night NR from BTO which ends this way...

In Conclusion
With the successful transition from construction to commercial production at the Otjikoto Mine, the Company is projecting another record year of gold production in 2015. Company-wide production in 2015 from the newly constructed Otjikoto Mine, and the Masbate, La Libertad and Limon Mines is expected to be in the range of 500,000 to 540,000 ounces of gold, an increase of approximately 35% over 2014 production. Consolidated cash operating costs are expected to be in the range of $630 to $660 per ounce. The substantial increase in the Company's consolidated gold production and the reduction in consolidated cash operating costs per ounce reflect the positive impact of new production from the Company's low-cost Otjikoto Mine which reached commercial production on February 28, 2015.
With the commencement of production at Otjikoto and the robust Fekola Project on the horizon, the Company continues to pursue its strong growth profile and low-cost gold production base. Based on current assumptions, B2Gold expects consolidated gold production to grow from 380,000 ounces in 2014 to well over 900,000 ounces in 2018.

...but mainly gives us the numbers on the Fekola feas. It can only mean one thing; the company's having its AGM today. The AGM starts at 2pm PDT (5pm EDT if i'm not mistaken) and afterwards The Clive and his jolly pals will be giving an exhibition of boxing a presentation on the company. Go here for the webcast link.

6/11/15

Hey, remember all that streamer-love?

All the industry lauding and swooning and toadying over streamers such as Royal Gold (RGLD), Silver Wheaton (SLW) or Franco Nevada (FNV)?*

Well they're sucking in 2015:



Hey Pierre, Smallwood, Harquail, Jensen: You suck. All below breakeven for the year. Hell's bells even Barrick's (ABX) doing better, how's it feel to be out-done in the gold space by an ex-Vampire Squidder, losers?




*let's not even mention the joke streamers like sandstorm

No pact for Massa and Macri: What it means in eight words

Scioli wins in round two, not round one.


Mexico mining sector takes a bit hit in April 2015

Mexico's INEGI released the industrial figures for the country in April 2015 this morning. Here's the overview chart for its mining sector.


Ouch, that's a big relative slowdown. 3.6% down from last month and 8.2% down compared to the same month of 2014. This compares to an overall 0.1% drop in industrial production in the country in April 2015, which basically means its mining component has dragged the country into negative territory. NR from INEGI here.

Chuck's going shopping (updated)

Just out:

VANCOUVERJune 11, 2015 /CNW/ - GOLDCORP INC. (TSX: G, NYSE: GG) announced today that it has increased its credit facility from $2 billion to $3 billion and extended the term to June 10, 2020, under existing terms and conditions. 
The unsecured, floating-rate facility bears interest at LIBOR plus 120 points when drawn, based on Goldcorp's current BBB+ rating, and is intended to be used for liquidity and general corporate purposes.  

whole thing here.


UPDATE: So what will Chuck buy? Three ideas:

1) Go big with Detour (DGC.to): Canada's flavour of the month fashion company just keeps getting bid up and up on the assumption it's being bought out. The credit width at GG now gives the company the financial room to make a run at a $2.5Bn mkt capper. For what it's worth I think it would be a bad deal but we must concede that if GG is mad enough to buy Probe, it's capable of buying anything.

2) Go modest with Lake Shore Gold (LSG.to): Definitely more bite-sized, but fits like a glove into the GG portfolio and the company has already made clear it wants to expand in the Timmins region. It's my idea of the right choice of the right deal at the right time, but WTFDIK?

3) Go worldwide with B2Gold (BTO.to): Less likely, plus it would have to be a pretty solid premium to its current price to make it a friendly deal, but the valuation drop in B2 in the last couple of years plus its growth pipeline would make it attractive in theory.

Those are my three, got any better ideas?

Geologists or Engineers

First published a couple of years ago, re-posted today due to an ongoing mail debate.

And also cos it's way fun.

Chart of the day is...

...silver in the last week and a bit. On June 1st Keith Neumeyer of First Majestic (AG) (FR.to) got bored with doing his job and worrying about things like improving operations, cutting costs, growing his company etc etc and decided to send a letter to the CFTC to complain that people are apparently speculating on silver in the market.
This of course only ever happens to silver. And is only happening now. It has never happened to any other metal or traded commodity in the history of futures markets.
Anyway, Neumeyer must have really scared 'em because as soon as the light was shone on (and we quote) "such massive speculation in COMEX futures" those naughty shorties quickly packed their bags and ran away, allowing silver to float back up towards its true 15-to-1 implicit price of $100/oz:




Or something.

6/10/15

TIMMAY! Gold (TMM.to) (TGD) refuses to drop

Interesting:



So that wasn't a fat finger after all.

Entertainment

IKN Nerve Centre has been receiving complaints about the lack of entertainment quality of the blog in recent days. We apologize for this lapse and by way of reparation, here's a pleasant cartoon of a pig:



You'll note the anthropomorphism used to liven up the pig's face. Excellent technique.

Chart of the day is...

...the hourlies on copper, because as with most other industrial metals it put in a long overdue rebound kick overnight:

Copper's 2% up since the weekend. Nobody's idea of a new trend, but welcome.

6/9/15

Dirty Gold: Chasing the trace of the London Bullion Market

One helluva good piece of English language investigative reporting from Ojo Publico, right here on this link. Here's how it starts:
A team of OjoPúblico toured camps of illegal mining production in Huepetuhe and La Pampa, the largest area of deforestation in Peru; it also sailed the Madre de Dios, Beni and Madeira rivers in search of Bolivian and Brazilian dredges; the team reached the mines in the mountains of the Cordillera del Condor, near the border between Peru and Ecuador, and traveled to the depths of Caqueta and Amazonas regions dominated by the FARC and drug trafficking in the jungle of Colombia. This excursion to the centers of the gold rush in five countries allowed us to identify companies from US, Switzerland and the United Arab Emirates that financed the removal of tons of illegally obtained gold in South America.

Lake Shore Gold (LSG.to)

I own this because I think Goldcorp (GG) is going to buy it.




It's been trading eyecatchingly well these last two days. As subbers know, tried and failed to add at a cheap price last Friday, too. Should have gone for the semi-cheap price, it seems.

Another dishwater dull day for the mining sector

Bet you can't wait for the summer doldrums to start.

When self-important industry leaders re-package their failures

Here's the NR to this New Oban deal.

It's one way to cut down on the number of zombie juniors out there, I suppose.

PS: Not joking.

Cripple Creek & Victor

Kinross outbid, Newmont gets the prize for $820m plus a 2.5% NSR, AngloGold Ashanti gets (some of) the money it needs, even though it insisted it didn't have to sell any assets. News release here.

Chart of the day is...

...a list of the ten eleven countries with the greatest exposure to the gold industry as a percentage of their 2013 GDPs.



Data from the World Gold Council (and this report).

Update Wednesday AM: Reader DB writes in with...

I think you've mistaken Kazakhstan with Kyrgyzstan in your chart. Source: http://www.gold.org/gold-mining/economic-contribution/value-distribution


...and he's correct. Thanks DB.

6/8/15

News on the upcoming Sprott-Stansberry Vancouver Natural Resource Symposium

After the desperately poor attendance at the Canvest 2015 conference, IKN can report that the people running the Sprott-Stansberry Vancouver Natural Resource Symposium, an expensive four day bunfest (July 28 to 31), are so worried about the headcount that they even offered me a free pass to the event. Now that's what I call desperate. Don't worry, I didn't accept it. 

Anyway, they asked me to share news of their upcoming event on IKN "for reader consideration". So here you go Tekoa, all done. That good enough?

Tahoe Resources (TAHO) (THO.to) at La Arena

In April 2015 (just released by Peru's mining ministry) the Tahoe Resources (TAHO) (THO.to) La Arena mine returned its best single month's production since 2013, with 20,145oz gold produced.


Toromocho

April added to the chart:


Could have been better, frankly. Data here

Chart of the day is...

...another look at that regular fave, the gold/silver ratio:



I'm no fan of TA, I'm also the guy who's been saying the GSR will stay above 70X (bar a spike or two) during 2015 and so far that's been spot on. But if that channel works, we're about to go under 70 and that would be good for silver. Will the squigglylineology work and prove Otto wrong? Stay tuned.

A Flash update...

...has just been sent to subscribers, bright and early and over an hour before the opening bell on this crisp and sunny Monday morning. Some information.

6/7/15

The IKN Weekly, out now



IKN317 has just been sent to subscribers. You and whose army?