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I've had an earworm about this song for weeks. Your turn now.
So I dug it out this week and yeah, it hasn't aged. That's good.
This today from the SEC:
Washington D.C., Jan. 15, 2016 —
The Securities and Exchange Commission today announced a whistleblower award of more than $700,000 to a company outsider who conducted a detailed analysis that led to a successful SEC enforcement action.
“The voluntary submission of high-quality analysis by industry experts can be every bit as valuable as first-hand knowledge of wrongdoing by company insiders,” said Andrew Ceresney, Director of the SEC’s Enforcement Division. “We will continue to leverage all forms of information and analysis we receive from whistleblowers to help better detect and prosecute federal securities law violations.”
Sean X. McKessy, Chief of the SEC’s Office of the Whistleblower, added, “This award demonstrates the Commission’s commitment to awarding those who voluntarily provide independent analysis as well as independent knowledge of securities law violations to the agency. We welcome analytical information from those with in-depth market knowledge and experience that may provide the springboard for an investigation.”
Whole thing here
At its current share price of U$1.03, UEC has a market cap of U$101.86m. Its book value is $27.5m (give or take the change) which means this company is running a price/book of 3.7X.
- Price Book at three point seven times.
- In this market for miners.
- For a company with dwindling cash.
- No production.
- Every intention to dilute the share count and finance.
- And $20m of real financial debt on board.This is the type of bovine excrement that Casey Research recommends to people. A more obvious short in the mining space is difficult to envisage.
Here's how UEC has traded since then:
Or for comparative purposes, here's its performance sat next to Uranium Participation Corp (U.to) which gives a solid benchmark on the metal's movements:
On these things it's just a case of waiting. Financing soon, Amir?
- Secured on company assets.
- One month duration at 12% interest per annum...i.e. 1% effective interest.
- A $40,000 "establishment fee" paid to Mark Smith for being nice and writing his cheque.
"...GMP Capital Inc. is pulling out of the United Kingdom and Australia and suspending its quarterly common share dividend to deal with the effects of weak commodity prices and increasing regulation.
Offices in London, Perth and Sydney will be closed, and 97 jobs will be cut, representing a 25 per cent reduction in head count.
In Canada, sales, trading and research franchises will be streamlined “in response to permanent structural and regulatory changes across the industry,” GMP said in a statement Wednesday.
“Our actions today arise from an exhaustive review of all aspects of our Capital Markets business,” said Harris Fricker, GMP’s chief executive.
Full story here.
UPDATE: Kind reader A.N. Other sends in this:
Via reader M (ty sir) here's the top page of the CIBC agenda for its biz shindig at Whistler, as per yesterday:
And here's a twelve month (!!) price chart of Thompson Creek, HudBay and Capstone:
Nice hats, Ira.
IKN brought you the news many many days ago, of course.
But notable how TAHO still refuses to admit how their staff tend to die in accidents while on duty. Nothing in the NR today, Kev. Why's that, Kev? (Also news brought to you many days ago by IKN, of course)
"It would be a crowd hit if you could find someone who has an archived copy of the 2003 or 2004 Denver Gold webcast where Clive Johnson, then CEO of Bema, begs someone, anyone, to just take Placer Dome over and 'put it out of its misery.'"
UPDATE: There ya go. 131k oz Au 4q15, which means they miss on guidance for 2015.
Now I'm going to take a wild guess and say that the financial advisory thing that PRE set up with Lazard just before Christmas isn't going so very well.
Hey, lucky the insiders sold so many of their shares at much higher prices before the price collapsed, isn't it? I'd hate to think of Fino and his pals short of a dollar.
UPDATE: Ahhhh, this is it. 17.5c on the dollar, which means that either a) there will be better offers out there or b) PRE shares still have a long way to fall. Thanks you-know-who.
So much for my buying an extra chunk at 85c a couple of days ago (what's worse is that it's an add, i got more at higher prices from previous years). So much for the end of the Van Eck liquidation. And so much for the market pricing in a production miss, because it's on the way to pricing in defaults now. Sheesh, what a market, at least it's doing an excellent job of keeping my ego in check.
...on burdens, and if you understand that windfall tax deal you're better at numbers than me.
What you really need to know is "Ecuador gets at least 50%", which fits in with the country's constitution. And fine for a rich deposit like FDN, but gotta wonder about the other explorecos there.
UPDATE: According to Newsweek this afternoon, people think Aaron Ramsay may die if he scores an own-goal.
Copper Mountain (CUM.to) released its 2015 production numbers this morning and the best bit is...
Copper production totaled 77.6 million pounds (95.6 million pounds of copper equivalent) for the 2015 year and was on track within 5% of the Company's guidance of 80 million pounds of copper.
On track within 5%. On track within 5%. Oh you guys!
Oh man, you can tell Marin Katusa was on the board, can't you?
Good post on Peter George.
The puny fine ($35K) when compared to the market cap collapse of BGM, SGR and RMX (PVG has continued to tap dance) speak to a toothless judiciary. That he has been banned from authoring a new mineral resource or reserve under 43-101 is simply laughable. What management or board in their right mind would consider retaining his service? What good is the Society of Professional Geologists if a series of clearly substandard reports can be published over the course of some years before the crime is even spotted, let alone held to account?And what of the culpability of each of the Company’s respective management, Boards and advisers who not only accept these reports but act on them? Is universal incompetence now considered a viable defense? All those who were involved and in fact had their hands deeper into the proverbial cookie jar are free to work within the sector with impunity.I submit it is a scenario for the perfect white collar crime. Consider those that have gone completely undetected such as the teams behind (three company names redacted), to name a few.Make no mistake, there are thieves amongst us gentlemen.
Mr. Peter Thomas George, P.Geo., was the QP for the Barkerville Project in B.C., owned by Barkerville Gold Mines Ltd. Faced with a public hearing, Mr. George entered into a Consent Order with APEGBC by which Mr. George admitted to unprofessional conduct in producing a substandard technical report for Barkerville Gold Mines Ltd. that failed to meet the requirements of NI 43-101.
Mr. George also admitted to producing two substandard technical reports for Rubicon Minerals Corporation for its Phoenix Gold Project in Ontario. Mr. George must pay a fine of $15,000, costs of $20,000, and is subject to a number of conditions on his membership with APEGBC, including the requirement that he not perform mineral resource or reserve estimations as defined by NI 43-101.
PS: Reader MZ also reminds your author that Peter George was the man behind the Sans Gold resource. Spot any connections yet, Canada?
PPS: And reader JM notes that, "Peter George did Gold Eagle Mines "geologic potential" in Red Lake right before Goldcorp paid $1.5B for the company. You could ask Goldcorp how well there Cochenour (Bruce Channel deposit) project is going but there is a pretty common theme forming here".
UPDATE: Good mailbag received on this from reader R, here.
UPDATE 2: IKN receives this from PretiVm investor relations:
In regards to the post Peter George has been a naughty boy January 12, 2016It states: “Oh by the way, Peter George is the very same geol who brought us the Pretium (PVG) gold resource number”Peter George has had no association with Pretium’s Brucejack project and has never worked for Pretium Resources Inc. so the details you have posted are misleading.I would request you make that correction or let me know how you substantiate that claim so I can address it.Thank youTroyTroy Shultz, MBAManager, Investor Relations & Corporate CommunicationsPretium Resources Inc. | Pretivm Value Through GoldDirect Tel: 604.566.8758|Mobile: 604.561.5668Suite 2300, Four Bentall Centre | PO Box 493341055 Dunsmuir Street | Vancouver BC Canada | V7X 1L4Tel: 604.558.1784 | Toll Free: 1.877.558.1784 | Fax: 604.558.4784
So there you go, duly corrected.
Hey honest, we're not just copper, we're gold as well! We got the grab samples!
...and this NR out tonight:
Discussion and conclusion: To sum up, we have a company that hides the fact its EIA permit application was denied but now swears blind that evrythin’ gonna be alright, a sellside brokerage world that’s keen as mustard to promote this stock using any sort of conjecture it can lay its hands on (but neatly ignores passing on hard facts when they’re negative to the storyline) and then just after Corantioquia gives its side of the story to the press and directly contradicts the neat CNL narrative, a key member of the permitting and legal team who bails at an optically awful moment citing a weak reason for the decision (effective immediately).And on top of all that, this is the company run by the very same team that blew up hundreds of millions of dollars in the Colossus (ex-CSI) debacle at Serra Pelada in Brazil, in which everyone (including the main and bigtime insto investors such as ARC Fund and Sandstorm) was kept totally in the dark about the massive and very fatal flaws in the project until it was way too late to do anything about it.I continue to marvel at the way in which the world of mining will believe anything told to them by anyone, just as long as there’s some shiny metal dangled as the prize at the end of the narrative. CNL.to isn’t an investment opportunity, it’s roulette. Whether it’s the traditional casino or Russian version is up to you to decide.
A few bits and pieces of slight interest regarding a few mining companies that have come to be known by this desk
UPDATE: Reader and close follower of all things Colombia resource, reader SB chimes in:
Well yeah, agreed, I was rounding up.
UPDATE: Ha, shows what I know. Wendell Lira was given the prize. Another FIFA fix, dammir!
This is a very good piece of music.
Louis James of Casey Research, early 2015: "If I could buy only one stock this year, Rubicon would be the one"
"The 2016 SRK Geological Model demonstrates that the F2 Gold Deposit is more geologically complex and the high-grade gold mineralization is less continuous than previously understood"
Planet Earth is blue.
And there's nothing I can do.