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Cool, class, Voulzy makes it sound easy. It's not.
...this, on the record, after all that ICG and Eastmain and Columbus hoo-hah rtoday:
“Integra is happy with today’s outcome. Now investors can get back to getting excited about the rocks again. Onwards and upwards”.
Quote ends. Have a weekend.
We're getting a placement announcement soon.
UPDATE: My mistake, it turns out that LUG.to is also one of the Stansberry pumpo picks. And be in no doubt, this is now crazy-expensive.
- Almaden Minerals (AMM.to) (AAU)
- Brazil Resources (BRI.v)
- Midas Gold (MAX.to)
UPDATE: Try this scenario out for size...
1) Porter is now in cahoots with Paulson
2) Porter pumps MAX.to, Paulson gets a 58c (and counting) print on his $55m worth of 35c convertibles on MAX
3) They all live happily ever after.
So if you want to know which world famous hedge fund manager rang our scammu little retail pumper and then met with him in New York for Kobe beef and carrots, while talking book on gold and gold miners, take a deep breath and think who might fit the bill....
UPDATE 2: Other suggestions as pumped names so far are Yamana (AUY), NovaGold (NG) and New Gold (NGD). All reasonably logical and have shown strength these last two days. However and same as PAAS, these aren't thinly traded explorecos being manipulated for the direct benefit of Porter's pals.
UPDATE 3: Add Newmarket Gold (NMI.to) to the list of suspects. Readers are smarter than I am.
- ELECTION WATCH: Show and “Peru”-ve: Strong Showing for Mendoza Could Be Negative for Mining Stocks with Peru Exposure: Our Mining Research Team saying that Peruvians will head to the polls on Sunday April 10th to elect their national congress and president. The presidential election is a two-round process with the first round this Sunday and the second round run-off vote scheduled for June 5. A run-off is widely expected, with no individual candidate polling near the 50% threshold required for an outright win in the first round. In the latest polls, front-runner Keiko Fujimori came in at ~37% while contenders Veronika Mendoza and Pedro Pablo Kuczynski were neck-and-neck at around 15%. Recent polls also show that Ms. Fujimori is expected to only have a slight edge in a run-off scenario with either of the other two candidates, so each of these three candidates seems to have a legitimate chance at the presidency. Ms. Fujimori and Mr. Kuczynski appear to generally advocate for continuity in the country's economic and mining policies while Ms. Mendoza promises to introduce a new economic model for the country, which would rely less on extractive industries. More specifically, she proposes to halt a scheduled cut to the corporate tax rate and tighten Peru's already-strict environmental regulations for miners. Ms. Mendoza has been surging in the polls lately. A result on Sunday that puts Ms. Mendoza in a run-off could be perceived negatively for mining stocks with Peruvian exposure. We flag the companies in our precious and base metals mining coverage with exposure to Peru.
Come the evening of April 10th the most likely scenario at this point is:
- Keiko Fujimori wins the first round with over 30% of the vote (it could be as high as 38%), which won’t be enough to win outright.
- Pedro Pablo Kuczynski comes second with around 18% to 20% of the vote and runs off against Keiko in the ballotage set for June.We can consider the potential outcome of a PPK vs Keiko run-off in due course, let’s make sure it happens that way first though I can say at this point that voter intention polls have it very close between those two in the run-off, with some pollsters giving a slight edge to PPK, others an edge to Keiko (12). The potential fly in the ointment of this scenario is Veronika Mendoza, the only true left wing candidate who has made late strides in the intention polls and in some surveys is now in a technical dead heat with PPK. There are two things to say on that:1) Veronika Mendoza will not win against Keiko in round two. All voter intention polls show that clearly, the country collective is scared of “lefties” (it’s very easy to conjure images of lefty Commie terrorists in the mind of the average Peruvian). So even if she makes it, you up there will get your miner-friendly administration.2) As round two is going to be all about Keiko Fujimori vs “No Keiko” (or perhaps better said “No Fujimori”), I expect many “No Keikos” to switch from similar candidates such as Barbanchea and García to PPK, in order to keep Veronika out and give the “No Keiko” option a real chance at victory.
Been a while since we did this, time to bring it up to 2016 levels:
It's always fears...why is it always fears?
UPDATE: This morning, Latin America Daily Briefing has a note on the election run-up, the issues and implications, link to that right here. As always, an excellent job of compilation and comment from LADB, those of you who want access to LatAm current affairs in English language should read this every day (hint: get the free daily mailer)
UPDATE 2: Two more unofficial polls this evening put it at level pegging between PPK and Veronika Mendoza.
For secret reasons.
- Codelco beat out Freeport (FCX) in four of the last five years and has produced a total of 20.01Bn lbs copper in the period.
- Freeport beat out Codelco in one of the last five years and has produced a total of 19.41Bn lbs copper in the period.
"...an excerpt from Continental Gold’s recently published 43-101 FS on the Buriticá project (Section 4.6.3):On December 23, 2013, the company submitted an EIA to Corantioquia, representing the final modification to the environmental license for the entire surface infrastructure required to build a mine in the Higabra Valley.On September 15, 2015, the company announced that it had requested the National Government of Colombia to assume responsibility for reviewing the application for modification to the EIA for the Buriticá Project as a PINES Project (Proyecto Estratégicos de Interés Nacional), as contemplated under Colombian law. Consequently, the company withdrew its application for the modification of the EIA from Corantioquia.Isn’t it the case that Corantioquia had actually rejected the Continental application in September 2015? (which would make the last phrase nonsense).Reading the report, they are quite gung-ho on the project and seem to think that it’s a goer. Your thoughts?
Indeed (name removed), it's all here including the quote from the head of Coriantioquia, stating that his office had denied the permit for CNL at Buriticá on September 11th.
And why that matters now is here because CNL has to go back, cap in hand to that very same person, and get the permit approved from Coriantioquia before anything can happen. As I noted in the Weekly on Sunday while writing up on the last three months in Colombia...
The Constitution Court, which has ruled in favour of the Páramo protection laws and against companies such as Eco Oro at Angostura. In the same ruling the court also said that the country’s PINES program for fast-tracking specific projects was all well and good, but the projects will also need permits from regional enviro people. This part didn’t go down well in the offices of Continental Gold (CNL.to).
Re-read that section of the 43-101 script you sent to me. Note how it tells no lies. That's lawyer-speak..."
A small section of IKN360, out last night
Regarding Dynasty Metals & Mining (DMM.to) debt and misconceptions (a rant)Reader ‘FS’ sent the following in after reading my succinct appraisal of the fast-deteriorating situation at DMM.to last week (13), one that even came before the company’s second NR Friday afternoon (14) that told us of its employee walk-out (reason is simple: don’t pay people and people don’t work for you). Here’s FS:“Hi Otto. I read your note about Dynasty being insolvent and no longer a viable economic entity. But I would like to know why you don't think there is at least some value in its 3 projects with 6 million oz of gold and the Zaruma plant, equipment and mine development plus all the technical work that's been done over the past 10 to 15 years.“I would have thought competitors would be willing to pay say $10 per ounce in the ground for the whole company. That would be 60 million dollars and would leave some money for shareholders. What is wrong with this rationale?”And here’s what I wrote back to FS:Shares are better understood by their formal name 'equities' and they get crushed to death by financial debt, it doesn't matter what price is put on the supposed and apparent fixed assets. Look at what happened to Jaguar Mining (JAG.v) shares during the re-structuring there. Or look at Colossus. Or Atna. Or Allied Nevada (aka Hycroft). A company like Vertex One will not play cute and pay their money to third parties when they can get the assets for no money. Equities are behind in the queue, debt creditors are first.Also, DMM has no money, 2700oz Au shipped or not. No money is very very not good.Many many years ago, somebody much smarter than I gave me a wonderful definition of company shares, i.e. equities: “The small sliver of hope that sits between assets and liabilities on a balance sheet”. To expand a little on that, I understand where reader FS is coming from on certain levels, he sees the potential for a third party to move into DMM, pick up “cheap assets” by “only” paying $10/oz, paying off the debtors, injecting capital, getting the company running on a positive cash flow basis, reaping the rewards of acting on a “bargain basement opportunity”.Which may be so but first we need to ask questions. Who knows more about the DMM assets, a third party or the people developing this company for over a decade? We need to consider the never-ending delays, screw-ups and broken promises delivered by Robert Washer and his team. We need to wonder about the high cash cost, the succession of operating losses and the way the company can never seem to deliver on its development programs. And why workers have had enough and walked out. And Ecuador (let’s not even go there today). To cut to the chase we need to consider the word “value”, the one used by FS in his mail, a little more carefully. When it comes to balance sheets and fixed assets, within reason a company can claim the asset value it likes and if it decides not to cut the value of the thing it owns from time to time (i.e. impairment or write-down) it’ll stay that way. Examples:
- If Argonaut Gold (AR.to) thinks its Magino project is worth the same (in fact more) than the $341m it paid in October 2012 for the property, when gold was at over U$1,700/oz, and doesn’t write down a bean of its value because it claims that if gold stays at U$1,142/oz over the long-term it will be able to re-coup all the price paid...well, they can do just that if they want (and my stars, they have).
- Topically (15), if Kaizen Discovery (KZD.v) magically makes its $4m purchase into a $12.5m asset without adding a single drill hole to Pinaya then we can sit back and applaud (or laugh).Two examples, we could play around with dozens but the point should be clear: Just because a company says it has an asset, it doesn’t mean that it is an asset. An asset that does nothing for your company apart from level charges and lose money isn’t one, it’s a liability (or at best a non-performing asset). Or as stated in IKN351:A billion ounces of uneconomic gold is worth zero dollars and zero cents because if it costs more to get out the ground than you can sell it for, it’s worthless. But hey let’s up the ante because according to USA’s oceanic people NOAA, there are around 20 million tonnes of gold in the world’s seawater (3). In old money, that’s 643 billion ounces (yeah, with a B). Not only that, but about twenty seconds on Google will show you that people have spent time working out successful methods for extracting that gold (4).* But despite there being oodles and oodles of ounces of gold, out there, identified and available, they’re all worth nothing.Combine the misconceptions of “in-situ gold value” and the magical accountancy so prevalent in the junior mining world and I find myself naturally circling back to DMM to wrap this rant up.After making decent money in a DMM trade way back when, then losing about the quarter of the profits in a bad second trade afterwards, it just so happens to be a company I’ve studied carefully, watched over the years and...yup I’ve never been back. But rather than me again, here’s what A. Mining Professional told me just a couple of weeks ago because he nailed it so well. He’d met with Washer at PDAC, was on the receiving end of a romancing, knew I knew a bit about DMM and asked me for an opinion which I gave in no uncertain terms. He looked more carefully and...“... I downloaded the three 43.101 reports on Friday (and) had a glance through the attached on their operating Zaruma mine this evening. Shocked, gobsmacked, appalled… take your pick… there are so many deficiencies in this report I wouldn’t know where to begin. That this is the basis for the mine plan and business is shocking….BTW, the Dynasty Goldfield vein target, there great hope is comprised of 110 veins in a polygonal resource. Yikes!There are sometimes interesting fights that go on when a company implodes on debt but has an asset hanging around. A few examples that come are San Gold, Rubicon, Gran Colombia, and even Pacific (PRE.to) in the O&G sector. People swoop in on the distressed, pick over the asset book and try to find value. More often than not they don’t and that’s largely because of something of the utmost simplicity; If the assets it has were (or are still) good ones, the company wouldn’t have got into financial trouble in the first place!Bottom line: DMM is going bankrupt because its assets are not assets, nobody will jump in to save them from their creditors, those creditors will hit the non-compliance button and people holding equities that day will get a sharp lesson in why balance sheets are the single most important financial documents for companies. Perhaps they’ll end up selling the mill to INV Metals, or perhaps somewhere down the line after a restructuring a newco rises but if it does, you can bet any money you like that the current equity holders will have been diluted to a Pacific Ocean scale.
Louis Lobito Little Wolf James of Casey Research: His 2015 track record is rolling straight into 2016