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9/23/17

DanO does soil samples and Golden Triangle

I'm a little late to this, but still thank reader TZ for the heads up*.  Either way, late or early, IKN still heartily recommends this essay by DanO on the Golden Triangle exploration plays, some of which are currently kicking butt at market (while some are getting their butts kicked. Most of the thrust is on soil samples and their results, some good advice given (and I've learned plenty about working the GWN rocks as a result).

*DanO, do me a favour and shoot me a mail next time you publish something, yeah?


9/22/17

A few extra thoughts on Lithium X (LIX.v)

Following on from the post this afternoon, responding in public to questions sent in by mail (some of them rather seething in nature), adding a couple of thoughts:

1) The company told many people this afternoon that it was about to publish a press release on the subject. It's now over five hours since the market closed and we've still heard nothing from Brian Paes-Braga and Lithium X (LIX.v). That's because they know they can't flat deny it any longer, they know IKN knows the truth about what's been going on at its dog's dinner of a project, therefore they need to think really hard and phrase the NR really, REALLY carefully before publishing. 

2) They are likely to state something along the lines of there has been drilling in Argentina. Sadly, that's not even half the truth because drilling in a different area under a different permit emitted from a different office doesn't change a jot. What LIX has done is simple; they are a public company, they are subject to continuous disclosure rules, they have kept their shareholders and stakeholders in the dark for literally months about the disaster drill blow-up and the subsequent suspension of their permit.

3) Why have LIX not released a single result from their drilling program so far, despite that drilling and exploration program having started in May? We've been through June, July, August and most of September. We've had 115 days of nothing, despite the fact that the brine they were searching for is easy and quick to collect, collate and assay. What's more, tonight LIX IR is telling the few people they're answering the phone for (normally instos and fund managers who have the IR guy's personal number) that we should get "first results" in "about four weeks"! They're still "stoked" about the PEA which is due out "end of the year", though. You cannot make this stuff up.

4) Here's a question: Why was Stan Bharti happy to accept $5m cash and 6m shares of LIX in exchange for the 50% of PLASA that LIX did not already own? This is, after all, a company that boasted a market cap of CAD$170m when it traded at $2.00/share. The deal was announced in late June and closed mid-July. Hey, y'think Bharti might have known something you didn't? Because I'll tell you something, Bharti may not be IKN's cup of tea but he sure is a smart operator. Smarter than Bri-Bri, that's for sure.

5) IKN is not the only desk to know the facts about the LIX screw-up. Ask Orocobre, who were for a time considering LIX as a JV partner before seeing the slipshod way in which it went about business and then the corner-cutting and rule-breaking it ran to try and cover its tracks. Another neighbour on those flats, Advantage Lithium, knows about all this but didn't want to cast its own company in the bad light created by LIX. As for the regional governments (LIX has to deal with two), they've known for a while (after all, they are the people who suspended LIX's licence) and they're highly annoyed because they have strong directives from the Macri national government to get lithium moving, but worked out too late that they'd let a bunch of amateurs in through the back door (they sounded so convincing at the time, too).

Anyway, I'm still hopeful that we get a NR out of LIX this evening, but I kind of think they're going to wait until Monday morning now. Certainly looking forward to reading how they try to deny the facts and explain to the market authorities why they decided to keep material disclosures away from the market. And one last thing, LIX longs; you may not like the fact and you may read some squirmy prose from Bri-Bri that tries to find a way of denying it all, but IKN is giving you the straight dope. There's no way I would have gone public on this without hard facts on my side and as a quick reminder, many nefarious mining people have opened legal actions and threatened to sue this humble corner of cyberspace over the years, but not one has succeeded: That's because IKN tells you the truth. Hard, uncomfortable truth. You're the one who fell for the Giustra bullshit, live with it dumbass.



The Friday OT: Nirvana; Lithium

Rocking out a quiet week on the blog:




Youtube here.

PS: Mind you, their best track always will be Breed.

Asanko Gold (AKG): Yes, they really are this stupid

A couple of interesting things arise from yesterday's NR out of AKG:

1) As other people such as Muddy Waters have noticed, the company QP Phil Bentley has quietly been removed from the company and its website. This is of course the same Phil Bentley whose work did for Great Basin Gold way back when.


2) To prove how stupid these people are, IKN has been told by more than one reliable source that in the days running up to yesterday's NR, AKG was quietly phoning round (what it deemed) "friendly desks" in the analysis/brokerage world, tipping people off about the upcoming negative news that would be in the NR. As Muddy Waters is currently short AKG, doing things like this is tantamount to suicide as 1) all insto desk phone calls are these days recorded 2) any smart US lawyer can subpoena for recorded information 3) Muddy Waters is full of smart lawyers. Once the smoking gun is discovered on these tip-off phone calls (and I am told they were most definitely in the plural) the USA listed AKG may well find itself in even more trouble than it is today.

(UPDATED) Just in case you're wondering about Lithium X (LIX.v) and its Argentina problem...

...and what Brian Bri-Bri Paes-Braga needs to disclose in his upcoming annuals, it's that the company has had its permits suspended in Argentina. That's because it made a godawful mess when it started to drill, the well literally blew up on them (and there's a video out there to prove it), the government went ape on them and closed the amateur freakshow down immediately.

Bri-Bri and his pals have been trying desperately to get the suspension lifted before the annuals come out, but to no avail. We're now in the interesting position where we get to see just how much they decide to disclose of this obviously material event. What's really worrying the other people working the zone is the fall-out this disaster might have on the whole Li exploration gig going on down there. They're less worried about Bri-Bri and his upcoming pinkslip.

UPDATE: Oh, was it something I said?


UPDATE 2: We hear that LIX is preparing a press release. This is a good thing. When they deny everything (they're telling people that this post "is not true") and say "the permit is on standby", IKN strongly suggests that inquiring minds phone up Orocobre and ask them about that video of the LIX well blowing up they have over there. And also the regional government of Salta to ask them about the permit suspension.


Extra thoughts in a new post, here.

9/21/17

River Plate 8, Wilstermann 0

A magical night of football. River were 3-0 down after the first leg of the tie with Bolivia's Wilstermann, but at home they turned it on and are now in the semi-final of the Copa Sudamericana in the finest style. Five goals (5!) from forward Ignacio Scocco, but perhaps the best of the lot is the last one:



Enzo Pérez runs the length of the field. Youtube here.

There will be no posting on this blog today

For secret reasons.

9/20/17

FOMC and gold

The market never ceases to amaze me...





...about how dumb it truly is.

A Flash update...

...has just been sent to subscribers, Wednesday lunchtime. A couple of portfolio adjustments that were flagged and in the cards anyway, plus a couple of comments.

9/19/17

Argentina Peso update

The Argentine Peso's exchange rate to the Dollar is a reliable sensor for political rick. According to the country's Central Bank today, the month period before the early August PASO elections saw historic record demand for dollars from rank and file Argentines which in turn weakened the Peso significantly.




When the PASO primary election results came out and Macri's government did generally better than expected the Peso snapped back sharply, but the nerves are obviously still there as we count down to the big event, the October 22nd mid-term elections. The Peso can't go under the 17 barrier however much it tries.

Bobby Genovese runs the name change scam: Liberty Silver is now Bunker Hill Mining

A classic move of the shyster and scumbag, the man running Liberty Silver (LSL.cse) (LBSV.otc) Bobby Genovese (the same man accused of the $17m fraud by the US SEC in the same company) has decided to change the name of his company to "Bunker Hill Mining Corp", the change coming into effect on September 28th.

What's important to know is that nothing has changed: Bobby G is still running this BS pumpjob, it's still the same company, it's the same reprobates in cahoots with him, Bobby G is still under fraud charges. Or to paraphrase Bill the Quill:

What's in a name? that which we call a turd
By any other name would smell like crap;




The 7.1mag quake in Mexico looks serious

We're already at 42 deaths and if the images on just about every LatAm news channel are to go by, that's going to go a lot higher. A 7.1 is a big quake, maybe not a wow number but the problem in Mexico City is the soil liquifaction effect that turns the ground under the city into jelly and can ruin structural support of even solidly constructed buildings. Another place with this potential: Silicon Valley. Just sayin'

But back to the real issue today and wishing the best for residents in the zone. Good job it wasn't an 8+ like the one off the South Coast recently.

UPDATE: The official death toll is up to 57, but more chilling is the count of at least 29 collapsed buildings in Mexico City alone.The numbers are going to rise and that is not good at all.

Lithium X

Not long to go, Bri-Bri. People who will be interested in LIX.v's annuals include shareholders, IKN, the government of Salta and The Alberta Securities Commission/BCSC/OSC.

9/18/17

I'm surprised Dalradian (DNA.to) isn't down a lot more today...

...after its NR this morning. Maybe the market doesn't get how negative this ore sorting news is, what with the company dressing it up to make it look like a positive.

Tinka (TK.v) mailbag

IKN Nerve Centre has had three separate mailers asking about Tinka Resources (TK.v) this morning, with the new drill results assay and the price action on the menu. So to be lazy, here's the short note about TK that appeared in IKN435 yesterday evening:

Tinka Resources (TK.v): TK is still bouncing around in the 55c to 60c trading range, no real push in either direction. During the analysis of TK’s 2q17 financials in IKN432 dated August 27th  I wrote this section:

“…at the current burn rate TK is going to get low on treasury soon and as it has a clear pattern of not letting cash/working cap go below $2m, I think it’s a safe bet to say that we’re going to get a placement announcement from TK.v soon.

“The way TK has stuck around 60c has been indicative of the price the market is willing to pay for the next round of financing. I’d welcome a raise at current levels with open arms (and I’m aware that the company has had plenty of interest from brokerages about its next placement) and the company needs to be congratulated, but it also means that we shouldn’t expect too much in the way of share price upside until the process is complete.”

That fits with what we’ve seen since then. In other news, Congratulations to CEO Graham Carman for winning the 2017 Mining Journal “Explorer of the Year” award (12).

Finally, I hear that we can expect a NR on the latest drill assay results in the week ahead. Oh, nicely timed for Beaver Creek and Perumin! Who would have thought…


And yup, right on time, we had that drill assay number today. Pretty good too, it's just that the market is used to seeing good numbers from Ayawilca.

Sandstorm (SAND) (SSL.to): Beaver Creek gossip

It didn't take long for the chatter to start at Beaver Creek. This desk understands that a chunk of Monday morning conference jungledrums concerns Sandstorm (SAND) (SSL.to), which is looking to sell around 6% of its holding in Trek Mining (TREK.v) and get its position down to a more manageable 10% or so. SAND was first approached by a stink-bidder who got short shrift (sorry Marin, doesn't work like that) but is now in more serious conversations with a potential buyer. The question, as always, is the price.

Further to last week's HIVE post: Paging Peter Schweizer

We note that the new Frank Giustra pump job, HIVE Blockchain Technology (HIVE.v), is off and running and being pumped by just about anyone in the whole sordid game this morning. Frank's spread the love of those 1c and 3c pieces of paper far and wide, so right now you're getting Keith Neumeyer's poodle Daniel Ameduri pumping the thing, as well as Frank Holmes, NIA, CEO.ca of course...it's the whole nine yards.

This is of course the company we featured in the post last week to illustrate just how the sharks rip off the retail saps. But IKN's interest goes way beyond the share price performance of HIVE.v this morning (up at 90c already, I see...that puts $3m minimum into Tommy H's back pocket) and to the seedier parts of Vancouver. Therefore IKN calls upon ace sleuth Peter Schweizer to do the following:
  • Go to Haywood
  • Visit the desk of the Medallion holder doing the HIVE/Leeta transfers.
  • Make absolutely sure that both counterparties signed the paperwork before it was rubber stamped.

You'd do the Canadian capital markets a great favour if you did. It would be great if you got there before the Canadian market authorities did, too...scoops and all that. Have a nice day.

9/17/17

The IKN Weekly, out now



As seen just outside Badajoz, Spain (close to border with Portugal). Chosen by reader M.

IKN435 has just been sent to subscribers. It has 14,319 words this week, which is about average. Words, charts and tables, also average.

Sunday morning: Current status...

...writing up IKN435.



Hi Daryl! Hi Chuck!

PS: Very happy with the new Asus laptop in its first few months. Fast, flexible, easy to use. Recommended.

9/16/17

The top three most visited IKN posts this week are...

...in reverse order:


Third Place: "And Mining Journal 2017 Explorer of the Year is...". Well done Graham Carman of Tinka Resources.

Second Place: "Orla Mining (OLA.v) goes the deceitful route on drill NRs". The blog had a busy week hits-wise, with several posts that would normally win the hit count not making the top three. This one sneaked ahead, probably due to the follow-up post yesterday Friday that noted how OLA had been "asked" by IIROC to correct its BS.
 
First Place: "HIVE, the next CEO.ca pump (a.k.a. how tilted is the playing field)".Won by a mile. This thing is the next big Vancouver pump, it's going to be very noisy and as this post points out, the people in the centre of it are going to make a lot of money. By transferring your money into their pockets. It's capitalism, baby.

9/15/17

Another small victory: Orla Mining (OLA.v) forced to correct its BS news release

This is getting to be quite a habit. First Cardinal (CDV.to) got its knuckles rapped for being BSsers, now this.

Here's IKN two days ago.

Here's Orla Mining's (OLA.v) "clarification" tonight.


Miners Fixated with Beaver

If I were you I wouldn't worry too much about the generally soft market for mining companies today, there will be a more bullish atmosphere next week as the Beaver Creek conference takes place and generates its usual annual noise. Meanwhile South America will add its own dosage of shiny happy people news via the region's biggest mining gig, the biannual Perumin which also kicks off on Monday.

The Friday OT: BT; Skylarking

A total obsession. I'm lost inside this track at the moment, when I'm listening to something else I'm thinking about it. Layered, complex, crafted, listen to it for the 51st time and you'll pick up something new. It's amazing.




I cannot stress too highly the need for good speakers, don't listen to this on the ones provided in your laptop. Don't buy cheap earphones with crap magnets and then wonder what I'm on about. Youtube here.

IKN is worried about Southwest Canada

It seems you need help around there. This in Jewish Press today:






When did all these mines get laid, my fine Canadian friends? Are they close to Vancouver, or in the forest regions of BC? Or maybe the Jewish Press doesn't have a clue on what it's talking about? You decide.

Hilariously, Bobby Genovese is still trying to promote Liberty Silver to the world

Here's a screenshot of the mailer promo being sent out to certain desks in Canada this week:



You'll notice there is no mention of the main man behind the deal, Liberty Silver is desperately trying to separate its image from the largest shareholder and real deal driver Bobby Genovese. That's because he's been charged by the US SEC in a U$17m stock dumping fraud. And yes the company used was by Bobby G was this one, Liberty Silver. And impressively, the circumstances were very similar back then, too.
  • Bobby G was largest shareholder.
  • He kept quiet and in the background.
  • He dumped $17m worth of stock without any disclosure.
  • Liberty Silver collapsed.

Now you have fun out there.

Peru's government commits suicide

The basic story:

The Fujimorista-controlled Congress wanted to bring a vote of confidence against the PPK government's Minister of Education.

Cabinet Chief Zavala (PPK's right hand man) tried to bluff them out and went to Congress with a "vote no confidence on the whole of the cabinet of ministers, we back our Education Mjnister to the hilt.

The Fujimorista controlled congress called this idiot Zavala's bluff, voted no confidence on the whole of the cabinet and now they ALL have to resign. Which has just happened.

As of tonight, Peru has no ministers and its President is ruled by Keiko Fujimori, the person he beat in last year's Presidential election. Because PPK and his Cabinet Chief Zavala are fools.

Hilarity ensues.

A Flash update...

...has just been sent to subscribers, Thursday evening. A small move.

9/14/17

Tahoe Resources (TAHO) (THO.to): Only U$17,000 this time

Yesterday Wednesday September 13th, thieves broke into the Shahuindo mine of Tahoe Resources (TAHO) (THO.to) and stole S/57,000 (U$17,600 approx) in cash as well as an undisclosed amount of equipment (drills etc).

Well run company. No security problems. No bad feeling among locals.

The bit that really sticks in the craw about Rye Patch Gold's (RPM.v) news release today...

...isn't the "oh we screwed up the gold production" bit, nor the lame excuses for the screw-up. It's this bit, the quote from Howald:
"Although the time lag in production of gold ounces is our first bump in the road to what has been a remarkably successful ramp-up, we have made modifications in our planning and execution to speed up the process," said William Howald, Rye Patch President and CEO.
Remarkably successful ramp-up? As my fine feathered friend Owly would say...

...because if you check the RPM corporate presentation on Florida Canyon from this time last year when the whole shebang was first unveiled...
...you see that first production was set for the end of 2016 and the mine was supposed to be in commercial production by 1q17. Instead we have a company that's sold off valuable assets to pay for time and diluted its share count even further by raising more capital it said it wouldn't need. And now you're telling the world that 3q17 will suck as well!

Remarkably successful ramp-up my fat ass, Howald. More like your remarkably shiny brass neck.


Cardinal Resources (CDV.to) (CDV.ax): A small victory

This was IKN on August 23rd.



This is Cardinal Resources today:


Nuff said.

9/13/17

HIVE, the next CEO.ca pump (a.k.a. how tilted is the playing field)

Coming soon to a screen near you is the next Frank Giustra pump. Its name is HIVE, it's in the final stages of a reverse take over process of another Giustra company called Leeta Gold (a total failure) but HIVE is very different, it's going into the Cryptocurrency Mining (capitalized it on purpose because It Is Important) and will be out there doing wonderful crypto things with Bitcoin, Ethereum and hopefully Dogecoin (it would be a hint of true worth).

Look folks, I don't know much about cryptocurrencies (even though I'm one of the few people you know who has actually bought and sold Bitcoins and made real world transactions with the thing), but I do know what a Vancouver rip-off pump looks like and that is why this post exists today. It's not really about cryptocurrencies and in fact, on thinking about it, it's not even about HIVE, it's more about the way in which the people running this white collar crime you know as the TSXV make oodles of money from you.

Okay, blah blah intro over, here's the deal:
  • At this current time, HIVE (the new crypto company) is running a Reverse Take Over (RTO) with Leeta Gold. Once the process is over the new company will be called HIVE and Leeta disappears forever.
  • Right now Leeta is a shell company. It has recently been controlled by various people, but the chief names for our purposes are Karen Addie and Anthony Beruschi.
  • These two people are what are known in the trade as "bag holders". They're front people for the real financial force behind a project and in this case, it's our faithful friend Frank Giustra and his cast of merry men. 
  • On June 2nd 2017 a series of three transactions took place. Karen Addie sold 7.486m shares and 4.5m warrants of Leeta Gold to an unknown buyer. Anthony Beruschi sold 13m shares and 13m warrants of Leeta Gold. And a corporation controlled by Anthony Beruschi sold 9m shares and 9.5m warrants of Leeta Gold. All these transactions went through at a price of between 1c and 3c per share or warrant.
  • If you do the math yourself and you'll see that's a ...a....a very lot of numbers.
  • Right now, Leeta Gold is a 29c stock. According to the people at the centre of this pump, once the company is off the NEX list and the project is presented to the world it's going to be worth dollars.

Therefore ask yourself; who in their right mind would sell something for between 1c and 3c when it's worth right now 29c and is projected to be worth dollars in the near future? Somebody unconflicted? Or somebody inside a scheme to make a few people very rich? Add to this a couple of extra facts:
Firstly, on September 7th 2017 Leeta awarded 3,398,771 shares to somebody as a finder's fee. IKN can exclusively reveal this evening that the person who received those free shares of Leeta, about to become HIVE, is Tommy Humphreys of CEO.ca. Tommy is of course a sycophant of Frank Giustra and a close friend of our next named persona, Brian Paes-Braga (aka Bri-Bri, bless his heart).

Secondly we offer up Bri-Bri, he's been waltzing around his new watering hole "The Banter Room" in Vancouver bragging to those he wants to impress how he now owns "millions of shares of Leeta", that "this is the big one", that "his second and third Ferraris are on order" and other such tranches of wonderfulness. So ladies and gentlemen readers of this humble corner of cyberspace, guess where those "millions of shares" have come from? (hint, ask Katie and Anthony).
Once this company moves from the NEX to the TSXV and is open for general trading, this is going to be the plat du jour at CEO.ca and all the other financial media sources controlled by Frank Giustra. The reason is simple, there is a inner circle of scumbags who want to exchange their equities for your money. You do not stand a chance against these people. You will remain poor, CEO.ca will remain mysteriously funded forever, Tommy and Brian and Frank will extract the money from your pocket and place it into theirs. And then they will smile at you and promise you that they are your friends. Forever.

Finally, for those who care about facts (and I don't blame you, I wouldn't trust a blog either) all you need to do to is file a FOIA lawsuit/FOIA request and get the share registry from Computershare regarding the counterparties to the Addie/Beruschi sales. IKN calls on the people that have real teeth, such as Peter Schweizer, to do exactly that and then do their job. It's long past time that these scumbags were closed down and Canadian capital markets cleaned up.


PS: If the CRA really wants to to catch tax thieves, it should do Canadian taxpayers a favour and get a copy of the shareholder list and all of the "private" buy/sell agreements. We wouldn't want our friends stashing paper offshore now, would we...?

Chart of the day is...

...the US Dollar index (USD), hourlies:




Gold down, PMs down, copper under $3/lb again, even hotpot zinc took a hit. Look no futher than this chart for the reason.

Orla Mining (OLA.v) goes the deceitful route on drill NRs

My thanks to RW, RS and PH who all picked up on this within minutes of its release today. Good to know that good guys are watching.

Remember back in late August and this post about Cardinal Resources (CDV.to) (CDV.ax) and its "ridiculous, deceitful BS news release"? The one that decided to ignore all the empty dirt bits of a drill hole and just report the cool bits with grade, making it sound like a good hole when it was nothing of the sort? Well folks, far from having the Canadian authorities stamping down on this nefarious way of fooling the world, they seem to be encouraging it and allowing it to become a fashion. Take a bow, IIROC/BCSC/CIMM, your mothers should be proud of you.

Orla Mining (OLA.v) has decided to go the same route. Here the headline from OLA's offering this morning, as screamed to you by some idiot in an IR department who thinks he's clever (and it got past the board...my stars where is the control here?):

Orla Intersects a Combined 104.8 Metres Grading 0.38 g/t Au and 1.71% Cu at the Cerro Quema Project, Panama

You see that word "combined" slipped in there? The sneakies decided to go that route because If you look at the actual intercept...



...you see its 41m of overburden, then 49m of stuff, then 28.7m of non-stuff, then more stuff. And in fact if you check out the second 55.8m or so, its real reality is 17m of high grade material (5%+ Cu) surrounded by mediocre 0.5% rocks that, being deep and sulphide, are economically very iffy even at this "conceptual" stage. And all this is aside from the fact that Cerro Quema's main gig is the oxide on top. 

If you expected better things from a company with Chuck Jeannes at its helm, think again. This is junior mining and any BS will do to fool the sheep and mouthbreathers into buying your paper.

UPDATE: Best feedback received (so far) is from reader CM with this:

Scammium One is pleased to announce combined drill results of 175m of 15g Au and 7.5% Cu at the 100% owned Sammasscamcan property in Scamdinavia.*

Well played, sir.

9/12/17

Bad news for Amir Adnani and TwatMining Inc (GOLD.v)

You may know Adnani's vehicle by its official name of GoldMining Inc (GOLD.v), but we here know it as TwatMining. Mainly because its real name suggests the company is looking for gold when in reality it's searching for twats to buy worthless paper. But also because the original post made me laugh even while writing it.

Anyway, bad news for TwatMining and Amir, because today in Colombia the news is that the Titiribi zone, exactly and precisely where one of its main "assets" is located, is going to be the next municipality to run a referendum and vote for the permanent banning of metals mining in its jurisdiction. Sold to you, sucker! (betcha Rick van Alphabet is laughing tonight).

Join The Allan Barry / RocketRed Campaign to close down IKN!

Roll up! Roll up!

Seriously, this is getting better and better and I haven't even chosen a lawyer yet. Today on CEO.ca Allan Barry and Rocket Red (aka Renneberg) came up with a brilliant plan. Here's the screenshot and here are the two links to the main posts to help you see the originals if need be):




Isn't it wonderful how birds of a feather flock together? Anyway ladies and gents, I think this must be your big chance so why not help Messrs Barry and Renneberg with their crusade? Here's the relevant link to the Google complaints department that Renneberg wants you to use so go ahead, click it and write something about the "lies and racist stuff" you see on IKN and remember, if your grammar is better than the crusaders in chief you may get more traction with the nice Google people (see the latest Alset (ION.v) news release for further details of how not to use the English language).

JOIN THE CAMPAIGN TO SHUT THIS BLOG DOWN! YOU KNOW IT MAKES SENSE! And let's face it, those two reprobates aren't the first seedy characters that IKN has annoyed over the months and years so if you can think of somebody who'd appreciate joining them and helping shut IKN down once and for all don't hesitate, send them the link to this post, let's see if we can get the Allan/Renneberg initiative to go viral.

Yours in hope of an early retirement, Otto.

Sandstorm Gold's (SAND) (SSL.to) free float

It works like this:
  • As at August 3rd (2q17 MD&A) SAND has 184.514m shares out.
  • As per the latest filing, Van Eck (among other things the GDX and GDXJ people via Market Vectors) owned 16.0m shares, representing 8.7% of shares out.
  • As of last Friday Market Vectors announced it was raising the weighting of SAND in the GXDJ from 1.07% to 1.28%. It's going to depend on the final price they pay, but where we are today means Van Eck are going to buy around 1.85m shares on Friday.

In other words the float is shrinking by a number that can be calculated by arithmetic. Meanwhile, for more thoughts on SAND and its share buyback program there's always last week's post on exactly that subject.

And Mining Journal 2017 Explorer of the Year is...

...Graham Carman of Tinka Resources (TK.v).

Deserved, too.

A quick RocketRed/Renneberg update

Those of you using the links included in yesterday's post will note that the posts have have removed. Apparently RocketRed, or pehaps Mr. Renneberg is more becoming, and his cohorts, who include another character on CEO.ca named Nobshere, think that this and then swapping names over will cure the problem. It won't. See you in court, Mr. Renneberg.

In other news, it's quite amazing what you can find out about somebody in a few short hours. Especially when the person in question has made so many enemies over the years with his nefarious market strategies. However, with a legal suit in the offing it's best to keep those as dry powder. 

Enjoy your day, Mr. Renneberg.

Mining 101

Reader P kindly forwarded a missive from an outfit called Vicarage Capital, not because of any particular stock pick but because of the cartoon at the bottom:




We like.

9/11/17

Dear @RocketRed (Updated)

Dear @RocketRed,

I have been made aware of a post you published on CEO.ca around three hours ago. This is the link to your post, this is the screenshot:

RocketRed, you are a liar. Now, there are lot of people like you, all mouth and no brains, who think they're brave and wonderful by lying online. However this case is different. In your post, not only are there four clearly demonstrable statements that I can prove without a shadow of a doubt are outright lies, but they include very serious accusations that include criminal activity on my part. What you wrote and published about my person is absolutely false and due to the seriousness I am obliged to clear my name. 

Therefore, you have two choices:

1) You mail to me and/or publish on CEO.ca a full and unreserved apology that states very clearly that you were not telling the truth and now regret your lies and falsehoods. I will give you 24 hours.

2) If not I will begin legal action for defamation of character, specifically to sue you for libel. The action will include a petition of exemplary damages due to the serious nature of your lies. The action will begin by issuing a subpoena to CEO.ca in order to find out your real name and address. From there you will be served. 

As with that other anonymous chatroom pondscum who decided to go way over the top about me and force me into taking legal action to uphold my good name, I am being more than fair by giving you the opportunity to make a full apology. And by the way RocketRed, I know how this system works because over time, several unsavoury characters have tried to sue me for libel. None have succeeded because I told the truth about them. Unlike you, all you managed to get right is my last name you crudball. Prepare to be poor. 

Consider this due warning.

UPDATE: I see you are a brave boy:



Not only are you a liar, but you quite clearly know very little about the law (hint: ignorance of law is not a defence). However, I will stick to my 24 hour offer because unlike you I am a man of honour. But after that and after seeing your mouthful of a reaction I promise you, as long as that apology doesn't show I'm going to take a lot of pleasure in making you poor.

UPDATE 2: Oh wow RocketRed, it would seem you've been spreading your defamation and lies on multiple platforms. You're so cute, and you are going to love the rest of 2017.

UPDATE 3: Renneberg. Too easy. This is going to be even more fun than I imagined.

Louis James of Casey Research: Fraud facilitator or useful idiot? (An East Asia Minerals (EAS.v) scam post)

"If it looks like a duck, and quacks like a duck, we 
have at least to consider the possibility that we have a 
small aquatic bird of the family anatidae on our hands."
Douglas Adams


The IKN post on the revival of the East Asia Minerals (EAS.v) scam under Mike Hawkins brought several pieces of interesting feedback, not least from reader 'C' who reminded your humble scribe how Louis Lobito Little Wolf James of Casey Research lost him a truckload of cash by reco'ing EAS.v just a few days before the story started to unravel (and long after the smarter end of the anal yst world had worked it out and got their clients out). As it happens IKN documented the Casey Research pumpjob at the time and the way it didn't let off as the stock collapsed, au contraire Louis James just doubled and tripled down. 

It all started in May 2011 when Lobito pumped EAS.v to his hapless flock in breathless terms, such as:
"... its flagship Miwah project in Indonesia... could well be on its way to a monster gold discovery in the tens of millions of ounces."
 And:
"....it’s the first 43-101-compliant resource estimate that we expect to really drive the market to have another look at Miwah."

At that time EAS.v was a $5.50 stock, but days later the pump began its dump phase. That didn't put Lobito off though, in July 2017 he told his subbers to buy more, script including...
"We believe the first pass resource will grow rapidly and continue to see the recent sell-off as an opportunity."
..as well as other chunks of wonderful. Not long after scamrunner in chief Mike Hawkins resigned "for health reasons" (!!!). By then it was already cut in half down to $2.30 and dropping like a stone. But Lobito didn't stop, he pumped it again in August 2011 at $1.70 and then as it just continued to drop and drop tried to sweep the whole mess under the carpet, all while keeping it as a official reco and buy in his rag. But IKN watched and noted his position in August, in October, and even in a reminder post about his call on EAS  in this 2012 post.

Looking back on it all from this distance, six years on, it's pretty clear to this humble scribe that there are only two possible explanations for Lobito's pumping of this obvious scam:
a) He was a useful idiot, with a large but stupid audience and oblivious to how the world works, wheeled in to a create liquidity into which the scam runners could sell their stock.

b) He was an active member of the East Asia Minerals (EAS.v) scam, in cahoots with the white collar criminals running the show and making craploads of cash off the backs of the people who paid him for investment advice.
And considering how many other stocks he reco'd at the time had the same type of hellishly poor performance, chances are he was being a) or b) many times over. Either way, hardly the type of person you'd want to trust for your next investment. 


And as for the move in Tahoe Resources (TAHO) (THO.to) this morning...

...on the back of its NR about the permit in Guatemala...


...what people who moved the stock up 38% or 40% seem to fail to gather is that the Escobal mine isn't opening any time soon, that the permit is still under legal review, that TAHO has to get community approval before it's out of the woods and, most importantly, the people who they need to get on side are the same people that are blocking the access to the mine. As for the NR itself, that was one veeeery carefully worded piece of legalese. Strange how the market will continue to believe bullshit liars. I mean seriously, what are you betting on here, rule of law in Guatemala?

PS: Dan Earle at TC Sec made the right call this morning: "Potentially Positive". A segment screenshot:



Stocks shouldn't rise like this on potentially positive.


Alamos, Richmont and a $35m break fee

A decent tell on the place we are in the precious metals cycle will be whether there's a third party interloper on the deal. We haven't had one yet in the deals struck 2016 and 2017, we won't get to the end of the gold bull run without a few.

September 11th

Remember.

9/10/17

The IKN Weekly, out now




IKN434 has just been sent to subscribers. The usual guff and nonsense, alors.

Wishing best things for Florida and the wider area. Hang in there people, do take it easy and don't take any risks.

The East Asia Minerals (EAS.v) scam: Head scam runner Mike Hawkins rises again

I'm a little late to this news, so thanks to reader 'DE' for the nudge on this news release dated August 25th from East Asia Minerals (EAS.v). Here's the relevant extract:

The Company is also pleased to announce the return of Mr. Mike Hawkins, the former CEO of East Asia Minerals Corporation (2006-2011). Mike has been appointed as the Company’s Executive Consultant. As the former CEO responsible for identifying and acquiring both Miwah and Sangihe mining projects, which the Company is currently developing he has been appointed to provide guidance and consulting on the asset development of Miwah and Sangihe as well as assisting on identifying and acquiring new mining opportunities for the Company. “During Mike’s tenure, in 2010, the Company reached the historically highest market valuation of $600 million and acquired several gold and uranium properties,” said Mr. Filbert.

Mr. Filbert further commented that, “Mike was responsible for the acquisition and then sale of a uranium mine asset to Areva NC for $83 million and a dividend of $70 million to East Asia shareholders. We are fortunate to have his guidance and access to his 30 plus years of experience as an exploration geologist and executive for major mining companies throughout the Pacific, Asia and South America.

“Mike has gladly accepted the appointment to return and see through those projects he started before he had to leave due to health reasons. Mike’s rejoining our team should give our shareholders confidence that East Asia Minerals is building a strong qualified team that will lead to new opportunities for success based on the historic value of the Company.”


Health reasons! HEALTH REASONS!!!! My stars, you know the fun times are back in the TSXV show when this scumbag goes back to the scene of his crimes and is welcomed in with open arms by the brand new pieces of excrement running the shop. You may not remember this IKN post from October 2011 after EAS collapsed, but I sure do. There have been several companies over the years that get compared to Bre-X, but EAS.v really does deserve the comparison. Remember the high sulphidation drill results that were all exactly the same, whatever the hole? Remember the whispers of "there's 30m ounces here!" that would never get to a NR but would whistle round the desks? But above all remember this, the $5m+ in shares that Mike Hawkins while CEO cashed out from 20c options awards:


He sold all the way down, right from the height of the utter BS hype he created. Seeing this douche back at EAS is all you need to know. Avoid like the plague, do not believe the hype, these people are liars and thieves.

9/9/17

The top three most visited IKN posts this week are...

...in reverse order:


Third Place: "Novo Resources (NVO.v), Kirkland Lake (KL.to) and the Rabbit Warren prospect in 1980". Novo is like Hansel, so hot right now. Therefore you put the name in the title line and the post is going to get extra hits. Normal.

Second Place: "Sandstorm (SAND) (SSL.to): Mailbag and share buybacks (from IKN433)". Also normal is that posts with real content get more hits than the usual tripe and nonsense on this humble corner of cyberspace.
 
First Place: "A message for Brian Paes-Braga". Lots of people looking forward to reading the LIX YE MD&A, Brian.

9/8/17

Brian Paes-Braga is having funding issues

More Bri-Bri!

Sources down under inform this humble corner of cyberspace that DV Resources, the shell that's reversing into Deepgreen Resources and will list on the TSXV as Deepgreen in order to promote the merry bejeez out of a very silly underwater mining wankfest idea, has come up short on its seed round of financing. Potentially wary of having Bri-Bri as head, not even having Frankie G in the background and Tommy Humphreys as pom-pom waver is enough for them. Result? Bri-Bri has told the private Deepgreen shareholders that he and his pally pals are willing to make up the difference, but as long as they get an extra slab of dirt cheap paper to sweeten things.

Bottom line: Deepgreen is already regretting falling for the Frank Giustra spiel. Hilarity will ensue.


The Friday OT: BT; Divinity

For hurricane Irma, a little Ima.



What gets me about BT's album Ima is its age; 1995 and still sounds absolutely up there with anything new, undated in a musical genre which morphs so rapidly. This is the track from the album BT liked the most. Youtube here.

Copper today

Definitely the most interesting chart in the metals stable:



The wise tell me it's due to profit-taking. Ok I believe that, but it also means the move up was largely speculative, which begs the question on what price is truly supported by fundies rather than market hot air.

PS: Have to applaud HudBay's (HBM) timing, the C$242m financing announced at the close yesterday is a bought deal and therefore somebody else's problem.

Mexico 8.1mag

Sending best wishes to friends in Oaxaca State, as well as all the South of Mexico. So far 16 people are confirmed dead, that's almost certain to rise.




So far, those aftershocks have been in the 4.0 to 5.7 mag range, which aren't funny to experience but not too heavy. Hopefully we don't get to add a 7+ to the cluster. USGS map from here.

9/7/17

Au 1350

ding!


IKN recommends: Geology For Investors

I came across this website, Geology For Investors, by pure chance this afternoon and having spent a while checking it out, it's one that readers of this humble corner of cyberspace should know about too. Written by a team of geologists and with plenty to chew on, even professional geols and experienced mining professionals will find it worth their while. Here's part of the blurb on the "about us" page, read about the site in their own words:

What we do

At Geology For Investors we seek to demystify mineral exploration and mining projects for resource investors by:
  • Creating a knowledge base of useful articles on exploration geology and geological methods written with the non-professional in mind and,
  • Provide ongoing evaluations of data presented by real companies on current exploration and mining projects.
Our writers and contributors all have a background in geology, mineral exploration or mining. It is our collective goal to become part of your educational process, especially when it comes to geology and mineral exploration.

They also run a free weekly newsletter subscription, so sign up for that here (I've done so already, it comes on Fridays). So now you know, go there too.

Your Sandstorm (SAND) (SSL.to) thought for the day

If you had bought SAND while John Doody's subscribers were selling, on the back of Doody's dumbass sell call in late April, you'd now be 50% up.

A Flash update...

...has just been sent to subscribers on this warm and sunny Thursday morning.

Kinross (KGC), Goldcorp (GG) and Cerro Casale: Compare and contrast

Kinross (KGC) 2017 year to date chart, compared to the Gold & Silver Index (XAU):

Goldcorp (GG) 2017 year to date chart, compared to the Gold & Silver Index (XAU):

It takes a special level of idiocy to make the board of directors at Kinross look smart. David Garofalo is the man for that job.

9/6/17

The U.S. Open

That moment when your two favourite players are playing each other and you just want them both to win.

Delpo won.

A message for Brian Paes-Braga

Dear Brian,

We note with interest that the annual financials of the company at which you are (still? currently?) CEO are due out soon, in the next week or so.

With that in mind, a piece of advice, Brian; Make sure you include ALL the material disclosures, Brian. It isn't just IKN y'see Brian, there are a lot of people interested in comparing what you publish to what's been happening in Salta.

We wouldn't like you to have to re-state your annuals, Brian. Frank wouldn't like that.

Lots of love, Otto.

Sandstorm (SAND) (SSL.to): Mailbag and share buybacks (from IKN433)

This was a small section of IKN433, out last Sunday, that covered the share buyback currently being run by Sandstorm Gold (SAND) (SSL.to). Feedback from the piece (which in turn came from reader mailbag from 'JH') was interesting and as one of them said, there are thoughts here that apply to other companies, not just SAND.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx


I received a mail from JH who took issue with the fact that I seem to support the share buyback policy at SAND, that’s been in place for a while but only in the last few weeks has the company got busy on it. It got a quick mention last week, but the last time I went into the issue was while looking at SAND’s 2q17 numbers in IKN427. Here’s that section of the anal ysis:

“I’m assuming that what Nolan Watson said on the ConfCall (transcript link below(1)) comes to pass and SAND gets “aggressive” on its plans for share buybacks this current quarter. It wants to buy stock now, it has the right to buy 7.598m shares from now until March and it wants to buy as many as it can now before the ETF rebalancing period kicks in at the end of September (SAND strongly suspects Van Eck and its friends will be buying chunks of SAND shares). At the moment and now the Mariana purchase is closed, SAND has 184.514m shares out. I’m guesstimating that as going down to 181m S/O by the end of this quarter, that means SAND would use its Q3 cash flow on buying its own shares, plus a bit more.”

As for JH’s opinion, here’s most of his mail to me (I’ve snipped bits and pieces out to keep it focussed, then cleaned up a couple of very minor grammar things, but there’s nothing missing on the message):

“I am a shareholder of SSL, have been for a long time, and am quite against this way of using cash considered excess to requirements by management. Can I point out a few numbers?

“There are 184 million shares. The programme is for a maximum of 7.6 million shares, or 4.1% of the outstanding. So if the whole thing were done, which it will not be as the price has gone up, earnings per share would be increased by 4%. Using the numbers you suggest, the number of shares going from 184.5 to 181 by September, the reduction is 2%, and the increase in earnings per share more or less the same.

Since 6 August, gold has gone from 1267 to 1309, so up U$42 dollars an ounce.

“The company sold 12,700 oz in Q2, so assuming no change in Q3 that would be an extra half million in, which would go straight down to gross profit, so from 4.6 to 5.1 million, so 10% increase. In the same time, the share price has gone from 3.87 to 4.75.  Up 22% which is very cheering.

“Do you really think the driver for the share price increase is the reduction of the number of shares by 2%, or the increase in the price of gold? Conversely, if the price of gold drops back to 1260 do you really think the share price will hold up?  I will bet no, but in the meanwhile Mr. Nolan and his board will have given several million of shareholders money to people who do not wish to be shareholders any more, and those who have kept their shares will be back to stage one, without having benefitted from anything, which they would have if they had received a dividend.

“…ultimately we are talking about mines, which are finite resources. The least management can do is try to return to investors the cost of buying and developing the mine before it is exhausted.

“Share buybacks are part of the "pass the parcel" culture and shareholders are not the beneficiaries. All that to say that when a chap like Nolan declares a buyback programme, I wish people like you would call him out rather that condone it.”

IKN433 back. OK JH (and others) here’s my position on the subject, nice and clear: I’m not and never will be the greatest fan of stock buyback programs and a lot of that is represented in the argument presented above by JH. I realize the company can always turn around and say “We think our share price is cheap and think that today, using cash to buy back shares is a great way of improving Return on Equity”, or they say, “There’s really not much out there that better than our own shares”, wrapping itself in the flag along the way. JH is right in several respects, it is an exercise in ‘pass the parcel’ and surely a company like SAND can find something better to do with U$12m or so (my best guess on how much they’ll spend on the buyback).

On the other hand, I’m not the biggest opponent to the policy, either. For one thing yes, it looks good and the wider market (especially the US market which SAND is trying to woo) likes the policy on an optics level. Secondly, I am clear in the fact that SAND has just made a big investment, it’s not planning on doing any more big ones for the rest of the year and if it’s collecting cash it’s okay (not great, just okay)  to generate a marginally better return for the time being.

As for the idea of declaring a dividend, yes I’d like that from SAND eventually but a dividend policy at this point could turn out to be a rod for its own back. Once in place and unless it’s specifically declared as a special dividend (which needs to be larger sized to make a difference to the share price else just become a wash), it needs to be a regular and ongoing payment. It can’t be opened in 2017 and then closed, because the optics would be awful (for more on the subject see TAHO and what’s just happened to that stock price). At this stage in SAND’s existence I don’t want to see a regular divi, I want them to grow and develop a more mature asset book before devoting a chunk of its quarterly free cash flow to us.  But that period will end and in SAND’s case, once Hot Maden is up and running I won’t just want a dividend, I’ll be demanding one.

Bottom line: It’s a bit mediocre yes, but the current buyback policy fits in with their new conservative, well run, tightly managed financial image. If it were me I’d want to explore other opportunities and ways of deploying the cash before running a buyback, but I have no massive gripe about SAND’s decision for this current quarter.


9/5/17

Mining PRs and the Ottotrans™, Part 101

 

Our occasional series moves into the new century with today's NR out of Silver Bear Resources (SBR.to), a veritable gem of a missive that rambles on and on, but in essence carried a simple message that can be translated in just nine words.

TORONTO, Sept. 05, 2017 (GLOBE NEWSWIRE) -- Silver Bear Resources Plc (“Silver Bear” or the “Company”) (TSX:SBR) takes note of the recent conversion by the Company’s major shareholders, A.B. Aterra Resources Ltd. (“Aterra”) and Inflection Management Corporation Limited (“Inflection”), of their respective outstanding convertible promissory notes (the “Notes”), which was announced on August 30, 2017 by both Aterra and Inflection (the “Major Shareholders”). The Aterra and Inflection Notes represented C$4,505,144 and C$13,515,432 principal amount respectively, in addition to their respective accrued and unpaid interest.
Prior to the conversion, Aterra held 40,468,579 common shares of Silver Bear, representing 24.8% of the Company’s then shares outstanding and Inflection held 41,176,471 common shares of Silver Bear representing 25.2% of the Company’s then shares outstanding.  After the conversion of the principal amount of the Notes and accrued and unpaid interest thereon, Silver Bear now has an aggregate of 668,047,513 common shares outstanding. Of these, Aterra holds 166,611,092 common shares, representing 24.9% of the total issued and outstanding common shares and Inflection holds 419,833,120, representing 62.8% of the total issued and outstanding common shares.
Graham Hill, President and Chief Executive Officer, commented: “We understand that the Major Shareholders’ decision has caused significant dilution. However, it should be noted that their action has significantly reduced the company's outstanding debt and resulted in a healthier balance sheet. This will improve cash flows after the Company goes into production and should allow for further financing on more attractive terms.
“The Notes were originally issued in November 2015 and in January 2016 were overwhelmingly approved by minority and disinterested shareholders at shareholder meetings. The conversion price of the Notes was set at a significant premium to the market price of Silver Bear’s common shares at the time which were trading in and around the $0.02 range.”
Mr. Hill continued: “We are exceedingly grateful to Aterra and Inflection for their support at a crucial time in the Company’s development, in addition to their continued and ongoing support. Aterra and Inflection provided financing at a time when no other investors would and have afforded the Company the opportunity to advance the project for the benefit of all of its shareholders. Their decision does not at all affect the robustness of the Mangazeisky Silver Project, which, as reported in our previous press release on the 28th of August, is well advanced in its development towards production and continues to be a very attractive project, both economically and technically.”
About Silver Bear

And this is what it means:

Our share price is screwed and we know it.