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6/28/17

wow

On the seventh day...



...I will not rest.

6/27/17

Dear Allan Barry

Try this link.


Holy sweet mother of higher deities, you're an embarrassment.

A Flash update...

...has just been sent to subscribers, Tuesday morning about half an hour after the opening bell.

6/26/17

The fun never stops at Eight Capital

They're going to get the name of the (almost certainly Dundee or ex-Dundee) whistleblower. Here's the link and here's the text. As an IKN pal pointed out last week, Sferra and Attanasio have yet to grasp the concept of The Streisand Effect.

Eight Capital men win identifying order for "MadeIn86"
Current Events (C:*CURRENT)
Monday June 26 2017 - Street Wire
by Mike Caswell

Toronto businessmen Mark Attanasio and Donata Sferra have won an order in the Supreme Court of British Columbia directing Stockhouse Publishing Ltd. to identify forum user "MadeIn86." A judge has ordered Stockhouse to disclose the user's registered name and contact information. Also covered by the order is the user's IP address, which could allow Mr. Attanasio and Mr. Sferra to track the user through his Internet service provider.
The order comes just over a week after the two men complained to the court about MadeIn86. They said that he was behind a single post that appeared in Stockhouse on June 5, 2017, that was entirely false and defamatory. The post accused them of having sex with their superiors to get ahead. It also called both men "crooked" and said that Mr. Sferra was "deep fryer Slimy."

Details of the case are contained in a petition the men filed at the Vancouver courthouse on June 13, 2017. They identified themselves as the operators of Eight Capital Partners, a broker-dealer that was formerly known as Dundee Capital Partners. The post that they complained of appeared in the Stockhouse form for CBW, which is the symbol for Cannabis Wheaton Corp.
The post, which was included in full with the petition, was titled "The Criminal Chuck Got in Bed With." It began with Mr. Attanasio, accusing him of "banging his boss at National Bank as a young trader" and of improprieties related to an organic food company called Blue Goose Corp. He and the company's president "connived to purchase land properties and assets at ridiculously inflated prices they owned secretly ... even though the land and assets were of no use to Blue Goose Corp.," the post read.

"When the scheme was about to be blown wide open Mark Attanasio decided to 'blow the whistle' as an informant to save his skin. Ned Goodman, the owner of Blue Goose Pure Foods decided to offer Mark Attanasio a position in Dundee Corporation keeping him safe as a whistle-blower, and offer him a chance to fix the mess," the post continued.

As for Mr. Sferra, the post explained how he "drew up a clever strategy to slither his way from the Sales desk of Dundee Securities to the Mining Investment Banking Team while banging the head of HR Naomi Ruby whose husband found out about the affair and divorced her recently." The post went on to explain how Mr. Sferra "caused so much havoc" that many of Dundee's best employees left and set up a competing firm, Maxit Capital. "Bright minds like Bob Sangha, Brad Ralph and upcoming young wiz's like Mike Spencer and Stanley lu started Maxit and quadrupled their deals and earnings in less that a year of opening shop while Dundee Securities went for a deep dive catastrophe," it stated.

Mr. Attanasio and Mr. Sferra claimed that the post had caused serious injury to their business and personal reputations. They said that they had sought assistance from Stockhouse to identify the author, but Stockhouse would not release any identifying information without a court order.

Vancouver lawyer Robert Deane of Borden Ladner Gervais LLP filed the petition on behalf of Mr. Attanasio and Mr. Sferra. Stockhouse did not appear in court to oppose the matter.

A quick comment on the Red Eagle (R.to) deal

With Red Eagle (R.to) trading at or under 35c this morning, the market is basically saying that a 50c warrant with a five year shelf life is worthless. As Spock would point out, that is illogical Captain.

Maybe it's because the market doubts the problems announced today are not repairable. If so, once the company explains further and/or gets the backing of the bigger holders of R.to this stock moves back up.

Or maybe it's because rights offerings are rare in Canada and not understood. If so, this stock moves back up.

As it stands today and speaking as a R.to shareholder, I will be taking up my rights fully. It's a no--brainer, free money trade. But the people who really win are those that can get in now and buy the stock and the right at this morning's price.

PS: I implied it in one of the above points but just to answer in public a mail received subsequently, of course if R.to cannot fix its problems the stock is worth precisely zero. The debt on the books says that. In fact, paying down some of that financial liability is surely why R wants to raise $30m more than it needs for the repairs. In short, the company needs to convince the market and with the stock now trading at 30c, that's not a given.

6/25/17

Theresa May and the Holy Grail

This is simply magnificent:



Youtube here.

The IKN Weekly, out now




IKN423 has just been sent to subscribers. Izdaniye s novostyami po mnogim voprosam gornoy promyshlennosti.

6/24/17

Smart phone. Dumb human.

This is an interesting paper. 

The mere presence of your smartphone reduces brain power, study shows


Date: June 23, 2017
Source: University of Texas at Austin (UT Austin)
Summary: Your cognitive capacity is significantly reduced when your smartphone is within reach — even if it’s off — suggests new research.
Here's an extract from the abstract:
"The findings suggest that the mere presence of one's smartphone reduces available cognitive capacity and impairs cognitive functioning, even though people feel they're giving their full attention and focus to the task at hand. "We see a linear trend that suggests that as the smartphone becomes more noticeable, participants' available cognitive capacity decreases," Ward said. "Your conscious mind isn't thinking about your smartphone, but that process -- the process of requiring yourself to not think about something -- uses up some of your limited cognitive resources. It's a brain drain.""


Thank you reader B for passing it on. Full thing here.

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

...in reverse order:

Third Place: "Goldcorp's (GG) bizarre and highly suspicious sale of Camino Rojo to Orla Mining (OLA.v)". The bit about the goat got good mail feedback.

Second Place: "IKN has a question for the TSX(v) regarding Cordoba Minerals (CDB.v)...". Sometimes a bit of straight talk is all that matters. For bonus info, this post a day later gives rthe scuttlebutt (which both HPX and CDB deny, by the way. Oh how we chortled).
 
First Place: "Some advice for Mark Attanasio and Donato Sferra". Always amazes me when the dregs of Canadian society go the whiny denial route when found out about their scumbaggery. And they litigate in nanoseconds, too. Scum is scum.

6/23/17

The Friday OT: Soda Stereo; En el Séptimo Día

It kicks off their seminal album 'Canción Animal'. it's the name of the Cirque du Soleil gig getting rave reviews all over South America, it's a kick-ass tune. All hail Cerati, Zeta, Charly, the continent's finest group ever.




Youtube here. And if you don't like Soda....me da igual, me da igual.

Extra ball: This kick-ass live version from 2008...my stars they were the best.


The Alset (ION.v) scam: Still no news on the samples

Alset (ION.v) delivered its samples for assay on May 12th. It's now June 23rd, which means we've been waiting six weeks for the results and to give you an idea of why that's suspicious here's the real deal on lab turnaround times in Zacatecas, from long-term IKN contact "M" (who has worked for serious mining companies for decades) who lives in works in that area of Mexico and was kind enough to write into IKN Nerve Centre yesterday:

Comment on the Alset post: if they are using ALS Chemex, they have a prep lab in Zacatecas, 50km (about an hour) from the project. Turnaround time for similar samples, 2 to 3 weeks. I know this, the last sample I sent there took three weeks (over Easter). The lab can prep several thousand samples per day.

This may be the difference between a junior exploreco run by a qualified person and a company like Alset run by a CEO with no qualifications whatsoever. Not a geologist, not an engineer, not a lawyer, just a gum-flapping stock pumper who got a gig from a scam company and is there to throw sequins into the eyes of the dumbasses on CEO.ca*. Alan Barry, take a bow.

* Seriously, you ought to see it, he's on that chat site 12 hours a day 7 days a week. Tell me, what serious CEO has the time to dedicate to gum-flapping on a scammer's central bullboard?



People buying Belo Sun (BSX.to) today...

...probably don't realize they're buying a company that's still legally barred from building its mine. The blocking order that was overturned yesterday is the easy one to annul. The big one is still in place.

Cannabis Wheaton (CBW.v) fun

So let me get this straight: Cannabis Wheaton (CBW.v) runs its crazily priced $50m placement that was supposed to close on June 21st, then after two days of zero updates they announce that the terms have been changed, the placement is now $60m (plus a 15% overallot that could take it to $69m) and the close date is now June 28th. Well all that's perfectly normal and not suspicious at all, right?

Meanwhile, we can confirm that over at Eight Capital, the brokerage in the centre of this scam, Mark Attanasio has been fired from the company. For being a twat. But the funny one is Attanasio's partner in slime Donato Sferra, who was asked to leave but as a partner, simply refuses to go (he says he did nothing wrong, the fucktard). Must be just the best working atmosphere over there...


Gold up $10/oz...

...since the "Gold ready to rally" post a couple of days ago:




There's more to come, it'll go to U$1,300/oz but big question is whether it breaks through that line in the sand this time. The game's afoot.

6/22/17

TEDtalk: George Salamis: Mining Disruption, An Overview

Interesting stuff from one of the Integra Gold guys. Skip the intro and pick it up at the two minute mark:



Youtube here.

Goldcorp's (GG) bizarre and highly suspicious sale of Camino Rojo to Orla Mining (OLA.v)

Consider some facts:

  • In late 2009 (closed Feb 2010) and after beating out Penmont for the prize, Goldcorp (GG) paid C$308.5m in cash for Canplats and its Camino Rojo project ($4.60 a share plus a 20c valuation on the spin-out).
  • At that time, Camino Rojo had an all-categories 43-101 resource of 3.44m oz gold (and no reserve, see below).
  • On its books, GG folded Camino Rojo into the carry of its nearby Peñasquito mine, which made sense because the plan was to use Camino Rojo as a new source of feed for its big mine. However, it means that we on the outside can't track how much money GG spent on developing Camino Rojo over the seven years of its ownership. (Edit: See update).
  • However, there's little doubt that GG has sunk plenty of cash into the development of Camino Rojo. That we know because now, GG has it on its books with a 1.7m oz gold reserve and a M+I resource of 7.5m oz gold. That kind of resource bump-up costs serious money to achieve.
  • It's no secret that GG under Garofalo has wanted to get shot of Camino Rojo, a whole bunch of news reports in December last year told how GG had hired Scotiabank to look for a buyer. However, at that time and according to analyst estimates Camino Rojo had a ticket price of around $200m.
  • Yesterday, Orla Mining (OLA.v) agreed to buy Camino Rojo. The price; 31.9m shares, plus a 2% NSR. As OLA.v is a $1.30 stock today (it popped from $1.10 or so on the news) those shares GG gets are worth around C$41.5m right now. 
  • The Chairman of OLA.v is Chuck Jeannes, who was CEO of Goldcorp between 2009 and 2016. In other words, Chuck bought Camino Rojo for over C$300m, spent untold millions of GG's money on its development afterwards (Edit: see update) and now gets to buy it for his new company for a pittance of paper. 

WTF? Seriously, WTF is this? Does Chuck have photos of Garofalo in bed with a goat? How the hell can GG shareholders let this deal happen at such a low price? How the devil can the Canadian regulatory authorities give this a green light?


UPDATE: According to Chuck Jeannes on the OLA ConfCall, GG spent another $150m on drilling and development of Camino Rojo.

Atico. IKN420. VMS.

Here's a snippet from The IKN Weekly IKN 420, dated June 4th 2017:

"...a juicy and well-sourced piece of intel passed my desk this week, as apparently the ongoing drill program at El Roble has hit some real paydirt in the form of a high grade VMS intersect in a new and previously untapped location near to the mine. I don’t have exact details but I did hear that this intersect if confirmed after assays represents a new VMS lens. This fits right in with the geological theory that ATY has maintained since buying into the mine."

Here's how the NR out of Atico Mining (ATY.v) today started:

"VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 22, 2017) - Atico Mining Corporation (Atico" or the "Company") (TSX VENTURE:ATY)(OTC PINK:ATCMF) is pleased to announce the discovery of a surface exposure of a copper-rich massive sulfide, cropping out some 130 meters north of the El Roble mine mineralization."

Further questions?

Macquarie bank faces class action over advice on worthless Brazilian mine project

A sell side brokerage guilty of pumping worthless mining stocks to its clients? SURELY NOT!

 Reader 'G' was kind enough to send in this link. Here's how the report starts:


Macquarie Group faces a major class action over allegations some of its investment advisers artificially inflated the price of a small mining company before a sudden collapse wiped out many of its investors.
The investment bank's brokers are accused of deliberately "ramping" stock in Cleveland Mining Group by playing a key role in the acquisition of a Brazilian iron-ore mine project with a potential value of $34 billion that turned out to be a worthless patch of jungle.

Read it all here.

It's so bullish for gold stocks out there...

...that even Red Eagle is going up.

The Cannabis Wheaton (CBW.v) $50m financing was supposed to close yesterday...

...but so far there hasn't been any news on the closure.

There's unlikely to be any problem.

6/21/17

IKN was wrong about Peru FinMin Alfredo Thorne on June 12th

When this humble corner of cyberspace stated on June 12th that Peru's Minister of the Economy and Finances, Alfredo Thorne, would be fired that week (for being caught lying), this humble corner of cyberspace was wrong. By three days.

The news tonight (translated):
"Minister of the Economy and Finances, Alfredo Thorne, today Wednesday lost the Congressional Vote of Confidence and resigned from his post"
Further questions?


Gold ready to rally

The 10 year TIPS yield chart. K.I.S.S.




Nuff said.

There will be no more posts on this blog today

For secret reasons.

Cordoba and the TSX

Here's the juice: It seems that the TSX is actually doing its job for once and is objecting to the terms of the CDB/HPX deal. The deal did get pre-approval from the TSXV before being announced, but what they didn't disclose beforehand was the bullshit sweetheart placement terms that gave Friedland's chosen pals a cheap way in, to the detriment of current shareholders. As CDB is basically owned and run by Friedland, the TSX complaint is of a lack of fiduciary duty towards current shareholders and are objecting to the way in which people like Sprott USA are being favoured.

The TSX (V) wants CDB to drop the placement. Friedland is having a fit of pique and refusing point blank. This could take some time.

6/20/17

Minera IRL: Filed in Lima this evening

This:


Minera IRL files Arbitration claim against COFIDE with Lima Arbitration Center

LIMA, PERU - (Marketwired – June 20, 2017) - Minera IRL Limited (“Minera IRL” or the “Company”) has filed an arbitration claim against Corporacion Financiera de Desarrollo (COFIDE) with the National and International Arbitration Center of the Lima Chamber of Commerce. The submissions of the parties (MIRL and COFIDE) must not be publicly disclosed in accordance with the Arbitration Regulations of said Center that require the confidentiality of the procedure.

The intention to commence the Arbitration was announced by Company press release on June 06 when it also announced the precautionary measure court order granted in favour of the Company that suspends any execution procedure by COFIDE against the Company regarding the payment of the US$70 million Bridge Loan. The Company has stated that the purpose of these actions is to protect the Company’s assets and investments on behalf of its shareholders, communities and employees.


Cristina Fernández de Kirchner




Anyone who watched the rally put on by Cristina this afternoon* will know, without a shadow of a doubt, that the English language commentators and anal ysts up North who have written her off as a spent force in Argentine politics are as dumb as a bag of nails about South America. And if Macri isn't quaking in his boots this evening about October and beyond, he's just as dumb.

For an excellent, concise and perceptive post on CFK today and what it means for the future of Argentina, check out this by Abel. 100% agreement here.


*e.g. me, and no matter what your political stripe might be it was awesome television, a masterclass of politicking.

IKN has a question for the TSX(v) regarding Cordoba Minerals (CDB.v)...

...and it is a simple one:

Why
The
Fuck
Is
This
Stock
Still
Halted?

Freakin' clownshow.

Updating on the Agnico rumour

Yesterday we ran this post on an unconfirmed report that Agnico had suffered another robbery at its Mexico operations. Since then the company has told both IKN and other sources that the rumour is false and all operations are normal. So there you go.

B2Gold (BTG) (BTO.to): Everybody loves Kevin

The results of the B2Gold (BTO.to) (BTG) AGM voting on directors:




Kevin Bullock, who came on board when B2 bought out Volta a few years ago, only just scraped in with nearly 300m votes going against him. Hey I dunno, maybe they don't like engineers there.

6/19/17

Another gold robbery at Agnico Mexico?

Apologies for the question mark in the title, I don't like them either but this news is so far unconfirmed (feel free to mail in if you can confirm or deny).

Word has it that Agnico in Mexico has seen one of its mines robbed again (they got done in July 2016 too) and a month's worth of production left the mine in the hands of a band of heavily armed nastymen this morning. The La India mine to be, same one as last year.

Some advice for Mark Attanasio and Donato Sferra


If you don't like being called slimy and crooked, stop doing slimy and crooked things. 


You'll note that Attanasio lost the CEO's job at Eight Capital earlier this month, precisely because he was caught with his hand in the slimy and crooked cookie jar. And his partner in slime Sferra, the other guy with tens of millions of secretly held shares in Cannabis Wheaton, is just as bad.

Anyway, they made Stockwatch today. Here's the link, here's the full text:
Eight Capital men look to identify on-line detractor
2017-06-19 10:33 ET - Street Wire
by Mike Caswell
Toronto businessmen Mark Attanasio and Donato Sferra have filed a case in the Supreme Court of British Columbia in which they are looking to identify a Stockhouse forum poster who called them slimy and crooked. They say that the user's post was false, malicious and entirely defamatory. They are asking that the court order Stockhouse to hand over identifying information.
The case is contained in a petition that Mr. Attanasio and Mr. Sferra filed at the Vancouver courthouse on June 13, 2017. The two men identify themselves as the operators of Eight Capital Partners, a broker-dealer that was formerly known as Dundee Capital Partners. They are seeking the identity of a Stockhouse user named "MadeIn86." According to the petition, that user was behind a single defamatory post that appeared in the Stockhouse forum on June 5, 2017. It was under the section for CBW, which is the symbol for Cannabis Wheaton Corp.
The post, as described in the petition, accused Mr. Attanasio of achieving business success through theft and "back room dealing." It said that he impregnated his former boss and received a promotion as a result. The post called him "one of Bay Streets worst." As for Mr. Sferra, the post said that he gained his position at Dundee's predecessor by having sex with the head of human resources. The post also accused Mr. Sferra of causing a "deep dive catastrophe" at Dundee's predecessor and of causing many valuable employees to depart.
Included with the petition is the full text of the post that the men are complaining of. The post is titled "The Criminal Chuck Got in Bed With" (with "Chuck" presumably being Cannabis Wheaton chief executive officer Chuck Rifici). The post began with Mr. Attanasio, accusing him of "banging his boss at National Bank as a young trader" and of improprieties related to an organic food company called Blue Goose Corp. He and the company's president "connived to purchase land properties and assets at ridiculously inflated prices they owned secretly ... even though the land and assets were of no use to Blue Goose Corp.," the post read.
"When the scheme was about to be blown wide open Mark Attanasio decided to 'blow the whistle' as an informant to save his skin. Ned Goodman, the owner of Blue Goose Pure Foods decided to offer Mark Attanasio a position in Dundee Corporation keeping him safe as a whistle-blower, and offer him a chance to fix the mess," it continued.
The post, as quoted in the petition, also referred to Mr. Sferra at some length. "One word describes this guy very well. 'Slimy'. I'm talking back of the KFC deep fryer Slimy. All you need to know now is he drew up a clever strategy to slither his way from the Sales desk of Dundee Securities to the Mining Investment Banking Team while banging the head of HR Naomi Ruby whose husband found out about the affair and divorced her recently," the post read.
The post then went on to explain how Mr. Sferra "caused so much havoc" that many of Dundee's best employees left and set up a competing firm, Maxit Capital. "Bright minds like Bob Sangha, Brad Ralph and upcoming young wiz's like Mike Spencer and Stanley lu started Maxit and quadrupled their deals and earnings in less that a year of opening shop while Dundee Securities went for a deep dive catastrophe," it stated.
"Anyone who was at a mid-senior level can verify this details I just disclosed. It would take a couple of thick books to write up the craziness at Dundee that spawned such a collection of slimy, crooked dealing characters that exist today," the post read.
Mr. Attanasio and Mr. Sferra claim that the post has caused serious injury to their business and personal reputations. They say that they have sought assistance from Stockhouse to identify the author, but Stockhouse will not release any identifying information without a court order. For that reason, they are asking that the court enter an order directing Stockhouse to release all such information, with that information to include any IP addresses associated with the user's account.
Vancouver lawyer Robert Deane of Borden Ladner Gervais LLP filed the petition on behalf of Mr. Attanasio and Mr. Sferra. The case has yet to go before a judge.
 


x

The Alset (ION.v) scam: It's been five weeks...

...since the company sent brine samples to the lab for assays, but strangely we've had no news at all despite this type of sample being one of the easiest in the geological world to test. They results must be really really really really really good.

Rick Rule's Midlife Crisis, part one

It's just not enough for Rick Rule to be stinking rich, he's now jealous of the young upstart whippersnappers like Marin Dracula Katusa or the proven securities fraudster Porter Stansberry and the success they've been having in cornering the dumbass greenhorn money. It is, therefore, IKN's solemn duty to document Rick Rule's descent into public midlife crisis and that series starts today with...



...yeah, I'm not joking, it's at the top of this pumphouse informercial link. Yes indeed Barnum fans, you too can spend the modest outlay of just three thousand dollars to find out what's on Rule's mind this week.


6/18/17

The IKN Weekly, out now



IKN422 has just been sent to subscribers. 16,000+ words on 30 pages. Usual guff and nonsense.

B2Gold news

A Mali tourist resort is under attack.

A Father's Day present

My youngest made me this:




She picked out a cool pebble and painted it with a design on either side, as well as around the edge. It's really nice.

Happy Father's Day.

6/17/17

Norm Levine on Cannabis Wheaton (CBW.v)

Norman Levine, managing director at Portfolio Management Corp, did BNN's Market Call yesterday Friday (along with the dulcet tones of Andrew Bell). Here's the link to the video and here's what he had to say when asked about Cannabis Wheaton (CBW.v) (at minute 41 onwards when talking about the cannabis growers sector in Canada):
"...to me this Cannabis Wheaton is just the culmination of everything wrong in the industry. That stock shouldn't even exist."


Any further questions?

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

...in reverse order:

Third Place: "The basic numbers at Cannabis Wheaton (CBW.v)". This is the type of thing equities anal ysts don't need any prompting about, they get this at a near-osmosis level. But this type of scam is being vomited at greenhorns, people that get the world beating idea pumped at them while the real motives are hidden from view. Therefore a necessary post on this disgusting Canadian rip-off.

Second Place: "The Flash update sent last night to subscribers regarding the Cordoba Minerals (CDB.v) news yesterday". An example of what happens when your humble scribe is less of a loudmouth.
 
First Place: "Another, more succinct and visual way of explaining the Cordoba Minerals (CDB.v) deal...". Amusing that this one got more views than the post in second place. Just goes to show that the blog audience isn't the same as the Weekly audience (and let's leave it at that).

6/16/17

The Friday OT: Compay Segundo; Chan Chan

How to open Cuba.



Youtube here.

Dalradian (DNA.to) has been swimming against the tide recently

It's also cancelled appearances at shows in the last few weeks.



I don't own and don't plan to soon either, but its strength certainly catches the eye.

Ugly day for miners...

...out there, I'll be glad when all this GDXJ crazy is done with and we can get back to something approaching normal. Not that I'm saying 'normal' is particularly sane in this wild sector, but you know what I mean.

Chart of the day is...

...the ten year US TIPS yield:



All you need to know about the price of gold, right there. It's been like clockwork all year.

IKN doffs its cap to Brian Quast of BMO...

...for the best title of a research note this year. Quast published on the new B2Gold (BTO.to) (BTG) resource zone near its Fekola project in Mali. It's called Anaconda and includes individual structures known Anaconda, Adder, Cobra, Cascabel, Mamba and Boomslang.

Quast called his note "Snakes on a Plain". Well played, sir.


6/15/17

Angry Geologist updates on Tinka (TK.v)...

...tonight, right here.

For what it's worth, I think his resource guess of 2.15Bn lbs Zn at 5.3% is reasonable for what we know right now, but the chances are now high that South is connected to Central and if that works out, there's a lot more to add to the pie. Then there's Zone 3...(etc).




A Flash update...

...has just been sent to subscribers, Thursday 11:40am or so. Another trade, we live in strange days.

Marin Katusa and the short sellers

If I were Marin Katusa, I'd be crapping myself about the future. It's one thing to pump bullshit companies to idiots on a small scale, but when you try to scale up and pump larger-scale pieces of crap to the world, especially ones that trade on the NYSE...



...you suddenly come under the scrutiny of bigger fish that swim in bigger pools. So far this year we've seen two Katusa pump jobs, Northern Dynasty and Asanko, get headline-making short sale attacks and due to the way Katusa pumps several other companies of their ilk, I'd bet a dollar to a donut that the shorties are poring over the other companies he stuffs down the throat of his hapless clients in exchange for their money. 

They're stealing your lunch and reverting you to the mean, Marin. The game isn't up yet, but the signals are there.

Peru FinMin Thorne to resign, his Vice Minister Claudia Cooper to take over

She's one of PPK's faves.

6/14/17

Deciding on whether Eldorado (EGO) overpaid for Integra

Yes, they did.


Another, more succinct and visual way of explaining the Cordoba Minerals (CDB.v) deal...

...with HPX as announced last night.



I'm ready for you, Mr Friedland.

The Flash update sent last night to subscribers regarding the Cordoba Minerals (CDB.v) news yesterday

It was on Cordoba Minerals (CDB.v), it went out at 8pm local time, it got nothing but positive feedback from subbers, it said this (typos repaired, rest is-as). As this is published, the conference call has already happened, CDB is still under halt and the bid/ask is stacking at 75c, but I still see no reason to take any price under the upcoming 81c placement and won't be desperate to sell at 75c today.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx


People on the Tinka Resources (TK.v) site visit that's happening right now

The analyst from Industrial Alliance Securities.
The analyst from Boswell Capital.
A couple of guys from Red Cloud.

That last line is a double-edged sword if ever there were one, but this week's roster shows the big hitters aren't just sniffing around TK, they're actively interested.

The Cannabis Wheaton (CBW.v) chart

Now I'm not a big proponent of charting, but...




...that really doesn't look so good. But hey, it can turn around, right?

Chart of the day is...

...the palladium/platinum ratio over the last five years:



Remarkable. Can Wollaston's discovery make parity with the metal that is occasionally more expensive than gold? This can't be just about catalytic converters can it? This is a spec thing too, surely...

6/13/17

A Flash update...

...has just been sent to subscribers, 8pm Tuesday evening. A trade.

The basic numbers at Cannabis Wheaton (CBW.v)

I've had a few inquiries as to why I'm so sure Cannabis Wheaton (CBW.v) is a scam. Well folks, apart from the fact that it is and drips with all the self-serving, underhanded, insider, undisclosed, retail rape moves you can possibly imagine, even if we assume the people who set it up really want to build something of worth and long-lasting value, its numbers simply do not add up. And to understand that, you need to take a trip to the wonderful world of balance sheets. So consider this a CBW balance 101 primer, it's simplified for sure but it's based on solid math (rather than unicorn sprinkly stardust that Rifici is palming off as a wonder opportunity). We start with basics:

Right now, CBW has 146.7m shares outstanding. It also has 133.1m warrants which are all enormously in the money. There are also other things playing against people stupid enough to buy in at $1 in the current placement, such as the right to emit up to 20% of share count as incentive options for insiders and management (normally, even the self-serving and greedy Canadian junior miner companies limit themselves to 10%), but we'll try hard to ignore that corner of the scam and keep things simple.

Now for the current placement effort, being brokered by Mackie, that's a sale of 50m units (unit = 1 share + a full warrant with a $1.50 strike) at $1 per unit. Assuming the current placement closes without the overallotment facility, that means they sell another 50m shares, 50m warrants and adds $50m to treasury. Then the share count goes to 196.7m S/O and 183.1m warrants respectively.

Today, the current share price $1.02, which means this company is being valued at $200.6m market cap. But as those original 133.1m warrants are so far in the money now, we are obliged to assume they'll be exercised and turned into fully paid-up shares. So the real world market cap as stands today is $336.4m. That's the math, that's the way it is, so what do you get for your money?

  • 14 deals that CBW put together for less them $1m in cash total (in other words, very minor deals)
  • Around $1.5m in cash before the current placement.
  • $50m in cash assuming the current placement closes.
  • A proposed deal to spend $30m of that money on a streaming deal (with people that you can hardly call arms-length, either).
  • Errr...that's it.

And so let's play balance sheet and put that in simplified balance sheet terms:
  • Current Assets: $51.5m
  • Fixed Assets: $5m (the $1m in deals and then i assume they have an office, some computers, coffee machine etc)
  • Goodwill: ??????
  • Current liabilities: $0.2m (normal run of company number)
  • Long-term liabilities: $0 (Best to assume the best case, looks likely too
  • Equity: $56.3m
  • Equity per share out: $0.286
  • Equity per "real world" share out: $0.171
You'll notice I put the line item "goodwill" in, and gave it a row of underpants gnomes type question marks. That's because in order to square this circle, the goodwill or "intangibles" in this company would have to come to around $280m in order to justify its current share price even if they manage to add the upcoming $50m into treasury (because without that, there's straight plain peanuts in CBW).

Now I'm not saying goodwill is at zero, but what it amounts to here is the business model, the "bright idea" and the different, new, market-changing plan CBW has come up with. The story, in other words. So even if you are a fan of this idea, I ask you to consider whether coming up with a company structure that gives cash to small companies (all but three of them without any sort of permit to enter the cannabis market yet) in return for a share of their future cash flow if/when they get into operation some years down the line is worth $280m? And even if we assume CBW meets with some early success, its first-foot advantage is going to be fleeting as its hardly a model that can't be quickly replicated by other start-ups (no moat, as Warren Buffett would say).

Feel free to pick a number on that goodwill value; $20m, $50m perhaps? Want to be ultra generous and believe this is the next Uber? Okay, $100m as stands today but please don't tell me it's $280m. However, that 280m number is exactly what the sales desks at Mackie has been telling the poor saps they're trying to get into this deal. It's madness. Utter madness.

Even if this scam works and the people behind have the best interests of retail shareholders at heart (which they most certainly do not), it's wildly overvalued. My best guess right now? It's worth 15c to 30c, tops. A true believer could self-justify a case for 50c if they're stupid enough not to understand the true intentions of the sharks behind CBW. But personally, I think it's worth zero cents. A Loonie? Gimme a freakin' break!

The Sandstorm (SAND) (SSL.to) rally continues

Sandstorm ignoring the weakness in the gold price this morning and pushing higher again. Oversold on the GDXJ rebalance fiasco, SAND is starting to return to a more reasonable level. First stop U$4-handle, but there's plenty left in the tank on its fundies. This chart compares SAND to the gold and silver index (XAU) to underscore the recent alpha-


Credit to those who ignored that blithering idiot Doody, anyone who's visited Hot Maden knows Watson has got the bargain of a lifetime.

It's Federal Mining Agreement day in Argentina

This piece is from IKN421 last Sunday and is the latest in our coverage of the ongoing clownshow going on in the mining sector in Argentina. Today we get the signing ceremony of the Federal Mining Agreement in Argentina, the piece explains why it's a worthless piece of theatre.

Argentina: The Federal Mining Agreement to be signed this week
Last week we noted that Governor Urtubey of Salta said he would not sign the Federal Mining Agreement (FMA) and join the other main dissenter, Mario das Neves of Chubut. This week saw an emergency meeting between several provincial governors, led by the pro-mining Sergio Uñac of San Juan province, which changed the wording on a couple of the items and got Urtubey on board. With this, the government has decided to press ahead with the FMA without Chubut and will hold a fancy-dancy signing ceremony this Tuesday June 13th in Buenos Aires (10), with the main points of the agreement being that the nation will not impose a planned 1% royalty, that the provinces would limit regional royalties to 3% maximum, and provinces could impose a second tax to fund mining infrastructure of not more than 1.5%. In return the Macri government gets the “level playing field” with all provinces reading from the same rulebook, which will allow Argentina as a nation to attract more FDI, so they say. One the FMA is signed, it then goes to the national Congress in order to be made into law.

However, we once again stress that the fact Chubut has not signed on makes the initiative stillborn. For one thing, Argentina cannot claim “same playing field” when Chubut will not recognize the new law. For another and more practical reason, Chubut is the location of over $1Bn of the total $1.7Bn in projects now on the Argentina pipeline to production.

Expect a lot of trumpets and fanfares next week when the FMA is signed and when you hear them, remember this FMA is a DOA paper tiger of an agreement, it’s practically worthless and changes nothing of substance. Even outside of Chubut and in signee provinces such as Mendoza, Rio Negro and Salta with leery attitudes towards the industry, the anti-mining sectors will be able to block projects using the provinces’ constitutions and laws and the national government will not be able to push through a thing against the will of the regional governor. In short, the archetype Style-Over-Substance country gets the mining agreement it deserves.


The latest Odebrecht shoe to drop: Ex-President Martinelli of Panama arrested

To the surprise of absolutely nobody, the highly corrupt ex-President of Panama Ricardo Martinelli was tonight arrested by authorities in Miami USA for the ostensible reason of illegal wire tapping of political enemies, but most in Panama know it to be mainly in connection with receiving bribes from Odebrecht. He's up before the beak tomorrow. There will be more. Lots more.

Zinc One (Z.v): The latest Keith Neumeyer/Daniel Ameduri BS pump is...

...withering on the vine. Good.


Keith Neumeyer paid Daniel Ameduri $250,000 to pump this sack of crud to the end of May and he tried hard, sending out several hyped up lumps of verbal diarrhea, but it would seem that even the fools on Ameduri's mailing list seem to have got tired of their BS. Here's how Ameduri kicked off his original pump letter on May 17th:
 Dear Reader,

We are so certain that this extremely undervalued company is a strong buy here, we are staking our entire careers on this single stock pick.
 
I, Daniel Ameduri, fully expect this company to lead the rally for zinc stocks, to the point that if my recommendation to you here today at CAD$0.65 doesn’t at least double over the next year, I will officially close down my letter.
 
In fact, I see this stock as a coiled spring, and I believe that I may be proven right over the next 30 days, with 11 months to spare!

Are we nearly at $1.30 yet, Daniel?

There are so many things wrong with this D.O.A. dog that I don't know where to start, but the mai problem is flashy headline grades or not, that the Bongará zinc oxide project they're trying to fob off truly is a piece of crap, picked over and rejected by a whole bunch of serious companies before Neumeyer decided he could sucker a new bunch of idiots with it. The key is in the word "oxide", by the way.

6/12/17

Alfredo Thorne to be fired as Peru's FinMin this week...

...for being a lying tosser and being found out. Both you and his best pal Jaime Pinto heard it here first.


Cannabis Wheaton (CBW.v) and the amended placement: The real dope

Your humble scribe had a few minutes full of yoks and guffaws this morning, thanks to this hilarious FP interview and report on Cannabis Wheaton's (CBW.v) BSser in chief Chuck Rifici. There are so many chunks of wonderful contained it's difficult to know where to start. Maybe by noting that Rifici loves to use lawyers to shut truth tellers up and that IKN hasn't received so much as a whiff of a paper yet, because everything IKN has written about this joke scam of a company has so far come to pass. Anyway, check out the link yourself and have fun, but the first lines of the piece are the subject of interest in this post today:
"Cannabis Wheaton Income Corp.’s chief executive and marijuana industry pioneer Chuck Rifici admits the intricacies of large private placement deals are not his forte."
As my good friend Owly would say...

...so let's help out Chuckyboy with the design of the latest $50m placement, put together in a big hurry (by Chuck himself!!!!) when the previous $80m conflicted scam fell apart. It's not an easy deal to decipher at first just by reading the NR, which is almost certainly deliberate. These people tried to sucker in greenhorns the last time and they're aiming for the same dumbasses this time, but when you get a handle on what's going on, it works like this:

1) Mackie Research Capital commits to selling $25m of units (one share and a full warrant at $1.50) at $1 apiece.
2) If they sell all $25m worth, a separate insto will commit to an extra $25m of units.
3) But if Mackie fails to fill the book, the insto walks away.
4) But if Mackie fills the book, the insto in question gets a lend on 20m shares which it can short and hedge its exposure, thereby reducing its risk to zero.

Bottom line: Mackie cannot lose on this deal, it just runs the book and pockets the commish. The insto willing to put up the other $25m cannot lose on this deal, it hedges the risk, clips the warrant, picks up the 6% interest. The risk is fully and squarely on the shoulders of the dumbos that Mackie's sales desks are ringing right now in order to fill that book. And that's you sucker, when you agree to exchange your money for their paper (and lock it up for four months, begad!) you're buying into a massive shell game with a big heap of nothing in the middle of it. They put this company together for $1m, they raised $2.5m in sweetheart share deals, they buy $1.5m worth of worthless streaming deals, they tell you the company is now worth $200m or so. Retail, the crop that never fails.


Brexit is falling apart

I've had too much fun watching the clownfest UK election and its fall-out over the last few days, but we're now getting to the real stuff. This column today in the UK's most Tory newspaper of them all is written by the person who heads up Theresa May's government policy committee, so every word counts. And here's the pay dirt:
"As the Parliamentary Conservative Party convenes this week we need to show fast that we have listened to the British public, that Parliamentary democracy is alive and well, and that we trust the people and their elected representatives.
That is, after all, what Brexit was supposed to be about. So let’s commit to an ‘Open Brexit’ based on much greater Parliamentary scrutiny, debate, and democratic mandate ..."

The key here: The phrase "Hard Brexit" has gone, we're now on "Open Brexit". For those of you new to the show, that means the British posturing about telling the EU "if we don't get a good deal we'll just leave anyway and screw everyone" has changed to "if we don't get a good deal we have no choice but to stay in until we do". And that means the EU has just been handed a tremendous negotiating advantage by a woefully poor Prime Minister and her government. So here's some advice for any world citizens thinking of taking advantage of that cheap British Pound Sterling forex and checking out some castles this summer; book and pay for your hotels right now, because when the world starts seeing the light the GBPwill return from whence it came.


6/11/17

The IKN Weekly, out now



Reader WW will never forgive me otherwise


IKN421 has just been sent to subscribers. There are many photographs.

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

...in reverse order during a quiet week for the blog (travels and all that):

Third Place: "People seem to think IRL is going to lose Ollachea", but there ain't no way José. On the other hand, heads are about to roll in the public sector there.

Second Place: "This is how Cannabis Wheaton (CBW.v) lies to you". Expect more CBW next week.
 
First Place: "Cannabis Wheaton (CBW.v): From Stockhouse with love". A glimpse of the fetid and nauseous underbelly of Canadian capital markets, warts and all. And It's always funny until someone gets hurt. Then...

6/10/17

Two weekend reads

This in The New Yorker, "The Strange Secret History of Operation Goldfinger". An extract:
Thus began a strange, untold episode in modern American history. In the mid-to-late nineteen-sixties, as gold’s role in the international monetary system was about to implode, a handful of top Johnson Administration officials, a few sympathetic members of Congress, and hundreds of government-paid scientists set off on a nuclear-age alchemical quest. Barr gave it the code name Operation Goldfinger. The government would end up looking for gold in the oddest places: seawater, meteorites, plants, even deer antlers. In an era during which people wanted badly to believe in the peaceful use of subatomic energy, plans were drawn up to use nuclear explosives to extract gold from deep inside the Earth, and even to use particle accelerators to try to change base metals into gold.
Read the whole thing here.


Then via reader RB, a good overview in Bloomie on the Odebrecht scandal current rocking Latin America to its political core (with lots more to come). An extract:
Often these people were politicians—the company had been bankrolling campaigns in Brazil, including presidential campaigns, going back to when bribery was strictly a cash business. Since the establishment of Structured Operations, Odebrecht had funded plots to elect a half-dozen presidents in Latin America; buy the friendship of heads of state in Angola, Peru, and Venezuela; and pay off hundreds of legislators from Panama to Argentina.

6/9/17

Johnathan Pie on the UK General Election result

A fine rant worth three minutes of your time, though NSFW.



Thanks for the heads-up, reader B. Youtube here.

The Friday OT: Vicente Fernández; El Rey

More Mexican, impossible.





Cry and cry and cry and cry. Roll and roll and roll and roll.

 Youtube here.

Photo of the day

No further comment necessary.


Thank you reader PK.

Catching up with Rye Patch Gold (RPM.v)

Since writing this post on April 28th that explained in its....hmmm...potentially overly short and snippy manner... to a couple of damnfools bugging my mailbox that Rye Patch Gold (RPM.v) had "...definitely has run out of cash and it definitely will finance again very soon", the company has sold forward what was left of its Rochester royalty for $5m (instead of letting it run and making more) and is now raising $10m (plus overallotment?) in the bought deal announced this week which is set toput the share count up to a squillion or so.

Further questions?

Thoughts on Red Eagle (R.to)

For the record, I'm long Red Eagle (R.to) and I'm staying that way without any worries but that can't be said for many other market participants. It's one of the most interesting "whisper companies" out there at the moment, simply for the quantity of rumours and intel that swirl around it. There are many reasons for all this talk but it all boils down to one thing; somebody is trying to turn a profit on the noise. There have been so many cases of this desk receiving, "I've heard that..." mails and phone calls re. R.to that I've lost count, with subjects including landslides, ground conditions, lack of ore, executive delinquencies all covered and the best ones, though almost always bullshit, all contain a grain of truth around which the story is spun. The latest is that because San Ramón has no ore R.to is trying to buy feed from third parties. Again, in part that's true because until the next stope is opened (due online July) the plant has excess capacity and it makes sense for the company to earn a bit of cash flow in the meatime by buying in, but this small and ultimately inconsequential fact has been magnified into yet another "we all gonna die" story. Thing is, unlike other attempts at jawboning a stock up or down, the rumourmill really has worked its magic on R.to and you can see that in the way the stock trades. Weak hands abound. Like I say, I'm long and staying that way, IKN's kung fu is stronger than most kung fu. R.to is going to be just fine. Remember this post in late 2017, yeah?

 


A Flash update...

...has just been sent to subscribers, on this grey and overcast Friday morning. A small transaction.

Well hung...

...parliament. The pound:


6/7/17

People seem to think IRL is going to lose Ollachea. People are crazy, there's no way. All you need to do is read the terms of contract. This today:

Minera IRL Seeks Arbitration Regarding Bridge Financing
 
 LIMA, PERU - (Marketwired - June 06, 2017) - Minera IRL Limited ("Minera IRL" or the "Company") wishes to advise that it has obtained an order from the Superior Court of Justice of Lima as a precautionary measure to preserve the value of the Company's assets and investment in favour of its shareholders, communities and employees. The order temporarily suspends any enforcement proceedings against the Company due to the expiry of the repayment period for the US$70 million Bridge Loan granted by the Corporación Financiera de Desarrollo ("COFIDE"). In order to keep the court order in place, the Company must request arbitration with COFIDE within 10 days.
 
The Company has requested a meeting with the members of COFIDE Board, to reach an agreement regarding the extension of the Bridge Loan payment term, within which the Company expects to finalize a new financial structuring plan with banks and/or investment funds. The Bridge Loan was part of the Exclusive Structuring Mandate of a senior debt facility for up to US$240 million maximum, which was unilaterally revoked by COFIDE with an announcement made in early March 2017 that became effective on April 01, 2017.
 
"Within 60 days after COFIDE's announcement of its decision not to continue with the loan structuring, the company has identified new financing options and is in active dialogue with a number of parties interested in considering an investment. We also maintain the local community's support for construction of a mine. We are confident we will resolve this matter and unlock the value of our flagship Ollachea Gold Project." stated Gerardo Perez, Chairman of Minera