start here

start here

The Daily IKN email digest, get all daily posts sent to you next day (& no ads)

8/25/16

Wesdome (WDO.to) at Kiena

Hello, hope you're having a pleasant day. At this end of the pipe I've been having all the fun, immersing myself in Wesdome (WDO.to) Kiena mine data and things on the back of yesterday's impressive news release from the company. A total wonkfest datacrunch that's kept me away from doing several other things today, including snarky posts on the blog.

But it's all worth it because these numbery things aren't just for fun, they're for profit too. By the look of the way the stock's reacted to the news today...



...that nice Mister Market guy thinks the news has added about U$33m to the value of WDO. And that's the most interesting bit y'see, because I'm pretty sure Mr. Market is wrong. I think it's worth a lot more than that.

All will be explained in IKN381, out Sunday.

UPDATE post-close: Probably just a coincidence.



Goldcorp (GG) share price unaffected by the Reuters exclusive

Whatever else you might make from the Reuters exclusive about Goldcorp's (GG) selenium leakage problem at its Peñasquito mine in Mexico, one thing's for sure; it hasn't affected the share price at all:


Yes GG dropped hard yesterday but so did all the sector. As you can see there, GG is lockstep with the XAU index the last five days.

Chart of the day is...

...copper, weeklies, with one line drawn on it:




Copper moves up from here and it'll bring in plenty of spec trades in the producers.

8/24/16

Wesdome (WDO.to) and gold porn

I think we can safely say "good hole". From here.




One year ago today...

...on August 24th 2015 the Board of Directors of Minera IRL, led by its then Executive Chairman Daryl Hodges, decided to fire Diego Benavides from the company. 

Today, one year on from that event, Diego Benavides is still the President of Minera IRL SA. The board of directors has been completely replaced. And Daryl Hodges is a marijuana salesman in Toronto. 


More on the SRK Toronto office

Following on from the IKN post yesterday. IKN claims no credit for the following, it's information from mail sent out by Clarus Securities this morning August 24th (this desk merely gets wind of such things from nebulous corners of the universe). Clarus did the legwork and deserve the kudos, but what they found is more than enough to share to a wider audience and will certainly be of interest to anyone with a position in Dalradian Resources (DNA.to). In the words of Clarus...


Resource estimate for DNA, RMX and ORE done by SRK consulting Toronto.
Oy Leuangthong did the geostatistics for both DNA and ORE  
Glen Cole did resource geology for RMX and ORE

And here's a screenshot of the main body of the mail:




Probably just coincidence, innit guv.

Checking in on the K2 Associates Asanko Gold (AKG) short

What with the sudden weak market for precious metals names this week, the random and often disjointed thoughts of your humble scribe turned to the well-publicized short position in Asanko Gold (AKG) (AKG.to) taken out by the jolly chaps at K2 Associates and revealed to the market in late June. Let's see how that's been getting on since then by comparing the AKG squiggly line to that of the Gold & Silver Index (XAU):



Answer: Moot. Nothing to report. No biggie. Undecided. Though we should note that K2 certainly built at least part and perhaps all its short position before the June 28th date when it published its hitpiece report, so they'd probably be able to claim a small win on the trade to date. 

IKN was, is and will remain neutral on this whole affair. But it's a fun one, so an eye will be kept on proceedings.

Producer mining stocks are at buyable prices...

...for the first time in a while.

By which this humble corner of cyberspace refers to the mining sector, rather than any single company. It's becoming easier to buy the sector, or buy the usual suspect stocks, or buy the ETFs and that's a good thing, life becomes easier and there's more time for the important things in life such as ice-cream or books or quality music or stamp collecting or bricklaying because there's no need to spend hours poring over dozens of operating miner stocks trying to find the undervalued one, the name the hot money missed as it melted into the sector and took valuations from reasonable, straight through overbought and directly to the "Are they serious?" sillynumbers that assumed gold would be at U$1,500/oz by Thursday tea-time and that Keith Neumeyer's theory on the Gold/Silver Ratio holds more water than Anne Elk's on the Brontosaurus (clears throat).

I'm sure the newswires will hang the correction on Jackson and his hole. The real blame is with dumbasses believing the breathless marketing hype and paying too much money for things. The capital market is now handing over the usual timely lesson.

PS: Of course it goes without saying that none of the above applies to the stocks I currently own, which to a name are still wildly undervalued and today being unjustly dumped by crazy idiots without an ounce of market nous or common sense. Thank you for your attention, please return to your August.

8/23/16

IMPACT Silver (IPT.v) is drilling again! Hoorah!

The IMPACT Silver (IPT.v) 2q16 results NR was published just a few minutes ago and aside from the expected mediocrity of its financials (another net loss and NO! YOU! CANNOT! IGNORE! DD&A!) the beady and sneaky little eyes of IKN were drawn to this line further down the page:
"With the proceeds from the Q2 2016 financing, the Company will begin surface and underground drilling programs in the fourth quarter."
Well that IS good news for the company, is it not? After all that time not drilling IPT is going to drill again and of course the tendering process for the drilling is going to be absolutely open and transparent with all drilling companies operating Mexico welcome to bid and the most competitive offer chosen from the stack. Why anyone should think that Energold (EGD.v) is going to get another automatic uncontested juicy contract from IPT is beyond my ken. Right, Mr. Frederick W. Davidson President & CEO of IPT.v?

Or if you like here's how we put it in IKN377, dated July 31st 2016:


Between 2011 and 2016, IPT returned a mine operating profit of $14.687m. But then $9.023m of that has gone to EGD, the major cause behind the mine operating profit turning into an overall operating loss over the period (not to mention the net loss). Put another way, in the two “good years” of 2011 and 2012, IPT returned Mine Operating Profits of nearly $17m ($12.9m in 2011, just over $4m in 2012). It was after the big positive results in 2011 that the big money was spent by IPT with Energold, those $8.3m in drilling bills. It’s fair to say that EGD has benefitted far more from operations at IPT’s mines than its shareholders. But that may just be a coincidence, of course.

PS: Frederick W. Davidson is also President & CEO of EGD.v
PPS: IPT.v rents office space from EGD.v

Today's post-close commentary on today's stock market action is brought to you by...

...The Kinks:



It's August.

Orezone (ORE.v) more zone

It's getting to the point where these things become so freakin' obvious and the bullshit so blatant that the elephants in the room go un-noted even by this humble corner of cyberspace, I'm skipping over outlandish consequences of the pisspoor quality of work done in the mining sector and taking them as read when they really should at least be documented somewhere. So after a few mails yesterday and today, plus the realization that few places other than IKN are crass and basic enough to do the job, here's a short follow-up post on the Orezone (ORE.v) resource revision yesterday that makes the two points that need to be made, concisely and clearly.

1) HEY, ANOTHER SRK TORONTO MESS! We out here are losing count of the number of poor resources signed off by this office. The potential for a company-killing malpractice suit is now looming large.

2) HEY, NICELY TIMED FINANCING! Hey, have lead brokers RayJames and NatBank come out with the same type of damning report we saw from BMO (dropped to 75c tgt, dropped to mkt perform)? No? Whyever not?


And that's enough.

Warren Dick: "Can the gold industry avoid the sins of the past?"

This piece by Mineweb editor Warren Dick is absolutely spot-on correct, as is the main player in the report, Nick Holland of Gold Fields (GFI). Here's an excerpt:

“How is it possible that companies can drop their stay-in-business capital so much when their operating costs have stayed reasonably constant?” asks Holland. “I believe that they have merely deferred capital that is going to come back, because if you want to sustain the business into the future, you need to spend that money. That for me is a little bit of a concern.”