Ten bands in one!

12/31/10
The Friday OT: Red Hot Chili Peppers; Dani California
Bolivia is the subject of IKN's first prediction for 2011
"You won't be hearing much about Bolivia's fuel hikes and protests one week from now. It's already blowing over, the "massive calls for Evo's resignation" as seen on CNN, Fox and other dumbass sources of information on all things LatAm amounted to about 20,000 people (and 20,000 does not a resignation make), the transport strike has already been called off, there are no runs on banks as the rabid right tried to suggest, Evo will take a temporary hit in the polls but will get through this just fine. So sorry Stratfor, sorry Economist..no blood on the streets this time."
You get what you pay for in Colombia (and vice versa)
Today's LatAm weirdnews translation, from this report:
In the city of Pereira, a man was condemned to pay his domestic employee for sexual services she had given him that had not been remunerated.
Judge Eisenhower Zapata, speaking on Caracol Radio, explained that the patron paid his employee her salary for housework and had also agreed a payment of 20,000 pesos (U$10) for each sexual favour.
The domestic employee "made note in a notebook how many times she had slept with him for four years until the relationship soured and she demanded the payments be liquidated."
The judge added that the domestic employee "had proven that she had slept all those times with the gentleman and that he didn't want to pay her."
The man was ordered to pay on consideration that "prostitution is age-old and is as respectable a profession as any other."
12/30/10
Chilean salmon: What could possibly go wrong?
Esp for setty
So what's your favourite part of the latest Mercer Gold (MRGP.ob) quarterly report, Otto?
Ooooh, probably this bit, all things considered:
Based on our current plan of operations as set forth above, we estimate that we will require approximately $1,000,000 to pursue our plan of operations over the next twelve months if we complete Phase I only, but approximately $2,000,000 over the next twelve months if we also proceed to Phase II during that time frame. As at November 30, 2010, we had cash and cash equivalents of $87,597 and a working capital deficiency of $186,987. However, we may require additional financing to pursue our plan of operations over the next twelve months. There can be no assurance that we will obtain any additional financing in the amounts required or on terms favorable to us. If we are unable to obtain additional financing, we may have to re-evaluate or abandon our business activities and revise our plan of operations.We anticipate that additional funding will be in the form of equity financing from the sale of our common stock. However, we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common stock to fund our plan of operations going forward. In the absence of such financing, our business plan will fail. Even if we are successful in obtaining equity financing, there is no assurance that we will obtain the funding necessary to pursue our business plan. If we do not continue to obtain additional financing going forward, we will be forced to re-evaluate or abandon our plan of operations.
A Flash update...
Coro Mining (COP.to) and Owly
First, Coro Mining's (COP.to) news release:
Now, our friend the owl gives us worthy analysis on the situation:Press Release Source: Coro Mining Corp. On Thursday December 30, 2010, 9:10 amVANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 30, 2010) - Coro Mining Corp. ("Coro" or the "Company") (TSX:COP - News) is pleased to announce that the Interdisciplinary Commission for the Environmental Evaluation of Mining Projects ("CEIAM" in Spanish) of the Province of Mendoza has completed its compilation, collation and evaluation of the previously completed sectoral reviews; the outcome of the public hearing and public consultation process; and the results of additional hydrological studies completed earlier this year, and has recommended that the EIS be approved by the provincial government. The CEIAM is comprised of the various entities which completed individual sectoral reviews of the project in 2009 and 2010, together with representatives of the pertinent Provincial Government ministries.The recommendation of approval is conditional upon the Company's Argentinean subsidiary, Minera San Jorge ("MSJ"), complying with the highest standards of environmental protection, control and monitoring prior to, and during the construction and operation of the project, including the requirement for the paste tailings deposit to be made impermeable with a liner. The CEIAM's report will now be submitted to continues here
What Evo Said
Chart of the day is....
...road traffic deaths in Latin America.
12/29/10
Peru's luck-based economic growth, part 562
Here are the monthly production numbers for gold in Peru, 2009 to date (November's numbers out today):
*yes, that's irony
OT: Lost (and found) in translation
My friend in China theorizes: "I guess all the public sign translations in this country are done by lazy bureaucrats, with the help of Google Translate." It will be sad when these finally go away.
China's Rare Earth Quotas:
2009 quota limit | 50,145mt |
2009 quota used | 26,770mt |
2009 excess | 23,375mt |
Chart of the day is....
....the gold/oil ratio.
12/28/10
Good news: The horse is feeling fine
Heatwave!
Go Palito!
Goldfails, 2010
1) They're small gold producers working in Latin America2) They have a dubious track record of promising more than they can deliver3) Their share prices have all performed much worse this year then their main product, gold.4) They all quote on the US exchanges5) They've all, in their time, been pumped to death by brokerages and analysts who care more about the commissions and cheap shares thrown their company's ways than decent, unbiased analysis
Wikileaks Panama: Superb coverage from Bananama Republic on the Martinelli leaks
The first post is on how the country's Veep called the the current Panama Canal expansion "a disaster", which is interestng enough but nothing destabilizing. However it was a mere hors d'oeuvre for what followed in....
...the second Banamana Republic Wikileaks post, an absolute gem. Here we get a great rundown an analysis of the big scandal currently hurting President Martinelli and his government, how he tried to strongarm the US into giving him illegal phonetaps on his political enemies, plenty more rogue behaviour detailed and a character assessment of the Prez dude from the US ambassador that will remain for the ages; "His penchant for bullying and blackmail may have led him to supermarket stardom but is hardly statesmanlike. He risks losing the good will of his backers in the Panamanian elite and business communities. Martinelli is not a member of Panama’s traditional elite, and he could be on thin ice if his “anti-corruption” measures end up being seen primarily as shake-downs for fast cash."
Then yesterday we had the third installment of Bananama Republic's Wiki-coverage, with the fallout from the wiretap revelations and more on the DEA in Panama.
Go read them all now, especially that second one. Top stuff and we very heart Bananama Republic.
12/27/10
What is a mining engineer?
Sent in by reader 'J', somebody who knows what he's talking about on this subject:
I like this quote from the Chairman of Scottish Branch of the Institution of Structural Engineers (1946) “Engineering is the art of modelling materials we do not wholly understand, into shapes we cannot precisely analyze, so as to withstand forces we cannot properly assess, in such a way that the public at large has no reason to suspect the extent of our ignorance.”
Dead journalists in Latin America, 2010
Bolivia raises fuel prices and there's trouble in store
LA PAZ, Bolivia, Dec 26 (Reuters) - Bolivia's leftist government raised fuel prices on Sunday by as much as 83 percent to foster oil production and cut state subsidies, in a politically tricky move that set off a transportation strike.To offset the measure's impact, the government also froze public utility rates and said it will promote wage increases that top the 6 percent inflation estimated for this year.In 2006 Bolivia's socialist leader Evo Morales nationalized the energy industry, which is centered on natural gas exports."We are bringing fuels up to international price levels ... State subsidies cost $380 million a year. We don't want this to continue. We buy expensive diesel fuel and sell it cheap," said Vice President Alvaro Garcia, who is standing in for Morales during the president's visit to Venezuela."We had to raise prices so energy producers feel the need and incentive to produce (oil), so there will be more diesel and gasoline and we will import less ... in one, two or three years, we won't have to import any gasoline or diesel at all," Garcia said.Diesel prices will rise CONTINUES HERE
UPDATE: An example of US analytical mediocrity: Of all the quotes on this issue that "academic" Greg Weeks could have chosen, he goes for the one that makes himself look like a total dumbass. A better example of total non-comprehension of South America would be difficult to come by.
Chart of the day is....
...the 2010 performances of silver (using SLV, the silver bullion ETF, as proxy) and gold (using GLD, the gold bullion ETF, as proxy).
12/26/10
12/24/10
Wikileaks quote fun quiz thingy
"The poor ambassadors they send here have a very limited capacity and this is why afterwards they end up bombing a country (and) looking for weapons of mass destruction that don't exist."
"They told me there was an atomic bomb in Iraq, (but) it was all rumours. This has cost Mr Tony Blair, who believed the rumours, very dearly."
a) Hugo ChávezThe answer is here, so guess first and click second.
b) Alan García
c) Rafael Correa
d) Lula da Silva
e) Evo Morales
f) Cristina Fernandez
The Friday OT: Robert Earl Keene; Merry Christmas from the Family
The best Christmas song ever.
Carve the turkey, turn the ball game on.
A media agenda for Venezuela? Surely Not!
Bogota – Brazil and the International Committee of the Red Cross agreed to provide logistical support for the planned release of five Colombian public ...Fox News View related stories »
- Brazil Stocks End Higher As Banks Rise In Thin Pre-Christmas Trade -
Wall Street Journal - Brazil: Lula's Legacy - part one -
BBC News - Brazil Said to View Credit Curbs as Equivalent to 50-100 Point Rate Rise -
Bloomberg - Brazil launches peacekeeping force in the favelas -
MiamiHerald.com - Maersk Oil to acquire Brazil's SK do Brasil Ltda for $2.4 billion -
Invest in Brazil - Brazil American Legion post closes after 70 years -
Chicago Tribune
BY KIMBER SOLANA • ksolana@thecalifornian.com • December 24, 2010 About a dozen Salinas High School students will welcome the New Year in Peru by working ...The Salinas Californian
- Market Vectors Planning Andean ETF -
ETF Database - Children's skeletons with throats slit, chests opened found in Peru -
Sify - U.S. Senate Extends Andean Trade Benefits -
Wall Street Journal - Peru's President Signs Law Creating Mortgage Bond Market -
NASDAQ - Peru's Main Stock Indexes End Up; Sol Slightly Stronger -
Wall Street Journal - Peru's Main Stock Indexes End Mixed; Sol Slightly Stronger -
Wall Street Journal
Bogota – Brazil and the International Committee of the Red Cross agreed to provide logistical support for the planned release of five Colombian public ...Fox News View related stories »
- 20 Missing in Colombia mudslide -
Fox News - Vergara Appeals For Colombia Aid -
Contactmusic.com - South Colombia landslide kills 13, injures 29 -
Colombia Reports - Colombia's Economy Grows Below Expectations -
Wall Street Journal - Ventana Gold urges Batista bid be rejected -
The Province - Colombian Stocks: Fabricato, Coltejer, Acerias, Tablemac -
Bloomberg
...and the same kind of thing, even Paraguay...
By PEDRO SERVIN AP ASUNCION, Paraguay -- The Paraguayan government worked closely with the DEA earlier this year to expand its capacity to spy on cell phone ...Washington Post
- Paraguay's GDP Of 14.5 Percent - Best In The Last 32 Years -
Bernama - Soccer: Reds' Hosogai moving to Leverkusen in Bundesliga -
Mainichi Daily News - Paraguayan rights activist files former dictator Stroessner's son of illegal ... -
Winnipeg Free Press - Cabanas set to appeal to CAS over pay dispute -
USA Today
(RTTNews) - Latest in a trend of growing Latin American political support for the Palestinian people, Bolivia recognized Palestine as a "free and ...RTT News View related stories »
- China helps Bolivia fund satellite -
News24 - Petrobras Receives Approval For Bolivia Gas Stake -
Wall Street Journal - New gas project launched in Bolivia -
Fox News - INVO Bioscience Announces First Shipments of INVOcell Into Bolivia - PR Newswire (press release)
- INVO Bioscience Announces First Shipments of INVOcell Into Bolivia - PR-USA.net (press release)
- Bolivian president says he'll recognize Palestine -
Washington Post
But then I clicked on the Venezuela button:
by Anna Mahjar-Barducci Due to the Venezuelan flood emergency that resulted in more than 130000 homeless nationwide, the Parliament gave President Hugo ...Hudson New York View related stories »
- Venezuelan politician sentenced to prison -
Washington Post - Hugo Chávez tightens his grip in Venezuela. Can US do anything about it? - Christian Science Monitor
- IUS Nominee Ambassador Palmer “Cannot Enter the Country” says Venezuela's Chavez -
Bay Area Indymedia - Venezuela May Take Control of New Gas Projects, Universal Says -
Bloomberg - Venezuela Prosecutors Investigate Comments By Business Leader -
Wall Street Journal - Venezuelan eye care program suspected as anti-American effort - AHN | All Headline News
Notice anything different about the coverage, folks? This was all a bit of an eye-opener to me, because I usually get the Google news service piping me Spanish language reports and features which never hold this amount of obvious media bias. For sure they'll cover the polemic issues out of Venezuela, but there's no obsession on Chávez, pseudo-human rights issues and general vitriol towards the country, because Venezuela has all its own business, political and social affairs worthy of report and comment. In Spanish language reports, headlines will tell you what to expect in the report, they don't immediately try to enforce an image that's been built up around a country.
A chart of the GDP of Latin American countries
Chart of the day is....
..crude oil, monthlies.
12/23/10
Lard for laughs
For RickB and all who understand that Mickey Rourke is pop star.
Because it's Christmas week.
Toronto Stock Exchange Christmas opening hours
2010 Stock Market Holidays - Stock Markets Closed
** Please note that the TSX and the TSX Venture Markets will close at 1:00 p.m. on Friday, December 24, 2010. The Extended Hours will begin at 1:10 p.m. until 1:30 p.m. on this date.
- Christmas Day - December 27, 2010 (in lieu of December 25)
- Boxing Day - December 28, 2010 (in lieu of December 26)
** On December 31, 2010 regular trading hours will be observed.
Randgold (GOLD) has a message for the violent gangs of Ivory Coast currently running amok in the country
"Randgold Resources said today the effect of the continuing political impasse in Côte d'Ivoire on its Tongon mine and a below-target contribution from its Loulo complex would have a negative impact on its fourth quarter performance and its year end results."
"....the company has revised its production guidance for Tongon and stated that assuming the supply chains could be managed and the situation on site remained as it is today, the mine was planning to process approximately 350 000 tonnes of oxide ore at a grade of 3.4g/t to produce approximately 35 000 ounces for the year. Bristow added that given the current situation and the resultant delays, gold sales were expected to differ to production." CONTINUES HERE
Meanwhile, check out WaPo on the post election violence on this link. Over 200 dead now, we hear.
x
A digital nativity
With thanks to reader 'P' for the headsup, this is witty, cool and nicely festive.
PS: don't miss tomorrow's Friday OT: Best Christmas song ever coming up.
Mickey Fulp, CNBC teevee star
Colombia Porn Bandwidth Congress Government Shock Horror Scandal
Excess of visits to pornographic pages collapses internet in Colombian Congress
In the last week there have been 5,000 visits to web pages with adult content and 3,000 websites to find partners.
The multiple visits to pornographic pages and partner search pages have made internet access difficult in the Colombian House of Representatives, according to an analysis made by IT systems engineers reported today.
The newspaper 'El Tiempo' says that the revision was done due to complaints from users about the lack of speed of the system. The experts found that in recent days there has been consultations made from computers installed in Congress of more than 5000 pornography pages and 3000 partner search pages.
Directors of the House of Representatives said that from this point onwards internet access would be restricted for those that do not belong to Congress.
"The objective the administration is looking for are simply to cleanse the system and to avoid access to pages that do not bring benefit to work practices, such as porn pages, person-to-person programs, downloading free program, messenger, yahoo messenger and other improductive services not required in the daily legislative work", said the Lower House in a communique.
The administration of the House of Representative cause controversy at the beginning of the month by censuring the use of internet that offered free e-mail and social networks such as Facebook and Twitter. The measure was called 'absurd' by the House president, Carlos Zuluaga, who rescinded the order.
UPDATE: Reader Hanuman Bismarck comments, your author agrees:
-
"Directors of the House of Representatives said that from this point onwards internet access would be restricted for those that do not belong to Congress." Gee, THAT's going to solve the problem!
Chart of the day is....
...zinc spot price, five year period.
A Flash update...
12/22/10
IKN recommends: Fixing The Economists
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Mailbag on the Vancouver Cambridge House mining conference, January 2011
Wow, the Van Cambridge 2011 in January sounds like a who's who of folks that you've heard of.Thom Calandra. Marin Katusa. James West. Bill Murphy from GATA. Um... then Grandich and Jay Taylor. Um... then Fulp and Cook.I guess you really can't choose who you share a room with when it comes to the Cdn mining analyst biz, eh? Fulp and Cookie both even get to be on a panel with Louis James.I almost want to go.... Are these things good fun? Do they let you take video or audio recording gear in? Is it easier to smuggle it in than at a Marilyn Manson show?
Greystar (GSL.to) gets a thumbs down (but not THE thumbs down)
Here's Reuters version of the news:
BOGOTA Dec 21 (Reuters) - A Colombian state ombudsman on Tuesday recommended the government consider rejecting a license for Canadian miner Greystar Resources (GSL.TO: Quote) to develop a gold project because of environmental concerns.
The national Inspector General's recommendation is not binding, but the ruling could bolster those who argue the Angostura gold mine project would impact the delicate paramo ecosystems in northeastern Santander province.
"The Inspector General's office has requested the ministry... study the possibility of not authorizing the environmental license for the mining project Angostura," said the ombudsman CONTINUES HERE
PS: Talking of people who don't speak Spanish, I wonder how Nicholas CampbellSoup over at the Can of Corn will feeling about this news out of Colombia? After all, he's the dude that reiterated his spec buy on GSL with a $9 price target.....on November 19th....when the stock was at $5.19....and now it's going under $4.....you have a nice day too, Soupy.
Chart of the day is....
12/21/10
How beer consumption in LatAm MUST BE reported by the English language media
IKN back: BS Newswires doesn't exist, but the stats do and are from this report in Peru.com today.
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Updating Pachamama (PMA.v) vs Regulus (REG.v)
UPDATE: REG.v now 93c, market cap at $33.67m, arb now under $2m
UPDATE 2: Ok, to stop the mystery play here's part of a long note about REG.v that appeared in IKN85 last Sunday. Basically, subscribers knew that the 70c and 75c prices offered up yesterday were a bargain and a decent little quicktrade was in the cards.
DYODD
- Now for the arbitrage calculation with Pachamama Resources (PMA.v), holder of the other 50% of the Rio Grande project. At Friday’s close for PMA.v of $0.80 and via the 44.3m shares out at the company, PMA’s market cap stands at $35.4m. PMA has a similar amount of cash at bank as the new REG.v (not exact, but close enough), so the two treasuries basically cancel each other out.
- If we assume REG.v’s 50% of Rio Grande is valued the same as PMA’s 50%, REG.v should trade at a little under $1 next week.
- This presents a potential opportunity, ladies and gentlemen readers of The IKN Weekly. It’s possible that REG.v sees selling tomrrow morning as people cash in on the new issue and turn paper into cash. We went through this argument with Renaissance Gold (REN.v) when it was spun out of AuEx Venutes and it didn’t happen and we also went through it when Canplats spun out Camino Resources (COR.v) and it did happen, so if it does tomorrow your author would be interested in adding REG.v at a price that shows a significant discount to that of PMA.v.
- On the other hand, it’s perfectly possible that REG.v is bid up tomorrow morning, as a price of above $1 (pretty close to ‘fair value’ accoridng to our line through PMA.v) would mean there were less pressure from any large institutional holders of REG.v to dispose (recall that some instos have a “no holdings under $1 rule” and may feel forced to sell if REG.v trades lower).
- It’s difficult to say which way the wind will blow on the trading tomorrow (e.g. at the table last night, the Antares team had split opinions and could see both sides of the equation) but we should keep an eye on proceedings as there is at least the potential for a bargain.
What about this chart? Would you buy this?
Would you buy this chart?
The IKN Weekly and plenty of its subscribers bought this chart:
The flushing sound of Nature's Call (NATC.ob)
- It's a scam.
- Really, I'm not joking, it's an obvious scam. Start by visiting the paid pumper report with all the hallmarks of the scamster mining pump. BigRedLetters? Check. Use of photos of gold bullion and of the US Flag? Check. Outrageous claims for stock price upside knitted into that ever-so-special copywriter's text which Green Laser Reviews explains so well? Check. And the list continues.
- So just to make sure we're dealing with a scam, the first thing to so is go over to the SEC filings for NATC.ob where we see that as at its last quarter (ended August 31st) NATC had assets of thirty-nine dollars. We then find out on further reading of the 10-Q that NATC got loaned $150,000 at 5% interest rate by a certain Graeme Renton to start this scamball running and secure an option on 70% of the Los Amoles property held by Yale Resources (YLL.v), details of which you can see here.
- The next thing is to note the share price action:
"...(Cesari Services Limited C/O Hardtman and Associates) for coverage of Nature’s Call. Cesari Services LTD paid two hundred and ten thousand dollars to marketing vendors to pay for all the costs of creating and distributing this report online"
To cut a long story short this one is an awful smelly scam. Avoid like the plague.
12/20/10
2011: One prediction per country
- Argentina: Cristina is re-elected
- Bolivia: GDP grows by 4% in 2011, nobody cares.
- Brazil: The new Dilma government tries and fails to weaken the country's currency, the Real.
- Chile: Piñera's popularity stays roughly where it is right now, bobbling around 50%.
- Colombia: Santos comes under pressure from the USA to cool his new-found buddypal relationship with Chávez next door and diplomatically flips Hillary the bird as his reply.
- Ecuador: Correa moves forward the country's mining industry and gets plenty of pushback from indigenous populations via protests, marches etc.
- Paraguay: Another record soybean crop in 2011. Nobody will care.
- Peru: Toledo wins.
- Uruguay: Another good growth year for Uruguay in 2011 with no big problems in store.
- Venezuela: The country will come out of recession in 2011 and post strong growth numbers. This will coincide with the precise moment when foreign journalists stop reporting on Venezuela's GDP growth numbers.
recent buys
stock added | % change since buy |
22-sep-10 | 54.5% |
26-sep-10 | 48.3% |
03-oct-10 | 45.3% |
13-oct-10 | 20.5% |
13-oct-10 | 59.1% |
07-nov-10 | 16.0% |
21-nov-10 | 52.4% |
05-dec-10 | 34.7% |
Good news and bad news for the Argentine economy
Chart of the day is....
12/19/10
The IKN Weekly, out now
IKN85 has just been sent to subscribers. Time to party! Left side of the bus, please.