Timber! Oh, How the Might Have Fallen!

Now, I know these posts have absolutely no value what so ever, but over at My Own Market Narrative he is posting tell all, uncensored, graphs of carnage.... (Graphs of brutal destruction, shareholders clutching their bags, uttering incoherently over their folly for not selling. Junior mining execs wandering down Howe in fugue looking desperately for money, while execs of majors shoot past their starved, angry, share holders in golden parachutes. Humanity goes on, money flows into ETFs and Biostock companies, people realize the American economy isn't actually that bad, that no one really cares about what North America thinks in regards to gold; That the imminent economic collapse, the one that would make that ol' yellow metal oh so powerful (why wasn't there a subsequent rise in Tuna canning companies?) never really happened. "Its real money, its real money" they shout, clutching their paper shares and futures contracts. The lizard people move into the final phase of their take over, laughing as they hack the heads off of each defeated, downtrodden, gold bug "Its not money you god damn asshole" they shout just before their steel machete comes down).....I thought I would as well.

Lets begin with Barrick...ouch, what a dive. I guess that is what you get for sucking.

And...next we have I Am Gold....how about I Am Shit. That what you get Steve Letwin for going on BNN in a black muscle shirt. And what about that "touting low grade" business? I'm pretty sure it only works if you practice low spending as well.
And how about your assault on costs?...More like assault on share price and shareholder value (Baamm!) Oh...and were you not brought in because the guy before you loaded the pipeline up with shit projects? Nice job.

Next Up..Tower Hill Mines. Now, this wasn't so much a victum of market conditions as much as it was a victim of being a scam, but still..its graph is like seeing your best friends wifes' bush. You know you should look away but you cannot find the resolve to do it.

Here is El Dorado gold (I changed it too weekly chart to make it look better). I don't actually know much about them except for that their chart sucks. I would like to make a snide comment or two, but I cannot. Anyways, let let the graph speak for itself.

This one isn't really fair as it is a Bobby Genovese company, and as such was never intended to make money or be a positive investment for shareholders, but none-the-less I will include, if only because a number of people in the news letter writing world, and few people on the board of directors actually believed that you could take a mine that was no longer operable at silver prices 35 years ago could be profitable now. Without further adue, Libery Silver ladies and gentlemen.

 

Here is SAMEX mining, it was also a scam and I actually did do a write up about it but never finished. Anyways, it took an even bigger kick in the nuts that it got delisted to the nexus board of the venture exchange. Thats like...your not even legit enough for the V, which is a hard concept to wrap your head around. 

 

I would do more..but maybe later.  I'm going to go watch Law and Order and drink beer.

Until next time... 

UPDATE:

How could I forget Kinross. God lord! May god have mercy on their share holders. But..seriously, if someone was dumb enough to hold on all the way until now there isn't a lot of sympathy on my behalf.

 

Oh God, The Humanity, The Carnage; The Clive and his Bema2Gold

What a fall. Remember when everyone thought that the Clive and crew were immortal, that they could create shareholder value even at $12/oz gold. That they could keep on taking out loans to buy out projects and everything would be peachy, that they could release almost 1 billion shares (yes...that's what I said 1 fucking billion shares) and everything would be nice and rosy. That everyone would join hands and dance around in a circle.

I suppose if you bought at 25 cents you are still happy, but still. The market has left even our greatest, most infallible heroes sunken and trodden upon. And yes, the Clive was a hero of mine. But how the great have fallen. Market sucks, gold price sucks..yes, we all know, but BTO did weather the storm quite well for a while. I think people are getting cold feet by the amount of paper being printed for projects who PEAs have been a bit underwhelming in the past (*cough* Gramalot *cough*)

There is no reason or point to this post, and I recognize that...I just...don't know what to say. Only saving grace is that I don't own any BTO.

Duluth Metals to Be Aquired by Antofagasta for 45 Cents

So Duluth Metals is to be taken over by a company called Antofagasta. The take over big, which Duluth metals has agreed too (pending a 66.66 % acceptance), will give 0.45 cents per share. Which, if you had bought the day before the news at 6 cents is a very nice gain.

Of course, if you bought at anytime before mid-late august (where the horizontal line intersects the historic price chart) you got a pretty shit deal. Or did you...

This is a project that reminds me of so many projects where they outline a nice big resource, tout it about, only to come to the conclusion years later that its just not economical.

The project is in Minnesota and actually does have almost 2.5 million oz of platinum and nearly 5.5 million oz of palladium (not to mention 1 million oz and change gold).

Unfortunately, the capex was something crazy like 2 billion dollars and the after tax IRR was 11% (using higher then current metal prices in their PFS).

Now Antofagasta, a company from Chile, was actually a JV partner on the project, who pulled its support right around the time the poor pre feas study came out, then came back and bought out Duluths part.

Biosynt and possible quick penny flip.

Now, I do watch this stock and I have seen patterns, as anyone who watches and/or trades a particular stock for a while picks up on.

The stock dropped 59 cents (~5% drop) yesterday on quite only a few trades trades. Typically when I have seen this stock drop a significant amount in one day, the next day or two of trading normally sees a rebound of at least 10 cents and usually more.


Disclaimer: I will not be doing this because I am busy


Update!

Probably not a very difficult call, but it was true, today is the 6th, trading not over. But if you had bought when I posted, and sold right now, it would have indeed been a little penny flip.

Trading V.NES on Some Technicals (cue the laughter)

You might be thinking, did he just say that? Perhaps I should have phrased the title as a question rather then a statement. "Can you trade V.NES on Technicals?". But I won't. In anycase, you may think it is ridiculous but I'm always looking for new and exciting ways to loose my money in the Junior Canadian Mining industry. Anyways...Newstrike Capital. They have their Ana Paula project in Mexico which was all the rage when people actually seemed interested in gold, The yput out a number of really exiciting drill results then lagged around to any type of PEA, Pre-feas or NI 43-101 (although they just released their PEA last month, something I will write about shortly.)

Well, heres the chart, let me explain...

As can be seen, the chart has 3 secondary trends which are all very similar, in an overall uptrend which has gone on for about a year and a half. The trend breaks each time when it penetrates the upper bollinger; going down to retest the bottom trend line before breaking it as well. (If you really really wanted to stretch your TA one could almost make out the case of there being an upside down Head and Shoulders pattern.)


If the pattern continues, I believe it will make a higher low this time before moving back up. At what point, I can't say, but I'm going to take a guess at the 0.90 point...assuming things stay more or less the same. They had a good 43-101 report out a week ago which was generally well recieved and saw the stock up on the day, so there is a decent amount of new holders.


I like this stock, and I watch it constantly as it does go on these type of runs quite often.

Ohh... Poor Old Boy Malcolm Stevens and His Sphere Resources

I wrote about this stock a couple of times. I remember it fondly because I made some money off of it. If you don't recall, they are the company with a grass roots property next to Gold Standard Ventures Railroad property called the Poker Flats, the company who tried to raise $10,000,000 on corporate bonds with a share price of 0.01. Well, they had an option to earn in (iirc, 50%) then another 25% on the poker flats from Mexivada, another junior who rivals Sphere in its all out ridiculousness (although at least sphere is currently trading).




I have a number of posts on both companies.


So, on February 18 and many months after the closing date of the supposed bonds, the company releases a press release stating that the "Sphere Resources Group has achieved 51%  interest in the Poker Flats property by incurring $500,000 in exploration expenditures". Which is odd, firstly, because one has to wonder where that money came from, as they had none, and secondly, if they did indeed spend that much money where are any of the exploration results? Lastly, and perhaps much more disconcerting, is that the money needed to be spent by December 20th and the press release was put out 2 months after the fact. Read press release here.




Mexivada, without even enough to put out a release, sends out a corporate update via their website stating that the agreement has expired due to Sphere Resources not meeting the terms of the contract. I would find the link, but the website drives me crazy with it poor navigability.




So..stalemate. Out of sheer curiousity I actually sent an email to Malcolm Stevens asking him exactly whats going on. The jolly Australian fellow, who in the past has warmly referred to me as mate, gave me this response

"Mexivada’s last gasp! Quite inappropriate as you will see from Spartan’s audited financials next month.

 

Poker Flats,

Mexivada has a detailed list of Exploration Expnenditure which met the 51% requirement as per the Agreement."

Yes, their last gasp indeed...
Well, on September 8th a Sphere News release reads that they have renegotiated the terms, giving them until Dec. 31 to incur 300k exploration expenses for 51%, then another 250k for a further 24% by Dec 31 2017. Here is the press release.


So...wait, on February 18th you came out saying that the company had spent half a million dollars on exploration on the Poker Flats and then on September 8th a news release comes out stating that the terms have been renegotiated; as if nothing had ever been said about the supposed and previously announced earn in. Seems highly dishonest, if not illegal, to lie in a publically disseminated news release. As well, I would imagine lying in financial statements, as Stevens told me I would see the breakdown of expeditures in Spartans financials, is something of an offence. But... With the SEC or the OSCs limited power and resources to go after these things, and with much bigger fish to fry (which they usually don't anyways) these type of small OTC pump deals will get little attention. Its for this reason I like to bring attention, because the investor himself must look out for him. Usuaully if someone does it again, he'll do it more.




Happy investing!

More Mahdia News

Lets return to the subject of one of my most popular posts, a post about Mahdia Gold. Its not a very unique junior story, but its one that I cover and that not a lot of others do. I was also an investor at a time. To get a background on Mahdia, or re-read my previous post on them, click here.


So..whats new in the Mahdia saga? Well its working are striking for unpaid wages, which makes perfect sense considering that they have no money to pay them. here is the video Capitol News for your viewing pleasure, which shows the unfortunate individuals asking for their money. Interestingly enough, Stabroek News has an article (or partial article because they want you to pay for the reading beyond the first couple of paragraphs..granted only 25cents) which states they have been unpaid for 6 months and that Alan Zaakir "the former Chief Executive Officer who is now described as MGC’s Managing Director" has been contacted, but since I didn't pay the fee I can't read his response. Okay, so Alan Zaakir is still part of Mahdia Gold, which just goes to show how little hope there is for the large number of shareholders holding the bag on this joke. Oh, and what more, Mahdia Joint Ventured with a local company called Roraima Mining (Mahdia only has prospecting permits for the Omai property whereas Roraima has actual alluvial mining license) which someone on the ground tells me is actually owned, or at least in part, by Zaakir, although I am still trying to confirm these reports. As well, when he was exiled from the company, much to the joy of the angry investors who had been calling for his head for some time, it was basically a lie. Now that he back with the company one can only believe that he has always been behind the scenes.


It really is quite hilarious that this man can continue in this. When Andre Duchane came in, many investors thought it was a new dawn for the company. The man did very little other then set up a joint venture on a small scale alluvial operation which focused on the tailings on the past Omai mine, which was washed away once, and never produced any significant amount of gold.


The company still needs to pay their 7 million to the Guyana Mines department which will, in this market likely not happen. They have already gone over the set date, and over the extension, so who knows what will happen.