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4/24/18

BREAKING Tahoe Resources (TAHO) (THO.to) $TAHO: The La Arena strike is going from bad to worse

Word from La Arena this afternoon is that the local community around the Tahoe Resources (TAHO) (THO.to) gold mine in Peru have joined in the employee strike action currently underway and have now blockaded the access roads to the mine. Up to now, TAHO may have been able to keep up the pretense of this dispute not affecting production, that is now well and truly over.

Locals are incensed because the last time they complained about the way in which TAHO had not kept their community agreement promises, management at TAHO promised them they would make amends and give them the type of anciliary work due (e.g. catering, security watch etc). But yet again, those promises have not been kept and the locals have run out of patience.

TAHO Resources is run by two-faced idiots and liars. Time to fire them before it's too late. And Edie Hofmeister should tell the truth to the people who pay her outsized salary once in her life.

Another thing that continues...

...is the rise in Asanko (AKG), as predicted at first The IKN Weekly and then this blog a few days ago.


Ex-comms I'm 24.7% up on mine in three weeks (in a flat market, see XAU benchmark above) and please recall, this is the blog that successfully called AKG down from its $3+ level and now catches at least part of the upmove, for pleasure and profit. And yes of course, this post exists specifically to annoy the IKN haters. Gotta hate, guys, Gotta hate.

The strike continues at Tahoe Resources (TAHO) (THO.to) La Arena gold mine

As you can see from this report and video, published four hours ago by a local media source. What's more, word now reaching this desk has employees at the nearby TAHO Shahuindo mine considering joining in the strike, as they too have not been paid their 2017 participation bonus and are unhappy about a marked deterioration in working conditions.

It would seem TAHO's idea of "payment of bonus" isn't the same as reality. Somebody should ask them if those bonuses they paid were for all employees or just a specific few. And how much. Y'know, basic questions.

Alex Black, Tahoe Resources and Italian pizza

Italian pizzas are delicious, but not all of them because they have those cheapo supermarket frozen brands too. But stating in public "Italians are great at pizza" wouldn't cause a problem because your national stereotype is talking about a positive. However, in these politically correct times it would seem that even when you are obviously talking about  a specific group of people, i.e. the numbskulls who run Tahoe Resources from their gold plated bathroom HQ in The United States, you get into trouble if you don't get the wording juuuuuust right.

It would seem Mr. Black has ruffled a few feathers. To that end, he's just emitted a clarification of his tweet yesterday. Link here, screenshot below:



So now you know.


Mina Justa: Minsur makes a small fortune...

...by starting off with a big fortune and moving into copper. If we consider:

1) 2012 Minsur paid U$505m for 70% of Marcobre SAC, the owner company of the Mina Justa copper project.

2) Then in 2016 it paid U$85m for the other 30% of the company and project ($60m cash, then 5 annual payments of $5m)

3) And now it's selling 40% of Marcobre to Chile's Copec for U$168m.

So even if we assume Minsur has spent zero on exploration, development and feasibility at Mina Justa all this time (which is silly, they've paid millions), they're already U$68m down on the deal. The issue is, of course, how to fund the approx U$1.6Bn capex bill coming up as from 4q18 when this thing is supposed to go into construction. Now they have friends to cover 40% of the upfront, they might just do it.

4/23/18

Alex Black on Tahoe Resources (TAHO) (THO.to) at La Arena

And what does Alex Black, erstwhile CEO of Rio Alto Mining (ex-RIO.to), think of the job done by Tahoe Resources (TAHO) (THO.to) at La Arena? We found out today:


Twitter really is more fun this time around, so hey come over and join in. Your humble scribe's account right here. I think that covers everything? Coffee and petit fours, anyone?

The US Dollar index chart is the only one that matters today



Angry Geologist does Evrim (EVM.v) again

And she goes into more detail this time. Don't delay, click here.

Chart of the day is...

...silver 30 minute:


The woodshed is that building out back. Please go over there, Mr. Market will be along presently.

The Belo Sun (BSX.to) NR this morning

Further to the NR on Friday evening that announced Agnico was selling shares of Belo Sun (BSX.to), we got a real fine humdinger of an NR from BSX this morning. Here we go and there are three parts to the NR:

1) The first four paragraphs are all about a share buyback put into place. Pure fluff.

2) Then comes the announcement that four directors were mopping up 29,850,746 shares of the 44,551,000 shares that Agnico sold. The precise breakdown is given as follows:
The Supporting Directors each acquired the number of common shares as follows: Stan Bharti 12,932,835 common shares; Peter Tagliamonte 12,932,835 common shares; Denis Arsenault 2,985,076 common shares; Mark Eaton 1,000,000 common shares. Their respective share ownership prior to the transaction on a non-diluted basis and following the transaction on a non-diluted basis are as follows:

Stan Bharti: Nil pre-transaction and post transaction 2.78%.
Peter Tagliamonte: 0.21% pre-transaction and post transaction 2.8%.
Denis Arsenault: 0.026% pre-transaction and post transaction 0.66%.
Mark Eaton: 1.9% pre-transaction and post transaction 2.16%.
The first thing that comes to mind, executive chair and former CEO Mark Eaton aside (who actually used to visit the project and tried hard to make it work back then), is why these people didn't have any skin in the game before AEM's dumpage. Think about that one, yeah? The second is that the conversation between AEM and BSX must have been a lot of fun, along the lines of:
AEM: "We're selling out, up to you to decide if you want to do it in an orderly fashion or if we just dump on the open market."
BSX: "Right, here's a deal. We'll buy a third of them now, we'll find somebody else to mop up 15m, then give us two months leeway to work on the other half of your position because that way the stock price won't collapse immediately."
AEM: "Ok"
BSX: "Ok"

3) But then comes the absolute killer part, the jawdrop moment which reminds us all of the places not to do business in mining: Afghanistan, Kazakhstan and Bhartistan:

To facilitate the Supporting Directors with the foregoing purchases, the Company loaned them an aggregate amount of C$10 million.  Under the terms of the loans entered into with the Supporting Directors, Belo Sun will receive a per annum interest rate of LIBOR plus 1%, payable on each one-year anniversary of the loans. The principal amount of the loans will be due and payable, together with all accrued and unpaid interest thereon, on the date which is 24 months following the issuance of the loans.  Unsecured promissory notes have been entered into with each of the Supporting Directors for their respective loans.   

Yes indeed, shareholders of BSX: You have just lent money to the directors of BSX in order that they buy shares of your company. You cannot make this shit up.

4/22/18

The IKN Weekly, out now



IKN466 has just been sent to subscribers. It has 30 pages, 14,583 words, several tables, plenty of charts and would not have been written if it weren't for Johann Sebastian Strauss. And coffee.

Tahoe Resources (TAHO) (THO.to) provides a NR on the La Arena strike action

Right here. And while reading, please keep in mind this:

 "The IKN First Law of Mining News Releases: Considering that anything contained in a mining news release is presented in the best possible way for the company in question, any piece of information contained in a NR that comes across in any way negative means the real news and/or events behind it must be very, very bad indeed."