Subscribe via email, get all daily posts sent to you next day (and without all the annoying ads)

8/1/14

It's a while since we featured a late Friday night junior NR

But this one from Mercator Minerals (ML.to) is a classic of the genre. Here are the contents:

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug 1, 2014) - Mercator Minerals Ltd. (TSX:ML) ("Mercator" or the "Company") announces, further to the Company's July 15, 2014 press release, that given that the Company and Intergeo MMC Ltd. ("Intergeo") have not agreed to extend the completion deadline in connection with the proposed business combination between Mercator and Intergeo announced on December 12, 2013 (the "Arrangement") beyond August 1, 2014, the arrangement agreement has been terminated in accordance with its terms. As such, the proposed business combination will no longer proceed. 
As a result of the termination of the Arrangement, certain events of default have occurred and are continuing under the credit agreement entered into between the Company's indirect wholly owned subsidiary, Mineral Park Inc. ("MPI" or "Mineral Park") and its senior lenders (the "MPI Lenders"), and under the bridge loan agreement entered into between Mineral Park and Intergeo's controlling shareholder, Daselina Investments Ltd. The MPI Lenders have agreed to forebear from exercising their various rights and remedies under the credit agreement, until up to August 15, 2014. 
About Mercator Minerals Ltd.

The Friday OT: Beethoven; Pastoral

To be accurate, it's his Symphony Number Six, opus 68, but the world better knows this music magic by  its one word title. This version comes from the Boston Symphony Orchestra, conducted by Leonard Bernstein.



August 1st northern summer music.

Hey! You'll never guess (!!) what the lapdog brokerage anal ysts (!!!) are saying about Alamos Gold's (AGI.to) abysmal quarter (!!!!)

Here's Scotia's opening comment:

"Alamos Gold Inc.: Weak Q2 Should Cap Off Bad News..."

Yup, it's "don't worry sportsfans, things are gonna be so darned peachykeen in the second half of 2014". Now where have we heard that one before?

Chart of the day is...

...a live take of the spot gold price, which boringly seems to have moved away from the resistance zone and is back in the trading range of the past couple of days.



A reaction to the weak-ish, non-event BLS report, basically. Oh well, we'll just have to get used to The Doldrums of August I suppose. Enjoy the beach, people.

(hopefully) The final post on the Argentina default (and it's brief, too)

Because I have it and its true importance now summed up in a short message:

The default matters more to a) politicians of all flavours and b) analysts and journalists opposed to the Argentina government from both inside and outside the country, than it does to the financial markets.
That's it, the whole thing. Which in the end is just a specialized version of 'money talks bullshit walks'. 

If you don't understand that this isn't like 2001, if you don't get how Argentina won't be particularly affected (esp not in the short term), if you have not yet caught on that there's no governments about to fall or even any policy changes in the pipeline, well that's fine. I'm now officially bored with this story because for one thing I've called it reasonably well and it's panned out as expected (i.e. no surprises = no fun) it's around now the issues begin to go around in circles and the baseline capitalist in me sees little advantage in immersing into the minutae. And I'm not Argentine.

7/31/14

Argentina default and things: If you don't believe IKN...

...as it insists until blue in the proverbial face that the whole shebang is being mightily overplayed by people with more agenda than smarts, read this analysis. Here's a chunk:
The exchange bondholders are not suffering grievous harm: nearly all of them are quite happy right now, having bought their bonds well below the levels at which they’re currently trading. The holdouts are not suffering grievous harm: they bought non-performing debt, they still own non-performing debt, and the value of that debt is much higher than what they paid for it. And as for the ordinary Argentine citizen, well, there’s a lot of inflation and unemployment and black-market foreign-exchange trading going on, but that’s been true for years, and it’s far from clear how much — or even whether — the default is going to exacerbate such things. 

Indeed, Argentina is in pretty good financial shape right now. Both the country and its corporations have relatively little debt, which means relatively little problem rolling it over. Bank deposits are stable. The exchange rate doesn’t seem any more fragile than it has been for months. Foreign reserves have actually been going up in recent weeks. In terms of day-to-day financial life in Argentina, today looks almost identical to yesterday. Nothing much has really changed. 

Or, just look at the Argentine stock market — the chart at the top of this article. You’ll see that it’s on a veritable tear right now. As in, going up, not down. Part of that is just inflation — but part of it is the market showing that it doesn’t particularly mind the fact that the sovereign is back in default.
From about the only person writing op-eds in English that understands what's going on. Yup, it's that Felix Salmon guy again. Read the whole thing here, he nails it.

Coeur (CDE) and doublethink

Let's check the dictionary first:

dou·ble·think  [duhb-uhl-thingk]  
nounthe acceptance of two contradictory ideas or beliefs at the same time.
Origin: double + think; coined by George Orwell in his novel 1984  (1949)
And now, let's move to today's NR from Coeur (CDE) which contains this lead paragraph...
Coeur Mining, Inc. ("Coeur" or the "Company") (CDE) announced results from a feasibility study on the La Preciosa silver-gold project located in Durango state, Mexico and announced the Company's decision to defer construction activities at this time.
...and then this line:
We consider La Preciosa to be one of the best silver projects in North America
So c'mon world, 'splain me how those can live next to each other without resorting to doublethink or calling its officers total fuckwits.

If they're deferring construction, it's not economic.
If it's not economic, why is it one of the best silver projects?
If it's one of the best silver projects, build it already!
If they're not building it, it can't be economic
(I could continue)







Mining company earnings season: All you need to know

If gold moves down or up by $10/oz, it doesn't matter how bad or good your quarter was.

The end.