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7/7/15

Fun silver fact

In its June 2015 feasibility study on the Corani silver mine project, Bear Creek Mining (BCM.v) used U$20/oz as its "base case" price for silver.



Oh how we laughed.

The Silver Wheaton (SLW) tax bill: The Canadian tax people have a point here

Oh, a late night news release classic from SLW here which can be boiled down to "we got slapped with a very big tax bill".

So, let's compare the tax paid by SLW in the last few years to a similar company, Franco-Nevada (FNV). Here's how FNV has been paying The Man...


...and that looks fairly normal to me. And here's how Silver Wheaton thinks it can treat the taxman...


...which looks more like the way Bain Capital or Amazon works its books.

Naughty naughty, Randy. Pierre pays his dues, so why don't you?


Focus Ventures (FCV.v) write-up

As I own a few of these shares, this one gets a window at IKN today.

A pretty good report on Focus Ventures (FCV.v) and its Bayovar 12 phosphate project from something called "The Ag Letter" (new to me). It goes over all the main points and does a little work on the project economics, too. Well worth a view. 

Chart of the day is...

...copper. Even though I've been obsessing on the metal for a few days, the Shanghai move last night needs a headsup:




Ouch. How's that supply crunch going, guys?

7/6/15

HudBay (HBM) (HBM.to) at Constancia: How's the ramp-up going?

It's going like this:



So now you know. Data here

Peru's all-time record copper production month

Peru's Ministry of Energy and Mines (MEM) published the country's metal production numbers for the month of May 2015 this afternoon and the headline is...


...that at 131,955 metric tonnes, May 2015 is the new all-time record for copper production in the country.

Punctuation is important

Back in late June, your humble scribe got off the fence, stopped being kinda-leery-but-maybe-there's-hope-ish about copper and laid out the full bear scenario for all to see in IKN319. Here's an extract from that edition of the Weekly, dated June 21st:
"I believe the copper market's going the way of iron ore and there's no reason to hold even the minimal exposure that I have in the metal at the moment. What we've seen in the iron ore space is the small players squeezed out by the big. Rio Tinto, BHP and Vale have been happy to oversupply the market and dump the price down, which has been the death (quite literally) of many of the smaller and medium-sized players in the iron ore space, not to mention the crushing of any company looking to develop an iron ore project as a junior explorer. We're now seeing the same type of market conditions begin to appear in the copper space, with the big players happy to run their big mines at full speed because they're still highly profitable at the current copper prices, but the small players, the medium-sized and those left holding exploration projects are now being priced out.

A couple of days later, as if by sheer coincidence and all that, several subscribers sent over the link to this Infographic (I think that's what the cool kids call 'em) entitled "The Looming Copper Supply Crunch", published by Visual Capitalist, because its bullish view of the metal's fundies was the exact opposite of your author's bearish "get out of copper" attitude.

That Visual Capitalist piece was interesting for two reasons. Firstly because (and here's a screenshot from it)...



...it was sponsored by a junior mining company with a big copper project. My what a coincidence. Secondly because after a couple of seconds I realized what was wrong with the title. Everything was spelled right, but they'd got their punctuation wrong. It should have been:

"The looming copper supply. Crunch."

Here we are in early July and the IKN corrected version is making a lot more sense.

Steve Letwin news

The news is: He's still CEO of IAMGOLD (IMG.to) (IAG).



So impressive Steve. You need to tell us how you do it.