IKN

This is great:

It’s been a Mozarty sort of week this neck of the woods (jolly tunes to alleviate market pain, probably) and along the way, I chanced upon this version of The Haffner (story behind the name here) as done by the Swedish Chamber Orchestra under the baton of Nathalie Stutzman. Between them, they whip through the entire gig of four movements in just over 17 minutes and the high tempo, combined with the reduced number of players, makes it sound very different and a whole lot of fun. It’s had two playings this week (third happening now) and comes recommended as an alternative to your usual musical fayre so if you usually baulk at listening to long swathes of classical music, this might be for you. Those of you checking this out on the daily email digest may not see the embed, so the YouTube link is here. Ma’am Bam Thank You W.A.M.

Without doubt the most interesting presentation at the Denver conference (Mark O’Dea, he’s so hot right now) and the stock has rallied against the sector headwinds as a result.

It’s certainly an interesting case study, so this weekend in IKN697 we run the numbers and consider the financial risks that stack up against the potential operational rewards.

…the nice, kind brokerage man ran past your desk recently. After seeing what’s happened to Marathon Gold (MOZ.to)…

…and to Lion One (LIO.v)…

…in the last two weeks, you won’t even have the benefit of ignorance any longer, there’s no more opportunity to throw hands up in fake surprise while exclaming how horribly horrible and nasty the capital markets are at the moment. I mean, the discounted terms of these deals are bad enough for other shareholders, but when you add in the market reaction to the financings it’s no wonder there are pitchforks being brandished. Also be clear, the unholy mess you see in those ten-day charts isn’t even half the story and you can take that literally. It’s sobering to consider in August, both these stocks were trading readily at double tonight’s closing prices and we do not refer to August 2021 either, we’re talking about last month.

The moral of this story: Do Not Feed The Animals. Only this time, the animals aren’t the ones promoting moose pasture projects that don’t stand a chance, instead we’re talking about the shylocks and thieves who insist there’s “money on the sidelines, wanting in” but won’t lift a finger until they tilt the playing field so far in their favour it converts your average hockey rink into a downhill skiing course. So my dear and esteemed CEO, if (as you’ve insisted to all and sundry for years on end) your prized flagship project is as good and robust and compelling as you say it is, you simply do not need to grab at the first wedge of cash offered by the predatory sharks. You cannot accept these rip-off deals and then claim alignment with shareholders, it’s that simple.

The last time the math for the “10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity” (a mouthful, I know) was this negative was February 1982:

The yield curve inversion is getting steeper, the DXY is making new highs this evening and while inflation readings in the weeks to come may show stagflation is still in play, that’s not likely to help gold from now to Friday. Happy to be proven wrong, but U$1,600/oz now looks in the cards.

Following on from Marathon Gold’s (MOZ.to) treatment of its loyal retail shareholders last week, yesterday evening brought another example of how junior mining C-suites regard the people who pay their salaries from Lion One Metals (LIO.v):

North Vancouver, B.C., Sept. 20, 2022 Lion One Metals Limited (TSX-V: LIO) (OTCQX: LOMLF) (ASX: LLO) (“Lion One” or the “Company“) is pleased to announce that it has entered into an agreement with Eight Capital and Canaccord Genuity Corp., as co-lead underwriters and joint bookrunners (the “Underwriters“), pursuant to which the Underwriters have agreed to purchase, on a “bought deal” basis,16,240,000 units of the Company (the “Units“) at a price of C$0.77 per Unit (the “Issue Price”), for total gross proceeds of C$12,504,800 (the “Offering“).

Each Unit will consist of one common share (a “Common Share”) in the capital of the Company and one-half (1/2) of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”) of the Company. Each Warrant shall be exercisable to acquire one Common Share (a “Warrant Share”) at a price per Warrant Share of C$1.05…(continues here)

And before we get to the necessary Kermit image, here’s what that deal looks like compared to the LIO.v long-term price chart:

Rather too similar to the MOZ news last week for comfort, we note. And on the subject of comfort, cue Kermit:

Thank you, Kermit.