IKN

children of an idle brain
02 / 03 / 23

The Friday OT: Shingo Nakamura; come closer (extended mix)

This extended mix of Shingo’s brand new track dropped two days ago, so I’ve only played it a dozen times so far. Or maybe 15.

His signature sound on display, light, deft and masterful trance. Such a pleasure to lean into the weekend with a new Shingo in the ears. YouTube link here, time for #16.

02 / 02 / 23

If Goldshore Resources (GSHR.v) wants its share price higher…

…it’s time its C-suite faced reality. They need to stop pretending they can coast into the MRE and PEA on current treasury, nobody is buying the idea and it’s easy to understand why. With C$5.3m in treasury at the end of its last declared financial quarter, end September 2022…

…then two small and rather forced looking raisings on shareholder-unfriendly terms at the end of December for gross proceeds of C$6.8m and a revised plan last year to cut back on drill rigs in order to save cash, you would have thought GSHR would be okay for cash but the information from its latest corporate presentation…

…puts a damper on that idea. Do the quickmath and see GSHR blew through all-but C$4.2m of the C$12m in combined treasury between October 1st and January 9th and that means there has to be another financing in the works. So much for that change of plan in mid-2022 to slow down its cash burn and aim for a smaller initial resource. The market isn’t stupid and knows GSHR has to dilute (again), look no further for the reason its PPS has been unresponsive despite plenty of recent newsflow.

It might not be something retail bagholders want to read, having been herded into this stock in 2021 and 2022 by a long list of rockstar anal ysts and newsletter pumps, but GSHR’s management needs to get real and stop pretending the stock will rally on organic newsflow. They changed their own story half way though last year, they cannot expect the same optimistic targets as before and the GSHR position of financial weakness is crystal clear to anyone who spends more than five minutes looking at the company’s financials. The only way GSHR stops the rot is to hit the reset button, assume 20c is the new baseline, bite the bullet, raise capital to get through more than just one quarter (preferably all 2023 and some of 2024) and get it done at the price indicated by that nice Mr. Market, be it horribly dilutive to current holders or not. If they don’t face up to the cruel reality they’re set to waste another six months and will get zero traction when the 43-101s are announced. And maybe GSHR needs a new CEO with a better strategic outlook, as that December placement did more harm than good.

Disclosure: No position in GSHR.

02 / 02 / 23

Thoughts on Sprott Ass Man’s new junior copper ETF (COPJ)

I received a most interesting mail this morning from an old friend, now living in France. That’s nothing to do with this post but the second most interesting mail received today is, because Sprott Asset Management LP today launched four new ETFs. Here’s part of the blurb that hit my eyeballs:

And yes, of course there’s a dedicated website for the new ETFs and that’s here, go see. The four products are the Sprott Energy Transition Materials ETF (SETM), the Sprott Lithium Miners ETF (LITP), the Sprott Junior Uranium Miners ETF (URNJ) and the Sprott Junior Copper Miners ETF (COPJ) and while I’m sure each will tickle the fancy of its specific niche audiences, after due perusal my initial interest in COPJ, the Junior Copper ETF, seems to be well-founded. This is an ETF that should have existed already and nitpicking aside, Sprott Ass Man has done a good job with choices and weightings (see the bottom of the COPJ page, here) as the ETF is firmly biased toward to the midcap and smallcap end of the copper sector and there are plenty of exploreco companies and stories included in the mix. Now for sure, we can always argue about this-or-that choice of company and why Sprott Ass Man picked one company over another (e.g. cynical me wasn’t surprised to see Hot Chili instead of Marimaca), but overall the mix is right and this ETF is going to appeal to fund managers looking to add leverage to a natural resources portfolio, but not in the market to expose cash directly to the high volatility world of copper juniors.

So hey there IKN regulars and non-trolls, I’ll be interested in your thoughts about SETM, LITP and URNJ (you know where to find me) but to start the ball rolling, I think Sprott Ass Man has delivered a strong product in COPJ and is onto a winner.

02 / 01 / 23

Zacatecas Silver (ZAC.v) and the reality of Morelos

The reality: Nice size, great grade, met in line and all infrastructure you’d require, but Morelos will never, ever, ever become a mine. Get used to the idea and stop feeding the BS artists.

02 / 01 / 23

The gold price and the last three FOMC statements

There’s a pattern forming:

When Jay speaks gold drops, then it decides to stop dropping. Will it be deja vu all over again today? We’re five hours away from the statement and press conference fun so, faites vos jeux messy jams and even messier jaws.