IKN

More matter with less art

Chart of the day is…

…Jaguar Gold Mines (JAG) versus the gold ETF (GLD in 2012:
To commemorate JAG dropping under $1 for the first time yesterday. It took two months from the original “we’re screwed” announcement, mainly because there were still some people deluding themselves into believing JAG had something going for it. Looks like they’ve changed their mind. 
Sometimes on the blog and more often in the Weekly, I mention Rule One™ for operating mining companies which is “Make A Profit”. Not a free cash flow profit or an EBIT profit, but a real live post tax post everything bottom line profit. JAG is the poster child of why Rule One exists and why it’s important because all the improvements in cash costs in the world won’t save you from a screwed up balance sheet.

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