IKN

Win us with honest trifles

I really don’t understand this Pan American Silver (PAAS) chart…

…considering the news that PAAS has got the law change it required from Chubut to move forward on its Navidad mine last week:

I’m no big fan of the company either; it’s not a reco or a long here, plus its track record in all countries of operation leaves much to be desired. However, seeing PAAS doing only slightly better than the Global X Silver Miners ETF (SIL) over the last ten days is odd, because should be way out in front now it has Navidad in the bag. Perhaps the market thinks the law change will be rescinded in the 30 day cooling-off period, of perhaps it thinks PAAS won’t get its permits to start construction, or maybe it thinks the company will now drag its heels on development and prefer another growth project over one in South Argentina, or maybe even that Navidad won’t move the company dial by much. I dunno, but whatever misconception is holding the price back is plain wrong, Navidad is set to be a seriously profitable mine and with the major bottleneck now behind it, is going to happen sooner rather than later.

11 Comments

    Good timing on this. I was just about to write on your LatAm mining risk post that apparently now Arcioni has back tracked and is saying the mining law is repealed and there will be a plebiscite. This news came out a few hours ago so maybe the algos just picked up on it b/c PAAS is starting to sell off a bit.

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      Argentina: Anything can happen and often does. This time Arcioni “sets a fire and then complains about the smoke” (as one JCC politico said). As for the referendum, show me first. And who gets to vote in it? Also, repealing a law will allow PAAS to go to ICSID. Fun days ahead.

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    Indeed. Now I understand why you refer to Argentina as a ‘basket-case country’!

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      Going to have to correct you, it’s THE Basket Case Country. Nowhere else has so many varieties of crazy. Ecuador can try all it likes, se quedara en pañales al lado.

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    “We have decided to repeal the law and promote a plebiscite at the provincial level to listen to all the voices of the people,” Chubut Governor Mariano Arcioni wrote on Twitter on Monday.

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    Do PAAS get a refund from the argentine politicians for the bribes paid?

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      As long as they bring the receipt.

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        I guess PAAS out the bribe money since generally to my knowledge bribes to buy votes are paid in cash money. To my knowledge cash generally put in envelope taped under desk where politician sit when in session. Another fan favorite for secreting cash bribes to politicians is inside Gideons bible under chaper of Revelations.

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    With this outcome PAAS going to need to start write down value of Navidad on balance sheet. Appear to me to be too late in game to invove the guys who did security for Tahoe in Guatemala so as to straighten out the local opposition.

    Reply

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