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Yes... Sprott believes there is more leverage in shares than gold... i would tend to diagree with him as he can only be right if we have a quick bounce otherwise the jrs end up like CSI - TSX - high this year was $5 now 20 cents. Massive diluition and constant need for $$$'s is the killer of jr miner shares. Look at v.SSP... did a killer deal this week with Silver wheaton.. non dilutive and they stay alive... stock barely moved! Maybe one to think about...
Sure - was born out of Eric Sprott and he was until last AGM a director. The Managment Co of SCP is SCLP - 56pct owned by.... Eric Sprott.
http://finance.yahoo.com/news/sprott-corp-announces-2013-third-120000188.html
Posted: 14 Nov 2013 07:09 AM PST
Eric's sold his gold.
"In November, subsequent to quarter end, we completed the disposition of our gold bullion holdings for gross proceeds of approximately US$76 million ," continued Mr. Yuzpe. "This transaction gives us the financial flexibility to eliminate our outstanding debt, while providing the Company with approximately $24 million to pursue new investment opportunities."
SCP.to has decided to stop covering its debt with metal and definitively cover its debt using dollar bills. And as the brand new Pres/CEO of SCP Mister Steve (coincide?) correctly points out, this is an opportunity. To buy it all back at $1,500 in a few months' time.
Mining in Mexico
The sovereign take
A new royalty rattles investors
BRADFORD COOKE runs his finger along a vein of ore rich in silver and gold and comes as near to purring as a veteran Canadian miner can. “This place has been mined for 450 years yet this little treasure box has been hiding less than 25 metres below ground,” he says. He points to the mine’s British manager, scrambling excitedly across the newly blasted rocks, and chuckles: “This is what Dave calls ‘horny’.”
But the object of their affection is rapidly tarnishing before their eyes. On October 30th, the day that Mr Cooke brought the board of his Vancouver-based company, Endeavour Silver, on their annual inspection of one of its three mines in central Mexico, the upper house of Congress approved a new mining tax proposed by the government of Enrique Peña Nieto. “If it goes through as is, our fourth mine will not be in Mexico,” declared Mr Cooke.
Mining is not the only industry up in arms over Mr Peña’s broad tax overhaul. In fact, there is hardly a business group that has not dispatched lobbyists to Congress in a forlorn attempt to soften its impact; from soft-drinks and food manufacturers who face a new anti-obesity tax, to manufacturing exporters (maquiladoras) who lose tax privileges, to pet-food firms hit by higher value-added tax.
The government needs to raise revenue in a country where tax avoidance is rife. The mining levy—a royalty of up to 7.5% on profits, plus 0.5% on revenue from precious metals—makes sense in principle. But it comes just when metal prices have swooned. For instance, Endeavour’s silver prices fell by 21% in the third quarter compared with the same period last year.
Miners say the royalty will threaten investment and jobs. Grupo México, a copper producer and conglomerate, said on October 28th that a $5.3 billion investment programme after 2014 could be redirected towards lower-tax jurisdictions, such as the United States, Canada, Peru or Chile. Rosalind Wilson, head of the Canadian Chamber of Commerce’s mining task-force in Mexico, says that in 2012 the country took 53% of the $1.9 billion raised on the Toronto Stock Exchange and its junior twin to finance mining in Latin America. In the first eight months of this year, the figure had fallen to 17%. “Mexico is completely pricing itself out of the market,” she says.
The finance ministry expresses surprise at the reaction but is unrepentant. It claims Mexico has been overgenerous in not charging any royalty. It disputes the industry’s assessment of the severity of the 7.5% tax, saying that there is a generous allowance for the depreciation of investment.
Mexico has seen a mining boom since opening the industry to foreigners in 1990. The result is evident at Bolañitos mine near Guanajuato, a town still resplendent from silver wealth dating back to Spanish colonial times. After taking it over in 2007, Endeavour increased the daily volume of ore it crushes from 50 tonnes to 2,000 tonnes. The “sovereign take”, as a member of the company’s board calls the royalty, means this kind of productivity-boosting investment may now come more slowly.
Comment:
I am now a card carrying member of the Venture Capital Markets Association, which if you wanted to attend they kinda forced you to pay $5.00 and sign up.
Over all it was a pretty good bitch fest about the regulators, BCSC and IIROC for the most part. There was desperation in the voices and they want to start lobbying on the political front for changes. One of the most harped on issue was private placements to accredited investors, which they would like to open up to any shareholders.
Which I agree with, if I am already a shareholder of Livengood Mining and own 10,000 shares why can't the company ask me if I want to buy 10,000 more with a warrant?
Better yet how come companies just can't offer warrants to their existing shareholders at any given time for a stipulated given time?
One thing that no one mentioned is the retail shareholder and why the juniors have lost credibility with the retail/insto guys.
Another sticking point was all the fees they have to pay to maintain a listing. My thought is if you are worth your weight in salt then these should not be an issue, but if your a lifestyle company then it looks like you are at the end of the rope.
The panel did recognize the bad apples listed on the exchange, but seriously there is a misalignment with CEO salaries/fees and the performance of the stock. Shareholders continue to be bagholders while management can expense their Vancouver lifestyle.
Which brings me to the next issue with private placements, you always need the retail (read bagholder) there to eventually sell your private placement cheap stock and warrants too. These days there is a rush to the exits from the holder of the private placements, usually showing up about a month before the hold comes off.
Any news is just used as liquidity event, no one wants to hold the stock for more than 4 months anymore.
Look, I am an accredited investor and even I can't be bothered to participate in private placements, I am at a disadvantage to others who short the paper before the hold comes off. If the deal is that good I would rather just buy the stock in the market and forgo the warrants, that way I have liquidity and most likely the warrants are going to expire worthless.
The juniors got a serious image/credibility issue and they need to fix that first. CEO salaries and fees need to be in line with shareholder returns to start.
There was issues around how many jobs the juniors create which they do out in the field or in a small town, but that is usually seasonal. In reality the junior companies keep more lawyers, accountants, waitresses, bartenders and sommeliers employed in this city than anyone else.
There was talk about getting back out in front of media to promote a better image, unfortunately the media can't be trusted anymore either as they just become PR megaphones for the industry.
The retail guy craves credibility in this world hence the ever increasing traffic volumes at thisVancouver Venture site or IKN and Myownmarketnarrative, our agenda is aligned with the retail guy out there as we are the retail guy. We are just trying to cut through the bullshit this industry pumps out and find a few decent deals to make a few bucks at.
I agree with some of what the VCMA is trying to achieve but I think they need to look in the mirror first.
I taped the whole show which did get lively at times and boring at other times as soon as I figure how to get it into a youtube video I will post it, it is about 1:15 long but the best part is in the first 45 minutes.
http://vcsass.blogspot.ca/2013/10/welcome-to-venture-capital-shareholder.html
sinbob!!... YES!... you finally nailed it!... :) i can finally speak for all on this board... we can all finally thank you for all you're hard dedication and informative posts over the past 17 years. ... you truely are a special person that only comes around once in ones life time... cheers... :)