Clavis's Comments

Where Is the Gaming Industry Headed?

Wed, 21 Oct 2009 09:55:46 -0400

An excellently written and interesting article.
I am now a follower!

Why Gold, If Deflation Is the Threat?

Sat, 03 Oct 2009 16:27:06 -0400

pslater: Comments (62) FollowWell done Rolf. I hold gold through ETF's for the same reasons mentioned in your article. I believe the risks of BHO and his merry band of henchmen repeating FDR's gold confiscation and currency devaluation are significant. I have also believed for the last year that the very credibility of every Central Bank in the world (and therefore ALL fiat currencies) relies on the price of gold not going up too much. Zero Hedge's recent discovery that the Fed has been manipulating the gold market for decades is chilling to say the least.

The above comment; if I understand it correctly; is that pslater holds paper gold!
I find this quite extraordinary; not being personal: but we have known that paper gold has no reality, may I suggest that you read your contract closely, this is a none provable, non inspectable theoretical asset.
Better by far to own gold in the ground, not only secure but real with the leverage potential to increase your holding substantially, especially in the light of history as disclosed in these posts.

Battery Investing for Beginners, Part 3

Fri, 02 Oct 2009 16:00:36 -0400

Petersen has touched on an interesting point, i.e. multibetting, an investment of equal amounts across the gamut of selected companies, one or two good strikes gives you your profit and you still have your capital sums in the other companies.
This works well in a situation where prospect generators flood in because of a particularily good strike; current example Underworld; extremely difficult to do 'Due Diligence' but armed with a low price across the board you multiply your gains X fold.
PS. This also works well with horses but remember to do your math as apart from the winner, all the others are losers.

Sulfuric Acid: Leading Economic Indicator?

Fri, 02 Oct 2009 14:37:36 -0400

Email from a Chum................

Yes, CHE.UN is a solid investment. Right up until I went all in on the Ring of Fire, it was one of my top investments. I still like them; I'm just not in that market right now.

Chemtrade obtains a fairly substantial part of their sulphuric from Vale's Sudbury smelters (former Inco). With the shutdown of those smelters, there was a natural balancing of supply and demand. The other major source is not directly from natural gas, but from hydrogen sulphide which must be scrubbed out of "sour gas" streams. It's a contaminant of natural gas, so it's a way to turn a profit on something that is worse than a waste material, due to its toxicity. They just burn it in enhanced air flow burners, and spray water on the exhaust fumes. Voila, sulphuric acid.

Another sulphuric play is Noranda Income Fund, which obtains some if its acid from Xtrata Sudbury (former Falconbridge). They also manufacture their own from their zinc smelter waste gases. I don't think NIF is paying a dividend right now. If they can get back into the black, there might be a substantial SP increase. If.

Sulfuric Acid: Leading Economic Indicator?

Fri, 02 Oct 2009 14:02:59 -0400

You could look at

1. ANDINA Minerals Inc. TSX:ADM, the Cerro Azufre deposit

2. Marifil Mines Ltd. TSX:MFM, the Neuquen Sedimentary Basin

3. TVI PACIFIC INC. TSX:TVI, the Canatuan Mine

4. Arehada Mining Limited TSX:AHD, in Dongwuzhumuqinqi

5. Chemtrade Logistics in Canada, one of the world’s largest suppliers of sulfuric acid.
It trades in Toronto under the ticker symbol CHE. You can find a quote on Yahoo using CHE-UN.TO.

It’s a Canadian income trust and pays a monthly distribution of about 10 cents. Based on a price of $11.44, that’s a yield of 10.5 percent. The company appears to be in good financial condition and throws off a lot of cash flow, much of which investors pocket in the distribution.

It looks like an interesting play on what seems at least a temporary scarcity of a key chemical. Chemtrade is not a one-trick pony. It also produces liquid sulfur dioxide and sodium hydrosulfite. The company also sells into a wide range of end markets, so you’re not tied to the fortunes of any single sector. The company has an excellent presentation of its business, complete with slides, on its Web site.

Exeter: Giant Gold Project Should Draw Interest

Wed, 16 Sep 2009 14:24:01 -0400

Has that Canaccord Adams fella been down there?
Plenty of gold, but you try and get it out of this area!
Barrick and co have had their heads in their hands for months!

Remember not all gold mines are equal, some are more unequal than others immaterial of the price of gold.

John Hussman: 'Revulsion' Should Precede True Market Bottom

Thu, 16 Apr 2009 11:49:53 -0400

Just explain to me what; exactly; is supporting the bull market.
Brokers attempting to get a drink before May?

Archie's Rule and Junior Mining

Mon, 09 Mar 2009 15:56:35 -0400

I have used the 2X factor whenever setting up a new business.
i.e. Add up ALL costs to bring a product to market and unless you have twice this amount in the bank, forget it.

South American Silver Advances a World-Class Silver Discovery

Sat, 28 Feb 2009 08:27:27 -0500

Pretty pictures, but........

The whole premise of offering indium as a significant revenue generator at a $530/kg is nonsense.

The way that 0% discount to NPV calculations are presented as "the project economics" is downright nonsense.

Do you honestly believe that Bolivia will let a foreign junior miner in on world standard terms and make itself rich while the State sits back and applauds its initiative?

I am not sure that SAC.to does have surface rights at its Malku Khota concession.

Beware.

National Semi Attempts to Fix Solar Shading Problem

Tue, 24 Feb 2009 19:10:55 -0500

SHADING, WOT SHADING
(Read to end)

Sustainable Energy Technologies Ltd.
TSX VENTURE: STG

Other Recent News

January 29, 2009
Sustainable Energy Technologies Ltd.: September 30, 2008 Financial and Operating Results
CALGARY, ALBERTA--(Marketwire - Jan. 29, 2009) - Sustainable Energy Technologies Ltd. (TSX VENTURE:STG) ("Sustainable" or the "Company") yesterday reported its operating and financial results for the year ending September 30, 2008.

The Consolidated Financial Statements and Management's Discussion and Analysis thereof can be found with the Company's public documents on SEDAR (sedar.com) and at the Company's website (sustainableenergy.com) under Investor/Financials/Fi... 2008.

Highlights

- Massive new thin film PV production capacity coming on line in 2009 is driving down solar panel prices in all markets; lower prices will drive inverter sales growth in 2009 - 2012; estimated $5 B/yr market by 2012;

- Sustainable's breakthrough "parallel" architecture enables lower cost thin film PV technologies to penetrate rooftop and building integrated solar applications;

- Industry recognition of power of parallel architecture to increase yields and reduce system design and installation costs leads to demonstration trials with leading thin film PV panel manufacturers;

- Gen II product line will be first to enable "parallel" architecture at industry's lowest cost/watt; product rollout scheduled for Q3 2009 for all major markets including Germany France Italy and the US;

- Strategic partnerships negotiated in last 200 days to roll out parallel architecture for thin film PV in Spanish test market, generating revenues and demonstrating value proposition to the world;

- Spain changes feed in tariff structure directing investment away from ground based system to rooftop and building integrated solar after September 30 2008;

- Spanish solar products market stalls in Q2, 2008 pending policy changes; revenues down $480,134 from 2007 as a result;

- 8 - 10 MW project pipeline with leading systems integrators in Greece will begin to generate product sales in 2009; nearly 2 year moratorium on feed in tariffs ends January 15, 2009;

2008 Operations Review

During 2008, our resources were devoted to developing markets for our products, positioning our products and technologies for the emerging thin film PV capacity coming on line during 2009, and developing our second generation ("Gen II") product line which enable the parallel architecture for thin film PV systems. These efforts are paying dividends.

In the past 200 days, we have

- Entered into an agreement with Copcisa S.A., one of Spain's largest construction companies to develop and market thin film bundles consisting of PV modules our inverter and wiring harnesses to the Spanish building trades. The agreement contemplates an exclusive joint venture for Spain.

- Entered into a co-marketing agreement with Solaer S.A., a leading project developer to roll out and demonstrate thin film PV to the Spanish market using our parallel architecture. The agreement is important in two respects: it is with our first customer validating our product; and it will give us hands on experience in installer preferences in this market

- Scheduled trials to demonstrate the value proposition and secure endorsement of our platform for use with the leading thin film PV modules in the market. We have trials scheduled with PV module manufacturers and systems integrators in Germany, Spain, Greece, Canada and Taiwan.

- Entered into a co-marketing agreement Ingeteam S.A. with one of the world's largest suppliers of solar inverters for thin film and solar concentrator applications;

- Entered into a private labeling agreement Salicru S.A. with one of Europe's leading power electronics companies securing a lead order for Gen II units valued at approximately $6.2 million targeting the Spanish thin film rooftop market; and

- Contracted with Salicru to outsource a customer service and product support base for Southern Europe.

We have completed the first production prototypes for the Gen II version of our inverter and expect to begin the CE and UL permitting processes during fiscal Q2. We are targeting fiscal Q3 for trial production runs with commercial production by the end of fiscal Q3 2009 or early fiscal Q4.

Gen II uses the same basic power electronics circuits and software platform proven in the SUNERGY 5 at a much lower cost, and with better performance and reliability. Our low voltage technology enables us to achieve what we believe will be among the lowest manufactured cost in the industry.

Our product strategy is to outsource all manufacturing which is made possible because of the simplicity of the design and the modular platform approach. To our knowledge, we are the only company in the industry that outsources manufacturing. Our product design also enables a very low cost product support structure.

Most of our selling activities were focused on Spain and Greece since the SUNERGY 5 product is not certified for sale in Germany, Italy or the US. During Q2, Spain announced a change its feed in tariff structure for projects completed after September 30, 2008 without specifying the new feed in tariff structure. The result was a virtual suspension of solar product sales (modules and inverters) for the balance of the year, except for sales to projects already in the pipeline for commissioning before September 30, 2008.

At the same time, a government imposed moratorium on new solar projects in Greece had the same result with no product sales (modules and inverters) by any company including Sustainable in that market. Both situations have since changed to our benefit, but the result for Sustainable has been no sales in either of these markets since Q3, 2008 and revenues for the year were down $480,134 to $1,524,159 from $2,004,263 for 2007. Since the SUNERGY 5 inverter was not certified for sale in other markets we were unable to recover sales in other markets. Unlike the SUNERGY 5 inverter the new Gen II will be certified for all the world's major markets including the United States, Germany, France and Italy.

As a result of the Greek and Spanish announcements, we slowed production of the SUNERGY 5 inverters, until the situation is resolved. By year end we had 1,079 finished units in inventory with manufactured costs ranging from C$1,971 to C$1,395. We estimate the market value of these units to be between C$2,250 and C$2,500 per unit.

Spain has now revised its feed in tariff structure, signaling its intention that new investment in solar PV be directed to rooftop and building integrated systems, by changing the tariff structure to favor building based systems and allocating entitlements to the incentive pricing to such systems. The reduced tariffs have reduced investment yields dramatically, and the industry is turning to lower cost thin film PV in an attempt to increase yields.

Greece has now lifted the moratorium confirming its tariff structure. We continued to invest time and resources to develop a marketing infrastructure in Greece and we have contracted with 4 different systems integrators for distribution of our products. For the most part these are for projects where crystalline modules are specified. Based on partner forecasts of permitted projects pending approval, we have an 8 - 10 MW sales pipeline in Greece, the timing of which remains unsettled pending the pre-authorization process.

We have also begun developing similar sales partnerships in other countries in the region which have enacted feed in tariffs on entering the European Union and expected to see growth in sales from these markets during 2009.

About Sustainable Energy: Based in Calgary, Canada, Sustainable (sustainableenergy.com) designs, manufactures and distributes power inverters for grid-connected solar PV systems. Advanced power inverters are a critical enabler of all modern solar PV power systems converting the direct current ("DC") power output of the solar PV modules into the high quality alternating current ("AC") power required by the power grid. Advanced power inverters also optimize the performance of the solar PV modules and maintain the integrity and safety of the interconnection with the power grid.

Sustainable has developed and patented an inverter platform that is the first to enable a high efficiency "parallel" architecture for grid-connected solar PV systems at a cost per watt that the industry is looking for. A parallel architecture increases system yields by reducing the impact of partial shading on total system performance and eliminating mismatch losses from variances in orientation of the PV panels and from normal variances in manufacturing tolerances.

A parallel architecture eliminates the need for complex string calculations and enables much higher penetration of the available rooftop area, thereby expanding the range of sites where solar PV is economic.

Sustainable's inverter technologies are a breakthrough in inverter design and the subject of 9 patents issued by the US Patent Office with further patents pending.

Is the GLD ETF Really Worth Its Metal?

Fri, 20 Feb 2009 09:19:50 -0500

seekingalpha.com/artic...

The GLD prospectus is a steaming pile of legal loopholes. Only a lazy mutual fund manager or a brain-dead pension fund manager would touch this turkey.

It's also likely that retail investors, and their highly compensated advisors, are not even remotely aware of the astounding risks declared in the ignored GLD trust documents.

There are other GLD critics,
besides the Financial Foghorn here, who think that the gold ETF is untrustworthy.
Dave Kranzler, from whom much of this dissertation has been respectfully purloined, has obviously analyzed the prospectus carefully and found it wanting.

James Turk, a former money manager for the Saudi Arabian Central Bank, long time precious metals market analyst, and the founder of goldMoney.com, has been critical of GLD since it was proposed in 2004. And he recently noted that the August, 2008 GLD updated prospectus, on page 3, says: "Proceeds received by the Trust from the issuance and sale of Baskets consist of gold deposits and, possibly from time to time, cash."

A "gold deposit" is a word that has a precise meaning in the law, and is the exact opposite of "bailment".

A bailment is what happens when you give your car to valet parking. When you present the ticket, you get your very own car back.

With a "deposit," a bank gives you a certificate of deposit, a checking account statement, a savings book or some other evidence of its debt to you.
You are no longer entitled to get your very own dollars back, but have become a depositor and general creditor of the bank. Title/ownership has transferred from you to the bank, and the bank can do whatever it wants with your former dollars.

It is extremely unlikely that a highly paid passel of lawyers that worked over the GLD prospectus would offhandedly put in a word like "deposit" unless there was a good avoidance-of-liability reason to do so.
If physical gold were actually in the ETF, the above statement would have read: "Proceeds received by the Trust from the issuance and sale of share baskets consist of gold (or gold bailments) and, possibly from time to time, cash."

Turk's point, and Kranzler's reference, is that "gold" is one thing and a "gold deposit" is something entirely different. "Gold" is physical metal stored/bailed in a secure vault.

A "gold deposit" is a liability of a financial institution, and it's just another lousy paper gold IOU.

Ten Reasons to Avoid the Gold ETF

Wed, 18 Feb 2009 08:40:50 -0500

Jim Sinclair has been warning his followers about these very points.

Buy good Canadian Gold miners instead.

Why ETFs Pose a Threat to Mutual Funds

Sun, 15 Feb 2009 08:36:28 -0500

With reference to ETF's, read the small print very carefully.
I note that GLD does not state that it actually possesses gold,
I quote from Jim Sinclair...

ETF'S and paper Gold

I read an article last month reviewing ETF contractual documentation, a significant weakness was discovered in that provisions to audit the keepers contracted by the ETFs to store ''Gold'' were expressly excluded and that the ''Gold'' held need not necessarily be the Element Gold atomic number 79 on the periodic table.

One has to ask why an ETF would agree to such terms if it were not intentional to engineer a weak link in the audit trail apparently absolving the ETF's management of responsibility at this point. If ''Gold'' is in fact kept as paper then it would surely be in the interests of the keepers so as to profit at the time of redemption and to invest so as to drive the price of Gold down.

British Pound Crumbles

Wed, 21 Jan 2009 17:58:39 -0500

Next to be shorted will be the Euro, Germany is weak, Spain, Greece and Italy are without substance.
The US $ is heavily supported, that is while the helicopters are manuring greenbacks but as reality bites and Joe buys gold to protect what little he has left and the US $ ceases to be the backbone World currency, it will become unsupportable.

The Truth About Today's Gold Market

Fri, 16 Jan 2009 15:21:46 -0500

Seven pure play gold producers (miners) were heavily shorted today.
The writing is on the wall, expect gold value increase.

How Did Madoff Fool the SEC?

Tue, 06 Jan 2009 09:02:56 -0500

The shambles continues, a case of buyer beware across the spectrum of USA and Canadian shares.
Is there anyone out there NOT involved in nefarious dealings?

Gold: Recycling Threatens Demand-Supply Equation

Mon, 05 Jan 2009 12:55:08 -0500

A good article, but we now live in extreme times so that history is not as relevent as previous, accepting the fact that the price of gold has been seriously manipulated and that the COMEX will be unable to meet 90% of it's commitments, as well as the vast derivative bill yet to come home to roost, let alone the true value of the US$ being 30 cents at best, we will see interesting times ahead for gold,

Weak British Pound Could Boost U.K. Economy

Fri, 02 Jan 2009 11:56:01 -0500

In theory you are probably correct but the main factor of manipulation has not been taken into account.
Shorting the pound is easier than shorting the euro, even with weak partners like Spain, Italy and Greece who have yet to meet their fiscal commitments.

Five Sophisticated Gold and Silver Investment Strategies for 2009

Sun, 28 Dec 2008 13:24:49 -0500

Chaps, if you are buying gold/silver, remember to buy the real stuff, not pieces of paper offering; or not; delivery at some future indeterminate date, i.e. AVOID COMEX

U.K. Economic Forecast Is Chilling

Sat, 27 Dec 2008 08:53:48 -0500

The pound of course, is a far easier currency to manipulate than say the euro, but I expect it's day will come probably after the US$ loses 50% of it's current value and Gold/Silver reach new highs.
It is the same old gang, up to their usual tricks,
Neither the Chancellor of the Exchequer or the Prime Minister are capable of breaking away from the lemming mentality and sorting the basics out.

Deepwater Drillers: Not in a Very Deep Hole

Sat, 27 Dec 2008 08:10:57 -0500

An interesting article, not my field, I expect that an investigation concerning all gamuts of the spectrum would need to be undertaken.

U.S. Dollar: The Next Bubble to Pop

Mon, 08 Dec 2008 13:48:59 -0500

Excellent article, the US$ is heavily manipulated otherwise it would be less than half it's current value.
But what is the US government going to do about Gold?
Are they going to continue to hold the price down, force the sale of gold from the public to the government and having repriced Gold; deals with all governments; use Gold to pay off the horrendous debts?

Entrepreneur Journeys: A Review

Sat, 06 Dec 2008 14:33:05 -0500

Interesting article, obviously a 'must' read.

Credit Markets and the Price of Gold

Sun, 16 Nov 2008 18:39:17 -0500

crowlee.proboards76.co...

Adam, posted you here, astute, yet the worm may turn!

Credit Markets and the Price of Gold

Sun, 16 Nov 2008 18:10:16 -0500

bowman711,
We are impressed with your arguments, can you visit us
crowlee.proboards76.co.../
I have posted some of your work here, my respects, Clavis
PS Apologises to Adam but I am sure that he will not mind.

'High Volatility', 'Systemic Risk', 'Inconsistent Alpha': The New Vocabulary Of Long-Only Investing

Tue, 14 Oct 2008 18:35:32 -0400

We have an interesting situation at Noront Resources (TSX:NOT) where Rosseau are attempting to ursurp the status quo armed with personnnel from the Aurelian debacle.
The proxy can but be called immature and certainly the ex-directors of Aurelian; four in number who filled their pockets to the detriment of the retail shareholders; would be out of their depth when coming up against real miners.
Let me quote a critique I found on the Noront board at agoracom.com by hoov, but before doing so, let me ask you one question, 'how desperate are Rosseau?'
Subject: Rosseau Circular....a tissue of lies, half-truths, and deception. What a coincidence! After months of recurrent attacks by bashers, and in the midst of the most recent one, the short-selling market manipulating monster finally reveals itself to us. And this circular is more of the same......lies, half-truths, rumours, and deception, intended to instill shareholder fear, and reduce confidence in management of Noront. It is far from being a sober, dispassionate analysis. I've read the Rosseau Circular through a number of times now, and I'd like to isolate and analyze the points used to criticize Noront management.1. First, they allege that Noront has squandered opportunities since August 2007, when Eagle 1 took our SP to lofty heights (7.42), and thereafter imply that management is solely responsible for the current SP.I should think, first off, that if those "squandered opportunities" exist, that they should be easily defined and described. And yet, no specific examples are presented. Not one. Instead, I can think of some fine "opportunities" that Noront has created in the meantime, called Eagle 2, Blackbirds 1 & 2, At-12. And, the resource at Eagle 1 has been defined by 43-101. I think that's pretty good for one year's progress.Secondly, I can think of external forces at play which have influenced our SP. We've talked about them incessantly over many months. Things like something called a credit crisis, worldwide recession, market fear/capitulation, market manipulation (especially (naked) short selling......what these Rosseau boys do). I would be hard-pressed to find any cause that can attribute any of this to Noront management.....and Rosseau doesn't even try.2. (a) Noront *recently* wasted 15 million on Windfall. Excuse me?Where on Earth did that bloated figure come from? Given the time frame alluded to in the prior allegation (i.e. after August 2007), the idea of recent expenditures of anything more than a fraction of that amount is absurd. Noront raised 15 million in a private placement about two years ago, to fund the Windfall ramp and bulk sampling program. By not acknowledging this, Rosseau intentionally creates a false impression.Windfall, and the commitment to drive a ramp towards the gold vein deposit, entirely precedes the ROF discoveries, and historic spending (that's where 15 mil figure comes from) should not be confounded with current budgets. The decision to drive a ramp towards the gold was entirely prudent, given then current estimates that surface drilling to define the deposits would cost a similar amount, would not define grade with certainty (we're talking vein gold, here), and would likely end up requiring a ramp anyway.They further allege that funds raised earlier this year have been diverted from the ROF to Windfall, via "unduly promoting" the McFauld's discoveries, and then diverting "substantial" funds to Windfall. That is an outright falsehood. Noront has been absolutely forthright about its cash budgets with respect to all its properties. Funds were fully raised and committed to Windfall prior to February 2008, when the PP for McFauld's exploration was done. Furthermore, investments in Noront are not specific to any one property. To confound investor expectation with management practise is utterly absurd.And who said the investment at Windfall was *wasted*????? I saw some very nice photographs of museum-quality gold ore coming out of that ramp. And from a location not previously known to host gold. It is, at a very minimum, premature to call the investment wasted. Rosseau elsewhere criticizes Noront for failing to proceed from an exploration company towards being a mining company, and yet they would negate and dismiss clear efforts to do so at Windfall? Talk about sophistry.2. (b) ....and spent $1 mill on other properties, diverting cash, human resources and focus.In all but a couple of cases, once again these properties have been in Noront's portfolio for a long time. JV partners are operators at many of them, so they require little investment or oversight. Others have had so little attention paid to them that nothing whatsoever has been spent on them in recent times. In fact, recent MD & A reports have made clear that management is not diverting money and resources away from the ROF. Instead, look at how many new staff had been added! Since 2007, office staff has more than doubled, and expert management has been added a number of times. Whatever management these other properties demanded, those efforts are surely much *diluted* now, compared to previous years.And just from a more exploration-based philosophical perspective, how is it that you can criticize a mineral exploration company for thoroughly investigating any opportunities which have come its way? What else is it that you would expect them to do? Walk away?Noront management has clearly expressed its intention of separating the funding and management of the ROF from its other assets. All this would do, IMHO, is to make formal what is surely happening in practise already.3. (a) Alleging that the 11 Ring of Fire JV projects are drains and distractions on administrative and operating resources.Poppycock! Those are claims Noront chose for immediate mineral investigation. Of all the thousands of claim blocks under Noront's control, they entered into agreements to push specific clusters of blocks forward, and obtained other people's investments of resources to pay for it all. These are Noront's choices of targets. (I'm certain they didn't throw darts at a map!) They would have been chosen for drilling anyway. But someone else is paying for it. There is no change in administration, but there is a *reduction* in operational expenditure.In addition, these agreements have contractural time-lines. They force directed investment (read drilling) in a timely way. If the drills don't turn, or funding doesn't come, the JV collapses, and no dilution of interest occurs. With Noront's immense land holdings, getting those drills turning is the priority. When they say "take(ing) valuable manpower and scarce drills away from Noront’s 100%-owned high priority prospects".....what is the allegation really suggesting? That somehow Rosseau already knows which properties to drill? That they know the rest of the ROF is not worth exploring? I see no evidence that Noront has misused its drills or manpower. Think Blackbird.Elsewhere, Rosseau reveals their *real* concern about the JVs.....3. (b) The re-structuring of ownership interests makes Noront a less attractive target for a major.Now we're looking at strategy. The quick flip, vs. long-term investment via e.g. buy-in, other JVs, or self-development.It is my opinion, based on what Rosseau presents here, and from its historical investments, that what they want to do is break up Noront, and flip it as quickly as they can. In fact, I suspect Rosseau is acting as a proxy for a major. When they say they want to improve shareholder value, I believe they have only their own interests at heart. In and out as quickly as they can, so they can go on to short and raid some other victim.In contrast, Noront has always taken the long view. From the moment the Eagle 1 resource was defined, they spoke of mining it and selling the ore. In fact, they had their hands slapped by the TSX for suggesting feasibility issues had been addressed according to OSC regulations. When chromite was hit, again, talk was immediately about the value of the ore on the market, not in situ. No talk about getting maybe 10% for in situ, but instead, full market value based on mining, concentrating, and shipping ore.For this issue, it comes down to personal decisions, but since this is my analysis, I'm going to supply my opinion. IMHO, far greater value accrues to Noront from taking the long view, mining and shipping ore, or even from nothing more than NSRs, than from breaking up the company and flipping its still poorly defined assets. Noront is well on the way to turning blue sky into ore in the ground, and with each increment, the long term value increases. With a sell-out, no further increments are possible.3. (c) squandering of "leadership position" via JVs, rather than accretion and consolidation.Give me a break. Noront continues to stake land, both on its own, and as a part of a staking syndicate. Noront has expressly stated that it desires to control 80% of the ROF.One does not accomplish such a task overnight. IMHO, the opportunities to take over weaker stakeholders are only just now presenting themselves. It's no secret that funding for juniors is going to be a critical issue with respect to their viability. We'll just have to see how things shake out.But, more directly to the point raised, just how is new management going to accomplish this? Massive dilution of existing shareholder value? You can be sure these vultures would profit more from that than we would. Diversion of scarce resources from drilling? No, wait, that's a criticism of existing management.Bottom line is Rosseau is suggesting something Noront has already said they'd do. Again, it comes down to a fast flip vs. long-term accretion of value.4. (a) replacing Richard.I don't know.....does he need replacing? He's certainly attracted some amazing talent to the company. That's a testament to the man. He's got experts with respect to take-overs/mergers, TSX listings, finance, geology, and a host of top-notch consultants.Rosseau doesn't even suggest a man to replace him. They apparently have no faith in their ex-Aurelian president.4. (b) listing on TSXWe've been talking about that for a long time. Noront cannot talk about it. It's forbidden. Rosseau isn't, and they're taking advantage of that.Lately, people have noted a subtle change in content from Noront about this issue. Whereas before they would say they're not currently working on it, now they restrict themselves to "no comment".....as required of them, if they are in fact proceeding with such a move.It takes time, and we'll know about it when it happens. IMHO, it's already not far off. Rosseau offers nothing here, either.4. (c) spin-off of non-core assetsManagement has expressly stated a number of times that this will happen. We've also discussed how complicated it might be, with Windfall still not subject to formal resource estimates, and implications with respect to possible TSX listing. These two issues may be intertwined in regulatory red-tape.Richard's a lawyer, and he's got people with direct experience in getting this done. It takes time, and he can't talk about it until it's all sorted out. Rosseau is again just blowing smoke. They'd be in the same position as existing management finds themselves. When Rosseau says they see no evidence of progress, that's pure sophistry once again. These are all or nothing propositions. There can be no progress reports.5. Exaggeration and undue promotion by Richard.To support this, Rosseau provides only a second-hand anecdotal report from the Financial Post, that the geology was similar to Voisey's Bay, and that "it could even be bigger". Without any context, we cannot even know Richard's true intent with the statement. Moreover, Noront's grades are higher than Voisey's, and the geology strongly suggests that there is more nickel out there. That it hasn't yet been found doesn't disprove the fact that Richard may be right.....it could be bigger.I recall suggestions that Noront might have 15-30 million tonnes of chromite. Funny, now I'm hearing there might be 100 million, with deposits open on strike. Today, on the FWR hub, I hear 150 million.Rumours always attach to exploration plays. If you want proven reserves, buy some Billiton. But don't criticize a man for being excited about his exploration plays.More smoke, IMHO.Frankly, I haven't been persuaded that any one argument they've raised has validity, let alone the lot of them. However, let's move on to consider the nominees for board positions.Let's see, four of them come from Aurelian. Hmmmm, seems they're out of work right now, after selling out their company for a 60% premium over a massively depressed SP. I guess I know what they're good at.Another guy is a director from Temex, which seems to be involved in a large number of JVs in the ROF. Some of them with Noront. Now that would be a change, wouldn't it?And a couple of others who are willing to resign if more qualified people can be found.Honestly, not one of these nominees holds a candle to the men we've already got. They're openly seeking a couple of better qualified directors. And they don't have a president in mind, to give life to their "vision". And this is somehow an improvement?Bottom line, the choice seems to be between breaking up Noront and flipping the ROF claims, or taking the longer road to higher values. Rosseau claims to be willing to do things that existing management has already dedicated themselves to accomplishing, so what's new there? Apart from these "commitments", they offer nothing but platitudes.What's the damn rush? Rosseau is greedy. That's my analysis.

An Intriguing Junior Gold Opportunity in AuEx Ventures

Wed, 08 Oct 2008 08:15:47 -0400

Nice article, could have done with a bit more meat about AuEx.

New Short-Selling Regulations in Asia: Can American Investors Profit?

Tue, 07 Oct 2008 09:10:17 -0400

Mmmm, very interesting, never realised that there was no shorting in those markets.
Nothing wrong with shorting as a counter balance, naked shorters should have a lifetime ban imposed but I can see problems arising out of the leverage factor; should this be allowed; let alone the margin concept.
My conclusion is that less than 20% of persons using margin accounts; thus saving cash; understand that their shares are loaned out, possibly to be used against their current position and there is always the possibility of a margin call which equals pay up now or we sell a proportion of them to cover the call.

Alexco Turns a Corner on Development of Keno Hill Silver District

Tue, 07 Oct 2008 08:39:28 -0400

Probably a good move to get cash in hand; difficult times; the value in giving Silver Wheaton such an attractive 25% deal should show better ROI down the road and have quality business connections.

Chromium: More Than Fancy Trim

Fri, 19 Sep 2008 08:34:29 -0400

Very interesting article, given me my homework for the weekend!!!