Tuesday, June 10, 2014

IKN spreads the love for Rio Alto

IKN - I love Rio Alto so much that I've now made it all sticky and gross. Wherein Otto asks you to join him for some sloppy seconds from a subscriber-only bulletin:

By way of a very quick resume, on Monday i spent two hours with the RIO.to CEO and COO in Lima. Then unbeknown to them and anyone else, got on a plane and a couple of buses for an uninvited site trip to Cajabamba, in the Cajamarca region of Peru, to check out the Sulliden project for myself as well as discuss the project with politicos in town. I'm still in Cajabamba this morning and one meeting left in town this morning before heading out, but it's very unlikely indeed to change today's call.

I've met the people i wanted to meet in Cajabmaba and i've seen 98% of the things to see at Shahuindo without being invited on site (a near-arrest stopped me from seeing the last 2%, i'll tell you about that Sunday, all good fun though). You'll get a full report and photoshow in Sunday's edition of the Weekly, but the bottom line is that Shahuindo is in a much better political and community risk position than i'd previously assumed. I was wrong about this project and it's taken the takeover situation for me to shake down my assumptions, but now that i have and i've seen and heard the situation here, this project is one that's going to happen.

So when I said earlier today that I was lightening up on my DM positions for a (erp) junior miner, this is the junior miner I was referring to, and it's all because of IKN. Far as I'm concerned, there was a completely logical argument to be made for dumping Rio from $5 down to $2 - whether or not you agreed with it, it was still perfectly logical.

But the argument is negated if RIO buys SUE, and so $2 RIO is very obviously a bullshit price again, and I'm betting the big houses are all cluing in to this right now, and so I'm now a happy buyer.