Just Another Day in the Corrupt Canadian Market


This morning Imperial Metals (III.to) announced some seriously crappy news (for its shareholders anyway), with the NR including such gems as…

“…second quarter production results from Red Chris were 15.4 million pounds of copper and 6,159 ounces of gold. These results were weaker than expected and similar to the production levels achieved in the first quarter of the year. Copper recovery continues to be lower than planned and even though higher grades of ore are scheduled to be mined in the second half of the year, the Company is unlikely to meet the lower end of its 2017 targeted copper production level of 85 million pounds of copper.”

…and this extra special bit…

“As a result of the lower than expected production in the first half of 2017, the Company will not meet certain of the financial covenants under its Bank Senior Credit Facility.”

…along with other things of nasty badness. As you’d expect, III.to dumped heavily on the news today, down 24.6% to finish at $3.09. Thing is, it would seem a favoured few had prior knowledge of the bad news:

The trading action yesterday Wednesday, with III.to down nearly 10% on 5X average volumes on no news whatsoever, would ring alarm bells in any regulatory authority worth its salt. Sadly this action happened in Canada where the people in charge of the show are worth less than a bag of bear scat.

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