Medinah’s Annual Report: https://backend.otcmarkets.com/otcapi/company/financial-report/190937/content
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At least MDMN puts out a income statement and balance sheet while CDCH puts out no financials at all!
A few nuggets:
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Auryn shares to be converted to CDCH shares in Q2 2018 (so still progressing …)
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MDMN position in Auryn reduced to 23.559% to “fully satisfy” the 2017 cash-call loan with Auryn in Q4 2017. Oddly, the $1.6M in debt still shows up on the balance sheet as of Dec 31, 2017. So perhaps that means the actual execution of that step occured after Dec 31?
CDCH financials still MIA
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Also it looks like they expect to get Les’ shares in Q2 in relation to the settlement.
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Also interesting JJ and some others are still converting preferred into common stock
There are no preferred shares left showing on the balance sheet as of 12/31 so that’s something
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Just hope it stays that way!
I think it becomes pretty clear why mining progress has slowed / stopped at this point in light of the entire Auryn cash-call leads to loan leads to reduction in MDMN ownership in Auryn sequence of events.
Whether Auryn has money available easily or not, any additional development costs on the mountain leads to more cash calls by Auryn because MDMN is liable for 23.559% of the investment. MDMN has only a little over $2K cash on their balance sheet. If it costs millions, maybe $10M or $20M to put the Caren into production, a 23.559% obligation wipes out MDMN. So either major dilution commences again or MDMN just disappears. Recall the 7.5% of Masglas MDMN ownership when considering this.
So by not spending anything MDMN is preserved which enables the CDCH conversion and distribution of CDCH shares to MDMN shareholders after which MDMN will probably disappear and things can potentially progress on the mountain again.
The next decisive question becomes how will CDCH be funded once all this conversion and settlement stuff takes place and everyone is an owner in CDCH? When that question is answered we will have a much better view of the future
***** Author Remark:** this paragraphs is inaccurate. See Karl’s correction below
Note 4 says CDCH shares will be converted to Medinah’s name in Q2. End of Q2 is June 30 so less than 2 1/2 months from now. Also the next mining season will be approaching by that point at roughly 2 more months after that. So funding questions for the next season should be clarified by that time, if they are going to be.
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I believe this is in reference only to CDCH shares that were hand over to MDMN in the Les Price settlement!
I think you’re right. So that leaves the timeline more in question. 2018 looks like the year of completing the cleanup process
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Yes it will be great once that process is done, just disappointed that CDCH did not put out real YE financials with a cashflow, income, and balance sheet statement. Hard to determined what we own until that is put out.
In the annual report it says Mr. Volante(attorney) is the President of Ayurn Mining Chile S.A…I did not know this
@cornhuskergold, Wish I could give you 10 likes! Thanks for shedding some light and bringing some reason back here.
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Amended financials posted:
https://backend.otcmarkets.com/otcapi/company/financial-report/190942/content
They removed the Auryn loan from the balance sheet as it was settled by returning a portion of the Auryn shares in Q4 2017 as I noted this morning.
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This “cleanup process” is taking longer than the company anticipated. Under the Business Operations section in Q3 (ending September 30, 2017) it was stated:
Through a settlement with Leslie Price, Medinah will own an additional 1,700,000 shares of AMNP and 19,550,000 shares of CDCH which are expected to be converted to Medinah’s name in the Q4 2017.
All “things Les” that remain dangling need to be cleaned up. It appears the Les cleanup still has some lingering effects. I had thought this may be one of the reasons for the late Annual for MDMN and the missing financials for Cerro. Let’s see if the “Les shares” are cleaned up and reported in the June 30 Q2. Things are moving slowly forward.
The best news in the Annual Report is that the $1.6M loan has been satisfied in full. CDCH shares held by AURYN, even after the eventual transfer to Medinah, will no longer be held as collateral. This would have been very burdensome with the rest of the loan term which thankfully, no longer applies. Had the loan remained in effect, “shares held as collateral become publicly traded, the loan will convert to an interest only balloon note with a four‐year term and a simple interest rate of 4% annually.”
This would have prevented CDCH shares held by Medinah from being distributed to individual shareholder accounts. Now, with the loan satisfied, the way forward has been cleared for MDMN shareholders to hold CDCH shares in their individual brokerage accounts. A declaration date for a dividend announcement and a NOBO list ordered, followed with an ex-dividend date would allow MDMN shares to be converted to individual shareholder’s accounts as a dividend of CDCH shares. A direct ownership in AURYN would result after the next step - the share reorganization and name change into the "new AURYN’ named stock that is freely trading. This all depends on production ramping up during the next mining season.
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Hmm…few little tidbits in the financials but we still don’t know what is going on at the Alto.
Trying to put all of this together, I will speculate that Auryn mothballed the Alto in 2017 and have sent their exploration talent to explore the other properties owned by Masglas while they waited for the conversion from private to public to take place. They put their efforts on the other properties to get some exploring in prior signing a JV for all including the Alto. (The Alto being the only property to have sufficient geologic evidence for a good JV already.) Perhaps the JV partner required that the Alto ownership be all sorted out prior to concluding a JV? The complete lack of any activity on the mountain in 2017 begs for an explanation. Waiting on a JV to conclude is a reasonable explanation for that. It would explain the complete lack of activity, the near complete lack of promotion but also the indications that Auryn did recently hire a number of people last Fall, did go to the PDAC conference and did purportedly pay the taxes which suggests they aren’t going anywhere and not ready to just give up.
Regarding the Caren, based on the early December photos of the Caren mine and the appearance of the crew quarters at the LDM, I would further speculate that the Caren got also mothballed for reasons unknown. This is interesting since as late of October Auryn indicated that full production could start in November. One possibility is that the project to install chimneys or other upgrades to satisfy the local mining code also proved to be too expensive to move forward at that time. Some new block of significant money is probably needed to start full production which they may be waiting on. (I think Cerro/Auryn has all their shares outstanding so they would likely need a loan to get things started.
Rather tired of having to try speculate on what is going on instead of Auryn just sparing me the bother by just telling us what is going on!
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We are so in the DARK I almost called LES to see whats up…Things are that bad
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Don’t do it Geoly. Les tries to call himself because he doesn’t even know whats up with himself. LOL.
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Still waiting Córdoba
https://theminingplay.com/uploads/db1184/original/2X/0/060427921e96abb10c771dbb58401ebffd37a105.JPG
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