MDMN - 2016-05-16 Weekly Discussion

I respect other peoples opinion no matter how aggravating sometimes it can become. I truly believe there will not be a TO not in the foreseeable future. One only needs to read the news releases by Auryn/Masglas and make an informed opinion on their own.

Does this release give any indication of a TO?

MASGLAS, a significant Medinah shareholder, will work in concert with Mr. Goodin to accomplish a comprehensive analysis of Medinah’s books and records to ensure the continued integrity of Medinah’s financial statements. During this process all of Medinah’s assets and liabilities will be scrutinized in detail. The goal of this effort is to improve the effectiveness with which Medinah communicates its results and financial condition to the investment community and the mining industry.

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[quote=“Baldy, post:1211, topic:1280”]
I totally agree that the leg needed to be amputated to save the patient but the cash component of the option was 7-8 cents. … Unfortunately, we also need to adjust to the negative developments (necessary or not) as they evolve.
[/quote]Yes, and over the next year, all $30M (or more) anticipated from early exploitation is to go to expenses and exploration, not dividends. Once there is a revenue stream and permitting for open pit mining on the Fortuna and Merlin 1-3 do you think a TO of $225M (cash) will actually be offered? I would think further accelerated exploitation and exploration defining the value of what is contained in the claims is more likely. Pay as you go approach makes more sense and reduces risk. Perhaps a partial sell off of the percentage interest in AURYN earlier on, once there is positive cash flow, would be used to pay out a dividend to MDMN shareholders. We’ll have to wait at least until the SHM to see what unfolds at the AURYN presentation and the agenda put forth to shareholders.

[quote=“Baldy, post:1206, topic:1280”]
No doubt that there’s a lot more room for higher prices if people are willing to wait 3-4 years at which point the POG will probably closer to $2500/oz. IMO.
[/quote]There are shareholders here that are not as anxious as you seem to be to exit at the earliest possible time. You seem to be defining a reasonable period of time as a year to 18 months. AURYN has only been grinding it’s gears on this for 2 years. What came before that time is disappointing, but largely irrelevant now as the project moves forward on multiple fronts.

Good point Hulkster. An audit of MDMN’s balance sheet clearly suggest a TO is more likely. Understanding the outstanding share count, legitimacy of accrued liabilities, and the potential to return some shares to the treasury would be a necessary step before acquiring the company.

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Dunno. AMC will have the best insight into the potential value of the mountain so they would be in a good position to offer $225M even if the announced results didn’t support that valuation. I can’t see any scenario where AMC is going to buy back partial ownership (from the 25%) to give MDMN an opportunity for dividends or a buyback. Instead AMC would simply buy shares more aggressively in the open market to take advantage of any disconnect and increase their interest in the public vehicle. They won’t be agreeable to anything that benefits MDMN shareholders over their own. If it only cost them $10M to increase their ownership from 35% to 70%, as an example, it makes sense for them to pursue that option at the appropriate time. Any suggestion that they would instead give that $10M to MDMN so that their current 35% would go up in value, flies the face of very basic, risk/reward analysis.

This is just my best guess as how things unfold. I have no urgency to bail on this investment. It’s in the drawer. The speculation on timelines has a lot more to do with how long AMC is going to tolerate having a minority holder (MDMN) tied to their efforts and capex. There will come a point where acquiring the 30% (MDMN & CDCH) will make sense from a cost of capital standpoint. The quicker they advance the mountain, the quicker they will look to own the asset outright.

I appreciate that my opinion may not be popular with some of the “lottery ticket crowd” but, as is evident by the share price, MDMN has gone from a “penny story stock” to a legitimate mining play that requires a lot more than “fluff/Lespeak” to regain momentum. It’s important for people to start weighing traditional fundamental factors and realistic/comparative valuations to better understand this investment’s potential.

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You never give up do you? We wait and see .

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“Yes, and over the next year, all $30M (or more) anticipated from early exploitation is to go to expenses and exploration, not dividends.”

I wish whoever keeps making statements like this would stop.

It is complete baloney from start to finish. It has no basis in fact. It is NOT what Auryn is going to do.

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[quote=“Baldy, post:1216, topic:1280”]
I can’t see any scenario where AMC is going to buy back partial ownership (from the 25%) to give MDMN an opportunity for dividends or a buyback. Instead AMC would simply buy shares more aggressively in the open market to take advantage of any disconnect and increase their interest in the public vehicle.
[/quote]As far as I know, Medinah has a share certificate representing it’s percentage ownership in AURYN. Are you 100% sure part of the shares in AURYN (a private company) could not be sold off for cash to someone other than AURYN or MASGLAS? I agree with the new BOD this is not the most likely course, but there is a fiduciary responsibility towards Medinah’s shareholders that has not been represented for far too many years and needs consideration. A part of any sale of this ownership would infuse MASGLAS with additional cash as well as Medinah. Both companies could benefit immediately and longer term.

[quote=“MikeGold, post:1218, topic:1280”]
I wish whoever keeps making statements like this would stop.

It is complete baloney from start to finish.
[/quote]I’ll concede it’s more of an assumption based on a news release and what I believe Baldy’s firm position is on the matter. I could have phrased it better.

Cash flow generated from production at the Caren Mine project will provide the funding required for the aggressive exploration program at the high-potential porphyry mineralization at the Pegaso Nero target, as well as further drilling at the Merlin-Fortuna targets.

AMC is pleased to announce that Mr. Gary Goodin has been appointed director, effective immediately, to the AURYN Mining Chile SpA board of directors.

Whatever the cashflow is, not all of it will be going towards the PN exploration and drilling. I’m open to some very pleasant surprises in the upcoming year or two as things unfold. The SHM is something that I’m looking forward to. I don’t think many shareholders will be disappointed at the direction that the company is taking now that AURYN is making decisions on how and what gets prioritization. I’m not of the opinion we’ll see a TO in the next year or 18 months, in case I didn’t make that clear.

Silver just went through $20 / Oz.

One would think it is due for a short term pullback pretty soon.

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Went up above $21, but has fallen back to $20.35 as of this late hour

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Why is PN so important to verify as a priority now?

UPDATE 1-China targets $300 bln power grid spend over 2015-20 - report

http://www.reuters.com/article/china-power-transmission-idUSL4N1171UP20150901
The 2015-2020 investment is likely to provide a boost for sectors like copper. Demand from the power sector accounted for nearly half of China’s estimated 8.7 million tonnes of refined copper consumption last year.

The plan was aimed at increasing the reliability of power transmission, which would favour copper-based cables over cheaper alternative aluminium-based cables, said Yang Changhua, senior analyst at state-backed research firm Antaike.

AURYN/MASGLAS plans for near term and long term success. What would a 5% or 10% stake in AURYN be worth to a major copper producer in the next couple of years? Could Medinah sell off a portion of it’s shares in AURYN for cash to CODELCO (or another producer)?

Codelco now mines copper for $1.40 a pound

Aug. 28, 2015
Codelco is in the midst of executing a $25 billion investment plan aimed to expand its aging mines and search for new high-grade deposits.
Codelco now mines copper for $1.40 a pound - MINING.COM

Eyes are clearly on long term success.

They have the option to acquire 5% for 50 mil. maybe they can sell that option for more

and still keep the 25%.

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The Mining Play (stats)


Throughout the years the best thing Medinah had going for it (other than the ADL) was its shareholder community. We have different levels of experience and understanding in the markets. We don’t all see things the same way or want the same things. Some of us think others of us are nuts, naive, nasty, etc. But at the end of the day we have all put our money on the table and are an incredibly active, well connected, and loyal group. I don’t know of many other investments that have such a diverse yet united group of investors.

It’s too bad the relationship with management was often antagonistic, but perhaps that is what caused us to connect. Misery loves company. :wink:

To give you an idea of what I’m talking about ask yourselves how many stocks have their own discussion forum outside of things like IHUB, YAHOO Finance, or sites like that? We really could have helped the cause if they allowed us to. Hopefully in the future that changes as well.

Although the site activity has decreased in recent weeks, it’s still very active. Here are some stats for you.

####Monthly from Google Analytics for theminingplay.com

####From The Mining Play Software

About 25 posts per day and 250 site visits a day. Average session of 1:20 per day!!! Less than 1% bounce rate. Investors from all over the world (though mostly US / Canada.) A recent census that had well over 100 responding individuals or groups who were willing to share their stockholding totals.

Your concern for your investment in MDMN is AMAZING!

The BOD and management need to show the same !!!

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In the middle!

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It’s clear we need to start a Spanish version of the MiningPlay for the potential investors in Chile and Peru.

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This company has just started production notice in bold how many tones/day to produce an X amount of gold/oz. Just by reading this makes me smile to know that we have an amazing property we have!!

At the end of last month, Goldsource Mines (TSX.V: GXS) announced another major milestone, achieving commercial gold production at its Eagle Mountain project in Guyana, a small country in South America.

In the last 30 days, the company processed on average about 900 tonnes of ore with a concentrate recovery rate of about 50%. In an interview with Kitco News, Ioannis Tsitos, president of Goldsource, said that they achieved their commercial production goal with only one shift per day. He added that they will soon be adding a second overnight shift to increase production.

“We have managed to achieve commercial production with ease,” he said. “I want to personally thank all of our employees and contractors for their dedication and hard work, ensuring the successful transition from commissioning to commercial production with a stellar safety record.”

The company is planning to increase its throughput to about 1,800 tonnes per day with a target to produce 3,600 ounces of gold in 2016.

Although the company’s first commercial production is nothing to get too excited about, Tsitos added that this is just the first step to its ultimate production goal of about 35,000 gold tonnes within the next three to four years.

Continue here . . .