It seems to me that they could be considering more than one possibility.
JV the whole thing?
Sell out?
We should all keep in mind that Mauricio has a horse in our race too, as he put $Millions into buying MDMN stock. I don’t think he really wants to LOSE on the transaction. So, I believe he will take actions that will help him make a profit. But, let’s say for the sake of argument that he decides he needs money and will be happy breaking even - and that his cost per share was 5 cents. Maybe we can hope to get out of this at 5 cents?
Maybe - I think the rumored knowledge is that would make a nice profit for Mauricio, and we’re riding his coat tails at this point. Personally, I think one day we will wake up and it will all be done.
A small milestone just a little while ago. Someone wanted about 5k shares and
paid $0.60 a share for them. Prior small buys were made around $0.40-0.45. Of course
immediately thereafter, a market maker took it down to $0.32 on a tiny “trade”. Something
appears in the works.
Someone has been loading up on Aumc for the last month. I sure hope something is in the works. Gold getting closer to $2100 might be lighting fires under their asses to get this moving. I sure would
Looks to me this is just a thinly-traded stock trading as normal - probably some small fish looking to get in on the anticipated action. I can’t see the names of the traders (I don’t have Level II), so you might have better visibility than me.
However, short lived to many people want out and anything over .002 without news seems to be an exit point. If any news comes out there would be a nice spike but before then we just sit here.
Keep in mind, MDMN’s share price is completely irrelevant unless you are trading it. At some point you will get shares in AUMC and at a fixed exchange. The only stock that matters, unless you are trading, is AUMC. If you have a massive loss in MDMN it could make sense to realize the loss and buy AUMC with the proceeds. I’m not offering investment advice, nor am I buying AUMC, but this would seem like a sensible strategy with the main risk being that AUMC is very thin. If you have the liquidity you could also buy AUMC and, once you have a large enough position, sell MDMN and take the loss (saves you 20-30% as a tax offset). Based on my conversations, there is nothing in the works as of yet but higher gold prices do seem to cure most ailments. Lot’s of opportunity cost if this is anything but a flyer as part of a more broad portfolio of PM stocks that would/should be up 2-5x this year.
I can’t believe with supposedly what is on the mountain and where gold is that these guys have not produced an update to their shareholders to inform them on current events. They were going to mine gold when gold was trading at 1200-1300 and something about the de-watering and chimneys that needed to be done, this was about 2 years ago.
“Based on my conversations, there is nothing in the works as of yet.” if this is the case and gold over 2,000 then Mr. Cordoba should move aside and let someone else do the job as it seems clearly he is doing f**ckall.
From previous times, it was my understanding that there would be no promotional efforts until Medinah was gone/forgotten as it was thought that it would be futile. I think nobody envisioned that the conversion would take so long.
Note that the exploration season restarts in about a month and the decline of the virus season should also start to occur in Chile. Seems like it would be the time to kick things off. Failure to have the conversion completed, failure to start some sort of exploration program/mine rehabilitation, failure to obtain some sort of financing, failure to start promotional efforts or otherwise take advantage of the price of gold this coming Spring in Chile will fully expose AUMC’s management for what it is.
Thanks Mike! Great way to sum it up! If this mining season is lost we should all be very concerned. Time for these guys to show up is now! No more excuses! The stars have aligned!
Your take on MDMN share price being irrelevant needs to be fleshed out a bit more. Yes you are correct in the sense that it converts to AUMC so ultimately the true value of what you own lies with the price of an AUMC share. Everyone needs to and should understand this.
Your point on the risk of selling your MDMN to get into AUMC right now being a reasonable tax strategy which includes the risk of taking on a wide bid/ask spread to get into AUMC deserves a bit more of a discussion in my opinion. You can get large sums of money into MDMN much easier because of that aforementioned risk of driving AUMC price up too high as you are buying in.
As far as getting a tax benefit by selling MDMN and turning around and buying AUMC, sure you realize an immediate tax loss now but you inherent the new lower cost basis in buying AUMC (assuming AUMC takes off and goes higher). You will owe more tax later on the cap gain. This really becomes a timing thing as far as taxation, not really a true dollar for dollar tax savings. It’s about realization of a loss versus carrying a higher cost basis forward and realizing the taxable benefit later.
If you simply stick with MDMN and wait for the conversion you are still getting that same cost basis as it converts into your new AUMC shares, it’s just you are deffering it rather than realizing it now. I don’t want folks here being misled that they are leaving 20%-30% tax advantage on the table. That is not true. I’m not saying you meant that, but I can see a layman misinterpretting that. If you want to make the point that a tax savings today is worth more than one tommorrow, thats a decent argument but it depends on someone’s portfolio and other positions. You can only take $3,000 loss forward so that point is not even that black and white. If you have enough cap gains to offset a realized loss right now, that’s a different story.
Keep in mind also the price of gold is thought to be going much higher, and with all of the U.S. helimoney being electronically printed these days, we’re very likely looking at a currency reset in the not too distant future. Maybe we’ll really get lucky and income taxes will go bye bye… along with the IRS.
Most people are down 95%+ on this investment. As I’ve been saying for the better part of two years you would be nuts not to either a) sell and buy back in 30 days…given what I’ve heard you won’t be missing out on anything over the next 30 days or b) flip flop into AUMC.
Your point is a fair one re: cost basis but realizing losses at this point is a far more predictable game vs. speculating on upside. Maurizio will either find a white knight who’s willing to finance a very small scale production in exchange for a royalty or there will be a massively diluted equity raise. All IMHO.
There’s no doubt the market has gotten exceptionally better but there still aren’t many players willing to speculate on undefined resources. Maybe that changes with $3000oz gold. So the wait shouldn’t be much more than 18 months!!
My best guess is that gold is now entering a corrective phase down to ~$1800oz. This would still be considered constructive. A 10-15% drawdown in gold would equate to a 20-30% drawdown in PM equities. We should then be entering the second bullish wave which should take us to $3000-$3500oz. IMO the current correction will be triggered by higher rates…initially negative for gold but, as these higher rates reach points where they begin to pop various bubbles across asset classes that have been reliant on zero interest rates…the market will enter a “risk off” trade and money will come pouring back to the under owned PM space.
Those who can avoid losses in the short-term pullback and take advantage of the second wave will emerge as heroes in this multi-year run to parabolically higher levels. Happy trading!
And what happens when the pullback is a mini one? then what? someone is stuck without their shares while the pm equities soar. Quite a few analysts are saying that the major correction happened and the next one will be very small .
As it pertains to the tax situation let me simplify with a straightforward example for the audience.
You own $100k of mdmn which you paid $700k for. You are sitting on a $600k unrealized loss at the moment. If you have no other non retirement investments or are not realizing any other cap gains this tax year on non retirement investments, selling a large chunk of your mdmn is NOT ADVISABLE. You will realize a $3k loss at most for tax purposes and the rest is carried forward. If you don’t sell, it’s carried forward anyway in the form of cost basis.
Your advice works in certain scenarios but it is still not a dollar for dollar tax savings. It’s about getting your tax savings SOONER. In the case I mentioned, you are only get $3k loss x tax rate‰ sooner, that’s it. So you may as well in that scenario only sell the minimal amount that gets you to the $3,000 loss. In the example I gave, that’s only a few hundred dollars of selling.
