In regards to the accusation that the first quarter financials made no reference to the advancement of funds, in “Note 4” of the first quarter financials dated March 31,2021 the company already reports ALL of that information in pretty good detail. The next quarterly filing isn’t due for another 30 days at which time they will no doubt update the amount owing:
“The Company holds a mining option contract with a related party. Pursuant to the agreement with that related party they would incur all expenses related to the exploration and exploitation of minerals. When minerals are found and sold the profits will reimburse the related party for all expenses incurred. As of March 31, 2021 the related party has incurred approximately $1,200,000 of expenses. These funds will not be refunded or repaid by the Company and are not payables of the Company and have therefore been excluded from the income statement for the three months ended March 31, 2021.”
As opposed to your accusation of fraudulent financial reporting, this is actually tremendous news.
“All expenses related to the exploration and exploitation of minerals” is being covered by this “related party” at zero percent interest ALL OF THE WAY THROUGH TO PROFITABLE PRODUCTION OR ELSE THERE WAS NO ADVANCEMENT OF FUNDS THAT NEED TO BE REPAID AND THERE NEVER WAS AN ADVANCEMENT OF FUNDS. How often do you see those terms?
“These funds will not be refunded or repaid by the company and are not payables of the company and have therefore been excluded from the income statement for the three months ended March 31,2021”. What could be clearer as to how the accountant chose to present this information? Balance sheet liabilities need to be repaid. It appears that the deal is that there is no liability until there are profits and thus this accounting approach was taken but clearly delineated on the financials for all to see. The dollar amount was clearly delineated for any prospective investor to see.
The mining industry reality is that the Auryn and Medinah shareholders successfully dodged a dilutionary bullet. For the tiny fraction of junior mineral explorers that become producers, the CAPEX associated with going into production is extremely dilutive because the new producers can almost never access debt financing from a bank and their share prices are relatively low because they are yet to experience the pop in the share price associated with proving themselves as a producer. Usually, the new producer needs to dilute its shares via the sale of shares to fund development and production or to dilute its ownership in the project via a strategic alliance with a major or mid-tier. Maurizio, as a 70% owner in Auryn, spared himself and us from all of that.
In this industry, how big of a deal is it for Auryn/Medinah to go into production? Approximately 1-in-1,000 junior mineral explorers ever make a discovery and successfully get it into production. Even for that lucky 1-in-1,000, the World Gold Council (WGC) tells us that it takes an average of 24 years from the commencement of exploration to actually delivering that first load of ore. The number of new discoveries is currently at a 32-year low and the number of ounces of MR/MR on the balance sheets of the majors is at a 31-year low. This might suggest a rather fortuitous timing for corroborating the ADL discovery by putting it into production especially if you want to attract the eyes of a major that might have an interest in other areas of the ADL Mining District.
I find that people who are used to being cheated or often look for opportunity to take advantage of a position are flummoxed in the face of those who go above and beyond to do the right thing, correct grievances at their own expense, or sacrifice for others.
^^^ I was once that kind of person (always looking to leverage my advantage even at another’s expense.) I learned a different way. It may cost me from time to time, but I am much more at peace. There is a benevolent hand guiding the world - it’s not against me, but for me. I don’t need to look out for myself so much. (At least that’s my mantra!)
I know of more than one person who brought people into MDMN and “reimbursed” the losses on behalf of their friends or clients. They have taught me much.
Ahh BB, like a loyal labrador we can always count on your unflinching defense for anything and everything MDMN. It reminds me of when you personally attacked me and my family when I was actively pursuing an audited share count in the face of pretty obvious fraudelent activity. Per usual, you were the first to defend the MDMN BOD and put up your “1 in 1000” smokescreen posts as the investment was sprialing downward.
This is clearly a completely different scenario. Nobody is accusing AUMC of financial fraud nor questioning the integrity of Maurizio. Yes, I read through the footnotes describing the “loan” when they were released. If you think that repaying the loan through profits and production don’t count as a liability or payable, well, that wouldn’t suprise me. But, similar to a royalty, stream, or any net profit encumberance, they do indeed need to be reported in the financials. No need to beat a dead horse and get the “Wizard” in a tizzy. Let’s see how they report the second quarter financials.
For those who are extremely reactional and sensitive to anyone posing legitimate fundamental questions about this investment (when considering the last 20 years of history) either be comfortable knowing what you own or don’t own it.
Learning that myself recently. I convinced my best friend to put some $ into a presale crypto I believed in, which was a complete scam. I immediately told him I would repay his $, and, after the briefest feeling of personal “loss,” the relief and joy I gained repaying him in full felt ALMOST as good as if we would have made $!
I think this is a solid mantra in life but a painful one to apply in the financial markets. I believe you received a bounty of AUMC shares for your services as MDMN BOD member but I’m assuming you didn’t gift those to friends who lost money.
I am or, would be, flummoxed by anyone providing capital to any company without any personal gain or agenda. Guilty. This isn’t a non-profit. We will learn over time but if I were to guess, this benevolent third party either has a sweet deal on the profit participation (worst case) or is making this loan b/c they already have a signficant position in AUMC and is trying to bring some life to their investment (best case). In either scenario they are not making a sacrifice to you at their own expense without a self-serving, profit related, motivation. IMHO.
You believe current shareholders are hosed because in order for this to have any value AUMC needs a lot more money and we will be significantly diluted.
You offered AUMC some options to do just that.
So what is your motivation here?
You like coming back to look at a train wreck (schadenfreude)?
You are educating the rest of us who haven’t learned our lessons yet?
You want to caution others from falling into the same trap we did?
Some other reason?
No assumptions on my side, I’m just curious.
::: As an aside, no tizzy here. I know exactly what I own and what’s at risk. What anyone says or doesn’t say on this forum or elsewhere has no impact (in my view) on where this ultimately ends up. What is in the ground is in the ground and we are going to find out enough without dilution to know whether we win or we lose. It’s a binary outcome for me. :::
I follow over a 100 names where I hold no position. Given my history with AUMC/MDMN I don’t need to commit as much time here to stay up to speed on where things stand. In “normal” stocks where I hold no position I engage with company management, analysts, existing shareholders, etc. In AUMC/MDMN I only need to analyze the occasional company PR and visit this site as a “sentiment gauge.” Will I ever own this POS? I wouldn’t be following if this wasn’t a possibility. Why do I currently not own this POS? Because at this stage I believe it’s overvalued and has a lot more “wood to chop”. However, I would happily pay higher prices if the underlying fundamentals change.
If I wasn’t following this or any other stock that I don’t currently own, I’d never be “early” to the game, and just another sheep with miserable performance. Not sure why this is a hard concept for anyone who has any understanding of the market to follow.
Also, anyone who has any understanding for the market places a lot more value on difficult, probing questions vs. a redundant hollow applause for anything and everything the company does despite losing 99% of their money. This board should serve a purpose in challenging optimistic assumptions vs. encouraging inflated optimism. The only folks who take offense to legitimate questions are either despearte for a win and/or insecure on what they own (not in reference to you).
Legitimate tough questions are appreciated, but let’s not fall back into personal grudges and personal insults, please.
Of course anyone trying to advance the progress of this investment is going to help themselves as well as all of us, but that doesn’t mean they haven’t put themselves out there, doing beyond what most of us would even be able to understand, benefiting us all as well. Wiz rearranged his whole life to straighten out this mess and worked for free a good part of it. So whatever compensation he may have ended up with helped keep him working to get all of us where we needed to be. And then it won’t benefit him until this plays out more.
It appears that Medinah had to have submitted an application/various documents to the OTC by June 30, 2021 to allow enough time for the OTC to review/reinstate their current reporting status prior to the end of September deadline. They also needed to cough up $5500 dollars and provide the missing quarterly financial statements. I think they may have done this already but not sure.
The court date scheduled for August 3rd wouldn’t have been made if those were completed. IMO. We may see some major volume days in the final days of July.
Hey Mike, question for or you or anyone else that would like to answer. I have some funds set aside in my TD trading account and was going to put a buy order in for MDMN but now hesitant to do so after I just received an email from TD. I understand I won’t be able to sell the securities after August 13 (which really I don’t plan on doing so until Auryn gets this thing moving up north.) Sounds like my Fidelity account only does the same and has been doing so for a while now. Any feed back you can give me? I am sure a lot of shareholders have TD. Tia
Makes you wonder why AUMC distributed to cdch so quickly and here we sit with mdmn share count, a mess, AUMC still not distributed, hundreds of millions of mdmn shares being traded prior to non reporting issue coming to fruition and now chatter about buying AUMC instead.
Are we screwed with mdmn? WTF
I am trying to decide if I should sell half of my MDMN shares to buy AUMC just in case you can’t sell MDMN…little scared also just don’t know why taking so long to convert…makes no sense
I usually agree with Kevin and Mike but in this regard, I’ll play the contrarian. I’m actively adding to my MDMN position at a faster rate than to my AUMC position. I’m interested in ownership points in the ADL Mining District. Today, I can get twice the bang for the buck by buying MDMN. With AUMC trading at about $0.75, the market values the ADL at about $52.5 million. With Medinah trading at about $0.0021 the market values a 24% stake in the ADL at about $6 million which translates to about $25 million for the ADL plus the 11 million shares in AMNP (Puange and Caren placers, Llano, Mali and Poseidon properties) plus the $40 million plus tax loss carry forward from Medinah spending money over 20-plus years but never earning any.
I like Medinah because I believe that the ADL Mining District is EXTREMELY valuable and Medinah has a block of shares representing a 24% stake in the ADL all held in one spot. The restricted nature of Medinah’s AUMC shares wouldn’t bother any entity seeking a 24% stake in the ADL in one fell swoop. Restricted shares earn the same cash dividends as free trading shares. With Maurizio and family owning about 70% of the AUMC shares in a restricted format, I could easily see him turning Auryn into a cash dividend machine.
With respect to the end of September issues in regards to market makers not being able to make a market in companies that don’t make informational disclosures, I’m assuming that Medinah has that under control. That issue has been out there for quite a while. The OTCPinks is hustling to make sure that companies that make an effort to make this deadline will do so. Medinah “went dark” in regards to informational disclosures not because of the usual reason corporations “go dark”. Medinah is basically a holding company/safe deposit box with 16.4 million shares of AUMC. AUMC is making all of the necessary informational disclosures. The last financial disclosure Medinah made pretty much sums up what today’s financials would look like no doubt with a few minor changes. Medinah’s debt (like Auryn’s) is noninterest bearing. Their number of shares outstanding can’t go up without calling an AGM because they’re already bumping their head on the authorized cap. If Medinah is going to pay off the last of their debt via the sale of Auryn shares then we don’t want this to happen now if the share price of Auryn is about to go for a ride. This way, less shares of Medinah will need to be sold in order to service that debt leaving that many more of the 16.4 million AUMC shares for us shareholders. What is the event in the genesis of a development stage mining corporation leading to the most predictable pop in the share price? It’s going into production especially if the grades being produced are atypically high. Investors know that the initial rates of production are going to ramp up with time. They know that the cost to produce an ounce of gold is likely to drop in time. They also know that the dilution involved in funding activities through the sale of shares is going to plummet. From a mining investment point of view, IMO we are entering the “sweet spot” for these investments. Later on, when production inevitably plateaus out and the cost to produce an ounce of gold equilibrates the “sweet spot” will fade hopefully into predictable cash dividend flow.
