AUMC Quarter 1 Financials are out on OTC
No revenue has been recorded as of March 31st
No subsequent events through May 14
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Regarding the Q1 financials:
Income statement and applicable Note show $350,000 amortization. The cash flow statement shows adjustment for amortization as $1,750,000. These two amounts should be the same number. So either an error or something is being buried in the numbers.
Note 4, Related party mining option:
This option appears to be a buy in similar to our Hochschild option. A related party (Masglas?) is spending exploration and exploitation dollars to earn a percentage of the particular project. Would be nice to know the details. What part of the mountain?, how much required spending? and what percentage is being earned?.
The April 5 notification indicated that 9 tons of orel at 45grams/ton were shipped to Enami in the first quarter yet income statement shows no revenue.
April 5 notification indicates that equipment was purchased yet no equipment listed as assets on the balance sheet.
This leads me to believe that these two items are part of the related party option agreement. The related party spent the money on the equipment and the revenue generated was kept by the related party to offset what they have been spending to explore and exploit the project.
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Probably better that the revenue generated was kept, so the dilution for the exploration & equipment is less. Although it would be nice to see some income in the statement, finally !
Interesting though, two thoughts … 1) whoever spent the money, needs the cash more than the shares OR 2) whoever spent the money, thinks the shares will be worth less than the money.
Most businesses don’t operate on the barter system. The company who sold the equipment wants cash, the laborers working the tunnel want cash. It’s got nothing to do with the value of the shares.
Our partner is expending cash that we don’t have so the project can move forward. Otherwise it’s just dirt on a mountain.
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New rules will affect your ability to buy and sell “Pink No Information” securities, including at E*TRADE
On September 28, 2021, new requirements take effect that will impact the market for—and value of—certain “over-the-counter (OTC) securities” you currently hold or have held in the past. The new rules apply to “Pink No Information” OTC securities of companies that fail to publicly report and keep current financial and other company information and will restrict the ability of U.S. brokers, like E*TRADE from making these products generally available. SEC Rules:
Yes that rule was issued last year.
Probably not particularly relevant as it is geared mostly towards zombie companies. Medinah will need to come current with the last 2 years of financial disclosures in order to still be tradable at the end of September. It is not clear that they will go through the bother since they will be distributing their Auryn shares and going dark but it is probably worth mentioning to a director to see how they plan to address this. Medinah’s fortune still depends on Auryn following through on their objectives/goals.
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An update from a few weeks ago in Reuters:
Chile copper miners cry foul as royalty bill advances to Senate
Dave Sherwood (May 6, 2021)
Chile’s lower house of Congress approved on Thursday an opposition-led bill that would slap a progressive royalty on sales of copper as prices rise, sharply hiking taxes on the sprawling industry to pay for social programs during the COVID-19 pandemic.
The legislation, which passed following a heated, hours-long debate, now heads to the country’s Senate where it is likely to face several more procedural votes.
Proponents say proceeds will fund development and infrastructure in mining regions and underwrite social programs vital to Chileans suffering from the COVID-19 pandemic. But the country’s copper industry fears it could chill investment in world top copper producer Chile and drag on global supply.
The bill proposes a base rate royalty of 3% on copper and lithium sales, as well as other metals.
But in the case of copper, as prices soar, so too would the tax, with marginal rates beginning at 15% of sales for prices between $2.00-$2.50 per pound and cresting at 75% of additional income at prices of over $4.00/lb. Lawmakers have yet to define a sliding scale on other metals.
On Wednesday, copper hit $10,040 a tonne, its highest since February 2011.
Most large copper miners in Chile currently pay a flat, or invariable rate regardless of the price of the red metal, under agreements that run through 2023, according to Chile’s mining ministry. Official government statistics show miners currently pay 27% of pre-tax profits, in addition to other levies.
Chile’s National Mining Society (SONAMI), which encompasses all of the country’s top miners, labeled the latest proposal a death knell “akin to expropriation.”
SONAMI president Diego Hernandez said Thursday there had yet to be a serious debate over the bill’s impact, and called the current iteration a vote in favor of “no more mining in Chile.”
Daniel Nunez, a communist party lawmaker and outspoken advocate of the bill, said miners should “quit their crying.”
“The big miners in Chile should pay more when they earn more,” he said, emphasizing the needs of Chileans at a time when company profits from the sale of copper are soaring.
Chile currently churns out 28% of the world’s copper but has for more than a decade lost market share, hobbled by declining ore grades and ageing projects.
I have never heard of a public company that does not announce when a contract is made with ‘a related party’ or company. The assets being mined belong to AURYN so the shareholders should know the details of the ‘option contract’ !
$1.2M spent by the ‘related party’, which means that $1.2M from the sale of gold goes to them. EXACTLY WHAT PORTION OF ANY PROFIT AFTER THAT GOES TO AURYN ???
I’m starting to smell LES all over again … for what possible reason do they not disclose information that every legitimate company would disclose to their shareholders ?
Remember the ‘related party’ from the past …
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.
At least you know that the related party in this case (Maurizio) isn’t a corrupt bastard like Les. However, the related party financing does a) tell you that they were not able to find a financing solution with a “normal” third party to finance production, or at least not at an attractive cost of capital and b) you have no idea what the related party financing translates to from a dilution and/or cost of capital standpoint…If it’s first money out goes to cover money in, without additioinal layered fees, that will be an OK outcome…Not knowing the answer to specific factors like this nor general factors (like the capital structure post conversion of liabilities) makes any investment here a guessing game.
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Gold up $200 since Auryn expectation update! Moving nicely upward
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Noticing someone is sitting back accumulating shares. Seeing more of it this past week. A step in the right direction.
I’m expecting this to break open. Gold in $2,000 - $2,500 range will put Auryn in a high leverage situation.
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Accumulating shares? Pardon me, but what the heck are you talking about? The biggest volume day of the week totaled $4,000? The entire week’s volume totaled less than $14,000. You can’t even trust a beater used car that costs $14,000.
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Looks like you spoke to soon 
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Nice volume and price today. Lets get this going for real THIS Week.
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Reckon someone has seen the drill/assay results ???
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22 million on the Bid .004
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Now at .007 up 180% for the day with 31 million volume.
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Something BIG is happening! But I don’t know what I am taking about
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Wtf what’s going on
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