If this 802 rule is the reason for the price spike the other day, then one would have to acknowledge that there are naked shorts out there after all, am I right?
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A couple of weeks ago I reached out for a clarification on the terms of the money being advanced by the ârelated partyâ referenced in the Auryn financials towards the exploitation of the high-grade gold veins in the Fortuna Mine area. I am being told that nothing has changed from the previous guidance presented by management. It is not clear to me as to whether or not the advancer of the funds is âMasglasâ or âAHCâ (Auryn Holding Corp.) or Maurizio personally and I didnât pursue that point. The money being advanced by this party, whether it be for exploration, development or the commencement of production (exploitation) continues to be interest-free. There is no share dilution via any shares being given to this party in exchange for such favorable terms. This provided a huge sigh of relief for me for reasons Iâll delve into in a moment. As I believe had been reported several years ago by management, Auryn committed to advance these funds in a noninterest bearing format. My assumption is that Maurizio and his familyâs approximately 73% ownership in Aurynâs 70 million shares provides them with plenty of incentive to advance the funds needed to put the ADL into production. With the grades being mined and the low-cost infrastructure present, my further assumption is that a very rapid payback is probable and the actual risk taken was de minimis.
What is the significance of these interest free loans? First of all, when a junior explorer/developer/about to become producer needs money to commence production there typically arenât many dilution-free methodologies available. Bank (debt) financings are pretty much unheard of at this stage of development and if available there would probably be punitive terms attached. The sale of shares in order to raise funds could be extremely dilutive especially if the current share price does NOT reflect the fact that production is about to commence which is the case here IMO. During the formative years of the typical gold producer, this is the point in time (immediately preproduction) wherein dilution can be severe. The Medinah/Auryn shareholders dodged a significant bullet in regards to the equity dilution most new producers would have experienced. You have to keep in mind that equity financings for the junior explorers are often done at steep discounts to prevailing share prices. If the prevailing share price does not properly reflect the true value of the assets, then you can see how dilutive things can get. In âMedinah: Anatomy Of A 30-Baggerâ, I described the critical nature of the âFinancing Riskâ for even the lucky 1-in-1,000 junior explorers that successfully advance a project into production. Itâs not just the ability to land a financing in order to commence production but to land a financing package that is not super-dilutive. When this RISK is successfully mitigated, the risk/reward ratio can improve dramatically. By way of review, investing in this sector necessitates the careful listing of the common risks associated therein. When one of the fundamental RISKS is successfully mitigated you incrementally add to your position because of the change in the RISK/REWARD calculus. This is just like what a professional card counter in Blackjack will do when the âcountâ becomes favorable and the player has a slight advantage over the house.
I think that Auryn managementâs generosity also speaks to their confidence in getting paid back in a timely manner. With their ownership of about 73% of the Auryn shares, management already had plenty of skin in the game and now they have even more. They would be the biggest victims of any OUTSIDE financing inducing significant dilution. This is one of those examples in which it is nice when management has plenty of skin in the game-think McEwen Mining, for example. But it also sets up a test for the ethics of management. A NON-ARMâS LENGTH FINANCING BY MANAGEMENT AT A STEEP DISCOUNT TO CURRENT SHARE PRICES COULD HAVE BEEN EXTREMELY DILUTIVE TO US ALL. Did management avail themselves of this opportunity? No, they did just the opposite. If a management team owned no shares and were raking in huge salaries then a dilutive financing might not concern them very much. In this example, we donât know if management is being ultra-generous or just looking out for their own equity position but with the zero percent interest rate attached, Iâd lean towards them being not only extremely generous but also extremely confident. If you carefully assemble the puzzle pieces of the geologic data management is getting then they certainly should be confident. I strongly sense the presence of not only a very high-grade nexus of veins but also those of a mesothermal derivation. Note that over time theyâve had plenty of opportunities to screw the Medinah shareholders but they havenât done it.
The funds being advanced to initiate production will be paid back out of the proceeds of production. From what Iâve learned, ENAMI has been extremely slow in cutting checks ostensibly for Covid-related reasons. I believe this explains why there was no income referenced on the most recent financials. The reporting of grades from assays is also extremely slow for Covid-related reasons. This probably explains why management mentioned recently their interest in getting an onsite assay lab. I donât think the average shareholder appreciates just how shut down Chile has been and how remarkable the recent progress really has been. Theoretically, the shutdown in Chile is supposed to be lifted at the end of May. For me, the two keys to concentrate on now for Medinah/Auryn investors is firstly do we have a mesothermal vein system or âjustâ a very high-grade epithermal vein system. Secondly, we need to realize the importance of financing early production in a nondilutive way, as has been accomplished, until the proceeds of production inform the investment world of the potential values present. In a project of this description, managementâs willingness to fund the early production efforts with noninterest-bearing advances untied to share dilution should represent a dream come true. Keep in mind the extremely high grades of the ore being mined and the low-cost infrastructure already present.
If I had to come up with an analogy between the typical epithermal vein deposit and the typical mesothermal vein deposit, Iâd liken them to an apple tree versus a redwood tree. Mesothermal veins form deeper in the earth at higher temperatures and pressures than their near surface epithermal vein counterparts. They tend to not only widen with depth but also extend much deeper than epithermal veins. The grades often improve with depth especially if there is evidence of there being present what are referred to as âboiling zonesâ like what appears present at the ADL. These âboiling zonesâ are typically 300 to 500 meters wide vertical zones wherein the extremely hot hydrothermal fluids emanating out of magma chambers are allowed to rapidly cool and then âboilâ. This provides the impetus to separate the sulfides that gold typically travels with as âthiosulfate complexesâ from the gold so that the gold can collect locally in a more concentrated form. The form of quartz present at the ADL includes the cryptocrystalline aphanitic (âmilky quartzâ) suggestive of the presence of a âboiling zoneâ. The rapid cooling that occurs in âboiling zonesâ does not provide the time needed to form nice crystals of quartz like weâre used to seeing.
For the reasons cited, mesothermal veins, especially very high-grade mesothermal veins, will typically carry much more gold ore than an epithermal vein or epithermal âvein systemâ. This results in much longer mine lives and higher in situ values. In the ADL Mining District, we need to keep in mind the history of what has already transpired from previous exploration and development efforts. The hyperspectral satellite imaging survey performed by C.S. Perez outlined the presence of a 7 Km SE to NW oriented swath of âabout a dozenâ intrusives. This suggested that whatever the average grade was of these intrusives, there was probably plenty of ore present. Subsequent to this, Auryn took on a massive trenching program that outlined over 5,000 lineal meters of gold-bearing veins that made it all of the way to surface. A âvein systemâ is basically composed of these sets of often parallel to subparallel veins. Only a certain percentage will make it all of the way to the current surface where trenching can identify them. This suggested that the âplumbing systemâ within the mountain was very conducive to allow gold-bearing hydrothermal fluids to ascend and come to rest closer to the surface.
With over 5,000 meters of veins having made it to surface, the question then becomes how deep might these veins go and what might be their average grade and what are the associated tonnages of ore. Auryn P. Geo, Luciano Bocanegro, estimated the presence of 664,000 ounces of gold within just two of these veins, in between the surface and 200 meters of depth. The IP/IR survey by Geodatos suggested they go a lot deeper than this. Subsequent to this estimation, management found even higher-grade veins during their exploration/development efforts. They also found a variety of veins that didnât make it to surface and were not represented in Bocanegraâs estimate or in the 5,000 lineal meters figure. The consistency of the reported grades is very impressive.
Both mesothermal and epithermal veins have a tendency to be associated with porphyries. The evidence presented to date of a copper-moly type porphyry at the Pegaso Nero is very compelling. In fact, ridge crest surface sampling in the westernmost area of this â7 km swath of about a dozen intrusivesâ revealed by Perezâs hyperspectral satellite imaging survey showed high grade copper and moly extending over a vast 3,600 meter north to south direction and 1,200 meters in an east to west direction. The price of copper is on a bit of a tear and I feel that a long-term bull market is very likely with the current obsession on electric vehicles and the need to build a vast network of charging stations. I would recommend thinking of the ADL Mining District potential as representing two very promising features. The high-grade gold veins will no doubt be exploited prior to the porphyry areas. The size of the potential porphyry areas suggests that a major or perhaps a consortium of majors may be needed to explore/develop a project of this size. I wouldnât rule out the possibility of Auryn being able to take on a limited phase of exploration/development on the Pegaso Nero area. I say this because of the grades present at the vein areas and the amount of cash flow that might be able to be generated in a relatively short period of time once the new access tunnel is completed near the Fortuna Mine. This should increase the number of very high-grade working faces that can be simultaneously exploited to six i.e. two from each of the three veins known to be present.
A modest amount of exploration/development by management at the Pegaso Nero has the potential to âde-riskâ the porphyry areas from the point of view of a major or consortium of majors. If management attains the cash flow that I think the veins will provide, then I personally would prefer that they use any excess cash, after retiring any debts, to buy back and retire shares if the market underprices Aurynâs value. If the market appropriately values Aurynâs shares then cash dividends, over a hopefully very long mine life as would be expected if this is indeed a mesothermal vein system, would be just fine.
The extremely high-grade gold encountered in this vein system might suggest the presence of a âgold rich porphyry copper depositâ (Singer Type 20-c) in association with these veins. Porphyry associated vein systems typically exist above and lateral to any associated porphyries. These vein systems could also be pluton-related or metasomatic in nature. The evidence for the presence of a Cu-Mo porphyry (Singer Type 21 a) is indeed very compelling but Cu-Mo porphyries rarely have associated vein systems with gold grades like these. The Andacollo âgold rich porphyry copper depositâ which shares the same 91-million-year-old age might serve as a good template for any mesothermal vein associated gold rich porphyry. In these âclassic Sillitoe-type copper porphyry depositsâ with their associated epi- and mesothermal vein systems and skarns, the âporphyryâ itself refers to the relict magma chamber that gave rise to the hydrothermal fluids and gases and the area immediately above it.
From an all-important ECONOMICS point of view, try to mentally juxtapose the insanely high grades recorded to date with a low-cost infrastructure like that seen at the ADL. Then layer upon that the size of most mesothermal vein systems (if that is indeed the case) and the ramifications of an access tunnel intersecting three significant vein structures yielding six different working faces that can be simultaneously developed. It is not clear if the original 5,000 tonnes per month permitting has been increased as of yet but you can do the math with the information given to date and get a view of the potential cash flow here as well as the potential mine life. Worldwide, the average cost to extract an ounce of gold is at about $907. I would guess you could subtract a couple of hundred dollars from that to estimate the cost per ounce on an AISC basis at the ADL.
I donât think itâs too early to generate some matrices based on the production rates from the 6 working faces post-access adit completion, projected costs and the current price of gold which is at about $1,900. You can fill in the blanks as results are announced. The miniscule initial production rate of 40 tpd suggested by management prior to the access tunnel being completed should be scaled up considerably upon its completion. The 5,000 tonnes per month original permitting allowance is about 4 times that figure. Near term production rates will be adversely affected by the various Covid regulations if they are still in place but perhaps we should expect a spike in production once lifted. Keep that in mind for any short-term projections given by management. These should be considered âCovid affected production ratesâ.
The beauty of this new access adit is that it doubles as a production adit as well as an exploration adit. One canât help but notice how every time management goes underground, they seem to intersect yet another previously unknown very high-grade gold vein. What management has been intersecting are what are referred to as âoreshootsâ. These occur where individual veins dilate and become wider or where fractures in the host rock intersect each other.
THOUGHTS ON RECENT EVENTS IN THE MARKETS
- The 80 million share volume day resulting in a spiking of Medinahâs PPS to $.008 could have been related to a couple of events. This could have been a âbuy-inâ orchestrated by the clearing firm of a corrupt MM in anticipation of the new NSCC Rule 801 and 802. It could also have been associated with a buyer that has put 2 and 2 together and came up with the presence of a very high-grade mesothermal vein system present at the ADL. The way somebody was clearly leaning on the market subsequent to that event looked very suspicious and might be the work of a corrupt MM that might be about to be bought-in. It made no sense. Somebody cleaned up the âmarket overburdenâ up to $0.008 and primed the pump for a potentially explosive move and then somebody else pins the market down aggressively. Both theories are very positive for the market.
- If you want to test the waters for the presence of past naked short selling activity and some concerned MMs and their equally concerned clearing firms study what happens on high volume days towards the end of the trading session. Most Medinah shareholders donât follow the trading all day long. If there is a high-volume day with a ton of buying going on, the crooks want to portray the message to be sent that âMedinah was down X% on huge volumeâ even if 98% of the trades were buys and the share price was breaking out. Investors without Level 2 will never know that it was really a breakout day.
- NSCC Rule 801/802 looks for real. Gamestop and AMC revealed how corrupt our markets really are. The current BTIG lawsuit revealed them intentionally mislabeling 96% of their sell orders. The NSCC âparticipatingâ MMs and clearing firms own the clearance and settlement system. The system trusts them not to misbehave with the money of Main Street investors and it allows them to âself-regulateâ. Gamestop sent the message to the noncorrupt MMs and clearing firms co-owners of the NSCC that they were exposed to huge losses if one of their corrupt fraternity brothers defaulted on their delivery failures. With Gamestop Melvin Capitalâs Plotking lost $450 million. But he made $850 million in the previous year. To him that loss was a handslap but to honest NSCC participants theyâve had enough. The Internet has allowed Main Street investors to get organized and acquire some critical mass. Honest MMs and clearing firms need their daily liquidity. The liquidity at the NSCC is pooled. The clearing firms of the bad guy MMs have been using much more than their share. The crooks have always known that the system would collapse if everybody were forced to clean up their delivery failures stat. All theyâve had to do is to âmark to marketâ those âopen positionsâ periodically. Thatâs another reason why theyâll hit the bids near the close of the trading session even if they know the stock will open up much higher. There is a corrupt system of âsettlement banksâ working in collusion to back up the activities of the crooks. The reason that the system hasnât imploded is that the crooks can predictably bankrupt most corporations they target for destruction. When a heavily shorted development stage corporation goes insolvent the money of the investors who bought nonexistent shares goes straight to the sellers of the nonexistent shares.
- Iâm not going to tell you that Medinah has an enormous naked short position on the books. I sense that they do and we did a forensic census of shareholdings many years ago that revealed a massive number of delivery failures BUT thereâs no way to tell what the contributions of Lesâs escapades were in that count.
- In regards to the big volume day in AUMC, keep in mind that prior to any uplisting of Auryn shares the approximately 16.1 million AUMC shares held by Medinah need to be distributed. Prior to that, the Medinah debts need to be taken care of via the sale of a tiny percent of their AUMC shares. This may or may not explain that big volume day. I think that we need to assume that the buyer of that block of shares knows more about geology than we do, however.
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BB,
All around a great synopsis of supporting information. Thanks for reaching out to the company. Good reasoning of why shareholders can have some confidence that management intends to continue exploration into exploitation. There continues to be plenty of headwinds with this investment, but it also appears there will be cash flow from operations that can be reported in the next Qtr or two.
I donât assume the buyer knows more about the geology than the seller, though, as it may have just been a sale out of necessity. The high volume day recently experienced on trades in AUMC will remain a mystery awaiting an explanation. There are several possibilities. One that has not been mentioned (only a possibility, albeit one I felt compelled to mention) is that of there were 600,000 AUMC shares issued to insiders that were owned by MDMN prior to itâs last reporting. From the last MDMN disclosures before going dark (Sept 30, 2018 Qtr rpt and Dec 31, 2018 Annual Report):
On October 1, 2018, Medinah transferred 600,000 of its AURYN shares to the Board of Directors for Medinah in exchange for services performed, reducing their share ownership to 16,104,200 and reducing its percentage ownership to 24.217%.
Were any of these the unrestricted shares sold into the market? If so, for what purpose? The BOD for MDMN is/was essentially the same as management in AUMC, MASGLAS & AMNP; Interest free non-dilutive loans or needed for personal expeditures?
In addition to shares in AURYN, Medinah owns 9,950,000 shares of American Sierra Golf Corp (AMNP) and 96,000 shares of Auryn Mining Corporation (AUMC). Through a settlement with Leslie Price, Medinah will own an additional 1,700,000 of AMNP and 195,500 of AUMC which are expected to be converted to Medinahâs name in Q2 2019. Once converted, Medinah will own 11,650,000 shares of AMNP and 291,500 shares of AUMC.
Did management sell any of these free trading AUMC shares owned by MDMN in order to âclear the booksâ of any debts prior to unrestricting 16.1M shares for distribution to MDMN shareholders? I still believe the unrestricting and distribution will occur simultaneously after an announced trading halt. If they are issued as a dividend is an advance notice of an ex dividend date and distribution date required from a non-reporting company?
Was an interest free loan (presumably not a cash call) provided by these sale of shares and by whom?
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What happened to the AUMC shares that shareholders owned?
ex. I still own xxx,xxxx shares. Garry Gooden owns or did own shares. Poof???
I see this all the time but it sure would be nice to know WHAT SERVICES WERE PERFORMED??
Thank you Breciaboy for the instructive essay, which Iâm sure was no simple task. After two reads I understood almost all of it, but I still canât really get my head around this:
Can you explain the mechanics and the purpose of an âorchestrated buy-in,â in terms that an unsophisticated fellow like me can understand?
Letâs say I had $300,000 or so, and I wanted to buy 80 million shares or so of MDMN? How would I do that and then get the price to fall back to Earth? And why would someone want to do that, whatâs their motivation? (To me, it always looks like the work of one particular party, but Iâm beginning to understand that it might be the work of two unconnected parties, one party that simply wants stock and one party that desperately wants the price to stay suppressedâŚright?) Plus, how does a âcorrupt market makerâ go about becoming âbought-inâ? Who performs this service for a corrupt market maker, and why?
I truly apologize for being thick-headed here. Iâve been able to follow your geology reports (thank you, theyâre breathtaking!) and Iâve also come to understand how naked short selling has been so profitable for the sharks and so deadly for the companies they go after (especially companies who donât have the rights to a mountain full of gold and other good stuff). But I donât get how people can manipulate the market so slickly, and seemingly at will.
I understand (Duh!) how someone can drive the price of a stock upwards or downwards â they either buy or sell enough shares at prices attractive to buyers or sellers. But how does someone âlean on the marketâ without either buying or selling a large amount of shares, as it seems was accomplished by someone following the 80-million share day? Thatâs what I just canât get.
Any chance that when you catch your breath, you might feel like taking a whack at that? Iâll bet Iâm not the only clueless one here.
â madmen
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Looks like everything is back to normal againâŚ
Anything but normal. I suspect another major buy in coming.
Hi Madmen,
Youâre not dumb, our clearance and settlement system is exceedingly complex. The crooks are both smart and rich and theyâre much more familiar with the loopholes in our C and S system. All naked short selling is not illegal. I introduced a term about 15 years named ABUSIVE NAKED SHORT SELLING or âANSSâ. The purpose was to delineate the difference between legitimate NSS and ANSS. A truly âbona fide market makerâ is allowed to NSS into buy orders when a market is characterized by buy orders dwarfing sell orders. This helps prevent rapid spikes in prices to unsustainable levels so that naĂŻve investors wonât buy shares at unsustainably high levels. It is a good thing IF AND ONLY IF THAT SAME MM BUYS BACK THOSE NONEXISTENT SHARES HE SOLD EARLIER ON WHEN SELL ORDERS DWARF BUY ORDERS. This is where the typical theoretically âbona fideâ MM is nowhere to be found. Why? Because itâs much easier to make a fortune from killing development stage companies by running up massive naked short positions and simply suffocating the share structure. When a targeted company goes insolvent the ANSS MMs and their client hedge funds get to keep the money of the naĂŻve Main Street investor to whom they sold nonexistent shares. There is no âautopsyâ of an insolvent development stage companyâs share structure post mortem. There is no day of reckoning.
Corrupt clearing firms want âorder flowâ from other Wall Street participants. Corrupt hedge funds and corrupt MMs will direct âorder flowâ to corrupt clearing firms if they promise to never âbuy inâ their naked short positions. A legitimate clearing firm has the right to âbuy inâ any aging naked short position. He simply goes into the market and buys in the number of shares that never got delivered to him and he hands the bill to the corrupt hedge fund and associated corrupt MMs. The 11th commandment on Wall Street is âThou shalt never, never, never buy in a fellow Wall Streeterâ. All the crooks are going to make a fortune if this rule is followed. The new NSCC Rules 801 and 802 block some key loopholes.
Out of control huge naked short positions typically never get covered. NEVER. All the old rules asked is for the crooks to âMark to marketâ the cash value of their naked short positions. If you are naked short 500 million shares of Medinah and it trades at $0.0024 then all you have to do is to have your âsettlement bankâ wire the funds to the âsettlement bankâ of the broker-dealer of the buyer of those fake shares. Since naked short positions cause the share price of the targeted firm to go into what is referred to as a âdeath spiralâ then marking to market the cash value of that failed delivery obligation is a piece of cake. Itâs free money, yours and mine.
As our luck would have it, the most heavily attacked industry on the planet is the junior mineral exploration industry. Why? Thereâs two reasons. The first is because 1-in-1,000 junior explorers ever make a discovery that they can successfully get into production. The second is that even for that lucky 1-in-1,000 explorer with a discovery, the World Gold Council tells us it takes an average of over 20 years from the commencement of exploration to negotiate the hoops and hurdles needed to go into production. I COULD EASILY MAKE THE CASE THAT YOU AND I ARE CERTIFIABLY INSANE TO INVEST IN A JUNIOR EXPLORER UNLESS WE KNOW IT IS ABOUT TO SUCCESSFULLY GO INTO PRODUCTION. IMO, this is the âsweetspotâ for investments in this sector but I will never buy the shares of a junior explorer out trying to raise money in order to go explore for minerals. The crooks know these two realities and theyâve been literally shooting fish in a barrel for decades.
Itâs that 20-year time factor thatâs the real killer. Why? Because junior explorers do nothing but spend money often raised by selling shares at progressively lower and lower levels over incredibly long timeframes. This represents death by dilution. Medinahâs 3 billion shares outstanding is nothing compared to what could have been. Somehow even after all theyâve been through they managed to retain one fourth of the action at the ADL Mining District which just happened to have apparently hit it out of the ballpark with their mineral assets. Medinah should have been dead 15 years ago. It was the value of the mineral assets that kept it alive. You canât fake it for that long.
I will reiterate the policy of a committee I chaired several years ago on ANSS. Never buy the shares of a development stage company just because it has a massive naked short position. Donât listen to management teams that claim that they are going to deliver the MOASS (Mother of All Short Squeezes). Even with Main Street investors getting organized and taking on the crooks like they did on Gamestop, THE ABUSED CORPORATION STILL HAS TO HAVE THE GOODS. CONCENTRATE ON THE GEOLOGY AND WHETHER OR NOT ECONOMIC PRODUCTION IS INDEED AT HAND! This translates into that 20-year timeframe being over.
I cannot with 100% certainty state that Medinah still has a massive naked short position on the books. We are not allowed that kind of visibility otherwise there would be a lot more Gamestops out there. Another consideration might concern how many of those 80 million shares recently purchased were sold by real Medinah shareholders. In order to âcureâ a failed delivery obligation, a corrupt MM could simply buy fake shares from a co-conspiring MM or CF. Itâs like the left hand selling to the right hand. The naked short position would simply transfer onto the shoulders of the seller of those shares. This is called âparkingâ a naked short position. It will refreshen the age of the delivery failures and take the heat off a bit temporarily. I have trouble believing that Medinah shareholders holding 80 million shares could react that quickly and sell into that buy order but who knows.
I do indeed find the recent downticking after the market was cleared out all of the way up to the $0.008 level interesting. Why would legitimate Medinah shareholders sell real shares after all of that excitement involving the 80 million buy order, the excitement around the AUMC big buy order and the commencement of production involving insanely high grades? Weâll know soon enough. Full disclosure: Iâm on the bid today for another 5 million shares.
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Good Luck with thatâŚ
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I wish I was liquid in my TDA account. Fidelity wonât let me buy MDMN. :-/
Best explanation I heard from someone in the industry re: the run last week . . .
It could be as simple as someone miss entering an order. Say $X of a stock at market. Maybe put in wrong symbol or price and made it market instead of limit? Basically computer filled it. Now that has to be unwound. This was suggested to me last Thursday. It made sense to me. I tried to put in a bunch of stink bids to catch the unwinding but Fidelity wouldnât let me. Argh!
Someone with a 1-2 year time horizon is getting a MAJOR gift here.
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Well those that sold in the 7âs and 8âs could also be buying here.
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What Kevin suggested is just a possibility . Heâs not claiming to know that this is what happened.
The timing coinciding with the AUMC volume would suggest that it likely was not an error with symbol input. Perhaps a market buy versus a limit buy, yes. Thatâs a distinct possibility. And the mmâs let the market order run just so that they could beat it down after.
I would hope the share dividend event would require a reconciliation of real shares and expose any nss position. But perhaps they could just create fake AUMC shares against those fake MDMN shares that they are dividending out.
It should be much easier to gauge a nss position in AUMC post dividend by conducting a share census since the O/S # is so much smaller than MDMN. If it really does exist, Maurizio and Co really should be wise and do a buyback followed by a cash dividend to nail these pricks to the wall. Thatâs just as important than anything mining wise IMO. An artificial share price suppression hurts the company significantly if they are looking for larger scale financing on the copper targets.
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WOW ! From 10:41am to 10:42am, 18,723,112 Shares traded from $0.0023 to $0.001 !!!
How does that fit in with the naked shorting ? Unless they are at it again !
Total traded so far today : 30,633,329
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My opinion only, regarding AUMC . . .
In reading the news releases within the context of an understanding of the mindset and character of Maurizio, nobody is going to want to be short AUMC. If AUMC is successful in hitting the Don Luis vein and the two larger structures in couple of quarters, and they go into production - they will become a cash generating machine with only 70,000,000 shares out and most tightly held. Thatâs just gold. Who knows what happens with Copper in a long-term bull market and the prospects of the LDM, Lipangue Breccia, and the Pegaso Nero.
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This I have never understood. It happens repeatedly (excuse the pun).
OTC stocks have trades at the same amount several times.
In this case Medinah.
Any thoughts ?
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Rod, In some cases a market maker doesnât want traders to know the full extent of shares for sale so theyâll hide shares. In this case the market maker knew he was sitting on 1,175,000 shares for sale but he didnât want the world to know someone was unloading that much so he temporarily hid the rest of them. The logic to the market maker is that thereâs more likely to be a buyer of 235,000 shares then
there is for 1,175,000. Of course the buyer of the 235,000 shares quickly found out there was another
235,000 shares for sale at that same price. The market makers seem to have great latitude as to how they can manipulate transactions.
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Hi Kevin. The last time I spoke with Maurizio he had indicated they were targeting a 4 tonnes per month (not 40tpd) production schedule if they were to secure financing. Not totally suprising that they decided to fund âinternallyâ as that rate of mining wouldnât support a royalty financing. Realizing the grade is high and they will undoubtedlly high grade the material to eventually self-fund a larger scale operation a couple years down the road, âin your opinionâ has anything evolved from that original plan? Thanks in advance.
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Baldy, you must have misunderstood what Maurizio said. 4 tonnes of production would hardly fill up
my pickup truck.