Please disregard my previous confusing post. I have answered my own question.
Not sure how to make a new post, sorry.
A friend of mine who’s also a MDMN shareholder raised the question: If Auryn is calling it a dividend instead of a conversion does that raise the possibility that there may be future, possibly yearly, dividends as well?
Thanks for any comments and insight.
This is Medinah issuing the dividend, not Auryn, and it’s a one-time dividend to put AUMC shares in our hands so that Medinah can dissolve or otherwise terminate itself. All of the value MDMN has is in the AUMC shares, so once they distribute those MDMN will essentially be no more, so there will be no more dividends from MDMN after this one.
Thank you, TR.
TR is correct, this is a one-timer.
But, do recall that a recent news release by AUMC discussed their goal of commencing gold production at the rate of 40 tons per day. And, I think they mentioned the number 2.5 grams per ton somewhere along the way. If you multiply all that out, there could possibly be some money to distribute as dividends.
40 tons per day
x 2.5 grams per ton
x 350 days per year
x 95% recovery rate
/ 31.1035 grams per troy ounce
x $800.00 profit per ounce (maybe)
x 23% (MDMN’s portion?)
/ 2,880,000,000 shares outstanding
.000068 per share dividend (not considering taxes or anything else)
THE GOOD NEWS: If you have 1,000,000 shares of MDMN, then you might get 68.30 per year, don’t spend it all in one place - bwahahahahaha!
Now, if the head grade turns out to be along the lines of what they saw historically at the Fortuna, then things could change … maybe - you have to remember this is MDMN!
Well Bubba, I would just love to receive $680.00 a year per million shares of MDMN, because I’d be able to recoup my MDMN investment in approximately 184 years, but I think your wishful thinking hijacked your post and stuck a zero in there between the 8 and the decimal. Unfortunately I think the math part of your brain intended to type $68.00 instead of $680.00.
Correct - I fixed it while you were responding - I wouldn’t want to be responsible for breaking anybody’s heart - bwahahahaha!
You math is wrong! Its not 2.5 grams per ton. Its up to 85 grams per ton.
This works out to .0023 per share; not bad at all!
Correct. They would not mine 2.5 g/t as they would not have that profit you show. They would lose money and thus not mine.
Well, God bless you Mike - but if that happens then things will FINALLY be looking … UP … for us. Would love to see that, but I wonder HOW MUCH of that level of mineralized ore is hanging around the Fortuna. Is it just that pile we have a picture of on the website, or is there more to be had?
You’re an old-timer here, aren’t you, Photoguy?
So you already know that Absolutely Everything is possible in Medinahville.
A crook sneaking down the back stairs of his hotel in Santiago, on his way to sign the final final final papers at the notario, can stumble, tumble, wind up in the hospital, put out a plea for Christian prayers, and people (right here on this very forum!) will believe and put in a good word for him!
I can’t wait for someone to write the screenplay.
Where will all this madness be filmed? Las Vegas? Vancouver? On the Alto? Or will the Alto be an open pit by then, with the spectacular Andean scenery marred by a line of monster trucks sagging under the weight of tons of pure gold?
Who will play Baldy? Who will play Brecciaboy? Who will play Wizard? Maurizio? Who will play what’s-his-name, the billionaire playboy from Sweden or wherever it was? (Remember FOAD?) Who will play Photoguy? And most importantly, will Brad Pitt be available to play
Outside the Oct 1, 2016, shareholders meeting in Las Vegas:
Onscreen at front of room:
I am reading through the old 1999 Fortuna property report. There are lots of interesting tidbits but here are a few:
Auryn’s current 54 tonnes of ore is more than was mined in Fortuna in any of the last 3 years of recorded production in the 1941 to 1955 period: 1951, 1952, 1955.
40 tonnes per day times say 300 days / year would be 12,000 tonnes per year, more than 30x more than any recorded production year.
Auryn’s claim of “over 2 oz/ton” is right in line with the grades reported as produced in those later years. 85 g/t would be greater than any recorded years of production 1941-1955. One has to wonder how many tonnes Auryn thinks there are at this grade since it is so high relative to earlier production.
Auryn claims they are mining “free gold” without blasting, for at least the 54 tonnes so far. Did they find a hot spot of limited scope? Or do they think they can actually mine those 40 tonnes per day at around this 85 g/t grade?
This is the report: https://www.yumpu.com/en/document/read/4844223/geological-report-on-the-fortuna-gold-cerro-dorado-inc (Should note the only a small portion of the mine was accessible back in 1999 when this report was written. The main production vein was not reachable and wasn’t sampled.)
Looks like about 2000 tons of ore has been previously removed. In 1968, it was estimated that there was about 5000 tons of proven/probable reserves and another 4000 tons of possible reserves. It listed the amount of reserves in dumps as a question mark. Only a little mining was done after that time so I think we have a good starting point.(168 tons removed between 1968-1970 then nothing further.) The report lists that there was over 800 meters of old workings. Since the main vein(and other parallel veins which may be just as good) can be traced basically all the way across the plateau, it is safe to say that the vast majority of gold/silver/copper has yet to be exploited.
TR, don’t be shy. Tell us how you really feel!
I’ll try to do a better job from now on.