Yes, that is what I recall is typically done.
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Cash flow allows that float to be reduced too. 
If, and I repeat if, AUMC is able execute on its objectives and the grades hold up and gold prices hold or increase - we may be in for an incredible second half of 2021 into 2022. A lot of work and good fortune needed between now and then, though.
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I donât recall mentions of use of a SEP-IRA which allows investors to use post Payroll taxes which allows no tax on gains. So I opened a SEP-IRA and put money into it to buy both MDMN, CDCH, etc. So I am looking forward to the conversion of my MDMN to AUMN which may lower my cost basis and hopefully in the future I will obtain some gains which would be non-taxable.
Thoughts anyone.
Moneyrks
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correction: I should have stated âUse post Payroll taxes **income.****âŚâ
Hot damn! That is exactly what I wanted to know. Thanks TR.
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If you can do a Roth IRA it would be even better.
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You have to pay taxes when you pay out of your SEP, I believe.
Right on both accounts Wiz & US âŚ
Long ago I transferred many of my IRA MDMN shares into a ROTH account figuring one day they may pay off, or at least not be a total loss. Since they had declined so far south there was no tax advantage for me to sell. That was before the 2016 revelations that turned this investment upsidedown. Still true today, although I paid much higher taxes on the transfer back then than anyone would today. Taxes on 1,000,000 shares today would only run about $270 or less for most folks. Back in the day when I originally transferred shares over to the ROTH my average share price was around 0.03, so I mustâve been thinking a $4500 tax at 15% or $6600 tax at 22% was alright for every 1 million shares transferred!.
Things have certainly changed. So from the perspective of then and now, Wiz is certainly correct. A transfer from an IRA to a ROTH makes a great deal of sense in the event that things do eventually work out for shareholders as the company progresses forward.
EZ
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Hi Jimmy P,
Sorry Iâm so slow in answering your question. With all that is going on in the Naked Short Selling world with REDDIT and such the phone wonât stop ringing. Like I said before, I think it is prudent NOT to market Medinah based upon any expected âmother of all short squeezesâ. This is NOT to say that I donât believe there is a significant naked short position out against Medinah right now, however. Despite the corporate governance miscues of a prior management member, I still feel that Medinah is probably the best documented naked short selling attack we have to date barring perhaps Overstock.com due to what they learned during the discovery process of their litigation efforts. As you might suspect most of these legal records got sealed except for some E-mail intercepts which educated us as to HOW Wall Street did its thing in the ANSS arena.
Here are some truisms regarding ANSS (Abusive Naked Short Selling). I coined this term about 8 or so year ago in order to differentiate legal NSS from ANSS. Many commentators and analysts continue to incorrectly assert that âall naked short selling is illegalâ. This is not true but admittedly itâs not too far off. Legal NSS occurs when (according to the securities laws) a âbona fideâ market maker short sells (without making a legal âborrowâ thus making the short sale ânakedâ) a moderate amount of shares into buy orders in a market characterized by buy orders TEMPORARILY dominating over sell orders. A truly âbona fideâ MM would then cover his naked short position as soon as sell orders dominate over buy orders causing a downtick. This is when these theoretically âbona fideâ MMs are typically nowhere to be found. Why? Itâs because ANSS predictably MAKES money in a pretty much risk fee fashion while covering an existing naked short position COSTS money. The money being made/rerouted is that of the purchaser of the nonexistent shares that were sold by the MM. Covering can cost a lot of money if these market manipulators misdiagnosed a company as a scam when it actually did have the goods all of the time and it never was on its corporate deathbed as was PERCEIVED. The weak link is that market makers who were ENTRUSTED with a vastly superior view of the buy and sell orders queuing up are put on the honor system as to promptly covering any naked short position on the next downtick after it was established. After all, what could possibly go wrong with handing MMs a vastly superior view of the markets and then TRUSTING them not to leverage this advantage over Main Street investors? OOPS!
Truly âbona fideâ MMs are given an exemption from having to make a âpre-borrowâ before making a short sale. The theory is that they donât have time to execute a âpre-borrowâ in fast moving markets. Their job is to inject LIQUIDITY especially into thinly-traded securities. It is theoretically supposed to be BOTH buy and sell side liquidity when either is needed. As a rule, abusive naked short sellers NEVER, NEVER, NEVER cover unless circumstances deem it in their best financial interests. Insanely, all they are asked to do is âmark to marketâ the cash value of their naked short position on a daily basis with the broker/dealer they failed to deliver shares to on settlement date. If the share price goes up a notch the settlement bank of the MM that is naked short a stock needs to cut a check to the broker/dealer whose client never got âgood form deliveryâ of that which he THOUGHT he was buying i.e. real shares. The buyer of these nonexistent shares firstly doesnât ever learn that what he bought didnât get delivered because it never did exist in the first place. The cleverest of all frauds is one in which the defrauded party has no clue that he has been defrauded. His brokerage statement references the securities he paid for. If you look at the fine print, the brokerage account of the buyer of nonexistent shares is credited with a âlong positionâ via being given a âsecurity entitlementâ. He doesnât âownâ that which he paid for. He merely âholdsâ a âsecurity entitlementâ. He is âentitledâ to sell that which he thought he was buying even though it never existed. Often, the victim has no clue that his investment never had a chance because his invested in company has been targeted for destruction by colluding MMs and those broker/dealers that feed them business. The âcover upâ of the fraud is contained in the monthly brokerage statementâs fine print. All an investor wants to do is to be able to sell that which he purchased hopefully at a profit. Itâs the âat a profitâ concept that rarely occurs for fledgling corporations targeted for destruction by abusive MMs.
The point needs to be made that unlike legal short sellers abusive naked short selling MMs do not pay ârentâ for shares prior to selling them. One of the protective devices within the market for corporations is that as a legal short position builds up higher and higher the ârentâ charged to a short seller increases due to the lack of available supply. This changes the calculus for making a short sale in the first place because the rental fee is deducted from any profit. When the rental fee becomes excessive many criminals will simply direct order flow to abusive MMs willing to share space under the umbrella of immunity from making pre-borrows entrusted with theoretically âbona fideâ MMs. In the recent GameStop case, the short position actually exceeded the supply of shares in the market.
Part of the problem is that for young corporations, the costs of being âfully reportingâ to the SEC is cost prohibitive especially after Sarbanes-Oxley and SOX 404. These corporations are given a break and can trade on the PinkSheets where the information disclosure requirements are less expensive and audited financials are not required. Once they can comfortably afford to become âfully reportingâ they can opt to do just that and gain the credibility attendant to that. The problem has always been that the SEC has always had the attitude that any young corporation that is not fully reporting to the SEC DOESNâT DESERVE PROTECTION FROM ABUSIVE NAKED SHORT SELLING. The SEC is the primary regulator of our markets. Standing behind the SEC is a secondary tier of regulators called SROs or âSelf-Regulatory Organizationsâ. Expecting the Wall Street participants to self-regulate is an insane concept since they have both superior visibility of our markets and a superior knowledge of the inner workings of our markets. The complexity of our clearance and settlement system is beyond description. Abusive MMs are often looked upon as âsheriffsâ on the prowl for scams. Note the combination of no SEC protection, the SRO foxes being allowed to guard the henhouse and missing innate market protections associated with pre-borrows getting more expensive as the short position against a corporation increases. Where things can get interesting is when the diagnosis of a company like Medinah as a âscamâ was incorrect. Unfortunately for Medinah shareholders, it only took 21 years for Medinah/Auryn to prove that the ADL Mining District is for real.
There is a concept referred to as âpairing offâ which corrupt MMs use. Corrupt MM âAâ might owe corrupt MM âBâ the delivery of $20 million worth of letâs say Medinah shares. Corrupt MM âBâ might owe $20 million worth of Cerro Dorado shares to corrupt MM âAâ. What âAâ and âBâ will do is âpair offâ and essentially say you donât have to deliver the Medinah shares you owe me if you donât force me to pay you the Cerro shares I owe you. The net effect is both share prices get clobbered. Both corrupt MMs actually have the duty to âbuy inâ (in a timely fashion) the other MMâs debt via the open market and return the missing shares to their purchaser and deliver the bill to the MM that sold the shares. This is a No-No on Wall Street. I used to refer to it as the 11th Commandment. Thou shalt not buy-in a fellow Wall Street âparticipantâ. In essence, there is no âday of reckoningâ for a naked short position. The âmarked to marketâ process gives it a hint of legitimacy but itâs totally bogus. Wall Street will paint even abusive naked short selling MMs as âproviders of much needed liquidity in thinly traded securitiesâ. They theoretically are assuming high levels of RISK while providing these much-needed services. In actuality, there is very little risk in putting your thumb on the share price scale in an effort to rid the markets of presumedly scammy corporations. Through the years âpresumably scammyâ corporations gave way to easy to kill corporations regardless of their prognosis for success. Young corporations are easy to kill because they are defenseless until they become cash flow positive. Small companies, especially the junior mineral explorers, tend to have high monthly burn rates that typically need to be serviced by selling shares. The crooks know that they can force young corporations to pay their fixed monthly burn rate by selling more and more (constantly declining in value) shares per month just to pay the bills.
If a company has 100 million shares âoutstandingâ and there is a naked short position of 80 million shares then there are 180 million âshares and/or entitlementsâ that could be sold at any time. This is the SUPPLY variable. Even in highly manipulated markets, the variables of SUPPLY and DEMAND still interact to determine the share price via whatâs referred to as the âshare price discovery processâ. The problem is that the SUPPLY variable in ANSS has been MANIPULATED upwards. Likewise, the EFFECTIVE DEMAND variable has been artificially manipulated downwards because the DEMAND for shares has been muted by the naked short sales. Simultaneous manipulation of the SUPPLY variable upwards and the EFFECTIVE DEMAND variable downwards will render the price âdiscoveredâ to be well below the correct share price that would be âdiscoveredâ if the two variables werenât manipulated. This all sets up a self-fulfilling prophecy. If a group of MMs diagnose a fledgling company as a âscamâ they will typically drive it out of existence whether it is a âscamâ or not.
Since abusive MMs NEVER cover until it is in their financial interests to do so, naked short positions become accretive with time. The most highly targeted corporations on all of Wall Street are the junior mineral explorers and the fledgling pharmaceutical corporations. In the case of the junior explorers, the reasons are three-fold. Firstly, their chance of making a discovery and getting it into production are about 1-in-1,000. If you have been naked shorting all of the 2,000 or so junior explorers you have absolutely made a fortune through time. Secondly, the junior explorers have relatively high monthly burn rates. All they do is spend money and rarely if ever make any. This means that they have to constantly go to the market and sell shares at typically severely discounted levels due to the risk, at lower and lower share price levels. The cause of death is typically dilution. Thirdly, many junior explorers operate out of Canada where the naked short selling rules in the American markets are extremely lax.
The typical junior mineral explorer canât survive a naked short selling attack for more than a year or so. Medinah is obviously an enigma. Theyâve been fighting these battles for about 21 years. The initial attack started in Canada after Medinah noticed that Dayton Mining, then the darling of the Canadian mining industry, didnât tie down the mining concessions around its open pit operations at the Andacollo Mine near La Serena, Chile. Medinah opportunistically tied down all of the surrounding properties including some within the open pit itself. The abusive naked short selling attack by the Canadian brokerage industry and the hedge funds that had recently funded Dayton to the tune of $60 million was brutal. The broker/dealer at the spearhead of the attack actually became insolvent. The âcorporate autopsyâ after the insolvency was performed by Ernst and Young. It revealed that 98% of the trades made by this firm were naked short sale orders, mostly against junior mineral explorers.
Medinah even survived the corporate governance miscues of a former management member that issued an inordinate amount of shares without telling anybody. I THINK THE MOST MISUNDERSTOOD CONCEPT IN REGARDS TO MEDINAH IS THAT THE WALL STREET âPARTICIPATINGâ MARKET MAKERS AND BROKER/DEALERS THAT CO-OWN THE NSCC SUBDIVISION OF THE DTC HAD FULL VISIBILITY OF THE DISPARITY BETWEEN THE NUMBER OF SHARES OUTSTANDING THAT WAS VISIBLE BY THE MEDINAH SHAREHOLDERS AND REALITY. If I had no ethics and knew what Medinahâs past CEO was doing, I would have naked short sold Medinah with a vengeance knowing that the share price was bound to collapse when the truth came out. It was a total no-brainer.
So how in the heck did Medinah survive all of this for all of those years? The development efforts at the ADL Mining District continued to exceed all expectations. Theyâve got the goods. In fact, if they didnât have the goods, theyâd have gone insolvent 18 years ago. How do you know if your invested-in company has a preexisting naked short position? The answer to this is associated with the nature of the âmarking to marketâ process needed to be done by the abusive MMs with large naked short positions. When youâre dealing with a stock trading in the âtriple-0âsâ i.e. $0.000X or âdouble-0âsâ i.e. $0.00Y, a small incremental gain in the share price can represent a huge percentage gain in the share price. Itâs the percentage gain that needs to be âmarked to marketâ. Abusive MMs that have not been able to deliver the knock out punch after 21 years of naked shorting canât afford to let the share price uptick without putting up a fight. What youâll witness throughout a dayâs trading is tiny little sell orders amounting to perhaps $10 or so constantly hitting the bid and thereby resetting the marked to market share price.
If the stock sees a wave of buying on large volume resulting in share price appreciation, you would expect to see either large amounts of nonexistent stock dumped on the market at the end of the day or at least a de minimis bid tapping at the closing bell. This would leave the impression to those that donât follow the market throughout the day that Medinah was down on huge volume, an ominous message that shareholders are hitting the exits in droves. This is despite the fact that they were actually up on large volume. A couple of months ago on a Friday afternoon with 4 minutes left in the trading session, some mystery seller dumped 28 million shares on the market knocking out bid after underlying bid. Real shareholders owning real shares just donât do that. Abusive MMs with large preexisting naked short positions could be forced to be this obvious in order to keep from making out a very large check at the end of the day. Instead, their settlement bank probably ended up receiving a very large check at the end of the day.
So how do you beat these guys? You become cash flow positive. If your share price is in the gutter, you buy back ultra-cheap shares and cancel them thereby tightening up your float. Future cash dividends will be extremely generous since less shares need to share the dividend cash. In an environment in which interest rates are super low like right now, inordinately large dividends (as a % of share price) will drive the share price to the proper levels. If the projected mine life is substantial, then shareholders might be able to look forward to a long stream of cash dividends. Kevin made a post within the last 3 or so days which I think is very prescient regarding tightening up the float. Thanks jimmy P. for the question and again Iâm sorry to respond so slowly.
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This doesnât surprise me - thanks brecciaboy, and good to hear from you!
EZ, thatâs what I was thinking when I transferred mine and paid taxes at $0.018 a share value at the time. I was a genius with tax free gains with MDMN at $0.15 a share. I was an idiot as I watched them disappear! I paid more in taxes than the value of my shares today. DOH!
But at least I understood the calculation so I have that going for me. 
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"The initial attack started in Canada after Medinah noticed that Dayton Mining, then the darling of the Canadian mining industry, didnât tie down the mining concessions around its open pit operations at the Andacollo Mine near La Serena, Chile. Medinah opportunistically tied down all of the surrounding properties including some within the open pit itself. The abusive naked short selling attack by the Canadian brokerage industry and the hedge funds that had recently funded Dayton to the tune of $60 million was brutal. The broker/dealer at the spearhead of the attack actually became insolvent. The âcorporate autopsyâ after the insolvency was performed by Ernst and Young. It revealed that 98% of the trades made by this firm were naked short sale orders, mostly against junior mineral explorers."
Wow, I had NO IDEA about this - obviously some people have been around here MUCH longer than me - and EY being involved too. So, it appears the short sellers got teed-off for Medinah being opportunistic and out-maneuvering Dayton, their little darling they had funded. They then attacked ⌠for the sport of it (read money), and have gotten away with it, so far. You live and you learn.
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Hi mrb,
Those were the good old days! After buying up all of the surrounding properties around the Andacollo Mine, Medinah had an office and some equipment near the mine. A Dayton crew came in during one night and bulldozed everything into oblivion. Things got legal in a hurry and Daytonâs reputation took a pretty good hit. The 6 hedge funds that just put $60 million into Dayton to fund operations werenât exactly enamored with Medinah for trying to play the opportunist at Daytonâs expense. During the initial attack, the stock used to trade over 100% of the float on a daily basis. The share price got totally obliterated. These were the days that abusive NSSers out of Canada, where there were zero laws forbidding ANSS, just teed off on any junior explorer they chose to target.
To show you how stupid I was at the time, I had a brokerage a/c at the Canadian broker dealer that was the kingpin of all of the naked shorting operations. I kept buying Medinah shares and my broker, who I thought was my buddy, kept telling me that my buy order was âfilledâ although the trade never got printed. Later he came clean and informed me that the owner of the firm was personally naked short selling into all of my buy orders at the behest of some mystery player. For some reason, namely the ADL, Medinah kept surviving. Soon thereafter, of the tens of thousands of CEOs amongst small corporations, Medinahâs CEO (Les Price) was targeted in an FBI sting operation referred to as âOperation Bermuda Shortâ at the behest of again some mystery party who recommended that Les (and therefore Medinah) be targeted. About 10 guys were ensnared in the sting and Les and one other were the only ones acquitted. The rest were indeed bad guys and were found guilty. Lesâs jury saw right through the targeting of Les/Medinah. Besides all of that, itâs been a rather uneventful 21 years (NOTTTT!) Itâs the bona fides of the ADL Mining District that allowed the survival of Medinah. Through time, the percentage of shareholders that were true âgeo-dorksâ like me and Mike and a dozen or two others has grown quite a bit.
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I just added the total monthly sales volume as provided in the historical data for MDMN from Aug 2016 when the âshare discrepancyâ was announced until today. Officially there are 2,882,282,073 shares out. As best I can recall, the official share count was just under the 1,500,000,000 authorized prior to the âreported share count discrepancyâ. Total trades from Aug 2016 to present have totaled 1,173,642,700. I doubt many of the airshares that were created have been covered. If all share transactions since Aug 2016 were used to cover shorts (an impossibility) that would leave 1,708,639,373 shares still belonging to shareholders that did not allow their shares to be sold to cover the short. There is undoubtly a very large short position existing in MDMN shares that will only be unwound after the unrestricted AUMC shares are released to shareholders. AUMC shares is where the unwinding of this short will necessarily occur because all shareholders will receive these shares through their âownershipâ of MDMN shares. A full accounting of shares belonging to those MDMN shares held by individuals in street name will eventually be attained prior to release of the restriction on AUMC shares. Patience may eventually allow me to recoup, in part or whole, the losses in my IRA, ROTH accounts that had no tax loss advantage for me and prevented me from selling. Iâll be waiting until I have received converted AUMC shares in my accounts before I consider trading.
Also of interest for those who may not have seen it a couple days ago âŚ
EZ
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When somebody writes âthe bookâ on this one, I think it will get a LOT of sales - lots of drama I never knew about. Hopefully, our guys are really making an effort to become cash flow positive, though I wonder if they are motivated at this point to generate the amount of cash needed to service the yearly taxes/costs of the various tenements. The one thing we can hang our hats on: Managementâs interests are aligned with ours, and they probably do not want to lose out on their investment which in my world is substantial. I guess we just might see.
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MDMN is selling for about .0002 this morning.
If it increases in value by about 5 times, it will then be selling for ONE CENT.
There are many people around here who have a cost basis in this stock of about one centâish - and just may decide to get their money back and move on to greener pastures. There are lots of green pastures out there, filled with executives MOTIVATED to move forward in this climate where precious metals are booming. Agreed - this stock has LOTS of âpotentialâ, but it ainât worth anything if you ainât PUSHING forward. Just saying.
Maybe a news release saying our boys are actually SELLING gold could do the trick?
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Well sir, my cost basis is going to keep me on this ride all the way to the end! Yes, I have a choice, but at this point Iâm committed. For any who are able to get off prior to MDMN @ .10 or AUMC to that equivalent, you have my envy and congratulations. Think of me fondly as the MDMN part of your life experience diminishes in your rear-view mirror! 
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I my with you TR! Nice to see someone willing to dump 27,600.00 to purchase 92,000 shares of Aumc at .30
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Looks like something is happening. Nice buy on MDMN and nice bid in Aumc
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Looks like something may be happening with AMNP also. Related?
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