Auryn/Medinah - 2022 - 1st Half General Discussion

244

although I don’t put as much weight on this next update

The reason I say it is important is:

  1. Seasonally things will start to slow down (not stop) due to weather events etc. after this.
  2. Just because M. has funded this effort for quite some time via a non-interest loan, to be paid back from production, well beyond expected discovery date, that does not mean he is obligated to do so forever. Nor should he do so.
  3. If they have continued to extend the tunnel and they are say, 300m or more in and they still have not hit the DL, at some point you have to step back and say, OK, something is not as expected here. There is no evidence at this point that this has happened. I am just saying it as a matter of logical principle.

Presently I am inclined to think that if equipment allowed more tunnel progress in this Q, then they probably hit the DL and are awaiting confirmation or will announce it in this update. But the bottom line is, at some point, just saying, “a little bit farther” until you pop out the other side of the mountain does not make sense. And somewhere around 300m, 350m, 400m in they are obviously way past where they should have hit the DL if things were all oriented as expected and they should be approaching at least 300m if equipment allowed progress at all.

2 Likes
245

If you would of posted this on the GBR (Great Bear Resources) message board they would be laughing at you. By the way GBR was bought out by Kinross for 29.00/share. GBR rocketed from .85 to 18.00 within 6-7 months. According to KWN the current bull cycle will not end any time soon.

6 Likes
246

Comparing AUMC to GBR is almost (almost) as inappropriate to your earlier reference to Doge…I believe the laughing on the GBR message board (if one actually exists) would be directed on my posting anything on MDMN in the same context. Theminingplay is a very warm, forgiving blanket when compared to most of the other boards that seem to mandate some actual fundamental debate…there are obviously some exceptions!

247

Anyways there is no reasoning with you, you always want to be right so I won’t waste any more of my energy with you.

11 Likes
248

I’m surprised Baldy didn’t contest and deride this all important concluding statement on the Gold Bull market continuing for years.

Instead Baldy finds it necessary to make derisive and condescending comments on individual investors. Many of us have been here contributing insights and opinions for many many years. Baldy imagines himself as helping out everyone here, when it appears he is awaiting an opportunity to jump back in quietly if and when things are more to his liking. Choosing to pick personal attacks on his favor “peeps” does not make him a valuable contributer or admirable commentator here. Peeps are a favorite Easter candy to most of us here, and nothing more.

Most of us are already aware of the shortfalls of this company. It was wise of Baldy to find a way out using his tax loss selling to offset gains in a company such as GBR. Great Bear Resources was an exploratory company that admittedly fit Baldy’s profile for a company proving up a rich deposit defining it by extensive drilling. Personally I didn’t want to see Kinross take GBR out so soon, but the project will be very good for Kinross. I believe the point you were making hulkster is that GBR was brought to our attention by Elrac several years back (AUG 2018?) and some of us followed up and did very well. Best to put new money into projects that are doing everything right. Especially those of us holding Auryn and MDMN in retirement accounts where there is nothing to be gained by selling and moving on. Even if there is not extra investment funds available, many of us do just watch as progress is being made.This stock is still in a sock drawer for many of us for a very good reason. It will do very well if management is persistent in carrying out it’s goals to succeed, especially when working with a shoestring budget. Baldy is just another sour grapes Monday morning quarterback that constantly criticizes management and individuals. Other speculative penny stock companies expect the trolls that show up until the company reverses. You are wise to not waste any more of your time with Baldy’s predictably negative diatribes. GLTA of us still here! :slightly_smiling_face:
EZ

6 Likes
249

So you know better than Maurizio, correct? He apparently is not all that concerned with paying himself back as much as you are. He wants to hit the DL vein and then mobilize.

Is that Nutty? Hit the DL vein and then kick things into gear.

Agreed

7 Likes
250

AUMC Financials out

https://www.otcmarkets.com/otcapi/company/financial-report/325884/content

https://www.otcmarkets.com/otcapi/company/financial-report/325883/content

3 Likes
251

Easy, I genuinely hope your patience is rewarded in spades. I’m not sure why you are fixating on the tax profile/benefits of something I brought up several years ago. That ship has sailed and I can appreciate holding on to a lottery ticket in your IRA but, as you know, that has nothing to do with opportunity cost.

If Maurizio is willing to keep throwing money at this ($2.6M million as of 12/21) and there is finally some level of success on the mountain, it is my opinion that I will have pleeenty of time to establish a position around these levels. This thing ain’t moving on the price of gold nor fundamentals as most of the current shareholders are already all in and the general market doesn’t currently care. If the rocket takes off without me, enjoy the ride. I can live with missing the ride but I don’t think I could stomach buying at this (currently rich) level and incur further losses (good money after bad argument).

I think CHG brings up a valid point in answering my earlier question. He probably can’t afford any outcome that doesn’t involve hitting the DL as he does not have unlimited funds to personally bankroll this. Probably up to $3.5M+ now. That is a whole lotta money down in those parts.

As to personal attacks, I’ll try to remind myself that this board is more of support group that relies on the hopium of some posters vs. a forum to debate legitimate concerns.

Onward and upward.

1 Like
252

With an expense of $2.6M , trying to dig their way underground, a portion of the money should have been used to drill. How many short drill holes can be drilled for $2.6M , A LOT. Then at least they’d know exactly where the veins are headed, to reduce the huge expense of digging. 5 or 6 10-25 degrees (or shallower) from horizontal holes would have passed through every vein. Since they ‘knew’ roughly where the veins were, the length and number of drill holes could have been optimized to cover the most ground !

AT last some info about the Related Party expenses :

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. There will be no repayment of those expenses from Auryn Mining. When minerals are found and sold the profits will reimburse the related party for all expenses incurred before profits are shared with Auryn Mining. As of December 31, 2021, the related party has incurred approximately $2,585,000 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 year ended December 31, 2021.

2 Likes
253

Hulk, I understand your enthusiasm, but one crucial note about GBR. They went through 2 stock consolidations Jun. 01, 2016| & Jul. 08, 2013. In total a 25 for 1 consolidation. So the final price of $28.15 would have been $1.126 w/o . This is even though they had some amazing drilling results during the price rise. Also the resulting share count was 58M. Unfortunately Medinah has 2.9 Billion shares or equivalent 16.1M AUMC shares. That’s a 181 to 1 reduction in MDMN shares (compared to GBR’s 25 to 1).

1 Like
254

Baldy, you said Maurizio cannot afford any other outcome besides the DL? Maurizio did find other high-grade veins worthy of exploring. And even if he hasn’t hit the DL as of yet, we already know it’s there and not disappearing any time soon. My only concern is that they might not find it before winter sets in.

Regardless, they will find it and the sp will begin climbing from that announcement. None of us are blind to the pitfalls and possible delays, Baldy. I doubt anyone here is addicted to ‘hopium’ either, especially not since the Les Price scandal. Although I have appreciated some of your past posts, lately your posts tend to be the opposite of ‘hopium.’ :grimacing: Whatever it is, it’s neither desired nor addictive. The tone of your attempts to enlighten us is abrasive & condescending; it appears to be exactly what you aim to do. We don’t need that, either.

You already admitted that you will pay substantially more to get back in once all possible doubt is dispelled. These are your opinions and speculation. But, I’m not sure why it’s so important for you to tell us that you may “miss the ride” based on your guesses. I doubt anyone will miss the sarcastic & cynical part of the sideshow you often present, IMHO.

7 Likes
255

I seem to remember MrBubba having a CPA background. Can you explain how a related party can enter into an agreement with AUMC where the related party holding the “mining option contract” gets paid out of AUMC profits but somehow there is a claim that AUMC is not repaying those expenses? Soooo, maybe their is a AUMC holding company sitting above the AUMC operating co that is paying back this loan?

In the January update the company clearly describes this obligation as debt which will be an encumbrance against production/profits:

“Initial cash flow from production will be used to pay off exploration debts”

I’d like to understand on who’s balance sheet these payables exist? Its admittedly a great deal for shareholders with a zero coupon but it’s a direct liability against the asset if profits are going to be allocated to pay it back. No different from an industry standard forward contract or gold loan but with a related party and no interest. This would/should be recorded as a liability on any balance sheet and it’s not like the company is avoiding disclosing the quantum or that it exists.

What am I missing?

257

100% agree. This is why 99.9% of mining co’s initiate some sort of drilling program before mining. Yes, it results in some dilution but without it you are basically flying blind. I would guess these guys find the DL vein eventually but without any sort of block model they will need to be extremely precise in following the vein once found. Given that they have already spent over 14 months trying to find the vein, anyone assuming that they will be able to successfully mine and/or expand the mining process once found simply doesn’t understand mining. BB may be a good candidate to address the same.

Anybody else notice that BB’s predictions for the end of the rainbow pots of gold have gone quiet will the Wizard has been trying to tone down expectations? I wonder who has a better read on reality?

258 
    Some good sensible thinking going on lately. Thanks.

On the subject of mining more then one tunnel face at a time.
This is too small a tunnel / waste road to do that for now.
This is the dilemma in tunnel mining. "HOW do you move around in there.
These large loaders are made for mostly forward and reverse driving in tight spots. You also use your blast wall as a back stop for loading rubble.
To start anymore side faces along this tunnel is asking for trouble.
Think of working your vehicle around inside that tunnel. Could you, maneuver a pickup around inside such a limited space without running into something or somebody? That is what they are up against. Too many issues concerning peoples safety to start with. Also when you expand a tunnel in width,
you have to start addressing shoring up the roof.
Mining a side face takes out one leg of your arch support. Gets complicated. Best to keep it KISS at this time.
On the subject of loans.
In my youth I was told; If you loan money, you best make sure that person can make twice what that loan was for.
As it will take that much before they can pay you back. It has been so true.

    Peace and Good Luck to all of us, while we wait our ship to come in.
1 Like
259

These expenses are not on the books of AUMC because if the entire thing goes bust AUMC has no obligation to reimburse the related party. The agreement probably gives the related party all rights to recover and sell minerals to a predetermined point whereby the rights are then returned to AUMC.

It’s probably similar to the agreement with HOCH except this related party is not asking for a percentage of the deal ( according to Kevin in an earlier post ).

4 Likes
260

Agreed. The loan does not appear to be securitized against any assets so, if something goes South, there isn’t a seizure of collateral nor any repercussions. However, if you are a new investor doing analysis on MDMN (like a real investor doing due diligence), as you go through the income statement/balance sheet, you would need to know how the profit share works toward amortizing the loan. This loan is a direct encumbrances towards future profitability and, in any normal reporting company, would be categorized as a payable/liability. Bulletin board companies can pretty much report whatever they want but you won’t attract quality investors until reporting standards are met. IMHO.

**It also seems strange that the $30K+ of income wasn’t recorded on their income statement. Typically Enami would pay 80% plus of the estimated contained metal on the spot, and then the remaining 20% once the value had been assayed.

In January they stated:

“On November 30, 2021, AURYN received a pre-liquidation value from ENAMI for the 48 tons shipped. The accepted total was 15 g/t Au, 31g/t Ag, and 3% Cu with an anticipated liquidation value of $36,207. AURYN expects to receive final payout from ENAMI in January.”

So whatever the “pre-liquidation” value was…should have been recorded as income in 2021… the final payout would be the ~20% withheld.

What about the 9 tonnes of ore shipped to Enami in early 2021? No income there either?

In the Q1 2021 the company purchased a bunch of "stuff:

“AURYN acquired production equipment, including two new compressors, two jackleg drills, and a Bobcat in order to reduce the time required for drilling, blasting, and removal of material. In addition, AURYN acquired a crusher and conveyor belt to reduce the size of the ore and match Enami’s processing requirements.”

They have subsequently bought a shiny red truck.

The only assets disclosed on the balance sheet are the mining concessions. Who owns all of this equipment?? Why is it not disclosed.

I’d love to be the accountant charging fees for these filings. Easy life.

1 Like
261

I agree that it is confusing to read the updates as you have shown and compare it to what is being reported in the financials. I believe that the related party has the rights to recover and sell minerals to a point and then those rights revert back to AUMC. The assets and associated liablilites are on the books of the related party. AUMC probably refers to these assets as theirs because in the end those assets will belong to AUMC once the related party has recovered their costs from sales of minerals. Once again we shareholders/people interested have to try and decipher what is happening. Simply disclosing the related party agreement would be most helpful.

3 Likes
262

Yes. I believe you are correct. There is a third party (Maurizio) that holds the assets (equipment) and forward profit share of whatever is produced. This entity probably recognized the small cash flows from the deliveries to Enami as well. So AUMC is basically a shell, like MDMN, until some sort of progress is made on the production front. Once this production eliminates the debt, cashflow, etc will flow through the AUMC financials. Once the financials are updated to auditing standards AUMC will have an opportunity to list on a normal exchange. All guesses at this point.

Disclaimer (as the most unpopular poster on this forum): for those looking to add or establish a position, all of the above will probably need to be achieved before the stock becomes investable. Otherwise, like investing in Doge, this is akin to throwing darts with a blindfold.

2 Likes
263

That is their goal this year

Financial

To date, a third party is paying for AURYN’s exploration efforts. AURYN’s Board of Directors is monitoring expenditures with a commitment to reimburse the third party (without interest) from production. There are 70,000,000 shares issued and outstanding and AURYN does not anticipate any dilution from our exploration efforts.

Initial cash flow from production will be used to pay off exploration debts and expand operations. We anticipate being debt-free and having fully audited financials prior to seeking to move to a higher tier on the OTC Markets in 2022.

7 Likes
264

The quarterly update should be interesting. I expect to see it early next week…

1 Like