Ok- 2023 second half, here we go…
From BrecciaBoys last post.
:: At the “informational meeting” in Las Vegas, several years ago, Maurizio made it quite clear what the overall GAME PLAN was. The goal was simply to become a MID-SIZED GOLD PRODUCER. There were no timing guarantees given.
I’ve seen this happen with smaller mines out in western USA and down South America way. A owner then uses it like their personal bank in some ways.
I know “this” Mining Co on paper; will be responsible to share holders. Just like any stock co. ((YEA we all know how that goes)). In the end, a owner is the owner, how ever they want to play (or tap) it. We’ve all seen the perks a owner of a Co. has above and beyond stock. (go wash my car, and pick up my laundry on the way" etc. tap into some $ extras). Im just splashing some cold water.
I’m always got in the back of my mind: How we are being financed??
Not by Shark Tank"… or the stock market MMs.
Some day this all has to come out of the dark into the light.
Some make a buy for their companies stock?
Some play shell games.
Some cheat.
Some just stay small and never expand beyond what works for them.
I found most of this out in the shipping sector
which I had first hand experience and knowledge in.
It will be what it is, we don’t have much say about its outcome. We are all on the bus just for the ride.
Its been one hell of a long ride.
Enjoy the 4th. But keep a eye open. C.s
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Hi ColdSnow,
I think most of your concerns would have more validity if management DID NOT own a large percentage of the shares. I’ve seen plenty of management teams that owned less than 1% of an issuer’s issued and outstanding shares get big salaries and nice option packages. Maurizio has had plenty of opportunities to screw the shareholders but he hasn’t opted to. He could have done a “cramdown” financing and given himself a boat-load of ultra-cheap shares instead of providing Auryn with cash without any interest charges. This cash does not need to be paid back unless and until the profits from production allow that to happen. He’s either ultra-generous or he knows a lot more than the majority of us do.
One thing we don’t have very good visibility of is how much RISK Maurizio was taking when agreeing to those terms. Back at the informational meeting in Las Vegas he made a comment that, “the market will take care of itself”. This made it sound like the future was already some type of foregone conclusion. To my knowledge, we don’t know with 100% certainty WHO exactly is cutting the checks. Is Maurizio partially acting in an agency capacity for some other much larger party? I remember when Kevin flew up to Toronto to meet Maurizio at the PDAC meeting. He reported back to us that this Maurizio guy knows absolutely everybody in the industry.
There are an awful lot of majors and mid-tiers out there that have pipelines of upcoming projects that are getting awful skinny. The MR/MR on their balance sheets are de minimis. Everybody’s busy chasing low grade ore way down deep and here we are with the grades that we’ve got. I’d love to see Maurizio keep 100% of the DL2 Vein and maybe throw a bone to a major or mid-tier by giving them a shot at a partial ownership interest in 1 or more of the other 6 MAIN VEINS. This is a VEIN SET which is a group of discrete veins with similar characteristics and almost always related to the same underlying magmatic source. Auryn is not going to get to those veins for several years anyways by themselves.
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It’s a good bet that gravimetric concentration will have a major role in the future exploitation and production of the Fortuna. What are the possibilities of concentrating the ore using gravimetric plants in other areas of the ADL? Is the 5g/t found in the waste dumps amicable to gravimetric concentration? My guess is it is not economically feasible, but who knows? Consider the grades that were found at the Merlin 1 Vein averaging 27 gpt gold at surface. How likely are the Merlin 2-5 Vein grades similar to those found in the Merlin 1 vein? Management needs to find out. Can shallow “exploratory open pits” be permitted and developed, primarily to locate major veins similar to DL at the Fortuna? The NORTHERN downslope off of the plateau has ultra-rich veins running at 90-degrees to the NW trending Merlin and Fortuna Vein system. These are found just 700 meters below the plateau. Cash is needed and that is what exploiting the DL is all about.
It is obvious to me why MC is pursuing this low capital high grade opportunity by self booting the DL project. If gravimetric concentration results in only 20 g/t would I be disappointed? Not at all. If only 5000 tonnes of concentrated ore per month @ 20 g/t is direct shipped to ENAMI or Til-Til there would be $40M in revenue per year! This is an absurdly low ball example considering the 5 truckloads of ore shipped to the mill from the Larissa adit amounted to about 75 tonnes of raw ore. Isn’t there stockpiled material removed from the adits over on Merlin 1 that could be gravimetrically concentrated to extract even lower free milling grades of AU in that material?
Gravimetric concentration will be a key component qualifying for a higher exchange listing. Awakening and expanding a growing interest is about to start.
HAPPY 4th of JULY!
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Head buried in the sand comes to mind. Anyone who bothers to spend 30 seconds to revist the original deal where Auryn took control of the assets/CDCH in exchange for forgiving a small liability would appreciate that the shareholders have already been screwed.
I have to laugh every time we read references to how AUMC/MDMN was able to avoid the massive dilution that early stage miners suffer as they get into “production.” Investors here have already suffered from 95% dilution and the project still lacks a defined resource.
If you are buying shares today congratulations, you are avoiding dilution and hoping that some sort of production eventually occurs to pay off an increasing stack of debt. However, if you have owned shares since AUMC has taken control, you have suffered from one of the most eggregious cramdowns I’ve ever witnessed and the project has barely advanced. Congrats!
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Thanks Baldy for that posting. Its good to take the rose colored glasses off once in a while… .
Baldy,
Why you continue to gas light here using partly truth and partly fiction is shameful for an experienced professional such as yourself. I won’t conjecture what the motive is behind your continued attacks on shareholders intelligence may be here. We can put up with of your constant pessimistic gaslighting. Most shareholders here have followed this company long enough to be aware of the situation. You know that in lieu of the standard spending of millions drilling out and defining a resource there are alternatives. Well financed projects file an NI 43-101 to promote a defined “resource” and thus gain the attention and confidence of investors. A cash strapped bootlegging operation such as MC has with the ADL will depend primarily on defining grade and tonnage, and then project a continued cash stream as exploitation gets underway. There are few new investors here. MC is not relying on frequent PRs to continue operations or the usual method of selling shares to pay expenses. The day when there are actual results to report will see frequent PRs to attract investor attention from the market. The company has taken the steps necessary to make informed decisions regarding the most efficient and profitable method of gold recovery and concentrate production. I’m waiting to see the essential equipment needed in finding a higher margin alternative for processing and sale. Then we may see news reported. I’m beginning the 2nd half of this year with optimism and confidence that management has a conservative plan to move things forward in the best possible way.
EZ
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Always attacking the messenger but unable to address the points being made. Maurizio and crew took the assets in exchange for forgiving $300k in liabilities. It was actually a very creative “cash call” on a company with no cash. I would know as I was part of those discussions in my last, unsuccesful, attempt to salvage my investment in CDCH. Specifically:
The Company previously owned a 99.8% interest in a Chilean subsidiary, Cerro Dorado Chile (“CDC”). In January 2016, the Company entered into an agreement with Auryn Mining Chile, SpA (“Auryn”) through which CDC’s ownership of the Lonco Millarepu 1-60 and the Fortuna 61-120 mining claims was transferred to Auryn in exchange for a 5% equity ownership of Auryn.
In early 2017, Auryn announced a cash call, which based upon the Company’s 5% holdings, required a further investment of $300,000 in order to maintain the Company’s 5% holdings in Auryn. At the Company’s Annual Shareholder Meeting, held on June 5, 2017, the Company approved an offer from Auryn Holding Corp (“Auryn Holding”), a separate but related entity to Auryn, to loan funds to the Company for purposes of satisfying Auryn’s cash call, in the amount of $300,000, pursuant to a no-interest loan, and in consideration of such loan, 500,000 shares of preferred voting stock of Cerro, which carry with them 1000-for-1 voting right
This is the definition of a cramdown with the likes of Maurizio owning 26 million shares of what was essentially a shell with a few worthless tenaments and swallowing up CDCH. Ironically, CDCH got a better deal on a relative basis vs. MDMN but that is little consolation.
These are facts which I’m happy to debate. If you are of the opinion that finding the DL vien (for the third time) over a seven year period while racking up $3,990,000 (as of the first quarter) in debt is progress that is your perrogative. However, those attempting to “piss on my boots and tell me its raining” while lauding Maurizio for his “generosity” and applauding a lack of dilution are truly in a state of denial.
As previously stated, if you are buying shares today the historical context is pretty much irrelevant but any references to this project being inline with the typical 10-20 year discovery to production timeline or unique in the lack of dilution are simply insane.
Know what you own so that objective investment decisions can be made.
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I really hope Maurizio hits you right on your mouth and makes you swallow your words John!
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Another solid rebuttal.
I’m simply stating what has already happened not predicting anything (where I would have to “eat my own words”).
People get screwed over in the markets all the time but there’s nothing more pathetic than those getting screwed continuing to praise the “screwer” b/c they lack awareness of what has occurred.
tedious
tē′dē-əs
adjective
- Tiresome by reason of length, slowness, or dullness; boring. synonym: boring.
- Moving or progressing very slowly.
- Involving tedium; tiresome from continuance, prolixity, slowness, or the like; wearisome.
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It’s obvious to me that they are waiting for some key info to come out before they send out the quarterly report. . . wouldn’t you say Kevin ???
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I wasn’t commenting on the company, I’m more optimistic than ever. I was replying to a post.
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Kevin,
I really don’t think its fair for you to label that poster as tedious. Yes, I think we all can admit that Brecciaboy has been spouting the same misplaced euphoria for the better part of two decades (ATM machine, Les said, Maurizio said, mid-tier miner, at the informational meeting they “said”, non-dilution, 1 in 10,000 miners to get into production, dividends, 90 gpt material, majors circling the wagon, free loans, DL vein catalyst, multi face mining catalyst, new red truck catalyst, etc. etc. etc. )
But, give the guy a little slack. At this point, he’s buried so deep in this investment that objectivity has been vaporized. There is simply no negative (over the past decade) that would ever be considered b/c that would kill the “mountain of gold thesis” that has been the foundation of his narrative for longer than anyone here.
I think we all can admit that this is no longer about a return on invesment but rather a confirmation of intense conviction. Personally, I hope that the conviction is eventually confirmed. Its a pretty cool story from start to finish and someone deserves to be proven right, epecially BB, but let’s not pretend this is still about making money.
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OMG, Baldy, I think that was an attempt at humor. We don’t get to see that side of you very often. OK, really never. Wow, so maybe there is some hope. Anyway, A long time ago I bought this stock twenty years too soon. For the last twenty years if I ever needed a reminder of what a mistake it was, you’ve been there for me. The condescending and bullying posts just added clarity. As I remember, you have some weird agenda that involves BB. Whatever, it’s gone on to long, get some help. The tedious part is we’ve had to witness the whole thing.
The good news is, those "20 years too soon stocks " are just about 20 years old. The birthday party could be as soon as NEXT WEEK.
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I’m the one that needs help??? Now that IS humorous
If the stock rallies 2000% it will get back to where I sold it (MDMN) 7 years ago and I sold at that point for an 80% loss.
If peeps buy into the “mid-tier miner mumbo jumbo” (based on Maurizio saying that’s was his game plan at the informational meeting) they would be nuts to not aggressively be buying here. Averaging down is the only way to breakeven for some of the ol’ timers (with the exception of Kevin who was awarded some shares in AUMC for his contributions). Based on AUMCs near zero volume and the paltry volume on the MDMN side, its pretty clear that most aren’t throwing more money at the opportunity (offers on the right).
Not sure if posting my opinion on this board is any different from others who are simply holding a losing position. Each day is a new opportunity to buy or sell and one doesn’t need to be stuck with a massive loss to participate on a message board whether they have been tedious and right in their skepticism or tedious and wrong in their optimism.
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Baldy, If you had just posted that picture of Les and the poodles I would of sold twenty years ago and never looked back. (when I saw that for the first time I knew we were screwed) From your post it was confirmed that you are, in fact, the smartest person in the room, (sold for an 80% loss) and I’m still an loser. The only bright spot is that I did do as you suggested. Once they put Kevin in charge I started buying again. So, here we are. I have millions of shares under a penny and the owner of the company has billions(?) over a nickel. At least he’s a bigger loser than me. What did Parcells say? “You’re only as good as your record says you are.” Medinah’s record sucks. You’ve been right for 20 years. You will continue to be right until you’re not. It’s never been about your message. Its the way the message is delivered.
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My bad Kevin.
I was confusing you with Kevin Tupper. I commend you for owning a slug of shares under a penny even though the stock is still trading 83% under that mark. Just to be clear the “owner” /Maurizio and friends own a few hundred million shares of MDMN well over 5 cents but they recovered all of those losses when they took the assets. Per the financials, Maurizio owns 26M+ shares of AUMC which is trading at 60 cents. If he were able to sell those shares at today’s prices he would come out of this sheetshow
with very nice gains (even when offsetting the losses incurred in MDMN). The benefits of creative financing.
I’m certainly not thinking I’m the smartest in the room, I’ve taken my lickings/losses, just trying to sprinkle a bit of reality dust and offer a counter opinion to some of the euphoria. It’s worth pointing out that the magnitude of definsiveness to my counterpoints only serves to highlight the insecurity of those trying to build foundational, fundamental argument for the mountain of gold thesis.
As soon as I’m proven wrong, I’ll be the first one to disclose that I’m buying shares (in AUMC). As previouslty stated, in my opinion, I’ll have plenty of time to buy those shares at these levels if they finally start to execute b/c nobody in the markets is paying attention and the current valuation is rich. Time will tell.
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Spot on Kevin! The all too numerous personal and condescending attacks are all too clearly not about the money!
If shareholders see a meltup in the share price before the end of the year we’ll all be celebrating, and newbies will be buying in at higher price. I’d call that a win - win situation. Expect to see chimney completion, favorable assay results, and positive progress reported in upcoming company notifications. We’ll need to see the lease or purchase of equipment needed to begin the necessary beneficiation process that has been selected. We’ve already received several reports preparing the mine for exploitation at the current level and forthcoming sub-levels. Some ore from the access tunnels has been stored and await beneficiation. Once fully prepared, we can expect exploitation will begin on multiple levels and reported accordingly.
The history of this stock is surely interesting, however, the majority of shareholders here have lived through it and don’t need to hear it repeated again ad nauseam. From this point forward it’s all about the future!
EZ
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Bottom line with all this back and forth is that if this truly is a world class deposit, everyone will make money despite all the bs that took place. Baldy is correct on the past but I think he’s negatively biased toward the future. This deposit appears to be world class. Time to monetize it. Auryn seems to have the right leadership in place to make this happen. I’m very excited and will continue to add shares as this is bound to double, triple, and quadruple.
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