Front channels - it’s not permanent.
7 Likes
Thank you! You ARE a wizard!
3 Likes
Good to know. Tell Baldy. He said he’s 100% certain the shares are permanent. And that was his response after your post, btw.
Hey Doc, why aren’t we raising a straight debt financing loan if theres well over $4M stockpiled for collateral?
Seems weird MC would be ok with giving away potentially $20M on preferred dividends instead of asking existing shareholders for a loan. Unless of course he’s getting kick backs from those preferreds.
Strange. Nobody’s ever heard of this investor. Combine that with it flying in the face of your claim that we would never give away equity, leaves plenty of room for suspicion.
I couldn’t find anything on Srategic Investment SAC
In Chile, “S.A.C.” stands for “Sociedad Anónima Cerrada.” This translates to “Closed Joint Stock Company” in English. It refers to a type of private corporation where shares are not publicly traded and ownership is typically limited to a smaller group of shareholders. This corporate structure is used to maintain greater control over the company compared to a publicly traded corporation.
4 Likes
Until we are advised that there are going to be more than 70million common shares outstanding as a result of this transaction please give it a rest. MC has emphasized over and over again that the 70 million is going to be maintained. If this was going to change this most recent announcement would have been the time to disclose it (Notice of material corporate event).
Regarding the preferred stock, it gives them priority of receiving dividends before common shareholders. At $4million a year it equates to 40 truck loads ($100k per load) ( $5k per ton just in avoiding the environmental penalty). Two truck loads per day, so a total of a maximum of 20 days to pay the annual dividend. After 5 years it’s done!!
We were told that it was impossible to get any financing. Let’s celebrate the achievement!
8 Likes
Zotron,
I appreciate the way you’ve been looking at this for some time now. This was a great back of the envelope calculation based on very limited information at the time. 1st a very small correction since this is just again an attempt at what might possibly transpire.
If we were to fund the repayment of MC ($6million) and the plant ($10million) by sending the ore to Enami without any debt or or dilution (selling shares to fund) this is the number of weeks it would take based on various grades and truckloads per week. Assume $1,000 profit per ounce. 20 ton trucks. 28.35 grams /ounce. 5 day work week.
Auryn/Medinah - 2024 1st Half General Discussion - #79 by Jimmyp1127 (Go to Feb 3, 2024 1st half discussion and scroll to view entire post by Zotron.)
A troy ounce is 31.1034768 grams or 0.0311034768 kilograms. Let’s not quibble, an ounce is an ounce and 20 tons per truckload will now be in the form of concentrate, not head grade ore, or even a reduced tonnage graded from the head grade due to the halo of reduced grade ore scooped up and processed from the main vein structure. Let’s stick with $1000 an ounce profit per ounce. Let’s say the preprocessed ore is only 5 g/t, but as BB has shown, FF processing will typically result in a 2-20X concentrate. So a ton of concentrate will ship not only at a reduced volume from raw ore, but also contain a much higher value per oz based on a $/oz conservative $2,000 per oz of gold. It may be much higher next year and the year after.
What you’re basically calculating is the future sales price depending on the level of purification of the ore.
Z, in your analysis, don’t forget that what is going to be shipped on those 20-tonne trucks is either a “float concentrate” grading out at about 160 gpt gold or a CARBON IN LEACH “concentrate” grading out at about 400-TIMES that 160 gpt figure.
If you start with intra-adit ore with a “head grade” of, let’s say, 40 gpt and you run it through a froth flotation circuit you will average producing a “float concentrate” of about 4-times the original head grade or 160 gpt. A CIL circuit takes that 160 gpt “float concentrate” and further concentrates it by a factor of 200 to 600-times (not a misprint). The next stop for most froth floated ore is a CIL circuit, often located right next door to the FF circuit. Recall that Auryn management told us that we will get a bonus of about $5,000 per tonne if we do the preliminary ore processing (probably FF plus CIL) on-site. They never gave us the breakdown of just what was going to be done on-site.
Auryn/Medinah - 2024 1st Half General Discussion - #80 by DoneDeal (Go to Feb 3, 2024 1st half discussion and scroll to view entire post by BB.)
Also, let’s assume they are not mining at a permitted 400t/day limit on their mine, but only the 100t/day processing limit of their FF plant. So as a conservative measure BB’s example needs considerable refinement from the optimistic numbers presented to a more conservative value 0f $42,000/ wk that Zotron presented, realizing it could be much, much higher based on some of BB’s assumptions. Take either back of the envelope assumption and one can see the financed “loan” will be repaid off in total well before the 5 yr expiration of the contract terms. Bottom line, we are on our way to reaching MC’s vision for a mid-Tier mining company with room for growth.
EZ
PS: Apologies for the several edits where referenced links did not post properly at all; You’ll have to scroll to see the full post by Zotron and then BB’s response that followed. The link I posted several posts back titled “Miners Facing Financing Frustration, Where Will the Money Come From?” was from this year’s PDAC, FWIW and addressed the frustrations shareholders in all smaller mining developers may be feeling.
5 Likes
Exactly right Easy. Any which way you look at it the repayment is not a big issue. Yes it’s very profitable for the financier, so what! Short term pain for long term gain.
They got er done!!!
6 Likes
Yes, as most have figured out, repayment will be immaterial in the whole scheme of things - and MC somehow managed to maintain our 70 Million common shares structure … with ZERO dilution. We have MUCH to be thankful for.
The only question is HOW MUCH ore will the FF cell(s) we are purchasing be able to process on a daily basis. If what some say is true, maybe we’re starting out with a model airplane instead of a commercial jet. Don’t think our guys are that dumb, but there must have been some major deal they got that is a HUGE winner. I think BB said FF systems are modular, meaning they can just be shipped in, placed, and put to work - and moved around where appropriate. Could it be they got a great deal on “used” FF systems? I checked Amazon to no avail (hahahaha!), but here’s a company that sells used froth flotation systems:
https://www.savonaequipment.com/en/equipment/flotation-cells-e41511
I’m seeing a lot of “make an offer” language on this latter website - so the demand for these things must be relatively low. I’m thinking a large portion of the money we’re gonna be expending will be to construct a camp (living quarters for workers) and maybe improve infrastructure (roads, etc.). Others know more than me on this - will be interesting to learn.
In my view, yesterday was MOMENTOUS - yes, we did it ourselves, we did not have to drill 1,000 core samples to get a loan, and yes it appears we will make our money back … and more. We should all be very grateful, we have a leader who is a can-do, do-it-yourself kind of guy. If I make a profit, I think I just might be asking MC for the name of his favorite US charity and make a nice donation in his honor. Thank you, sir.
4 Likes
Again, that’s why we should only work on known facts. We don’t know the terms of the financing, so we can’t speculate as to what the financier actually gets.
And I agree, if it’s permanent, it’s very expensive. But at this point we don’t know.
Please direct me to the Auryn notice, filed OTC docs, or other contracts which state this as a fact. Currently, we don’t know one way or the other because Auryn has not provided the details. Any statement either way from anyone, other than Auryn, is speculation.
There are currently 70 million common shares outstanding. until we are advised by management that that number has changed, it is still 70 million!! Let’s move on.
4 Likes
Jak the man talks to MC. Reach out to MC and ask him the very same question.
1 Like
Hmm. Market doesn’t seem to agree. MDMN/Auryn both down and no volume.
And, just an observation and not an accusation (we all have our own investment strategies), but if it was so momentous and all of those on this board are so sure Auryn is a guaranteed winner, why has everyone only thrown a grand total of $660 (1500 shares) to buy Auryn today? Why hasn’t everyone on the board loaded up on shares today?
I think every person here is down 90%? I have chased my tail on this one for the last several years and have a relatively large position - don’t need any more. And it’s not like this company is paying for publicity, right? Did you see it on KITCO or anywhere else yesterday? Me either.
3 Likes
And until Auryn posts it in public, it’s still speculation, and if you want to get technical about it, it’s also hearsay. Defined as not having actual knowledge oneself, but referring to another’s statement about a topic as true. Wizard didn’t even attribute a source to his statement.
Please note, I am not saying Wizard’s statement is false. I may very well be 100% accurate and may have come directly from Auryn; however, Auryn has not publicly confirmed the statement, therefore it’s speculation and hearsay until Auryn does so.
1 Like
Jak,
I’m frustrated too that I had to dig to get the real truth. But it has been confirmed that there is no equity beyond 5 year preferred dividend. Even Baldy admitted he was wrong after speaking directly to MC last night.
So yes a great victory that we are going to be financed and the 70M share structure is preserved.
However, it still calls into question for me why we are ok with the possibility of paying $17M± in finance charges to obtain $4M when:
A.) Supposedly there’s $4M in collateral stockpiled or could be with some more stockpiling.
B.) Shareholders weren’t formally/properly solicited to beat the terms of this current group. Wizard claims they were, but i was never informed and im sure most of you weren’t either.
2 Likes
Why did you need to wait to be solicited? We all knew they were seeking financing. It’s always easy to be a Monday morning quarterback! Could have, should have, would have.
2 Likes
You’re kidding right? How would i even know how much they were seeking?
Its a coordinated effort. Not just one shareholder asking questions. Is it so outrageous to think that 50-100 shareholders with skin in the game up to their ears would be willing to loan $4M with far better terms than $17M finance charge?