Today was a very good day on many of the mining stocks. Anyone have any favorites to share on the Other Mining Stocks 2024 thread? I’m sure others would like to hear about them while we are looking to hear news here on AUMC.
EZ
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Hi EZ,
In regards to “getting in just a little too early”, after many years of chasing drill results, it all seems so clear to me now, but not so much back then. The World Gold Council’s (WGC) historical stats are very compelling and they clearly identify where the “sweet spot” is in investing in the junior mineral explorers and developers.
There’s a 1-in-1,000 chance for a junior explorer to not only make a significant discovery but to do all that is necessary to get it into production i.e. complete baseline environmental studies, permitting, funding of exploration and development activities, accessing the ore via a vertical shaft or a horizontal adit, infrastructural advances like roads, a camp, generators, funding of an ore processing facility, truck and equipment purchases like wheel loaders, etc. There are a seemingly endless number of “boxes to check” for a junior to get itself to the brink of production.
Arguably, Auryn has already been in “production”. They have stockpiled an undisclosed amount of extremely high-grade ore over the course of over 200 days, taken directly from the vein itself, which will serve as “feed” for their new froth flotation plant. Shipping previously froth floated ore will allow Auryn to approximately double their income.
For that lucky “1-in-1,000”, however, it takes an average of 24 years to go from the commencement of exploration to the first day of production. In retrospect, why in the world, would anybody (me included) buy shares of a junior explorer UNTIL they had BOTH made a viable discovery confirmed by assays and metallurgical studies, and were at the brink of going into production?
Having said that, what are the odds of not only making an extremely high-grade gold discovery and checking off on all of those boxes, but actually putting it into production when the price of gold is at all-time-highs and the number of shares outstanding is only 70 million? Keep in mind that in mining, when the price of gold goes up, nearly all of that increase drops straight down to the bottom line. There are an awful lot of stars that have been lined up pending the closing of this funding. I’d be hard pressed to identify a comparable funding arrangement with more at stake. Godspeed Maurizio, and thank you!
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Hi BB,
You’ve provided an abundance of information and things to consider over the year, and especially recently. Recently the subject arose concerning the chances for Auryn’s share price to advance to $5 per share. What are your thoughts about the likelihood?
TIA
EZ
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This week a couple of forum participants quoted some often cited mining statistics that got me thinking. We’ve all heard that there is somewhere in between a 1-in-1,000 and perhaps 1-in-10,000 chance of a junior explorer ever making a significant mining discovery that made it all of the way into production.
We’ve also heard that for that lucky junior explorer the average time it takes from the commencement of exploration to that first day of production is somewhere in between 15 years (according to Newleaf’s source) and 27 years according to the World Gold Council as cited by Pierre Lassonde at one of the Grant’s Interest Rate Monitor meetings in NYC.
As far as the ADL deposit’s scoreboard, we’re being told that 2016 should involve the production of 5,000 gold ounces over about the last 4 months in the year. Let’s estimate 1,000 ounces in Sept. and Oct. and 1,500 ounces in November and December. In 2017, we’re being told to expect at least 25,000 ounces of gold production or an average of about 2,000 ounces per month. If we’re producing 1,500 ounces per month at 2016 year end then let’s say we’ll be producing about 2,500 ounces in December of 2017. If we assume we’ll be producing 1,500 ounces per month in the first 6 months of 2017 and 2,500 per month in the last 6 months then you’ll get your “about 25,000 ounces”.
If AMC is intentionally “sandbagging” their production estimates in order to “underpromise and overdeliver” then the scoreboard could look even more impressive. I’d keep an eye on the first several months of production tdo see if they are indeed near 1,000 to 1,500 ounces per month.I’m wondering if this current lack of interest in our stock is basically the market saying “hay Medinah, PROVE that you belong in the 1-in-5,000 club”. Those of us that have been following AMC and how they operate have a strong feeling as to what they’re going to do but others not so familiar with them have obviously chosen to take a wait and see approach actually which makes sense. I’d be curious as to how many mining analysts and mining investors follow this investment paradigm because it seems to be kind of a no-brainer.
A post from July of 2016
BB, you reallly need some new material. Claiming/assuming that AUMC is the 1-in-1000 (ie: in production) for the better part of 8 years has not been a sound narrative.
Easy, the “subject matter” of $5 per share arose from you. Maybe start with the likelihood of $1 for AUMC or actualy being able to trade shares in MDMN as a starter. Maybe wait for some closure on the recent financing. There are a lot of binary and/or existential milestones that need to be hit.
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BB,
In retrospect, why in the world, would anybody (me included) buy shares of a junior explorer UNTIL they had BOTH made a viable discovery confirmed by assays and metallurgical studies, and were at the brink of going into production?
Baldy, I agree with what you present above. Exactly why I’ve been patient with this one for more than 8 years and look at the many good outcomes that are possible. I’ve already paid my dues here, and being fully invested, I promoted Karora for quite a while and accumulated a great deal of shares (see my most recent post on another thread). Others here contributed a great deal to the DD on KRGGF and other stocks. I don’t remember who recommended that one originally, but we used to learn from each other on this forum for leads to do further DD on our own. Someone recommended Great Bear, many thanks for that lead, Kirkland Lake Gold and several others for the mergers that ensued, and led to comfortable positions that I now have in AEM, NEM, WPM, KGC and a few other nicely producing equities. I don’t complain about my choices because they are mine, built on the knowledge of others. I am very grateful for those savvy investors that used to post information on the other stock threads on our forum and would welcome a return to sharing information from those who like to contribute to the success of everyone, including especially you BB, and not so much BE who seems to work towards his own ego. I have great confidence that MC is doing everything to bring this stock to profitability for all shareholders. I don’t need to worry about when that will happen. I know others with far greater insight and knowledge are working hard to bring about profitable production from not just the Fortuna mine, but the entire ADL.
EZ
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Hi EZ,
(DISCLAIMER: DO NOT PLACE INVESTMENT BETS BASED ON THE FOLLOWING ANALYSIS. THE TERM “GRADE” IS A LOT MORE COMPLICATED THAN YOU MIGHT THINK.)
In the mining sector, share prices average 30.21 times a company’s EARNINGS PER SHARE (EPS) figure. This is from a recent survey done by the Stern College of Business at NYU. A $5 Auryn share price would therefore necessitate earnings of $0.165 per share because 30.21 times $0.165 equals $5. With 70 million shares outstanding, Auryn would have to earn a total of: 70 million shares times $0.165 or $11.55 million per year in order to justify a $5 share price. The question becomes can they pull this off. Auryn currently trades at $0.35 per share, thus a $5 share price would represent a “14-bagger” from current levels.
The “throughput” of the new FF plant, when completed, is 100 tonnes per day. So, if you drop 100 tonnes of crushed ore every morning at the front porch of the FF plant, the amount of contained gold in that ore will depend on the grade of the ore coming out of the adit. This is called the “ORE FEED GRADE i.e. the grade “fed” into the FF plant. You might also know it as the “mill grade”, or the “run of mine” grade or the “intra adit head grade”. The “ORE FEED GRADE” contains both vein material and the less well-mineralized wall rock material. The less well-mineralized wall rock material is said to “DILUTE” the grade of the ore contained within the vein. I’ll warn you right now that the various categories of grades can be very confusing and that’s partly why people have a tough time understanding just what Auryn is sitting on.
Auryn has been assaying the DL2 Vein via a series of “channel samples”. This measures the “vein only grade” without considering the much lower grade of the somewhat “sterile” surrounding wall rock. The “working faces” of the adits, as well as the adits themselves, average 3-meters in width. This is the minimum width that will allow heavy equipment to be used. If the vein averages, let’s say, 1-meter in width, and if the wall rock is completely “sterile” and contains no gold, silver or copper, then the “ore feed grade” being fed into the FF plant every day, will average one-third of the “vein only grade”. When you blast the working face of the adit, the vein material and the wall rock material get commingled on the adit floor.
The “vein only grades” of the DL2 Vein, reported to date by Auryn, include 164 gpt gold and 150 gpt gold found at the intersection of the Antonino adit and the DL2 Vein. Auryn didn’t have a “DISCOVERY HOLE”, it had a “DISCOVERY INTERSECTION”. These were the averages from groupings of “channel samples”, which is how you assay veins. Basically, a 2-inch or so deep “channel” is dug from one edge of the vein to the other and the rock chips are “bagged and tagged”. Auryn also got results of over 100 gpt from 12 channel samples done at the intersection of Shaft A and level 2. These too were “vein only grades”. They got an average of 85 gpt done via channel samples of the DL2 Vein in the “old works” at levels 1 and 2. These too were “vein only grades”. These “vein only” grade results, which average 124 gpt gold, were from the gold contents only and did not include any contribution from silver or copper.
At the smelter test done at the Plenge Lab in Lima, Peru, Auryn got results of 128 gpt gold (another “vein only grade”) again for just the gold. Note how CONSISTENT these “vein only grades”, that only measured the gold content, are. Based on the results of the Enami smelter, this 128 gpt “vein only/gold only vein grade” figure would be translated into about 157 gpt “GOLD EQUIVALENT” when you factor in the “by-product” credits attributable to the silver and copper whose grade is easily high enough to make them “payable metals”. No processing fees were charged by the Plenge Lab. Thus, those 128 gpt gold and 157 gpt “gold equivalent” grades (which included the contribution from the copper and silver) were “GROSS SMELTER GRADES” (as opposed to NET SMELTER results).
The Enami smelter NET SMELTER RESULTS averaged 57 gpt for the gold, 978 gpt for the silver, and 3.23% for the copper. This equals 70 gpt “gold equivalent”. BUT THIS 70 GPT “GOLD EQUIVALENT” FIGURE IS AFTER ENAMI TOOK OUT THEIR SMELTING FEES AND ANY PENALTIES ASSESSED FOR IMPURITIES. The actual “vein only grade” figure would have been near the Plenge results of 157 gpt “gold equivalent” being that it was the exact same ore shipped to both smelters. Enami wanted a pretty large slice of the pie that Auryn management balked at.
Note how close that 128 gpt “gold only/vein only grade” from the Plenge Lab is to that 124 gpt “gold only/vein only grade” average shown above. We still need to add in the silver and copper contributions to these approximately 128 gpt gold only figures. This is going to put you back into that 157 gpt “gold equivalent” neighborhood for the overall average “vein only grade”. Remember that when you use the term “gold equivalent”, you’re incorporating the contribution from the silver and copper. Gold trades at about 86 times as much per ounce as silver does. Thus it takes 86 gpt silver to add 1 gpt to the “gold equivalent” figure. Again, I’m sorry about the confusing nature of these classifications but understanding this is critical to appreciating just what Auryn has been finding.
Two points need to be made, not only are all of these grades literally through the roof (compared to the worldwide average “ore feed grade” of only 4.18 gpt), they are extremely CONSISTENT.
Unfortunately, to add to the confusion, there is also HISTORICAL PRODUCTION DATA to factor in. Over the course of 30 years, the artisanal miners averaged being paid 64 gpt GOLD ONLY from Enami AFTER ENAMI TOOK OUT THEIR FEES AND ANY PENALTIES ASSESSED. This is a “NET SMELTER FIGURE” i.e. “NET OF” Enami’s fees and penalties. Enami did NOT pay the artisanal miners anything for the silver or the copper contributions because up high in the vein structure at levels 0,1, and 2, both were low.
Be careful using these HISTORICAL PRODUCTION FIGURES for comparative purposes. They are both a “NET” figure (related to Enami) and don’t include any contribution from the silver and copper which are contributing significantly (about 20%) to the grades found at level 3. A significant change has occurred between levels 2 and 3. Not only did the gold grades increase markedly but the silver and the copper started contributing significantly.
Now that Auryn is testing out level 3 of the DL2 Vein, the silver and copper are extremely high. This is the norm for these “MESOTHERMAL VEINS”. BOTH THE GRADES AND WIDTHS INCREASE WITH DEPTH. THIS IS A VERY, VERY POWERFUL PHENOMENON WHEN NOT ONLY DO THE “VEIN ONLY” GRADES INCREASE MARKEDLY BUT THE VEIN ALSO WIDENS.
A wider vein means that after blasting, more of the material on the adit floor is “the good stuff”. A 1-meter wide vein with a “vein only grade” of 90 gpt “gold equivalent” will result in an “ore feed grade” of 30 gpt “gold equivalent”. Whereas a 1.33-meter wide vein with a “vein only grade” of, let’s say 100 gpt “gold equivalent” will result in an “ore feed grade” of 44 gpt “gold equivalent”. This is a 46% increase in the “ore feed grade” just because of a small amount of widening of the vein and a slight increase in the grade.
Again, when using that 64 gpt HISTORICAL PRODUCTION FIGURE of the artisanal miners, you need to keep in mind that this is a NET figure after Enami took out their fees and penalties and you have to keep in mind that, unlike at level 3, there was no contribution from silver or copper. The “sample size” of this HISTORICAL PRODUCTION FIGURE was 2,000 tonnes which gives it a lot of statistical credibility.
BACK TO THE EARNINGS PER SHARE ANALYSIS AND THE APPROPRIATENESS OF A $5 AURYN SHARE PRICE
We need to estimate what the “ore feed grade” is going to be for the ore being mined at level 3 and “fed” into the FF plant. Assuming a vein width of a 1-meter average (over “X” amount of time) and keeping in mind the 3-meter width of the adit and its working face, the “ore feed grade” will be about one-third of the average “vein only grade” in terms of “gold equivalents”.
For the sake of conservatism, let’s round down those 157 gpt “vein only” grades measured in “gold equivalents” to a 90 gpt “vein only” gold equivalent vein grade” being dropped off every morning at the front porch of the FF plant. (EVEN BETTER YET, WAIT FOR MANAGEMENT TO REPORT THESE GRADES AFTER A SIGNIFICANT AMOUNT OF TONNAGE HAS BEEN PROCESSED BY THE FF PLANT.)
At the risk of confusing you even more, there will be yet another grade to keep an eye on and it is an important one. This is the “FLOAT CONCENTRATE GRADE”. This is the grade of the product of the FF plant which is called a “float concentrate”. It is critical because it is the EXTREMELY HIGH-GRADE material being sold. The grade of the “float concentrate” will be in between 2 and 20-times that of the “ORE FEED GRADE”.
AGAIN, FOR THE SAKE OF CONSERVATISM: Assuming a 90 gpt “gold equivalent vein grade” (voluntarily discounted from 157 gpt), divide that by 3 (due to the relative widths of the working face and the vein) and you’ll get the estimated “ore feed grade” of 30 gpt in terms of “gold equivalents”. You do this because only one-third of the working face of the adit is composed of “pure vein” material; the rest is somewhat “sterile” wall rock. Of that 30 gpt figure about 24 gpt of it is associated with the gold content.
100 tonnes of 30 gpt “gold equivalent” ore will contain about 3,000 grams of gold (100 times 30). When you divide 3,000 grams of gold by 31.1 grams per ounce of gold, you get 96.4 OUNCES of gold delivered to the FF plant every morning. However, the FF plant is NOT going to “RECOVER” 100% of all of that gold. There will be a “recovery rate” that the engineers will calculate. A lot of ore processing facilities will average a “recovery rate” of about 90%, but we need to remember that the gold particles in this ore are very tiny i.e. “fines” and “ultra-fines”. This makes the gold somewhat “refractory” or tougher to recover than more “coarse” gold. Froth flotation plants are the treatment of choice to recover “fine” and “ultra-fine” gold particles that are somewhat “refractory”. The copper and silver will probably have higher recovery rates than the gold. For the sake of conservatism, let’s assume that the overall “recovery rate” for all 3 metals combined averages only 80%.
Of those 96.4 ounces of gold dumped off at the front porch of the FF plant every morning, perhaps only 77 ounces (80%) are “recoverable”. Next, the question becomes, how much might it cost Auryn, in terms of ALL IN SUSTAINING COSTS (AISC) to produce each ounce of gold contained in the “float concentrate” it will be selling.
The worldwide average AISC is about $1,000 per ounce. When you’re dealing with extremely high-grade ore, however, the AISC is going to be extremely low compared to the norms. Let’s say that the best Auryn can do is to average an AISC of $1,000 per ounce. (I do not for a minute think it will be that high, but for the sake of conservatism let’s go with that). At $2,500 gold per ounce, this leaves a profit margin of about $1,500 per ounce. When you multiply that by the production of 77 ounces per day, you get an estimated daily profit of about $115,000 per day. I admit that this doesn’t sound like a very big number to most of you.
If you work 300 days per year, this represents annual profits of about $34.7 million. KEEP IN MIND THE VARIOUS ASSUMPTIONS THAT HAVE BEEN MADE AS WELL AS THE VARIOUS CONCESSIONS I HAVE MADE. With 70 million shares outstanding, this $34.7 million in annual profit represents an EARNINGS PER SHARE of about 49.5 cents per share. Multiplying this figure by that 30.21 average “multiple” of EPS for the mining sector, you’d get an expected share price of about $14.90. This is a “42-bagger” from the current share price. THIS IS BY NO MEANS A PREDICTION OF SHARE PRICE PERFORMANCE. It might suggest, however, that something is not quite right aout Auryn’s current valuation. A company should not be able to have its share price increase 42-fold if the current valuation is accurate.
To answer your question, EZ, yes, I think that a $5 per share stock price is VERY doable once the FF plant is commissioned and dialed-in.
DISCUSSION
The story here, in regards to Auryn/Medinah, is all about the potential for insane levels of EARNINGS PER SHARE. The “EARNINGS” part of that fraction are a function of GRADE and a low level of ALL IN SUSTAINING COSTS (AISC). The “PER SHARE” part of that fraction has to do with the low number of shares outstanding. This is a result of management’s ability to make a “POSITIVE PRODUCTION DECISION” without selling hundreds of millions of shares in order to fund diamond drill programs.
When you study the data related to GRADES, you need to study all of the data in its totality, and you need to constantly overlay new findings over older findings. The HISTORICAL PRODUCTION GRADES are critical to appreciate partly because of the “SAMPLE SIZE” involved. Over 2,000 tonnes of ore was shipped to Enami and Enami paid 64 gpt for the gold only. “SAMPLE SIZE” is critical to establishing statistical certainty. As mentioned many times, this 64 gpt figure was AFTER ENAMI TOOK OUT THEIR ORE PROCESSING FEES AND DEDUCTED ANY PENALTIES RELATED TO IMPURITIES. These findings become the foundation for your grade analysis.
The TREND of the historical grades realized is also critical. In the top third of the area mined by the artisanal miners, they averaged an Enami paycheck pegged to 54 gpt gold. In the middle third, they averaged 64 gpt gold and in the bottom third they averaged 74 gpt gold. Clearly, both the grades and vein widths were improving with depth way back then.
The 164 and 150 gpt “vein only” grades obtained at the level 3 intersection of the Antonino Adit and the DL2 Vein SERVED TO CORROBORATE THE STELLAR GRADES AVERAGED BY THE ARTISANAL MINERS. They also corroborated the fact that the vein was getting both richer and wider with depth. The large “SAMPLE SIZE” of the HISTORICAL PRODUCTION DATA set the bar. The subsequent assays over time corroborated the level where that bar was set.
The smelter test results from the Plenge Lab in Lima, Peru, (128 gpt “gold only/vein only”) provided yet further corroboration for the ore at level 3. Clearly, the stellar results obtained by the artisanal miners had not only been verified but exceeded.
Subsequent to these tests, Auryn went into “mining and stockpiling” mode for over 200 days before suspending operations to concentrate on the permitting and funding of the FF plant. Management has not yet commented on the tonnage or the grades of the stockpiled ore. We know that the ore was mined “directly from the vein”. Once reported, the grades will go into the “vein only/gold equivalents” category because of the high-grade silver and copper present at level 3. If I were the funder, I would not allow Auryn management to release those tonnage or grade figures until the deal had closed. I think by now, we have a pretty good idea of the approximate grades involved.
One accomplishment made by management that doesn’t seem to be appreciated is that they have successfully ACCESSED THE ORE. The 2 options to access the ore are typically by sinking a vertical shaft and building a headframe or to come in from the side via drifting a horizontal adit. Auryn chose the latter. The Antonino Adit, that used to be an exploration adit, now becomes the PRODUCTION ADIT.
In this analysis, I rounded things down as much as I could without losing the integrity of the analysis. The assay results are what they are, you either trust them AND UNDERSTAND THEM or you don’t. I am not omitting any lousy assay results. From an ECONOMICS point of view, people forget that when the POG goes up, the incremental increase tends to drop straight down to the bottom line. The POG has “snuck up” over $600 per ounce in the last 12 months. But once again, don’t concentrate on TOTAL EARNINGS. Instead concentrate on EARNINGS PER SHARE. This is the variable that is most closely tied to SHAREHOLDER REWARDS.
In regards to that $115,000 profit per day, this would only be $69,000 per day in profit if the POG were flat for the last 12 months, BUT IT HASN’T BEEN FLAT. The importance of only having 70 million shares outstanding, instead of perhaps 10-times that amount if Auryn were to have drilled out the entire property as many mining companies might have chosen, can’t be overestimated.
In regards to the GRADES, the grades are insanely high, period. They have been that way since Day 1 and this has been corroborated many times. In regards to the effect of GRADES on AISC, a miner with grades in the top 5 percentile of all deposits will have an AISC in the bottom 5 percentile of all mining companies. That’s just how it works. What is striking in the case of Auryn/Medinah is the COMBINATION of factors all acting at the same time. They include:
Extremely (and consistently) high grade ore.
Extremely low AISC.
Extremely low number of shares outstanding-70 million.
Extremely high (all-time high) current price of gold.
A very favorable infrastructure left by the artisanal miners.
A high level of SCALABILITY-the ability to rapidly ramp up production (because of the ability to exploit the sub levels underneath level 3 due to the new ventilation system.
Management has been able to attract a world class BOD.
The ore has already been ACCESSED.
Auryn has already been “IN PRODUCTION” for over 200 days. All of the necessary hurdles needing to be cleared, have been cleared.
Extremely high-grade ore has already been stockpiled and can serve as the initial “feed” for the FF plant. The initial grades for the “float concentrate” will probably be through the roof but expect them to come down when the stockpiled “vein only” ore is depleted.
Through metallurgical and lab testing, the froth flotation process has already been shown to be the methodology of choice to process the DL2 Vein ore.
The FF process is not only effective, it is relatively inexpensive averaging about $10 per tonne.
Both TRANSPORTATION COSTS and the costs of further ore processing methodologies after froth flotation (like smelting) become much less expensive because the worthless material (“gangue”) discarded by the FF process and stored on-site does not need to be transported anywhere or subjected to further, more expensive, ore processing methodologies like smelting. What the FF process does is it INEXPENSIVELY gets rid of the worthless material so that less tonnage needs to be exposed to TRANPORTATION COSTS and the more EXPENSIVE ore processing methodologies. The FF process costs an average of $10 per tonne. Smelting averages $184 per tonne in Chile. FF plants pay for themselves in an average of 158 days.
In mining, the saying goes that “GRADE IS EVERYTHING” and that is extremely true. It’s a shame that something as critical as “GRADE” needs to be as complex as it really is but it really is a lot more complex than one might think. This reality has created an opening for opportunists to hoodwink Main Street investors into thinking whatever narrative best fits the financial interests of the opportunist doing the hoodwinking.
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Easy,
Did you really need to tee up the $5 a share question. Are you really that desperate for a warm blanket analysis that would inevitbably follow? As you stated, you have other investments that are doing well. Why poke the bear for the same response you would have received when MDMN and AUMC were trading 2000% higher. When the market just didn’t get it and boogey men were slandering this “once in a lifetime opportunity.” You know better.
BB,
Apologies, but I stopped reading after this paragragh. Pretty sure I’ve already suffered through most of the other regurgiated points you’ve made over the past decade (2 decades) as its clearly the same rinse and repeat. I do love the 30 PE analysis that you’ve been spinning (based on a 5 year old analysis/report) that doesn’t seem to incorporate the carnage in the sector.
It’s important to update your datapoints at least once in a decade to stay current. For what its worth, most junior miners are valued on a $ per ounce in the ground. basis. A price to earnings ratio is not a factor for junior miners BUT if one were to make that stretch there would need to be at least 30 years of mine life (for a 30 P/E). AUMC has made the decision to NOT spend the money to define a resource which means that the market will NOT assume a mine life. Channel samples, a 200 lb assay, and historical mining results gets ZERO credit from the market but that’s OK. There’s nothing wrong with faking it until you make it but PLEASE stop from trying to make sector related comparisons.
EIGHT YEARS AGO BB MADE AN APPROPRIATE COMMENT, based on assumptions that AUMC would be producing 24koz that year.
I’m wondering if this current lack of interest in our stock is basically the market saying “hay Medinah, PROVE that you belong in the 1-in-5,000 club”. Those of us that have been following AMC and how they operate have a strong feeling as to what they’re going to do but others not so familiar with them have obviously chosen to take a wait and see approach
And NOW he makes the following comment:
In retrospect, if you carefully study all of the press releases made by Auryn or Medinah through the years, you’ll note that pretty much each one was spun into a net negative by negative comments made on that investment forum by the same individual in each case
This is a guy who can’t understand why his investment is getting hammered after missing production estimates for the past decade, and is trying to blame folks like myself for his “misfortune.”
When/if AUMC finally presents a mine plan targeting ~10gpt material I really encourage this board to take a step back, re-assess some of the nonsense, and collectively begin analyzing this investment with at least one step in reality.
I look forward to it and hopefully, some of the more respected (and accurate) contributors to this board, Hurricane Rick, CHG, etc will start participating again. I think most of the sane folks (which cleary I am not) have grown tired of the broken record and checked out. For those with “dry powder” who’ve had the patience to watch from the sidelines there may be some interesting opportunities ahead. A few more hurdles to clear before that becomes a consideration.
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Last comment from me until we get something direct from the company.
I will admit that I have a personal gripe with BB. When I was a lot younger and green to investing and even greener to mining stocks, I made a considerable personal investment in MDMN. I take full responsibility for this decision but there is ZERO doubt that my position was held and grew based on what appeared to be the very knowledgeable and credible analysis offered by folks like BB.
His defense of the BOD/Les while some of us were trying to expose obvious fraud didn’t help.
About 10 years ago, I left the hedge fund world and launched a private equity fund focused on royalty/streaming investments in the precious metals sector. I brought on a team of very technical geo/mining analysts to build a portfolio. I wish I had the knowledge of the mining sector, 15 years ago, that I have now. I took a hit when deciding to sell shares of AUMC/MDMN but, thankfully, saved a TON of money by getting out early.
My analysts still send me LOL emails quoting some of the posts/analysis from BB on this board. My personal gripe is no longer tied to the money I lost in my 30’s. My issue is that this narrative continues, with no reconciliation or acceptance of responsbility. There are 100’s (1000’s?) of folks that have suffered massive financial blows following false hopes on this board. No apologies nor ownership, but amazingly, more “doubling down” of the same false hopes, lottery ticket rhetoric.
Now that I “know better” I’ve been equally vocal and unpopular in trying to expose the same while offering my analysis of the company’s actual prospects. No hidden agenda. FWIW.
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Does anyone know who our Transfer Agent is? RBC will accept my Certs as long as the TA converts them to digital certificates. Thanks!
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Name: Pacific Stock Transfer
Phone: (800) 785-7782
Email: info@pacificstocktransfer.com
Address: 6725 Via Austi Pkwy, Suite 300
Las Vegas, Nevada 89119
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Doc, thank you very much. You’re a Champ!
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I second that, Ktown 
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“This crucial funding will facilitate the construction and operational launch of a 100-ton per day flotation plant, with production set to begin in the first quarter of 2025.”
Since they have not announced the completion of the financing you can forget about production for 1Q 2025. Why does everything have to be so slow with this company?? And never on time….
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Even with gold at 2530 it doesn’t put a fire under their asses to get this done!
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I can’t wait for this POS to get at least at my break even (if it ever does) so I can get the hell out of dodge!! Slower then a turtle…
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Never say never They gotta slip up sooner or later.
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And, as I recall, the 100 tpd FF plant Brecciaboy is talking about is talking about is basically the smallest size they come.
Has anybody spoken to MC to ask if the deal from the funder from the last update is still at the table? I find it hard to believe it’s taking this long to turn a LOI into a binding contract if the details were already laid out in the LOI. Is this a repeat of the Hochschild deal on the LDM where the company went silent after the contract expired and we didn’t hear that the deal was off.
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Hi Done Deal,
About 3 weeks ago Maurizio was still waiting on the sign off by the permitting authorities. Being that the funders have already advanced $500,000 in cash, I’d have to think that they’re on side but, of course, they’re not going to advance $3 million towards the construction of an FF plant until the FF plant has been fully permitted.
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I believe this statement is mostly true but they certainaly can reach a binding agreement without permits in place. It has taken the company I’m involved with in Peru the better part of 10 months to get all of the various permits. They have essentially “drawn down” on their debt facility as certain milestones are met (including permitting). The last of the “draws” will not occur until all of the permits are in place but they entered into a binding agreeement in the fourth quarter of 2023 and are only now starting to begin construction. Parts, equipment, etc. have been ordered incrementally. The Peruvian project is slightly larger, 350tpd with a CIL so its not a perfect comparison but pretty close. Maurizio knows the project well b/c Peruvian mining is a tight group and the grades/mining are very similiar to what he’s targeting 12gpt, underground mining operation.
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