I believe it would be the former. Even rich people don’t like unnecessary losses.
2 Likes
When you say rich people, is that like Trader Rich!
1 Like
I’m a people!
3 Likes
Especially him… but he knows how to Zen out in the meantime. “Ohm…”
1 Like
As of Dec 31, 2017: 218,783,318 shares, or 7.6% according to the MDMN annual report
2 Likes
So, if their average cost basis is 7 cents, that would be about $15 Million.
The question is whether a $15 Million investment is enough incentive to make these guys want to move - is it material to them?
2 Likes
Of course there are changes in value in the market, just like the value of absolutely everything else on the entire planet is also fluid and does not remain static.
This, unfortunately, is not how you assess value. What you paid for something at a particular point in time does not define it’s worth. SOMETHING IS ONLY WORTH WHAT SOMEONE ELSE IS WILLING TO PAY YOU FOR IT. This is why the market cap, the definition of which cannot be altered by your inaccurate “back of envelope” description, is relevant because it displays the value the market has assigned at the current point in time, calclulated by what people are currently willing paying for what you own. Or if you want you could tell yourself that what you own is worth “X” amount of dollars(or cents) all you want in spite of no one willing to purchase it from you at that price.
1 Like
Two people clicked on the link I previously provided! So glad you dug deep enough to follow that link and caught what the blog I quoted was all about. (Hint) It’s contained in the title. 
Obviously, there is a misconception that surrounds “market cap” and it’s importance in valuing a company:
The Myth of Market Cap
So why does the financial media hype Market Cap? Because it sounds cool and grabs your attention. Big numbers are like eye-candy. And it deceives you into thinking something is worth more than it is.
Living Stingy: The Myth of Market Cap
Longtime lurker here, first time poster. I’ve been in MDMN for around six years now, and like most of you, have lost a fair bit.
As shareholders and investors we bear as much blame for lack of DD as anybody. We happily joked here about “kaboom” and allowed ourselves to shove aside what should have been serious concerns about the company’s viability in the interest of greed.
Kevin was handed a rough hand when he took on the job of straightening out the mess with MDMN, and I’m tremendously grateful for the work he put in. He did a professional job of steering us through the OS discovery, was a diligent communicator/negotiator with AMC/Maurizio, and quickly put the turbulence caused by Les (OS, Okanadian, phony loans) behind us.
The company’s potential was diminished long before Kevin took the helm. He just helped us realize the losses and put that era behind us. It meant that we all took a haircut in terms of ownership of the core assets, but we were overdue – the damage had been done long ago – and now the company is unencumbered by tit-for-tat lawsuits with Les, something that is much better in the rearview.
20 Likes
I wholeheartedly agree.
2 Likes
DID anyone else besides Kevin step up to the plate and clean up that BS? NO! He knew what it was and he was the only one with integrity I trusted to do it honestly. If anyone wants to blame anyone blame yourselves for buying this POS! I friggin sold CDCH with a huge profit only to buy it back higher cause I was afraid I sold it to cheap so I lost double! Whose fault was that? MINE for trusting these POS and listening to them lie to my face. Nothing ever added up and we still held. I watch this POS climb to the 20’s and here I am sub penny was that Les’s fault or my greed? take ownership people we fell for it.
17 Likes
I think all of this talk about appropriate market caps in an environment in which the cone of silence has been in place for so long is really kind of silly. An “efficient market” is based on the premise that existing share prices and therefore “market caps” (PPS multiplied by O/S) incorporate and reflect ALL RELEVANT INFORMATION. In Medinah’s case, does “the market” have ALL RELEVANT INFORMATION so that it can constantly reflect an accurate share price and an accurate market cap? Of course not. Did the market go up when Luciano Bocanegra cited the run of mine head grade as coming in at 34 gpt at the Merlin 1 Vein/Caren Mine? No it downticked. Did any of us do the math and calculate the annual production rate of gold associated with Maurizio’s “theoretical” plan for the 14 parallel adits at lens #2 of the Larissa Adit, with the 2 blasts per day, 90 meters per month advancement rate, etc.? Did you come up with 100,000 ounces of gold per year with that 34 gpt head grade? Of course not, you’d need to know that the specific gravity of andesite is 2.6 gm/cc in order to come up with that. Did you giggle at the informational meeting in LV when Maurizio cited that he wanted to rapidly become a mid-sized gold producer? Why didn’t we all know this conversion rate after all of this “due diligence” we are theoretically doing on this forum? How dare any of us assert without blinking an eye that yep, the market cap is right where it should be?
Part of the reason that the junior mineral exploration sector features these 20- and 30-baggers is that the RELEVATION INFORMATION is often missing due to the secrecy-obsessed nature of the junior mineral exploration sector and the RELEVANT INFORMATION which is available can be very technically challenging. Therefore the “share price pendulum” tends to swing too far to both the right and to the left. This sets up the potential for oversized gains for the patient and oversized losses for the impatient in this industry famous for S-L-O-W-N-E-S-S. How S-L-O-W are developments in this industry? The World Gold Council estimates that it now takes an average of 27 years for a successful junior explorer to go from the commencement of exploration to the commencement of production.
What I’ve noticed over the years is that it often takes the terms of a tender offer or joint venture BY TECHNICALLY SOPHISTICATED PARTIES (unlike us) WITH ACCESS TO ALL RELEVANT INFORMATION (unlike us) IN ORDER TO INFORM “THE MARKET” ABOUT PROPER VALUATIONS. You can’t have a market niche like ours with 20- and 30-baggers all over the place unless there was an underestimation of the “value” of the deposit in the first place. The “value” of the deposit didn’t go up overnight; it was the same before and after the 20-bagger. The true “value” only needed to be confirmed by the actions of very smart people willing to cut a check.
This comment was recently made: “SOMETHING IS ONLY WORTH WHAT SOMEONE ELSE IS WILLING TO PAY YOU FOR IT.” Let’s take that one step further and modify it to this sector. Somebody is only going to be willing to pay a certain amount for a product IF THEY HAVE ALL RELEVANT INFORMATION ABOUT THAT PRODUCT, THEY UNDERSTAND IT AND PERCEIVE IT AS BEING A BARGAIN. The markets in the junior explorers are incredibly “inefficient” and always have been. Want to take a test as to how dumb we really are? Open up an article by Dick Sillitoe on intermediate sulphidation vein systems (like ours) and quartz monzodiorite Cu/Mo porphyries within Chile’s “Early Cretaceous Porphyry Belt” (like ours). Now randomly select one paragraph in the middle of the text and read it. I rest my case!
3 Likes
A “Unicorn Without Wings”
Chapter 1: How to spend 20 years of your time focusing on an asset while your investment in said asset is diluted by 99%.
Chapter 2: I’m always right and the market is always wrong. If all else fails blame the NSS.
Chapter 3: Debunking the myths of Market Cap. The bid/ask is merely a figment of one’s imagination.
Chapter 4: Dentistry and Geology. Two professions built on drilling and excessive pain.
7 Likes
That is pretty funny! However, in an attempt to get some value out of this forum beside entertainment, perhaps shareholders should develop a list of questions/comments for Auryn to consider. Maybe Kevin would be willing to make sure that Auryn at least sees them.
A good start would be the questions/comments that Karl raised.
5 Likes
I think even Doc has to laugh at #4
5 Likes
I’d especially like to see some guidance from MDMN management regarding what kind of assistance AURYN intends to provide in converting Medinah’s AURYN stock to CDCH stock. When is it expected that MDMN shareholders will see CDCH shares in individual brokerage accounts? Also, when will AURYN allow CDCH shareholders to have some information regarding the strategy for providing liquidity to the companies? How are their shareholders going to gain from direct ownership in the underlying asset when there is no current information on that asset? Some forward guidance from CDCH management would be appreciated on progress being made.
12 Likes
Can this save us? Have not even read the whole thing.
TDK
1 Like
Why isn’t this Les guy in jail…and all the others who perpetuated this fraud? I am new to this site…all I want is Auryn to send me 10 ounces of gold and I will be made whole!
Things starting to pick up
5 Likes
What’s with the uptick in volume today?