MDMN update on the OTC now. The same one that was on the MDMN web site however.
I hear you. And I am not going to say they won’t. But everyone needs to take seriously that we are in a historic mining / PM downturn period. Not just down, HISTORIC DOWN.
Here is a very well run company that buys up underperforming underground mines, reconfigures, and mines them. They have 4 or 5 producing mines. They produce 100,000 Oz a year. They are still profitable at these prices. They have approximately $50M in cash in the bank. Sprott and other large investors are shareholders, They trade in Toronto but above the Venture exchange:
Market cap: 300M CAD = $215M USD
It’s where things are. Flashing “25 gpt” or “100 gpt” will get some excitement eventually. But they will have to get some traction through performance first, IMO
BTW - this “HISTORIC DOWN” will eventually turn. So I, like BE I think, was hoping for a quick turn here even if for a lesser amount, so that profits could be put into nice mid-tier producers who will go up probably 5x over the next 5 or 10 years. But that timing may be messed up now. Too bad for me. So I am not suggesting these latest turns are what my own personal ‘best case scenario’ was. On the other hand, I can live with the turn of events as long as we don’t get messed up here at the end.
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This is new also:
AURYN - About Us
… The Company has one remaining option agreement with Medinah Mining Chile (MMC). The remaining option agreement can be exercised at any time at the sole discretion of AURYN.
The focus will be on exploiting the recently discovered Caren-Merlin high-grade gold veins and the historical Fortuna de Lampa mine site.
At the same time, AURYN will continue to explore the property, focusing on the Pegaso Nero (Copper-Moly area), and continue its drilling program on the recently acquired properties.
Visit the website at www.aurynmining.com.
I meant to mention earlier, because no commitment was made to CDCH to release drill results to shareholders, and all information releases are at the discretion of AURYN, what is the possibility that some drilling was done during this prolonged silence (remember aeromag survey)? What kind of modeling is possible from the existing trenching and adit samples, IP/Resistivity & CSAMT surveys?
Where would The SP be today knowing that option will be excersised production starting this year and the terms of purchase were released on those properties. Market wants that info for us to move up. I’m over these .01’s .02’s
LNG. There’s no scenario where taking shares in Auryn over $100M makes any sense in the short to medium term. It’s impossible to find enough value in AMC to engineer a fair equity split. If the more “optimistic” interpretation plays out ($100M plus shares in AMC to meet scalability) plays out, that would be phenomenal. Sounds like a stretch.
I imagine someone like Brecciaboy will continue to cling on to the cash/disconnect notion. If we get $30M in cash and 20% instead of 15% of the AMC we could initiate a massive buyback, squeeze, and cancel shares! That’s great in theory but how could we ever justify giving up $70M (as an example) for 5% more of AMC?? This would value AMC at a laughable $1.4B…
You cant justify shares for cash
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The trading is starting to pic up some. Still lots of shares for sale on the ask though.
That’s great in theory but how could we ever justify giving up $70M (as an example) for 5% more of AMC?? This would value AMC at a laughable $1.4B
^^^
This drum needs to be BEATEN AGAIN AND AGAIN. The people making the decisions – Greg Chapin, Les Price, Gary Goodin, and Vittal Karra need to understand this.
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That’s why we need people like you Mark and John to tell these guys this. I don’t think they understand
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OT: This post by CHG reminded me of something. Did anything ever come of the conversation to start another board for other investment ideas? I know HR posted about MUX a while back, so I looked into it and jumped in. I’m now up roughly 40% in that short time. THANKS HR!!!
Sorry for the OT but I think there would be enough interest to reexamine the idea. Thoughts?
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I would encourage people to reach out to our BOD to reiterate the same. As has been clearly shown over the years, all of these guys skipped classes covering “the art of the deal.”
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And the class on TVM.
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We could use some means like a form letter from all who agree with this. Then we could all stand together and sign it IMHO.
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Examples of implied Auryn-public market cap, in a “reconfigured” ADL option where $100M becomes something less and 15% Auryn Equity becomes something more. Compare “implied market cap” to previous remarks in earlier posts:
You can see Auryn would have to give up a lot to start to approaching making much sense.
Q’s:
A. would a ‘No’ by MDMN cause a TO by Auryn? A $0.08 TO for everything would be over $108M. Do they have that at this point?
B. is it a better option for MDMN to hold ground and wait till Aug 2017 to get the $100M and 15% if no TO is on the table?
Plenty of ground in between the extremes but our guys need to not e dazzled by “shares” like they were dazzled by Mr. U’s offers of shares - even if these are much more real.
As a side remark, re. Wiz.'s comment on having ‘gold bugs’ running the company, it’s a funny contradiction that gold bugs can be so dazzled by the most prolific ‘money printing’ machine there is: generating, giving, taking more company shares. At some point it needs to become cash, fiat or hard, in order for it to matter.
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I see two sides of the coin here. The first side says Auryn is very please or rather excited by their finding so far. They have knock the ball out of the park and as a result they acquired three properties to their amalgamation of claims, plus surrounding claims leaving ADL as the last piece to the puzzle… Auryn needs to exercise this ADL claim so they have the whole enchilada. Therefore I believe for a change that MDMN might have the upper hand. I know the scenario which I am proposing is probably against popular belief that Auryn wants to give us less money in return for more equity in Auryn, but I see this whole situation differently. I see that Auryn has already proven up the $100 M mimimum plus substantially more. I see the existing contract with MDMN as complete and enforceable. Auryn needs the title to all these claims so it needs to exercise the ADL option… MDMN should have the upper hand here… This tells me what should be finalized in March will be significant and more favorable to MDMN shareholders. This also tells me that JJ would not be holding out on a cash offer from Auryn for his shares if he believed what is being proposed as an adjustment to the original agreement was not ultimately more beneficial to the shareholders. If it is not more beneficial JJ would probably immediately jump at the chance to cash out today at the current offer…
The flip side of the coin it is all this discussion of reduced cash in exchange for more equity. This rationale is driven only from the perspective of the general PM market conditions. Which I do concur with. The problem I have is the logic from what we already know. Auryn has an existing and enforceable contract, they are excited based on what they have found, and there is no turning back only moving forward. I know if I was Auryn I would rather give less equity or even get rid of the 15% equity MDMN would own if I exercise my option today, because I know that 15% will be worth a lot more down the road. The trade off for many is believed to be more equity for less cash, but in my eyes the trade off is really more cash today for greater future cash flow as a result of less equity…
I know it could go either way, but If I was in Auryn shoes I would want to get rid of MDMN and not have them with a major stake in my company, plain and simple. JMO
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The more posts I read, the more I get confused. There are so many different paths for MDMN and Auryn. I just want cash as soon as possible and not shares in Auryn. I don’t think we have enough of the details of this latest “deal” to really understand what is going on. Does anyone think that this deal is Auryn’s attempt to circumvent JJ refusal to sell all of those shares? What happened to the binding arbitration? Sometimes, I think the arbitration never happened. Maybe this stock is driving me crazy!
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Yup, yup, yup, yup, yup, no clue, unlikely, and yup.
It’s driving everyone crazy! We have 1 date to see where this takes us July 31 2017
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