The Mining Play

MDMN - 2016-02-15 Weekly Discussion

President’s day – market closed. Looking forward to see what Tuesday brings and if the strong bid remains and Claro has any shares left.

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Finally liking how things are progressing! GO AURYN!

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WOW George !!! Good for you.
I hope the watching investors truly realize the significance of your endorsement.

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If I read this correctly Freeport is selling 13% of this mine for 1 billion. And some here have an exit plan for .20 well I say bon voyage when the SP hits your target.

Freeport-McMoran Makes $1 Billion Deal With Sumitomo Metals

Monday February 15, 2016 10:24
Freeport-McMoran (NYSE: FCX) announced Monday its plans to sell part of its interest in the Morenci open-pit mine in Arizona for $1 billion to Sumitomo Metals Mining Co. This sale, which is expected to close sometime in mid-2016, would cut Freeport’s stake in the mine from 85% to 72%, a company press release says. “FCX expects to record an approximate $550 million gain on the transaction. FCX expects to use losses to offset cash taxes on the transaction,” the company explains. Freeport shares are down roughly down 16% year-to-date and down over 91% from their May 2008 peak. Freeport’s announcement comes as equity markets are closed Monday for the Presidents Day long weekend. Freeport ended Friday’s session at $5.53 a share, up more than 1% on the week. Standard & Poor’s lowered Freeport’s credit rating to ‘junk’ on Friday, as did Moddy’s Investors Service last month, as the company struggles to remain profitable with lower commodity prices. The company reported a $4.1 billion loss last quarter. “This transaction represents an important initial step toward our objective to accelerate debt reduction and restore our balance sheet, while retaining a portfolio of high quality assets and resources,” said Richard C. Adkerson, the company president and chief executive officer.

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I had a friend (who is now deceased) tell me that Jim-Bob et al were very interested in the Medinah story a few years back.

That being said, I think somebody has been saying Grupo Mexico was very interested as well.

Maybe we have multiple majors interested?

Brecciaboy has indeed been suggesting that the ADL has a diverse resource which would require diverse talents.

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How does this relate to our investment?

To be clear, most people who were calling for 20 cents have since adjusted their price targets/exits lower. We were also trading 300% higher at the time. I still think 20 cents is possible if all of the stars align perfectly and/or if people are given the option to wait several years for the investment to “mature.”

However, most of the junior stocks I follow doubled with the latest pop in gold. The point has been made that if/when we get to 10 cents in MDMN, it’s going to be a lot easier to double, triple, etc. your money in other PM stocks when gold rallies vs. waiting for MDMN to go from 10 to 20 cents. I know some folks are hoping for that option before the PM space takes off even further. MDMN doesn’t need higher gold prices to get to 10 cents as the shoter term price action will be driven by company specific catalysts. This sets up the opportunity presented above.

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How about the essay results that Auryn is releasing so often don’t they add value to our mountain? What if Auryn released news stating that there is over 5 million ounces of high grade gold just on surface level wouldn’t that add value?

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Heck, why don’t you just say someone wrote them a check for $5 billion dollars and we won the Powerball. It’s got as much basis in reality at this point.

This kind of stuff is one of the reasons we have a penny stock pump & dump reputation.


The real story is good enough. No reason to embellish it.

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I’m not trying to pump and dump what I’m saying is that with with the precious metals alive again going forward and drilling results are more than above average, and 1/4 of the world with negative interest rates, those who want .20 they will have no problem getting there we were there before with nothing. I believe that some day not to distant that this stock will be worth at least .50.

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Yes it would add value if they had a 43-101/JORC to back it up. How about if they announced a billion ounces of high grade gold? That would be even more sweet. If FCX is selling fraction of their stuff for a billion we should be worth several times that. I’m holding off for Bubba’s $50 price target.

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Well why don’t we wait and see what they come out with? I really don’t want to get into a pissing match haven’t drank too much coffee today. I will remind you once we hit .20 or your exit now is .10? In any case any of those two targets hit I will wish you a bon voyage.

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Wizard, you just quoted hulkster as stating that Auryn had released news stating that there is over 5 million ounces of high grade gold, when in fact he was posing a question, “What if Auryn …” had had released such news.

Bad form, and dishonest.

With a couple of exceptions, the agenda-driven low level of discourse on this board is worse than the national political scene.

Not bad form and dishonest. An accident because the OP text that was not fully selected. I missed the first line…Now corrected.

The point remains the same…if we’re just going to pick amounts why stop at 5 million ounces at surface (WHICH IS RIDICULOUS) at this point.

With a couple of exceptions, the agenda-driven low level of discourse on this board is worse than the national political scene.

Are you serious? What board are you reading?

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This post was flagged by the community and is temporarily hidden.

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Are you just as concerned about people picking LOW amounts? ANSWER: No.

THE AGENDA: Try to influence management to bite on a low-ball TO so certain shareholders can liquidate and take their marbles elsewhere.

By the way, the next time you buy a piece of real property, will YOU agree to a provision which says the price will be a “minimum” of $________? Please advise, because I would love to sell you some property. You had to dig real deep for that one. Fallacious reasoning as such makes people think you have an agenda too.

I’ll be the first to admit I am not an expert in valuation - and my prior postings of high valuations were nothing other than my attempt to logically extend the postings of others who do seem to know more. By the same token, taking a position that this stock has no business being worth more than _____ cents is just as violative of the guessing game you cite vis-à-vis hulkster. Are you just as concerned about guesses on the LOW side? To thine own self be true.

we are at .02 cents, ya know.

Personally I’m tired of the “agenda” speeches. I come here to read what everyone has to say, the good and the bad. I don’t need someone to tell me that there are going to be agendas present on every single one of these forums. When you learn that mike gold has his agenda that is definitely tied to LP’s agenda things become a lot easier to understand. You also have the pumpers with their agendas and people like Baldy who like to keep things in check with his agenda.

HUGE THANKS TO ADMIN. I feel that this forums is overall moderated in a fair manner. Glad that some of the more heated posts stay up and when it all goes to garbage you guys step in and clean in up a bit.

Good luck everyone. Hoping for good things this year.

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Not to speak for Kevin, but are you seriously questioning the viability of a, let’s say, $162M valuation (@ .12) versus that of a $67.5B valuation (@ $50)? I don’t think he has a problem with guesses on the high side as much as those that are ridiculously unrealistic. Maybe, just maybe, his goal is to keep expectations in check and similarly to lose the stinky pinky stigma that comes with those pie in the sky guesstimates.

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Everyone should just chill. Things are progressing so we just have to wait it out. Speculating isn’t going to help anyone we are along for the ride. Lets just sit back and see what happens

Is it Tuesday yet?

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Mr. Bubba, would suggest looking at comprable companies to get a sense of valuation. A friend of mine works at Gold Resource Corp (“GORO”), they are a little uncoventual in that they did not do a feasibilty study but just started mining.

They have three properties, producing gold and other by products, not a ton of money, but they have paid millions in dividends since 2010, doing a stock buyback, have a very nice share structure, and only a market cap of $86MM.

http://www.marketwatch.com/investing/stock/goro/profile

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I know that this is not the right forum, but can someone tell me how to upload a picture? TIA

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