I think you would be anywhere that you believed you could rant all day long with the confidence that you were pissing people off. I assume that pissing people off is your goal because you should be smart enough to understand that there is nothing you have said here that will in anyway effect the decisions made by either Auryn or Medinah as they go forward. Auryn, a private company, has a plan on how they will move forward. They don’t read this board as part of their decision matrix to determine their next move.
2 Likes
Dividends and stock buybacks are more or less governed by the state of incorporation. In Nevada, funds need to come from retained earnings/profits for a buyback or dividend. Also, as Doc pointed out, neither can paid if it impairs the company’s ability to meet its future obligations.
Medinah does not generate revenue, regardless of what those totally inaccurate financials have previously reported. So unless, MDMN came into a large chunk of cash, probably $15MM minimum, they can’t do either.
Now if the company were to reincorporate into Wyoming, then anything is fair game. Dividends, stock buybacks, heck a company can have an unlimited authorized share level.
This may sound cynical, but I think that at this point, neither company cares about the price of our stock. If we don’t have news soon to push the sp up, I think we will see $.01 on the horizon.
So you are saying if MDMN sold all its assets, it could not take that cash and do a liquidating dividend (after paying off all its debts) to its share holders and cease as a company! I believe that is not true!
I do not know Nevada rules, but I do know that many companies can payout dividends from a return on capital. I seen it done in shipping companies were they have sold their ships and leased them back and paid the shareholders a liquidating dividend as a return on capital based on that sale. It also had preferential tax treatment, since the dividend went to reduce the shareholder’s cost basis and was not taxed. . fwiw.
No that is not what I am saying. What I am saying is that as long MDMN is an ongoing business, it must have sufficient capital to service its future obligations, like debts, account payables and any other liabilities. And nevada does not consider share sales or loans and reliable sources of income. But if they came into a large sum, call it a windfall, they could pay a divy or do a buyback.
Specific to your comment, a liquidating dividend would be acceptable as long as it comes from the net proceeds. That is asset sales and retirement of all liabilities.
That is exactly what I am saying that you can pay a dividend as a return of capital as long as it does not impairs one status as to paying debts and expenses associated with an ongoing concern.
So here is my position, MDMN could pay off all its debts from the exercise of the purchase option and assuming after any taxes still have say $70-80M left to distribute to shareholders. Also lets assume MDMN at the same time has sufficient cash flow from production to cover our on going operating costs, which should be minimal. Then lets also assume MDMN sells off any stock we own in other companies except Auryn and all non ADL claims, Now what is left is a production royalty from Auryn which could be set up in a trust with minimal expenses and continue to provide a nice source of ongoing income stream. Yea I know it is nice to dream!.
1 Like
Gold is moving back up nicely $1243
I believe that is exactly MDMN’s goal(s). So dream on, there are others of us dreaming right along with you. And the way Auryn is performing, this is one dream that does have a chance to come true. As I’ve said before, it all looks good at this point. No reason for it not to continue.
FYI - an article from a Peruvian newspaper (Portafolio section of El Comercio) re: AMC’s parent company. I’ll provide a translation tomorrow. I have too many irons in the fire right now.
I’ll say this about today’s postings – I wouldn’t let L&G’s attitude or the share price affect your outlook. Aside from the general economic and mining climate – MDMN has never been in a better spot. No, the price isn’t where any of us want it. But the non-stop complaining about it and what some people think is or isn’t happening or did or didn’t happen or should or shouldn’t have happened at this point is peeing into the wind.
We are in AMC’s hands, for better or worse. The option agreement exists and the properties are owned by AMC or (in MDMN’s case) under option to AMC. I for one am delighted with that.
PeruArticle_2.pdf (354.3 KB)
8 Likes
I would not count on the option being exercised that early, IMHO. Auryn has a lot more to learn about the Mountain and so does MDMN, before the two settle on their purchase formula, IMHO.
We need a lot more drilling and assay results in order to get the fair shake we all would like to see. Exercise the option to early and MDMN will be leaving a lot of value in the Mountain that won’t be accounted for in the purchase option.
You’re wrong. Read the contract.
3 Likes
Yes. Unfortunately, the fact that Doc has been buying isn’t going to instill any confidence. Most people are hoping for buying that hasn’t been around for 20 years. Not saying that this isn’t a good level to pick up shares. There’s nothing quite like a 10 year round trip. This is exactly where I bought my first shares 6 years ago.
1 Like
Correct…and another good post earlier referencing Icahn involvement on some of the boards he has seats (like LNG). He sure as hell ain’t there to provide fiduciary responsibility to anybody but his own $$ and clients. His involvement on the the boards is for leverage and oversight. I would think Roberto has the EXACT same goals.
1 Like
What he said.
Leanandgreen. Give us a break.
4 Likes