The Mining Play

MDMN - 2016-03-28 Weekly Discussion

I as a shareholder, would rather see a stock buy back before a dividend.

Big cap stocks that have bought their stock back with this market are scratching their heads and asking themselves why they did it in the first place. Their Sp is back where it was before the buyout and they are out of millions and millions of cash not a wise thing to do in this market.

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Just my two cents, if there is any cash paid to MDMN, I would want a whole new BOD/Mngt. before a dime landed in the account. Heck, with the shares held by shareholders, a motion could be made and carried voting out the entire team and appointing an “interim receiver/trustee” usually an attorney to sort out the whole MDMN mess before a penny is disbursed.

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I totally agree. Can we Trust Lester with a check? I say NO

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Perhaps somebody didn’t tell you but Les isn’t in charge and hasn’t been in years. He has one important role left, that is to sign the agreement in Chile. I expect to see no money as part of the purchase agreement. In any case, speculation/rumor is about over. Developments are imminent.

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When I see this type of consensus - I usually take it as gospel.

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So here is a wild ass thought, that may appease those wanting some upfront cash and those, including myself, believing there will be no upfront cash.

And yes, anyone is welcome to through rotten tomatoes at me.

In return for accepting a cash less option/agreement, MDMN still receives the 15% of AMC, but AMC and its affiliates, return for cancellation, all their MDMN shares which approximate 210 million. This will not impact their capital need for moving the foward with the near term production ops nor the long term exploration.

Of course, under any circumstance, I would still like to see a trustee appointed to head MDMN and hire a Chilean attorney to fill any role that Les has played.

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Question. What would it do to the share price in the short term if they did take the 260MM shares and cancel them. What about the long term effect?

Short term, no idea, the market does what the market does. But down the road, if and when divies come from AMC, there are fewer shares to split the divy amount with. Think of a pizza pie with 12 slices feeding 6 people, 2 slices per. Now if there were only 4 people, 3 slices per. Theorectically, each share would be more valuable given the increase in divy amount.

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Why not wait another year and have the option exersised at least that should give us 7cents/share. From what I hear from this board it appears that people are happy with no money and a larger share in a private chilian company that is not tradeable. So if we get no money remember that a company does not have to pay dividend, which means that my MDMN portfolio is worth 0. moo

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Owning a higher percent share in a multi-billion dollar deposit that has several near term production opportunities is the way to go. The BOD appears to be making the right decision for a change. Taking money and smaller stake probably would be short sighted and take away valuable capital from our partner who likely will do a much better job investing it into the mountain than what Medinah would end up doing with it.

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I’d rather they be closer to being in a position to make a tender offer rather than further away.

I’ll offer a completely counter view to that if this ever becomes official. But first let’s be realistic – we were never guaranteed any money and this has been nothing but paper moving around for the last two decades with little to no exploration. All the paper has been far more detrimental to shareholder equity than a future in owning shares in a solid producing junior who is actually mining the project and proving it out (whether or not the private company distributes proceeds.)

Also, friends and affiliates of said private company probably own 20 - 25% of the MDMN float by now. They have an incentive to maximize that equity.

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NO money!! Can’t believe it. Most of us need the money now. :disappointed_relieved:

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We still can’t break the bank on a deal! What will it take for someone to come in and give us a check with money so we can finally kill this penny stock mentality?

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Two questions.

Why are you working on a “paper”? Or are extremely long rehashed posts now being called papers to add credibility?

Why do you keep referring to a dividend machine? Are you under the impression that our equity stake is a royalty? Otherwise, MDMN’s share price will rise in value as the value of our equity/percentage in AMC appreciates but assuming that we have some right to the profits/cash flows is a big leap.

I realize that I’m in the minority BUT reworking our existing contract from $100M to $25M (pick your number) for a higher percentage AMC so that we can take advantage of the perceived disconnect NOW instead of 15 months from now is just plain dumb. The reason why we are trading at this level is because the market anticipated that the existing contract would be reworked and we lost our 7 cent floor. $25M TODAY with a higher percentage in an impossible to value private company instead of $100M later is a bad trade. Plain and simple. This is exactly why CDCH has become a better value. IMO

One other explanation for the continued selling might be MDMN’s issuance of shares (at a penny) to cover expenses. Those shares are typically for sale the next day. We’ll have to wait to see the filings and how many new shares were issued to know for sure.

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Why would management accept the deal with no cash and dilute more shares for expenses that is not good math!

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