The Mining Play

MDMN - 2016-04-18 Weekly Discussion


There aren’t any non-disclosures in place now.


I believe that’s a true statement and as much as I would like to know every aspect of the events that have led up to the current MOU, after the fiasco of “DONE, DONE, DONE” I can understand why management would/should be very careful as to what they say until after the finished contract is signed and “really done”. Of course, once it is “really done” there should be no excuse for failing to provide a complete disclosure of all terms and agreements.

FYI, I’m still looking forward to your part 2 on the Medinah blog. :smiley:


You’ve always been here. Maybe not as a shareholder but, based on family ties, you certainly have been following Medinah since the last century. You appear to be fully aware of Les’s ties to Medinah and JJ going back long before you bought into Medinah. Yet, you are now a long term shareholder.

Fortunately my investment here is not based on solely any of the above. However, I do consider your list along with a number of other considerations. I do consider the information that list provides and look to evaluate it based on how it fits with other information and sometime just plain common sense. Perhaps that is the key point here. I evaluate it, not totally believe it or totally discount it. That’s the reason I provided the following partial post a few week ago.

MDMN discussion for week beginning Continuing the discussion from MDMN - 2016-04-04 Weekly Discussion:

Yes, I will continue to evaluate everything while accepting very little as an absolute fact unless it can be proven as such.

Once again you appear to jump to the conclusion that Medinah management is so stupid that they could never enter into an agreement that could be beneficial to both Medinah and AMC. Medinah has 20 years of waiting accomplish a decent deal. True, AMC may have been able to cleanly walk away form the ADL option and continue to develop the Cerro/LDM claims for early production but there are a few unknowns’ that might have prevented that. We don’t know if there was a side agreement that prevented AMC from accomplishing certain required task before they could begin production on the property that Medinah continues to own 15% of and the other 85% was transferred to AMC by persons who have a vested interest in Medinah stock. We don’t know if Medinah management was willing to let AMC go into production right up to the ADL claim border, allow the option to expire, and then execute another deal with someone else. (We’ve seen that happen before.) We don’t know (but I will assume) that both parties actually did look for a win-win that would allow them each to see the property developed into a series of working and profitable mines and they actually did come together with an agreement to accomplish that.

I believe that If both sides negotiated with my attitude then they had all the elements available to meet with success for all.

On the other hand, if both sides negotiated with your attitude then I fear we could be screwed.

Looking forward to reading the outcome.


Correct. A very easy conclusion after 10 years of empirical evidence along with a basic understanding of investing in the mining sector and assigning value to present/future value of an asset. Unless you believe AMC is worth $1 billion TODAY we restructured the deal to AMC’s benefit. It is what it is. We had no leverage and took the deal that was presented to us. The market discounted this outcome before the ink on the original contract was dry (which is why we didn’t trade down even further with the announcement).

And yes, I also think our BOD is so stupid that they probably believe they will be getting big dividends from early production even though they failed to negotiate a royalty stream off the deal. It’s akin to them believing shares in Amarant carried any value or that buying all of JJ’s worthless properties would provide value, or that they could bring the LDM into production with a couple million $, etc, etc, etc.

As for the shareholders who still think that “this time it’s different” despite being burned sooo many times in the past, I applaud your loyalty and empathize with the financial consequences.

The $100M was never going to be paid. AMC will prove up the mountain, partly funded through near term production (all of it) and, when they reach a point when the mountain can be “monetized” this soap opera ends. Obviously IMHO


At least in a couple of weeks we should “FINALLY” know where we stand…Or sit…I HOPE…


Just to be clear. I don’t know why (other than your propensity to dwell on the negative) but I believe you are inferring that I may have experienced some sort of negative financial consequences in the past with Medinah. I have not. Nor do I anticipate doing so in the future. To help you better understand my comment, and my lack of concern, I’ll share with you that my all in average share price is .01807 cents. While anything is possible, I very much doubt I will experience anything other than positive financial consequences with my overall investment in Medinah.


Down 20% on an investment you’ve held for over a decade? There’s a big difference between trying to stay positive and outright denial. Here’s to you and everyone else seeing significantly higher prices.


Of course I’d like to get some divs before an eventual TO, but if not, so be it.

As long as the soap opera ends with some kind of decent return (10-20 cents) I’m fine with it.



Is there anyway, our BOD can profit from Medinah, without a significant increase in share price? Plus, with the multiple millions of shares they have, it will not be easy for them to sell their shares on the open market. Of course a TO solves that dilemma. In other words, I guess what I am asking is… Are we “all” in this mess together???


This is perfect testimony to the fact that management is not being affected one way or the other by the incessant howling for a premature TO. Good on them!


Actually, I’d look for it sooner! :wink:
A little too early for making reservations, though.

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