The Mining Play

MDMN - 2016-05-02 Weekly Discussion


#166

By and large, the Letts left the scene around the time the BOD page was taken down from AMC’s site. I imagine they are still stockholders to whatever extent they were invested in AMC or MDMN. But I think they had very little to do with the development and running of Masglas or AMC and the consolidation of all of the ADL under AMC from that point forward.

That may change or it may not in the future. Who knows? But it doesn’t take a rocket scientist to figure out that Volcan stock was crushed and was trading down over 75% in January around the time their names completely disappeared from any public conversations or media posts about AMC, MDMN, or the ADL.

As far as AMC and the ADL project, it’s all positive as far as I can see. When everything is officially wrapped up and AMC is ready to make disclosures regarding the project, JJ’s share issue, time lines, production, or anything else, they will.

Meanwhile I’ll patiently wait much more so than I have in the past knowing that FINALLY, the ADL is going to get developed and my foolishly large bet on this play will get at least some level of real return.


#167

The project has definitely expanded and come together under the Masglas umbrella. I agree, the ADL will get developed and shareholders can look forward to getting at least some level of real return.

Kudos on the Maurizio Cordova interview at PDAC - appreciated.


#168

Well said Wiz…If I had to guess, I would say that 75% or more of us are in way over our heads on this investment. Just getting near even, would bring alot of welcome relief for everyone…


#169

No, getting back to even is not enough.
Mdmn shareholders deserve much more than breaking even


#170

It all depends on your price point Casey. Investing has nothing to do with “deserve”. The reality is those who bought into the hype of Amarant and MDMN in the Ulander days and have averages over $0.15 may have a tough road in achieving “much more.”

Of course, we don’t really know until we drill, drill, drill.


#171

I have to say, Kevin, that “drill, drill, drill” sounds much better than “done, done, done”. :wink:


#172

Announcing some upcoming changes

The direction of TheMiningPlay.com is going to change somewhat. It won’t significantly impact the weekly discussion threads for MDMN and CDCH.

I’m setting up a new company Alert Mining Investors LLC. (AMI). The company will own TheMiningPlay.com and AurynBlog.com.

The company’s purpose is to provide educational resources to new or inexperienced mining investors so they don’t have to go through what many of us have gone through with MDMN and CDCH!

Mining investing is an ultra high-risk endeavor. The majority of us did not understood nor appreciate the risk we were taking by investing in MDMN and CDCH. Many of us still know little about the industry, running a mining business, geology, etc. My goal with AMI is to change that.

I will be creating categories and discussion topics that provide links to content about mining investing. I’m hoping some of you will join me in curating the material.

A secondary purpose will be to provide shareholders in specific mining companies a place to share and discuss critical due diligence. Part of that will be the MDMN and CDCH discussion. We’ll keep the “Other Mining Plays” thread active as well. If enough of the community becomes involved in one of the other investments, we’ll turn that into its own category.

My hope is that enough of the more seasoned mining investors will stick around and answer questions and help us understand this sector. I really know little myself, and judging from some of the questions and comments others have made, I’m fairly certain I’m not alone.

There will be no charge for the site. However I will keep the advertising up and also put up a donate button.

Once I’ve got it setup the way I’d like, I’ll open this site up to the public.

Thanks for your support.


#173

It sure would be nice to trade above .02 next week…Is that asking too much???


#174

Your asking the wrong crowd. Ask ETRD, NITE, CDEL. Lol


#175

Happy Mother’s Day to the Medinah Mom’s we have in the group!


#176

Very nice … Thank you!


#178

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


#179

Hi Kevin,

As always, thanks for your efforts and I hope the new program bears fruit as well. Drill, drill, drill is obviously important for prospective investors to see some MR/MR in order to better assign potential valuations. I’m hoping, however, that well before formal MR/MR are released that we can get some valuation indications from something even more important than MR/MR namely CASH FLOW and PROFITS from the early production opportunities.

I’m hoping that the terms and conditions of the deal with AMC will allow Medinah to siphon off their share of the profits as they are generated so that they are not rolled back into exploration and development. If this is the case, then it will be exciting to see what kind of numbers Medinah can initially generate from the Merlin Mine and Medinah’s 25% of the action there.

Then the key might be to predict the upward slope to these profits throughout time. We know that through time the amount of tonnage permitted to be produced at the Merlin Mine will probably go up. We also suspect that other production sites will be permitted throughout time. We also know that AMC has their own subdivision whose job it is to annex new mining concessions of interest which hopefully will also go on line. Medinah has been promised 25% of the action on new annexations also. This subdivision has already added 4,000 hectares to the property complex. Hopefully the growth profile for production tonnage allowances and the expected profits related therefrom will be robust. First things first, let’s see what the initial production numbers look like.

Whether you’re selling sardines or gold, there is a tremendous amount of DERISKING associated with going into production and generating profits than simply blocking out MR/MR for potential investors well down the road. A lot of deposits don’t have near surface high grade early production opportunities available to allow valuation estimations from cash flow. In these types of deposits you have to wait for MR/MR to be blocked out in order to assist in the valuation process. Once responsible operators like AMC have shown the mining authorities that they are behaving in an environmentally responsible fashion the production permitting process can advance much more quickly. After decades of criticism for being slow in permitting projects, the mining authorities in Chile about a year ago promised to revamp the permitting process to give a shot in the arm to the mining industry.


#180

25% goes to MDMN, 5% going to CDCH and 5% going to Nuoco. Jim, if you were AMC would you sign an agreement where 35% of the profits were to be “siphoned” out to third parties while AMC foots the bill to advance the mountain? Have you read Wiz’s comments re: his conversation with Maurizio? There are no profits to be siphoned if free cash flow is directed towards self funding exploration plans. As soon as hope is replaced with the realities of this investment we will move higher. IMO


#181

[quote=“Baldy, post:180, topic:1234”]
25% goes to MDMN, 5% going to CDCH and 5% going to Nuoco. Jim, if you were AMC would you sign an agreement where 35% of the profits were to be “siphoned” out to third parties while AMC foots the bill to advance the mountain?
[/quote] The 35% equity interest does not preclude a smaller percentage amount of early production to begin a cash flow as part of the deal that was struck. The 35% equity interest you refer to does not represent “cash flow” percentage of early production as you represent, but rather the percentage that a TO would net as an eventual buy out occurs. It is possible that cash flow from early production is only a fraction of the 25% to MDMN, 5% to CDCH and 5% to Nuoco. Call it an “early production bonus” instead. That should replace the all or nothing reality you present.

[quote=“brecciaboy, post:179, topic:1234”]
Once responsible operators like AMC have shown the mining authorities that they are behaving in an environmentally responsible fashion the production permitting process can advance much more quickly.
[/quote] This is a greater reality than many shareholders realize. I take a hint from the proposed project by the new CDCH board where a Knelson concentrator would be used to separate out gold before shipping (reduces shipping costs) and does not use chemical processing. Tailings could be stored and processed much later once heap leaching plants are set up for larger scale. These portable units are mobile, easy to set up, and relatively inexpensive.


#182

Then why would MDMN give the all the property with no cash to Auryn and wait 5 years or more to see any kind of cash? It doesn’t make sense MDMN could of just said that no cash from early production no deal!


#183

I’m done with the unrealistic hypotheticals, auxiliary agreement, dividends to leverage the disconnect, etc. Every single one of those speculations have been dead arss wrong. Looking forward to seeing the actual announcement from AMC so we can move on and forward.


#184

Stop reaching guys. This isn’t difficult. It’s a straight equity interest. As AMC goes into production and receives cash flow, it will be up to them to determine how much they want to allocate to distributions and how much they will reinvest into the project. For whatever amount they choose to redistribute each of the partners will get their appropriate share.

This is not very difficult to understand. Any speculation outside of a straight equity interest is clearly speculation and I believe it is incorrect. At some point AMC will make all this clear for those who don’t understand it or for those who are speculating on unfounded information from their “sources”.

It’s all good. The truth is great, no reason to embellish it with fantasy, speculation, or pie in the sky.

At the appropriate times AMC will let us know what has been resolved.


#185

Kevin: Please accept these comments I offer with the utmost respect for you and what you bring to this discussion.

There are some here who believe that Medinah shareholders will receive some form of dividends sooner rather than later. You stated it will be up to AMC to determine how much they want to allocate to distributions and that may be a 100% true statement. But if Medinah, while negotiating back to AMC the required $100M option payment, negotiated for a predetermined percentage of allocated distributions and reinvestment funds then it would no longer be up to AMC to make that determination but simply up to AMC to meet the requirements of the negotiated contract.

I offer this possibility without any knowledge of what happened during those negotiations and certainly without any “source”. I only bring up the possibility because as someone who has been involved in a number of past negotiations I have found that almost anything is possible if both sides are looking to come together in an effort to accomplish a common goal while looking to achieve a winning resolution for both sides.

Agreed.:slight_smile:


#189

Do you think we will here some news from Amc this week?