MDMN - 2016-05-16 Weekly Discussion

You deal with it by executing and creating a profitable company that distributes dividends. Any other way doesn’t work (imo.)

Personally I don’t believe there is a massive short position. Regardless if there is one, execution is the only way to get rid of it.

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I’m confused I thought GC Capitol was the Wizard and Wizard is GC Capital? Who’s on first. Lol

Where’s Charleston Heston when you need him?

Nope - Different people.

One might get a better appreciation for where Medinah is headed in the future if your reference is how Medinah relates to “Masglas” and not just to “AMC”. Masglas currently has 9 100% owned properties in Chile that they bought from First Quantum which inherited them from their Inmet acquisition. Masglas owns 65% of AMC which owns the ADL. The total hectarage of these 10 projects weighs in at about 30,000 ha. Medinah’s ADL makes up about 10,500 of these hectares. I would suggest it is accurate to say that the ADL is clearly Masglas’s “flagship” project in both stage of development/proximity to production and projected mine life. This is my opinion.

Masglas is about to close on 2 more large acquisitions. This will bring their Chilean project count to 12 and their total hectarage to over 50,000 ha. I believe it safe to say that Masglas has a voracious appetite for Chilean mining projects especially in the Chilean Coastal Cordillera where POWER and WATER issues are less dire than those in the Atacama and in the Andes. My sources agree that Masglas has what might be characterized as an UNLIMITED amount of financial capital dedicated to these projects. They have assimilated what appears to me to be the equivalent of a “dream team” dedicated to this pipeline of projects. They seem to utilize the best of everything including lawyers partly because they own their own law firm. What I’ve noticed about them is that simply put they EXECUTE. Unlike other explorers/developers they don’t have to spend 70% of their time and efforts raising money. They have capital in search of a RETURN ON CAPITAL at a time when bargains abound.

For Masglas, the ADL project is a bit of an outlier in that they have not assumed 100% ownership of the project yet like they have all of their other projects. Since the ADL project is the only mining project within AMC, I would assume there would be economies of scale available to incorporate AMC into the overall Masglas “empire” via some sort of M and A move. The table appears to be set for such a move in that Medinah owns about 30% of the overall mining district (includes 15% ownership of Nuoco-another “outlier”) and Masglas (and associates) own about 35% of Medinah’s shares. It reminds me of the Auryn ouroboros insignia of 2 snakes swallowing each other’s tails. Where does Medinah end and AMC start?

I think one thing to keep in mind is that Masglas’s profits on the ADL consist of what DIRECTLY comes from their 65% ownership of AMC and what INDIRECTLY comes from their ownership percentage of Medinah. This should theoretically keep a bid under the Medinah share price because Medinah share purchases increase their overall ownership in AMC via the INDIRECT route. This in turn consolidates their ownership of the “outlier” of the various Masglas assets i.e. AMC.

With the ADL being the first Masglas and/or AMC asset going into production, the early production opportunities at the ADL could provide a catalytic effect definitely on the ADL project and possibly even a spillover effect on the development of the entire pipeline of projects within Masglas.

What Masglas appears to currently have with their access to capital is an insane amount of LEVERAGE. At the ADL, it appears that for every million dollars worth of capital they put into exploration/development they can drive up the NPV by 10 to 20 times that figure. Success at the ADL should in turn enhance the prognosis for the success of their other projects once the mining community takes notice of their accomplishments.

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What trading venue would you suggest? If we (MDMN) are to become a holding company from which to receive dividends I don’t understand what the difference is other than depending on what level above the pink sheets you trade on might incure additional cost. If true, then we are what we are and wouldn’t we be looking to hold down expences to increase dividends. Dividends should result in an increased share price and the greater the dividends the greater the share price.

Where did I go wrong, or did I?

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Einhorn is Finkle and Finkle is Einhorn…

Hi Big K… Still trying to get parting the sea down pat… Figured if I could do that I could take the SP to at least. 25… Lol

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deleted by me

Here your forward thinking appears to look not much further than the near term. You seem to be overlooking your earlier post.

You do agree that Auryn will monetize the property and as that monetization occures it will take the form of dividends.

  1. " trading without 200M+ shares short"
    Consider (just to make the math easy) once Medinah has $13.5 Million to issue as a dividend then each share of Medinah will receive a one cent dividend. Anyone short Medinah will have to make up each of those short shares by either buying them off the market or paying the one cent per share dividend. How long do you believe those short shares will remain in shareholder accounts before being bought out, once cash dividends are being paid? How many of those dividends will be issued before there are no naked short shares?

  2. “more liquidity”
    My guess is that gold production and dividends will result in higher liquidity. Any short covering will just add to it.

  3. “less corruption, more integrity”
    The introduction of a full board of directors who are dedicated to these principles will take care of this. It doesn’t matter what exchange you trade on. A lack of intergrity and full scale corruption can be found anywhere. Allow me to offer two words. (Goldman Sachs)

  4. " a more appropriate market cap"
    Looking forward, production, dividend, drilling, dividend, open pit, dividend, more drilling, more production, more dividend. (Done, Done, Done) Looking for a bright future. :sunglasses:

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Interesting day today…

Date Close High Low Volume Short Volume % of Vol Shorted
Jun 07 NA NA NA 243,041 242,781 99.89%

All but 260 shares were short today.

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Masglas and Medinah are, in a way, equal partners in AMC. Equal in the since that neither partner can take a dividend of profit without the other partner being owed their share of profit. If Masglas takes $6.50 of profit then Medinah is owed at least $2.50 in profit. If the ownership of Masglas ever expects to receive a dividend of profit then AMC will have to issue it to both Masglas and Medinah. So, you may be correct in that AMC has zero obligation to issue a dividend but I suspect the ownership of Masglas will insure that as production exceeds funding requirements a dividend will be paid. Remember, as each of those $10.00 dividends are paid out, Masglas ownership receives $6.50, Medinah receives at least $2.50, and then Masglas ownership receives back 1/3 of Medinah’s dividend as 1/3 owners of Medinah. It’s called the incentive program. :wink:

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It is also called circular ownership, which is an opaque and complex corporate structure.
:grin:
MASGLAS executive BOD are no dummies!

For an alternate point of view, watch the Rick Rule video on the Other Mining Stock thread

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GDXJ new 52 week high 40.36

Gold 1265

MUX 2.65

MDMN .0153😔