I donât think that most are âshrugging offâ the issue. They (I) simply donât believe there is anything that can be done about it at this time. However, over time dividends will be the best fix to correct the issue. Until then, there is no use in getting your gut tied up in a knot. Just know itâs there and enjoy watching it be resolved, when it is.
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Auryn/Masglas listing on the TSX-V would be a nice step. It would give all the MDMN shareholders equity in a publicly traded company. That isnât too far off.
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I do not think it was sufficiently discussed as to âwhyâ Masglas / Auryn would sponsor a show / event like the Chile Explore Congress 2016.
As a private company exploring their own property - what benefit is that to them? To promote Medinah shares? I doubt it. And why do they have two English based websites for Peru/Chile based companies. Just for fun? Just for Medinah shareholders? I doubt it.
By this event they will be in production, according to plan, with a very concrete 2016 production goal, and a more precise 2017 production goal. There should be more information about 2017 plans like the Fortuna / Merlin open pit etc.
From the May 16 Auryn update:
As we progress toward full scale production AURYN will provide updates regarding costs, mine life, and reserves.
Things like production projections, âcosts, mine life, and reservesâ are the data by which public mining companies are valued. All of these things, while not decisive, would lend themselves nicely to the theory that Masglas is positioning / prepping for going public when markets and data permits. As the market continues to improve, AMC is in production with profit, reserves, and other data then they will be in a good position to do that if it makes sense for them to do it.
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L&G: Itâs a tired subject, and, if you havenât figured it out, most of the long time holders of MDMN shares (real or air shares) donât believe anything will be done until we are in production, & have the ability to support dividends (should that be what Auryn decide). Until then, it is just not worth regurgitating this tired subject.
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I believe there has been manipulation in the past and there is mostly likely a large legacy NSS position in both MDMN and CDCH. The push back you have read from some is more in relation to those who cling to manipulation in dismissing every downtick. Or those who dismiss the lousy share price to the weakness in the GDXJ and evil market makers. It was never the BODâs fault (until the recent capitulation in the face of the the obvious). These are misinformed, lazy, excuses. If there was something that could be done about the legacy short position it would be done. Time and execution are, IMO, the only remedies to treat this ailment.
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I hope they donât pull the have one share of Auryn for 66 shares of mdmn
Just back of the envelope, it would be closer to 1:50 (1 AURYN:50 MDMN ).
Not bad if AURYN was distributed as a dividend only, listed and free trading. 
In a few years, once AURYN becomes cash flow positive, early exploitation of high grade gold is expanded, and a small dividend is released to AURYN investors, MDMN (the holding company until a TO is effectuated) receives a percentage distribution from itâs AURYN shares. This would be an example of circular ownership that was described more than a year ago.
http://theminingplay.freeforums.org/post12020.html?hilit=muddy%20waters#p12020
Or, they may be drawing attention to the mountain for a future flip!
A lot of things can happen as a result of the above. Maybe, They could use this to attract partners with other majors to mine the ores they are not interested in.
Just curious if the meetings concluded, or are they still continuing?
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Hi CHG,
Great points as usual. Itâs going to be a lot of fun watching this play out. Iâm still trying to let it sink in that I, due to my Medinah share ownership, now hold a piece of the action in a very prolific mining district run by a âdream teamâ. The AMC mining professionals are clearly running the show and are the largest shareholders in Medinah. I like that concept. That concept of the âNew Medinahâ (post-ADL acquisition) owning about 30% of AMCâs mining district and Masglas/AMC in turn owning about 30% of Medinah is tough to comprehend. The best analogy is the Auryn insignia featuring 2 snakes swallowing each otherâs tail. Where does Medinah start and where does AMC end? Is the âNew Medinahâ (sort of) sponsoring that upcoming Mining Congress down in Santiago? Could you imagine the âOld Medinahâ being in a financial position to make a move like that?
What Iâm not sure people comprehend quite yet is that this thing called a Medinah share is CURRENTLY the gateway into owning a piece of this mining district and putting oneself into a position to benefit from moves like sponsoring large Mining Congresses where all of the big wigs in the industry congregate. These types of relationships could represent the exit strategy for Medinah investors as I certainly canât imagine Masglas/AMC going below their current 65% ownership stake. I would think that Medinahâs stake would clearly be the target for any new players wanting to gain a piece of the action.
As far as the timing of AMC or Masglas going public, a lot of the time you go public is to gain access to money. I donât think they need the money by any stretch. I think they realize that the NPV of this deposit plus Medinah plus AMC/Masglas could go parabolic at any time. Could you imagine coming up with a couple of long intersections into the Cu/Mo porphyry in the near term and its effect on the NPVs? Or how about the grades at the Caren going nuclear or a bunch of new production permitting landing on the doorstep?
I would think that Masglas would want to ride any potential near term parabolic growth âwaveâ while flying solo rather than after carving up ownership with the public. If the NPVs were to plateau out after an explosive growth phase then you go to the public markets. Most mining entrepreneurs donât have that luxury and have to go public but then again most mining entrepreneurs arenât sponsoring Mining Congresses at this stage of development.
Iâm curious if Masglas/AMC might be a little âsnake bitâ about going public. They and their associates just bought 150 million Medinah shares out of the open market and drove the share price from 5-cents to 10-cents. Once this wave of buying was done then the market makers predictably âwalkedâ the share price back down to about 1.5-cents. You and I have seen this phenomenon a million times but have they? Are they scratching their heads going what the heck was that all about? Now my sense is that they are indeed still buying but theyâre not about to let that happen to them again. Were they naive and overpaying at the 10-cent level from a valuation point of view now that the stock is trading at one seventh of that level? Absolutely not, these people have made gazillions of dollars in the markets worldwide and have professional consultants that can run circles around the rest of us.
CHG, thanks for all of your insightful posts you have been a wonderful contributor to the cause! I canât think of a group of human beings more deserving of success in this particular investment after all that theyâve been through.
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Concluded.
MG. Anything you can share that came out of the meetings?
YesâŚUnless you can provide some evidence supporting a $560M valuation for AMC. Iâm going to assume this is your new datapoint that we are going to have to read over and over. Insiders paying 10 cents to front run news several years ago is totally irrelevant to discussion on valuation. IMHO
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Mike, do you believe that any news will soon be released as a result of the concluded meetings?
Let me suggest that the rumor mill has been shutdown and that the best approach is to put a tracker on the AMC site to notify you regarding site changes. Eventually Iâm hoping MDMN creates an email distribution list to notify its shareholders when they release news. 