" Even if this is the ultimate home run and we end up with 25% of the assets we would still need a $4 billion valuation for CDCH to reach 10 cents. Is it more likely we get a “10 bagger” here or with any number of other junior miners with 50-100M shares outstanding, a decent resource, a high likelihood production, trading at 5-10 cents??? How many $4B market cap companies are you familiar with? "
What about GGI.V market cap of 314 mil with 116 mil shares out, hit 5.30 last fall and trading at 3.18 and no production just exploration on nickel and copper NO gold. I understand what you are saying but sometimes fundamentals just don’t work or else everyone would be a billionaire.
I know you love your market caps but it is a rather flawed way to value a Company per numerous references that are easy to provide especially for microcaps. In particular, most here have paid more for their shares than the current market price so market cap doesn’t provide any sort of “cap” on upward momentum.
At one point in time, I would say that a home run was actually likely but of course I have no idea where Medinah/Cerro/Auryn stands now. It goes without saying that all numbers can be changed drastically in our favor through some profitable near term mining starting up.
In case anyone might be interested and hasn’t checked the other threads, I’ve been posting charting analysis on gold, eventually silver, a couple mining stocks so far and I’m also posting my swing trade entries and exits for oil and perhaps some other things. I will do some requests as time permits. Retirement hasn’t suited me very well so I jumped back in the game, just as more of a bench player instead of a starter this time around!
Eh TR - you said - I’ve been posting charting analysis on gold, eventually silver, a couple mining stocks so far and I’m also posting my swing trade entries and exits for oil and perhaps some other things. I appreciate these futures charts so keep up the good work. Cheers!
it’s these types of comments that give me hope that this stock can find a random catalyst to rally to a price beyond any fundamental rationale…for long enough for me to sell
Pardon me for responding BE, but it was the fundamental rational of holding on to a World Class Deposit that kept me incrementally adding to an already oversized position, month after month, for over 10 years! What could possibly go wrong?
Mining & Investing-Latin America Summit to be held in Lima Peru on Oct 28-29, 2018 will feature Dante Conetta, Chief Financial Officer, Cerro Dorado and Masglas Corporation and Chief Executive Officer, Auryn Mining giving a mining project presentation.
Each presenter is given 8 minutes to identify what makes their asset unique and what level of investment or funding they are looking for.
After each round, our panel of select judges from the investment community will deliver live feedback on what they liked and what they would have wanted to hear more about. Investors want to see:
Valuation arguments
Differentiation from competitors
Technical information or potential of resources
Management Story, expertise and track record in country
MG,
Thanks for bringing the roadshow presenters to our attention. This meeting is touted primarily as the only gathering of miners, financiers & investors in SA.
Mining & Investment Latin America is firmly established as the continent’s gathering of mining companies, financiers and investors to assess the opportunities and challenges that exist for the Latin American mining industry.
It is focused to the larger South American and International audience, which aligns with AURYN’s longer term goal to become dual listed at some future date on the OTCQX®.
How we get there will be by “grooming” and transforming CDCH into an attractive investment that owns the Altos de Lipangue mining district. Eventually merging into AURYN as the underlying asset is a logical progression. It appears Dante Conetta will predominantly be showcasing Auryn’s Mining project at this Latin American Mining and Investment Summit. It is AURYN Mining that is highlighted in the meeting’s agenda.
Dante Conetta, Chief Financial Officer, Cerro Dorado and Masglas Corporation and Chief Executive Officer, Auryn Mining
This is an indication of things still moving forward. AURYN will be promoted after all shareholders are moved into CDCH with unrestricted shares. It will be necessary to find a way to fund the exploitation of the Larissa adit and Caren targets.
Just curious on any speculation of how things will be funded to start actively mining again in Adit 3 this upcoming season. Most of AURYN’s activities through early 2016 were financed by a loan. To make the ADL projects a success the initial CAPEX was expected to exceed $100M. Has that figure changed at all?
Had things worked out as anticipated, early mining would have repaid the loan in full, but then largely due to legal entanglements, a halt was put to progress. This was the funding announcement starting out in July 2014.
The uncertainty of the outcome of the legal suits caused an immediate crisis as to how to proceed. The past two years managements of CDCH/MDMN/AURYN & MASGLAS have been working past the problems that were created. The ADL was obstructed in some major ways that have now mostly been overcome. Project delays in the mining industry are very common due to a variety of reasons, but I consider the fact that aggressive goals have been announced reassuring. Management has a plan and the expertise in place to reach those goals as outlined in December. Will we start seeing results of management’s efforts in the upcoming mining season?
Looks like the price of gold is trending down - seems like it’s been above 1,300.00 for awhile and is steadily declining. I guess it makes sense, as the economy is moving along at a nice, healthy click …
Mr. Powell apperantly from some articles doesn’t know his azz from his elbow. There was an article in the financial times that stated the economists were right only 2 times with their predictions on all of the recessions up to today. The economy is running on borrowed debt with Trumps tax cuts with corporate stock buy backs at record highs. Companies have all this cash from the tax cuts lying around and buy back their shares. Time for another recession long overdue.
I think we’ve probably covered this before, but let’s just say some of the recent talk (not to mention management’s stated goal) of production comes to fruition later this year - where do we get the most bang for our buck, buy-backs or dividends? If there’s somebody who’s an expert on that, it would be nice to re-visit.
Your assumption is that there are profits remaining over and above any profits put back into the ground to further development efforts. If that’s the case, which is a big if and more of an exception than the rule at this stage of development, then the share price/market cap compared to fair market value in the mind of management would dictate what to do with the excess profits.
If the market cap is perceived to be lower than it should be then management might want to buy back and retire shares FIRST in order to supercharge any later cash dividend distributions. The purpose of any share repurchase program is to buy back and retire the maximum amount of shares given a finite amount of money allocated to that purchase. You don’t want to chase the share price up. The share repurchase program, however, might provide a subliminal floor under the market which might provide comfort to investors sensing a built in “stop loss”.
The generosity of cash dividends on a percentage of share price basis could “push” the share price upwards. If a firm is able to comfortably afford a, let’s say, 5% quarterly dividend, then obviously the share price is too low. The norm is about 4% per annum or 1% per quarter. If the market is really brutal and refuses to go up then that’s just fine. Shareholders could conceivably use their cash dividends to buy more ultra-cheap shares so that over time they could expose larger and larger share positions to hopefully larger and larger cash dividends as profits hopefully rise with time. Don’t forget the tax implications, however. The same thing applies to share repurchases. If the market refuses to budge upwards then that’s fine. Management can buy back and retire ultra-cheap shares which will supercharge future dividends on a percentage of share price basis.
The beauty of profits is you can say to heck with the markets we are going to concentrate on providing SHAREHOLDER REWARDS in the most efficient manner possible. The mining industry has changed over the last dozen or so years. In the old days management would put any profits into blocking out more MR/MR. They’d strut around bragging about how many ounces of MR/MR are on their balance sheets. The problem was that “the market” didn’t give a corporation much credit for an ounce in the ground. The market was smart, it knew that all ounces of MR/MR aren’t created equal. Mining investors pounded the table and demanded that management concentrate on the provision of SHAREHOLDER REWARDS not ounces on the books that may or not be economic.
AMC management has been riding the fence on these issues. On one occasion they stated that after the first full quarter of production they’ll review the possibility of cash dividends. On other occasions, they’ve hinted that any profits will be steered to further development efforts. I would think that if we could land a lucrative JV with a major to develop the Pegaso Nero and maybe the LDM stratabound deposit and have them pay the associated bills then perhaps we’d have a better shot at share repurchases and cash dividends or a blend of the two. The flip side of that is that if we can put a million dollars of profits into the ground and increase the perceived value of the mining district by $5 million then maybe that should be considered. The key, IMO, is for management to send the message loud and clear that they are interested in focusing in on the most efficient method to provide SHAREHOLDER REWARDS first and foremost.
