The Mining Play

Medinah/Auryn - 2018 Q4 General Discussion

It has been a brutal market since 2011, esp. for junior exploration companies and esp. those in primary silver production.

The better companies have been consolidating along the way, improving operations, lowering costs, etc.

Hochschild has actually been profitable even recently, improving its balance sheet via major debt reduction and increase in cash balance. They appear to be well run. From their Aug 2018 presentation:

It will be a disappointment if they take a pass on the LDM.

This next leg down in prices in silver and the base metals since mid-summer is putting renewed pressure on all these companies. You can observe the results in the Q3 numbers of many companies and you will see more in the Q4 numbers. I’m sure H. is wanting to be very cautious in their expenditures as will everyone as they wonder how long $14.25 silver / $1220 gold is going to be around. Recent commodity pricing is not very cheery. On the other hand, the recent plunge in oil prices will help with fuel expenditures in 2019 if it continues.

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My guess is that Hochschild will eventually move forward but they have several other projects that are further advanced that will take priority. Unfortunately, we don’t seem to have much leverage. If they ask for another extension beyond mid-December they will get it. My bigger problem is that I can’t make the valuation work even assuming the deal DOES move forward. There are lots of other opportunities beyond the LDM to enhance value but they are all too far down the road to assign value today.

All three of Hochschild’s growth projects have been on hold since 2013 due to the weakness in metal prices. Perhaps they view the LDM as viable in the current market while waiting for better prices to start the others back up.

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That should be the case. I mean isn’t the LDM a skarn of unlimited dimensions etc and the biggest remaining in S. American? And all of it being next to infrastructure? Of course with Les & Juan having been a conduit of much of the information, it is hard to say exactly what to expect with the LDM. The geology there is extremely complicated. However, there was a lot of geological information that was shared that supports the notion of an economically viable deposit of both gold and copper. Looks like we only have a couple more weeks of waiting before we know what Hochschild is going to do.

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From the early days of Medinah, shareholders thought things were pretty brutal.
I don’t know who posted it, or if the person is still around, but the post went like this:

If ever I am tied to a chair, with jumper cables attached to my parts,

I will look at my torturer and say…

“This ain’t nothin’!.. I survived Medinah!!”

I think it expresses the feeling towards this stock of many of us still here. :persevere:

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I thought that was what the wife told me, if I looked at another mining stock!

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I think the only thing that sparks this stock, is LOI changes to JV/else plus silver and gold take off

This was probably one of the hurdles western Troy and masglas had to get past before moving on with proposed RTO…This was agreed on November 29 of this year and last update from western Troy said they would hope to have everything finished with masglas by end of November.
https://www.nasdaq.com/press-release/western-troy-and-canada-revenue-agency-reach-settlement-agreement-20181129-01127

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9 posts were merged into an existing topic: Other (Non-Mining) Stocks

Funnyman…

I don’t know why you haven’t gotten a response, and I have only seen your last two posts so I may not fully understand your situation, but you are aware that MDMN is either eventually going to become AUMC or give us a dividend of AUMC shares, aren’t you? None of us knows how this is going to be done yet, but each of your MDMN shares is worth approximately .00558 AUMC share. You might want to hang on to both of them for now. If you must sell one or the other, MDMN is the more liquid of the two. Hope this helps.

Not half a share. Each MDMN is supposed to convert to .00558 AUMC shares.

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Thanks for that. Another reminder to me that multi-tasking is not my bag!

The 0.0058 was the conversion factor applied to compare CDCH shares to MDMN shares, not AUMC shares. AURYN is already holding the restricted AUMC shares. 1/2 share is approximately the conversion for each 100 MDMN shares owned. If shares are distributed as a divy, then 0.0058 is the correct factor applied. Anyway you look at it, MDMN is due a divy or conversion to AUMC shares.

FYI - I created a new topic for Other (Non-Mining) Stocks so that we don’t clutter up the MDMN/AUMC thread with OT discussions.

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https://web.tmxmoney.com/article.php?newsid=4700746434374617&qm_symbol=WRY:APH

Maurizio is trying to accomplish something with a mining investment vehicle. Perhaps with Masglas going nowhere, he will refocus his efforts and making something out of Auryn instead?

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We can hope.

It was a “messy deal” at best that certainly could NOT be completed by the Dec 3 deadline or within an additional reasonable extension of the deadline. Resolution of the CRA was cited, but does not seem to be the deciding factor, even though it was only resolved as recently announced on Nov 29.
https://globenewswire.com/news-release/2018/11/29/1659731/0/en/Western-Troy-and-Canada-Revenue-Agency-Reach-Settlement-Agreement.html
Given the requirements of the RTO there was not a 1 for 5 consolidation of shares, nor did the required $500,000 private placement by WRY take place.


A refocus on completing goals for uncovering the full length of the 42m intersection of the main vein in the Larissa adit and beginning exploitation should be keyed up.
Perhaps also announcing potential JV partners for completing exploration and exploiting the Fortuna, Las Dos Marias, and Pegaso Nero targets would be on the horizon for 2019. Shareholders are waiting for news without digging for it!

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Let’s hope we have better news coming in the next couple weeks.

I’m focusing on this part: “We are keeping the door open should MASGLAS be able to better define a source of funding for the RTO”

It appears just like Auryn, Masglas has no funds. Not really surprising considering current market conditions. And why should there be any funding? To put it plainly, Maurizio has done a HORRIBLE job promoting both investments. With even a modest effort on his part to keep shareholders properly informed, we could have done a lot of the promoting for him like we did for Medinah and attract some investment. He has made our investment so boring that it is more interesting to watch paint dry! Even here on MP, the focus of discussion on this investment, there is more meaningful discussion about bitcoin, marijuana, and other mining stocks than Medinah/Auryn! I am not one who enjoys criticizing Management as many know but really even I have my limits for patience. It has just about run out for Auryn to prove themselves worthy to develop the mountain of gold they own. The final straw will be whether they can consummate the Hochschild JV or not.

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