In have been following the PM market very closely through various super cycle newsletters and all of them are forecasting a slight rebound in 2016 followed by a decline and then a complete turn around in the market in 2017.
In either case you do not take actions in a market when that market is in its worst condition. The smart money waits for a turn and then jumps in. Why do you think no one is buying yet in the PM markets. I like to buy when I know other are getting ready to buy too, because they have see the bottom. You might like to buy a falling knife but I do not.
You are entitled to your opinions just like I am entitled to my I just do not keep repeating it over and over again since that is all they are opinions and this time without facts to support them.
It is not wrong ! You have to value companies when there is no revenue based on their balance sheets. I did not go into every detail like paying off MDMN debt and including Auryn Debt and other liabilities, since it does not really change the bottom line that much.
I will go back under my rock now, since it is a better place than this discussion and allow others their own judgement.
One last point L&G, Your analysis and math assumes that MDMN is buying 15% of Auryn for $100 M. That is not the case. MDMN is selling Auryn an asset or group of assets for $100M plus 15% of Auryn. There is your major difference.
I think that Auryn will gain control of MDMN. The 100 Million will be paid to MDMN. The new BOD will decide to pay themselves some exorbitant fees and then spend the balance of the 100 Million on more of JJ and Claros properties that they trade to American Sierra Gold for stock.
Enough mental masterbation and I am right and you are wrong stuff.
Yo L&G: Apparently you havenât been here long enough to know that EVERYONE on this board has been wrong nearly 100% of the time. In time, you too will recognize that you will have to add your name to this illustrious list of fortune tellers.
Ok so whereâs the news? Judging from previous history we will get the update when everyone is eating their turkey dinner thus it will fall on deaf ears. Nothing seems to change with this BOD.
Still looking for PIFâs for any Lettâs related folks, but did come across this. A while ago, I stated that there were no SPACâs on the TSX, rather they used Capital Pool Corporations (CPCâs) which were limited to a max raise of $5 million until it did a Qualifying Transaction (i.e. acquisition).
Came across this link, it looks like two SPACâs, sponsored by big brokers, are trading and the interest in the vehicle is huge.
Please donât. I appreciate this discussion. L&G is reminding me of Trump. As much as many donât like Trumpâs presentation, at least part has merit that should not be ignored, regardless of itâs lack of political correctness.
One of the factors that you need to consider in the equation is that not only is Auryn investing its own time and capital during the option period with no return/equity, but it is spending capital to acquire shares in MDMN, how much? no one knows, but at the end of the process it will be considerable and hence the reason they can control how the $100 million option payment is invested/disbursed.
If you or a group want to go out and acquire 51% of the stock, then they can have the say so over the option payment.
Obviously, in either case there is a fiduciary responsibility to use the funds wisely.
I must have missed the update from Auryn telling us about their exit strategy. I havenât dropped the TO hypothesis, Iâm simply acknowledging that your hypothetical could make sense. It makes a lot more sense than the Letts focused on buybacks or dividends but these are all just opinions. Unless youâve been speaking to Roberto (and I donât mean our crazy IR guy) it seems like youâre already relying on your opinion as fact without any confirming evidence. Never a good idea around here.