The Mining Play

Medinah Minerals (MDMN) - 2016-Q1 - General Discussion


#583

I gotta admit, it’s always nice when we are at least in a position to start building cash flow models…however, assuming 30 g/t average grade is super aggressive IMO. But, we could/should get more than 30% and the price of gold could/should be a nice clip higher by the time any production occurs.


#584

Baldy, couldnt JJ just give some money to a friend to do whatever they want with it wink wink nudge nudge then their friend gives them more money back down the road? You obviously know more about this than I, but it would be hard to enforce wouldn’t it?


#585

Interesting info and thanks for taking the time. Assuming Medinah has yet to negotiate their share on what basis did you use 30%?


#586

No basis at all…it’s complete speculation on all the variables other than the 5,000 tpm max. Who knows how it will work out – it could take 2 to 3 years to get to this and we’d be gone for all we know.


#587

I am still buying…Feedback…PLEASE…It just seems like a good hedge against the “real” stock market, which is totally in the tank…


#588

Our little “hedge” has severely underperformed the “real” stock market over the last few years. I would suggest that the “real” stock market is the hedge against this little roller coaster of ours.


#589

Personally I wouldn’t buy MDMN (or any penny stock) as a hedge against the market. If you’re hedging against the market and I’m assuming moving money into gold or other PMs, then you want to go with gold ETFs or stocks of established, undervalued companies that move with the price of gold. MDMN marches to the beat of its own drummer and could just as easily stagnate or drop with the market. Buying MDMN has been a hedge against sanity, not the market. :wink:


#590

OK SO now we are speculating that Auryn is now trying to get another private placement from MDMN?? So LES and Chapin and who ever else has stolen shares for the friggin Office space can sell them back to them.

THERE is no reason other then MDMN theft from shareholder we are sitting at .016 right now!! Stupidity close second.

WHAT’s the reason for the “VERY IMPORTANT MEETINGS” in CHile now? WTF??


#591

Fear not George. We have been informed that the BOD “decided to engage an experienced and highly competent legal counsel” for this trip. Do these guys realize how utterly embarrassing a statement like this appears to people following this investment? I guess they are confirming some past criticisms in that they previously engaged inexperienced, highly incompetent, legal counsel?

Our BOD is currently dealing with two aces in an otherwise mediocre hand:

  1. Auryn does not have controlling interest which will be difficult to attain without first securing JJ’s shares.
  2. Amendments determining percentage split for near-term production opportunities have not been negotiated.

IMO, this is Les/Chapin’s opportunity to come back with a TO (clean, efficient, and provides the desired exit of almost every insider) or a fair shake on the production (anything less than 50% would be too low IMO). The first option speaks for itself. The latter would mean that investors need to mentally prepare for a longer-haul as Auryn will not be incentivized to exercise the option/reverse merger/TO until the early production opportunities were voluminous enough to where the Letts no longer felt it was economic to share any percentage of production. This will take awhile but ultimately lead to the same exit at (arguably) a premium.

The only way the common shareholders could influence the above would be offering a block (300M+ wouldn’t be too difficult) to expedite Auryn’s controlling interest. That being said, a block under 10 cents probably won’t generate many sellers even though we are trading under 2 cents. This speaks to the underlying conviction for the value of the mountain. Sooooo, until the Letts are willing to pay at the 10 cent level (I believe JJ is at 8) we continue to be spectators.


#592

So basicly more BS… I wish to god once they would act like a professional board out to make sure the shareholders are protected and get a return on our investment but thats way to much to ask from this bunch


#593

John and Kevin you guys should be on that trip to Chile to over see these meetings


#594

Sound thinking on all your points in this post John. However, I must take exception to the following.

In general it’s not embarrassing to the kinds of investors and executives involved in pink sheet penny stocks. I have come to the conclusion that it’s my fault for expecting an experience I might get at Carnegie Hall when I am actually attending an open mic night at the local watering hole.

AMC’s execution on the exploration and mining side is up to the task. Thankfully that is out of our hands. We’ve known all along that professional communications is not our BOD’s leading skill. Nevertheless, I believe they’re capable enough to get appropriate counsel and sell this off to AMC at some point so we can all walk away with a tidy profit in the not too distant future.


#595

Is ANYBODY still “cautiously” buying???


#596

Everyone is tapped out. No promotion does that no New blood. Let’s see what “next week” brings from these meetings


#597

Hi Wiz,

I believe that 5,000 tonne per month (167 tpd) figure cited in a recent AMC PR refers to the current permitted amount of production at the tiny Caren group of concessions ONLY which AMC just annexed. It’s in the “mensura” (patented exploitation claim) category.

I believe Medinah’s ADL related concessions are currently permitted in total at 5,000 tonnes per day (tpd) or 30 times that amount after the recent environmental work was completed. To my knowledge, originally it was 500 tpd then some environmental work was done and it became 1,500 tpd and then more environmental work recently pushed it to 5,000 tpd. Producing at 5,000 tpd would admittedly necessitate some type of mini-open pit configuration.

What we don’t know is WHEN Medinah’s current “free ride” ends. Does it end on going into production? Does it end upon option exercising? Does a 15% equity interest in AMC post-option exercising connote to a 15% “working interest” in which Medinah is on the hook for it pro rata share of “cash costs” or “all in sustaining costs”?

It appears that it will take AMC about 2 years to spend that initial $10 million. If the budget remains the same for the next two years, even if Medinah is on the hook for 15% of the costs that’ only $1.5 million over 2 years. The interest earnings off of the $100 million minimum could easily cover that. So I’m not so sure about the accuracy of “that money is going into the ground” theory. Keep in mind also what happens once the cash flow starts. Once that happens, might the interest earnings off of the $100 million PLUS the cash flow from production, which will naturally ramp up with time, leave that $100 million pretty much untouched?

If Medinah’s 15% post-option exercising stake is a true “working interest” then you can imagine the critical role of the amount of the cash flow from the early production opportunities. The stronger the cash flow the quicker AMC might want to exercise the option so that they can share in the cash flow. Having somebody else shoulder 15% of the cost burden wouldn’t be bad either. The calculus would involve the interest earnings they would forego that their $100 million is currently earning versus 85% of the cash flow as opposed to “x%” of the cash flow without exercising.

Another factor that might induce them to exercise quickly has to do with any plans to attain an exchange listing. I would think you need to “own” something before going public. Holding a mere “option” that may or may not get exercised isn’t going to attract many investors. If a bank or private equity is somehow involved then you’re going to need to “own” something before that process gets very far along. Oh to be a fly on the wall at these upcoming meetings.


#598

Where does this assumption come from?


#599

i don’t want to be condenscending, and I apologize if I insult anyone’s intelligence, but I get the feeling that people think that there will be one open pit, like you see in copper operations. The way these veins are, you will have multiple small pits, benching down probably 20 feet at a time. The goal is to mine as little material and as much gold as possible. Removing overburden, excessive rock in not profitable.


#600

Small scale, but nice little gold from rock process demo:

Rocks to Gold pt 1: https://www.youtube.com/watch?v=56dPZckM98E
Rocks to Gold pt 2: https://www.youtube.com/watch?v=jwzcjk8t5vA
Rocks to Gold pt 3: https://www.youtube.com/watch?v=bKVzP6T90ac&feature=iv&src_vid=jwzcjk8t5vA&annotation_id=annotation_1186367043

44 gpt!!


#601

CHG, you and I are on the same page.


#602

Hey management! Sorry I figured out how to make polls (not really) but wth is wrong with me telling others how to?

One needs swimming lessons…before he/she drowns around here!

I swear it’s like you guys are hot and cold with censorship. Why don’t ya’ll get on the same page and tell us which way is up …and before we bump into your indiscriminate walls? Or be courteous and advise you did and why? Geez, where’s the problem with an after the censorship personal message? Like a warning, not to do it again. Do you guys have rules or is it the wild west and whose the sheriff at any given moment in time? All us posters ever get around here is a quick delete by one of you and find out after the fact.

To all, My best guess (and that’s all it really is) is they (the control freak powers that be around here) don’t want us lowly posters just hanging here because we have nothing better to do) making up polls around here…must be too democratic.