I know but that doesnt mean that LES stopped. I was wondering about his office and what his plans are.
I hear he’s working on NPER To what extent, I don’t know.
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Thought this article was interesting, not because of the parties or share price, but these passages.
Hecla, which operates mine in Alaska, Idaho and Mexico, declined 5.1% in New York for a market valuation of $2.2 billion after the company expressed its “disappointment with Dolly Varden’s expensive debt financing followed by its planned dilutive private placement that effectively acts as a poison pill, raising the cost of acquiring Dolly Varden by more than 50%.”
Despite withdrawing our bid, Hecla will invest to maintain our 15.7% interest in Dolly Varden because of our long term commitment to the Dolly Varden property. We are disappointed that the Securities Commissions’ decisions take away the ability of existing shareholders to choose our premium bid, effectively forcing their continued ownership of Dolly Varden,” said Phillips S. Baker, Jr., Hecla’s President and CEO.
Vancouver-based Dolly Varden said the Ontario Securities Commission agreed with Dolly Varden’s contention that “Hecla’s unsolicited bid for Dolly Varden was an insider bid and therefore Hecla must obtain and disseminate to the Company’s shareholders (at its own expense) an independent formal valuation.”
I understand they hired someone to clean up NPER, fwiw
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Is everybody pumped up for the next two months leading up to our informational meeting? Maybe we can scratch and claw our way to .02 before then. Time to buy…buy…buy…Right???
Before that…only a few days till August and the month the highest grade gold mine in Chile…the Caren/Merlin mine should be completed and commissioned by the Chilean government. Weather looks excellent again for the foreseeable future so hopefully they will finish on schedule.
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Hi Mike,
The current #1 (Pimenton), however, seems to spend more time snowed in then operating because of it being at the 4,000 meter level in the Andes.
Looks like their average grade is about 16 grams/ton gold equivalent. I think the Caren will end up being double that.
The latest snowstorm may have just put that Company out of business.
http://www.cegmining.com/sites/default/files/pdf/news-release-june-20-2016.pdf
It is a very small operation but employs 285 people and is operating at a loss. It is interesting to note that Auryn has stated a cut off grade of 15 grams/ton which is almost exactly the same as the average grade at the Pimenton mine so perhaps Auryn didn’t just pull that number out of nowhere.
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Mike, as always, your insights and dot connections are always appreciated…and equal kudos to CHG…always enlightening.
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Auryn 2017 production projections: 25,000 Oz
25,000 Oz * $1340 = 2017 Revenue projections of $33.5M @ current POG
MDMN @ $0.012 = mkt cap of $0.012 * 1.35B = $16.2M, which implies a mkt cap for Auryn of 4 * $16.2M or $65M, which is right at 2 * 2017 projected revenue.
Now we are getting down into the range where the valuation makes sense compared to the rest of the world taking into consideration we are still waiting on ounce #1. The risks still are in getting production going as planned and on time.
If they hit 5000 Oz by December as planned with grades anywhere near what MG is suggesting and keep 2017 projections or increase them, then 2 * revenue will be low, assuming costs are inline, which we probably will not know for sure until EOY.
Altogether, this implies from a fundamental perspective that the bottom is near as long as Auryn executes, somewhere between now and EOY, more likely Thanksgiving, maybe even the Informational Meeting date or before as people gain confidence Auryn will actually do what they say they will do.
Once this baseline is set and Auryn starts reporting exploration results, multiples can increase and even speculation on exploration results or increases in POG becomes possible in 2017. 1.35B shares will continue to be a heavy load to be factored in.
But money is starting to flow into all levels of the PM mining share market. If it heats up enough and Auryn generates enough good news from production and exploration it would makes sense for them to try and take advantage of that in some way. We will have a much better sense of that by end of this upcoming exploration season in Chile (spring 2017 in North America), imo.
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I personally am not at all nervous now and if we move below the 1 cent level will not be concerned then. I understand that AURYN is moving forward toward production and continued exploration. We know what is now happening on the property both now and the short term time line for production. While knowing and understanding this I also understand that there is no difference between today’s share price and a share price less than 1 cent because I understand that unless someone is in dire need of the money there is no reason anyone should be selling now when the future of this company is actually looking better now than anytime in its history. A review of cornhuskergold’s above post offers one of the the truest representations of this future available for your review, in addition to AURYN’s web site updates.
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Don of course your not too concerned you have a cost basis of .015 many others sit here with cost basis of .05 .10 .15.
I too am looking forward for Auryn to move this mountain forward.
I’m not looking at what I purchased the stock for but what I believe it will return to me. While my avg. share price may be low, eventhough I have purchased a number of shares above the 9 cent level, I continue to consider those shares as an investment that will make me money. My point is that it’s not todays price that should be a concern but rather the ultimate return once AURYN is hitting on all cylinders and Medinahs share price is reflecting value in my portfolio based on both dividends and increased share price.
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This is a point than many folks here need to better understand. It hasn’t been fun watching the stock implode while we transition from a spec penny stock play to a legitimate junior miner but a more solid floor and/or foundation is the net result.
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So, we’re still waiting for the quarterly financials to see what the 25% of Auryn is valued at?
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There isn’t going to be any market valuation there. Just cost, which is basically the values that already exist on the balance sheet now. A better barometer is what the stock market is saying.
Recall the Wizard mentioned that financials could end up being late. They may not be in a hurry to put them out until they know that they are correct.
As I stated before, I look for both the amount of debt and the number of shares issued to be down by the informational meeting time.
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Nice to see all those piles of wood in front of the Caren entrance. It means that the grading has concluded and the next phase has begun. Building the entrance should be a cookbook exercise and then we have a mine ready to begin. No reason to think they won’t finish on time which would be right around August 20th. (Note: The high grade ore begins right near the entrance; won’t have to drift far to begin actual mining.)
An excellent report just came out today on the Pimenton mine in Chile. It is basically across the valley from the Alto in the Andes on the Argentina border at around 12000 to 14000 feet up. As Doc mentioned, it is currently the highest grade gold mine in Chile at around 12 grams/ton gold equivalent yet it is still losing money. Its production rate is a little lower than what the Caren will be and it does on site processing with something like a total of 285 workers. Reading through the highly detailed report, you will understand why it is losing money and it presents a great comparison to the Caren mine and why Auryn should be able to avoid the high operating costs while they mine a much higher grade ore.
Definitely take the time to read through this:
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