It’s really not that complicated…there is no current interest in MDMN because mining investors are focused on bigger and safer names in the industry that are currently producing and that were beaten down by the price of gold the last couple of years. Despite being up 300%-500%, mining investors are buying reliable companies on the dips as we enter the first leg of this bull cycle in PMs.
For the most part, the only investors in MDMN are old shareholders, penny stock speculators and a handful of new ones that have been made aware of the opportunity by Auryn/MASGLAS. None of these shareholders are particularly motivated to buy at the bid or in volume at the current time. However, that time will eventually come, just not now.
At some point in the near future, Auryn will provide information that will allow other investors to see the potential and undervalued nature of the MDMN stock. This will be in the form of gold grades, tonnage and dollars. When there is a compelling story to be told, it will be told. Right now the company is in prep mode, during the Chilean winter, and it is a dull time for mining investors with exposure solely in the Southern Hemisphere.
While Auryn prepares the Caren mine for the upcoming season, the MDMN share price is most likely going to continue to stagnate or drift slowly lower around here through August. I am expecting things to pick up in September with the Caren Mine getting completed, the new drill season, and the shareholder’s informational meeting. In the meantime, it is silly (IMO) to watch the ticker every day and lament about it. There really is nothing that will move the share price, nor anything anyone can do about it, until that time.
But, how many times have you looked at a stock that stagnated for weeks, months and years and then it resurrects itself and becomes an active, strong buy? And you look back and say to yourself “Why didn’t I buy more back then?!?” Well, because you were pissed, miserable, fearful, broke or pick another applicable adjective. We’ve all been there. The thing with MDMN that I like right now, is that the road map to higher prices and success is there. There are no ambiguous never-ending next weeks. There are no more e-mail chains of the latest carrots to follow from Les with sketchy and contradictory answers to questions. There really is no more wondering what the heck is actually going on. Thanks to Auryn and their motivation in cleaning up the previous stagnant mess and them making a go of the mountain in earnest, the only uncertainty for me at this time is how much gold/copper/silver/moly is in the ADL? And fortunately we will start to find out in the upcoming months/weeks. For me, this is the time to buy…while everyone else feels hopeless and Auryn continues to quietly show progress.