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Nice chart Rick. Time to break out the 306 and do some bear hunting.
ask your broker for physical certs.
profitably...
I guess some haven't had time to read the update yet. Can't wait to get home from work today and read the negative sentiment knowing full well that we are on our way to bigger and better things with Medinah. Finally!!!
the two have nothing to do with each other. Bogdan stole share of MDMN NOT CDCH.
Not everyone has been around as long as you Janice although I didn't know you were invested 24 years ago. As a matter of fact I don't know anyone that was invested 24 years ago. As a refresher course what was the size of the property back then?
I've only been around since 2006 and the wait has been tough but not totally unexpected considering there is really just one guy running the show. This isn't a major with hundreds of employees and tons of cash to burn. Buying all of these properties takes time.
We are now at the stage where we are shipping ore and will soon be collecting checks. Some will continue with their pump and dump mantra while others will watch as their accounts grow. Which side of history will you be on?
Hey Krak, care to take a stab at what this means?
LDM hosts a series of "late stage quartz epidote gold bearing veins"
I would love to hear your understanding of the above statement.
Thanks in advance buddy
Bang on Benny.
Patience is key in the mining industry. I have always found it funny that the skeptics assumed that you just jam a shovel in the ground, load up a F-150 and deliver it to a mill and receive your cash. This isn't a Popsicle stand being run at the end of your street by a couple of 3rd graders. These things take time to set up properly so no one gets hurt and you don't waste time/money digging in the wrong place.
I can't wait for the skeptics to refute the next financial report. The numbers don't lie...
just remember this is the longest running pump and dump in the history of pump and dumps though...
To funny
Would you care to share with us exactly how you got to know Decosta personally?
And what does this post have to do with Medinah Minerals, mining in general, or the merits of the report that was written for the benefit of the shareholders?
Funding from what? Where do you expect funding to come from since there is no deal right now?
Thanks once again for the honest assessment Rick. Very refreshing to read the facts and not more conjecture. Keep up the good work.
I wonder why so many are so happy that shareholders have to suffer through another failed deal?
The great majority of us REAL shareholders are temporarily hurt but the worm will turn.
I for one have never been a happier MDMN shareholder. Dumping Ulander and his band of merry fuc*-ups was the best thing for this company. Time to move on to an industry standard deal with a recognized miner.
All of you that could see in to the crystal ball and called the demise of this deal many months ago, congrats. You were right and thank god it got vacated because Ulander and his pie in the sky mining empire was the worst thing to come through the Medinah door in the last 15 years.
However, if all individual members of the newco have to sign, it does confirm there are no major or midsize mining companies in the consortium. They wouldn't do business under these conditions.
This has to be one of the most ridiculous statements I have ever read. Are you trying to say that the Barricks or the Tecks of the mining world would never do business in Chile because it is Chilean law for fingerprints to be placed on docs? Last time I check there were more than one MAJOR doing work in Chile these days.
As for the link to Chilean law, I'm sure you are smart enough to dig that info up for yourself if you are that concerned.
If you think those words will live in infamy you haven't been around here long enough. Welcome though
And there are multiple buyers ala the consortium so...
Fact.
In short. The way the process works in Chile requires a finger print on the doc's from all involved.
Wrong.
Thanks Steve. I have known the Decosta family for over 20 years and Jim has been my dentist for over 10 years. His son is one of my best longtime friends. He is the reason I am here and his knowledge of mining gave me the comfort to play the long game. He does what he does for the benefit of those of us that believe in the mountain and want to educate ourselves. I for one am thankful that I know him personally so I don't have to question his motives.
Here is the entire post for those interested. It might be a little over the heads of some but well worth the read. As for who he is...he is just another shareholder of MDMN like I am. Nothing more and nothing less. He has his opinions just like the rest of us.
I've never sensed as much human pain in this investment as I now sense. From a mental health point of view, I think perhaps we shareholders should entertain the concept that from the point of view of the "will Uhlander fund or not?" situation perhaps we've successfully arrived at the "who really cares?" stage of development. I think that the recent developments at the LDM have earned us this peace of mind for anybody willing to tap into it. Don't get me wrong, if a big check lands tomorrow that's wonderful. But what are the possible ramifications if he can't or doesn't step up to the plate in a timely manner? The pertinent questions might be what are the Alluvia shares worth? Is the AuVert technology for real? Are there ADL back up offers waiting in the bull pen? Are there any "drop dead" dates in the near term at which he can be put officially in default? Should we just concentrate on increasing the value of the LDM (and therefore the ADL due to proximity) and try to execute a superior deal or outright sale on the ADL later on?
In trying to determine the relative importance of the ADL and the LDM to Medinah's success AT THIS PARTICULAR STAGE OF DEVELOPMENT you might think of it in terms of how success is defined to a company like Medinah in the junior exploration sector. I would proffer that success is achieved with gaining access to significant positive cash flow. This is an extreme rarity in this sector. This "success" brings with it negotiating leverage with any party since the option of going it along suddenly appears. Significant positive cash flow should also address any previous credibility issues as it is pretty difficult to merely stumble upon it and Medinah is the most obvious "credibility play" imaginable.
The anticipated length of time that this LDM cash flow might occur is also critical (perhaps 15 or so years for the LDM skarn?). So too is the ability to ramp up these levels of cash flow i.e. go after others of these "Spanish tunnels" or move into open pit mode. At this stage of development, access to cash flow is often predicated on the presence or absence of high grade near surface early production opportunities like those fortunately available at the LDM.
Receiving a check from the sale of Alluvia shares or from receiving 51% of the first $18 million tranche ($9.2 million) would obviously be wonderful. But in order to gain insight into the relative importance of the 2 properties again at this particular stage of development of Medinah we need to gain an insight into what kind of cash flow might be coming out of the LDM both now in the underground pre-open pit phase and later in the open pit phase. These numbers will allow us to take pen to paper and at least crudely estimate the net present value (NPV) of the LDM via a discounted cash flow (DCF) analysis. This will represent a due diligence breakthrough because it would also provide a benchmark valuation for the ADL after you take into account the relative sizes.
The last update suggested that we're now at the point where we're meeting with "noted experts" and getting ready to hand the keys to the LDM over to the big boys from an operational point of view. It's important to recognize that the LDM development has forwarded us along the learning curve for the ADL in regards to the metalurgy of the ore and the reliability of the IP/IR and satellite findings, etc. In essence, the ADL geo-modeling is being advanced through the development efforts at the LDM. The LDM development efforts provides a key to interpreting the historical data acquired in regards to both the LDM and the ADL. We now know what a green squiggly line on the IP/IR studies represents in reality.
Open pit production provides access to economies of scale and the cost per ounce to produce gold and copper drops immensely from underground methods. Thus the grades needed to be classified as an "economic" deposit drop also. Conversely, the profits can go up considerably when you're mining a high grade near surface deposit with bulk methods.
Once an NPV is estimated at the LDM then one needs to consider whether the grades at the ADL might be expected to be slightly higher or slightly lower than those at the LDM. The relative sizes of the 2 properties then would need to be evaluated (perhaps the ADL is 30 to 50 times larger than the LDM). The mining concessions amalgamated together at the ADL now cover about 15,000 hectares or 58 square miles. Keeping these relative sizes in mind and the homogenous nature of porphyries you can see why every assay coming out of the LDM is incredibly important. Recall from inclusion body analyses that the ADL and the LDM share the same underlying intrusive as their parent. They're both part of what the satellite imagery analyst described as a "7 Km by 800 meter wide swath of about a dozen intrusives....definitely a world class deposit". This still holds no matter what Uhlander had for breakfast.
At the ADL positive cash flow for the first couple of years will come sporadically in the form of annual payments and perhaps early production opportunities unless and until such time that a major takes a swipe at the whole enchilada. The drilling process at the ADL, no matter who ends up doing it, should provide a constant flow of information. This isn't "cash flow" but for some investors it does put the ADL and therefore Medinah "into play" in the mining sector.
What gaining access to significant positive cash flow does is it takes pressure off of the share price currently dictating shareholder emotions. Unfortunately, share prices in our markets are easy to manipulate downwards. With cash flow, management gains the option to reward its shareholders with oftentimes generous qualified cash dividends. The more manipulated downwards the share price becomes the more valuable the dividending out of a given amount of cash becomes on the all important "percentage of share price" basis. The preferential tax treatment of dividends is also a bonus. Whether a shareholder gets his reward from share price appreciation (capital gains) or via dividend distributions doesn't matter to most. It's the gaining of access to significant positive cash flow that needs to be the focus because in these markets it becomes the prime determinant of shareholder "success".
If we can get ourselves to a cash flow focus and a patient wait and see approach to the ADL funding backed up by a "who really cares?" mindset for mental health reasons then perhaps we can start concentrating on silly little concepts like grade, tonnage, metallurgy, infrastructure, NPV, access to power and water, 4,000 meters of existing tunnels, 4 access roads, low elevation, etc.
We have traded just over 2 million shares today or about 1/6th of my total position. I am no where near the largest shareholder and personally know 5 other people with over 2 million shares. This is hardly a huge move.
Good, so we won't have any issues with the honesty of the next Amarant news release correct? Will that apply if it says they paid the first installment of $18 million towards the full payoff of $180 million required to purchase 85% of the Alto? I don't want to be confused or anything.
I think too many people have been watching Gold Rush. The type of mine at the LDM is not the same as the type on the show. You don't just show up and start pushing dirt around then run it through a wash plant. This is an open pit mine scenario which takes detailed analysis of the ground before you mine ore. It's called efficiency and it's the way the good miners perform. I'll bet my house that the LDM has massive value before the end of the decade...heck I'll even say the end of the year.
I think it's pretty clear that when you sell an 85% interest in your property for no cash
Once again, we have not SOLD a damn thing until the entire $180 million is paid...as in...IN FULL!!! We have gone over this a million times but for some reason you continue to misunderstand the deal.
a bunch of illiquid shares
The shares are currently listed on Mangold and will shortly be listed on GXG.
a payout stretched over years in the future with unknown terms
Along with the 15% FCI. Find me another mining deal with that percentage please. And for the terms of the deal...Have you read the deal? Didn't think so.
not looking at a very valuable property.
If you have been watching the LDM you would understand that that little piece of the pie alone has enormous value. The Alto is WAY bigger.
Certainly less valuable than the shares you can sell on the "deal" news.
That is one mans opinion. I'll go with Paul Jones or ACA Howe...you know, accredited geologist types.
I am sitting on the side of the fence that understands the geology of the LDM and the audited feedback that has been provided to us by an accredited mining analysis company. I would refer you to the 2/5/2013 update on the Medinah website for further information. Please feel free to offer your opinion of the report.
At least you can admit that we haven't seen/read the contract...that's a start. All of this is pure speculation until we do.
To be clear, Amarant has 10 years to pay the $180 million or they get NOTHING...NADA...ZERO. At least that is what we think is in the contract but again no one has read it so we don't know what changes may have been made between Feb. 2012 and July 2012 when the contract was finalized.
As for the spending of the authorized shares I would suggest you look at the past. Medinah NEVER spent the shares willy nilly and clearly stated at the last SHM that the raise in authorized was for the purpose of acquiring new properties or positions in properties should they come our way. Think Ciclon 1 & 2 and the Jota.
What did I say... "Could have used the profits" I never said "We should use the profits that are currently rolling in" did I? Maybe I should have said "There will be profits from the LDM and those could have been used to drill the ADL"...better?
1) JJ needed a deal? Says you. We have the LDM and could have used the profits from that operation to fund drilling at ADL. I'll venture a guess that you were not at the SHM to actually meet the man. He doesn't give away anything.
2) Major terms of the deal? As you have never read the deal how can you claim these are the major terms? That is all your opinion and should be stated as such so as not to confuse the argument.
3) Amarant also claimed that they would start drilling in September 2012, then October, then November. Is that part of their website true or false? If it was/is false then what makes the rest of their claims valid. Pick and choose your truths at your own risk.
4) One entity can claim anything they want and it doesn't make it fact. On my website I claim that I am a 7' basketball star. It isn't true but I can make people that don't know the whole story believe it. Kind of like voicing your opinion when it is nothing but that.
Chew on that for a bit
Let me put this another way...
You are saying that JJ spent the last 15 years buying up the 1508 claims that encapsulate the ADL property, registered them with the Chilean Ministry of Mines and paid all taxes on said claims just to wake up one morning and give away 85% of the property for nothing at all?
That is your theory/opinion?
If the above scenario were true what do you think the actual investors of MDMN would be saying on the other boards? I'm pretty sure it would be all they were talking about, yet they are not. Very telling.
You are entitled to your OPINION but it is only that...an opinion and either way it won't sway my knowledge of current event nor that of the thousands of actual Medinah shareholders. Of course this will all be proven in short order.
So by your calculation, when the year end 2012 financials come out we will see a line item for the receipt of the full $180 million dollars correct? Otherwise you are trying to say that after all of these years JJ just up and decided to give away the property for nothing. For some reason I don't think that is what happened. You can't have it both ways. Either we received the entire $180 million this giving Amarant the full 85% of the Alto or they have not forked over the dough and still don't own a thing.
Also the Amarant site is factual but the Medinah site is full of lies? OK then.
Here is some more information on the purchase agreement for you to peruse.
Concurrent to the release of the 1,508 claims to Amarant Mining Ltd., or its subsidiary, would be receipt by Medinah Mining Chile of the initial funds pursuant to Purchase Contract. The conditioned release of the 1,508 claims will have a continuing caveat of required annualized payments of $18 million per year.
In Stockholm Sweden, Medinah Mining Chile representatives met with Amarant Mining Ltd. and their associated Boards of Directors encompassing the entire consortium of participants. Over several days of meetings, the parties completed all final terms, conditions, and mandates of the $180 million Purchase transaction. It should be noted that the outline of the short-term and long-term business plan(s), drilling sites, and exploration schedule intention(s) of Amarant Mining Ltd. and Alluvia Mining Ltd., relative to the Altos de Lipangue group of claims, were fully timeline documented.
So by your rational Medinah has now received the ENTIRE $180 million dollars necessary to fully purchase the ADL. Correct?
I can assure you we didn't just give them the property for nothing but of course if you are following the story you would know that Amarant gets nothing until full payment is remitted.
Having transferred the 85% ownership to Amarant already, there's absolutely no reason for MDMN to delay drilling or exploration - unless of course they have misstated the cost of it being all Amarant's.
The above paragraph is patently FALSE. Medinah has not sold the 1508 claims that make up the ADL deal and won't until the ENTIRE $180 million dollars has been paid in full. Amarant is paying for the drilling AND doing all of the work. That is why they have Dr. Smith, P. Geo. setting the work schedule and the $6.7 million dollars for the initial 18K meters of drilling has been set aside. Medinah IS NOT delaying anything.
Good rational Rick. I have a friend who bought Apple at $540 not all that long ago and he's down $100/share. For some reason I think he will be fine just like all MDMN shareholders. If every stock only went up then we wouldn't need a message board.
By my count we have had EXACTLY one (1) press release since 2008.
As for the bull market in the PM's...it ain't even close to being over baby. When the money printing machines run out of ink the price of said PM's will skyrocket, making our property all that more valuable.
Aren't you glad your invested in MDMN
I speak with them on a regular basis in an attempt to clear up the dividend issue. Very friendly people. I've found them to be forthright and informational. A number of other MDMN shareholders have also had conversations with them as well.
How do you explain the 400 or so shareholders arriving in LV last year with hard copy brokerage statements in hand that when counted clearly showed that these 400 or so shareholders held shares substantially over the current O/S?