Medinah Minerals (MDMN)

[jetpilot1101]

MDMN apologists are just so much fun. Here's a good one from Dr. Decosta...

Due to the history of Group A and B and the incessant allegations of management's ineptitude and self-dealing I think to most Medinah is still black or white. It's either a very meticulously designed fraud designed solely to enrich its perpetrators or it's a home run. I think the only way to slay that lack of credibility dragon is the announcement of a JV with a worthy suitor. Smart mining people are not going to get duped by a bunch of hucksters. Until then I think that even the very tiny following developed to date has many members that are still confused as to just which of the two extremes Medinah represents. I think the $50 million market cap attests to this uncertainty.

What I learned many years ago is that there are 2 types of investors in the junior mineral exploration sector. First there are the old farts that have witnessed several cycles from raising money for exploration to a discovery perhaps leading to a JV, a takeout or simply going into production. These guys know how incredibly slow progress in this sector can seem to be. They know that this industry will chew up and spit out the impatient. What they've learned is just how many hurdles need to be cleared in order to go from development stage A to development stage Z. Knowing this, they know how to GAUGE PROGRESS in going from A to Z. If the company is sitting at stage "W" they're happy campers and the minute by minute fluctuations in share prices are seen as representing potential buying opportunities. They can look over their shoulders and reminisce about being at stage "A" or "B". They constantly are receiving feedback as to how progress is going because they've been on a few of these journeys.

The other type of investor in the junior explorers doesn't know these steps and therefore can't GAUGE PROGRESS when it's being made. He's flying blind. His only feedback comes from the share price. This type of investor can be put on an emotional roller coaster ride that can be very unpleasant. Frustration can beget the assumption that since I'm losing money (on paper) somebody else must be making some money and its probably that darn management team which is responsible for my paper losses. This frustration might lead to the need to vent which in turn might lead to the need to assign blame, often to management. In their mind it's got to be management's fault because the progress is so darn slow. Management clearly must be inept because no industry should move this slowly.

But wait a minute wasn't it the legend Rob McEwen that noted as he went from the financial sector to the mining sector that he had no idea progress was so slow in this industry? Wasn't it Pierre Lassonde that stated that it now takes 17 years for the average junior explorer fortunate enough to be the 1-in-1,000 to make an economic discovery to go from the commencement of exploration to production? What often happens is that the old farts that have witnessed a few of these "cycles" will end up buying the shares of those that haven't witnessed any of these "cycles" from beginning to end and they'll probably be bought at ridiculously cheap prices when some just can no longer handle the emotional roller coaster. The 3 keys have always been to LEARN THE INDUSTRY INSIDE AND OUT, MANAGE YOUR EXPECTATIONS and be able to GAUGE PROGRESS when it occurs.

We've now got approximately 70 square miles of valuable mining concessions consolidated. A tiny portion that we know the most about has revealed very rich grades of copper, gold and silver underneath the leached oxide cap. The copper portion is now in production. We appear to be on the brink of a JV with a large mining firm. Boy, what a bunch of slackards this management team turned out to be!

Well considering they have been trying to land a JV for 24 years (7 past Mr. Lassonde's assertion) I'd say they're inept.

I wonder what Mr. Lassonde and Mr. McEwen would say about diluting shareholders to the tune of 800,000,000 shares?