Replies to post #61135 on Medinah Minerals (MDMN)

[Hurricane_Rick]

Okay, there's lots of talks of carrots, but this one surely qualifies as one, and a quite irresponsible one at that. It's an idea floated by the company that they know they can't make good on.

I don't think many shareholders are seriously banking on a dividend with this investment just yet as most are simply awaiting execution on the joint venture. However, to assume that a dividend is completely out of the realm of possibility is too far a stretch to the other side of the equation IMO, as that assumption relies on the notion that the company will never have a financial windfall worthy of dividending. Obviously people who've already pigeon-holed MDMN as a scam won't discuss that possibility any further; however, shareholders that have performed adequate due diligence and are confident of the eventual monetization of ADL and LDM see things a bit differently...I doubt they'd be invested if they didn't.

I look at the production possibilities at LDM as potentially dividend-worthy if the revenues justify it. In the July 17, 2013 Shareholder Update, MMC provided rough conservative guidance on revenue projections for LDM at $6.9 million per year solely on the copper estimates. The gold estimates came to $28 million per year. With MDMN now owning a 40% interest in the project, that type of revenue would certainly be significant enough to warrant a dividend consideration. However, realistically shareholders can't make that leap just yet because it is far too early in the build-out of that operation to see if a dividend is even feasible and the estimates haven't been proven in a reliable method or geological report. Regardless, I'm not throwing out the possibility as I'm fairly confident that LDM holds a significant value which will eventually be proven.

Taking LDM a step further, if the current shaft hits the glory hole and returns significant gold amounts, there is also the possibility of MDMN selling off some of their ~40% free carried interest for $n million which could also be a windfall worthy of dividending.

Going even a step further from there, the company could sell off the 9 other surrounding claims at LDM if the current gold and copper discoveries on the Los Amigos claim extend beyond its boundaries into the surrounding claims as currently suspected. That would also be a potential windfall worthy of dividending.

And finally, if there is an industry standard joint venture on the ADL, there will no doubt be progressive milestone payments required as the property gets proven up. The initial tranches may not be significant enough to consider dividending, but if drilling shows favorable results, the JV partner will likely be paying increasingly higher milestone milestone payments to secure a greater percentage of the property. Those payments could certainly be divdidended.

I think I've couched my expectations above into plausible, though not certain (or immediate) "what if" scenarios which I don't believe you are considering or that you seem to have already written off as impossibilities. Obviously the BOD knows a heckuva lot more than you or I do regarding what is on the table with regards to dividend possibilities. The fact that they mentioned dividends as a "future consideration when prudent" and that they are merely discussing it, is footnote-worthy for shareholders, but I don't consider a "dangling carrot". If management is aware of the possibility of a potential cash windfall, don't you think it is prudent that they at least discuss ahead of time what options may be available to them in the future so that they are adequately prepared for it?