Medinah Minerals, Inc. (OTCMKTS:MDMN) Still Running
Friday was another big green day for Medinah Minerals, Inc. (OTCMKTS:MDMN). The stock sold like hot cakes over the session, with the most share volume in about a year, and MDMN closed 15% up. The last three sessions saw the company’s stock almost double in price, nearly reaching its April values.
A long trundling descent sent MDMN from $0.07 to below $0.03 per share over the last three months, accompanied by a lack of any press releases. The PR drought came to an end early July when MDMN announced the appointment of a new CEO. This stopped the sliding price and led to a minor recovery.
This was followed by another bit of PR that seems to have hit harder and sent the price up. MDMN announced that a company, which is jointly working the LDM Chile property with MDMN, is moving from the development into the operational stage of the project. This seems to have been sufficient incentive for traders, as volume picked up immediately and the price surged. Overenthusiastic traders may have missed some other key words in the release, such as ‘preliminary’, ‘unproven’ and ‘assumptions’.
The case of MDMN shares some similarities with other pink sheet mining companies – there have been optimistic press releases, even announcements of shipments from the mine being made as early as June, yet there are still no reports that can show an increase in revenues or any visual hard proof of the shipments – something that traders on discussion boards think may be a nice confidence boost considering the circumstances.
The company’s latest report is a quarterly dated March 2013 and contains the following:
- $191 thousand in cash
- $216 thousand in liabilities
- $262 thousand in sales
- $91 thousand in net income from operations
Investors expecting millions to start pouring into MDMN‘s coffers may want to also note the further explanation of the latest PR, worded very much like a disclaimer. According to that MDMN is not a direct owner of LDM who work the property but instead has a profit sharing agreement with them. The ownership involvement of MDMN is through Medinah Mining Chile, an entity where MDMN has controlling interest, which in turn owns 20% of LDM Chile. The release further states that the company can in no way guarantee a profitable outcome of LDM’s operations.
Other penny stocks that were in the spotlight over Friday’s session include Xumanii, Inc. (OTCMKTS:XUII) – the immortal Awesome Penny Stocks pump that managed to run to new highs and closed 20% up at $0.53 per share. International Stem Cell Corp. (OTCMKTS:ISCO) opened with a huge gap down after announcing a public offering of 20 million units with warrants attached to them with a much lower exercise price than the previous close. By the end of the session the stock closed at the warrants’ exercise price, or 40% down.
