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Well gold $2420 now, going wild. What is Dugbe worth alone at this gold price!?
I have a good look at this one in the light of the recent falls (and rebound). Too may unknowns and too little meaningful communication from management. So for now, in the words of the Den, I'm out. Good luck.
What a load of garbage! Yan is covering the hedged amount alone. What price are you looking to buy in for? Is this still not cheap enough?
What would do if the share price hits 180 pence( its 2012 top) and then doubled from there?
There seem to be various estimates of the 2Q impacts. On another site, a writer has calculated $10m loss for the quarter. The problem is that we are not producing the gold. if you can deliver the gold, it is an opportunity cost loss but if you can't deliver the gold, the loss will have to be cash settled, money HUM does not have. I would be surprised if the counterparty doesn't have the ability to accelerate the cash drain by margin calls. All this means that Coris is once again going to have to cover the deficit. I really can't understand why Coris persists with the management and the current Board. There is a good company here being squandered by incompetent leadership.
Oh and a cautionary tale. The younger members may not remember the last gold spike in the early 2000's where Ashanti went bust and Anglogold and Barrick got close due to their hedging losses.
What is certain is that over 2150, they are losing out. Additionally, if they don't do the 60,000 ounces over whatever the milestones are, and gold is above 2150, then it is going to cost them money.
Bushy, not disrespect but you haven't got a clue how the cost colar works. None of us do because it hasn't been disclosed. It could be as you say on a quarterly average as you say. It could be calculated on a daily basis. It could be at market price on each gold delivery, which would make more sense to me. It could be an average over all 3 quarters.
Need to watch the 90 day average price, which for Q1 was only 2070, well within the collar and probably still too early to start thinking the current pog is the new normal.
On margin call - the hedge is over a 9 month period so at present the exposure is near nothing as for most of this period gold was under the $2150 - it is only for the last month and also as it spread over a number of months our exposure is limited at present and spread out over a longer period (if it is even on a margin call)
What worries me most about that 60koz hedge is whether it is subject to a margin call. The other side of the trade has an exposure of c$15m, cash that HUM doesn't have currently, and, because of the Corica situation, doesn't have the comfort of gold delivery as the near term exit.
Yes have to admit even I won't moan about the edge price,wise decision at the time, o for more of those,and yes if you where to choose between Hum and anyone else telling the truth about a dispute, you would believe anyone else. Which company as a record of c ck ups and misleading information and which one is company with a respectable record?
We should all know what that "hedge" is likely about by now mate ..............
A lot of that figure will be down to the month or so without fuel. Who is responsible for that? I would probably have offered to cover that, but take off the percentage they were below agreed mining volumes. Also, we don't have clarity on why mining volumes were missed. Dan was very cagey about this until he couldn't hide it any longer. He said training and fleet availability. Was there trouble with imports? Were HUM meant to do some of the training? We don't know, but Corica are a respected outfit. Hum are not in my opinion. Dan has a history of being economical with the truth at best and missing guidance by a country mile. How long did it take them to rectify the issues at Yanfolila? Anthony came in and they put in some nonsense slide about a multistaged approach to cost saving. Turns out the clapped out old diggers weren't working. Who knows that the truth of the matter is, but I bet HUM share more responsibility than they are letting on.
Because Dan Betts is infantile and would rather cut off his nose to spite his face
Playboy, would you seriously consider paying an outfit 27 million when they've massively under-performed? If so, I'm flabberghasted.
A very sensible hedge at the time Bonker. What would you be saying if gold had plunged to 1500, as unlikely as it was?
20-20 hindsight really is an incredible thing to have, isn't it?
There's plenty to moan about re HUM, but I don't think the hedge is one of them.
Why dont one of the big boys buy out this minnow
It just makes me think why didn't they pay Corica?! They should have just about had the funds to do it and according to them, would now be mining the high grade. They would have paid that figure back in 2 months and they are already a month in. What's the plan? We have no idea, so presumably they don't either. I moved my money from here into Thor and somehow this is doing better. I get the hope here as I held it too for a long time. But the fact is they completely mess up and don't deliver anything that is promised. I hope for your sakes I am wrong, but I think this dog is going under.
I feel another Friday evening Rns is coming. O dear.
As gold goes thorough the $2400 barrier - I again looked at the potential figures for HUM. If they achieve 150,000 ozs this year (start mining soon again!!) even at an AISC of $1700 this will still generate $90m for debt repayment (60000 at hedged price of $2150 and 90000 at $2400). Way over what they require for debt repayments and figures used are a higher AISC than forecast and with less gold produced than forecast). It just shows the potential if this starts mining at todays price and how bright the future could be if we can get the gold out the ground (the million dollar question)
Gold and silver is going ballistic. This isn’t retail buying. There isn’t enough gold and silver to satisfy the demand form hedgefunds, institutions and central banks. The only other thing they can buy is gold mining companies, the big miners are a forward indicator and rise first. Second-Money gets thrown at small miners and their share price goes 10 x plus.
Nice hedge lol
$2392 now!
Great day to drop news miners back on site, about time they did
Till rising, great run this week, looking for a Blue day today,
have a great weekend