Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Noticed Rio Tinto was chopped circa 12-15% also. Where’s the connection.
Love this guy FWIW
https://youtu.be/w3WCI9K3olI
And a delayed 500k trade after hours - chunky.
Blimey - full ask @ 18.50p for 36.7k shares after 100k of "sells" before it - anyone would think they weren't really sells!
"Following the emergence of further operational challenges at the firm's Yanfolila project during the third quarter, the analysts moved to adjust their estimates on the firm, now expecting it to produce around 97,000 ounces of gold this year, down from 103k,000, slightly below the bottom end of the 100,000-110,000 ounce guidance range."
It'll be nice to get a beat on an anaylist for once, would be rocket fuel for this SP
One minute, your selling at 29p and can't wait, the next your topping up at 15p then you're sliding off the plate.
:)
GL
Bonker, you are joking, surely?
They've said that even with the best quarter, they still won't make the lower end of guidance.
And for you to say Coris have GIVEN the company anything is misleading to say the least. It's a loan at 8% remember.
The market hates this company for now and I'm still expecting my 15p top up.
UTV still stands though, lol
Analysts at Canaccord Genuity cut their target price on mining firm Hummingbird Resources from 35.0p to 25.0p on Tuesday, stating now was the time for the firm to regain the market's confidence.
I'm in absolute hysterics :)
There's your buyer people.
The Enterprise Value represents a more complete evaluation of a company’s size than the Market Cap as it adds the net debt to the value of the equity. It is defined as Market Cap plus Net Debt. Net Debt is calculated as Total Debt, Minority Interest and Preferred Stock minus Cash and Short Term Investments.
You guys should, hopefully, be better than me at things like EV etc.
What I do know how to do is value any project based on NPV and PFS or DFS status.
Pre-production Kouroussa is worth £50m and Dugbe is worth £50m but that will double to £100m on the DFS for a grand total of £150m or, shock/horror, 38p per share but that's only if Gold stays at $1,775 - those valuations will increase/decrease exponentially as Gold moves up/down from the current price.
FCF etc is all factored into the NPV & IRR numbers, that's how you get insight into the true value and how quickly the initial up-front costs are returned - two years at an IRR of 70% (outstanding!) on Kouroussa IIRC because the first three years pull 130k oz pa rather than the LoM average of 100k oz pa.
That's why I say that what goes on at Yanfolila is kinda neither here nor there other than being useful for moving the SP around on good/bad/good news etc but it would be nice to get a bumper load of extra cash banked in January's update, not just on resource milled/sold but on a higher Gold price, especially as the cash costs of the 2021 exploration campaign are nearing an end now.
@Bonker I always though Enterprise value was Market Cap + Debt - Cash. So ...
> Market Cap = £72m
> Debt = $5.9m or £4.25m
> Debt (loan) = $100m or £72m ... if/when it gets drawdown to build Kouroussa
> Cash = $4.9m (gold to hand) or £3.55m
Enterprise value now = £72.7m
Enterprise value max on loan drawdown = £144.7m
I agree that this should be putting a very firm floor under HUMs SP given the future production coming onstream over the next 2-3 years namely Kouroussa +100k within 2 years and Dugbe +100k probably within 3 years albeit subject to a mine being financed and built.
I suspect HUM will want Kouroussa mine to be producing at initial 120koz before it takes on any more debt to fund Dugbe, but who knows POG might be 3k+ by then in which case happy days!
Like you I am treating HUM as a growth play with current production funding both exploration and mine build seemingly for free at this SP. Once Yan LOM is pushed out significantly I am expecting more investors to catch on.
ATB APR