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I bought more as well, but it's showing as a sell on the trades page here!
Hi Tones77777, firstly it’s good to see you back onboard here. I was not expressing my point of view on the life of mine, just highlighting what the company itself had to say on why the price is suppressed. For now, the company has expressed “confidence” that the LOM will increase. It should follow then that when confidence is converted to actual LOM extension then we should see significant share price uptick. Brokers used to talk of mine years LOM extension being worth 10p. Certainly, I’m banking on this and excited about the forthcoming drill results. What I don’t think is quite right is dividing resource by plant capacity to estimate LOM. However I’m no expert and looking to learn so if anyone has a perspective on this would be great to hear any rules of thumb used by others
That's a stonking price tin cups, if it gets anywhere near 'Simply Wall Streets' fair value of £3.64 then that'll be some gain
Fair play, cheers Cheerful
Don’t disagree with the catalysts Bushy, but here is a statement on the impact of short mine life from Black Bess’ mouth as per CTW2014:
“To this extent, the company has also doubled its exploration budget at Yanfolila to $10-million in order to build on the 2020 drilling success.
The intention of this programme is to discover more ounces to extend the mine life at Yanfolila, as Hummingbird considers Yanfolila’s short mine life a “major hindrance” on its valuation.”
https://m.miningweekly.com/article/hummingbird-keeps-yanfolila-safely-operating-but-2020-production-decreased-2021-05-27/rep_id:3861
It's only been a problem for the dick turpins here, which for all intents and purposes outside of SC selling is the market.
Increased media flows and quarterly updates on the increasing cash pile will drive this.
Trouble is, the market seems to view the limited life of mine plan as a negative. Fortunately, I think DB and co have cottoned on to this and will work towards a longer plan to get shot of that negative.
There may be technical and administrative value in the LOM for credit ratings and so on, but for me, as a rolling calculation, it doesnt offer huge insight. The new drilling in untouched sections is way more interesting. None of our assets look anywhere close to being tapped out. It's pretty much at the other end of the spectrum. They're fresh and still being surface cleared, for the most part. In a few decades time, when we're going deeper for ever diminishing returns, then I'll be a bit for circumspect.
I'm not entirely convinced that the length of a mine plan offers much in all honesty. Look at Centamin Egypt, their Rolling Mine Plan for Sukari is only for 3 years and that a tier one gold mine.
Maybe I’m wrong but I don’t think we’ve seen an update to the rolling 5-year mine plan since Feb 2020. This ran to 2024 with the note that this could be considered a base case given significant underground and open pit mine inventories not included in the plan. Wouldn’t it be great if the rolling 5 year plan could be upgraded to a rolling 10 year plan this year on the back of 2020 / 2021 drilling
Context Dusty is massively important. I was merely attempting to make a very valid point, I really didn't mean to offend you with a logical explanation of the subtle yet very important context of the original question.
This board is littered with usual suspects attempting to pass of the mining plan as A FULL Life of Mine, when we all know too well that it's extremely unlikely Yanfolila will stop processing at the end of 2024.
So the question is when will Yanfolila stop producing...Who know as we don't have a mine plan for that far in advance, so isn't the only realistic thing to do is to divide the indicated by production.
I'm not going to waste time argueing with you BT, I was seeking to respond to someones question based on what's in the plan as LOM is normally defined. If you have an answer you have every right to give it, you are also welcome to disagree. Have a nice day!
Life of mine and mining plan are not the same thing. if you asked what is the life of the mining plan then yes the answer would be 5 years. Given that it's updated every year for the following 5 years then it will always be 4-5 years no?
Look at it another, when Yanfolila went into production in 2017 with a 5 year mining plan did it mean that the mine closes next year?
Life of mine (LOM) Number of years that an operation is scheduled to mine and treat ore, and is based on the current mine plan.
So I don't think 12 yrs is the answer to the question asked BT, but yes hopefully this years activities will improve what's in the plan.
Chicago PMI 73.4, Exp. 64.1
Hi tincups Class act ... love playing golf of mi roof..not a bad buy but others to think about ...scary day today
That's 12.29 years presuming that they also stop drilling yanfolila as of today
Yanfolila is a multi deposit prospect with seven different established deposits totaling 1.475 million indicated ounces. At 120k ounces a year, it will currently take HUM 12.29 years to get through it.
https://www.hummingbirdresources.co.uk/operations-projects/mali/
Definition...
Indicated Mineral Resource
The term "Indicated Mineral Resource" refers to that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.
Inferred Mineral Resource
The term "Inferred Mineral Resource" refers to that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
Have you a link to information on this BT?
Sorry that should say "5 year PRODUCTION plan"
That's a terrible guess... How on earth does a mine with a 5 year plan, only have 4 years life?
Hi Tincups. A good question. It used to be included in information on the website I am sure, but appears not available now. I think it's currently not great at Yanfolila, I would guess at 4/5 years. But could potentially be improved a fair bit with this year's exploration campaign. The is a resources release dated 30th march 21, you might be able to get an idea from. The 2020 exploration work was successful at adding a fair bit more resource than was mined in the year and the 2021 campaign has twice the budget.
Kourroussa I think is an initial 5 years but with good potential to extend.
Probably there is someone who can provide a more concrete answer.
On a seperate not I assume they are moving to Gonka this half. Perhaps this if where they hope to get some lower cost ounces and potentially higher grade ore.
"Gonka is 5 km south of the processing plant and lies along the highly prospective Sankarani shear zone. A high grade deposit hosting 292kozs in JORC compliant resources. Open pit mining due to commence in late 2021 with further drilling and technical studies to unlock the underground potential."
Love the advertised spread - it's 19.45p to sell if anyone is wondering :)
I think there's a fair few waiting for the funding RNS. When it does come, if it doesn't provide the much needed sp impetus then I feel we could be treading water until korroussa first pour.
Cmon Dan and co, let's finalise the funding
Some excellent posts recently and just shows how a BB should operate. Offering reasoned opinion as to the pros and cons. I personally like the fundamentals and future developments. The m/c is a big draw. The debt free situation is a big plus as is the increasing cash pile. i would just like confirmation via RNS re the funding of Kouroussa before going really big into the stock.