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As predicted gold hit $1450 last night.
Hummingbird is not chasing rainbows with gold in the ground.
Mine built with second mill installed, increasing production by 24% ahead of schedule.
When Q2 production is released, this SP should rocket imho.
Decent bounce off the 1400$ Mark this afternoon
very good free cash flow here so long as sustained production is confirmed.
That is not strictly fair to management.
They were presenting at one of those events (pre the "bad weather" episode in September 2018) and the strategy was quite clear. I was not a holder at the time, but did a quick post at the time on the strategy:
"There is a clear strategy, but it is not what many on here want to hear.
It was very briefly discussed over drinks by Bert, post the presentation (he did a good job on that).
Short term: address life of mine, to maximize the capital outlay,
Then the game is to buy distressed near-term projects with good returns: as they did with Yanfolila, rather than pie in the sky exploration.
Broken hill fits that category. As for saying they don't know anything about it, all they need to do (as for Yanfolila) is hire a competent outfit to deliver the build. Unless management are mining engineers, then turnkey is the only way to go.
It was not possible to develop a sensible conversation, as Bert was clearly sensitive to the negativity and regrettably, the group was dominated by individuals who wanted to speak rather than listen and consider"
I am not currently a holder, but after meeting management, Hum has moved up the watch list."
It was , IMO, a good strategy, but has been put on hold for obvious reasons ie they have concentrated time and cash on sorting Yanfolila. and maximizing short term returns.
looks like they do have buy-back rights for San as part of the amalgamation agreement with Kola.
Agree a JV the way best four for Dugbe
I don't know is the short answer. Obviously we own a chunk of Cora, but what rights that gives I don't know.
I'm presuming we would just buy the project off Cora once proved up. Though frankly its very difficult to know what HUM may or may not be considering doing as a strategy, as they're about as chatty as the average rock with PI's.
Do Hum have back in rights on Sanankoro?
No its to far to haul is my understanding. Cora have another project next door to Yan, Tekeledougou that they could haul from but not Sanankoro. That's my understand anyway.
If it panned out I guess they could do both but I'm thinking of them being a 2 mine operation rather than extending the one's mine life from another source.
Obviously Yan's mine life extension we're waiting on now, from the existing resources within our existing licence.
Would they be building a new mine for Sanankoro? Surely they would increase capacity at the current mine and just transport it in?
To be honest I don't see the next steps for Hum being Dugbe. I think they should be seriously looking at taking on Sanankoro off Cora. Its relatively close by, they know the jurisdiction and the government agencies involved, they could use staff from Yan to help set it up and the same companies that built Yan to build that mine.
Why look to Dugbe which is a far more complex target when we aren't frankly competent enough. By all mean do a JV and let a bigger partner lead on Dugbe, but for Hum I don't think the BOD have the skill for that yet. Sanankoro would be a better natural progression once the resource is proved up for HUM to run. Just IMO obviously
Hum's Dugbe project has a npv10 of $337m at 1500 gold price.
Expect gold to retest 1440 this week at 3rd time of asking.
If it breaks through this test then 1500 comes into play this summer.
mmm hourly chart starting to look like consolidation might be coming to an end in coming days.
And i cant see any reason for a drop back to test resistance or below.
hoping for a 1450 test by end of July??? I think its possible (obvs optimistic). If its broken in such a short term then who knows where gold can end up by Autumn. A lot of global gold bugs throwing very big numbers around, i don't even want to suggest some of those crazy figures.
But i am hopeful still and i think we will be in a good place a business also by Christmas.
Hope everyone in the UK had a nice weeekend out in the garden/sun etc.
Massive buy but just printed 292k at 19.50p, c.£60,000
Someone clearly sees the value proposition
Looking like a sustained rise underway into Q2 results.
With gold settled over 1400$\oz , free cash flow should be c.$50m annualised
Hummingbird equity represents very good value under 20p
Old fashioned buy and hold into the gold price bull phase now, for me.
With trade wars and escalating problems in the Gulf, unlikely to see gold going down from current
$1400+ level. Probably going higher.
Q2 probably next week, ironically could be a safe haven after our roller coaster ride.
Good luck next week Hummingbirders.
You can see the chunkier trades starting to come back. 2mw should be interesting going into next week.
Good news that they did not need to use the loan facility: cash flow must be going in the right direction.
Stock on loan at the end of May was 2.59% and nothing at the end of June. That reduction tells its own story: no expectation any more of cheap stock from a placement, as confidence returns along with positive cash flow.
Good that May confirmed as within guidance. In the interview, Bert Munro seemed pleased that HUM had finally turned the corner after 3 bad Qs and it is to management's credit that they navigated through the difficult period without dilution.
Thanks Visitor, good to know the loan hasn't been touched and I agree it probably wont be. Especially as POG is over $1400 on a regular basis and they have done their calculations on $1250 an ounce.
My opinion on the AGM ;ack of attendance is LTH new their would be little news as there had been no RNS s and so nothing new would be discussed at the AGM. Also a lot of PIs have sold up and the shares are now in the hands of the IIs.
Fingers crossed for promising July of positive reporting. I actually hope they stagger good news and if they need more time on the LoM update, so be it and issue that later in July.
I was one of only a handful of investors who went to the AGM. After the usual AGM resolutions, many questions were asked. The board and HUM team as a whole were very open and willing to answer all questions. I was incredibly surprised that with all the activity on these types of boards and the accessibility of the London location, there were no investors in attendance.
In terms of cashflow, they confirmed that the 2nd $9.6M loan which is a back-up for working capital is completely untouched and still undrawn. So that bodes incredibly well, considering there was so much doom mongering about "equity" raisings a month or so back. If they hit guidance, I doubt they will ever need this loan and it will simply expire. This loan facility is completely separate from the $9.6M loan for ball mill which has of course been fully utilised. Month of May was confirmed to be within guidance (my own shortcoming I did not ask about April) and it was of course too early to ask about June.
Gold flying again. Q2 results with LOM extension coming on Tuesday I reckon!
Back above $1415 tonight, rising, how long before we see new highs, my guess $1450 as we get Q2
production figures. SP up another 4% today with some good buys.
Back to 25+SP could come with next RNS imho.
Yep Ballio, that's how I see it, and as HUM have been using $1250 for their calculations we are certainly in bonus land. Just need a good Q2 report now and LOM extension to see us back into the 30s.
I think since the initial breakout what we have seen are a few efforts to put gold back in its box which haven't had the desired effect and some pretty good looking consolidation to date. I am still optimistic for a short and medium gold price rise into 2019 and beyond. Not sure when the next leg up will be but I think new resistance is forming which should help put a few million dollars on our bottom line.
ATB on a boring day.