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Great point JT and one I think should be highlighted for general chat.
Obviously marketing isn't HUMs strong point
@OthodeLagery, thanks for the response and good post.
With regards to your point on Pasofino, I acknowledge what you’re saying, although I personally don’t view it addresses my concerns. (1) Timeliness of communication, and (2) shareholder value. Ironically, you indirectly emphasise the cause for concern because the raise by Pasofino was pre-agreement, and therefore further shows how this vehicle was all planned. i.e. my point here is that Pasofino could of issued equity to HUM directly rather than ARX. The Board purposefully chose private gain. Of course I am delighted that HUM has no immediate expense at Dugbe, but I disapprove of the way it’s been communicated.
What I think we can gain from Pasofino is an indication of value attributable towards Dugbe. The final agreement signed on 9th July (which is when I personally think HUM shareholders should have been notified, not today) resulted in ~13million GBP increase in Pasofino market capitalisation (SP peak @ 0.40CAD – former SP @ 0.23 to calc’ %age rise * MC * currency conversion). We would of course like to see any rises there reflected in HUM SP here, less risk for dilution.
Thanks for pointing out the $2mill being post. I’d missed that.
The airstrip is interesting isn’t it? It would be good to learn more about it. i.e. specific purpose, capacity, costs, etc. Looking at AISC, I think Q2 AISC was impressive considering the previous notifications and lowered production. However, the fact that HUM expects AISC to increase during H2, when production rates resume normalised rates, that’s indicating that we are building something big which is being factored into production cost. Now, surely the worst of Covid inventory stocking and process adusting is finished. So, the airstrip?? If so, shouldn’t we know more about it?
Re: Gold inventories, unfortunately I would direct you back to do a comparison of Q1-Q2 inventories and you’ll note that inventories are significantly down by 7,000ozs, not up. Whilst I note we still have $8m in inventories, my question is about what happened to the other $11m.
Anyway, some great stuff in here. Yes. But my target for HUM is a pound, and I view RNS’s like this as preventing that hope from actualising. It is waaay too much info for a single RNS. Much is not timely. And we are clearly missing info on some pretty significant projects onsite.
Wouldn’t it of been much better to spread out these RNSs and then build the Q2 update around the sentence of “· Yanfolila predicted to generate in excess of US$60 million of EBITDA in H2 2020 (US$120m annualised) at current gold prices”?? That’s a brilliant read. Why not shout it out, rather than burry it in a 2,500 word RNS?
150 day working shift! and I thought was working hard from home. Also, I do hope they checked under the air strip before they built it? as they look like they're surrounded by quality seams of gold.
In summary, update seems not so much the nitrous injection into a 4 cylinder wanted by short-termers and day-traders but confirmation they're on track to build a glorious, long-lasting V8. Strong Hold / Buying on Dips
40/41 now, so moving back up as people realise that the RNS was a solid one (particularly the excellent drill results which will significantly extend the life of mine. Hopefully a blue finish to cheer up shandy!!
ODL - well said!
@JTS13: I suggest you re-read the RNS as you have missed a few crucial points: 1) it was previously signalled that ARX was going to back into a Canadian listed vehicle. The transaction has not yet occurred but the agreement is in place. That would not need to be announced by HUM, though if you followed these boards, you would know that it has been publicly announced. It’s very positive for HUM as VEIN has recently done a cash placing, so secured the first tranche of cash for kicking off exploration and the DFS work. 2) as is clearly set out in the announcement, the receipt of the $2m non-refundable deposit on Dugbe is a “post period highlight“ so was received after 30 June and is not in the cash figure. As it’s an earn-in agreement, to earn their 49%, ARX/VEIN will need to fund everything in the agreement (substantial $30-40m+ requirement), if they don’t they won’t get the full stake, 3) significant gold inventory needs to be added to your cash figure which is worth a further $8m. 4) cash expenditure on the drill programme (12km of drilling is not cheap) and airstrip installation needs to be factored in which will have used cash.
JTS13 - the rest of knew about the pasafino deal and discussed it here, not sure how you missed that information.
isn't debt down 14m? 40-26?
15m @ 10g/t equals roughly 110,000 oz of inferred oz over a 100m long by 100m area. NIce.
I'm unimpressed by this RNS. People were questioning the ARX deal at the time but I wanted to give mgt benefit of the doubt. Now we learn that ARX entered into a sale transaction 5 days after it was formed and we only learn about it today, 2 months after the fact! That is hardly timely communications. Clearly conversations had been ongoing prior to ARX formation and it was all a way for maximising returns for the few at expense of the broader shareholder community. And Parofino Gold! Why? It's a nobody company
Haven't gone through and done the math yet, but at face value, the numbers don't seem to add up. Cash down by 2 mill, after receipt of 2 mill from ARX. Debt down by 8 mill. So essentially 4mill out of earnings went to play down debt. Given that gold inventory is down by 7,000 ounces (~12mill) what happened to the rest of it? Did we just make a loss this quarter?
As I said, need to sit down and read it through in more detail, but at face value, I'm really disappointed. Hope a morning coffee will wake me up and I'll find that I've been reading this all wrong
Drill highlights: 15m @ 10g/t, 6m @ 16g/t, 4m @ 17g/t and 5m @10.5g/t. Big intercepts at seriously high grade - excellent news.
Good to see Dugbe and Kouroussa progressing nicely. Things are coming together well.
Hopefully next quarter the average sale price per oz will be circa $300 higher!!
Yes excellent drill results, slightly disappointed we are not net cash positive yet, but as they say on target for end of year beginning of next. Cash and gold of $14,000000. Good to see extra precautions taken for spares.
Yeah definitely based on those results. Production down a couple of thousand year on year which is ok given covid . AISC down slightly which is another positive. I wish Dan didn't throw in such great drill results in the quarterly report. It would be better to report some separately IMO.
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As others have said, production a bit light due to Covid rejigging but drill results look very promising. I would much rather the good news be that way round.
Drill results look awesome. Slightly down on production but not bad considering this quarter was during a pandemic. Surely the LOM should increase. Komona East looks great but also some promising shallow drills.
Those are superb drill results - pretty much every hole hitting gold and some excellent grades. Even the two holes drilled for technical reasons hit gold! Production down a bit due to covid but yearly guidance maintained. The airstrip will soon be up and running which is good news too
Now out.