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It’s all in the update - staff & logistic issues. FairPlay to Dan he is doing to proactively manage and putting in an airstrip, of course the cost would rise.
As for trucking of ore, he is spreading the profitability of the mine at a time of higher prices to smooth rather than just maximising profit in short term. Again great management.
I really don't believe the market is reacting that badly to this news. The seller who has been around for the last month is still around. There's not been a huge revolt to this news. The usual seller is just happy to accept a lower price/ profit. Most people sell on news because of the volume of interest in the share and this is happening here.
This changes instantly once HUM announce the future plans/ strategy of the company. An announcement on a divi changes this instantly! Combine this with being net cash positive and an average/good Q2 and this flies.
Rickylfc5 - You can only imagine the increased costs involved due to covid in West Africa. The costs for my event company in the UK has increased significantly (along with risk). You have to expect the same for HUM in this situation.
One aspect that I think is all important is cost of security during this period. I'd hope HUM has significantly increased the security at Yan especially when they've announced to the world that they're sitting on $11million of gold in the court yard. You've seen the looting in America. There's no reason why we could not be in the same situation. Security needs to be doubled/ tripled during this period.
That's only one aspect of the costs that I'd guess would go up. I'm just glad that we have been able to mine uninterrupted during this period. The majority of mines around the world have not had this luxury.
Now we have had 2 days of price action post RNS - its clear what the market thought of the structure of this deal.
Some great debate and opinion on both sides of argument. But what ever you view unfortunately for all SH the damage is done - perception of management yet again has been crystallised into the SP, the chart looks terrible. Will not be an easy road back and I cant see Dan changing his ways anytime soon - thats the real disappointment despite excellent fundamentals on Mali.
The SP nearly always drops on good news here. Been here long enough to know that. I've asked for no more good news in past posts because of it, so it must be good news
Monkey - The volume traded has hardly changed. If volume had tripled and we were selling at these prices then I'd be worried. Price of Gold's come off so how much of that drop is that? You're really trying to make some massive sell pitch here when the evidence doesn't back you up. Cora is 6% down right now. Did Dan cause that also?
I don't mind as I've just topped up again. To get back to where we were (30.5p) is 15% up from here. Easy money.
SHG and GGP also down, which are indicators I look at.
Increased costs due to COVID-19 in West Africa ? You have to having a laugh and suggest that you look at an ASX listed company that I am invested in operating in Cote D'Ivoire and with a prospect south of Dugbe not yet looked at. (ASX:TIE) 4 company owned rigs going hammer and tongs at Abujar , hitting record metres drilled last month at lowest costs and all under control re Covid 19.
Perhaps ARX will issue a few bogus invoices on HUM for security / medical services to fund the DFS!!!
The drop is because gold has fallen 1.5% (or 2% in £s) on back of more positive US job numbers. The whole gold sector is off c.5% - nothing to do with Dugbe.
Gold & gold stocks across the board being smashed right now. Ironically, HUM's standard up relatively well atm given bullishness in broader equity. Esp' after todays US job report
Can see a lot of people pulling out and edging into equities, creating further downside over the next couple of weeks. However, personally remain bullish for Gold for any view more than a few weeks out. Q2 GDP numbers are known to be bad. There'll likely be a rise pre-news, but it's the long term trend which matters most. QE & inflation are golds friend