The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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It would not surprise me if a bid came in for hum at around 11-13p.
Who knows, but we have assets that more than back it up.
With global currencies going back to the gold standard and dedollarisation of international trades? Rumours of Barrick buying mine rights to essentially slow the flow of gold stuff to the market and bolster long term price growth (conspiracy theories, I admit) also. These are not normal times my friend. Granted x7 is including my bias as an LTS.
60p? That's not going to happen, have you ever heard of a buyout at such a massive premium to the SP
Why bother with a buyout of Dugbe at a premium when the whole of Hum could be bought for less?
I would say a lot of investors would accept 60p p/s all in at this time.
As we wait for things to pan out (gold pun) oil is looking good.
I think the buyout would cover the
Debt and some left over
It’s a serous asset
Brokers are targeting 22p
Just go off what the post said, that's why I cut and pasted it 🤣🤣🤣
If you want to go off NPV then our share of that is roughly 8 times current HUM mcap
Whichever you want to cut it, it will still be 'Not Quite' 🤣👍
According to X there's a new research note out on HUm today by CanaccorGenuity. Don't have access personally but might also explain the buys today
I'm talking about the value of the asset from last weeks presentation.
So from your post Bushy...Dugbe is only worth £9.3 million to HUM because Pasafino Mcap is $31M.
The NPV given current price of gold is huge. Do you think anyone would accept an offer price of $31million for the Dugbe asset. Not on your nelly pal!!
"Hum own 53% of Pasofino Gold Limited and this covers half current Hummingbird market cap."
Pasofino mcap is 31M CAD of which we own 53% so let's call it 16 million cad now convert that to GBP and it's roughly 9.3 million.
I hope we don't see 2.5p here
Yes, and that is undervaluing dugbe!
Hum own 53% of Pasofino Gold Limited and this covers half current Hummingbird market cap.
Dugbe is mega
It would not surprise me if there is an offer for the Dugbe asset or for HUM as a whole very soon.
Yanfolila & Kouroussa produced 22,867oz Gold in Q1 which included stripping work at Yanfolina and a month (jan) of oil disruption in country at Kouroussa. Also in Q2 will be accessing high grade gold, figures will quickly head north.
Looking at ovet 30,000 oz Gold in Q2
For what it's worth Zac Mir's covered HUM over the weekend and stated returns to 11p pence soon. Took update as not bad news. Let's see
Another jump's coming
NT to buy Friday and today some accumulating going on
Massive NAV, when gold finally on track than it's going to fly
The buy side of that hedge then becomes a creditor which causes even more problems. It's like a death spiral of dog 541t sandwiches and hot 5punk milkshakes
It's hits like a double whammy, not only is your cash down because you produced less but you then have to buy the missed ounces on top of your operational loss. It's absolutely devastating when a company is on the wrong end of a missed delivery with a hedge.
Anon, if the price of gold rises above that hedge and you don't meet production then you have to carry the loss per ounce on the open market.
The larger the proportion of production that is hedged the larger your risk.
Hedges are derivatives are contracts of delivery... You have to deliver on them on time at the prices agreed. Now imagine a company with no cash that has hedged let's say 60% of it's production profile and the mining contractors go on strike. Where would said company get the gold from to fulfill that contract?
Whereas I recall WIZZ had a hedge just before Covid, thay saved them £££££s.
"All they do is add costs and risks"
Costs, maybe, but risks? How so when you set a guaranteed figure? I don't see the risk.
Yes, you might lose out on new highs, as as happened, but you lock in at least some price that isn't way lower.
And given the latest news read, lower rates look like they might be pushed back some.
Crap growth rates amongst the majors might help POG though, I admit.
The thing is, who knows?
A hedge gives a figure we can use as a cert, is my point.
You're a positive type here, the same as me, so debates are fairly by the by.
We both know this will come good and it's only a matter of time.
Meanwhile, I can stand the naysayers, as they drive the price down. I've only got one blocked as he adds nothing whatsoever and can't even see that he can pull his losses back easily. Hey ho.
I've never been a fan of hedges Anon. All they do is add costs and risks. Buy side taking physical delivery always win, they know the market better than anyone and already have it sold before it lands. The seller books the costs, the opportunity cost and financial risk if production goes wobbly.
2350 is obviously much better but could also be a good indication that gold will move higher still over the next 12 months. All we need is some grade on the ROM pad. Currently 2 grams but only 25k tonnes of the stuff thus far, so they do need to get cracking with moving the ore now as the plant processes 23k tonnes a week but if they can maintain that 2g run rate as a floor then all we need to do is look at Yani for a read through with it's 1.6 grams
We're in danger of this actually coming together now imo
Haha, it's even confusing me Bush and I've kept a half eye on it. I need to listen to the whole thing again, at least once.
Whatever, it's safe to say it's all good re the hedge.
I'm still not sure I trust Dan and I hated the fact that the financial bloke didn't even know how to pronounce "Dugbe" and said it literally, but heyho, it's all a game, isn't it?