George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
All back on site mining by Saturday, final blast, high grade coming out by the bucket load and gold at 2220 oz. Could happen, we can dream
Its not the size of the debt here that is an issue, under normal operations this would be paid down quickly, its the fact that the repayments begin from the end of this month. Even with an extention to the debt repayments I think there must be atleast a small raise of £2-£5m to cover costs
Fair comment, if you belive this to be the case perhaps wack a short on, id love to compare notes in a few months time
Getting harder and harder to buy.
Couldn't get a quote again so had to stick it on as a limit order.
It's not 0p or 5p though. If they survived with dilution we have no idea what the potential is. Could be tops 10p if they have to raise 20 mil. Then it's 0p or 10p. You could do that at the roulette table in a fraction of the time and with no tax...
Ill confess - i've topped up in this dip not a huge holder sitting on about 60K shares now - i am hopefull a stoppage for a few weeks wont impact anyhting too much but they have a hell of a lot of debt. Worth keeping in mind they own 53% of Pasifino which is currently valued at £15/20M so this is priced to fail at £25M if the gold price holds a couple of years from now they could be debt free - seems like a worthwhile punt 5p to 0p ot 5p to 40p and who the hell knows what will happen to dugbe at this price im sure it could be offloaded if it came to it
If I'm not mistaken, HZM haver produced anything but borrowed and borrowed to fund drilling and pie in the sky DFS's.
Horizonte Minerals, it just goes to show what can happen and the risk to equity holders.
As I've said before, Dan has contempt for shareholders and the need to keep them informed. Probably because it's always bad news
Yeah it's tough but Dan makes it sound impossible. If i was Humm i would have stated whether Yan mining is affected at all and also given shareholders a summary or view of the current financial position. We own the company and we don't know if a major issue with a major supplier at our new large mine is actually dangerous for the company and over what time frame.
Every RNS is so vague and hopeful or full of pointless legalese type prose. Just talk to us about the risks in plain english as though your mother is a shareholder and has asked how things are going !
Yup it's a very long and sobering list. Mining is Africa is tough, unfortunately Dan Betts isn't cut out for it. Unless they get rid of him these issues will persist
It's such a shame. I think we can all agree with gold over $2200 this should have been over £1 a share by now. Unfortunately, Dan has consistently messed it up. Pit wall failure because they changed the slope angle from design to be too steep, insufficient stockpiles, two security situations due to poor social governance, equipment failure due to poor award of contracts, out of control Aisc due to poor management aka Anthony, artisinal depletion, high salaries and Mayfair office, 1p share options, upgrade Yanfolila plant throughout before realising it's a smaller mine going forward, worst timed hedge (I bet this is costing them money atm). What have I missed? The list doesn't seem long enough.
I sold out here almost 50% ago, and I've made 75% on SRB. So it certainly seems to have been the right call so far
Id like to say they won't go bust. I mean the RNS makes no mention of serious financial issues specific to this new development... However i've heard Dan speak at least 3 times in the last years and within weeks found his rosy picture isn't quite so rosy. The fact he always sounds bewildered about the markets pricing but always shoots himself in the foot is pretty ironic.
That said i bought 5k more at 5.45p this morning as surely it is in everyone's interest to get this issue sorted somehow included the debt holders. I know everyone here loves a conspiracy but i can't see how Coris want to inherit their own debt with no working miners/management. If the reply is they can sell Humm in a debt ridden state to a few people then you clearly believe Humm is worth a fortune today as well. I'd guess if push comes to shove Coris will delay some debt on different terms or something and allow Humm to do a deal with Corica.
In short I think you have held the risk here and sold out just at the point of deleveraging, just to buy the same build and capital risk at SRB.
I could be wrong of course, it's all just my humble opinion
If gold price is all that matters to you as investor then avoid gold producers Jammin and buy leveraged physical metal ETFs.
If on the other hand leveraged returns of cash are more important then you need to be looking at producers who are expected to have elevated rates of ROCE whilst ignoring debt where DCF outstrips liability.
My thoughts are that you have jumped out of the frying pan and into the fire... HUM a few weeks away from a monstrous rerate with Kor resolved and gold at 2200 puts HUM at circa 50p on a DCF based valuation.
SRB on the other hand are where HUM was relative to number of projects and ambitions more 2 years ago and with a significant funding gap over current MCAP.
Personally I think anything over 40p for SRB is expensive until they fill the gap. Plenty of people have 5h1t themselves over the volatility here, you're certainly not on your own
Bushy, I'm not putting too much in ANY small cap miner, because they face such company specific risk.
My thesis remains that the gold price is going up, and I want to capitalise on that. Hummingbird is a dud, but others are doing incredibly well.
At current share price this still has a 40m market cap, so there is a LONG way to fall still. Don't be surprised to see this keep falling while awaiting resolution.
Best thing they could do at this point is fire management
RNS. Still no closer to sitting this mess out
Working capital must be running out soon, add on interest payments and now apparently buying a new mining fleet or 3.
I can’t see why you imagine it’s a buy right now.
Key things Im looking for-
All management removed by CIG
Dilutive capital raise
Absolutely a no go unless the above happens
Zero alignment between management and shareholders
Good post bushy…. Seriously there’s some clowns on here don’t understand the business model or the timing.
2nd qtr hum will be a different business
Not long now
You're right Jammin, we should just stop bothering mining the other 90k ounces a year at Yanfolila as it's not worth it anymore. Yanfolila alone literally produces almost 3 times what all of Searbi does, then there's kor which will be sorted by Tuesday (hopefully) then there's the 1 billion NPV at Dugbe all for less than the price of SRB's 30k
Too much here to pump and dump, this is the opposite... Dark pools are operating here.
Seriously though, don't put too many eggs on Coringa it'S been only 2 years away since 2020 and they've still not plugged the funding gap.
The gold price is not relevant to HUM anymore
If you know the bigger picture you don’t worry about the short term movements
The BOD know what’s coming and they cannot control the day to day share price
Hum has potential to move to multi bag
Done it before will do it again
I’m now waiting for a barrage of abuse
But do I give a F
I’m down a s h i t load here but I’m not losing sleep
Over it
2nd qtr this will be a different company
In my opinion in should be sorted really quickly, quickly,however if it drags on little bit further that it can impact company's finances and there wont be any room for any further mistakes.
But it would make them more accountable Spacehoppa, IE nowhere to hide