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Owns over 40% of the company, and were always going to sort things out.....
Doesn’t matter we are back into operation
About to hit high grade and gold continually going up
So just chill out
It’s funny how people only look at negative
Just be pleased it’s not a placing
It’s a loan and cig want this to work
Yes, indeed , Lew7. Good news
Has the risk of CIG taking the company private increased? Given how Shanta was snapped up as soon as they achieved commercial production with debts repaid there’s a good chance Hummingbird falls prey to a similar situation, albeit with debts and legacy issues having a greater impact on market value
I think the risk of being taken private is huge. A year ago the sp almost hit 20p and the prospect of ramping up production towards 200k oz was high. Even now if we achieve around 120k oz for the year I would suggest 30p would be around fair value, but an offer at 18p backed by a BoD that has been told it will get nice guaranteed pay rises and bonuses has to be a serious risk in light of both Shanta and the fact that the market hasn't pushed small miner to out-perform the price of gold. An extra $400 on the price of gold should have translated into almost $40m extra profit for HUM and so should have easily doubled the sp from 31/12/23 ... but it hasn't. Equity markets have ceased to function properly in recent years at the great expense of private investors
If CIG wanted to take this out, the last few weeks were the perfect time. They weren't interested. Plus the BID will not approve a takeover because this is Betts' baby and he won't let it go.
It's the same as when people said Dugbe would/will be sold. It won't because Betts is going to build it.
Out of interest, if Dugbe were to be sold, roughly how much would it go for? I get the impression from posts on here that as far as HUM's SP is concerned, the value of Dugbe is about zero. Were anyone to seek to take HUM private, surely that would require the price to include an allowance for ALL assets, not just Yan and Kor?
I'm actually a wee bit surprised that the SP is still at a slightly lower level than it was a week or three ago, given that then we didn't really have any prooof that the impasse had been resolved but now we know it has.
14% - fk me - when your credit bad .........
Betts baby? If someone makes an offer it will end up with the shareholders for a vote. CIG are the main shareholder - would they want to sell for 17p having sat through all this turmoil and knowing it might make them 50m a year in 2 years time or something ( might make a lot more - who cares - insert your own figure if needed ). Betts holds very few shares.
Shanta was different, lots of funds said that they had very little chance of seeing the price reflect the value of the business. This was lots of smaller holdings and they just didn't have the appetite for a business who had depressed shares and low liquidity. CIG is completely different they are a large holder owned privately with an eye for actual business performance.
Every business has its price mind, no idea what price CIG would leave this for right now you'd have to ask them. I suspect they have the appetite for the long haul.
Regarding Dugbe the NPV is well known so it's hard to say what price it's currently valued at by all of us investors but it sure seems like no attention is bein paid to it. It's worth a considerable amount of money to someone one day...
Cig are interested in running HUM - they've a completely different type of organisation....
https://ciglimited.co.za/group-at-a-glance/
I believe DB will start the dugbe project end of next year if gold price stays high- at $2400 gold price we should make over $140m pa (after all in costs have been subtracted) and based on production of 200k. We would be debt free by end of 2025 and only need $400m to build Dugbe. I believe this is his grand plan and if the LOM are extended for current projects then should be feasible. Just hope it all runs smoother than operations currently!!
I have to say simplyme that if i make a good chunk out of this business before DB announces his grand plan to spend 400m wisely on another mine i'll be long gone. We barely made it out alive after trying to manage 120m or whatever.
I agree with you though, DB has said that if he has to he'll have a go at the project alone which scares every bone in my body.
Dugbe is being primed to sell not mine
Hum would not even attempt that
I don't think so Lew. Firstly, Dugbe is where the company started and I can't see DB wanting to let it go. Secondly, he and the BOD are building a multi asset, multi jurisdictional company so why sell this prize? Third, it offers a huge opportunity to extend the company's total LOM.
Lastly, if a sale was made on the basis that it's too big for HUM then with what would it be replaced? Two smaller mines at some multiple, perhaps not quite double the capex and fixed overheads?
No, personally I think the plan is to keep it.
Fair enough, good points
The scale of the cost and time would be on a another level!