Member Info for Billyboy2fromiii

Bushy,

Is this it?

https://us02web.zoom.us/webinar/register/WN_GmNkb5LPQKyWJfqVOlkPpw

Think you need to register to view it.

I am away on hols so unable to attend. Please could someone post a summary and and q&a.

BB2

Ptibru,

..."But this type of RNS make me a bit nervous"...

Not sure this RNS would make you nervous? HU promised a R&R Update by 30th June and have delivered that promise on time today. Personally, it makes me more nervous when Companies do not meet timescales promised....
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Adam,

Yes, imperative (imo) that this deadline was met and it was. Do not want to be missing deadlines on top of everything else. As you say, good start to post AGM period....

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Adam,

Yes, imperative (imo) that this deadline was met and it was. Do not want to be missing deadlines on top of everything else. As you say, good start to post AGM period....

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Some good posts today and good discussion.
Really hope that they deliver the RNS tomorrow and do not give Mr Market reason to say they missed the stated date.
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Bushy,

Yes. that is correct. Have a look at my latest post. Is this fairly common? Talking afterwards it seems HUM were not expecting a full amount back but certainly more than they are now likely to receive. A risk of investing in Africa, I guess.

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Guvvi,

My notes are a bit vague on this but from what I understand HUM can in effect claim VAT back on VAT paid. I understand that this is generally a it hit and miss and they do not "account" on receiving all of it back but rather a part of it. Since the ECOWAS sanctions on Mali the Mali Govt have basically said no refunds will be paid until sanctions lifted. HUM did receive one claim back (or offset against other tax) and a one-off but have now been told no more while sanctions remain in place. This is running at approx $ (I think) 1.5M to 2m per month and I think was stated as approx $18m currently. Obviously this is funds (at least some of it) that HUM were expecting to receive back (or offset) from Gov't.
The fact that these funds are not being received along with Q1 poor production equating to a loss on the quarter has meant less available cash than expected. Obviously this money will be owed to HUM in the accounts but when (and how much) it will be received is unknown.

Please note that is my understanding of what was said but my notes are a bit vague. Please do your own research !!!!! Perhaps someone can confirm this and better still give a more detailed explanation.

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Swatton,

Good to meet you yesterday, too.

Thank you for your thoughts and workings.

Let's hope we get a positive R&R update tomorrow.

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Hi Bushy,

Yes, I thought that was the case prior to yesterday.
Hopefully, FCF for Q3/4 (not sure we will see much if any in Q2) will "replace" monies used from loan to support Yan. The VAT situation following sanctions is a concern though).
AK certainly talked VERY well so I do currently trust him to deliver. However, in my opinion, there is no (or very little) room for any more unforeseen setbacks (whether bad luck or poor management). It is now time to deliver.
One other point. Listening to AK, it did make me think that once we get Kou into production (and we hopefully learn from mistakes made at Yan) then HUM could be a real cash machine. Just a question of how much debt (loans (existing and any possible additional) and overdraft plus outstanding creditors) we will have when to get there....
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Guvvi,

Yes.
But to be honest, when you look at the Q1 Production RNS it is pretty obvious really.

In addition, are you aware of the VAT issue following the sanctions being imposed?

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Guvvi,

Pushing back KOU timeline also an option. as would be asset sale but DB did state lengthy DD process would delay funds from this option.
Hopefully, AK can continue to turn YAN around to provide cash flow. However, I believe we are currently "behind the curve" on this so ground needs to be made up in H2.
Must say that AK was very impressive. However, sometimes things can happen outside of the Company's control (see the GRL RNS today as evidence).
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Adam.

Good summary that of the Operational side at Yan.

My notes that I made stated...

that "utilisation rate" was now 88/89% compared to 50% previous (target 85%). In addition, I noted that we were losing a total of 100 hours a day due to breakdown/repairing and that is now down to 6 hours a day.

I also noted,
"volumes were up over last 8-10 weeks"
"volumes back on track" however "spacial compliance" taking longer
"seeing improvements last 6 weeks"
DB stated "seeing significant progress"

AK back in Mali today, meeting tomorrow re UG with team of mining engineers and geologists arriving Monday,.
AK back on site over coming weeks.

In summary, Yan was in a right mess (failure of equipment and the time taken to repair), much more than you could imagine . AK (who I must say gave a VERY technical analysis) seems to be turning things around. We should certainly see some benefits of this in Q2 production. However, I believe it will be Q3/4 before we see the full benefits (free cash flow to pay towards KOU) of the remedial action taken.

I also notes..

Yan currently on target to meet 2022 guidance (as guidance was skewed more towards H2 than H1).
Kou currently still officially on schedule & budget (however some of the Kou loan funds have been used to support Yan in H1 which will need to be "replaced". How they are "replaced" is the golden question.... cash flow in H2, defer creditors, additional lending, placing.....
Currently drawn $77m of the $100m total loan....

More on the liquidity issue later....

BB2

Contd...

However, Dan did state afterwards to me that in the event of a sale, the required Due Dilligence etc would mean it would take quite a while for funds to be received by HUM.

Bonker,

This was discussed during meeting and Dan even asked for shareholder's opinions on Dugbe. Retaining some interest in it was one opinion but otherwise a sale to support Yan and Kou was another.

Hi,

Following yesterday’s AGM, I am fully expecting the updated R&R statement to be issued today or tomorrow which, if correct, will meet the stated timeline of Q2 2022.
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Bushy,

I try to attend the AGM for Companies that I am
Invested in. You usually get a q&a session before/after the voting. It is a good opportunity to look management in the eye and ask questions…
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Stocklow & Legalwolf,

As regards my earlier post, I referenced the Q1 2022 Co Presentation dated 24th January 2022). However, I have just noticed there is an updated Q2 2022 Co Presentation (dated 30th May) on the website. This updated Q2 Presentation is focused on the delivery of DFS in Q3 2022 but the other timelines are still as previously dated...

Q3 2022 DFS (previously H1 2022)
2022 P&F (unchanged)
H2 2022 Commence construction (unchanged)

Suggested the P&F and C&C phased may NOT be delayed in spite of the slight delay in DFS ??

https://www.coragold.com/wp-content/uploads/Cora-Gold-Presentation-Q2-2022-.pdf

Regards BB2

Legal,

I have just had another look at the Q1 Co Presentation on website. That states
H1 2022 DFS
2022 P&F
H2 2022 Commence construction
So on that basis, construction would commence within six months of DFS which would mean P&F would take approx six months. Purely allowing for a one quarter delay in DFS to Q3 then that would mean construction commence H1 2023 if not H2 2022. Not sure how a possible three month delay in construction start date affects where the rainy season would then fall into schedule and any possible impact ? Being an investor in HUM, the Mali rainy season does make me a tad nervous. However, that is offset by my confidence in management here, especially BM. Just hope my confidence is rewarded with a sharply increasing sp between DFS and first gold pour….
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Legal,

Didn’t actually stare time period for Term Sheet. Just said following DFS (Q3) then onto permitting and financing and then onto construction and commissioning (12-18m). I do not know what outstanding “permitting” is required ?
The official Term Sheet (as per RNS) has a DFS H1 2022 condition date so not sure whether the existing terms still hold or whether new terms are required?
The impression that I got (obviously I could be wrong) was that following DFS in Q3 things should move pretty quickly….

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NKC,

Add in

SLP year high 124p, now 88p
THS year high year high 171p, now 120p
JLP year high 19.5p, now 14.5p

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