Member Info for BPat890

Considering you’re not invested, have no intention of buying and have suddenly increased your generic end of days nonsense here, it’s a wonder why you would spend your time on this board. Maybe you have a fetish for Punter’s placing predictions or just have so much free time like Goldinvestor7.. not sure why you feel the need to directly message me either.

Q3 results coming shortly.

50% increase on Q2 group production to 30koz.

A near 100% increase in output at Kouroussa to 15-16koz

Neigh 🐴

And now we know where you stand Goldinvestor7.

If they only managed 11,000 ounces at Kouroussa something would have had to have gone seriously wrong, so either you know something or you’ve not thought it through properly.

Would you care to explain how you came to that figure?

We have July nailed in at 4,800 ounce so you have 6,200 ounces to split between August and September..

Putting in the overtime tonight eh Punter?

I think you’re going to be disappointed when the company announce a 50% increase in group production over Q2, with Kouroussa production up 100%.

Talk of group losses in Q3 is complete nonsense.

.The only reason the company made such a loss in Q2 was because Corica walked off site for 2 months, essentially curtailing production and Yanfolila underperforming as it transitioned to higher output (mill throughput grades increasing) in H2 2024. Yanfolila production is still expected to have increased since Q2 despite the rainy season, so I’ll hold firm on my 14-15k oz estimate. On point, Corica have been on site for the full quarter at Kouroussa, minimal downtime expected while production increases from the 4.8k oz monthly run rate achieved in July.

There was mention of renegotiating hedges but regardless the remaining hedges are 34koz at $2,230/oz over the next 6 months which is around 35-40% of anticipated production, the bulk of production exposed to the $2,600/oz gold price. Average selling price in Q4 will be around $2,400/oz and higher again in Q1 2025 I expect with full exposure from Q2 2025.

@Punter - the $20 million is being used to part cover the outstanding amount due for repayment this quarter. How many times does this need explaining to you. Hummingbird are obligated to repay $25-30 million to Coris. They have taken out short term

funding so as to meet their repayment and retain sufficient cashflow.

They are seeking further financing to ensure they have available liquidity to meet the $90 million due for repayment in 2025. As the cash generated from production is currently not enough to meet that amount and cover all other group costs it is prudent to seek other lines of credit.

Given the talk of gold linked notes I would expect these to be longer term financing options and provide the liquidity needed while they deleverage the bulk of Coris loans.

@Simplyme - thank you for clarifying! That’s encouraging, so in terms of the latest figures, that’s far fewer hedged ounces going forward (60koz down to 34koz) and an improved price on what we were expected to receive for hedged production! Margins looking even better heading into the next two quarters

@Punter - “why is Betts looking for more funds on top of the $30m recently added to the debt pile”

It was $20 million recently added, as a short term loan, the other $10 million mentioned was existing debt on the balance sheet. They have rolled it all together with a high rate of interest due for repayment end of the year. You know why they needed those funds; $25-30 million of debt repayments to Coris for the Kouroussa development costs that are due this quarter.

They are taking steps to secure financing for the $80-90 million loan repayments due next year. At this stage it’s not immediately clear for anyone wondering when the bulk of those repayments falls due. Clearly this is the most important aspect, ensuring the group profitability goes far enough to meet their loan repayments.

The hedged amount you’re quoting is out of date. It was recently reported they have renegotiated a portion of hedges at a higher price (presumably further out in Q2) and the average hedge price they will receive is closer to $2,200/oz.

Even in the September presentation before that news broke it states $2,100/oz hedges over 60koz to end of Q1 roughly 60-70% of anticipated production.

@Punter - the impact of the mill relining is unknown however it seems to have been a fairly minor issue that was quickly resolved and may have only partially impacted a weeks worth of production. All we know is sustained commercial rates were delayed. There was no suggestion of production stalling at July’s rate through the entire quarter as you are alluding, that is wishful thinking on your part.

No suggestion of Kouroussa’s output in August and September being anyway near what you just suggested. I realise you’re stuck on Q2 figures and would rather keep repeating old news but the operation has developed since then, July’s figures prove that.

Quiet day reflecting on what you and Betts have in common? Delusions of grandeur indeed 😆

@Goldinvestor7 - classy fellow with a heart of gold but only time rich contrary to their claims of being a high net worth individual..

You are spreading and lies. That is your truth and we have all been witness to your daily rants including late Friday night and through the weekend 😆

You can keep calling it wrong but they have succeeded in their initial refinancing of short term debt, secured loans all while apparently losing money during the ramp up Kouroussa despite having $400k in the bank end of Q2. You don’t have a clue GoldInvestor7, stroke that ego a little more and pay attention.

Buyer interest for the Dugbe project despite you being wrong about that.

Time for you to find a hobby little man.

Swatton - I'm using the most up to date figures we have as issued by the company, actual Kouroussa production figures for July released on 9th August 2024 in the Q2-2024 Operational and Trading Update.

"Through July, Kouroussa achieved average gold pours of c.1,200 oz per week, with approximately 4,800 oz produced during the month."

Bear in mind there are 13 weeks in Q3 so if they had only produced an average of 1,200 oz per week that amounts to 15,600 ounces for the quarter. The ramp up didn't peak at the end of July, it has continued towards the targeted commercial production, the company has confirmed this in their recent presentations.

The facts are that Corrica only returned to Kouroussa end of May and production having been severely impacted for much of Q2 only then - end of May - began to climb from low weekly pours.

The last 4-5 weeks in Q2 were remarked upon that significant progress had been made - "Since Corica's return in May, they have consistently improved fleet availability and utilisation, enabling the mine to shift the necessary volume of BCM to sustain operations. Consequently, we have begun accessing the fresh rock ore body, which contains the high-grade, undepleted gold essential for Kouroussa's ramp-up. The fresh rock crushing circuit is fully commissioned, and as more fresh material is processed; we are witnessing a steady increase in gold production."

Increasing production since late May, through July it's evident the trajectory was only higher. Recent presentations have confirmed while they didn't achieve commercial production during Q3 they had been making steady progress towards it. The rainy season no doubt played a part in the company missing it's stated guidance but then stated guidance for Kouroussa was 18-20koz rather than the 15koz I believe they have achieved.

And contrary to Punter's claims Kouroussa is turning positive cashflow at a 15koz quarterly run rate. AISC at the higher cost Yanfolila mine were $1,701 in Q4 2023 on 14,419 ounces produced which today with the hedges calculated would amount to a cash generating margin of $500-600/oz on every ounce (before any group costs, tax due etc).

Goldinvestor7 and Punter64 are trying their very best, admittedly not very well, bombarding the boards with misinformation and resorting to defamatory claims of non supply of equipment which is simply false. Punter even conceded a week or two ago that Q3 production at Kouroussa was likely over 15,000 ounces and has now returned to their baseless claims.

The chuckle brothers taking turns.

Punter unless you’re privy to insider information you know as much as I do, which is Kouroussa produced at least 15koz in Q3, which is certainly churning positive cashflow (gold price $2,600+ and hedges ounces $2,200).

As for Goldinvestor7 we all know why you are, as you admitted previously you want investors to lose everything and the company to fold. Track record of missing the boat and calling it wrong. Doesn’t know how to read a balance sheet and still believes the refinancing wasn’t a refinancing lol

Punter - talk of losses is fiction and your comment “Q3 has been a disaster” isn’t clear either. The definition of a successful Q3 did not rest on achieving targeted commercial production during the quarter. That group production is expected to have risen to an all time high, likely 50% higher than Q2 production with Kouroussa’s output doubling over the quarter is all positive.

Achieving a measured and consistent ramp up at Kouroussa and returning Yanfolila to mine profitability will determine the level of success in Q3. The operational outlook is expected to be positive with further improvements in Q4, building on the profitable margins they already achieved in Q3.

The only major financial issue is whether the group can meet its loan repayment obligations going forward, specifically the $25-30 million due in the second half of this year.

To provide ample room they have taken a $20 million short term loan which will part fund the $25-30 million debt repayment this quarter while operations are ramping up.

By year end cash on the balance sheet will be significantly up as balance of payments will have mostly been received for the increasing gold sales.

In 2025 there is substantially higher debt repayments due and so the measure of how successful their operations are will be comparing the groups profitability against its near term debt obligations.

@Tony

Depreciation of assets is a non-cash taxable deduction. It reduces the tax burden at no material expense to the company in the same way impairments work.

Between that and the tax credits building Kouroussa there will be savings applied before taxes due. I’m not sure why you failed to include that in the list.

Punter - the irony is of course Kouroussa’s current reserves will generate more than $800 million gross earnings over the next 5-6 years. You’re only here to buy cheap and flip let’s be honest

The company have raised $20 million. They already have an existing $10 million loan and the combined amount will be converted to a long term gold linked loan shortly

That’s a new development regarding the improving hedge figure and it sounds like $2,230 is the average price across all remaining hedges combined, rather than just the average for newly hedged amounts.

@Alibi thanks for confirming! Thats an unexpected positive and encouraging from a cash generation perspective

@K3VMC - “56kos at $2230, I think they said.”

Are they new hedges? imi thought they had hedges averaging approx $2,100