The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
HUM sp was priced to go bust, which was probably fair given the circumstances, so if it turns out to be true that we have got a new miner on board and we can survive this dreadful episode then It would be fair to expect a serious bounce back to a more realistic valuation especially with th gold price action recently.
It is also cleaer HUM have a legal team on this and corica won't get paid if they don't get back to work and for failing to deliver the mining volumes as contracted. It's in black and white in the contract.
"In July 2023, Hummingbird notified Corica of a breach of contract due to the underperformance of the operation as noted above, granting the Company the right, as per the contract terms, to withhold all payments until the breaches are rectified and the operational deficit volumes are addressed."
"In July 2023, Hummingbird notified Corica of a breach of contract due to the underperformance of the operation as noted above, granting the Company the right, as per the contract terms, to withhold all payments until the breaches are rectified and the operational deficit volumes are addressed."
Seems like it clearly states in the contract with Corica that HUM can withhold payments until the mining volumes are rectified and the deficit is addressed. If it's in black and white in the contract then there can be no arguments from Corica. To simply down tools leaves them open to further litigation I would imagine and perhaps there will be a negotiated settlement shortly. Let's see!
If the $27 million payment is due, and we don't know for sure since Hum refuse to communicate with us then they for sure don't have that kind of money, so a placing is coming- that is if they can find a backer. There is a serious chance that no one will back them knowing they can probably get the company on the cheap from administrators. A shocking state of affairs. Dan Betts should be writing his resignation letter this morning.