Member Info for Cheerfuldoor

Gold up $37 or 2% so far today. Nice.

Pasofino are presenting at 121 Mining Investment in May this year. There‘s a short company intro which includes major holder info. This includes Hum Director holdings (Earnie Nutter 10%, Daniel Betts 8%)

https://www.weare121.com/121mininginvestment-new-york/pasofino-gold/

https://issuu.com/andersonmurraymedia/docs/rgn_v8i2/93

Hum article in this issue of Resource Global Network. Page 82 onwards.

In the Q4 RNS we were told that $2m was received from the Government of Mali as part payment for their acquisition of an additional 10% stake in Yanfolila. Had this not been received I wonder if Hum would have been net cash in 2020. Looking back to the 2nd Feb 2017 announcement we were told to the government would acquire a 10% stake for approximately $11 million. This means Hum can expect to receive a further $9m. Whilst a timeline was not specified, were this received during 2021 this could go a long way to paying for the $7m development CAPEX perhaps? There’s even be a bit left over to pay to help fund exploration. Just mulling it over

Pasofino have announced they are selling their 50% interest in another project (Roger Gold-Copper project) and focusing exclusively on Dugbe.

“For Pasofino Gold, this sale allows us to fully focus on our core Dugbe Gold Project in Liberia where we are busy with the feasibility study that is expected to complete by year-end.”

I thought the quality of RNS and interviews this week was great. The MRE improved transparency. The most recent interview answered PI questions - responding directly to our feedback. I particularly like the combination of Dan and Murray. They seemed to be having fun and the SE discovery has put a spring in their step. It gave me the confidence to add (showed as sell).

I was reflecting on broker notes shared here last year. TwoGoals posted a link to one in August 2020 for example suggesting an extra years mine life could be worth up to 10p per share. Ok times are different but If SE does prove to be ‘material’ this could be great for holders particularly given grades. That same broker note suggested Kouroussa will add 20p on mining license approval. Again times are different but when Dan describes Hum as a growth stock he has a point.

In parallel the drills continue to turn at Dugbe, funded by Pasifino shareholders. This value creation appears to be in stealth mode for now but could yet surprise. Will the results encourage a suitor for example?

Congratulations then to management for backing the exploration team who in turn have done a really nice job.

https://youtu.be/XLqeWwe1Nmo

Update from Ian Stalker @ Pasifino on the progress in 2020 and there is a new presentation on their website/Twitter.

From Twitter: Hummingbird Resources Market Gardens update: positive rehabilitation has been happening at the Market Gardens with irrigation completed and pumps in full working order at two of the villages we support, Bandiougoufara and Kona Market Gardens

Is this later release of results normal or because Q4 was worse than expected they are holding the release so Jan production actuals can be included to reassure? Or is something else?

Cora released a nice drilling update today. This included results on their permit to north of Yanfolila. Hum has been reducing its stake in Cora over time, not sure why, I think they are doing well

Hardcore Hum fans might enjoy checking out some photos of the mine from 3 weeks back and 4 months ago. To view out Hummingbird resources Yanfolila in googlemaps and click photos. Lots of pictures of wet and muddy men trying to dewater the mine. There’s even a picture of an aircraft landing at the new airstrip!

Looks like this could move back under 30p given Sustainable selling pressure, a reducing gold price, and likely below expectation results. I take some comfort from the fact we are a producer with good cash flow. I continue to hold and may accumulate further. Hum Management it’s said “don’t let the grass grow under their feet”. I wonder if we can expect a continuation of 2020s fast paced corporate action. It was said I think they continue to look at other opportunities so there could be surprises to come in 21. I hope the market starts to see the value that existing investors do so I can relax and enjoy my holding. As an investor I would also like Hum to host an investor meeting to further engage us in their plans.

My experience of Hummingbird Investor Relations was when we were invited to email questions given the virtual AGM. I submitted a question and had an email saying they would come back to me in coming weeks. I followed and did not hear anything. It’s possible any response went to junk mail I suppose. Bunker Hill by comparison came back same day (CEO no less) and Pasifino appear highly engaged with their investor base even offering a project call back service - very impressed with that. This didn’t stop me investing further in Hum however.

I don’t understand drill results - but i do enjoy looking at the pretty pictures. This new hole outside the mineralisation model looks interesting. I also spotted “?Pophry mineralisation” on SE Drilling Intesection 3” and thought this interesting. Credit to LLB on ADVFN who spotted the same and points out this could mean VMS. No idea what this means either but sounds like it has potential to be good!

Reflecting on the year one thing I didn’t fully understand is how the ARX transaction worked. We were told that three Hum directors (Betts, Hill, Nutter) invested in ARX owning 39% in aggregate. We don’t know how much £ they invested to acquire this 39% as far as I know. This it was said at the time demonstrated their confidence in the project. They then ‘gave’ the 49% of the Liberia project, owned by HUM shareholders, to ARX in return for the DFS commitment etc. ARX was in turn reversed into Pasifino. We were told this Betts/Hill/Nutter stake would likely be diluted down.

I am impressed by Pasifino (Stalker). I just wondered now some time has passed what people
think of the directors buying 19% of Hums Liberia asset (pre dilution) versus say doing a deal with other parties they were said to be talking with. I was thinking about $70m HUM has invested in Liberia so their stake was equivalent to $13.3m the sunk cost. I’m just looking to learn - apologies if my sums or figures are wrong here as I type on phone

This is a roller coaster of an investment for me. COVID; political unrest, a major Coup, Rain, warning about missing guidance.

Balanced against this had been production despite these challenges, debt repayment, exploration success and deal making.

I am left perplexed by the share price...is something else afoot. I bought a few more this morning

Thanks for a great conversation on AISC, I learnt a lot from this. I also had fun playing around with a spreadsheet and now see it’s a surprisingly straightforward calculation.

I’m curious about the resequenced mine plan this year which may in part account for reduced production. I don’t think it’s ever been explained. Are HUM going for lower grade material while prices are good to help extend the life of mine? Looking at the latest presentation it brought home to me just how urgent the drilling campaign is. Current pits are scheduled to exhaust themselves in 23 and 24....

I’m tempted to follow others a buy a few more. However I’m pretty committed already here. The coup was a reminder its high risk proposition at least until the other mines come online. Decisions decisions

Thanks Kadavul; there’s a video presentation link in the update providing a nice overview of the BH project for those that are interested.

In a years time which will prove to be the better investment I wonder:

Hum, Cora, BH or Vein

Don’t think I’ve seen the news that Pasifino have started drilling posted here:

https://static1.squarespace.com/static/5898d2fdd1758e28995d7453/t/5f8edf7707bb7179957c7165/1603198860636/VEIN-october20.pdf

Their update is comprehensive and looks mighty interesting. I’m happy holding Hum

Thanks for posting Briandrain. Great to hear this extended interpretation of the RNS.

Thanks too for your earlier response Goldenbull and thoughts on my mine life question.

I liked the closing response on reasons to invest:

1) Geological potential - at all projects
2) People - the Hum management team
3) Growth story - soon to be multi asset producer

Also exciting to hear the team are evaluating “other exciting opportunities as we speak”. Exciting indeed