Member Info for Darola

He implied it would be after we’d built a cash pile, but as they’ve put a motion into the AGM for voting later this month, once approved it could come at anytime. I prefer to think that if Re company don’t buy back shares, then they have intent to use cash for acquisitions/expansions. But not at a level they can openly discuss without compromising deal conversations. It all feels a bit premature to be speculating on what we’ll do with the cash before we’ve got it. Fair point if we were sat on $150m with no debt and no plans, but this is an ambitious management team - Im happy to sit back and wait.

“This is a major problem for IIs, and hence why they dont want to invest.” The company have confirmed that circa 70% of shares are held by iis, one recently brought the 6.2m placing shares in one bite, so what do you mean by this?

Sorry, but Dan has been clear on what they’ll do with the cash in his interviews. Paraphrase “We will use the free cash to grow and develop the company, if the right opportunities do not appear we’ll give the cash back to the shareholders, and if the SP doesn’t respond there would be no better investment than to buy back our own shares”. Let’s get a couple of full quarters under our belt, prove up the additional resource to extend the LOM, and confirm the plans for Dugbe - as for the rest, you can’t communicate an M&A plan that is commercially sensitive, requires deft and secret negotiations and is actually dependent on deal availability. So I have to trust them on that bit, and like the AGG notification we could get an unannouncement RNS at any time. If it doesn’t happen, then next year they’ll probably start talking about divis or buy backs. It’s just too early now.

£1 and then I’ll reevaluate

“management do not address this very clear issue” - They’ve stated their position in interviews and quite comprehensively in the results RNS, so what do you mean they don’t address it? People have serious patience issues, HUM has been a cash positive producer for a very short time (weeks/months) , and it has years of cash generation and real expansion opportunity ahead of it. When we have actuals in front of us we’ll either rerate of get brought.

Nobody knows where any share is going, unless insider dealing of course, but you balance risk, capability and current value to work out of the SP is cheap or not. For me HUM still ticks all of the right boxes and I believe the major catalysts are still in front of us, if when those milestones have past HUM has not responded I’ll move on, but whilst they are still very probable achievements I believe that a company chucking out $60/70m a year profit for the next 10 years has to be worth more than 31p. Otherwise I’d feel like I was gambling, I still very much consider this as s sound investment. Look at SDX, same scenario - chucking out cash, developing resources and reserves and SP didn’t budge - same B.B. rumblings “something’s not right”, then when it was ready went from 50 to 70 in a few days, settled back a little now, but it’s trading range is in the 60s with expectations of more to come.

Just a reminder from the Value the Markets interview - “With Hummingbird recently deploying a team in Liberia, this development hiatus looks set to end.” Plus when I asked Dan about Liberia on the recent investor call, he indicated that they would update on plans this year - all getting very busy in this area if you ask me, and with none of the value of Dugbe included in the SP it’s got to have s major effect if/when something is confirmed. http://www.valuethemarkets.com/index.php/2018/05/30/progress-key-developing-equity-story-hummingbird-resources-will-follow-flying-start-year-hum/

Gvmt delegation visiting Mali - https://m.facebook.com/groups/484966921586689?view=permalink&id=1613604288722941&_rdr

I’m convinced we’re going to get a major announcement on Dugbe soon - it’s got too much “special attention” with the gvmt for their to have not been a major commitment from HUM.

Reading some of the other news articles around this it seems to infer (or I’m just reading what I want to!), that the gvmt see this MDA as a way to get revenue to fund their loans to build roads. Timescales are long - 10 years - but the way the two bills have been passed through Senate and Legisliture together suggest one is being used to justify the other - also considering the funding is for major roads that link the counties HUM has licensed. It’s always been stated that the terrain was a challenge. QUOTE: “In an interview with reporters, Senate Pro-Tempore Albert Chie, assured the public that over the next 10 years, the government will accelerate the assessment, appraisal and sustainable development and management of its mineral resource band and other natural resources to improve the lives of the people especially rural dwellers and service these loans which have been obtained.”

https://m.facebook.com/story.php?story_fbid=1741036895983762&id=100002324062219&_rdr

Yep. But in HUMs defence they are investing a lot in social and community programmes to bridge that gap. Including a significant local workforce - so we shouldn’t underestimate that it’s not just government suppressing the rebels, many many locals are on our side as well. If you read the facebook posts that comes through.

That’s systemic and has been an us against them position in Africa for centuries. Hence government methods to restore law and order are swift, practised and effective.

That might be the first time we’ve really agreed!

Just search Facebook.

DB. Suggest reading social media, there is a significant number of posts - from locals - around and after the incident, with photos, that give a pretty good view of what happened. The fact that these local postings have all gove quiet days it is very quiet on the ground. This really was a storm in a tea cup - all be it with tragic consequences. It’s not a major issue, just the realities of mining in Mali. I remphasise the social media posts were from real people, living in and around the area. Not massaged news or other propoganda.

Re Cora. What’s to say they dilute and HUM buy the lot - increase their stake and Cora gets funding to get closer to gold production...

One can only assume that if we haven’t had an update to suggest otherwise, then yes. Guess we’ll no for sure in the Q2 update, due early July. But I wonder if we’ll get some update ahead is the AGM, otherwise it will limit what can be discussed - making it a very dull meeting that just passes resolutions and elects board members. I won’t travel to London unless there’s an update.

For HUM to become what it will be, it needs to invest its cash wisely (I trust mgmt to do that) not buy back its shares. IMHO.

We are at the start of a long journey and there will be a few catalysts for rerating. I and many others expected that to have happened by now, but it hasn’t. None of us can know what is going on in the biased world of ii’s and mm’s. But we should take confidence that any selling - heavy or otherwise - is mopped up, and in contrast to a hell of a lot of AIM shares the trading range here is relatively tight. In terms of buy-backs it’s just too early. And the company have been very clear on their stance - read Dans comment in the results RNS. But in terms of future Catalysts these are 1. On track (or exceeded) 1st full quarters production figures. 2. Confirmed extension to LOM 3. Plans for Dugbe - lot of activity behind the scenes here, we have a HUM party recently sent to Liberia, a Liberian gvmt party visiting Mali and ast track approval of HUMs licence. 4. Clarity on the coop status between HUM and Cora (who are finding shed loads of gold) and in addition to these an M&A announcement could come at anytime. I’m not invested in what HUM is, I’m invested in what it will be.