RE: HUM Driving Down the AISC?13 Feb 2023 11:37
Strange logic from management -Full Year 2024 EBITA approx $120-140m at $1800 oz.
Therefore Sell 18% stake entire business for $11m ( unable to raise any further cash).
Odd management can’t hedge some production at $1800 gold to raise only 10% of 2024 EBITA $$ flow for Kou start up.
CIG $11m equity stake = $25m EBITA in 24 only, could borrow $11m at 100% interest rate due Q2 2024 is significantly cheaper !!
New to register, have management previously hedged production to cover debts before? Risk management appears off.
Second Trache CIG stake is basically 2m oz R&R including 2 built mines for $11m … crazy cheap.
Or NPV at $2300 oz on KOU and DUG approx $1b, CIG get $200m NPV for $11m.
Management have put together ONLY one option to create a liquidity runway for KOU start up as noted above.
Interesting what the guys at AIM/Alwaha have to say given their background.