Member Info for iWantThatOne

I agree that management don’t yet have a well defined strategy but I don’t see that as an error on their part - it’s because there are so many moving parts. They don’t know whether their evolving operations and cash balance are sufficient to avoid a further cash call (hence the crazy calls for divis and buybacks); they don’t yet know the real potential of CORA and whether to buy it out / participate in future capital raising; Dugbe is still being evaluated and they don’t know whether that can be sold to release more cash, or whether there’s even any third party interest in it. And so on. This will all become clearer over the next six months, and then - I predict - we will see a fully fleshed out strategy. It’s wrong to compare HUM’s current strategic development directly to more established mining companies. As for the expectation from some for a running commentary, even daily updates, on the operational issues - I doubt any serious company would do this, and quite right too IMO - let them get to a point where there’s something to say.

Thanks JDAU, happy to accept that I may have gone a tad on the low side with the likely grades, so XTR’s profit from the initial mining may be closer to $1.5m+pa, IMO (and thanks Andrew for your thoughts). IF (and again this is just my speculation) the build up of tonnage over several years is to grow cash to avoid a placing, that’s fine but it means the Omnia HR arrangement will be small beer (though useful) during this time. So whilst both this and forthcoming alluvial news is all to the good, I’m hanging out for FB news as soon as poss.

Surely this’ll only take a month or so? There’ll be an enormous amount of work to do which AFC won’t commit to until contracts are signed.

I can’t believe the slight negativity after this news. I think it’s massive - they’ve more or less said “it’s coming, folks, we just need to decide how large the system will be”. They haven’t said “Southern are not progressing”. They haven’t said “it doesn’t work”. And the size of the fuel cell was never the point - it’s all about just getting the first commercial order. I’m hugely relieved after reading this RNS and welcome the company’s willingness to keep us updated - at last. Roll on the contract signing.

No problem, JDAU. I guess I can see $1m+ pa profit from the arrangement with Omnia, possibly quite a bit more if the grades are good, at the 500t per day level. Helpful in building up a small cash balance but not earth shattering. I’m particularly interested in why only 500t/day (15k pa)? There’s a lot of plant capacity left unused. Is it because much of the outcrops contain fine gold, which the plant can’t currently process? So (speculation) the cash balance will then help pay for the required modifications without the need for a placing. Or (even greater speculation) is it to leave the bulk of the capacity for FB?

You’re right, I divided by 40 for some unknown reason. So maybe $1.2m profit each at 1g/t. I appreciate 1g/t is a complete finger in the air, JDAU, but surely we don’t expect 2 or 3g/t from these outcrops, like we might find in a mine like FB? And if we did, average costs are likely to be higher. Just trying to start a debate on the subject - I need it to be as much of a success as most people here.

Ok, so coming back to facts, the details of the planned HR production should be revealed soon. The latest RNS on the subject stated that 500 tonnes per day was the plan for the next two years. That equates to 15k tons per month for the Omnia plant, compared to its capacity of 40k. At 1g/t (let’s say), that equates to 375ozs per month. At a typical profit of $400 per oz (let’s say) that equates to $75k pm profit for both Omnia and XTR ($900k each pa) when split 50:50. How does that feel? Of course these are just assumptions, reality could be quite different.

Good RNS albeit clearly just laying the groundwork for appointment of the next contractor. Appreciate your caution Andrew, but must be odds-on now that another contractor will be appointed soon and alluvial gold production will increase significantly. But I’m looking forward most to the HR plan - was it up to 40k ozs per annum split 50/50?

I’m not sure he’s “taken” these options at a time that suits him - I should think AFC has a regular annual process whereby the BoD considers whether to grant any options under some kind of Long Term Incentive Plan. As I understand it, such a process means options can be granted even when commercially sensitive information is known within a company, though not within the 30 days closed period before accounts are published. Still a good sign though, it suggests the company wants to keep and incentivize him, suggesting he’s done a good job to date.

CD. this strikes me as a very pessimistic outlook (“depends if more earthworks fail” etc). As an example, in Year 3 you imply $25m operating profit - 15m repays debt and 10m adds to the cash pile. Yet 120k ozs sold at $1200 with an AISC of 900 per oz gives $36m - simplistically and conservatively.

Agree. Why should CB-holders have some god-given right to hedge their position? There’d still be takers for CBs in that situation.

Some vituperative comments today as frustrations spill out - not nice. IMO it’s difficult to blame Dan Betts for a bridge collapsing and for the pit wall showing some weakness that needs addressing. The pit design was signed off by independent experts and, whilst we can all be smart in hindsight, it was a decision that probably seemed reasonable at the time. Provided these things can be fixed in the very near term for not much, it’s game on again. Agree there are questions to be asked about Bunker Hill, and more detail in the accounting, but expecting immediate statements on a DB resignation or company sale? Come off it.

Negligible trading going on here. I do wonder whether this company is still off a lot of peoples’ radar, or else it’s a longer term play that’s not exciting enough for many. A good chance to add more, methinks, even with a placing due at some point.

Mazda for me. Bottom end of the range at the SP, of course.

They cant be exercised for three years from today. If they incentivize the staff, no problem for me.

Down 19+% today, on low volume. Really?

DW, my terminology may have been lax. I meant a offer to buy the company. Even at 100% premium to the current price, it’s peanuts.

Ripe for takeover at this price?

It’s possible that AFC would manufacture the first set of stacks for Southern without a long-term partner in place, I guess? Though not if it needs new expensive robots to be built for a one-off.

Could be, BB, but wouldn’t Southern want to sign the contract now whilst AFC resolve their internal production and manufacturing issues? I’d be upset if AFC were now to say sorry, we’re not quite in s position to proceed.