The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I wish I shared your optimism. Unfortunately faith in management is all that really matters on AIM. And 33% dilution shortly after telling us things were going well suggests Dan is not a friend of retail shareholders and cannot be trusted.
I'm sure there will be future spikes providing better exits, I hope you catch them
The update can't be good or we wouldn't need the money! That's literally $50m that nobody expected us to need, in the last 3 months.
First gold pour at Kou was in June and they are STILL not getting enough gold out of it
Haha thanks bushy. I've increased my holding of shanta. Lower risk, less explosive.
Id hate to make the correct call on gold prices going higher and make nothing but losses because I've invested in a company that can't profit off the gold rush!
yes, it would be a great deal. but they've still got to get it out the ground at reasonable cost, and therein lies the problem, because at current gold prices they wouldn't need a packing if they were actually able.
anyhow let me sell up and shut up. good luck all. highly ****ed off ex investor, over and out
Nope, hedging is forward looking.
Why would anyone let you lock in past prices for something? It's like assuming you can borrow at yesterday's interest rate.
Gold futures are almost always above spot, so any hedge would be, at minimum, at current prices.
But Dan probably got spooked by gold falling to 1800, and like an idiot hedged when it hit 1900
The fact there's no detail on the hedge in either the RNS or interview/video strongly suggests to me it's being hedged at mates rates to someone who can sell it on at (much higher) spot. To assume Dan got a good price would be giving him credit where absolutely none is due. His track record of destroying shareholder value speaks for itself
No way is the hedge at 2200... The timing would have had to be way too good.
60k ounces over 3 quarters = Yan production
Kou can't be hedged as the production is not guaranteed. No mention of recent gold pour at Kou suggests something has gone very awry.
Definitely touch and go whether the company survives as it is, or gets bought out on the cheap and taken private.
CIG might well have capacity to drag this out and force HUM into submission. It's what I'd do, if I had enough money
Why on earth would you buy back in here when you've sold some and avoided this carnage? Don't be crazy. There are much better gold plays with more competent - and honest - management.
I agree the deal stinks. Clearly the debt repayment schedule was too tight, even with gold above 2000. It's nigh on pathetic.
If they hedged below 2000 they ought to be fired
We need gold at about $2200 just to offset the extra 33% shares in issue. I'm convinced DB will find a way to squander any hopes for shareholder returns, eg by hedging at a much lower price.
Have HUM considered replacing DB with an AI chatbot? We'd get the same "value" for much less outlay
Good for him if he's making any money on this dog. It certainly is not one for holding, only trading. There's no long term value anymore if they cannot make it happen with gold above 2k.
Just imagine how much dilution there would have been at 1800. The company would probably be insolvent