Member Info for Mostyn

My neighbour, formally of North Devon has been banging on about Sparrows signifying summer for weeks. We've only seen one and the cat had that.... Shame, must be why it's raining today

Nearly £2 per share in cash reserves which will be dispersed to shareholders via divi's, plus Ingenie is still left which has value.
Plus maybe some other small legacy incomes.

Not too shabby given the mess this Co. Was in a few years ago. I have been on the roller coaster ride for a long time. I'm looking forward to getting all of my money back and maybe a small profit

To be fair HUM have come along way and to his credit, Dan has backed up his words with positive actions. Gold price is a very welcome added bonus. But the SP still struggles to break through 30p. Why? We have diversified albeit non producing assets and a long term wholly owned gold producing mine. Low debt, soon zero. Cash flow positive. Supported by indigenous populations as we employ them and provide other initiatives.
I would say we are considerably under valued and if there was any hint of a divi or buy back we would fly.

I've got 2 questions:-

Will the bond conversion into shares dilute the SP?? I know it's stated at 52p from memory (or is that $0.52) conversion price I believe.

Does the bopd drop from Q3 to Q4 worry anyone? I understand they've been playing around with the Wells in Q4 and virtually producing all the oill from 1 well, but something doesn't sit right?

I did like the point about potentially drilling another producer ASAP though.

Thanks in advance for any opinions

Oil is not in vogue, but still incredibly essential. But China is the market that effects all commodity prices from iron, coal, oil etc and with an already weak growth trajectory this year, the corona virus is going to make Chinese figures the worst in over 3 decades. Its trickling down and effecting a lot of stocks. IMO

This is what I'm worried about and many smaller P.I's have a higher average than current SP :-

"Centamin is one such example, with a series of disappointing production figures over the year having depressed the share price by around 26% to 112p from a yearly high of 152p in late August, a factor that analysts such as Shore Capital's Yuen Low think was a likely factor in the timing of Endeavour’s approach.

The mid-cap firm also isn't the only gold group on the list of possible targets, with Peel Hunt's Tim Huff citing AIM-listed Hummingbird Resources as another candidate due to its Yanfolila project in Mali. which he said made the firm another "strong cash generator" with "a good single asset".

I did have responses as stated from Mr Munro and Mr Ross (who is taking over from Mr Munro as he is transitioning to Cora)
Unfortunately they did not answer any of my questions as they were both busy for various reasons and failed to respond to me on the days they said they would. Does that sound familiar regarding time frames?

Look, I like the Co and what they are doing and what they have achieved. I'm just disappointed and my concerns like so many other PI's are extremely easy to rectify but are simply not.

As much as I appreciate the apparent info provided on this forum of emails from Bert, I would prefer to hear it from the horses mouth in one form or another i.e. Phone call/email - they have my details or a presentation or Q&A of sorts.

What does the IR/PR company actually cost them?

I know Sands. I think he's more interested in cricket than keeping shareholders informed. Amer is debt free, 50mil in the bank. Big partners carrying exploration and a valuable 100% owned pipeline, but longer term shareholders are facing big losses on an unforced sale!!! The same could happen here, but hopefully not.

We just need a bit of transparency and clarity on the gold sales and interconnected private family business's and that would help.

Having spoken to directors at Bunker Hill mining, they consider HUM an important investor, but HUM hasn't said anything about interest payments or converting any of the loan into equity. Something on this should have been announced in August/September but all we know is they restated the value of the loan downwards in our accounts.

There is a lot to like about HUM, but my worry is that they needed investors to get the mine built and now they can happily jog us on and take the company private on the cheap and then reap the rewards.
There is a lot of consolidation going on in mining at present so we could be bought cheaply. Look at how Amerisur Resources is about to be sold to Geopark for a pittance.

Good point Visitor. I will be looking very closely at their next set of accounts. Fingers crossed the Co does actually get back to me. With your points on the pros of selling Dore, I do agree it makes sense. I am just trying to fathom why the SP is languishing.

Has it had anything to do with Mark Denning/Capital Group selling down after or because of Panorama expose? To me the SP started free falling before hand with the artisinal miners and pit wall issues and higher resulting AISC

But..... My gripes and probably the SP could be a lot better with more adequate investor relations.
Sack the PR/IR company as they don't do anything it seems, and improve gold sales transparency.

Sort out LOM as that is also holding us back.

I want to stress that I applaud the local initiatives in Mali and the predominant employment of locals. The timely delivery of the mine and subsequent ball mill. The story looks bright. We have several great plays and a good team in place.

But...

I've been burned by several other promising companies who looked very very good at one point or another before flopping or engineering a deceitful private takeover or skimming off the top. I hope it's not deja vu. And I'm not trying to suggest it is.

ALB

Thanks Jux and Visitor, but why couldn't HUM tell me that themselves despite contacting them through 3 avenues or get their PR people to do that if its such a commonly answered question?

Interestingly, Bunker Hill mining were very open when I contacted them regarding HUM's investment, but this again is a question HUM didn't answer.

What do you think about Betts Metal owned by our N. E. D. Stephen Betts being the sole purchasing refiner (as far as my research can tell me) ?

I believe that there is a conflict of interest going on that is possibly the reason for our lower average gold selling price in the 3rd quarter as well as other Q's and hurting our share price. Our peers all achieved better sales prices and HUM have so far refused to answer my questions despite emails back and forth to Bert Munro and Douglas Ross as well as being ignored by the website contact page.

Stephen Betts is a non executive director and supposed to be impartial which he cannot be as 'Betts Metals' is the sole purchaser of Hummingbirds Gold. I come to this conclusion as the HUM reports state they sell all their gold to one refiner but don't name them and separately in the press, Boodles Jewellers name Betts Metals as the providers of one origin smelted gold from Hummingbird.

Betts Metals is part of the Stephen Betts group of companies. So Mr Betts senior and by default Mr Dan Betts our MD have a fairly substantial conflict of interests.

I would like Hummingbird Resources to provide transparency on sales prices which I am sure they will not do, as they have dodged answering this question for over 6 weeks!

HUM is one of my largest holdings, I am down considerably and worried.

Thoughts on this greatly appreciated.

ALB

I hope M&P could be our white Knight. Give us a better deal, some cash back and still leave us with skin in the game.

Ithaca energy are producing circa 80,000 barrels a day since that takeover robbery, so a cash and share deal here would suit me!

I just can't stomach the thought of Geo using our saved up cash to pay for a big chunk of the takeover deal.

If the board were to disperse our cash reserves before the deal then maybe OK, but that's not going to happen.

Im so disappointed with our directors and NED's.

BMO have advised Amerisur poorly and I hope it comes back to bite them in the future when other selling companies avoid them.

Watchstone Group is worth about £3 a share before any distributions, but the market undervalue us massively at present and yes I think that if a £1 divi was distributed to shareholders the SP would go sub £1 for sure, but with other distributions due we would/should be rewarded for patience above today's sp. Its a question of how long do we wait? If SFO closed case and Aviva Canada dispute settles in our favour soon (personally I think it will) then the Co can sell the remaining telematics business and by mid 2020 we could have over £3 in divis. But who really knows?

ALB

It's actually £39 million in escrow, following court case settlement. Plus PT health sale proceeds (not far off completing) and the eventual sale of the telematics/insurance business plus/minus the legal wrangle with Aviva Cananda.

I like the stocks this fund invests in and even the bad ones aren't doing that poorly. I look forward to many positive dividends fingers crossed

Take out the roughly £50 million amer has in the bank and Geo are getting Amer for less than £200 million!!!!

Complete stitch up. How does this deal affect Oxy though?? And their investment in drilling and Amer's carry??

I think there will be a sale. If not, no worries, we can have a divi and share buy back as we have massive carry's on exploration and 3rd party sales through our OBA pipeline. If the SP crashes, I will sell all my other holdings and mortgage my house to invest here. That's my prerogative.

Now, Get.On.It, I respect your opinion as you are welcome to whatever view you like and I can choose to agree or disagree. But will you back up your view by opening a short? Someone tried the other day at huge potential risk for a pitiful £200 odd profit. But had news arrived, could have turned into a significant loss.

Just my opinion. All are welcome.

ALB

Mostyn

As with most deals, I believe WTG acted in good faith in choppy waters and the resulting deals didn't work out as well as the clients/purchasers hoped and the various legal challenges have been sour grapes. I know they are complex issues and Rob Terry is a massive c. u. next. tuesday, but since his departure the new leaders have done well to organise and rationalise things. I'd forgotten about Aviva Canada, but again I think we will settle in a positive fashion or win out right. Significant value will be returned to shareholders, but its more a question of when and each individuals opportunity cost.