Hy20 Apr 2012 22:09
Another article by Proactive Investors was dedicated to Hambledon Mining (LON:HMB), whose shares mounted something of a fight back this morning as it revealed rising gold production for the first quarter at the Sekisovskoye mine.
This year’s production was helped by the efforts to ‘winterise’ operations in 2011.
Chief executive Tim Daffern described the start of 2012 as a ‘quarter of mixed fortunes’. Today’s update shows a fairly strong operational performance, and the recent US$3 million investment from the European Bank of Reconstruction and Development was also a welcome boost.
However, as reported last week, during this time Hambledon has encountered a few issues – relating to environmental fines, stalled acquisitions and some operational matter. Consequently the stock lost about a third of its value last week.
After shooting up around 8.5 per cent in early deals the eased back a little and this afternoon shares were changing hands at 1.85p, up 4 per cent.
Fairfax analyst John Meyer reckons there’s value in the shares at these levels, should the current operational performance continues.
“There is a lot of bad news discounted in the Hambldeon share price given the flow of negative news,” he said in a note to clients.
“Management have said that they are meeting their budgets to reach targets for this year of 26,000 oz which includes production from mining 100,000 tonnes from underground production for the full year from 14,504 tonnes achieved so far – should they achieve these there is value in the shares.”