RE: Redtrend7 Jun 2019 10:50
Not my post, that of Redtrend, just posting here for interest.
Zhockey - mine life was 7 years, with 5yrs forecast for LoM extension with higher grade Gonka.
So now you're probably down to 5.5yrs (maybe bit more as production has been lower than forecast due to various technical issues) and a revised LoM plan is due sometime in June. Whether it will include full 5yrs extension or in steps not sure. I wouldn't expect a full 5yrs straight off, who knows.
Separate to Gonka and more long-term, there's other exploration potential at Yanfolila, further afield you have Cora exploring relatively close by and you also have AGG (2.2m Oz resource, listed on TSX) which HUM nearly reached an agreement with a while back. HUM were right to back out of the AGG deal, but longer-term it's definitely a potential acquisition target and the AGG feed could then be trucked. AGG has collapsed to circa £5m market cap in total and don't see how they could survive alone. So perhaps later HUM can poach them up.
But short-term the HUM Board have a lot to sort out and prove, hence the low sp. So whilst I'm invested, it's hard to recommend at present due to the high risk. But of course as it's high risk, likewise the sp is heavily discounted, so potential for high reward in event HUM can sort out the myriad operational issues, which one would hope are a thing of the past.
So I assume most potential investors will wait for LoM extension update and Q2 Quarterlies in July. Sustainable Capital seemed confident enough to increase their holding to 12% at the 14p mark.
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