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http://www.fox-davies.com/media/35234/hambledonminingflashnote13july2012.pdf Pretty much what I was saying although I hadn't noted the mill throughput - 63.9kt in June. Not sure why Fox Davies have reduced their Gold Price forcasts considering more QE is coming, Spanish bonds at 7.5% (unsustainable), global recession, Eurozone worries etc. This point is what I was making in my post last week and will be a key quarter for share price growth "All this suggests a constant build-up in production with 4Q being the best for the year. 2013 should be a much better year with increasing amounts of higher grade underground ore, higher recoveries and the mill running at very close to its capacity of 70kt pm."

http://minesite.com/news/orosur-mining-continues-to-generate-plenty-of-cash-as-it-sets-a-production-target-of-between-63-000-and-68-000-ounces-of-gold-next-year

Someones loading up, look at those £15k+ trades!

No worries, just adding another view. I've been away a few days so its the first i've seen of it and I was secretely hoping there would be news. I agree it wasn't exactly brilliant news but certainly an improvement. Next update will no doubt be a similar figure although I expect we may hear something of the ore being stockpiled. This will be processed in Q4 along with any open pit ounces. Lol well I am curious as to why some are so adamant that ECR are the only undervalued company on the whole of AIM. I think some are simply locked in now with nowhere to go and the thought scares them. We've all been there. For what it's worth, it does seem to be establishing a base at 0.35p. I just disagree with the 1p crowd, cheers Anyway lots to look forward to here considering we are valued at less than £15m.

Well I'm not concerned with the content of the production update. Improvements have been made as I will list below. - Total milled tonnes for Q2 increased from 146,080 to 179,156! Yes grades fell slighly from 1.33g/t to 1.28g/t but its hardly concerning. It is the same grade that was extracted in Q4 2011 and still 8% higher than the grades achived throughout the whole of 2011. Also grades are lower because the higher grade underground ore is being stockpiled for later in the year (when recoveries are expected to improve) - Gold production increased for a second consecutive quarter up from 4,870 ounces to 5,917 ounces. That's a 21% increase! - Now look at where this production is coming from - "Mining activities were primarily from the main open pit, with small quantities coming from the north pit." The works on the processing plant are scheduled for completion in early Q4 and will fuel a surge in output (watch this space). - So the majority of Q2 ounces were from the main open pit. There was ore extracted from the underground mine but this has yet to be processed - "These underground ores are for the time being stockpiled until the planned improvements to the mineral process plant are completed in early Q4 2012, this will allow the high grade ores to be processed once the plant recovery levels are consistently above 81% and not at the current 78-79% recovery levels." - This underground milled ore grade averaged 2.66g/t across Q1. In April before HMB undertook the decision to stockpile the ore, the grade achieved was 3.08g/t. Across Q1 underground milled ore averaged 4834 tonnes. While underground mined ore fell, a significant amount (6,254) was milled. In May and June 3465 tonnes (2,723 + 742) was mined. This is currently sitting ready to process and at 3.1g/t would produce around 350 ounces of gold, higher if recoveries improve from current levels. - "The mining of ores from the underground was temporarily suspended in early June and re-scheduled until mid-July to take into account significant water in-flows that diverted equipment from ore mining to a focus and accelerate infrastructure development" - expect underground mined ore to increase to levels this quarter to around those levels in Q1 (4834 tonnes). This will be stockpiled, ready to process in Q4 once processing becomes more efficient. - Remember the resources remaining within the open pit mine are around 80,000 ounces at 1.5g/t. We are making huge steps towards production of the resources within the underground project area. This holds around 1.79m ounces at 3.5g/t gold and a further 2.4m ounces silver at 4.9g/t. The JORC reserve estimates have a grade of 5.29g/t - Price of Gold has averaged around $1580/oz this quarter amid Euro uncertainty. This is around the sale price achived throughout 2011. The game changer is the transition from the remaining open pit resource to the underground operation. GLA

Good posts last week guys, whatever reasons you may assign to the rise, remember the share price is bouncing off new lows therefore we should see people buying in quantity, whatever their reasons. For me personally, Akmola is a side show and not why I invested. I invested this year with the premise that gold production would increase, gold grades from underground mine would increase and the business might become a profitable entity. The AGM highlighted the cost of production would fall by approx $200 based on 2011 highs of $1400/oz. Gold produced is due to rise 30% to 26,000 ounces this year. Even if HMB do not meet their 100k/annum target by 2015/16, they will be raking in huge profits. This share will rerate and I'm happy to be a part of it.

Exactly my thoughts, but it leaves the authors something to talk about in their next report, ie. more upward value. atb

terrydactol - read your post and I agree 100% with you said. Investors posting here do seem to be interested in honest debate, which is something when you look at certain other boards, with posters claiming wild prices within the week, rerates coming and yet they ignore the negatives. I'm invested here because I believe we are fundamentally undervalued and the poor results and margins are a thing of the past. Geckoman - Unfortunately I topped up the other week at 1.8p and my next top up is for my main holding so will just have to watch. Todays Edison report highlights that we are trading now at over 55% discount. The base-case valuation for the full-year 2011 results and Q112 production data is 3.49p. That's taking into account no refund of the $3.8m fine, no Akmola acquisition and below forcast production. All three scenarios are subject to improve, the final one significantly now as improvements to the process plant have been made to "handle harder and more clay/carbonate rich ores". Margins should increase as both grade and spatial distribution of gold allowing for more productive mining at lower rates of dilution ie. "the amount of waste mined incidental to ore extraction" which is currently above 20%. The improvement of gold recoveries from 83% to 90% and higher gold grades from the underground mine will also be key to driving costs lower. I think Edisons base case will only grow from here. Their previous update was pretty sombre reading in comparison to todays report.

Top up time perhaps?

Looking at the recent drill results, there is one in particular that stands out. Hole D118 which has an 12m wide discovery at 16.68g/t Au. This equates to over 200gm/t (true grade-width)! A one off perhaps but the rest of the results are better than expected and above current grades being mined. Some positive news regarding fine, dore export and the EBRD loan recently. HMB found a floor I wonder...

http://minesite.com/media/pub/var/release_downloadable_file/38205.pdf

Someone sold 313,060 shares at 1.60, the new 52 week low. Would love to be able to get hold of these at 1.5p!

Approaching the 52 week low again of 1.67 - a decent chance to acquire some cheap shares! Probably falling on the back of yesterdays results. Mention of the $7m fine not being resolved until next year will affect the final results for another year at least. The BOD believes it won't affect its business operations however. Will be a good time to average down and/or build up decent holding.

They are upgrading the mine and that is included in the high average production costs. This is subject to fall. Also grades have been relatively poor. There are a number of factors which can be improved upon, others such as fuel costs are dependant on the sentiment for oil and global growth. With growth weakening perhaps the price of oil will fall. So margins are going to fall and output is also going to increase. This combination will see the share price grow from here imo

Well year ends are out. I make revenue $3.54m based on todays figures of 20,855 ounces sold in 2011 at an average price of $1,587 per ounce with costs of production (including depreciation and royalty payments) at $1,417 per ounce. $170/oz margin therefore is our base and we should start to see quarterly improvements especially if the Price of Gold rebounds back up to its $1,900/oz high. http://www.investegate.co.uk/Article.aspx?id=20120528102800Z8345

http://www.edisoninvestmentresearch.co.uk/researchreports/Zetar150512update.pdf

Ha yes it was a good one by their standards! Have you got any notes concerning sale of processed gold or perhaps when we will hear about this? I didn't mention grades should far exceed 3g/t (although that would be a good milestone to achieve). In the November 8th 2011 update HMB stated the grade of the ore being mined is expected to average 5.5 g/t Au after dilution. Long way to go yet :)

£21M still looks far too cheap for a 26koz/yr producer and with all the recent credits too and fingers crossed repayment of some of the $6M fine to come. Given the current gold price margins are unlikely to increase by much in this quarter. No reason why gold production won't increase on the previous quarter by a similar amount, 10% now that weather conditions are milder would be likely. Remember despite extremely cold weather in the first quarter HMB produced a total of 4,870 ounces gold, an increase year-on-year for Q1 of almost 10%. Accumulative increases of 10% per quarter would still put year end production below the targetted 26,000 ounces (23,270oz to be precise). Big increases needed which if they deliver will be very positive for the share price here. Not to mention the poor grades are expected to increase towards the 3g/t tooted in previous articles :)

:)

Thanks for putting in the rounds today, just caught up with the days events (lots happening!). Hopefully a test of 3p tomorrow and back to break even :)