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https://www.investegate.co.uk/cora-gold-limited--cora-/rns/positive-metallurgical-test-work-results/202006250700049867Q/
Cora RNS on viability of gravity concentration Sanankoro and trucking of 70g/t concentrate to Yanfolila...

Many thanks for the update, Siko.
Oh well, all good things come to those who wait...

Hi Alta!
So I looked up Lion Ore...
Norilsk Nickel bought them way back in 2007 - that's to say a complete different era in mining (before the great commodity bust). Most would now agree that Norilsk vastly overpaid.
And LionOre were a producing NICKEL miner with bright growth prospects operating in a safe jurisdiction.
Your comparable isn't a comparable at all. Like, not even vaguely.
I'd suggest a price of $50m to $100m is a more realistic buy-out price for a very early stage palladium project located in the far north of Russia (i.e. MT) - that's assuming that the flanks license is granted and a buyer can be found (difficult in current market).
Perhaps you should do some work researching other palladium mining projects currently being advanced in Canada and South Africa. You'll see your valuation is so far off beam it's not possible to take it seriously.

I see this development as (fairly) good news. Dugbe is that much closer to monetisation, whilst Hummingbird aren't spending any new money on it.
I still view Dugbe as an exceedingly difficult gold mine project that may well never be realised. I certainly wouldn't invest my money into Pasofino.
But I don't mind Hummingbird effectively free-riding on the back of Pasofino's money and efforts...

Hummingbird get a mention in this article:
https://www.kitco.com/news/2020-06-23/Midas-Fund-scouts-for-smaller-gold-producers-with-favorable-ratio-of-share-price-to-cash-flow.html

I know it's only one metric, but the EV/Ebitda ratio on Hummingbird is absolutely crazy (as in crazy good).
Looking forward to this year's likely results, EV/Ebitda is currently running a little over 1 at HUM's current share price, when anything less than 10 is usually considered good.
Frankly, if anybody would lend me 100m quid, I'd make an offer to buy this company out, and then use its cashflows to repay the loan in full in less than 18 months.

For Q2 all I hope for is production on target to meet annual guidance and costs under reasonable control (given that Covid19 will have added quite a bit to the AISC). We already know that the average gold price for this quarter should be around $1,700.
Considering the horrible numbers that almost all other listed companies will be reporting in July, this should be enough to make Hummingbird look like a shining diamond in a heap of dross.

Hi Lesser of 2 Weevils!
I think twogoals may have got that wrong. In one of the recent RNSs, Hummingbird informed about a partial conversion of the original $2m convertible loan into shares in Bunker Hill, together with a small infusion of new cash.
IMO this investment does not belong inside Hummingbird, given that Hummingbird's own website touts the company as a multi-asset West African gold producer. I'd be happy to see it spun out or sold off. (To be fair, this small investment is currently a profitable one. But, nonetheless, it's a distraction).

Hi Gotti!
We're buying (and sometimes selling) Centamin shares in GBP, if you hadn't noticed. So, yes, the price of gold in sterling (and thus Centamin's profits in sterling) are crucial to estimating Centamin's "correct" share price.
Could we also keep the board polite as well?

I have a lot of time for SHOE and its management. They tell it as it is, when some other retailers still seem to be lost in delusions.
But today's RNS doesn't make good reading. I think SHOE will make it through the next few months without extraordinary measures, but I'm not confident enough to (re)invest here.

Ross Gerard comments:
"Safeguarding our workforce and community will always be our key priority and I am pleased to confirm Sukari operations continue uninterrupted and we are well positioned by way of staffing and supplies going forward."
It's good to hear officially that Sukhari operations are uninterrupted. I'm expecting some hit to AISC from the Covid-19 interruptions, and the company have already guided that Q2 will be the worst quarter of the year in terms of output, but the gold price should save the day.

Hi Crockedskier!
Looks to me like Standard Life sold low and bought back high. Isn't the whole idea of this lark to do it the other way around?

Hi nglnv!
I hear you.
But sometime this share simply must rerate - unless there is some unforeseen disaster at Yanfolila or the price of gold crashes.
I get that we are pinned here by Sustainable's selling. But the current share price just doesn't make sense on a fundamental basis. At least to me.

It's quad witching day, so anything can happen...

A combination of £ weakness and strong POG in $.
So far gold is holding up well through its traditional summer doldrums.

Sadly, I'd agree that Kabwe is going absolutely nowhere.
There is clearly some serious problem with the project to recycle the Kabwe tailings, and we're not being told about it.
Jubilee are, in effect, moving on. They will use the Sable Refinery to process copper instead. Their new copper tailings project means that there won't be any capacity left at Sable for the Kabwe tailings.
It's all pretty disappointing...

Hi Juxtapose!
Thanks for posting that - it's really useful.
I'd agree that HUM is due for a MAJOR rerate based on fundamentals.
But experience has taught me to never underestimate the short-term effect that a single forced institutional seller (and some associated front-running shorts) can have on the share price of an AIM company.
Hopefully, yesterday marks the end of Sustainable's selling, but I write that without much confidence.

On a fingers and thumbs basis, I make it that Hummingbird will benefit from Cora's Sanankoro getting to production (in 2022/2023?) by about the profit from around 3,000 ounces of low cost gold production per year (given Cora meet the outlined assumptions in their DFS, and that HUM are diluted down by around a further 30%).
I make that an NPV (at 10%) for HUM's share of Sanankoro of around $8m right now. Over time that NPV will very likely increase as monetisation nears and Cora extend the LOM via new exploration success.
As with Dugbe and Kouroussa, I'm confident that none of that value is currently in HUM's share price!

Hi Playboy!
I don't think madness.
Rather, I think that HUM can only spend each dollar once, and that Kouroussa is an even better opportunity than Sanankoro.
This way HUM get to participate in the upside of Sanankoro without outlaying any fresh capital.
All in all, I'm happy with the announcements of the last few weeks. The one piece of news that is missing is a resolution of Bunker Hill. I'd be grateful to learn that the company is not going to put any fresh money in this project. If there is a way to get the money already invested back that would be even better.
Share price is a joke, considering outlook and fundamentals. But we have what looks like a forced seller (Sustainable Capital) here. And that means that it can drop even lower yet.

Hi Phoenix!
Today's RNS does indeed look like excellent news for Cora. I'm not invested there, but congratulations all the same!
The news does of course put a much more "real" value on Hummingbird's stake in Cora. So hopefully it will help things here as well.