Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
Do the maths - 85,000 ozs Au at $2,350/oz yields free cash flow of $100 million over the next 12 months - x 3 market cap (DCF cash flow to end of mine life) = $350 million - current share price x 3 = 15-16p - I agree with LeeH.
Suppose management do want to raise additional capital eventually at say 10p - 500 million new shares for $50 million new capital would dilute equity holders by 23% - so the revised share price target become 15*0.77 (11.5p) -- twice where are now - plus the financial benefits of a new mine development - not counted in - plus a great track record by current managers. Looks a pretty good bet to me.
In their Global Peer Comparison table - final slide - Tim Huff from Canaccord Genuity gives HUM a target price of 22p - doubling from where we are today - which is very reasonable looking ahead this year to a doubling of gold production and a serious pay down of debt . If the gold price strengthens to US$2,300 - which is quite possible - there is even more upside potential here.
Excellent excellent RNS - management should be congratulated on bringing Kouroussa into near full production with guidance for 2024 of 90,000 - 115,000 oz. Simple metrics tells me that doubling output this year with a rising gold price should push the share price towards target of 20p. Very shrewd recent investors indeed.
Reasons for optimism this year:
Comparing metrics from West African gold mining shares based on todays closing prices and exchange rates.
Hummingbird - Market Cap/ounces annual gold production = US$1,082 per ounce
Endeavour Mining (Cote D’Ivoire, Burkina Faso) (LSE, TSX, OTCQX) - MCap/oz = US$3.39B*1.27/1,092,000 = US$3,942 per oz.
Tietto Minerals (Abuja, Cote D’Ivoire) (ASX:TIE) MCap/oz = US$2,770 per oz.
Tietto is subject to a hostile and so far resisted takeover bid from Zhaojin Capital - a subsidiary of Zhaojin Mining Industry Company. Zhaojiin has valued TIE at US$2,591/oz.
Zhaojiin a China based gold mining company trades on the Hong Kong Exchange (01818.HK) - Market Cap HK$26.82B = US$3.47B. Annual gold production 378,375 ounces - a MCap/oz metric of US$9,058/oz. (Zhaojiin has exceptionally low operating costs of US$754/ounce).
The share price of Tietto Minerals almost doubled (A$0.29 to A$0.56) when the hostile bid from Zhaojiin was announced recently on ASX - and has strengthen further since then.
So - to reach EDV valuation the HUM price needs to increase by x 3.64 - or to reach TIE (ASX) valuation x 2.56.
If HUM receives a takeover bid - the share price could be expected to double to 20p or higher.
If HUM doesn’t received takeover bid its market value could be expected eventually to come into line with other gold mining operations in West Africa - which means a x 2 .5 appreciation or higher - 25p-35p share price.
I think the Directors, financiers and insiders know all this.
Risks to the downside are minimal with HUM hedging position at $2,000 per ounce during 2024.
I hope DVRG do not give away all their proprietary software and systems to a Chinese company they do not control. Are there not many examples of Chinese joint ventures which ended up as thinly disguised ventures for theft of Western know how, illegal reverse engineering, product replication and outright wrong doing? This is not a good move by DVRG (IMO).
Many recent posts have correctly identified the strengths of 4D Pharma. It seems that the current depressed share price and market cap valuation indicates that some investors don’t quite get the full picture or promise of near-term good news.
Here is my take on recent RNS announcements from 4D Pharma. This is by way of a “join up the dots” exercise.
4D Pharma has several great advantages right now: 1. Sufficient cash to see the company through until Q4/2020; 2. A proprietary disruptive platform of naturally occurring biotherapeutic agents of human origin. These have the potential to significantly lower the cost of developing breakthrough medical treatments due primarily to enhanced safety characteristics; 3. A tie up with a major pharmaceutical company - (Merck Sharp & Dohme Corp., a subsidiary of Merck & Co., Inc., Kenilworth, NJ, USA) - it’s a very positive sign when a major corporation puts their confidence and money into a smaller development company after carrying out their due diligence; 4. A recent pivot to developing a treatment for COVID-19 applying their existing biotherapeutic agent MRx-4DP0004 – combined with UK’s MHRA expedited approval for a MRx-4DP0004 trial.
Dosing of COVID-19 patients with orally administered capsules containing this medication is underway. This is excellent news which should yield results in the near-term.
Since there is an urgent need for a safe and effective therapy to prevent and treat the severe inflammatory symptoms of COVID-19, and alleviate the need for patients to be admitted to ICUs in hospitals worldwide – 4D Pharma has potential to become a world leader in this type of medication.
While accurate statistics are difficult to find, and they vary by country and region – approximately 12% of patients with the COVID-19 virus are admitted to an ICU and a third of these eventually sadly die. If the biotherapeutic medication supplied by 4D Pharma can reduce admissions to ICU’s, this will save hundreds of thousands of lives.
My last post (24 March) focusing on under-priced and undervalued stocks - profiled the excellent news buried in the RNS releases of EKF Diagnostics. These shares were then trading at 26p – they are up 80% as the market has came to understand the significance of news contained in their RNS releases.
4D Pharma shares are in my opinion undervalued considering the promising near-term news flow hinted at in their RNS releases. I have doubled my stake and will sit back and wait for events to unfold.
The FDA has issued an Emergency Use Authorization to medical device giant Abbott Labs on Friday for a five-minute coronavirus test that could be arriving to the nation's urgent care clinics as early as next week.
RNS update today:
“EKF Diagnostics is rapidly scaling up production (in the USA) for the US and globally, to meet the demand of one of the core components in the COVID-19 molecular testing supply chain, PrimeStore MTM....... We have seen growing demand for (our) sample collection device manufactured at our Boerne Texas site”.
PrimeStore MTM is a class II COVID-19 virus sampling and stabilization product specifically cleared by the FDA for molecular testing and characterization (determining whether a person is infected with the COVID-19 virus or not) - allowing tests to be assured of their accuracy. A weakness of many early virus tests occurred because of early degradation of samples.
EKF have today announced that they are part of a supply chain of components used in FDA approved COVID-19 virus tests in the USA - which is excellent news for the company.
"Initial purchase orders are nearing $1M and we expect that to continue to grow significantly".
Noticing the steadying price of Ekf shares while all others re melting down - is there a glimmer of hope that the range of diagnostic enzymes manufactured by Ekf might be extended soon to play an essential part in the PCR testing method for presence of COVID type viruses. When the current COVID scare has died down there will be a large market opportunity for future SARS and COVID type diagnostic enzyme reagents worldwide. Hopefully the directors of Ekf are thinking about that.
Has any director of EKF Diagnostics noticed the £1 million grant given to Mologic to develop a new diagnostic test for the Covid virus via the Governments' £46 million fund announced last week- or the six fold increase in the share price of NCYT (closed 119 pence - 20 pence a few weeks ago) - they are developing a rapid diagnostic test for the virus - surely EKF could be part of this race to develop an effective and speedy test - to the benefit of the company and its bewildered shareholders. Wake up EKF!