Member Info for Tornadotony

Siko

Feel absolutely free to give your opinion. Every investor and trader is responsible for their own actions and to nobody else on these chat boards. In the end we either like the story we get told from the company, we do as much secondary source analysis as we can and then act brave enough to jump in and hope for the best and take responsibility to project manage our own resources. I believe you are a sincere individual but the immature always like to blame somebody else when things have not gone their way and their remarks often need to be ignored. I for one always welcome your input. Regards Tony

Whenever the Motley Fool degrades a company share.
Remember to buy it with fortitude and dare.
The fool if ever is prognostic and wise.
Doing the opposite rewards the energised.

Agree with iwantthatone. Directors Hippo changed.

The AISC range comment rated to the 110,000 to 125,000 ounces and my not deleting They while editing.

Accounting for the $3M increased debt and a total of $17.7M likely to have been spent on pit wall remediation ($2.7M this January) appears to be taken off the share prices that were given to the company. The additional cost on the AISC was $25 for 2019 and hence the new AISC range given. The biggest factor on AISC is whether they hit the top or bottom end of guidance. The problem of not having share price improvement within the Hippo criteria is that it does not deter risks taken by senior managers like with Bunker Hill where the cost is borne only by the investors. We do have a lot of positives going forward that could improve the price. They a rerating during the year barring mishaps should take the stock forward. I still hope the Hippo is changed to reflect the existence of investor stakeholders.

Storming back to 30p. Around $40M value minus $10M against the immediate outlays to go onto share price. It is now a 6M gold ounce company for real. The cost of the mine and delivery is quite a lot to do. We are likely to see this to become a growth stock over the coming years.

The Dugbe licence was originally set for expiry on 24 October 2011. Apparently the Ministry of mines of Liberia had deemed the company was working towards a mineral development agreement and proceeding to achieve a grade A licence for the Dugbe project. The output from those licences was the submission of the MDA around June 2015. The company raised funds on AIM to carry out studies to deliver that MDA. One of the key fundamental problems has been an unwillingness by the President on the lumping of licence areas all into one MDA. The problem of not doing this and treating each licence area separately for its own MDA is to render exploitation as uneconomic. The exploitation programme achieved in nearby Mali demonstrates the fragility of the economics and that it is only with multiple licence areas being exploited that gives the right economics to take on all the risks and deliver a functional mine that is cash revenue bearing, allows investors to get back their monies and hopefully achieve a return and that government gets its share along with local people to make the whole venture worthwhile. The difficulty for Hummingbird is to be to proactive as then it is accused wrongfully of giving to much influence. It can only ask the Minister for mines what they can now do. The first priority is dealing with the licencing arrangement for the MDA, the second is the power plant and finally they get to what is the guidance to satisfy local communities, the environment and who they do work it all through so as to be completely transparent. So in effect Hummingbird are way beyond the original mineral exploration licence issues and stuck in a process between the old B licences and granting of a grade A MDA licence. I do not feel they can be penalised for that as it is down to civil servants and their rules on how this all should proceed. What Liberia stakeholders need to be aware of is that if the demands on their side are to high than Dugbe is impossible for any company to raise finance to then develop and deliver.

Unfortunately the link has not worked but 15 licences were granted from November 2005 to October 2010. The last being at Joe Village. There is no expiry dates identified in that presentation.

Presentation from December 2010.

file:///C:/Users/Tony/AppData/Local/Microsoft/Windows/INetCache/IE/RRR19B0P/humming_bird_investor_presentation_dec_2010.pdf

Before a Dugbe mine is built, a hydroelectric power plant and energy provider for the mine is needed. The environmental and all the other issues need to be handled, like who builds it, where located, who pays for its construction, how does the government incentivise someone to construct a power plant for Hummingbird to contract and use or alternatively if the company builds it, can it off set all its costs against future tax liabilities as part of the MDA agreement. Until they get pass this fundamental issue nothing happens in Liberia for the Dugbe project.

The $40M valuation clause becomes valid once the Liberia Government puts it into law for the MDA to proceed with exploitation. The company may not have added the $40M under its intangible assets as a result from what I can see in the accounts. I read about the $40M in one of the company documents. I really do wish Hummingbird would make their website more user friendly with search to go back into to past paperwork. I think it was in a previous annual report. To have companies that discover gold and just to say to another competing company to go and exploit it instead of the discovering company is not how I thought things worked.

The president did not ratify the MDA that had been agreed with the executive branch of government. The reasons related to administrative errors in the document presented to him, a lack of detail from Hummingbird on the benefits to local people. The president also wanted the executive to renegotiate the terms again which of course impacts on the economics of exploitation of the licences. Any company wanting to take over from Hummingbird in Dugbe has to compensate the company $40M and also pay a fee to the government and then discuss another MDA with them. It is far better to have these kind of MDA discussions before a mine is built than to have disagreements once they are constructed.