Member Info for twogoals

Re. Cora - Might mean nothing but I noticed Cora slipped further back in the recently amended June presentation. It ended up right next to the 'buy your gold coins' advert at the back.

https://hummingbirdresources.co.uk/wp-content/uploads/2020/06/HUM-Corporate-Presentation-June.pdf

I still suspect more news to come out as I cannot understand why there has been no media or interviews on the last weeks announcements.

I know Dan has a bad reputation with lack of media but this surely cannot be it, right?

With almost 80% of Q2 completed now or 24,000 ounces mined of (assuming no issues) we must be sitting on roughly $37million worth of cash/ produced gold and $3-6 million net debt positive.

Obviously I have no idea on what payments are going out but $37million should be around $40m by end of Q2. That's a lot of cash sitting in bank?

Good posts JTS13 & austrochris.

I cannot believe we have not seen any media on all that's been happening. Maybe there's one more update or news to come?

jwhitw - That comment has probably ruined your day.

Am I correct in thinking that we’ve bought the mine in shares & we’re looking to fund the mine the same way as Yan through a loan?

Does that mean the company has still not told us how it will use the profits of Yan?

Correct. Plenty of upside to the resource. Very similar to Yan.
“Previously due to insufficient funds available to Cassidy Gold Ltd for exploration, numerous near surface targets and deeper extensions (>300m below surface) have not been drilled tested, which internal modelling and studying carried out by Hummingbirds' technical team, as part of the due diligence process, shows significant potential to increase the resource base with further targeted drilling.”

Strategy and acquisition rationale


Hummingbird's strategy is to become a multi mine company focusing on margin and cash returns to create long term shareholder value, through a three pronged approach:

1. Extending mine life at Yanfolila, Mali
Extending the mine life at Yanfolila remains a high priority and the drill results announced last week; both exploration holes close to the plant and holes targeting underground developments at Komana East are encouraging in this regard.

2. Diversification of cashflows and returns with high margin projects
Geographic diversification of producing assets should provide excellent risk mitigation against single mine and jurisdictional operations. The acquisition of Kouroussa as a high grade, high margin, additional mine, which leverages Hummingbird's operational and construction experience is a significant step in developing this second strand of our strategy.

3. Capital allocation
It is critical to maintain discipline in the allocation of capital with the objective of prioritising extending mine life and value accretive diversification. As part of this it is incumbent on us to maximise the value from non core assets which are not a natural fit for the Company at the current time and may be a significant drain on the Company's resources and/or represent a risk to the wider group. An example of this is the recently announced farm in agreement in Liberia for the Dugbe project which represents a significant investment from a third party in order to unlock value at a project which is strategically seen as too large for Hummingbird to develop on its own. This investment means that the project's development and carrying cost for the next 2 years has been minimised to Hummingbird who retain control of the project for the long term.

Now the plan is starting to reveal itself. Great timing and looks like a very manageable project for us.
Great news!

Great news Corporal. Now go and tell someone the Shanta message board.
I’ll be over there soon to discuss our amazing deal today.

No trades at lunch and then almost 100 trades this afternoon!
Just when POG is getting smashed up.

It's gone from zero trades at lunch to 85+. Something certainly looks leaky leaky.
Gold price has even gone the other way!

Monkey - The volume traded has hardly changed. If volume had tripled and we were selling at these prices then I'd be worried. Price of Gold's come off so how much of that drop is that? You're really trying to make some massive sell pitch here when the evidence doesn't back you up. Cora is 6% down right now. Did Dan cause that also?

I don't mind as I've just topped up again. To get back to where we were (30.5p) is 15% up from here. Easy money.

Rickylfc5 - You can only imagine the increased costs involved due to covid in West Africa. The costs for my event company in the UK has increased significantly (along with risk). You have to expect the same for HUM in this situation.

One aspect that I think is all important is cost of security during this period. I'd hope HUM has significantly increased the security at Yan especially when they've announced to the world that they're sitting on $11million of gold in the court yard. You've seen the looting in America. There's no reason why we could not be in the same situation. Security needs to be doubled/ tripled during this period.
That's only one aspect of the costs that I'd guess would go up. I'm just glad that we have been able to mine uninterrupted during this period. The majority of mines around the world have not had this luxury.

I really don't believe the market is reacting that badly to this news. The seller who has been around for the last month is still around. There's not been a huge revolt to this news. The usual seller is just happy to accept a lower price/ profit. Most people sell on news because of the volume of interest in the share and this is happening here.

This changes instantly once HUM announce the future plans/ strategy of the company. An announcement on a divi changes this instantly! Combine this with being net cash positive and an average/good Q2 and this flies.

I hear you jwhitw!

I'm still looking forward to see what they announce with Cora in terms of a possible takeoff agreement (or something else?). If that happens then surely the divi route the only option yet..

I'm also in Cora so admittingly it's a win win.

Dropinmonkey. Just sell up and move on. It's the same broken record again and again.

Will ii's not see a net debt positive gold mine going into a gold bull run that 'might' focus on dividends rather than a highly risky exploration play in an untested country?
I sold out of Solg to heavily invest here because I will hopefully see short-term upside to this gold bull run and not a high costing mine in Liberia that might be economical and up and running in 3 years time. I'm here for the gold now and that involves Mali.

Junior minors are the last to hit a big rise in gold bull run but they also make bigger rises. HUM's time will come and it starts once we announce we are net debt positive and it's explained what we will be doing with the money.
If we announced today that we were spending this money ourselves I can assure you I would be looking to sell. Dugbe has been a back of the queue project for years, now it's a low risk project moving forward.
We're not spending money on Dugbe, so what are we spending it on? Cora/ M&A? Divi or buyback? Surely any of these options are better than Dugbe and will move our SP in the short term once announced?

Dugbe has not been mentioned on this board for bloody years. It's been forgotten about yet it's suddenly a crappy deal where we lose all the upside?
Dugbe moves to the next stage without our shares getting diluted. Check.
We can now concentrate on how HUM is going to spend the $35million it is about to have in the bank/ assets by the end of this month.