Member Info for WLondonHunter

Looking at the top 10 movers in LSE today and good to see HMB there. Not a surprise, considering how undervalued this share has been and seens the price of gold. I can see some traders booking profits already today (a few sales). Not me, the fundamentals of this company are excellent, and compared to other similar companies in FSU countries the reserves of gold of HMB are being valued much cheaper by the market. We are just seeing a re-adjustment and revaluation of HMB. IMHO, this is continue to go up-too much proven gold to be ignored. Happy days for all of us to come

FACTS: -HMB is aiming to produce around 40K ounces of gold in 2012 (let's note the management of this company is more about under-promising and over-delivering) -Current price of gold is $1851 with rather bullish outlook from many international banks (for instance Standard Chartered talks about USD 5K and ounce) or well-known and successful Commodity investors (Jim Rogers, Marc Faber also talking about gold going much, much higher). -HMB's Current cost of production is USD 950 per ounce of gold (including tax, royalties, etc) My 2 IFs : -If the price of gold stays at, let's say, an average of USD1800 an ounce ( a very conservative estimate according to many as stated earlier); -and if HMB meets their target of 40K ounces of gold for 2012 (probably very realistic considering HMB's management cautious style, considering all the technological improvements made this year that have already led to massive increase in production, and also considering the underground mine is going to production in the next months), -total revenues for HMB will be USD 72 mill in 2012 , i.e. (40000 ounces X USD1800 dollars an ounce ). -Considering cost of producing isUSD 950 an ounce, total production costs would be 38mill USD in 2012. -Therefore HMB's total net profit for 2012 for its gold production (even excluding silver ) , would be: USD72 mill (revenues)-USD38 Mill (costs)= USD 34 mill. NET PROFIT OF USD 34 MILLION. Now, let's compare those USD 34 mill to our current market cap of just............ £38 mill (i.e USD 62 mill)That's a net profit for one year alone of more than half the value of the whole company!!!!! Maybe I am missing something here or maybe the devil is in those two IFs. It is up to you to decide...On my side, I can only think that we are a ridiculously cheap takeover target. Otherwise, they better start giving some rather lucrative dividends to the shareholders or buying more assets!!!!!! Any thoughts on the above-bears on HMB are also welcome- would be much appreciated. I wish everyone you the very best of luck !

Thanks for your answer. Will try to do my own calculations over the weekend as well... :D If anyone else has any other input on this, it would be greatly appreciated.

I will probably do my own maths over the weekend, but just in case...., has anyone tried to find out what is the level of profit HMB is currently generating considering current level of gold/silver prices, cost of production and actual estimated production levels? I wonder how that profit compares to current market cap...

Traders/investors are treating HMB like shares again,and price is going down again as the rest of shares in the stock market . My view is that even if the stock market goes down and gold bullion keeps going up, there will be a point-hopefully in the near future- where there will be a change of perception and shares like HMB will not be considered just shares, but "gold holding entities" and investors will put money into this as the potential upside will be even greater than bullion itself. This is a gold producing company, we have gold and the capacity to produce more gold in the next few years, that nowadays is excellent news. Just a bit more patience my dear HMB shareholders...

my dear HMB passengers because this baby is getting real speed...:DDDD

Finally breaking through previous resistance level...watch out this space, because HMB is going up!!:DDDD

And all those sells now? at 17 p and 20 p!!!

Is it finally the time for the small gold producers to sky rocket? I hope so!

That looks good news, but can't find the report on their site? Obviously a lot of what happens to this share depends on macro parameters (oil price, etc), but I like the acitivity I have seen in the last few weeks...any other views on this, anyone?

today £20K buy, which for this share is quite a lot...trends keeps stronger....what is going to happen here...?uhmm....

We are on the up again, very good volume of buys in the last few days, which is unusual at ANDES...this company has been focusing more and more on it's oil/gas assets recently, maybe starting to get the attention it requires? ....

I have heard from several sources recently, that basically we are in the second phase of a bull market of the gold. 1st phase is for gold bugs(early 2000s), 2nd phase is for institutional investors (we are currently on it) and the last phase is when everyone buys gold and then gold is meant to go parabolic. Apparently we have not entered into that phase yet, but if and when we do, it is gold mining stocks more than even physical gold that will sky rocket before the gold bubble busts and goes bear again. Good luck everyone. WLH

It all seems very quiet here. Does anyone have any thoughts on the recent news, i.e. exchange of debt for equity and in general about the company/share?

OK, with Gold and Silver reaching all time highs these days, it is time undervalued companies with proven reserves like HMB get their deserved attention... market sooner or later will come back to grips with this idea, and holders of companies producing real valuable assets (gold and silver) will benefit it!

You are welcome. The figures of production and expectation given didn't seem to be any new to me-I think you will find all that info on the website already or on that video interview that is being going around-quite naturally on the other hand. The big picture here is to aim the 100000 ounces production in the medium term, which is great. the big question from investors was, and then what?? Again, my view here is that if investors are here just to get 1000% in the next 6 months this is the wrong place. I will keep my holding here though. In an economic environment with money printing everywhere, huge debts burdening companies and countries alike, to find a company like HMB (debt free) producing real assets (gold/silver) totally unhedged (great upside in my opinion) it is a very good case.

FYI-I was at the presentation yesterday. I think the message they are giving is that after years of not focusing properly on the business(i.e. mineral extracting) the plan now is to be very hands on and just extract precious metals for the underground mine and sell it(on a weekly basis) and make money that way. After 2/3 years once they have a stronger cash position they will look at options, that could be being sold or buy other mine or whatever. Some of the investors there didn't like this type of answer for the medium/long term. My personal opinion is that this company is trying to become a sound, financially strong, productive one, and not trying to sell big dreams to anyone. I am invested here, and I will continue to keep my money for the medium term. It may not be give me several 100s % of profits, but at this moment of time(in the big current economic picture) companies like HMB, debt free and focus on a good business(gold/silver for obvious reasons) is a good investment to be. Again, this is just my personal opinion Incidentally, I understood some news would be coming from them in the next few days...

Two fairly big buys(relative to this share) in the last couple of days: 30-Jun-1115:25:2618.5050,000Buy* 17.0018.509,250 30-Jun-1115:25:1818.3850,000Buy* 17.0018.509,190 1-Jul-1112:12:3018.50100,000Buy* 17.5019.0018.50k I wonder if someone out there knows something?

I am also a holder of HMB, and I can understand this holding can be a bit frustrating. It looks such a good company, but so undervalued? I am going to hold on this one even if currently 10% down and I will still hold if it goes lower. This one is for the medium term, and having listened the interview with teh CEO and looked at accounts and prospects, I will not sell till at least next year if not later. Considering all the troubles in currency going on in Europe and USA, considering China continues to buy gold , considering all this, HMB must be a decent investment to be in!!

Someone is very keen to get rid of AEN shares...