Hambledon Mining Share Discussion Threads

[loppylugs] 28/10/2013 18:18

Anyone any thoughts as to why the recent large 'buy' trades (e.g.,7m at close today)have failed to be reflected in the sp?

[its a worry] 25/10/2013 19:47

Thanks for that dofmeister .

[sportsauto] 24/10/2013 12:13

when is the next production update due? tia

[lfdkmp] 23/10/2013 07:59

Yes HMB is starting to look less flaky.

[aaaaar] 23/10/2013 07:57

Another step forward or so it would seem.

[dofmeister] 21/10/2013 19:53

Deloitte - all in mind with full future FTSE listing.

[loppylugs] 21/10/2013 15:15

Interesting article re gold on rt.com - find under 'Op-Edge' heading.

[vish65] 21/10/2013 13:09

... no doubt the deposit is exceeding expectations on an economic basis (not!)

[almost] 21/10/2013 11:22

Venmyn Deloitte!
All very grown-up, not like the kiddies who were running this before

[loppylugs] 11/10/2013 09:24

Thank you for the positive reaction to a post that was meant to be largely objective.
There is no doubt that this has been a 'dog' of a share and a lot of investors are losing money - some substantially so.
However,the facts over the last 11-months indicates far better managemenmt of the Company as a whole and a board who know what they are doing and are good at it.
Whilst it is possible to speculate about sub-plots and schemes to rob existing p.i's, there is to date no evidence to support such suppositions.
There are definitely uncertainties about the future of HMB - the price of gold being one. But, until such time as evidence emerges to suggest that the new management team is not 'playing with a straight bat', it would be prudent to at least give them a chance. Everything they have reported so far has been positive, there is a good possibility that future news may continue in a similar vein.
E&OE.

[dofmeister] 11/10/2013 07:07

Well put loppylugs.

[lfdkmp] 10/10/2013 23:08

loppylugs

Thanks. One of the better posts to have appeared here for a while. Considered and well described.

Not everyone will agree,of course; the new majority shareholders may have hugely dilutive agendas, and may be embarking on an outrageous sleight of hand....(I'm still wondering just how cosy the Assaubayev relationship is with Hydrogeology).

But there is just a chance that after so many years of disappointment, frustration and most importantly capital erosion, the new crew may have a plan and an ability to deliver.

I've lost a lot, and I mean a lot, on this share. I'm sticking around in hope of a recovery but also now through a sense of morbid fascination.

[chipperfrd] 10/10/2013 22:50

Well put Loppylugs, that's pretty much how I see it as well!

[loppylugs] 10/10/2013 20:51

Random observations -
1. The benefits of an London (AIM) listing for HMB would appear to considerably outweigh the drawbacks - both internally within KZ and from a business/financial perspective. Had the current major shareholder(s) wished to merely own and operate a private gold field, they could have saved a lot of time and expence and merely brought HMB outright. Furthermore, bearing in mind the dire position the Company was in this time last year, they could have waited a few months and prossibly picked up the Company from the administrators.
2. The fact that a conversion price of 3p has been set appears to say something about the approach of the existing board towards p.i's. A conversion price of 1.5p could have been set; which would have resulted in twice as many new shares being issued.
3. Conversion is likely to take place sooner rather than later, thereby helping with the breach of covanant problem with the ERBD in relation to debt-to-equity ratio.
4. Dilution of of shares has taken place, but not to fund existing operations as has occurred in the past. Rather, this dilution is to fund the purchase of a considerable asset with good grade ratios. In addition, this asset is not 90-miles away as with Akmola, but immediately adjacent to the existing mining operation/infrastructure. So dilution, yes, but shareholders now own part of a much bigger pie and one with considerable potential going forward.
5. The existing management have made no secret of the fact that they intend to build the Company; both in/organicly. As acquisitions go, what better than a next-door field which will potentially assist with any application(s) to extend the existing mining licence(s).
6. The existing board have considerable mining experience and know what they are doing - as their management of operations to date have shown. Would be rather surprising if they have spent $27m on a mere whim. This purchase will have been well researched and planned.
7. The new management's stated intention is to build HMB into a considerable asset together with a 'main board' listing. This will require further funding/debt. However, as the size and scope of the enterprise grows then so should the associated share price.
E&OE.

[chestnuts] 09/10/2013 18:38

Chip

As i posted above , you dont consider preferential shares as dilution, but you must see more dilution coming to finance the new mine, and this to me is going to dilute the shares even further,

[chipperfrd] 09/10/2013 10:00

grbaker

Yes, I did notice!

The first paragraph is perfectly reasonable. If they do actually have a large, economic, resource adjacent to Seki they will clearly need to expand operations to a much larger scale - and it will all need financing.

The EBRD loan conditions has now appeared on a number of announcements. It is correct that they should keep the market informed regarding the technical breach of the covenants. It remains to be seen if the EBRD will actually demand their $10m back in advance of the agreed terms. So far they haven't.

I assume that if that were to occur then there might well be another convertible loan set up by AR to replace it.
Chip

[grbaker] 09/10/2013 09:44

I'm not sure if anybody spotted this at the bottom of that last RNS, under the 'Key Risks' section:

"
etc.

Financing

Initially, Hambledon intends to utilise its existing mining fleet and processing facilities to commence small-scale production at the Karasuyskoye Ore Fields. However, further investment will be required by the Company in order to increase production to commercial levels and this investment may require further equity or debt funding which may or may not be forthcoming.

Technical breach of EBRD loan conditions

In 2012, two of the Group's subsidiary companies entered into a loan agreement for an amount of $10,000,000 with the EBRD. Under the terms of the loan, the Group is required to comply with a number of financial and non-financial covenants. As at 31 December 2012, the Group was in breach of its debt to equity covenant and an application for a waiver has been made. Although no waiver has yet been received, the Directors remain in active dialogue with EBRD regarding the loan and a potential waiver, including the effect of the Convertible Loan Notes. In the event of a waiver not being obtained, the EBRD may, at its option, by notice to the borrowers declare all, or any portion, of the principal and accrued interest on the loan to be either due and payable on demand, or payable without any further notice.

etc.
"


Both of those entries look a bit worrying... although, on the face of it - and excluding the possibility that the company might be taken private at some point (which has always been a risk since the new guys took over, as far as I can see) - the RNS seems like good news to me.

P.S. In the interests of full disclosure, I don't hold any shares/position here (but I have done in the past, so pop in every so often to see what's happening).

GLA.

[chestnuts] 07/10/2013 17:21

Chip

You should ask what can they get out of it by delisting, well it means they have saved £8m by not buying out right control while listed, and once delisting occurs its a wipe out for those share holders holding, which in my opinion could occur.

[chipperfrd] 07/10/2013 15:48

sloppyg,

AR originally stated that their ambition was to obtain a full listing on the LSE - which appeared quite optimistic at the time.

As they are the ones pumping in all the cash so far one has to question quite what they would gain by taking 100% of the company. If they were private they would, of course, get all the profits but they would not achieve a capital gain without selling the company.

Whereas, if they can turn the operations around and begin to generate positive cashflow, and if they do actually have a 9m oz economic deposit adjacent to their property and current mill, then they have a real opportunity to build company value via the markets.

They would then be in a position to sell some of their shares & convertibles to a growing institutional base and therefore recoup some or all of their investment capital. That makes far more sense to me than them taking the company private.

But first they have to turn HMB around (which they do appear to be doing) and then we also need to see the investment case for Karasuyskoe. Frankly, if they do end up with c. 11m oz of gold plus some silver, and can achieve positive cashflow from the underground operation, then the current market cap is going to look pretty silly!
Chip

[sloppyg] 07/10/2013 15:16

I must admit it does all appear somewhat convenient that the consideration for the transaction is just enough to tip the combined holdings over the 75% holding threshold; thereby facilitating the ease of any de-lisiting.

If they can readily get their hands on the sort of cash sums banded around here then one has to question what benefit they get out of an AIM lisitng for 250k per year.

Nevertheless may be trading opportunites in the aftermath of conversion and before any possible de-listing so holding to see how plays out; although a wipe out has to be considered now imo.

[aaaaar] 07/10/2013 08:22

Common sense?

Nutty in Novemeber 2009 you predicted HMB to hit 35p and gold to over $3500 within 5 months all based on Mayan predictions!

[phillis] 07/10/2013 07:59

chip
please ban this nutter
anyone who wants to read his drivel can use the other thread
democracy is fine - up to a point