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Real-Time news about Hambledon Mng (London Stock Exchange): 0 recent articles
|loppylugs: 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.
|rhotoid: The funding for this is at a big premium to the present share price it's not dilutive, as chipperford said if they were wanting to delist they could have done that long ago.
Compare to the last hideous bunch this management seems to be acting in good faith and at least achieving something, my only hope is that they ensure this doesn't detract from the success of the productive side and that that is given due prominence in the months to come.|
|saywellxxx: I agree with chip, one cannot generalise.
Each of us has his/her own trading strategy whether that be on technicals, fundamentals, short term, long term, or any combination thereof.
There are those that buy on the rise and there are those that buy on the fall, there are those that sell on the rise and those that sell on the fall.
There are, however, some certainties, which I would defy anyone to argue against, when it comes to these boards;
1. Those that claim they know a share price is definitely going to go up or down should be treated with extreme caution.
2. Those that take great pleasure (at the expense of holders) in a share price demise should be treated with extreme caution.
3. Those who become wildly over-enthusiastic about a share price rise should be treated (etc.)
and a final one (my view only)
4. People like chip are few and far between and should be encouraged to share their thoughts and wisdom.|
|troc1958: Dont know how HMB share price will pan out in future. African Resources must believe that 2p is a fair price to pay. Like them and Chip, I believe that HMB has upside potential. Consequently I decided to "assign" 60% of my shares @ 2p, wait until the deal was "unconditional" (which according to recent RNS' it now is), then buy back an equivalent number to my "assigned" shares in the market at a price substantially lower than 2p. (i.e. avg 1.67p)
Obviously there are risks that the deal falls through and all "assigned" shares revert back to their original owners. I will thus have increased my shareholding by 60%. Overall a gamble worth taking IMO.
|chestnuts: Ty medic
Any one know how long his divorce going, on , well i dont, but lets say he as been trying to sell his 9% for the last 12 months and he found a buyer when the share price was 1.8p , which was just a few months ago, now the share price as fallen below this price, so that would explain the share price|
"Interesting that you say the price of gold "makes little difference~" to a gold producer!"
I'm not saying it makes no difference to any and every gold producer, and of course even for HMB a higher gold price is preferable to a lower one... it's just the rate of screw ups here outweighs the rise in gold price. 2 steps forward 3 steps back kind of thing.
As you say POG is up over 10% in the last few weeks, but is HMB up over 10%? No, it's not even up (approx 25% down since August's peak). That's my point. And that has been the case for the last few years, decent %age increases in POG have not been enough to generate equivalent and sustained increases in the HMB share price.
Plus the arguments of "fundamentals are great" "its oversold" "there's not a cheaper producer on AIM" etc, have been being made for the 6 years or so I've been here, but yet it still gets "cheaper". So I can only conclude, it wasn't oversold then, the fundamentals weren't as good as we thought, and even the "cheapest" producer on AIM can get cheaper. Obviously all holders hope it will buck the trend, but it's much riskier than most of the bulls make out.
The way I see it, the company is just one more screw up away from having no option but to dilute shareholders into oblivion. And given the track record, what's the chance of them not having another major accident/plant disruption? Maybe that's a punt worth taking, maybe not, but it's more a gamble than an investment. So be prepared to lose what you have invested here as on balance there is a fair chance of that.
Edit. But good luck of course with your decision!|
|yangou: REASONS TO BE CHEARFULL
30th May 2012
Analyst: Dr. Michael Green
Tel: 020 7562 3370
Hambledon Mining Developing a sustainable underground operation. Speculative Buy at 1.675p with a 7.5p target price
Share Price 1.675p
Spread 1.65p - 1.7p
Total no of Shares 979.72 million
Market Cap £16.41 million
12 Month Range 1.6p - 5.625p
Contact Charles Zorab, Corporate Development - 020 7233 1462
Final results from Kazakhstan based miner Hambledon Mining have just been announced for 2011 which cover a year when underground mining began at its Sekisovskoye mine. Development work is creating a sustainable operation with a potentially long mine life which looks likely to transform the company over the coming years. In the year to 31st December 2011, poured gold was 8% lower at 20,851 ounces due to a falling grade and higher stripping ratio as the open pit comes to the end of its economic life. Problems at tailing dam 3 resulted in a charge of $7.8 million resulting in a loss after taxation from continuing operations in 2011 of $9.4 million. The spill from this tailings dam has not caused any long-term pollution but seems to have taken investors' attention away from the obvious progress that the company has made in commencing underground mining operations in November 2011. Capital expenditure increased years on year from $4.9 million to $14.4 million as the mine goes underground. However, the company ended the year with cash of $1.8 million and with a loan facility of $2 million still available to use, plus a European Bank of Reconstruction and Development (EBRD) loan of $15 million being completed. It does go to show the improving status of Hambledon in that a lender and investor of the stature of EBRD is providing financial backing.
Development work, coupled with mining over the next four years at Sekisovskoye should allow annual gold production to climb from 20,851 ounces per annum in 2011 to 100,000 ounces. The board is seeking to expand the company's gold interests in Kazakhstan and make use of the team's skills in not only mining in the country but also dealing with the associated red tape. In September 2011, the board announced an agreement to acquire 100% interest in Akmola Gold which owns two precious metals projects in central Kazakhstan with combined resources of 440,000 ounces of gold plus silver and other metals. So far no funds have been advanced to the vendors as this acquisition has not yet been completed and the expected completion date of 30 March 2012 has been passed because certain permits and waivers from the Kazakhstan authorities have not yet been received and so the conditions cannot be met. The waters have been muddied by the state mining company Tau-Ken Samruk notifying the company that it is seeking to exercise it's pre-emption rights in Akmola Gold. This has disappointed the market which has hit the share price. Discussions are continuing with the vendors of Akmola Gold to amend the terms of the agreement given the delay to the acquisition completion date; and at the time the final results were announced, it was reported that this acquisition remains conditional upon certain approvals from the Government of Kazakhstan.
Sekisovskoye continues to perform satisfactorily, with the mineral processing plant operating at record levels of throughput in 2011 and such progress has continued into the current year. The 1Q 2012 production update brought news that year-on-year gold production in the first quarter increased by 9.4% with 4,870 ounces of gold recovered following an 18% increase in the mined tonnage which has been helped by the winterisation programme that was completed during 2011. Certainly 1Q 2012 demonstrated encouraging performance and reliability in what is always a challenging quarter due to the severe weather conditions. The mill is benefiting from the refurbishment of the infrastructure last year. At the same time the open pit mine and the attendant machinery fleet was upgraded which has allowed for the removal of considerable waste and production to increase. The construction of Tailings Dam 4 and changes to effluent deposition are well advanced. Despite these advances the operations continue to be high cost due to processing low grade ores in 2011 which resulted from having to remove significant quantities of excess waste in the open pit. The beginning of underground mining marks what will be a 3 year transition from open pit to underground mining which will see the mining of higher grade material which should allow gold production expected to climb to 100,000 ounces per annum. The board believe that the expansion of the underground mine in 2012 should see Hambledon attain its target of increasing gold production.
The development of Hambledon's gold mining interests in Kazakhstan is a compelling story that has already netted over £30 million in placings from well-known institutions, mostly at significantly higher levels to the current share price. Despite a reasonably buoyant gold price Hambledon is capitalised at such a low level due to disappointing the market with production figures on a number of occasions. Gold production began at the Sekisovskoye open pit in late 2007 and to date only 75,000 ounces have been mined from a large deposit which has a JORC resource totalling 1.93 million ounces. Underground mining has already begun ahead of schedule and although gold production is modest it is expected to climb steadily throughout 2012. Looking ahead the board plan that the rate of gold production from the underground mine will be targeted to hit 100,000 ounces a year by 2017. Meanwhile, the open pit is planned to continue production at a minimum 22,000 ounces a year until 3Q 2014; but during this period its cash flow will provide a lot of the capital expenditure necessary to develop the underground mine. Overall, this means production from Sekisovskoye could rise annually from 21,000 ounces in 2011 to 26,000 ounces in 2012 and 45,000 ounces in 2014 on the way to hitting the 100,000 mark in 2017.
Sekisovskoye is well located, being just 40 kilometres away from the regional capital, and has an easy metallurgy along with an experienced local management. However, the mine has historically suffered from high operating costs. Certainly the arrival of Tim Daffen as CEO in 2010 brought in a man with the expertise to not only bring the new underground mine into production but also to reduce operating costs. Tim saw that too much gold was going to the tailings and that production was being hampered by power shortages, a lack of spares and key elements in the mill being of poor quality. Furthermore, operating in temperatures sometimes as low as minus 40ºC, the operation needed further protection against the elements to remain efficient. In March 2011, £9.1 million was raised at 4p to fund this raft of measures which were set to reduce the operating cost by $120 an ounce down to $800 an ounce from surface mining. Further improvements in recoveries to 95% are targeted over the coming years which, when coupled with the full production underground, could led to operating costs per ounce being brought down to the $700-800 range.
The team at Hambledon are specialists in Kazakhstan. After so many years in the country, the management has first-hand experience of dealing with all the requirements and authorisations necessary to bring a mine into production. The board has sensibly played to their strengths in seeking to acquire Akmola Gold which wholly owns the Tellur and Stepok precious metals projects in central Kazakhstan. If this deal finally goes ahead, the Company will gain a combined resources of 440,000 ounces of gold plus silver. Tellur is a high grade underground gold mine which has the scope to become a 20,000 ounce per annum gold mine in 2014, while the ore could be trucked to Sekisovskoye for treatment in the company's existing plant. Stepok is an earlier stage project where a substantial drilling programme is planned ahead of a feasibility study. The resource here is equivalent to 300,000 ounces of gold to justify a one million tonne a year operation producing 30,000 ounces of gold and 40,000 ounces of silver annually, but the team believes there may be scope for 60,000 ounces gold per annum. Moving ahead with more than one mining operation would bring a diversification of risk and clearly demonstrate to investors that Hambledon has real growth prospects and may propel production not just to 100,000 ounces but far higher in the medium to long term.
Sekisovskoye is a project where the existing operation has only just scratched the surface of a tremendous resource which is now being beginning to be mined on a larger scale by underground methods. Our analysis suggests a Net Present Value of $117.2 million (£73.2 million) for the Sekisovskoye which equates to 7.5p per share based on the current issued share capital of 979.2 million shares. It has to be pointed out that Akmola Gold with its Tellur and Stepok precious metals projects is a prize worth fighting for which could add additional production over future years; but at this stage it has been left out of the analysis. We recommend the shares as a Speculative Buy at 1.675p with a target price of 7.5p.
Financial record & forecasts
Year to 30th Dec Sales ($000) Pre-tax Profit ($000) Earnings per share (c) Price Earnings Ratio (x) Dividend (p) Yield (%)
2009A £12,810 (£189) 0.01p 180 0 0.0
2010A 29,053 3,318 0.57c 5.4 0 0.0
2011A 33,325 (10,579) (1.15c) NA 0 0.0
2012E 39,000 (1,500) (0.15c) NA 0 0.0
Source: Growth Equities & Company Research|
|1nf3rn0: Goldenhorse, good luck with that prediction in #14387! (35p by May... 2017?) Many have tried and failed to guess correctly where the HMB share price will go next.
But stating "you can predict exactly what is going to happen next here" and then pasting that graph is a bit ramptastic for my liking. Although you won't find many other regulars disagreeing with your graph as they only criticise negative posts. Anything massively bullish is lapped up.|
|barryrog: thats a fair post but my point is that the HMB share price is at rock bottom and this seems to be based on their past track record of problems/poor performance.
certainly after the leak was dealt with the news has since been pretty positive. they have acquired the funds to meet the deadline on the new gold resource acquisition, they have received significant financial backing from the EBRD after 6 months due diligence and the early feedback from the underground mine is that the findings are positive and in many cases exceeds expectations.
apart from the history, the low share price seems unwarranted.
|littledavesab: Believe it or not I got help up and arrived too late for the HMB presentation (they went first) and ended up at the back where I spotted Mr Zorab !!!! Managed to get a seat later and won a bottle of Champers. Also won something else today so something is going well.
Did manage to speak to TD afterwards. Impression is that he is pleased with the way things are progressing. Think he understands that investors are disappointed with performace and continued fund raisings. Latest fund part of that due to tailing dam episode and part due to needing some cash to complete underground development.
TD says he has heard the message about needing to deliver on expectations but also mentioned need to set realistic middle targets, not stupidly low but not excessively high. Appears to be thick skinned, confident in his own views and ambitious - most/all CEO's would (need to be) of course.
TD also said he views HMB as his pension and thinks the bottom is probably in. Good luck even I am not THAT optomistic anymore in the short term, but I thought the bottom was in before the tailings prob. Mental note best check out his stock options...
Also got the impression IF any more juicy new nuggets pop up in Kaz then he wouldnt want to turn them down, which while understandable, could be a double edged sword if ends up with yet more dilution down the road (TD remember your pension!). Apparently they do get offers every so often being one of the few/only Western Co's with people on the ground in Kaz. Some new hires coming soon.
Re HMB share price following presentation there was also talk of the Bernanke speech yesterday knocking silver price - which if true could explain wider risk aversion to companies such as HMB.
Edit - I see one hire announced. TD did say one of his biggest problems had just been solved and hinted at two new hires. With the EBRD money they now have a substantial sum to spend hence the need for more people on the ground.|
Hambledon Mining share price data is direct from the London Stock Exchange