As of the interim report for June 2024, Hummingbird Resources PLC (HUM) had total assets valued at $610.2 million. Their net liabilities, including borrowings and other financial obligations, amounted to significant sums, including $153.9 million in total borrowings and a net debt of $153.5 million. The company's net cash was reported at $0.4 million |
 It's a regular occurrence on AIM
Crooked company directors aiming to exploit a company and its shareholders often target the Alternative Investment Market (AIM) instead of the Main Market for several reasons:
1. Lighter Regulatory Framework
The AIM operates under a more relaxed set of rules compared to the Main Market, which is governed by the UK Listing Authority's Premium Listing Standards.
AIM companies face fewer requirements for transparency, corporate governance, and financial disclosures, making it easier for dishonest directors to hide questionable activities.
2. Lower Initial and Ongoing Costs
Listing on AIM is cheaper and faster than on the Main Market.
This makes AIM attractive to smaller companies, but it also appeals to directors with bad intentions, as they can avoid the higher costs of Main Market compliance while still raising funds.
3. Weaker Oversight
AIM-listed companies are not required to meet the same strict standards for audits, independent board members, or shareholder rights.
This lack of scrutiny allows unscrupulous directors to manipulate financial statements or pursue self-serving deals more easily.
4. Easier Access to Capital
AIM offers relatively easy access to investors, especially retail investors who might not have the expertise to identify red flags.
Unscrupulous directors can use this to raise significant funds while planning to misuse or misappropriate them.
5. Limited Investor Protections
AIM provides fewer protections for shareholders compared to the Main Market, leaving investors more vulnerable to mismanagement or fraud.
For example, AIM companies can issue shares or undertake reverse takeovers with less shareholder consultation, facilitating dilution or questionable transactions.
6. Higher Risk Appetite
AIM is marketed as a platform for growth-oriented, higher-risk companies, which attracts speculative investors who may overlook governance issues.
Directors can exploit this "high risk, high reward" narrative to distract from their fraudulent activities.
In summary, the AIM's reduced regulatory burden and oversight, combined with its focus on smaller, higher-risk companies, make it an easier and more fertile ground for crooked directors looking to exploit both the company and its shareholders. |
Yep, pants down, bend over shareholders, well and truly shafted. Come on AIM, do your job. |
Gold Price Impact on Hummingbird Resources (HUM)
Annual Gold Production: 150,000 ounces.
Current Gold Price: $2,600/oz.
Annual Revenue:
150
,
000
oz
×
2
,
600
USD/oz
=
390
,
000
,
000
USD
150,000oz×2,600USD/oz=390,000,000USD
Profit Margin Analysis
Operating Cost Estimate: $1,300/oz.
Net Profit Per Ounce:
2
,
600
−
1
,
300
=
1
,
300
USD
2,600−1,300=1,300USD
Total Net Profit:
150
,
000
oz
×
1
,
300
USD/oz
=
195
,
000
,
000
USD/year
150,000oz×1,300USD/oz=195,000,000USD/year
Nioko’s Cost to Acquire HUM
Share Purchase Price: £12.6 million ($17.5 million).
Loan to HUM: $35.6 million.
Total Cost:
17.5
M
+
35.6
M
=
53.1
M USD
17.5M+35.6M=53.1M USD
Return on Investment (ROI) for Nioko
Annual Profit After Acquisition: $195 million.
Time to Recover Investment:
53.1
M USD
195
M USD/year
≈
3.3
months
195M USD/year
53.1M USD
≈3.3months
HUM Shareholders’ Loss
HUM shareholders sold the remaining 58.19% stake to Nioko for £12.6 million, valuing the company at just £21.7 million.
Actual Value (Based on Net Profit Potential):
With $195 million annual profit, HUM’s fair valuation could exceed $600 million (£470 million) at a modest P/E ratio of 3.
Summary: Who Benefited?
Nioko Resources (and Idrissa Nassa):
Acquired control of HUM for $53.1 million.
Gains a gold mining company generating $195 million in annual profit, representing a return of over 350% in under a year.
HUM Shareholders:
Sold at a massively undervalued price.
Missed out on the benefits of rising gold prices and operational recovery.
This deal heavily favors Nioko Resources and Idrissa Nassa, leaving HUM shareholders with minimal returns while Nioko profits immensely from undervalued assets. |
Mr Idrissa Nassa is the man who will end up with the gold mines.
Nioko Resources is not a mining company. It is an investment vehicle and a subsidiary of Coris Invest Group (CIG), which is owned by Burkinabe businessman Idrissa Nassa. Nioko Resources primarily focuses on acquiring strategic stakes in companies within the mining sector rather than engaging in direct mining operations.
Key Points About Nioko Resources:
Focus on Investments:
Nioko Resources specializes in acquiring mining assets and shares in mining companies.
It is part of a broader strategy to invest in resource-related businesses, leveraging financial and operational opportunities in the sector.
Recent Activities:
Hummingbird Resources: Nioko has been involved in acquiring a controlling interest in HUM, a gold mining company operating in Mali and Guinea.
Orezone Gold Corporation: Nioko acquired a 19.99% stake in this Canadian mining company, reinforcing its focus on gold mining investments.
Parent Company Support:
Nioko is backed by Coris Bank International, which provides financial leverage for its acquisitions.
Comparison to Mining Companies
Unlike a mining company, which engages in exploration, extraction, and production, Nioko Resources operates as an investment and holding entity. Its role is to provide financial backing, strategic oversight, and capital to its mining-focused subsidiaries or investments.
In Relation to HUM
Nioko's involvement with Hummingbird Resources aligns with its investment strategy but does not involve direct management or mining operations. Instead, it is positioning itself to benefit from the future profitability of HUM’s gold assets. |
Disturbingly, on the latest update, I'm surprised that FD Tom Hill is still there? Thought he might have taken "early retirement"? |
So what happened to Plathunter did he retire? |
Please lets not also forget that many thousands "invested" here as a direct result of the over 70 page dossier prepared by architect fsjamescampbell (AKA Frank Smith) from Rochdale.
We all know now that Mr Campbells report was not quote:- "100% true and factual" and he bailed out shortly after writing it. Wouldn't that be considered to be deliberate pump and dump tactics, designed to entice investors and isn't that ILLEGAL? If not, why not? |
Hi PATT!
Happy Christmas to you.
One simple explanation is for what has happened here is that the gold has simply been "lost" somewhere along the way.
Another one is that the original mineral resource estimate at Kouroussa was catastrophically wrong, and that the grades estimated were never actually there. This can happen, and I always had a funny feeling about Kouroussa - very high strip ratio, but good grades in small patches - it never did make much sense as a deposit.
Anyway, here we are. Another AIM miner soon to bite the dust. Unless AIM regulation improves quickly the whole market will follow with it. We really need to see directors being sued for every penny they have and going to jail for long prison terms. Only that will restore investor confidence. |
purchaseatthetop As the info. trader 465 put on here some time ago, I suspect you are correct with your assumption, and I think the ongoing investigation will prove that. And I did alert the shareholders here to this years ago.
Tiger. Hum were not registered with the FCA. The investigation here is through AIM. |
TBTT. I have not followed HUM but the RNS today looks like they have simply had the gold produced stolen! To deliver less than 50% of the forecast gold grade suggests that things are walking! |
Thoughts:
1. How HUM has been mismanaged (at the least) into this position is an absolute scandal. Dan Betts etc. need to hang their heads in shame. Hopefully, the FCA have enough gumption to work out what went wrong and to press charges if appropriate.
2. The RNS this morning is a clear warning to shareholders - vote for the deal or its administration. Given that HUM's new management will know how the voting is going (they can see the votes as they come in), and the implication must be that the vote is going against the deal (hence the RNS), this means that buying these shares at 2p in the hope of getting 2.7p is taking a big risk - way too big a risk in my view.
3. I'm a little bit puzzled why Coris group are offering this deal at all given HUM's blatant and ever-worsening insolvency. I can think of only two reasons: a. the mining licences are cancelled in the event of a bankruptcy; b. Coris Bank's balance sheet is not strong enough to stand the write down in the event of bankruptcy, and this is an "extend and pretend" situation. |
Bust and in the hands of private equity just one month after announcing commercial production. Deliberately? |
The only things they missed out of the trading statement were fire and brimstone and ten great plagues. It doesn't say much for Betts' management that Yanfolila has a negative value and Kouroussa is a basket case. The votes should go through now!! |
That chance has gone. This is a proper stitch up and thr RNS today is so transparent. Very sorry for the decent folks here. Frog |
2.7p now in deep jeopardy. |
what a trading update! make it sound as bleak as possible! Once in private hands the turnaround will be rapid me thinks! |
goldgeezer. Don't think Kenny is invested here but I guess you are? |
How much are you down here Kenny. It's very upsetting to see your losses all over the boards. Keep quiet if I was you. |
kennyp52 Even worse is Infinity888 who told us all proudly that he holds 2 MILLION shares (post14456) av. 15 p and that quote:-
"I have nicely averaged down in time. You are a psycho."
Guess what Infinity? The psycho was right. |
Plat Hunter’s last post ..
Plat Hunter - 07 Nov 2024 - 10:07:54 - 15434 of 15482 Hummingbird Resources (moderated) - HUM
Taking losses comes with experience chesty. you either have cut or trade your averages down to reduces your losses over time... The latter requires knowing how long you have and sticking to it religiously.
I do hope he is ok … sounds like he kept buying into this mess 🤷a94;️ |
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