Hummingbird Resources Share Discussion Threads

[darola] 08/2/2018 13:39

Why? AISC is based on 107 average production. Weekly costs will be pretty consistent - wages, diesel, 3rd party services etc, why would it cost more than £1.54m a week when not at full production?

[sleveen] 08/2/2018 13:05

Darola, once steady state production has been reached then the use of AISC will be appropriate. However, breakeven has not yet been declared so therefore costs must be exceeding revenue currently.

[westmoreland lad] 08/2/2018 12:57

for those not familiar with AISC --------> Use of the "all-in sustaining costs" (AISC) measure of gold production is on the rise, as it provides a more comprehensive look at costs than the traditional "cash cost" approach. The AISC measure, finalized in June and supported strongly by the World Gold Council, includes other expenses such as general office spending and capital used in mine development and production to create a benchmark of a company's operating efficiency. "The economics of gold mining have not been as well understood as they could be by a broad range of people including governments, communities and even employees,” said Terry Heymann of the WGC. Goldcorp was among the first to alter its reporting standards, doing so at the beginning of 2013. The company's 2013 cash costs were forecast at $525 to $575 per ounce, and all-in sustaining cash costs were $1,000 to $1,100. Earnings reports from some of the other big gold companies indicate an AISC of between $1,200 – $1,400/oz, the Financial Times reports. In some cases AISC has even crept up over $1,400. Barrick recently reported an AISC of $919, very much on the lower end of the AISC spectrum. Goldfields checked in at $1,280/oz and African Barrick was up high at $1,416/oz. Not all are in favour of the new measure, however. Randgold CEO Mark Bristow called the measure irrelevant, pointing out that companies could get away with reporting "positive margins between sales price per ounce of production…yet, because of writedowns or impairments, still register losses."

[darola] 08/2/2018 12:39

If our AISC on 107k a year average is $750, that equates to $1.54m a week in expenses/costs. So we'd need to be producing 1.2k oz a week to break even, or 60% productivity. As we are now above that I expect us to be cash positive.

[sleveen] 08/2/2018 12:15

UKG correct. During the ramp up phase the cost of production will be more than the revenue received. Thus being cash flow negative until breakeven is achieved. Thereafter cash flow positive.

[darola] 08/2/2018 12:11

That's why we use an AISC. The above figures are after costs. I'm still sure the bulk of recent spend is contract milestone payments - timed for the end of the build.

[ukgeorge] 08/2/2018 09:55

Producing gold is not free......The mine is likely still cash flow negative.

[croasdalelfc] 08/2/2018 09:51

FCF must be up to a run rate of $5m a month by now.132000/12 x 0.85 x 600 and rounded down to nearest million

[darola] 07/2/2018 21:00

Not enough to cover the balance of building a $100m mine. 7 weeks production is probably worth around $7m to $10m depending on how well ramp up has gone.

[charles clore] 07/2/2018 20:22

So would they not have sold any of their gold produced yet?

[darola] 07/2/2018 18:46

Contractors; wages and milestone payments probably....

[charles clore] 07/2/2018 18:21

Down to 30m dollars in the bank from 40m around start of production. I wonder where that 10m went?

[ukgeorge] 07/2/2018 18:13

Another positive was "have around $30M cash"Mr market is obviously waiting for commercial production and possibly a quarter of low cost production.Which although frustrating is understandable and does create a good opportunity to buy when the milestones are met. Time will tell.

[croasdalelfc] 07/2/2018 16:58

Bert says ramp up in production is all on track . Looking to pay down debt, increase LOM and purchase assets.? https://www.brrmedia.co.uk/broadcasts-embed/5a7aa7b5bdf74b02f4f73844/?popup=true?

[darola] 05/2/2018 22:58

"miners are very very cheap" htTps://investingnews.com/daily/resource-investing/precious-metals-investing/gold-investing/adrian-day-gold-price-top-stocks/

[scottishfield] 05/2/2018 08:21

tks Croasdalelfc

[croasdalelfc] 05/2/2018 08:02

http://hummingbirdresources.co.uk/_downloads/Hummingbird_Resources_Corporate_Presentation_Q1_2018.pdf

[casual47] 02/2/2018 14:59

Great, thx

[ukgeorge] 02/2/2018 14:54

An announcement of Commercial production is what we are waiting for. And for that to be declared the plant needs to run above 60% capacity for 60 days. so some time in March imo

[casual47] 02/2/2018 14:48

Apart from potentially some news on the occasion of Indaba or the president's visit, should we see anything else before the 2017 results in May? Currently still on sidelines but ready to pounce and buy in.

[ukgeorge] 02/2/2018 09:42

roll on commercial production :) The company are also presenting at Indaba in Cape Town next week.

[qs99] 02/2/2018 09:40

thanks croas.....think the seller may have cleared here as that is a decent bounce and holding today DYOR....let's see how the next week unfolds ahead of the president's formal opening of the mine etc....

[croasdalelfc] 01/2/2018 20:59

Cora looking to get indicative resources figures for two targets very close to Yanifolila

[croasdalelfc] 01/2/2018 20:42

Interview with Cora Gold on Voxmarkets today

[noirua] 01/2/2018 18:38

Beaufort Securities renewed their buy and forecast of 66p for HUM in January 2018: Http://www.hl.co.uk/shares/shares-search-results/h/hummingbird-resources-plc-ord-1p/broker-forecasts