Hummingbird Resources Share Discussion Threads

[fsjamescampbell] 06/8/2018 16:12

BT - POST 4636 - For a literary scholar you still don't know the difference between "Loser" and "Looser"

A person who's a failure is a "loser" often a “real loser.” If something is loosened, it becomes "looser."

[ukgeorge] 06/8/2018 16:01

Barrick Gold Corporation (ABX
PE ratio (TTM) 14.14

Rio Tinto plc (RIO)
PE ratio (TTM) 10.58

Glencore Plc (GLEN.L)
PE ratio (TTM) 7.84

Randgold Resources Limited
PE ratio (TTM) 19.79


Gold was around this level in december.

[new_buyer] 06/8/2018 16:00

what are those unanswered questions?

[redtrend] 06/8/2018 15:54

Do they? Do the 3 biggest mining companies in the world (Glencore, BHP and Rio), all diversified incl. for precious metals, have a lower multiple/ discount compared to the 3 biggest gold miners (Barrick, Newmont & Ashanti)? I honestly don't know but I assume if you make a statement like that you do?

As for 52 week lows, what else is at a 52 low? Yep Gold.

But it's all Bunker Hill...

[borderterrier1] 06/8/2018 15:42

new_buyer. Please read some of the comments on the LSE forum. There are only two staunch supporters on there now, Darola and of course Fsj. The Bod are unconcerned about the share price With half a million annual salaries, why would they be? But IMO there are lots of unanswered questions here now. For a company with such great fundamentals, fabulous track record etc. why does the sell off continue?

[new_buyer] 06/8/2018 15:25

Why would I bother answering your question when you have never answered anyone else’s? If you think this malaise is just HUM specific you need to go look at other gold miners and how there SP’s have performed over the last 6 months. No doubt an element linked to BOD performance, BH and comms but more macro elements affecting this too.

[ukgeorge] 06/8/2018 15:23

I don't know maybe it is the 52 week low for the share price that is causing concern.

Yes $1.5M is a relatively small amount but it is firstly a precedent and secondly if the BH project is deemed as a good investment the costs will be much higher. Now if it is deemed a good investment, how is this going to be structured? HUM takes all the risk lends BH cash in a debt agreement? Hum takes BH over ? A JV agreement? Not to mention that it is a complete tangent to a gold company.

What is more the zinc market and prices have peaked and are now looking set to decline for the next few years.

Darola, Dear Burt are you about to make a bid for BH?

Sure I'll tell you the answer to that and be prosecuted for disclosing insider information.

If it sounds to good to be true in generally is.

Yes I am being negative, but I have followed these for 2 years and think that they should stick to the script.

Gold mining companies command a different valuation to diversified mining companies usually higher.

[borderterrier1] 06/8/2018 14:51

new_buyer. In other words, with all the profit that is being generated and all the good things that are being reported, the share price is going backwards. IYO what would move it?

[borderterrier1] 06/8/2018 14:48

new_buyer Just here.

[new_buyer] 06/8/2018 14:24

Just here or are other goldies in a similar position?

[borderterrier1] 06/8/2018 13:35

new_buyer Maybe it does. But what I really don't get here is that after two years and lots of "good news" this share price is going backwards. What can possibly lift it now?

[chipperfrd] 06/8/2018 12:55

I really don't understand why people are getting so uptight about the insignificant involvement with BH. It makes perfect sense to keep that particular show on the road until full DD can be undertaken and the cash involved is a pittance when viewed against HUM's production margins going forward.

Personally, I have absolutely no objection to their deeper involvement in a base metal project if it offers significant ROCE over the longer term. And I trust the HUM management to weigh up precisely that opportunity now that they have kept it alive for a while longer.

Frankly, I would have preferred not in the US (because of the inordinate delays in permitting) but HUM must have selected it because of potential value. Their costs thus far are small and they may well walk away in time. So let's just give them the breathing space and see what comes out in the end.

Chip

[darola] 06/8/2018 11:54

UKG. Have you written to HUM? If you are that concerned you should contact them direct to seek assurances, or sell and move on to something you have more confidence in.

As business men, HUM will base any decision on BH around ROCE. If the Build, AISC and potential commodity sale costs stack up to a significant return, why wouldn’t HUM go ahead with this? We know from the AAG deal that if it doesn’t stack up HUM will walk away, but to stand up a week and a bits worth of profit to hold the driving seat on any discussion is hardly a folley. They’ve reviewed 100s of opportunities world wide and this has sparked enough interest to look closer - we do need to accept they know what they are doing - although I do concede comms could be stronger. I work in IT and wouldn’t dare to assume that I know more than the HUM BOD on what is a good deal.

[chipperfrd] 06/8/2018 11:53

Divmad,

Someone's 'bad news' may well be another's opportunity!

Great profits require good buy-in prices.

Look at HGM in late 2014. Thanks to US sanctions against Russia the share price dropped to 24p. I had started buying it at 35ish and had just kept buying the dips in accordance with my 'staircase' methodology. So 8 new positions later it finally bottomed out. But there was no way I could guess what price that was going to be!

The rest is history, so to speak! Excellent rise in the share price and really good dividends at an extremely low holding cost. I am still with it because of the fundamentals for both gold and HGM.
Chip

[chipperfrd] 06/8/2018 11:44

casual

'Sanguine' is my middle name!!

Collect stuff that I want to own.
Avoid all margin trading.
Patience.
Look to take advantage when price drops.
Don't be greedy and therefore take cash back when positions reach target profit.
Stick to fundamentals.
In general, go against the crowd.

CEY was a good case in point. Originally bought at c. 7p in early 2000's. Took good profits in 2009/10. Bought back in on the big price crash to c. 27p. Then started to work positions which led to the creation of the 'staircase' concept and spreadsheet design. Eventually reached 0p holding cost in 2016/17. However, I felt the fundamentals had changed so closed out totally in Autumn 2017. Have started buying the odd position back now and will keep it going in the 'staircase'.
Chip

[casual47] 06/8/2018 11:42

Div, the answer to that problem is to have a portfolio, I guess.

[divmad] 06/8/2018 11:34

The bummer is when you apply a zig zag system like this, and overnight bad news is released and the share price gaps down big time. Eh imm a few months back, establishing an entirely new trading range divorced from the previous zig zag pattern.

[casual47] 06/8/2018 11:14

Chip, sounds like a good plan re. the free shares.

Have begun to move in that direction too. Especially for sectors like mining where the swings are wild but usually within a range (e.g. CEY 110-180). The advantage of doing it on shares you want to own is that you can be sanguine about a paper-loss....as long as the fundamentals hold and you have a reasonable expectation of the share's ability to bounce back, of course.

[chipperfrd] 06/8/2018 10:56

casual47,

I use the 'staircase' to accumulate shares that I want to own. I usually take a multi-year view so I normally get many zig-zags along the way and therefore a fairly constant cash recycling with additional 'free' shares.

I don't consider that I can accurately 'time the market', so I have no wish to risk closing out and possibly crystalizing some position losses. And in any case, in my view, I need to be buying on dips and not selling. The exact opposite of what I should be doing!

I appreciate it is not the way that many might wish to play the market but it is a methodical system that automatically prompts me to buy and sell without any emotion getting in the way. And it has worked pretty well for me.

Chip

[ukgeorge] 06/8/2018 10:41

Well I personally think that hummingbirds transition from a junior gold miner to an investment vehicle over the last two months has had an affect on the share price.

What other rabbits will be coming out the hat??

[redtrend] 06/8/2018 10:09

For now Bunker Hill is immaterial to the HUM share price - it's a $1.5m convertible loan!

Bizarrely I tend to think it may have more to do with the gold sentiment being rock bottom, going from $1,350 down to $1,200.

[casual47] 06/8/2018 10:06

Chip, re. your zig-zag system. What's the advantage of leaving the free shares versus selling out completely and using the whole sum to buy back in? Is it a hedge of sorts?

[ukgeorge] 06/8/2018 09:54

Yeah the constant slide in the share price really is showing how that asset is being valued.