Hummingbird Resources Share Discussion Threads

[avsome1968] 23/8/2019 07:52

H1-2019 financials out...

51,273 Ounces produced
H1 AISC 1135 (Q1-1297/Q2-998)
POG 1304
H1 margin 169/Oz
USD 8M net debt 43M
Cash USD 8M
Target net cash positive in 2020

Solid progress and our Q3 Ounces will be closer to 30,000 Ounces, the AISC nearer 900/Oz and the margin nearer 600/Oz 3.5 times EBITDA over Q2 and we will swing into profit at last in this quarter..

[laurence llewelyn binliner] 23/8/2019 07:49

H1-2019 financials out...

51,273 Ounces produced
H1 AISC 1135 (Q1-1297/Q2-998)
POG 1304
H1 margin 169/Oz
Net debt 43M
Cash USD 8M
USD 2M a month debt reduction
Target net cash positive in 2020

Q3 production will be closer to 30,000 Ounces
Q3 AISC nearer 900/Oz - Q4 nearer 850
Margin nearer c600/Oz
H2 EBITDA should be 3-4 times H1 and we will swing into profit this Q..

Solid progress at last..

[le0nard] 23/8/2019 07:21

Wakey wakey humburgers???

Are these what you expected?

[borderterrier1] 22/8/2019 13:18

I suspect Bert will be far more interested in his Chicken Chow Mein than bothering to address these legitimate questions from you guys. Don't forget over the last few years since "mine completion on time and on budget" they have all been raised before to no avail. Don't forget also that a gold mine is a hole in the ground with a liar at the top. Now perhaps you get my drift? Or rather, in this case, perhaps you don't.

[bo doodak] 22/8/2019 09:36

Here's a question, fsj, if you feel comfortable asking it, or a version of it

Would the company, should the exercising criteria not be met this year, and noting investors disquiet at the granting of 1p options, consider an increased exercise price if the options are carried forward yet again?

[jbravo2] 22/8/2019 08:41

Yes, by and large fair points.
Redtrends nuanced points are more reflective of my position. I just wasn't sure they'd be taken up so didn't want to write that much. However, who knows I might need to find a home for a large sum sometime soon. So here goes...



I don't mind 1p options if they're for a large OVER delivery. Not delivery of guidance. Your salary is for guidance. I do mind though if it's too large a % of the company.
All in all I think the options were far too generous on their terms, size and price. That is more the point, and yes as has been pointed out (and I agree ironically by someone invested in another company that has done exactly the same) trust is the most important measure that is destroyed by overly generous rewards.
If I feel management wins despite shareholders losing I won't invest and that is what was portrayed by those options.

[fsjamescampbell] 22/8/2019 08:21

Fair points and noted :)

[redtrend] 22/8/2019 05:46

Having said all that HUM need to listen to its shareholders and potential investors on how the Options were presented and constructed. It goes back to an earlier point I had:

"A separate discussion is whether the Qty of shares offered is too generous and/ or the performance criteria too loose (i.e. is it based on meeting guidance or is it based on exceeding targets which should be basis of any performance bonus)."

I raised this previously direct with HUM and so I feel FSJ and others should also raise it when they meet Bert.

[redtrend] 22/8/2019 05:35

Biggles - it's a rather strange position to take when Ariana did the exact same thing but worse few years back. It was the main reason I sold out of Ariana, as they gifted themselves abundant overly generous options at a time they were diluting shareholders to high heaven!

Betts himself nearly has circa 1.5% of HUM in equity irrespective of any options, so his interests are certainly aligned with shareholders.

The performance options are a bonus, instead of a monetary cash bonus - they are not just for the directors, but staff. The performance criteria were set at the higher thresholds of guidance and AISC. They missed the target last year as is well known so no options, will miss the AISC of $800 this year and struggle to meet the guidance of 120,000 Oz. If they somehow managed to hit the performance options guidance which means they need to produce 68,727 Oz for 2H 2019 (34,364 Oz per Quarter), it would be an amazing result for shareholders and the HUM team would certainly deserve the release of 1/3 of the options.

When HUM are more flush with cash, they can perform share buybacks and keep some shares in Treasury for Options, thereby avoiding any dilution. At $1,500 gold, if HUM continues to be this undervalued share buybacks is far more potent and powerful than dividends.

The most balanced post I've seen on the Options is from Casual on the HUM moderated board in response to one of my posts (posts 731 and 734).

[borderterrier1] 21/8/2019 21:55

But unfortunately, after being here for over 2 1/2 years it is obvious now that the priority for the Ceo and Bod is the Ceo and Bod. Luckily I don't need the money I have invested here and I will hang on indefinitely until this makes or breaks. Other investors, Golden Bull for example, are not so fortunate.

[bigglesbingham] 21/8/2019 21:15

Don't get me wrong I do think this has legs and if I was in I'd stay in but at some point there will be a point where the directors have a deal which favours them more than paying shareholders. I do feel this company has potential but because of options issue I won't invest.

[borderterrier1] 21/8/2019 20:34

bigglesbingham My sentiments entirely. Look at the 10 year chart here, it's an absolute disaster. I wish I had never invested.

[bigglesbingham] 21/8/2019 20:05

I have to say that's the reason I didn't invest here. It's down to trust, How can you trust directors who gift themselves part of the company so blatantly. My real problem with this is the fact you don't know what they are going to do in the future at the detriment of paying shareholders. They've shown their hand . The company may well produce according to predictions or even excel but the fact that the directors are out for themselves rather than the shareholder is off putting. I hope it works out for shareholders here and I watch the share and boards closely but I can't get past the issuance/gifting of options. I won't post again and wish you all luck.

[borderterrier1] 21/8/2019 15:03

At last!!! An potential investor, (jbravo2) that knows what he's talking about! And Fsj, at your meeting with Bert what do you think he will tell you? More glowing reports about how swimmingly everything is going? Come on. Wake up.

[jbravo2] 21/8/2019 08:37

@fsj
Serious statement and associated question. I realise this has been a contentious issue on this board (quite rightly) but I'd like him to address this.
This stopped me investing in the company a while ago.
I'd be interested in his answer.


Issuing options at 1 penny shows a lack of understanding of, and alignment with, shareholders interests. Shareholders gain when the price goes up. (No dividends here yet). Options priced at 1p are 1000's of % in the money even with the poor performance shown over the last couple of years.
Does the board regret issuing options at 1 penny?

[fsjamescampbell] 21/8/2019 08:10

I will make a note of those :)

[rickyhatton] 20/8/2019 14:04

In the mining haven podcast interview with DB on 14 August DB talks about thecplan for 130k+ oz in 2020 and then says "to be conservative let's just say 125k 0z at $850 AISC" And being debt free early in 2021. Generating nearly $90m of EBITDA in 2020 and debt being just $20m by year end 2020. Sees AISC going down "significantly"

Also marked change of gear in mining plan about accelerating targeting higher grade underground deposits as they are thus far judged overall no more expensive to mine.

No doubt he sees rapid improvement ... but knows that it still has to be delivered. But DB cautiously but confidently upbeat about the forthcoming performance.

[borderterrier1] 20/8/2019 13:44

Three questions from me:-

1. When is the share price going to move N?
2. Is the installation of third ballmill "on time and on budget"?
3. Does Golden Bull drink too much?

[oohrogerpalmer] 20/8/2019 13:30

How's the new wall holding up & is production on schedule during this rainy season?

[toinifinity] 20/8/2019 13:11

If they were approached by a buyer - would the board have a price in mind at which they would recommend accepting the offer? and how's the weather been in Mali?

[new_buyer] 20/8/2019 12:51

How are the hippos getting on?

[fsjamescampbell] 20/8/2019 12:18

:) will pop on the list

[goodgrief] 20/8/2019 12:12

When they doing another ProActiveInvestors evening in London?

[fsjamescampbell] 20/8/2019 12:02

Meeting Bert from HUM in Manchester next week for a Chinese with some other investors....general chat and so on and a bit of a Q & A. Anyone got any questions they want asking / answering.

[e-mail]

[rickyhatton] 20/8/2019 10:27

In the mining haven podcast interview with DB on 14 August DB talks about thecplan for 130k+ oz in 2020 and then says "to be conservative let's just say 125k 0z at $850 AISC" And being debt free early in 2021. Generating nearly $90m of EBITDA in 2020 and debt being just $20m by year end 2020. Sees AISC going down "significantly"

Also marked change of gear in mining plan about accelerating targeting higher grade underground deposits as they are thus far judged overall no more expensive to mine.

No doubt he sees rapid improvement ... but knows that it still has to be delivered. But DB cautiously but confidently upbeat about the forthcoming performance.