Hummingbird Resources Share Discussion Threads

[kennyp52] 27/8/2019 09:21

Sleveen ... clueless on your understanding of corporate accounts . The cash flow being generated now by POG is hugely significant . How can you not see this is self financing and all debt can be cleared relatively quickly . Oh ... I see .. you don’t understand accounts 🤡

[new_buyer] 26/8/2019 21:26

Bookwormrobert/tigerbythetail pops up with his bimonthly “terrible management” and “a placing is inevitable”. When you flounced off the LSE HUM board months ago during a hissy fit (seems you have form for that) most hoped you’d gone for good but like a bad smell you linger around where no one wants to read your drivel! Borderterrier posts more interestingly than you (did I really just type that? Off for a lie down)!!!

[borderterrier1] 26/8/2019 13:38

No comments on the "Hummingbird swings to a LOSS" news? What did you expect?

[borderterrier1] 25/8/2019 14:27

No point in going over the "details" again on here. This was going S immediately after the mine was completed "on time and on budget." In other words, before the security breach, pitwall collapse and bridge wash out. As other have said on here, it would appear that the share price was held back periodically to allow strategic buying at reduced prices. I wonder why? Please read my post on here no. 7098 . Like you, I invest to make money and since I invested here, despite DMOR way back in 2015, up to now this has not delivered. I hope it will.

[kennyp52] 25/8/2019 07:55

Thanks for the detailed response borderterrier1 .

[borderterrier1] 23/8/2019 18:39

kennyp52. As you say you are new to this board. Perhaps you should have taken the time to read some of the comments from others from 2 1/2 years ago, not just mine. At that time, many investors were as positive as you are. But here we are still waiting for the share price to move N.

[kennyp52] 23/8/2019 18:13

Taking the results apart then at least they are generating cash and making significant finance repayments ( both loan and lease ) - see the cash flow statement . Don’t know how much their planned CAPEX is moving forward but they say they still have an undrawn 10m facility . So cash isn’t the issue . Big depreciation reserve is hammering the P&L figures but this doesn’t really bother me if they are near the end of mine development costs . £4m extra inventory will be valued at cost so with POG having been $1400 to $1500 since then some held back profit up the sleeve there , good management IMO . I’m lucky to have bought in recently on this so no historical loss but I see this moving up quite nicely after the H2 results . Good luck all .

[borderterrier1] 23/8/2019 17:37

I do. As I have repeatedly said, I MADE A MISTAKE by investing here. But I accept that fact instead of talking this up like others do year after year. Would you rather I post continual positive posts here like some others do? The power of suggestion doesn't work.

[borderterrier1] 23/8/2019 14:33

I agree. But after this share price being 39p before "mine completion on time and on budget" in July 2016 to where it is today, no one in their right mind could call this a "shrewd investment" could they? Me included.

The share price was 26p three years ago in August 2016 when this was just a hole in the ground (with a liar at the top?) so it could take another two years from today to get back to the dizzy heights of 39p. For a total 4 1/2-5 year investment things are not improving. But of course, it isn't the Ceo or Bod faults is it? But who would you put the blame on? Bad luck, rainy season? And all the time the "management" enjoy their large salaries and share options.

[redtrend] 23/8/2019 14:10

It's not good news, it's not bad news. One couldn't even call it news per se.

[borderterrier1] 23/8/2019 13:26

Once again, "good news" produces a negative result on the share price Wake up guys. After almost three years now this is going nowhere. Complete dog.

[avsome1968] 23/8/2019 13:21

Lol if the news was that good why are we down, management cant be trusted been so many let downs over the years, hope they can turn a leaf and produce the goods next 12 month we shall see.
Just a small holding here just in the blue, fingers crossed gold keeps strong also.

[casual47] 23/8/2019 10:31

Redtrend, might be prudent for them to do a refinance anyway and provide some headroom to take out more debt if needed. Doesn't mean they have to draw it all.

An increased LOM, updated R&R and the proven production should unlock financing at much better terms than what they got so far.

[redtrend] 23/8/2019 10:26

Casual - if they hit guidance I don't think they'll even need to use the $10m undrawn facility for working capital. Having said that in the short-term they may dip into it, as Trade Payables is quite elevated at present to work through all the Capex. Funnily enough it's the exact same facility bookworm adamantly stated didn't exist.

On refinancing, I don't think any will be needed for Yanfolila alone (again, if they hit guidance). Have no qualms though if they take additional financing out for Cora acquisitions, other M&A or Dugbe.

[redtrend] 23/8/2019 10:19

Oh dear the usual suspects show up who don't have a clue about accounts or simply intentionally making misleading and false statements. Perhaps ignorance is a defence. As Andrew states liabilities like "lease liabilities" are covered by AISC - it's simply new reporting requirements required by "IFRS 16", on how the books are presented. For HUM it's effectively an upfront snapshot of working capital/ trade payables.


Bookworm you honestly have no shame. When Goldibucks recently sold out of JLP (appears to be the only accountant who posted on that thread), you turned on your usual melodrama about losing respect for him and why he was still posting. Low and behold, here you are.

Most don't need geography lessons here, but Mali is an incredibly large country. The north is dangerous, central area has regional problems, but is full of UN troops and some inter-regional fighting has given way to cease fires and tentative peace treaties. The south where Bamako and Yanfolila are safe in comparison with no such fighting or security issues.

If some were a bit more nuanced with potential negatives, you could raise the issue of potential changes in VAT law in Mali. Such law if enacted though will take time, be fought by the bigger miners and in a gold bull, if HUM get their house in order meeting guidance, it doesn't change the fact HUM is significantly undervalued.

[andrewsr] 23/8/2019 10:14

Thanks for the clarification.

[casual47] 23/8/2019 09:44

Don't see a need for placing as gold production in the next 12 months plus the overdraft facility should be enough.

A refinancing would be normal and seems a strong possibility especially when they get the new LOM update.

[andrewsr] 23/8/2019 09:08

Sleveen,

There's no mention of additional finance required, so DB's statement 'forecasted positive net cash position during 2020' is false according to you, which seems a bit unlikely.

Some clarification is needed. Probably some of the current liabilities are included in the AISC (?).

[bookwormrobert] 23/8/2019 09:06

Hi Sleveen!
I make it that you're right. Not as bad as Avesoro, but still a pretty ugly situation. Hopeless mismanagement from exceedingly greedy and clueless public schoolboys.
Best way out would be for the company to put itself up for sale.
Mali security situation also steadily worsening.
As I'm definitely NOT shorting any gold stocks, even a turkey like this one, given gold is now in a bull market, it's not worth spending any more time on this particular miner. Lots of better ones around.

[charlieeee] 23/8/2019 08:55

Leasing $19 million, partly to finance ball mill.

I had thought Coris had offered a loan for the ball mill and that there was also an additional facility of $9 million which was undrawn. Am I right to assume that this $19 million is the alternative finance and that effectively, the overdraft facility has been drawn (contrary to explanations)?

[andrewsr] 23/8/2019 08:46

Most of the current liabilities will be included in the AISC.

So, clearly, no placing or re-financing required.

[sleveen] 23/8/2019 08:43

net current liabilities of $92m v net current assets $30m = $60m current liabilities +$10m G&A/interest. so $70m to find but cash generation from ops only $36m (@ 65k oz * $550 and that's generous)

The clue is in the word CURRENT, those need to be paid in the next 12 months of which most will be within 6 months.

net debt is a useful metric but also includes longer term debt (ie more than 12 months)and it should be used with other metrics to gain an overall picture of the financials.

So refinancing and a placing alongside needed.