Hummingbird Resources Share Discussion Threads

[vatnabrekk] 12/9/2016 22:57

clipper: The 35M additional senior debt was mentioned by Robert Monro in an interview at Sprott Natural Resources Symposium at Vancouver on 2nd August. Here is a link to the audio:
www.kereport.com/wp-content/uploads/Weekend-Speical-Hummingbird-Resources-Burt-Munro.mp3

[chipperfrd] 12/9/2016 17:24

I really don't know where you guys get your numbers from! What is this 35m that vatnabrekk is suddenly popping up and quoting?

In case you missed it, HUM raised the project finance for Yani a couple of months ago. They may still do some vendor financing for mobile equipments as Caterpillar/et al all offer good terms due to the poor market conditions they are suffering. But the bulk of the cash is already raised.

As for the Taurus bridge. It was originally a US$10m advance on the US$75m debt funding that Taurus was going to provide, and that US$10m was going to be repaid out of that main debt facility. Subsequently, Taurus advanced another US$5m so that all preparatory earthworks, DFS preparation, etc, could be completed.

As it turned out, HUM and Taurus did not go down the debt funding route and project finance was completed via the placing of equity.

The fact that Taurus has extended their bridge repayment would appear to indicate their continued interest in the project and, presumably, their eagerness to receive interest on that US$15m. It is also possible that their original 1% NSR is tied to their debt arrangement with HUM and may well be a factor in the rolling extension of the loan repayment - but that is purely my hypothesis! Either way, HUM clearly have the Taurus US$15m available if it is required to be repaid, so obviously Taurus want to leave their cash with HUM for the time being.

And finally, Charles Clore please don't expect to ever see a 'leachpad' at Yani - it is planned as a conventional CIL plant.
Chip

[charles clore] 12/9/2016 15:48

And when they have dealt with the financing the excuse will be dilution. This isnt going anywhere until they instal the leachpad in a year's time

[substp] 12/9/2016 13:30

As Mr. Monros audio said.... WIP.... :-)

[vatnabrekk] 12/9/2016 12:16

I think you may be right about the Taurus bridging loan. In fact, the entire 35M funding needs to be sorted before we see any significant upward movement, IMHO.

[substp] 12/9/2016 09:52

There is no volume to speak of... I see no rush to any exits... :-(

[divmad] 12/9/2016 09:39

Because they haven't sorted out the Taurus bridging loan yet.

[substp] 12/9/2016 09:02

MMs desperate to make a market here?

A tree shake?

[noirua] 12/9/2016 07:52

Quite good news for HUM but on a widespread down day in Australia,
for the gold sector. Randgold might be eyeing up Hummingbird as they have two operating mines in Mali.

Yanfolila is the Company's most advanced asset, which boasts impressive economics and production fundamentals. 132,000oz gold is targeted for its first full year of production, which would deliver around US$70 million of free cash flow at a US$1,250/oz gold price. On its initial eight year mine life, Yanfolila has an IRR of 60% and an NPV of US$162 million at US$1,250 gold price, making it one of the highest margin undeveloped gold projects in Africa. All in sustaining costs of US$695 per ounce places it in the lowest quartile of African producers.

[substp] 12/9/2016 07:13

And we're off... good to see the equipment moving in... :-)

[substp] 11/9/2016 10:19

Even more news soon...

"The principal conditions of the MoU are that by 30 September 2016:
● Cora Gold must receive binding commitments for an initial minimum of US$4 million
(before expenses) by way of an offering by Cora Gold (the ‘Offering̵7;);
● each party must be satisfied with the result of their respective due diligence exercises;
and
● the parties must enter into a formal binding Amalgamation Agreement.

Completion of the Offering is to occur following the Amalgamation. Upon completion of the Amalgamation and immediately prior to completion of the Offering the respective shareholdings in Cora Gold will be Kola Gold 57% : Hummingbird Resources 43%.

[substp] 08/9/2016 07:23

I see this as good news as it gives them more time while the financial institution does their due diligence for the senior debt.

Impressed they told us today (due date) unlike a lot of companies that leave you hanging... :-)

[sleveen] 08/9/2016 07:08

An extension, so they don't have the cash to repay it yet.

HUM had a 6 month extension and it wasn't paid off during that time.

Placing ahoy?

[ukgeorge] 06/9/2016 14:37

And Hum moving in the right direction for once.

[pixi] 06/9/2016 11:26

Gold flying: $1333.10.
.

[noirua] 05/9/2016 22:59

Stars aligning for next stage of gold bull market

[aim999] 04/9/2016 18:25

I'm expecting news on the funding this week. And yes I'm also expected them to be on site from October .... They said it several times

[substp] 04/9/2016 07:51

In the interview (audio Aug2) Mr. Munro states that the main construction will start in Oct.

Yanfolila needs to be fully cashed up and is WIP. Expect any time now.

Taurus? ... I'm sure something is being worked out.... Taurus knows they have a large bank account now and will work with HUM.

Click on play arrow next to download show...

[chipperfrd] 03/9/2016 14:36

As for your 'shovel ready', whatever that is meant to mean, they have already used the Taurus cash to complete earthworks - so plenty of shovels in action during the past year!

The project is now in Engineering, Procurement & Delivery by SENET. Construction is not scheduled to commence until October along with Site Services. Then TMF construction commences in November. So you should start to get some pretty pictures of concrete and steels later in 2016.
Chip

[chipperfrd] 03/9/2016 14:18

Well each to his own!

Frankly, I would rather have cash flow benefiting shareholders than bankers.

They achieved a pretty hefty placing successfully and can obviously easily settle the Taurus bridge facility from their US$80m+ cash pile.

LIBOR-linked rates may well rise significantly in the future thanks to the mismanagement of the monetary system so far better (IMHO) to be free of big commitments to the banks and any hedging/et al that might form part of a large debt negotiation.

Sometimes a new start-up has little choice but to go 'cap in hand' to the banks. Thankfully HUM had a project and share price that brought in adequate fresh equity to get this mine built without having to load up on debt.

Perhaps there will need to be a bit of debt or vendor financing to complete the job but the majority of CAPEX needed is thankfully already in the bag.
Chip

[divmad] 03/9/2016 13:54

As well, your reference to not being weighed down by debt on start up, I don't buy it for one moment.

This Yanfolia mine is so profitable, according to the DFS economics and payback information, that a project loan tied to cash flow would work extremely easily. Indeed that was the original plan, with Taurus. I hope they do replace the $15mn bridging loan with a project loan now.