Hummingbird Resources Share Discussion Threads

[jbravo2] 04/6/2020 11:25

It certainly is an excellent deal for the junior partner.
That being ARX.
And I’m sure you’re right, he’ll make lots of money for the investors in ARX.

[wassapper] 04/6/2020 11:19

I think it an excellent deal for a junior. Stalker and Dattels are first class; world class. At Uramin, Stalker made a fortune for investors.

[ntv] 04/6/2020 10:51

Well best shareholders get together and try and change things like they are @WEN
Just requires a little effort
Trouble is most II's can't be bothered and most shareholders are only keyboard and armchair investors

[ukgeorge] 04/6/2020 10:46

live scenes from hum headquarters

[jbravo2] 04/6/2020 10:28

For sure they needed some kind of deal that saw them lose a share of the project.
But there was quite a bit of interest from other parties.
Some of which were presumably still doing due diligence.
In my opinion this deal has been rushed through before any of those parties started to offer proper money so that ARX (and thereby 3 members of the board) could get their hands on more of the project with a poor offer.
Of course those who believe the 1p options and such like were in the interests of shareholders (to incentivise the board etc etc) will only see the good in this. I disagree with them, it is largely a deal to benefit the board.

[bo doodak] 04/6/2020 10:23

UKGeorge4 Jun '20 - 08:41 - 1864 of 1875

Spot on!

So, basically, its looks like another cheap option scheme for the directors. Nice work if you can get it.

[dozyduck] 04/6/2020 10:17

This was the only real option for HUM. Without it there'd be no progress on Dugbe and/or much share dilution of whatever is left at Yanfolila.

[bigglesbingham] 04/6/2020 10:07

Don't get good vibes regarding the management here. Ever since options awarded at 1p. This deal doesn't change my mind.

[ukgeorge] 04/6/2020 09:59

NTV, why would Dan want the share price to go up?

He has 5M shares valued at £1.2M
He takes $740k ish in pay plus a massive performance package.
He can use Hum to help fund Betts gold trading
and today he can move half a 4Moz project into a shell company.

It must be a dream for him.

[ukgeorge] 04/6/2020 09:55

A sparrow in the hand is worth two in the..... where's the bush gone, oh Dan's stolen the bush.....

It is like the company is run by a Russian oligarch

Got to laugh Dan and Tom used their bonus for building the mine on time to buy 20% of Dugbe.

I wonder what their next trick is going to be.

[ntv] 04/6/2020 09:51

TBH it is probably the best deal on the table
let us be honest with ourselves most people want the share price to go up
The other alternative was a placing to allow the new team on board
It separates the two mines but at least (hopefully) existing shareholders will benefit from existing mine production with a combination of dividends and buybacks etc
It will probably speed the project up
Time will tell whether it was a good deal not

[rickyhatton] 04/6/2020 09:33

"In structuring its Option Agreement and Joint Venture with ARX, it necessitated bringing on board a successful mine finance group in addition to a world class operating team which would operate hand in hand with Hummingbird but would be independently run ensuring, minimal strain on Hummingbird's human resources and NO STRAIN on its financial resources"

A large dormant project with no value attributed in the share price now has momentum!

And will need to have value factored in to share price over the next 2 years of further exploration, and a DFS.

And in 2 years time HUM, having spent nothing, can see where both the politics and the gold price is before further essential decision making.
Smart. Safe.

Whilst retaining optionality for deployment of the cash cow Yan receipts

The deal wont suit ambitious purists, but looks a really excellent risk/reward step for hum company.
Market should appreciate the significance of this over coming days/months.

[ukgeorge] 04/6/2020 09:28

How much nicer would it have been for the RNS to have been that Hum would own 40% of new co, rather than Dan and Tom. Hum is just a cash cow being milked by Betts and chums.

Any decent rise and I'm going to be extremely happy to see the back of this company.

[glennborthwick] 04/6/2020 09:17

yeah, im comfortable with the deal as well. Two years time Hum is a different animal. Debit paid off, cash flow great if gold stays around these levels. Can then move full spped on Dugbe to become a two mine company but investors need to look on a 3-5 year view here.

[rickyhatton] 04/6/2020 09:15

ggg1

And in 2 years time HUM, having spent nothing, can see where both the politics and the gold price is before further essential decision making. Smart.
Whilst retaining current optionality for use of the cash cow Yan receipts

The deal wont suit ambitious purists, but looks a really excellent risk/reward step for the hum company.

[wskill] 04/6/2020 08:59

Yes I agree on the face of it $2m for the 49% interest is not a good result and only up to DFS Hum will still be paying 51% of the cost getting the mine into production but Dattels looks like a good choice of getting this mine up and running.

Pity I thought an outright sale would have at least realized the money spent on the mine thus far but at least we are up and running now .

[goldgoldgold1] 04/6/2020 08:52

I don't see how shareholders dont take this as a big positive. It is currently valued at zero by the market. To get it off the ground to being worth anything valuable it would mean HUM would have to spend all excess capital from Mali and put it into Liberia..... As far as I have read this is the exact opposite of what shareholders have wanted? With this deal you are outsourcing costs to a third party that has a huge vested interest in making the project valuable without having to spend 10s of milions of USD whilst at the same time retaining majority ownership. In my mind its a great deal.

[rickyhatton] 04/6/2020 08:52

"In structuring its Option Agreement and Joint Venture with ARX, it necessitated bringing on board a successful mine finance group in addition to a world class operating team which would operate hand in hand with Hummingbird but would be independently run ensuring, minimal strain on Hummingbird's human resources and NO STRAIN on its financial resources"

[dickbush] 04/6/2020 08:48

OK It's taken the financial risk out of the development but I don't see any way to put a market value on the deal for HUM for another couple of years, maybe longer. I was hoping for a deal that established a market value that reflected, at least, a gold price like, say, $1,500.

Still, the good news is that Dugbe IS going to be developed and we (and the market) can stop thinking of HUM as a single mine with a short life.

[ukgeorge] 04/6/2020 08:41

Hummingbird to be renamed the Hill and Betts piggy bank

Three directors of the Company (Daniel Betts, Ernie Nutter and Thomas Hill) have invested into ARX in support of ARX's strategy to develop Dugbe, as well as to demonstrate their personal commitment and long term belief in the potential of the Dugbe Gold Project. The three directors have an aggregate holding of 39%in ARX as at today's date, which is likely to be diluted in the normal course as a result of ARX's upcoming fundraising activities in order to satisfy the conditions of the Earn in Agreement. Each of their investments was on the same terms as third parties investing at the time, and the Company's interaction with ARX was handled by an independent committee of the Hummingbird Board, chaired by the Chairman, and comprising the three other directors (in addition to the Chairman) (the "Independent Committee").

[rickyhatton] 04/6/2020 08:32

While any Liberian government/political issues are sorted HUM fork out net nothing over next 2 years..

Over the next 2 years while DFS is produced from an extended exploration for the banks, and the political commitment and issues become clearer/get resolved Hum pay out nothing.

Looks a very good risk/reward balance deal from Betts

And this seems to offer an additional protection "convert the Company's 51 per cent controlling interest in the Project into a 51 per cent controlling interest in ARX or any then listed parent company".

[rickyhatton] 04/6/2020 08:27

ARX pay for all pre production costs (excluding mine build costs) (including $10m for exploration) and the DFS to earn half the project. Derisks massively for HUM. Which is what most shareholders and Company wanted. Fantastic

Needs a few things to fall into place to progress it.

But now the LARGE project has momentum.

[kennyp52] 04/6/2020 08:26

Dugbe deal .. simplistically means the asset can be mined without HUM having to devote resource and time so they can continue to concentrate on the current operations . Importantly it seems no finance but JV profits thereby enhancing the value of the asset as it starts to yield . If they tried to do it themselves then in the very long term it may be more beneficial to shareholders but WHEN could they devote the necessary resource and time ? Is it better to start releasing the value of the asset and potentially have this value reflected in the share price ? I want a rising share price so this deal looks reasonable .

[techandy] 04/6/2020 08:23

25p by close of play