Hummingbird Resources Share Discussion Threads

[rickyhatton] 28/9/2017 20:25

Cora gold due to list on 9 October IF they have the cash.

[rickyhatton] 28/9/2017 20:20

Nothing to stop them selling one project (Liberia) and buying another project in a familiar and positive jurisdiction (Mali)

[dingo75] 28/9/2017 19:45

whato
tremendous figures

so that's
$90m free cash flow pa
inc new acquisition.
v cheap still.

[darola] 28/9/2017 19:39

Think it depends what happens around Yanfolila. Once it's up and running and just operating as a conveyer belt, then the BOD may have had time to start developing Liberia - got to do something with all that free cash, or we're going to start getting one hell of a dividend!!

[rickyhatton] 28/9/2017 16:22

zeb

Thanks for podcast. Rock solid.

I would not be surprised if Liberia was sold at gold in the ground prices.

[chipperfrd] 28/9/2017 15:48

zhockey re AGG: No

Darola,

The 50% split relates to the new operating company that will be jointly formed if HUM are happy with DFS. If so they will fund the c. $35m of pre-production CAPEX.

The Mali gov will have a free carried 10% of the Op Co and has the option to buy in for another 10%. I assume they will have 20% of NewCo.

The split in NewCo would appear to be quite separate from the 20% (plus warrants) held in AGG itself. But much can happen in the intervening period and HUM might well go in for more. We will have to see.

Chip

[darola] 28/9/2017 15:32

Not sure if these numbers include our 20% holding in AAG. Which I presume means we get 20% of their 50%? So really 60/40

[plasybryn] 28/9/2017 15:17

Like it.
No dilution. CAPEX from free cash flow in 2019 to build Conc. plant, which could increase from $70m p.a. to $85m p.a
Interestingly once we get to their 20% holding for £4.815m & they are happy with DFS outcome, they will create in 2019 a new J.V. company putting in the assets with AGG owned 50% each.
25,000/30,000 ozs attributable gold.
Looks very well thought out.
Bert is enthusiastic & knows his numbers.

[zhockey] 28/9/2017 14:28

Chip, are you buying AGG?

[qs99] 28/9/2017 14:12

YUP AGREED Charles, oops not sure why caps was on,......looking forward to this driving through 40p and onwards, thanks for calcs above to all, looks a great addition IMO and market will begin to wake up to that fact....DYOR

[charles clore] 28/9/2017 14:04

Looks like someone hoovering up sells at anything below 35.5p today.

[bishan bedi] 28/9/2017 13:56

Thank you chipperfrd.

I'd be interested to follow the process of your assessment of the impact on NPV, if you feel you can post it on here.

[darola] 28/9/2017 13:49

If the AISC is same as current, that 20k oz share adds circa $12m to HUM coffers.

[chipperfrd] 28/9/2017 13:25

Bisan bedi,

I think it is clear from the announcement that Kobada will only be developed for mining, crushing, pre-conc and gravity conc.

Any further processing would duplicate what is available at Yanfilila and would require much more complexity and additional CAPEX and OPEX.

HUM have 120 days for full due diligence and may yet decide to pull out. But clearly Kobada provides additional optionality and will likely provide a further boost to the overall NPV/IRR of Yanfilia. I hope to try and assess this aspect as soon as I have a bit more time.
Chip

[catsick] 28/9/2017 13:25

Tiny bit of dilution for the second tranche of shares if they go through with the deal but only an extra 2pct

[zeberdie] 28/9/2017 13:21

No dilution, paid for out of production.

[zeberdie] 28/9/2017 13:19

11 mins Bert speaking on kobada

hxxps://www.voxmarkets.co.uk/blogs/ascent-resources-ast-hummingbird-resources-hum-alba-mineral-resources-alba-blenheim-natural-resources-bnr-chris-bailey-on-imb-tui-sspg/

[bishan bedi] 28/9/2017 12:41

Thank you Chipperfrd, and thank you for doing the next part of my calculation for me!

May I inquire as to why you are so confident in the Kaboda process being performed up to the gravity concentrator?

It makes sense to me if only in terms of the volume reduction being greatest to that point (and consequent trucking being minimalised), but I am always keen to learn.

Best

[chipperfrd] 28/9/2017 12:36

I am only part way through working through the details of this new development and I am now baby sitting. However, it appears pretty clear that the Kobada processing would only consist of the processing up to the output of the gravity concentrator.

That appears to provide c. 5% of the original ore mass.
At the reserve grade of 1.25g/t and with recovery to the gravity conc being c. 82%, that would imply a conc grade of c. 20.5 g/t gold (c. 26.4 oz of contained gold per 40t truck).

Grinding and CIL processing would then be carried out at Yanifolila with the conc from Kobada being fed in at the grinding stage.

If the target for Kobada throughput is to be 50,000 oz/annum, then the first pass through these numbers infer c. 10 return truck trips per day.

Assuming the Mali government buy into their full 20% free carry, HUM would eventually benefit from 40% x 50,000 ~ 20koz of gold sales once they have fully recovered their pre-production CAPEX in Kobada.

Chip

[bishan bedi] 28/9/2017 12:11

A question for any process engineers who might be out there. I am interested in these sorts of things.

Up to what point would the ore be processed at the Koabada site before being trucked over to Yanfolila? The gravity concentration stage?

Thanks in advance

[zeberdie] 28/9/2017 10:49

hxxp://www.stockhouse.com/companies/bullboard?symbol=v.agg

[charles clore] 28/9/2017 10:18

I can't see the latest chart pattern concluding at less than 40p and possibly as much as 43p - and that's before production starts in earnest.

[catsick] 28/9/2017 09:46

It is interesting to me that the ore is so easy to concentrate, if they can prove that they can concentrate down to a very high grade it means the plant can run for ever basically as they can bring in concentrated ore from a massive radius, will be interesting to see the capex reduction for doing it this way, could be very significant for the long term being able to operate in this fashion.

[rickyhatton] 28/9/2017 08:40

Kobada

"The 2.2Moz resource stretches over 4km within a larger 12km strike length that has not been properly tested ▪ An additional 30km of shear zone structures have been identified on the property and have yet to be explored

Significant resource growth opportunities on the mining and exploration licences.
Current resources (4 km strike) only cover 33% of total mineral strike length identified on the Kobada Main Shear Zone"