Hummingbird Resources Share Discussion Threads

[rileyma] 22/11/2017 07:31

Courtesy of lse,,,

Focus Safe-Have Demand To Drive Gold Prices In 2018 - Citigroup Neils Christensen Neils Christensen Tuesday November 21, 2017 15:09 Kitco NewsShare this article: (Kitco News) - An environment of elevated geopolitical risk will keep a bid under gold prices as one bank sees prices pushing through $1,400 an ounce in the next three years. In a recent report, analysts at Citigroup said that they are bullish on gold as it sees safe-haven demand pushing prices above $1,400 an ounce �for sustained periods through 2020.� "Event-driven bids for gold seem to be occurring more frequently and may be the new normal,� the analysts said. In short, even as the rates and forex channel dominate the outlook for gold pricing, the yellow metal is increasingly being used by investors as a policy and tail risk hedge.� The American bank noted that gold prices are on track to hit $1,270 per ounce by the end of 2018 and then climb to around $1,350 per ounce and $1,370 per ounce in 2018 and 2019. Potential economic crisis, elections, military action are some of the key global events that could prompt gold�s safe-have allure among investors, the bank said.

[charlieeee] 21/11/2017 18:56

Thanks for responding and that has helped me refind the data which I had looked at briefly yesterday.

You are right: I was looking at the centrifugal and should have been looking at centrifugal plus gravity!

That certainly does alter the picture.

[rileyma] 21/11/2017 18:53

😲

Bout 12 30 mins in 👍

[bookwormrobert] 21/11/2017 16:52

Charlieee! I'm not sure I should bother to reply to your post, as you seem to me to be attempting to spread misinformation here, just as you attempted on the iii bulletin board. But, anyway, if you read the existing AGG feasibility study, you will see that they were planning to concentrate the ore (combination of gravity and centrifugal processes) by 95% - so to a 20g + concentrate. And, yes, the AGG deal would add substantial value to Hummingbird, if it is completed. (Which it will be, of course, once the haggling is done, because it is transformational to AGG).

[charles clore] 21/11/2017 16:21

In the new year when full production capability has been recorded I would expect the price to double.

[croasdalelfc] 21/11/2017 16:16

Bert suggests two more RNS before Xmas:In 2 weeks :ore processing started.In 4 weeks approx 19th Dec : first pour .I would expect 45p in the run up to the 22nd

[fsjamescampbell] 21/11/2017 10:34

No worries chaps, just a bit of additional detail around what we already know.

[charles clore] 21/11/2017 10:19

fsjc - thanks for posting your report I enjoyed reading it.

[ukgeorge] 21/11/2017 10:18

Thanks James, interesting read.

Everything does seem too good to be true here... I just pray they pull it off.

I have sold some shares in the last few weeks, as I had got near 50% of my portfolio in them and this is a risky period. But now wishing I hadn't :)

Bert said commercial production at the end of Q1 in one of the interviews, that is far more important than first gold pour and is when I would be happy to be buying at 50p +

[fsjamescampbell] 21/11/2017 09:17

Ok here is the link to the report from the call with Bert yesterday. There is nothing new in there but it is just a bit of finer detail from the RNS and current status, thinking and progress etc....

[bishan bedi] 20/11/2017 22:00

Charlee your maths is wrong (or I am missing your point)

In situ grades ~ 1g/t, concentrate grades ~ 30g/t, that's a 97% reduction in the bulk.

HUM (sadly!) don't have 30g/t

It's all in the AGG BFS from memory, or one of the HUM presentations. I forget.

[timw3] 20/11/2017 20:52

o/t MASSIVE after hours RNS at PREM

PREM $1b revenue pot vs £20m cap. small placing of 125m shares at todays close. that will be traded within an hour tomm.

ZULU is an absolute monster no doubt about it

PREM will go bonkers tomm just Like ZIOC and GGP recently have

[charlieeee] 20/11/2017 19:39

Chips

From what I could see, I don't think that cat's "dyson like hover cyclone thingy" does concentrate the ore quite as spectacularly as anticipated "the ore is then up to 30g a ton which is worth trucking to Timbuktu"

It seems to get rid of about 70% of the bulk which brings the grade up to not dissimilar to their own grades, but with extra costs and some additional capital.

Near term, I cannot really see that this deal making much difference, whether it goes ahead or gets cancelled, but thanks for being so generous with your research and I do take your point about exposure to other projects.

[ukgeorge] 20/11/2017 16:34

250k sale at 38.75p keep a lid on any uptick

[westmoreland lad] 20/11/2017 15:35

zhockey -- was this not the post where some were questioning your parentage ? - lol

zhockey - 30 Sep 2017 - 05:50:40 - 1877 of 2132 Hummingbird Resources - HUM
I still think we'll see the 20s before the 40s but WTFDIK!

[zhockey] 20/11/2017 15:01

Who was it that called me an idiot for saying 40p would be hard to breach?

[chipperfrd] 20/11/2017 14:45

Thanks Mirabeau, not sure I deserve it though, just my opinion!

[chipperfrd] 20/11/2017 14:43

Presumably a 3m rollover, so neutral.

[rileyma] 20/11/2017 14:35

2 x 3 million at 39

[mirabeau] 20/11/2017 13:08

Chip

We are blessed to have someone with your knowledge and insight contributing to this thread

Thanks

M

[chipperfrd] 20/11/2017 13:04

Charlieeee,

The Kobada feasibility was based on an average mined grade of 1.26g/t which is pretty good compared to the global average for open pit mines of c. 0.5g/t.

I don't know what the contained grade of the concentrated ore from Kobada is likely to be as it will depend on metallurgical studies which would presumably be part of the eventual DD if the JV goes ahead. But if we assume just 20g/t then a 50t truck would be carrying an ore value of c. US$41.5k at current gold price. After likely contractual transport costs per round trip there would still appear to be a very reasonable cost benefit to the operation.

The AGG feasibility came up with an NPV of US$86m (IRR of 43%) of which HUM would benefit from it's 50% attributable.

My own rough NPV for the HUM share (assuming the Mali Gov take 10% of NPAT) is US$31.3m (IRR 33%). Which looks like a no-brainer given their small (C$3.6m + C$4.4m in shares) buy-in price - which also gives them a 19.2% exposure to the other AGG assets.

The Kobada feasibility Capex was US$45.4m but that would be far smaller if only mining, crushing, milling and concentration is required. HUM would fund the Capex for the JV but would then take 70% of free cash flow until their Capex costs were recovered.

Worth mentioning that Kobada is oxidised to depth (up to 120m is quoted) and is largely free dig (ie needs far less blasting) so mining costs are minimised.

However, I have not yet seen a binding commitment to proceed (just the LOI) and the offer was conditional on a binding agreement being agreed within 45 days. That expired on 12th November, so perhaps it will not go ahead. If so, I would be pretty sorry to have missed what looks like a great opportunity for both companies.
Chip

[charles clore] 20/11/2017 11:38

Isn't the long term plan to incorporate more of the indigenous artisan mines into the project? There's a helluva lot of gold to be had out there!

[charlieeee] 20/11/2017 11:26

Well, perhaps the "dyson like hover cyclone thingy" might be better employed at Dugbe, turning that 4 million oz. into ore up to 30g P/T and trucking it to Timbuktu.

I would understand, if Yanfolila had only its reserves, but the LOM can be extended by proving up and processing its own, much better grades. However it is done (and heap leaching crossed my mind), taking on low grade ozs. in place of high grade ozs is a contradiction of the whole plan (in which they seem to be prioritizing higher grade in year 1 to maximize early payback).

[bahiflyer] 20/11/2017 11:25

Bert giving an update on proactive today.

[rileyma] 20/11/2017 11:23

Top banana
Ur report last time was the only thing that shifted the share price
👌