Hummingbird Resources Share Discussion Threads

[charlieeee] 30/7/2021 23:37

At the current POG, Yanfolila is generating profit and that was my specific question: should the company lock those profits in to decrease the risk associated with taking on debt again, this time for Kouroussa. The ability to fund Kouroussa is not being questioned (and was done to death earlier this week!)but, Temujiin and Polaris, you should both be aware that significant equity funding was raised for Yanfolila and the Taurus/Coris debt financing was only part of the funding (as was to be expected for a first project).

[temujiin] 30/7/2021 20:04

There is no doubt imo that HUM can borrow $100m or 100% for Kouroussa Capex if they so wanted, after all they borrowed all the capex for Yani and had at the time, no way off paying off the debt. With Kouroussa they now have cash in the bank and a highly profitable producing gold mine as back up. The indecision from DB's answer seemed to be how much of HUM's cash pile they wanted to use for Kouroussa, rather than how much they could borrow.

[charlieeee] 30/7/2021 18:28

I agree that hedging does not have to be 100% and that a guaranteed margin is the sensible way to proceed when the company has debt to pay (and a known relatively high AISC): failure to hedge last year at $2000 per Oz was inexplicable when we did have debt. Going forward, hedging would provide more certainty re the level of the cash component for Kouroussa funding. Even if the company can borrow the $100 million capex, the terms would probably be better if the company contribution can be 20%(or more) plus the working capital/costs of ramping up to full production. Really, the question is one of risk: should the company take the same/greater risk in its exposure to the POG as we might as individual shareholders? HOC hedging at $27 per oz on silver at Pallacanta makes an interesting comparison, particularly the reasoning.

[plat hunter] 30/7/2021 17:53

Don't get me wrong, I do see the benefit of hedging and creating a guaranteed margin but I like to roll the dice a little more than that. :-P

[johnhemming] 30/7/2021 17:38

>the company should hedge Yanfolila Hedging is always more subtle than that. How much production should be hedged for what period? I am particularly a fan of hedging to pay down debt. However, HUM no longer has any debt. Its like buying and selling shares. You can always buy or sell fewer. The decision is not bipolar (although there is an underlying bipolar element).

[plat hunter] 30/7/2021 17:14

You're a curious creature Charleee, I'll give you that Hedge with gold but never hedge gold.

[charlieeee] 30/7/2021 16:16

Why, PH, did you feel the need to dig up the BOD question, when you must have already known that it would provoke dissent? On a more general note, do most shareholders think that, if the POG was to rise to $1900, that the company should hedge Yanfolila production to control all key components of the profit equation or do most have a higher risk profile?

[plat hunter] 30/7/2021 15:39

Whilst holding a cigarette, "I'm not going to sit here and tell you that i don't smoke" We can't wait until you get your price and do one either, personally if I didn't like something or something changed that I didn't like then i would sell in a heart beat, regardless of price, or how much I'm down or not yet made. Similarly if I go to a shop and it doesn't live up to my expectations then I go elsewhere and I think most rational people would. Perhaps your opinion is not that rational after all eh Charleee?

[borderterrier1] 30/7/2021 14:13

PH Here you go! Another great buying opportunity today! Fill yer boots! This train is now leaving! We have lift off! Etc etc. etc. etc. LOL

[charlieeee] 30/7/2021 13:59

It is not fixed and many hold in spite of the BOD and many will exit as soon as possible because of the BOD. Out of respect for other investors, having shared my view, I don't feel any need to thrust my opinion down everyone's throat all day and every day, but look back no further than Kouroussa communications to see the level of incompetence.

[sleveen] 30/7/2021 10:33

Several spurious arguments from the DTs to try to lower the share price Now the DTs have bought back in, radio silence.

[plat hunter] 30/7/2021 10:22

So no calls for a more competent bod anymore or is that all fixed?

[laurence llewelyn binliner] 30/7/2021 09:17

A very stable year so far for Gold prices..., and could run up to 1900/2000 again now the FED have reinvented what transitory means for inflation, there is little if no room for base rates to rise in 21/22 maybe 23....?, which should be just the right timing for us to spin off FCF to fund Kourouossa and then onto Dugbe.. Q1 POG 1801 Q2 POG 1819 H1 POG 1809 July POG 1805 1675 POG and 1500 AISC was getting us nowhere on FCF funding planning for Kouroussa, but if we see 1900/2000 POG, and incremental AISC improvements in tandem driven by our new COO reducing costs to 1300 then towards 1200 that adds up quickly both sides on EBITDA margin recovering our position very well from what was 175 and now towards 500 with 750/oz possible and we can make solid progress at last..

[johnhemming] 30/7/2021 07:32

US real yields are still negative https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield

[ohisay] 30/7/2021 04:32

Last time POG was 1830 odd HUM were 21,5 to buy ..I know - I bought some.

[borderterrier1] 29/7/2021 21:28

Prat Punter. Once again you are spouting inconsequential rubbish. When the POG hit a high a year ago this share price went down.

[plat hunter] 29/7/2021 21:00

POG So near.....Https://www.tradingview.com/x/XJImu6OL

[borderterrier1] 29/7/2021 18:22

Prat Punter Of course, we all saw it. But we are also smart enough to realize that anything you post is complete B/S.

[plat hunter] 29/7/2021 17:33

This has to be one of the most prolific companies I've ever seen with regards to people talking their own book. I also suspect they know that this is probably last chance saloon with regards to the 8 year accumulation phase, given the gross disparity from reality of some posts and posters.That said, anyone notice TBTT replying to a question made out to Border terrier yesterday? Looks like someone forgot to log in with the correct details to me.

[temujiin] 29/7/2021 16:46

Hi Sleveen, yes he does appear on the surface to talk up his current position so it's always best to view posts by anyone, unless proved reliable, as potentially suspect.

[sleveen] 29/7/2021 16:36

and so you should :-)

[imnotspartacus] 29/7/2021 16:33

This is looking cheap, bought some more.