Hi Tiger. Questionable histories? Really? Nah! What an imagination you must have! You'll be telling us next that someone will think about making a film about opening a gold mine to filter profits through his Daddies bullion business (established in 1760). What a story THAT would be!!! But I doubt if anyone would believe it. Would they...............? |
Hi Trader 465!
Thanks for the post. Unfortunately, I can only uptick it once.
The Bre-X fraud is the basis for the feature film "Gold", which is well worth a watch. Only the film-makers had to tone down the actual story so that the audience would believe it!
As for Bunker Hill, Dan actually sank $2m of HUM money into an attempt to resurrect it, even though the company was run by people with very questionable histories.
Who knows, maybe someday the film rights to the HUM story might be worth a mint?!? |
trader465 It isn't rocket science to figure out. But the disturbing thing is some people really believe they can get away with this. History suggests they can't. |
From memory; before the fire at Betts private gold business in the UK, Betts were being paid by HUM to supply HUM with staff and warehousing in the UK? Why? |
This is just a massive pile of debt |
 Here are five examples of companies or situations where gold mining firms or their executives allegedly manipulated figures, overstated costs, or deliberately ran operations into debt to acquire assets cheaply or profit through insider schemes:
1. Durban Roodepoort Deep (DRDGold) - South Africa (1990s-2000s)
• What Happened: DRDGold, a South African gold mining company, faced allegations of poor financial management and asset stripping by its executives.
• Manipulative Practices:
• Executives were accused of inflating operating costs and underreporting profits from its mines.
• These actions led to the shutdown of some operations, making them appear unprofitable. The mines were then sold to entities tied to the same executives at reduced prices.
• Outcome: The company faced legal challenges, but poor regulatory oversight allowed some practices to go unchecked.
2. Pegasus Gold - United States (1990s)
• What Happened: This North American mining company was accused of mismanagement before its bankruptcy in 1998.
• Manipulative Practices:
• Executives allegedly engaged in questionable financial practices, including overstating liabilities and underreporting gold yields.
• Some insiders were accused of benefiting from asset sales when the company went into receivership.
• Outcome: The bankruptcy left environmental liabilities at abandoned mine sites, sparking lawsuits and government investigations.
3. Bunker Hill Mining - United States (1980s)
• What Happened: Bunker Hill, once a prominent mining operation in Idaho, faced allegations of fraud and mismanagement before its collapse.
• Manipulative Practices:
• Executives allegedly siphoned off profits through inflated contracts and insider deals.
• The company was left with mounting debts and liabilities, leading to bankruptcy.
• Outcome: After the collapse, environmental cleanup costs were left to taxpayers, and directors faced limited accountability.
4. Aurora Gold - Guyana (2010s)
• What Happened: Aurora Gold, a mining project in Guyana, saw its financials come under scrutiny after the company struggled with debt despite significant gold reserves.
• Manipulative Practices:
• Allegations surfaced that management overstated costs and diverted cash flow to related companies.
• The mine was later sold to another company at a fraction of its valuation, with insiders allegedly benefiting.
• Outcome: The mine continued operations under new ownership, but questions about past management remain.
5. Busang Gold Project (Bre-X Fallout) - Indonesia (1990s)
• What Happened: Following the Bre-X scandal, many smaller operations in the Busang region were sold off cheaply under murky circumstances.
• Manipulative Practices:
• Smaller mining operators allegedly overstated costs and transferred assets to entities controlled by insiders.
• Profitable concessions were undervalued and resold, enriching those with insider access.
• Outcome: The lack of strong oversight allowed these practices to persist, damaging trust in gold mining ventures in the region.
These examples highlight how manipulation in the mining sector can devastate investors, communities, and the environment while enriching insiders. In many cases, weak regulatory environments or lack of transparency allowed these schemes to flourish. |
Hi Tiger. You are correct and some of the "seriously upset" people have very long memories. |
Tiger. For years BushyTailed has peddled dangerous nonsense on here to such an extent that at one time I was calling him BushyBetts because I suspected nepotism. I still do. |
Resolute (RSG) RNS out. They've now paid $130m of the $160m shakedown imposed on them by the Mali military junta. They're also being forced to transfer to the much less favourable new mining code for the future - so much for the "stability" agreements that all Western miners signed in Mali!
Yanfolila (a smaller operation and nearly worked out), I'm sure, is now a negative liability rather than a positive asset for Hummingbird. Probably the best thing HUM can do is sell it for next to nothing to a local operator in favour with the junta and get out.
All told, I wonder if Mali's actions won't set off a wave of resource nationalism in West Africa and other governments won't follow suit. Gold mining makes up a huge proportion of the exports of some of these countries (e.g. Mail - 50%), so it must be a tempting target.
On reflection, I'm not at all convinced that HUM will pass Coris's due diligence, and the 2.6p offer will ever be formally made. I think administration. |
sometimes I wonder if hedging at such a low price makes them perpetuate the situation till he hedge runs out next year. |
I bought at 1.3412 other day only 200000 but worth flutter |
I disagree. IMO, you overestimate the value of Kouroussa. (After all, it hasn't produced properly for 18 months, so why should it suddenly start now? There are clearly problems with the deposit). Coris will end up losing money on this business as well; they're just trying to reduce their losses at this point.
I think the chances of administration are 50%, so even for a small flutter, I'd want a share price of 1.3p to make this bet worthwhile. (Which I'm sure I won't get, by the way). |
You're definitely correct there in that infinitely better to avoid administration. This will be producing such that the £20m will become a drop in the ocean but unfortunately long term shareholders won't see anything apart from the 2.67p. Personally think it's a no brainer re risk reward for a small flutter. |
BushyTailed peddling some dangerous nonsense on the other board. If shareholders reject this deal, I see HUM falling into administration immediately, and not "multi-bagging". The company is plainly insolvent.
I imagine Coris (even though they have security over the mines) are concerned about the mining licences being revoked, which is why they are seemingly willing to pay $20m or so to avoid administration.
Still, nothing is definite. The situation is Mali is clearly deteriorating fast, & the longed for buyer for Dugbe has seemingly walked. To pay 2p to maybe get 2.6p and maybe get nothing is a lousy risk reward in my book.
I'd categorise the 50% rise today as death throes. It's remarkable how often you get a violent rise like this when an AIM toddler is on its way out. |
Shorters on fire lol |
Hi Cinoib I think you are right.
It's a bit baffling to put someone with zero experience in charge of a gold mine, unless there was a good reason? I was told the answer years ago by someone who thought he knew why and it looks as though he was right. Perhaps trader 465 hit the nail on the head with his info. and the AIM investigation will clarify something? |
Evening B.T. looks like my 3p offer for the whole company was a bit over priced, I think 1p might be closer to the mark. |
My 4 Rules of AIM - Never ever average down. Back your winners and cut your losers. If you suspect management aren't both competent and honest run a mile. Never ignore jurisdiction risk; it's often the biggest risk of all.
RIP HUM. |
aim999 Looks like Dans "good run" is coming to an end? And Plasybryn. You lost, we all did. "Someone" did very well here but it wasn't us. |
burt777 Looks as though this is an "open mouth, insert very large foot" time for you? Bravo!!!!! |
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