its the same story over and over again. mismanagement, embezzlement, incompetence - call it whatever you like. In the end its a transfer of assets that shareholders funded and derisked to private owners. Its bad faith, greed and mismanagement all mixed up into one. Same happened with Shanta Gold - shareholders took all the risk while private equity got to take it out for spare change. |
1knocker I agree. BUT, we all invest in a company (or we should) by doing our due diligence and research, don't we? If there is a good chance that the information we have relied on to do that is flawed, there should be protection in place to prevent that.
In this case, I believe there were two main considerations:-
1. The projected deposits just were not there and greatly exaggerated by the mineralogists.
2. The gold was actually there and some of it was "lost". In other words, trader465s posts on here make perfect sense and need looking into by the authorities.
As me and many others have now said, the Ceo here had absolutely ZERO PREVIOUS EXPERIENCE at running a gold mine. Why was that allowed to continue for so long? It shouldn't really be that difficult for the AIM investigation to figure out, should it? |
When your back is to the financial wall, you are not in a great position to negotiate favourable terms. That's life. Ask anyone applying for a 'payday' loan, or even someone trying to sell his house in a hurry.
Fortunately, i only had a very few shares left here. Stupid of me to have retained any at all. I knew it was a difficult jurisdiction, politically, climatically, in fact in every way you can think of, and that the management was hopeless. Frankly, I think I deserve everything I have [not] got.
Lets hope I don't forget the lesson I have purchased from headmaster Betts of the HUM academy of investment. |
21 days after 13th Jan then within 14 days so 2nd week in Feb. |
Tiger. Knowing what I know and have known for some time, I disagree and I believe trader465s latest post above to be accurate. I believe the gold was there but (as many others are now saying) it was "lost" along the way.
Proving exactly where it went is of course difficult because even insiders are often reluctant to "spill the beans" and divulge what they know in a court of law. But it isn't a completely impossible task and I still believe the AIM investigation will uncover the truth. The World is a small place. Perhaps those who were previously employed in a prominent position here can provide some answers? After all, as the old saying goes, there's no smoke without fire is there? |
FWIW, I disagree with Trader's analysis.
I believe Coris / Nioko have been reckless with their lending / share purchases and will find it very hard to avoid substantial losses. HUM is not some magic money mine just waiting to churn out hundreds of millions of dollars in easy profit. Its operations are deeply compromised - Yanfolila in Mali is probably a bust (exhausted mine, military junta on the take), and Kouroussa has failed and failed again to deliver the promised results. I think there is a serious question about the accuracy of the original reserve statement.
Yes, PIs have lost a bundle here thanks to Dan Betts' spectacular incompetence. But I don't think Coris / Nioko are about to make a killing. Rather the reverse, in fact. |
 Refinancing of Coris Loans & Related Party Transaction
Why Oumar Toguyeni and Geoff Eyre Are Considered Related:
Positions in Hummingbird:
Oumar Toguyeni is a Non-Executive Director of Hummingbird Resources.
Geoff Eyre is the Interim CEO of Hummingbird Resources.
As senior figures in Hummingbird, both are intimately involved in the company’s management and decision-making processes. The announcement identifies them as "independent directors" not part of this transaction because they could have potential conflicts of interest due to the relationship with Nioko
Would you believe it Toguyeni has another corporate governance job lined up lol.....
TORONTO, Nov. 7, 2024 /CNW/ - Allied Gold Corporation (TSX: AAUC) (OTCQX: AAUCF) ("Allied" or the "Company") is pleased to announce a series of changes and developments meant to improve operational oversight, improve mining operations, advance the Kurmuk project towards operations and improve corporate governance.
Allied has strengthened its Board of Directors by adding a new Board Member, Oumar Toguyeni. Mr. Toguyeni is a highly experienced global mining executive, with over 35 years of mining expertise. His career has included senior leadership positions at major international mining companies such as BHP, Alcoa Inc., IAMGOLD Corporation, and he has also recently been appointed to the Board of Directors of Hummingbird Resources. He very recently joined the board of that company in connection with the restructuring and recapitalization of the company initiated, and financially supported, by its largest shareholder |
When is the pay-out? |
As of the interim report for June 2024, Hummingbird Resources PLC (HUM) had total assets valued at $610.2 million. Their net liabilities, including borrowings and other financial obligations, amounted to significant sums, including $153.9 million in total borrowings and a net debt of $153.5 million. The company's net cash was reported at $0.4 million |
It's a regular occurrence on AIM
Crooked company directors aiming to exploit a company and its shareholders often target the Alternative Investment Market (AIM) instead of the Main Market for several reasons:
1. Lighter Regulatory Framework
The AIM operates under a more relaxed set of rules compared to the Main Market, which is governed by the UK Listing Authority's Premium Listing Standards.
AIM companies face fewer requirements for transparency, corporate governance, and financial disclosures, making it easier for dishonest directors to hide questionable activities.
2. Lower Initial and Ongoing Costs
Listing on AIM is cheaper and faster than on the Main Market.
This makes AIM attractive to smaller companies, but it also appeals to directors with bad intentions, as they can avoid the higher costs of Main Market compliance while still raising funds.
3. Weaker Oversight
AIM-listed companies are not required to meet the same strict standards for audits, independent board members, or shareholder rights.
This lack of scrutiny allows unscrupulous directors to manipulate financial statements or pursue self-serving deals more easily.
4. Easier Access to Capital
AIM offers relatively easy access to investors, especially retail investors who might not have the expertise to identify red flags.
Unscrupulous directors can use this to raise significant funds while planning to misuse or misappropriate them.
5. Limited Investor Protections
AIM provides fewer protections for shareholders compared to the Main Market, leaving investors more vulnerable to mismanagement or fraud.
For example, AIM companies can issue shares or undertake reverse takeovers with less shareholder consultation, facilitating dilution or questionable transactions.
6. Higher Risk Appetite
AIM is marketed as a platform for growth-oriented, higher-risk companies, which attracts speculative investors who may overlook governance issues.
Directors can exploit this "high risk, high reward" narrative to distract from their fraudulent activities.
In summary, the AIM's reduced regulatory burden and oversight, combined with its focus on smaller, higher-risk companies, make it an easier and more fertile ground for crooked directors looking to exploit both the company and its shareholders. |
Yep, pants down, bend over shareholders, well and truly shafted. Come on AIM, do your job. |
Gold Price Impact on Hummingbird Resources (HUM)
Annual Gold Production: 150,000 ounces.
Current Gold Price: $2,600/oz.
Annual Revenue:
150
,
000
oz
×
2
,
600
USD/oz
=
390
,
000
,
000
USD
150,000oz×2,600USD/oz=390,000,000USD
Profit Margin Analysis
Operating Cost Estimate: $1,300/oz.
Net Profit Per Ounce:
2
,
600
−
1
,
300
=
1
,
300
USD
2,600−1,300=1,300USD
Total Net Profit:
150
,
000
oz
×
1
,
300
USD/oz
=
195
,
000
,
000
USD/year
150,000oz×1,300USD/oz=195,000,000USD/year
Nioko’s Cost to Acquire HUM
Share Purchase Price: £12.6 million ($17.5 million).
Loan to HUM: $35.6 million.
Total Cost:
17.5
M
+
35.6
M
=
53.1
M USD
17.5M+35.6M=53.1M USD
Return on Investment (ROI) for Nioko
Annual Profit After Acquisition: $195 million.
Time to Recover Investment:
53.1
M USD
195
M USD/year
≈
3.3
months
195M USD/year
53.1M USD
≈3.3months
HUM Shareholders’ Loss
HUM shareholders sold the remaining 58.19% stake to Nioko for £12.6 million, valuing the company at just £21.7 million.
Actual Value (Based on Net Profit Potential):
With $195 million annual profit, HUM’s fair valuation could exceed $600 million (£470 million) at a modest P/E ratio of 3.
Summary: Who Benefited?
Nioko Resources (and Idrissa Nassa):
Acquired control of HUM for $53.1 million.
Gains a gold mining company generating $195 million in annual profit, representing a return of over 350% in under a year.
HUM Shareholders:
Sold at a massively undervalued price.
Missed out on the benefits of rising gold prices and operational recovery.
This deal heavily favors Nioko Resources and Idrissa Nassa, leaving HUM shareholders with minimal returns while Nioko profits immensely from undervalued assets. |
Mr Idrissa Nassa is the man who will end up with the gold mines.
Nioko Resources is not a mining company. It is an investment vehicle and a subsidiary of Coris Invest Group (CIG), which is owned by Burkinabe businessman Idrissa Nassa. Nioko Resources primarily focuses on acquiring strategic stakes in companies within the mining sector rather than engaging in direct mining operations.
Key Points About Nioko Resources:
Focus on Investments:
Nioko Resources specializes in acquiring mining assets and shares in mining companies.
It is part of a broader strategy to invest in resource-related businesses, leveraging financial and operational opportunities in the sector.
Recent Activities:
Hummingbird Resources: Nioko has been involved in acquiring a controlling interest in HUM, a gold mining company operating in Mali and Guinea.
Orezone Gold Corporation: Nioko acquired a 19.99% stake in this Canadian mining company, reinforcing its focus on gold mining investments.
Parent Company Support:
Nioko is backed by Coris Bank International, which provides financial leverage for its acquisitions.
Comparison to Mining Companies
Unlike a mining company, which engages in exploration, extraction, and production, Nioko Resources operates as an investment and holding entity. Its role is to provide financial backing, strategic oversight, and capital to its mining-focused subsidiaries or investments.
In Relation to HUM
Nioko's involvement with Hummingbird Resources aligns with its investment strategy but does not involve direct management or mining operations. Instead, it is positioning itself to benefit from the future profitability of HUM’s gold assets. |
Disturbingly, on the latest update, I'm surprised that FD Tom Hill is still there? Thought he might have taken "early retirement"? |
So what happened to Plathunter did he retire? |
Please lets not also forget that many thousands "invested" here as a direct result of the over 70 page dossier prepared by architect fsjamescampbell (AKA Frank Smith) from Rochdale.
We all know now that Mr Campbells report was not quote:- "100% true and factual" and he bailed out shortly after writing it. Wouldn't that be considered to be deliberate pump and dump tactics, designed to entice investors and isn't that ILLEGAL? If not, why not? |
Hi PATT!
Happy Christmas to you.
One simple explanation is for what has happened here is that the gold has simply been "lost" somewhere along the way.
Another one is that the original mineral resource estimate at Kouroussa was catastrophically wrong, and that the grades estimated were never actually there. This can happen, and I always had a funny feeling about Kouroussa - very high strip ratio, but good grades in small patches - it never did make much sense as a deposit.
Anyway, here we are. Another AIM miner soon to bite the dust. Unless AIM regulation improves quickly the whole market will follow with it. We really need to see directors being sued for every penny they have and going to jail for long prison terms. Only that will restore investor confidence. |
purchaseatthetop As the info. trader 465 put on here some time ago, I suspect you are correct with your assumption, and I think the ongoing investigation will prove that. And I did alert the shareholders here to this years ago.
Tiger. Hum were not registered with the FCA. The investigation here is through AIM. |
TBTT. I have not followed HUM but the RNS today looks like they have simply had the gold produced stolen! To deliver less than 50% of the forecast gold grade suggests that things are walking! |
Thoughts:
1. How HUM has been mismanaged (at the least) into this position is an absolute scandal. Dan Betts etc. need to hang their heads in shame. Hopefully, the FCA have enough gumption to work out what went wrong and to press charges if appropriate.
2. The RNS this morning is a clear warning to shareholders - vote for the deal or its administration. Given that HUM's new management will know how the voting is going (they can see the votes as they come in), and the implication must be that the vote is going against the deal (hence the RNS), this means that buying these shares at 2p in the hope of getting 2.7p is taking a big risk - way too big a risk in my view.
3. I'm a little bit puzzled why Coris group are offering this deal at all given HUM's blatant and ever-worsening insolvency. I can think of only two reasons: a. the mining licences are cancelled in the event of a bankruptcy; b. Coris Bank's balance sheet is not strong enough to stand the write down in the event of bankruptcy, and this is an "extend and pretend" situation. |
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