Hummingbird Resources Share Discussion Threads

[lowtrawler] 22/3/2024 09:56

Temujin, the delays were already going to mean additional concessions from Coris. The issues with Corica simply compound the problem and bring it to a head earlier.

Given the level of debt, Coris don't need to engineer anything shady. As I said yesterday, if HUM were dealing with a Western bank, shareholders would almost certainly be wiped out. Resolution of the current issue needs Coris involvement and will have an adverse impact on shareholders. How adverse remains to be seen.

[temujiin] 22/3/2024 09:40

HUM, were an instigator for SMO gold, signed up to the gold council organisation, and put a lot of effort into ESG. Its hard to believe they would try and do one on their mining most important contractor.

I suspect Corica have struggled to do what they said they would do, but are arguing that its not their fault for xyz reason, like lack of fuel. HUM are probably saying well the contract doesn't exempt you for any of xyz so were withholding a proportion of payment.

Both sides probably have a reasonable case. I suspect the letter of the law is on HUM's side, but perhaps Corica have 'some' not unreasonable excuses.

Coris being by far the biggest SH, need to mediate asap. Unless of course Coris Bank have done a shady deal with Corica to sink HUM so they can snap up Kouroussa just before they start taking out the good stuff - but that's pure utter speculation.

[kennyp52] 22/3/2024 09:15

I think the Corica issue is a simple example of arrogance .. Betts and his team have to get outside contractors in so they can blame someone else . The no blame game . This will probably get a bid it is so cheap now and go for next to nowt with Betts seeking a way out and big brown envelope ? They will not take it private as they don’t know what they are doing 🤷‍a94;️

[laurence llewelyn binliner] 22/3/2024 09:07

#PH, it was Junction mining, and they took over from AMS, both of which failed to meet tonnage contract commitments through not right sizing the fleet or repeat breakdowns, then straight into the Covid lockdowns and spares not being available..

Corica won the contract on the basis of them being the biggest, best and safest company in the sector, so I am still struggling to understand how they too have failed to get enough men and machines into Kouroussa, perhaps as I indicated yesterday it is simply that Corica have run out of machines to send in and people to drive them and have over reached..

We are able to continue mining with the 5th fleet and back up miner, but how soon they can ramp up is the unknown, we need Corica back in and getting on with it, pay them half what is owed as a compromise and the rest when we are in the pay dirt might do it, withholding payments is a poor strategy and would always end in a walk out sooner or later..

[plat hunter] 22/3/2024 09:03

Can anyone remember who the contractor was at Yanfolila prior to Corica?

[borderterrier1] 21/3/2024 20:51

Gentlemen. You can't continually pay inexperienced management big bucks for doing virtually nothing for many years apart from making irrational, loss making decisions. Something has to give, looks like it now has. It would seem unlikely IMO that replacements can be found to straighten things out now, I would speculate nobody will be foolhardy enough to take this on. My guess now would be that the bank will pick over the bones, the SH will be well and truly shafted and get nothing.

[creditcrunchies] 21/3/2024 19:41

Corica says it's had over 20 years of history contracting with major clients and is proud to have had zero litigation until of course they started working with HUM. I think this comes down to not having sufficient funds to pay for operating costs to me. If HUM is going to get other contractors 1. They'll need more money to fund it 2. They'll have a legal case against them for non payment of almost $30 million

[borderterrier1] 21/3/2024 17:33

I told you all years ago the the Ceo didn't give a rats a$$ about the shareholders and should be removed but I was the village idiot. Back came the comments:- "Oh, poor DB, he's had some bad luck but he's doing a great job etc. etc. he DID build the mine on time and on budget." Errr, no, he didn't. No point in explaining again and no amount of "useful commentary" you provided then helped, nor will it now. These guys are crooks, plain and simple, but there's no point in whining about it. Nothing to see here now, move along...........

[lowtrawler] 21/3/2024 17:31

BT, you may recall that I concluded HUM would only be investible if they made a success of Kouroussa and I would keep a watching brief for potential investment at that point. As it happens, I concluded HUM was not for me a few months ago.

I have taken companies through issues close to what HUM are currently facing and believe I can provide useful commentary and talking points that may otherwise be missed.

[lowtrawler] 21/3/2024 17:16

Farrugia, it's not an impression you get, it's the truth. I remember taking issue that the COO wasn't even based on the ground. Every year, HUM are hit with production issues because they require the contractors to self manage and they have historically had little clear instruction.

HUM have been very good at obtaining funding and making quick build decisions. They have been appalling at managing the mine after it is built. I also get the impression that the mines are built to meet a deadline / budget rather than a design of what is required for their efficient running.

[farrugia] 21/3/2024 16:13

I'm not saying this is a great situation - we need a change of management but we have been saying this for years! I get the impression that we don't have full-time boots on the ground.

[creditcrunchies] 21/3/2024 15:12

don't take any notice of scaremongers they're just looking at the financial reports. It's just a blip in operations

[tigerbythetail] 21/3/2024 14:10

I can envisage several conclusions to HUM's story from here.
But in none of them do HUM's current shareholders benefit. At the least, HUM will need to raise new equity at a massive discount to the current share price just to keep going a while longer.
Possibly Coris Bank walk away with the prize, possibly there is no prize at all. But there's no money to be made here by going long, and (I believe) the bookies (always in the know) have closed down shorting this stock.

[farrugia] 21/3/2024 13:55

lots of fearmongering in here. These guys have another profitable mine operating plus assets in Liberia. And if the worst comes they could always do another rights issue. But Hocschild accumulated $250 million debt just building the Maria Rosa mine in Brazil!

[plat hunter] 21/3/2024 13:44

How's Cora getting on Chesty, I didn't take your tip at 20p so not been following it?

[chesty1] 21/3/2024 13:32

Whilst you're busy counting Plat the market is dumping!!!

[borderterrier1] 21/3/2024 13:00

lowtrawler Why have you decided to come back and comment on here? Is it to gloat? You argued incessantly with me years ago about what a good thing this was then bailed out if I remember correctly? So, why the recent intrusion?

[lowtrawler] 21/3/2024 12:39

cc, if HUM were funded by a Western bank, it is unlikely they would have been able to get the same level of debt funding and it also unlikely the bank would support them through the current crisis. Pretty much everyone would expect a debt for equity swap and current shareholders to be wiped out. Coris could go down that route. I don't know.

What I do know is HUM are at the mercy of Coris and shareholders should be very nervous of what Coris choose to do. From their perspective, it might be better to take control, remove the current management team and restore relationships with Corica. It will be very difficult for the current management team and Corica to continue working together.

[creditcrunchies] 21/3/2024 12:31

The bank will want more flesh as well whilst the contractors are quite happy to resolve this through the courts

[backmarker] 21/3/2024 12:23

Unfortunately everything is a guess at the moment. We have so little information. We don't even know if mgt has gone out to Kouroussa. Last heard of in Canada?

[aimscam1] 21/3/2024 11:57

I see the small bounce yesterday has gone and now back down it goes. FRAUD company this now excuses after excuses over the past two years great plan to get rich quick over a few years AIM at its most corrupt .

[lowtrawler] 21/3/2024 11:57

desha, at a complete guess:

HUM have tight repayment schedules which can only be met if production rates hit target Consequently, they have clauses in the Corica contract requiring them to deliver the production targets. HUM expect to feel pain from any delays and so have passed some of that pain onto Corica in their contract.

Production delays in mining can happen for many reasons, only some of which will be under the control of the contractor. As you would expect, the contractor and HUM have been working to alleviate the delays but it has not been fully successful.

The delays are such that HUM have withheld significant payments from Corica and Corica do not agree with the quantum of the payments withheld. It appears the size of payment outstanding has caused Corica to down tools.

It is unclear whether HUM have the cash available to make sufficient payment that Corica will return to work. It is also unclear why they have not provided the guarantee required under the contract. If HUM have the cash available and it is simply a dispute over whether it is due, they could easily resolve that part by placing cash into ESCROW and agreeing a disputes process. I assume the guarantee will need to come from Coris.

HUM need to get production back on track which means getting Corica back on site operating at full capacity. They can ill afford even a short delay. With the dispute now being played out in public, I expect only intervention from Coris will break the deadlock. It will most likely require an additional cash facility from Coris as well as their guarantee. The additional facility will need to cover the dispute and also any cash impact from the delays currently known or expected.

To date, Coris have been more supportive than most Western banks and so we need to see how Coris respond this time around and at what cost to shareholders.