Hummingbird Resources Share Discussion Threads

[borderterrier1] 14/11/2024 17:53

Gentlemen. Approximately 5-6 years ago I was told things about Hum that I found disturbing, more or less along the same lines as the information trader465 put on here. I believed at that time that two of the "investors" had reported this to the FCA but nothing happened. We all know now that was because Hum were not registered with the FCA.

They are however registered with AIM and the way I understand it, there is an on going investigation. The speculation about "what went wrong" has been considerable. Wouldn't it be better now for the long-term investors to wait for the outcome of that investigation before they cast their vote? If not, why not?

[borderterrier1] 14/11/2024 14:56

Burt777 I believe in meeting problems head on. Perhaps the AIM investigation will confirm that Hum was actually profitable for the right people. If that happens, new management could make a big difference don't you think? In that case the listing may stand.

[burt777] 14/11/2024 13:51

Let’s see who accumulates when and if an offer is put forward , let’s not forget it will only require just over half of 28.8%

But yes interesting from here , they might end up having to leave it listed or offer more. Hedge fund activity will be the clue with the 8.3 disclosure.

Either way when they convert equity they intention is clear that they want the rest.

[borderterrier1] 14/11/2024 13:39

dusty42 I will definitely be voting against it. Eventually, hopefully the AIM investigation will provide some clarity.

[dusty42] 14/11/2024 13:32

"They prob have already asked the directors and minority holders and all are happy to accept 2.66"

What is this statement based on? Logically, why would any independent shareholder who paid more than 2.66p decide this was a good offer, unless influenced in some other way to pretend it was. If you ask me, any shareholders would be well advised to vote against this.. and if unsuccessful - and only as a last resort, take the offer.

[borderterrier1] 14/11/2024 13:16

I understand all this. This is now and for several years gold was being mined successfully but all the time the share price was deteriorating.

Please read the information that was provided on here by trader465. It would appear from that information that Betts Metals thrived and sales increased during that same period. Does that information suggest skimming? Who knows. But I think in view of how things have deteriorated here I believe long time shareholders deserve answers.

[tigerbythetail] 14/11/2024 10:37

Hi Farrugia!
I'd agree with that, but I'd go further. Not only is Mali finished for Westerners, but Burkina Faso and Niger (where a French uranium mine is being "taken over" by Russians) are following closely behind. All told, West African looks pretty lousy from an investment perspective.

[borderterrier1] 14/11/2024 00:15

Creditcrunchies I agree. BUT an investigation here was started before this last news came out. If criminal activity can be proved (and IMO it can) those responsible can be dealt with and not walk away.

[creditcrunchies] 13/11/2024 23:15

This is the kind of scenario we were predicting on this thread tbh. Shareholders get a token gesture then they take it private. I've seen similar scenarios on AIM, stuff like moving the head office to Jersey then taking it private where you own shares that cannot be traded worth a tenth of what they were when listed. It's what happens when they can't finance the operational costs to keep it going themselves without devaluing the business to get a deal. When I saw the debts relative to their cash and working capital I just sold out years ago. It something I monitor all of the time. Most AIM miners fail because the operational costs are enormous.

[burt777] 13/11/2024 19:42

Like you I predicted this sorry state of affairs. But in my opinion the Heist will go through and it’s all likely been engineered this way.

It is a lot easier for them to take control of the asset so I envisage no real surprises.


If they wanted admin they could have and would have done it already.

The prize is obviously Koruso at commercial run rates.

But this has been mismanaged to a high level and 2.66P for shareholders is a mere token gesture because the assets have more value as a going concern. You try put this in admin you never really get the money back.


They will be looking to the massive profits they can make sending it private.

Paying 2.66 for the 28.2% would not of worked unless they got HUM into a distressed state to take a big controlling stake.


They prob have already asked the directors and minority holders and all are happy to accept 2.66

It’s just a way of making it where they can remove the waiver , butter everyone up and paint a darker picture.

The presentation today was pointless as they can’t say anything on any front. It was more to say it’s a done deal watch out for the RNS Tuesday on the equity conversion.

Then the possible offer becomes a firm offer and voted for.

I am sorry to all shareholders but you were warned and now it’s just a token gesture to buy your shares at the conversion price.

Game over.

[borderterrier1] 13/11/2024 18:56

burt777 A lot of shareholders absolutely HAVE been robbed at 2.66p. I am confident of two things.
1. The ongoing AIM investigation may disclose a few things.
2. If Del Boy and associations are permanently removed things would improve.

[burt777] 13/11/2024 16:52

Also it’s important to point out that in today’s presentation it was impossible to say anything on any front as its market sensitive. What did people expect !!!

But for me they actually gave a nod and a wink of comfort to 19th November having an update , so for me it’s all a done deal on equity conversion which leads to an offer.


Let’s also consider directors and other people have not sold a share and advice no shareholder action.

It’s as simple as they are formalising the paperwork

This will be done quite quickly as early December their will be a vote then the liquidity event to sell your shares.

People saying they are voting no are prob in a minority , regardless I am sure some hedge funds will buy up loose shares to vote it through as a yes.


But who knows coris might decide to let HUM continue and this is all an interesting situation , I doubt independent shareholders will accept any less than 2.66 especially if they convert at that.

All my own opinion and appreciation for the negative views but the damage is done here and 20 million quid to buy independent shareholders out is hardly a lot of money.

A lot of shareholders feel they are been robbed at 2.66P

[burt777] 13/11/2024 16:41

That’s your opinion tiger but it’s the extreme pessimist view. I think Koruso is now proving the golds there. I absolutely take on board your view.

But it’s a lot easier for coris to keep this as a going concern to get their money back.

They need those contractors they are in Africa they likely have assured them that’s why the payables were able to get so high.

Quite a few things would not make sense if it suddenly went into admin. For a start it’s now profitable from this quarter.


Admin would have to be independent and with fire sale valued on Yano and dugbe considered its worth taking over and selling it.


Your not believing Koruso has gold yet week 1 of Q4 it poured over a run rate of 120,000 oz


I am sorry but at an AISC of 1400 to be safe that’s 1200 x 120,000


That’s a one year profit of 144 million on Koruso

Seems to me a no brainer to take it over for coris and paying 2.66P out to the remaining 28.2% private investors is peanuts and 20 million quid

If they convert to 71.8% 19th November that’s got to be a given that they also announce the firm offer then.

Shareholders advised to do nothing was a brave statement I think this has been going on 3 months and if they were going to put in admin they would have done it.

Gold is at an all time high luckily so these assets have a value despite jurisdiction which has always been discounted.

I totally understand why you would not take the risk here but for me it’s a no brainer.


DYOR


My view only

[tigerbythetail] 13/11/2024 16:15

I'd say 50% chance it goes through at 2.6p, 30% reduced offer made (say 1p), 20% chance full admin (remembering Coris have senior security over the assets, so they don't lose control at all).
That's a bad risk / return.
Yanfolila likely worthless now (see FT, Mali news). Dugbe buyer seemingly backing out. Kouroussa worth a great deal less than you think (jurisdiction risk, is the gold really all there?, massive trade payables to contract miner and others etc.)
I must admit, if I put myself in Coris's shoes, I have trouble understanding why I need to pay even 2.6p per share for HUM's motley "assets".
There seems to be an illusion that Coris are somehow getting a great deal out of all this. They're not. They are just trying to salvage what they can. They will probably end up getting back less than they put into HUM.

[burt777] 13/11/2024 15:57

Let’s break that theory down Tiger

There will be an RNS 19th as they have stated about the equity conversion.

Admin does not make sense given KORUSO is on commercial weekly run rates. Thats over 140 million in profits at the full gold price if we exclude Yano.


If this was going into admin
1.Why has CIG extended 30 million dollars and deferred debt most notably on the 6th of November 10 million , plus it’s clear they are no longer losing money. They narrowed it to a loss of 3.7 million in Q3 from 16 million Q2

Further more how much would admin cost coris on the value recoup. It’s far better taking control and it’s now a valuable asset.

One could say it’s been the plan all along.

Admin coris lose control over outcomes.


This more than likely will go through at 2.66

If they announce the equity conversion on 19th November which is Tuesday then it’s a formality as much as it can be.

This asset they clearly want otherwise it would have been in admin long ago.

[tigerbythetail] 13/11/2024 15:31

Why sell out below offer price?
Because the offer has not been made and may well never be made. (See the RNSs for precise language).
I certainly wouldn't try to arbitrage the difference between the current share price and 2.7p; the chances of HUM going into admin from here are far too high to make that risk / reward appealing to me.

[borderterrier1] 13/11/2024 13:50

Farrugia Perhaps somebody wanted Dan there? They were stocktaking all day at Betts Metals in Birmingham yesterday. I wonder how that went?

[farrugia] 13/11/2024 13:36

Pasofino Gold Provides Corporate Update on Potential Acquisition



Maybe bidder having cold feet.

And as for Hum's mali mine - that's in the doldrums as well. The junta will press for up to another 15% 'free' stake plus back taxes. There's no reasoning with the junta; you either pay up or they arrest you.

[farrugia] 13/11/2024 10:47

wow trader he gave you a great reply. It is hard for me not to think of malicious intent with the way this company has been brought to its knees. Either malicious intent or gross incompetence. But if it was gross incompetence why wasn't Dan fired 2 years ago to give it a fighting chance?

[plasybryn] 13/11/2024 10:39

Why sell out below offer price ?

[chesty1] 13/11/2024 10:37

This is dead for shareholders.

[sleveen] 13/11/2024 10:00

The answers were perfunctory.

It's a done deal.