Hummingbird Resources Share Discussion Threads

[dusty42] 17/11/2024 21:14

You didn't really answer the question of why you wouldn't vote no. It's not like that will reduce your options post vote. The only laughably small danger is your no vote could result in it going into administration.. and I think we all know that is not really in anyones interest, particularly that of the number one shareholder and number one lender.

I am not a holder on your scale, but I will certainly vote against the waiver. In reality, if it is voted down - some other arrangement will be reached and the company will continue as a listed company. This is a better outcome for ALL non Coris parties, I would argue - yourself included.

You paint Coris as benign, just protecting themselves, but that is not really true. They are behaving as a predator, DB and co put hummingbird in a weak position and they are trying to steal it cheaply from current shareholders. If the declared position of Kouroussa is true, the company is viable as is(well, with new management is an extra bonus).. and just requires some slight wiggle room in it's debt terms. Coris could just provide that - they'd still stand to do very well out of the situation in the medium term.

[burt777] 17/11/2024 20:49

Hi Dusty it’s more to do with the situation I’m invested as I knew it would end up un a situation where coris struck.

Sadly there are ways that coris and the company can paint a blacker picture and they hold all the cards so pointless fighting them.

Plus people are selling at this price so what does that say , I’m surprised it’s dipped this low as the debt to equity will happen in all probability as it suits the situation.

Could I vote No ? Yes I could as the situation evolves most certainly it could be commercial production is announced and the board feels it can juggle. Couid be suddenly a higher offer arrives for Dugbe or the current bidders getting finance sorted.


Could be coris decide it’s better to keep the listing and some other alternative funding partner arrives.

So many possibilities really and this isn’t done.,

With Koruso likely at commercial run rates that’s big extra cash flows. They have a slight chance of coris backing off a full takeover but sadly the 71.8% looks done.


See what Tuesdays update looks like.


Lastly on the LSE board I find it hysterical they are trying to find a link between me and Dan Betts. I cannot stand the guy!!

But my holding is fully disclosed to the market. People try find conspiracy where their is none.


I personally am very sad for shareholders here but that’s investing and I am investing in the current fear as this is not going under , it’s valuable and a going concern.


Coris just rightly want to protect themselves by taking it private and the blame lands fair and squarely with the management.

It’s a moving situation so I’ve not actually decided what I am doing with my shareholding.

[borderterrier1] 17/11/2024 20:46

dusty42 I agree 100% with what you say here. With different management this absolutely could be profitable. Multitudes of shareholders have already said that. Get rid of Del Boy, Tom Hill and the other hangers on. Put some DECENT management in charge. Simple.

[dusty42] 17/11/2024 20:14

Ha.. ok burt, you being goldinvestor makes some sense. I was wondering why on earth you seemed pleased at the prospect of voting yes and getting 2.6p for your shares.

A question for you - why would you not vote no? If this can be blocked(hard for me to understand why any remaining true independent shareholder would not vote 'no').. then surely the prospects for your fairly significant holding are better. And if the no vote fails, it surely doesn't mean you can't accept any offer?

Lets be honest, by the sound of it the company is very much viable as is if kouroussa is pouring 2700 ounces a week, not to mention any dugby sale. This is not likely to go to administration.

[borderterrier1] 16/11/2024 23:58

burt777 All well and good. And I also predicted that this would happen because I had good reason to. Nobody listened. But don't the long time shareholders need to know exactly why the co. has deteriorated to such an extent over 5-6 years? Where are the missing millions? I don't believe PP management is the only problem here. Nor does trader465.

[burt777] 16/11/2024 21:11

In summary

1.coris deferred the 31st of October payment to provide liquidity
2.Given the final 10 million tranche to likely pay suppliers
3.Hum a likely profitable now
4.Coris are converting the full 30 million CIG loan to equity at 2.66 meaning they have 71.8%

Does that sound like a bank planning admin ? No

Then they can make a firm offer

The waiver can be voted to be removed and the full timeline is given to market.


I’m 99% certain in my mind that all this will happen. Big companies fund managers often make a binary decision based on nothing more than risk analysis.


It spooked a few people the big sale but it’s a small percentage of the shares in issue it’s just liquidity is poor.

I think it will recover Monday above 2P as people look to Tuesday. And if Tuesday it’s a done deal or indications a formality. Then The marker makers open it up far higher


All in my opinion

DYOR

[burt777] 16/11/2024 20:56

Kenji hope you read this board as well , I deleted my profile on LSE , I am gold investor. I hold 1.31% it’s disclosed to the market. I thought I would have to remain silent so thought it best to delete my profile but I am assured I can have an opinion.


The drop is only due to liquidity been low and should recover Monday a tad in my view . Doubt their will be many sellers , their was no real sellers at below 2.10 level it’s just someone needed the money in a hurry and dumped 11 million in one trade. For the market to swallow that in one go they clearly must have buyers higher.


The current share price is irrelevant and I’m surprised it’s gone this low myself , but it represents uncertainty and people don’t like that. But for me the company has been clear….they plan to update the market 19th November or Tuesday next week.


Everything points to the debt for equity been done at 2.66 as that’s the term sheet , it takes time to draw up and do the due diligence but clear Tuesday could be the day Whilst strongly advising shareholders do nothing.

Clearly people don’t trust the company anymore hence people selling under the debt of equity conversion and potential offer.


For me it’s a basic fear thing of losing the lot but people might want to read the RNS for clues that won’t be the case. This isn’t a company going into admin . It’s had liquidity pumped in 6th November and has plenty overdraft. Plus its weekly run rate is double normal gold production and commercial production will likely be deemed after 30 consecutive days of that run rate.


All in all I’d be very surprised if they were not cash flow positive , the issue was the debt repayment and dugbe sale not happening yet. But it’s not bad news as there are other interested parties and the current bidder is trying to get finance.

Coris I trust and not HUM as they constantly keep supporting this. They have deferred the latest instalment with the interest payable end of December only.


Does that all sound like this won’t go through. Coris need to get full control so it’s my view it’s a done deal they convert. If they don’t it remains a going concern now generating significant cash (speculation) based on the weekly run rates at Koruso.


Mali fear might of driven the share price lower but really that situation was always around in the share price and the company says it’s close to an agreement.


So all in all this for me isn’t done

My investment at 2.20 was based on logic and coris self interest in getting debt to equity swapped to gain most of this. At that point the thing looks viable to me and that’s why coris are going to in my opinion offer 2.66


People are controlled my emotion they have lost a lot of money , but if you stop and think and apply logic and read the full RNS it’s clear that the probability is high that 2.66P stands.

This isn’t investment advice. But most people don’t want to invest in the arbitrage opportunity as they think why risk 100% for 20-30%

But come Tuesday or after that with the confirmation coris swap debt to equity I think this quickly rebounds.

Also theirs all sorts of possibilities that coris decide to leave the listing in tact of shareholders vote no.


Just connecting all the dots but why on earth would they put this in admin at this stage.


I predicted 100% that HUM would end up in this situation, now I will back myself to be correct again.


But do your own research and only invest money you can afford to lose. For in any situation factors and risks appear that you could not foresee.


For me this is a simple Heist by coris and u trust in them not the company to deliver.

[borderterrier1] 16/11/2024 20:25

Burt777 Sad really. Even Bernie Madofs ponzi scheme victims were awarded something after the enquiry.

Of course, Madofs company was full of nepotism. Some of the people who lost money did take revenge and many of the family members were found murdered.

[burt777] 16/11/2024 15:40

Sadly over here they are toothless and nothing will be done.


The only thing left here is a cheap takeover

Coris will in all certainty convert debt to equity and then have complete control.


What I do find strange is why people are selling 35% below the offer price.

Tuesday they clearly are looking to get the debt to equity RNS out and advised strongly shareholders take no action.


Coris do not really gain anything by putting this in admin as they will want a running saleable / profitable going concern.

It’s only temp fear , come Tuesday or whenever the RNS lands the share price will be back up nearer 2.50


Easy money from here for those of us that understand how to read between the lines.


Feel sorry for the panicked sellers thinking not prepared to wait. Would rather sell 30% cheaper than have a sleepless night. I get it. But I think people should just look at this logically. They want full control.


Putting it into admin will not benefit coris

They could not hint anymore that this is a done deal with paperwork on the way and an upside Tuesday. Don’t throw your shares away cheap theirs a further chance of them getting voted down and the cash flows save the day.

It’s clear Dugbe buyer was to slow and this is the companies plan B


HUM never seems to get leaks and things always tails people by surprise so I doubt anyone that’s sold knows anything. The 11 million seller will prob be able to make the 30% in something else and does not want to hang about.

Should be a move back over 2P Monday as people see a Tuesday RNS indicating the debt to equity conversion. Let’s also realise that debt is unsecured and why on earth if they planned admin would they have extended 30 million and deferred debt.


So the share price is a gift at the min

[borderterrier1] 16/11/2024 13:26

Burt777 Not sure if I understand your thinking here. If the AIM investigation proves conclusively that there was something amiss here, how will "they" make a lot of money out of it? In other words, here in the US the FTC would prosecute. This co. wasn't registered in the UK with the FCA. What would be the probably consequences of an AIM investigation?

[burt777] 15/11/2024 22:31

No doubting it’s the end game and the damage was done , all my point is that this isn’t valueless to shareholders. It should be pretty nailed on that 2.66 equity conversion will happen.

That is the end game here not admin

And then the asset pass’s to their control and they will make a lot of money out of it.

[borderterrier1] 15/11/2024 21:46

Never mind Plat and Infinity888. Now you can fill not only yer boots, but yer waders!

[burt777] 15/11/2024 20:40

What I meant is Yano has been discounted for a long time in value.

I think people should read the full RNS again as it’s clear this isn’t over here and Tuesday the 19th November is when they update on the subscription for the debt to equity. Then they have a few weeks max to make a firm offer. But given the offer can only happen if the subscription happens that’s why in my view it said ‘possible̵7;

It’s clear these discussions have been well advanced and there was no leaks. So I still expect with commercial production likely and CIG and coris deferring debt and forwarding liquidity plus they have an overdraft and should not be losing money on a run rate that is commercial production.


All in all I think fear is on the ground through lack of understanding and uncertainty around the proposed restructure.


I expect it’s a done deal as it hands control to coris

But clearly some think it might go into admin which is bizarre thinking given it’s had further deferrals and more liquidity just at a time where it’s likely gone into profitability.

I don’t think this is over my a long shot I just think posters on both boards have capitulated. But selling out at this share price is more fear than logic as coris will want this asset.

To stop this operation in its tracks while it is on the cusp and break all the suppliers relationships prob would half the value of the asset , cost a fortune to coris and damage it’s reputation in Africa. Its been very supportive , if not to supportive so expect its of its word to save this situation.

[borderterrier1] 15/11/2024 19:16

Exclude Yano? Perhaps "the asset was always producing a lot of gold". It's where the gold ended up that worried me.

[burt777] 15/11/2024 16:21

Absolutely understand why people think this is a lousy risk. But I look at things like this , coris are far better converting to equity the CIG loan , why lend it 10 million more on the 6th November ?

Surely they will convert then the share price gets a shot in the arm as people realise the 2.66P offer is coming. Nobody gains from admin when you have an asset that’s producing a lot of gold , exclude yano

Today’s drop was one big holder deciding they want the money now and don’t want to wait. It probably means absolutely nothing other than they are taking the hit now.

Nothings changed and the share price is irrelevant.
All that matters is they convert debt to equity.

Update Tuesday we have been promised. I’d of expected a lot more selling after that dump if there was a leak of coris changing their mind.

It’s for the brave now but 35% arbitrage is a nice return from here if you have the stomach for it.


Shareholders were Strongly advised to do nothing. I’m on the side of logic on this one , admin suits nobody.

[chesty1] 15/11/2024 15:00

Looks very sick now!

[dusty42] 15/11/2024 12:03

"IMO, this is a lousy risk-reward to try and arbitrage. Yanfolila is finished (see recent events in Mali), the Dugbe deal has seemingly fallen through, and Coris have no reason to be generous to equity."

You have no more idea of the state of any deal for Dugby than the rest of us - beyond what information has been released, which did not say it had 'fallen through'.

Coris are only interested in what Coris is trying to achieve. Which is not aligned with the interests of shareholders that are not associated with Coris. They are trying to cheaply take over the company as it is on the verge of reasonable production rates(we can see this from kouroussa's latest declared weekly production). To me it seems utterly nuts that there are apparently independent shareholders on here 'saying' they are going to vote in favour or what Coris is is seeking to do. Why would you do that? If you believe your shares are truly worth 2.6p or less why did you not sell them a couple of weeks ago??? What do you believe will happen if you exercise your right to vote against this? Coris certainly seem to believe the shares are worth more than 2.6p.

Any value here is about Kouroussa and to some degree Dugby, the Mali operations are a fairly irrelevant sidehow imo. Hence the fearmongering regarding the tax situation of a marginal operation is also disingenuous or misguided. The Mali Junta have very good visibility of which mining outfits are capable of paying them more tax.

[1knocker] 15/11/2024 11:12

Yes, I'll tell you. This is HUM. Everything which looks good turns out to be 'fool's gold' !!!

[tigerbythetail] 15/11/2024 11:10

Biggles - Because the offer to buy shareholders out at 2.6p has NOT been made, only mooted, and may be reduced in value or never made at all.
IMO, this is a lousy risk-reward to try and arbitrage. Yanfolila is finished (see recent events in Mali), the Dugbe deal has seemingly fallen through, and Coris have no reason to be generous to equity.

[bigglesbingham] 15/11/2024 11:04

Anyone tell me why I wouldn't by at 2 to get 2.66?????

[1knocker] 15/11/2024 11:03

Those who have been saying for as long as I can remember that they see light at the end of the HUM tunnel (and especially those who backed that assessment with purchases when the price briefly spiked up a bit toward 10p) now appreciate that such light was an oncoming train.

Education is expensive, but lessons are easier to remember when you have paid heavily for them.

[burt777] 15/11/2024 10:45

Interesting the market will pay over 1.95 for 1 million shares , feeling that night their must be a big buyer as well as seller.

In the Scheme of things it’s all irrelevant I guess. Fun and games. Would not be surprised to see the share price up later.


Tuesdays update will be interesting surely they have no choice to convert debt to equity and the preludes the possible offer.


The Mali goings on are a side show that will of been going on all year

HUM is a small loss making company in Mali I doubt they are in the same league as Barrick and resolute and deals will be struck. It still has a value but I believe that the only thing that matters is Koruso and it’s got to be worth taking it out at 2.66 along with the Dugbe asset

[burt777] 15/11/2024 10:04

The market is deciding that 2.66P is a good offer currently. Regardless of where we are or the potential for investigations I’ll be voting yes with my shares.

It’s clear that the big sell would rather cut loss’s now and take 35% less

So I am sure they will get the votes up at 2.66P easily.

News on Tuesday will give all the indicators.