Hummingbird Resources Share Discussion Threads

[redtrend] 19/7/2018 19:30

UKGeorge - again I agree with you, the options are a disgrace. After the stellar delivery, on a company specific level this is one key item that severely impacted sentiment. I was so incensed at the time I nearly sold my entire holding.

By all means set up a company option scheme to reward exceeding (not meeting) expectations, but setting it at 1p, ridiculous.

To at least save some sentiment lost on this particular subject, they should buy back 6.2million of shares to be put in treasury to cover the options, so there is no dilution.

On a somewhat related matter and to be fair to the board and particularly Dan Betts, he owns some 5million of shares already or 1.5% of the equity. He has a huge amount of skin in the game, so his response to the question on why he hasn't bought more shares was fair enough, particularly as he has 1.5million to come in the options too. But let's not go down there again!

As you say, all in all great set of results. Now if only the shiny stuff will play ball

[ukgeorge] 19/7/2018 17:16

31.6p is the 50 mda, so a small positive is that we closed above that today.

32.7p is major resistance from the downtrend from November 2017.

The sooner the company can buy shares in the open market the better.

These were great results.

Gold is at the lowest it has been all year and looks as though it will be going lower which is not helping.

[ukgeorge] 19/7/2018 16:34

FSJ, thanks for that, there is no set guidelines for AISC so they can really do what they like. Best just looking at change in cash.

[squash90] 19/7/2018 16:29

Bad day at the office was expecting more

[ukgeorge] 19/7/2018 16:26

No the 1p options will just dilute everyone and has set a precedent. That option deal is the worst I've ever seen. Even a crash to 10p and they have a 10 bagger. They all get paid to do their jobs. It was a disgrace and a worry going forward as they can steal several % of the company every year.

The question at today's conference call "why don't directors buy in the mkt?" Lol er buy at 30p or shall we buy at 1p.......

[casual47] 19/7/2018 16:19

The 1p options certainly won't affect AISC

[fsjamescampbell] 19/7/2018 16:15

UKG - I did query Bert a few month back on the AISC covering all wages bonuses and London office / hq running.......he said AISC covers approx 50% of the HQ costs wages and so on.....so all in all not a bad return at all!

[chipperfrd] 19/7/2018 15:58

They can hardly ignore Dugbe.
At last count it had JORC resources of 3.88Moz.

Capex was US$212m. NPV was US$337m at an IRR of 43.4% using a 10% discount rate.

At a time when very few large new deposits are being discovered it would be extraordinary for Dugbe to remain undeveloped.

Yanfolila should provide a healthy cash flow to help finance that project and will move HUM up the scale as a multi-mine, medium scale producer.

Chip

[casual47] 19/7/2018 15:29

Sceptical about theories that go too deep or which vest investors/funds/II with capability to reflect on multi-dimensional variables and bestow them with lots of forethought. The truth is usually much simpler e.g. quick buck traders, early investors taking profit. Especially as moments of high liquidity, like today, allow impatient folk with sizeable holdings to offload them.

[charles clore] 19/7/2018 15:19

Whatever the results, there will always be someone who finds something to moan about or a reason to sell. I am very pleased with the way the company is performing and will be adding on any price weakness.

[utrecht_00] 19/7/2018 15:16

re the languishing sp- i think and this is pure conjecture- talk of expansion into liberia, US,and other minerals spooks the market. Its one thing to have successfully delivered yanifola, but to repeat time 5 is something else. Plus all the costs of doing it that would swallow up all of yanifola profit and more. I suspect that if they said we've extended yanifola life to 10 years. We are not going to chase more mines, we will run this into the ground and return all profit to shareholders then this would rocket. over 10 years a npv of say $600mm profit might be circa $400mm. At a current market cap of $150mm, the yanifola only strategy would easily double the market cap. Markets don't like risk and I suspect the use of future funds for risky expansion efforts is the real reason this is deeply discounted. If it continues and I think it will, then its a takeover target but nowhere near its real worth.

[ukgeorge] 19/7/2018 14:39

Q3 results, could be Hummingbird is debt free, has found the meaning of life stumbled across the cure for cancer, found a diamond the size of a football and won the euro millions mega rollover and the share price will likely still be in this downtrend.

EPS could be circa 6-7p this year maybe 10p next year....

Do they have a tax holiday? Does anyone know?

[chipperfrd] 19/7/2018 14:36

AISC include G&A and Royalties.

The Government's share comes out of the bottom-line NPAT and does not add to AISC.

The Government are a 20% stakeholder.

Chip

[utrecht_00] 19/7/2018 14:09

UKGeorge, then we have the gov's % and tax off the aisc, so i prefer to think of it closer to $900, truly all in. So $400 of pure profit per ounce.

[jbravo2] 19/7/2018 14:08

Quite right ukgeorge except they sold 38726oz to achieve that reduction in debt.
16.4m/38726 = 423
1307 - 423 = 884 AISC ($/oz)
Fabulous results either way. I shall be buying.

[zeberdie] 19/7/2018 13:39

Must have put his pink knickers on today by mistake. Always makes him ratty by all accounts.

[ukgeorge] 19/7/2018 13:30

Redtrend agree with you totally. I guess that the company head office costs have not been included in the $790/oz figure that is the normal one. If we use $16.4M as fcf, then back calculate the margin is $495/oz from $16.4M/33.1koz. The sold price was $1,307 -$495 so the true company level AISC was $812/oz.

This is extremely good puts HUM at a guess in the bottom quartile of the industry.

Quarterly profits 3.45p per share.......

[fsjamescampbell] 19/7/2018 12:57

Cheers UKG - Yes rileyma i agree with your assessment.....i felt for the chap who asked the director buying question. To be fair though i did like Dan's initial answer.....he should have left it there though, no need for the snippy element at the end!

[redtrend] 19/7/2018 12:54

FSJ and UKGeorge - not to nitpick but Net Debt has improved by $16.4 million since last quarter, so for me the FCF in turn is $16.4m.

It's a far simpler metric to track and more accurate. AISC is sometimes calculated differently across miners and despite the "all-in" in AISC, does not include all costs for a company.

[charles clore] 19/7/2018 12:53

No matter how well the guys at Yanfolila have performed, the market remains remarkably unimpressed. I cannot understand why so but there must be a reason. Anyone think of anything?

[shortarm] 19/7/2018 12:43

Per quarter!!!!

[rileyma] 19/7/2018 12:39

Operationally outstanding company
True value not reflected on any metric.
Highlights the need for buybacks which cant come soon enough
Disappointed at the attitude towards director
Purchases,but there choice,sends a poor signal
But otherwise bang on 👍

[ukgeorge] 19/7/2018 12:27

$17.1M = £13.18M

356M shares in issue

£13,186,000 / 356M = 3.7p free cash flow per share.......

[ukgeorge] 19/7/2018 12:24

The $790/oz is only in relation to the 33,101 oz Au produced so $17.1M of free cash flow in Q2 very impressive

[fsjamescampbell] 19/7/2018 12:21

$790 / oz AISC - 38,726oz sold during Q2 @ $1307 / oz - 38,726 x $1307 = $50,614,882 of which $20,021,342 is FREECASH......simply - WOW!!!!!!!!!!!!