Hummingbird Resources Share Discussion Threads

[the deacon] 20/1/2020 08:05

Interesting podcast with Eric Sprott - part of it covered his valuation metric for gold producers. He works on a base case of US$400m per 100koz gold produced. Applying that metric to HUM makes for an interesting valuation. Plenty of headroom here.

[borderterrier1] 19/1/2020 21:03

I only whinge, moan and commiserate with them about Hum. After three years of "management" by this shower, who wouldn't? And I hope I'm wrong, but my guess is you will change your mind when this is still in the low twenties in a year or so.

[goodgrief] 19/1/2020 20:09

We want to know how deep their pockets are!

[kennyp52] 19/1/2020 20:04

Might have been even more useful if they had indicated who are behind the ARX they may get involved in ?

[moneyfornothing1] 19/1/2020 17:31

You never hear from them probably because of your constant moaning and whinging, who on earth would want a friend like that!!

Still looking good, loving my investment in HUM, go you good thing!!

[dickbush] 18/1/2020 13:02

In the reply to the letter and research I sent to Thomas Hill at Hummingbird:

"I am happy to give you the assurance that the ARX mentioned in our announcement has no connection with Daulton Capital or ARX Gold. I can also assure you that the individuals which you refer to in your letter are also not involved with the ARX we are in talks with."

[borderterrier1] 17/1/2020 13:40

avsome1968 I hope you are right, but unfortunately I doubt that. But HUMRF is up 14% today on the NYSE so perhaps it is gathering momentum here in the US? I hope so. I promoted this strongly over here three years ago to some of my well heeled friends. I never hear from them these days.

[avsome1968] 17/1/2020 07:53

BT
Moving very very slowly north chart looks good, rather drift up slow than a huge spike, at this rate BT you will get your 30p back July time me think.

[borderterrier1] 17/1/2020 00:36

Or expensive skiing holidays to Colorado. BTW, where's Pied Piper Fsj these days? After your "their killing it" comment the share price is really moving N isn't it?

[zhockey] 16/1/2020 08:01

JBravo, I assume it's going on management wages

[borderterrier1] 15/1/2020 22:46

moneyfornothing1 How do you feel know about your shrewd investment now that the long awaited Q4 update fails to move the SP? With luck, (lots of it) this will be 25p...... by next Christmas. Fabulous company! Yanfofailure!!!

[roguetreader] 15/1/2020 14:35

Cheers Andrewsr for the link. Looking forward to see the full EOY Financials, but some time before they will be published.

[the deacon] 15/1/2020 11:46

APF have a 2% NSR on Dugbe, so it's clear they'll be doing their DD on any potential change of operator

[charlieeee] 15/1/2020 11:37

So far,Hummingbird has signed a non-binding memorandum of understanding with ARX Resources Limited
for further exploration and to complete a Feasibility Study on the Project.

The conditions precedent include:
the availability of at least US$30m of liquid finance
an approved management team with the requisite skills and experience to develop the project
satisfactory shareholder protections, including various anti-dilutionary rights for Hummingbird, becoming a significant shareholder in ARX
have Board representation
assist with the development and execution of all operating plans.

Further updates will be forthcoming if the ARX deal progresses to a binding nature, of which there is no current certainty.

At the end of the day, it is looking very much like a Hummingbird driven/controlled vehicle, avoiding dilution and risk of such a big project in the cash cow entity.

$30 million is no small sum just to get to feasability and the biggest risk in all of this, is that gold prices do not hold at $1500 in 2022/23 and Dugbe is a money pit, absorbing $30 million of the HUM funds, plus management time, into a white elephant.

Progress along the proposed lines leaves potential upside to HUM shareholders, but with no risk. Pulled into shape, with further exploration and Feasability study, Dugbe could be a very valuable asset, attracting interest from a major as a "ready to roll" project.

Meanwhile, for far less investment in exploration, Yanfolila's LOM can be extended and that utilizes the already invested capital. What folly it would have been to throw $30 million at Dugbe and ignore maximising utilization of the existing asset.

IMO, management strategy here is excellent. Whilst I always think of Dan as a "Tim, nice but dim", he does seem to be maturing: the pit wall fiasco probably gave him one of life's greatest lessons and luckily he (and we) survived and now benefit from the experience!

[casual47] 15/1/2020 10:25

We are probably getting worked up about nothing and this is all a big red herring.

But. It goes to show that Dan still has a lot of work to do to restore trust. This isn't just about delivering on the operational side, it's also about the quality of the partnerships and the people he gets involved with.

[fenton1234] 15/1/2020 10:14

That would be a concern and a flag the company should be aware of

[dickbush] 15/1/2020 00:14

I'm still working. I seem to have found Leslie Greyling and Clinton Greyling linked to Daulton Capital. Names mentioned by shareholders on a site similar to this one.

I have the same worry, casual47. Last time it was a few million Dollars. This asset is, supposedly, worth over 70p a share to us.

[casual47] 14/1/2020 23:30

The worry is that Dugbe is going to get the same treatment as ARX Springs, I.e. a Pump and Dump scheme.

[casual47] 14/1/2020 23:22

I found on LinkedIn a lady in Malaysia who worked for "ARX Resources" but it doesn't have more info than that.

The domain for Arxgold.net is still fully paid up according to WHOIS even though they appear to be defunct.

[dickbush] 14/1/2020 23:09

ARX CAPITAL (AUSTRALIA) PTY LTD is registered in Singapore with the same Queensland address. Like others here I haven't been able to find ARX Resources and it may be that it is nothing to do with ARX gold. Given the previous investment that proved to be a complete dud, I am still going to send off what I've found to HUM, just in case.

Aside from this worry, I was really pleased with the figures announced today. It looks to me as though the 130,000 ounces target for 2020 should become the bottom end of a new target.

[bigglesbingham] 14/1/2020 22:54

Also listed Bryan smith living at shady lane !!! If this is the company they are getting in bed with the convoluted nature of history business transaction with lack of transparency due to links with BVI I'd stay away. Can't understand why they declared the suitors name knowing it's exceptionally difficult to find info on them - bound to raise questions hence muted response by the market to the figures. One more question , 33k ounces sold 5 m debt sold down but cash went from 16m to 9m plus gold reserves 5m ?? Am I missing something ?

[charlieeee] 14/1/2020 21:59

One of the questions on Dugbe would be does the $15 million advance (sitting as a liability on HUM's balance sheet) get transferred to the new company, along with the asset, as it is still to be paid out of Dugbe future income?

If so, that will really assist in clearing up HUM's balance sheet and does add immediate value to the transaction.

Generally, paying down debt out of the windfall from gold prices is good business sense: the company sailed so close to the wind (particularly carrying on installing the second ball mill in H1 and what a good decision that now seems!).

Focus on exploration and proving up at Yanfolila is great: sweating the asset that they already have financed and doubling the LOM would send this into orbit.

HUM now looking like a well run company, with focus on milking the cash cow.