Hummingbird Resources Share Discussion Threads

[redtrend] 21/1/2020 17:39

Management have 3% + options, more than enough skin in the game.

To management a 10 bagger would see their £2.52m turn to £25m... I think that's enough to care.

Personally though even at $2,000 gold spot I think 10x bagger is a bit ambitious. At current gold spot of $1,500+ if HUM deliver and this gold spot can be maintained, I could see 45-50p reached within 12 months. Gold at $2,000 I could see £1 (take longer than 12 months), but something bigger needs to happen to see £2 (10 bagger):

- extend LoM past a rolling 5yr (open pit 5yrs + full mine plan for underground operations to add another 3-5yrs) to demand a higher P/E valuation.
- Acquire Cora for 2nd mine (Sanankoro) and Tekeledougou feed to extend Yanf LoM even further
- Dividends + buy backs
- Dugbe deal becomes more advanced and starts to realise value
- other organic growth options

[borderterrier1] 21/1/2020 17:13

Plasybryn So, if what you say is correct, why have none of the management got skin in the game? Don't you think that the Ceo is content to milk this for the next 5 years and keep drawing his large salary? Why should he care if the share price moves?

[the deacon] 21/1/2020 17:11

Absolutely Plasybryn. A compelling buy case indeed! Increasing noise over in NA as they hunt for undervalued gold plays. HUM featuring on the podcast will put it firmly on the value hunters radar. Commentary coming out of VRIC 2020 over the last few days points to a good year for junior producers in the gold space.

[plasybryn] 21/1/2020 16:58

Worth posting this again The Deacon in case folks haven't listened to this powerful podcast yet. You got one tick up for locating this, yet here we have Dan Durrent saying HUM is one of just four 10 bagger producers he has identified. Potential 10 bagger if gold goes to $2000 plus which many think it will.There aren't many around are there. Come on smell the coffee. How exciting is this. https://podtail.com/en/podcast/the-10-bagger-podcast/these-stocks-can-be-10-baggers-at-2500-gold/

[andrewsr] 21/1/2020 16:51

They could surely do a dividend now they're thinking of disposing of Dugbe with a percentage holding in the new company, which would be even more transformative.

[zhockey] 21/1/2020 15:46

Look to the future. Cash positive by H2 2020 will be transformative, just look at AAZ.

[avsome1968] 21/1/2020 08:17

Max buy 30k hmmmmmmm not letting so many go now.

[borderterrier1] 20/1/2020 19:10

avesome1968 I hope you are right. But don't forget we have been here before.

[avsome1968] 20/1/2020 17:21

Nice move up again today chart looking spot on hope this steady rise continues.
Gold price staying strong good support around 1540, good start for the year for hum should mine 11k of gold this month.

BT my prediction for hum to hit 30p could be a lot sooner than you think, long wait for you to break even put least you wont be out of pocket.

[borderterrier1] 20/1/2020 17:13

But they are. History repeats itself yet again, the same thing happening like it has done multiple times over the last three years. In 40 years of investing, I have never, ever seen a share price behave like this one. It's very frustrating.

[zhockey] 20/1/2020 15:52

With the new plant operational I'd expect the guidance to be pretty good for this year. Gold looking healthy for another leg up so could be a good buying zone.

[dickbush] 20/1/2020 14:53

If we are going to get the names of the players behind ARX Resources, it won't be until the deal is done...if it is done. Hopefully, after my letter, HUM's management is aware that we want lots of information on any deal because this is a very important asset for shareholders.

Agree, wskill, one less thing to worry about.

Nice move today despite little movement in the gold price so far.

[borderterrier1] 20/1/2020 13:30

My biggest fear now is that many of the long term investors here will sell on the lift just like they have routinely done in the past. If this is as good as the info. suggests, they shouldn't, so I hope not.

[plasybryn] 20/1/2020 13:24

We've been tipped as a potential Ten Bagger. I would expect that to go down very well.

[borderterrier1] 20/1/2020 13:22

moneyfornothing1 Correct. I specialize in singing Dire Straits numbers. And like I said, some re-kindled interest over here in the US, it's pleasing to see that. Maybe my friends over here will begin speaking to me again?

[the deacon] 20/1/2020 12:33

Around 11:40 in the interview below, Eric Sprott explains his valuation metric for gold producers. Using his simple metric and even some hefty discount, HUM is quite clearly very undervalued. It's no wonder those on the other side of the Atlantic see this as a potential multi-bagger..https://youtu.be/IRp3TTRhRXw

[wskill] 20/1/2020 09:56

Not much stock around max I could pick up earlier was 15k hardly worth bothering with .

[goodgrief] 20/1/2020 09:33

With gold at $2500, there will be no shortage of 10 baggers!!

[plasybryn] 20/1/2020 09:29

The Deacon: Wow that is powerful stuff. Hummingbird firmly picked as one of just four potential 10 baggers at gold $2000/$2500. Bring it on. Thanks The Deacon for the link.

[moneyfornothing1] 20/1/2020 08:56

Borderterrier I bet in real life you are the life and soul of the party!!

[the deacon] 20/1/2020 08:12

HUM mentioned as potential multi bagger on a rising gold pricehttps://podtail.com/en/podcast/the-10-bagger-podcast/these-stocks-can-be-10-baggers-at-2500-gold/

[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!