Hummingbird Resources Share Discussion Threads

[avsome1968] 01/4/2020 21:31

Big plus on fuel supplying the mine, think we will be surprised how much we have saved this quarter on cheap fuel, think AISC will be down from last quarter.

[ukgeorge] 01/4/2020 12:02

In general mining companies get about $7-12 below spot.

[dickbush] 01/4/2020 11:56

The average of the daily closing gold price for the first qtr was $1583. Hopefully, HUM has got somewhere near it.

If, IF, they can keep production up to 4th qtr levels with a similar AISC and an average gold price of $1580, I think we could look for zero net debt by June 30th and an EV/EBITDA of not much more than 1.

There's a lot of assumptions in there. So, FWIW.

[avsome1968] 01/4/2020 10:32

I've also have a small stake in TSG, think results are due in 3 weeks time there, should be pretty solid.

[redtrend] 01/4/2020 10:17

Whilst I'm definitely overweight HUM and it's my biggest holding, purely just to diversify I have a big holding in gold miner TSG too.

[avsome1968] 01/4/2020 09:49

UK George

Lots of other good gold companies about at discount prices GDP worth having a look at recent mine closure due to price drop but think its over done took a small stake today.

[ukgeorge] 01/4/2020 09:35

I know you are are right :) and there past performances means caution is always needed. The good news about the virus is that the management can't go to any industry events or the pub so the chance of another bunker hill ($2M) is lower....

Results likely two weeks away. Fingers crossed that they are actually throwing some cash off.

[avsome1968] 31/3/2020 20:59

George

Never put all your eggs in one basket, hum have not yet rewarded the investors over the last 3 years, they tend to f-ck something up lol. looking forward to results should be out next week bit of luck.

[ukgeorge] 31/3/2020 16:38

I know I shouldn't but I am tempted to sell all my other shares and go all in on this.

[dudishes] 31/3/2020 16:31

Enough time to make some dosh!

[ukgeorge] 31/3/2020 16:25

I think it got extended back to 7

[zhockey] 31/3/2020 15:32

Mine life is 5 years currently?

[redtrend] 31/3/2020 12:20

Q4 2019 HUM's Net Debt was $31m, with you would hope significant down payments to Trade payables back to norms occurred in Q4 2019 (paying off historic remedial works and Capex).

So would concur with UKG a good result would be Net Debt in the $15m area.

The cost of the mine will be depreciated over the life of the mine (e.g. reducing profits in the books), therefore reducing tax on said profit. They may also have other tax credits rolled over from exploration costs or the like.

Additionally HUM are also owed $11m from Mali Government for the additional 10% of the mine (bringing governments overall % to 20%). This will likely be offset against taxes, rather than paid by the Government as cash in the bank

[ukgeorge] 31/3/2020 11:01

All I want for Q1 results is cash at $20M and debt at $35M

30koz production, $500/oz margin, $15m free cash flow.

I know I should have looked into this myself but can the capital cost of the mine be offset against tax? Or is the company paying 30% corporation tax already?

[the deacon] 30/3/2020 08:26

Globally, over 60 precious metals mines have been temporarily closed due to covid-19. Has to bode well for those open pit operations that remain in production.

[the deacon] 28/3/2020 17:53

Good discussion on the value proposition of gold and silver miners at the moment. Worth 12 or so minutes of your time..http://www.kereport.com/2020/03/27/balancing-the-opportunity-in-smaller-miners-development-companies-and-exploration-companies/

[borderterrier1] 28/3/2020 14:41

DB Eventually? Another 3 years? 5 years? Without the glaring c ups this share price would be worth more than it was as a hole in the ground IMO. Buffett would have bailed out years ago. Now I suspect that even with a move N, any long term holders will do exactly that due to lack of confidence..... and that is most definitely Del Boy's fault. Is it logical to hide behind the "Completed the mine on time and on budget" scenario in December 2017 if we are still sitting here three years later with an share price that is half of what it was then?

[dickbush] 28/3/2020 11:13

What I am saying about the price of a company's shares is this:

"If a business does well, the stock EVENTUALLY follows."

Warren Buffett

As above, I hold DB responsible for the operation of the business, not the share price. Perhaps, I should have said The share price in the short term. Buffett's favourite holding period is "forever". I am not as patient. I expect to get paid within 5 to 7 years, hopefully less.

Also from Warren Buffett:

"Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results."

[dudishes] 26/3/2020 16:59

Maybe storing for a month (usa to get real), could be good.