Hummingbird Resources Share Discussion Threads

[casual47] 22/4/2020 08:43

The people behind BH are a major red flag.

[rickyhatton] 22/4/2020 08:32

Interesting post from lse Board re Bunker Hill.

"Bunker Hill is still a great project technically and legally - simply mishandled financially by previous BH directors. It's clear HUM's monies and loans are being paid back or could be converted to more equity, despite some on here claiming the money had gone walkies or could never be recovered.

Bunker Hill is huge and I honestly don’t think people fully understand why it closed in 1981 or the legalities regarding BH Mining being fully indemnified in a tri-party agreement with the EPA and Dept. of Justice. With both the EPA and DoJ involved, it will be very hard to overturn, but not impossible. BH is a blight on the landscape and continues to pollute the environment - they need more money for a proper clean up and a modern up to date mine would help with this, with monies earmarked for clean up.

It was 1st and foremost a Lead mine and zinc was merely a by-product. Zinc rich grades low in lead were largely ignored and included in the SEC proven reserves. Some zones are 20% zinc. Going forward it will be predominantly a zinc play. For $90m Capex (fraction of Dugbe's):

a) 8yrs+ LoM w/ huge amount of potential to extend this further and high grade drilling intercepts of >20% zinc.
b) 1,500tpd processed or 547,500 tonnes per year est. commence Q1 2020. At 5.08% zinc, 2.35% Pb and 1.29 Oz Ag per ton: That's:
- Zinc: 27,813 tonnes p.a., 55.6million revenue (using $2,000 per ton)
- Lead: 12,866 tonnes p.a., 21.8million revenue (using $,2000 per ton)
- Silver: 706,275Oz p.a., 11million revenue (using $14.5 per Oz)
TOTAL: $88.4million revenue

Potential to double throughput to 3,000tpd, equating to $177million revenue compared to Yanfollila’s $200million odd (dependant on gold price of course). That's at the significantly depressed Zinc, Lead and Silver prices of today. If we had a moderate 10-20% bounce in spot prices, you're looking at revenues of over $200m."

[rickyhatton] 22/4/2020 08:29

Interesting post from lse Board, with HUM keeping their BH options open.

Value of investment in BH is now greater than that in Cora.

"Bunker Hill is still a great project technically and legally - simply mishandled financially by previous BH directors. It's clear HUM's monies and loans are being paid back or could be converted to more equity, despite some on here claiming the money had gone walkies or could never be recovered.

Bunker Hill is huge and I honestly don’t think people fully understand why it closed in 1981 or the legalities regarding BH Mining being fully indemnified in a tri-party agreement with the EPA and Dept. of Justice. With both the EPA and DoJ involved, it will be very hard to overturn, but not impossible. BH is a blight on the landscape and continues to pollute the environment - they need more money for a proper clean up and a modern up to date mine would help with this, with monies earmarked for clean up.

It was 1st and foremost a Lead mine and zinc was merely a by-product. Zinc rich grades low in lead were largely ignored and included in the SEC proven reserves. Some zones are 20% zinc. Going forward it will be predominantly a zinc play. For $90m Capex (fraction of Dugbe's):

a) 8yrs+ LoM w/ huge amount of potential to extend this further and high grade drilling intercepts of >20% zinc.
b) 1,500tpd processed or 547,500 tonnes per year est. commence Q1 2020. At 5.08% zinc, 2.35% Pb and 1.29 Oz Ag per ton: That's:
- Zinc: 27,813 tonnes p.a., 55.6million revenue (using $2,000 per ton)
- Lead: 12,866 tonnes p.a., 21.8million revenue (using $,2000 per ton)
- Silver: 706,275Oz p.a., 11million revenue (using $14.5 per Oz)
TOTAL: $88.4million revenue

Potential to double throughput to 3,000tpd, equating to $177million revenue compared to Yanfollila’s $200million odd (dependant on gold price of course). That's at the significantly depressed Zinc, Lead and Silver prices of today. If we had a moderate 10-20% bounce in spot prices, you're looking at revenues of over $200m."

[new_buyer] 22/4/2020 08:23

Time to move over to the grown ups thread I would suggest

[borderterrier1] 21/4/2020 18:48

sandeels I guess the other investors that posted similar comments re. DB need help also? Perhaps that should tell you something? Shouldn't be too difficult for an obviously shrewd, super intelligent individual like you to work out, should it? Or perhaps it's you that needs the help?

[temujiin] 21/4/2020 18:31

I know I said I'd reached my holdings target but I have a buy order in for 20,000 at 24.1p if any traders feel they need to bank profits, willing to consider 24.5p

[casual47] 21/4/2020 17:42

$1678/oz should already do nicely.

The fact that the rise from $1200/oz to $1678/oz has given no rerate in shareprice should tell you something.

The implication of reaching $3000/oz is probably that there is going to be significant turmoil. Turmoil is good for gold, not necessarily good for miners.

What people who invest in miners should wish for is not $3000/oz but a functioning world economy.

HUM at $1400/oz and with a functioning world economy could be worth multiples of HUM at $3000/oz with everything going t1ts up.

[borderterrier1] 21/4/2020 17:36

UKGeorge That's why I post them. The dividend and share buy-back was talked about two years ago but didn't happen. Trouble is, there are lots of ostriches about like sandeels that don't like to face reality. In another three years if this still has the current Ceo and it is still dragging it's heels perhaps they will wake up?

[qs99] 21/4/2020 17:16

wow, $3,000? That will do nicely

[dickbush] 21/4/2020 17:04

I'll drink to that.

[seagreen] 21/4/2020 16:33

At the risk of appearing simplistic I feel the market is simply digesting the mix of traders and long term investors, which will result in a brief consolidation in the share price.

This also coincides with a spike in gold prices and an inevitable period of profit taking prior to it consolidating which some people believe will result in the POG Prime Facie rising higher due to the level of Global Government funding that has been applied to nurse the Globe through the pandemic.

I also suspect that those who bought shares at 19p or 20p or 21p some on long term settlement 20 or 25 days may have decided to close ther trades and take a healthy percentage profit in todays global markets. Particularly there was a decent rise prior to the announcement which was healthy and solid but the market was expecting following their trading updates. In the main these sells have been absorbed by new or existing investors. There certainly has not been a significant drop in the offer price with some paying a premium to buy in size. (eg 100,000 share orders.)

This could indicate there is not a lot of spare capacity in share availability only the market makers will know.

I certainly can not find any major concerns in recent announcements that would result in a desire to share my modest holding.

I also contine to be confused and frustrated with the inane rambings of Border Terrier who steadfastly refuses to look forward and take into account the benificially improved POG that surely will shine through in future quarters.

Whilst accepting his shares have gone up and down over the years, he seems to have no understandig of the complexities of mining a gold mine and the diferent grades of gold you can hit depending on the different seams you are mining. He seems to believe you can turn up with a spade and produce 130,000 oz a year with a man and his dog and any other technical chalenges are the direct fault of the unfortunate Dan Bates the Managing Director, who continues to be the focus of his anger.

He also continues to critizise Dan for his understandble desire to expand the resource and mine life of HUM by JV or aquisition. These are very necessary steps and yes they have been unfortunate in some of their historical attempts. It would be naive to the extreme if you would expect at todays POG some one would offer HUM a large resource capable of open pit mining and producing 50,000 oz a year with no capital expenditure requirement or risk attached.

I also believe that the FD is a solid man who knows his oinions who must have sourced and assisted the excellent down sized risk purchase of put options as a cost of the business without capping the upside POG as SHG did.

I have also noted that there appears to be good corporate governance and HUM is begining to do what it says on the tin. Increase and have a steady significant gold production and reduce debt.

I have also concluded that Border Terrier's continual ramblings and negative comment may have an ulterior motive, although it could be pure naievity as aluded to above. They are full of history and less on the bright future.

Maybe he is just a miserable git, but I find it disingenious and unbelievable to comprehend how someone who still has a holding in a share to constantly run down any positive comment about HUM's future prosperity and carry on like a stuck long playing record.

There are enough political and health risks to temper enthusiasm and make individuals aware of risk and reward to satisfy their own appetite/tollerance, but I am fresh out of gold in my back garden and it goes with the teritory that Gold does not grow in everyone's back garden and is found in less stable parts of the world.

I have long given up believing one can have a constructive argument with Border Terrier be it positive or negative and I have given up trying to work out what his modus operandi is as I feel it is disingenious.

Stay safe and I hope young Tom will have similar out of the money future put options at all times but particularly in the future when a vaccine may be more realistic and the economy hopefully returns to a new normality what ever that may be as the gold price may come down significantly even if it is not justified for many years to come.

[ukgeorge] 21/4/2020 16:32

I'm not adverse to pulling this management up on a few issues such as, Bunker Hill, gross over pay, despicable options, to name a couple.

But, I'm fairly relaxed about my investment in Hum at the moment. The mine is throwing of cash at these gold prices. Surely a dividend or share buy back will be coming in the next 12 months. Markets often overlook companies and I am hopeful that sooner or later the market will wake up and these will have a healthy rise.

It is certainly long overdue and we are missing the gold bull market.

Keep up with the posts BT, they are entertaining and sadly often true.

[sandeels] 21/4/2020 16:26

bt we're quite capable of looking at LSE ourselves.
You need professional help. Go get.

[hydrogen economy] 21/4/2020 10:18

"From recollection, the conversion rate of resources into reserves is 55%"

Well "Historical Resource to Reserves conversion rate of 55%" Of course the first resources to work up will be the best, so does that mean 55% will be the future conversion rate? Of course that is the idea they are promoting and you seem to have used that assumption, but they were careful not to actually say it.

[andrewsr] 21/4/2020 09:54

Maybe there just aren't any incentives for the management to lift the share price, i.e. they're not aligned with shareholder's interests. If they had options at 60p or even 100p, they would probably introduce a dividend in order to get there.

[andrewsr] 21/4/2020 09:07

Greatland Gold have no resources, let alone reserves, 6 years away from a BFS, 9-10 years away from any cashflow. They only have drill results and 'huge potential' and yet 'investors' have driven the market cap up to £275m.
Anglo Asian seem to be mining just resources with no mention of reserves, a lot of it less than 2g/t.
Hum have £55m/pa cash flow, 1 moz resources outside the mine plan +'potential' and with 5 years production as a base case secured, there's no reason to 'lose confidence'. Maybe if there's no change in, say, 2 years time, there would be cause to panic.
IMHO it's preferable to have cash flow + 'potential' rather than just 'huge potential'. They've only just turned their attention to drilling again.
Investors here are likely to have quite a high tolerance of risk and will hold for drilling results and conversion of resources to reserves, especially whilst the cash flow is so good.
IMO what would really move the share price would be a dividend, which they could easily do next year.

[charlieeee] 21/4/2020 08:27

No change in reserves when a company is mining means that these are being replaced at least at the rate of depletion: that was the 2019 story despite minimal drilling.

From recollection, the conversion rate of resources into reserves is 55%, so that should double the existing LOM, without any of the greenfields exploration.

Those who understand the company will feel confident that management prioritized profitability of existing production,installing the second ball mill, as an allocation of scarce resources in 2019.

Now, as super funds generated by that decision (and the bonus POG) kick in, we have an extensive drilling campaign, alongside significant debt reduction.

This company is an exciting proposition going forward, with young ambitious management, well placed in a market where gold is in demand.

[borderterrier1] 21/4/2020 03:38

hydrogen economy I agree. A BIG if. But then, I've said it all before and I'm always shot down by the "more knowledgeable" investors.

[hydrogen economy] 21/4/2020 03:15

No change in reserves is not a positive, share price has been pricing in upside but existing investors must also be losing confidence in HUM's promise to upgrade resources (and maybe some other worries). The longer it takes for a meaningful update of the mine plan the greater that concern.

Plenty of activity and detailed drill results but not enough certified reserves. If can they do that, I would expect a big re-rate, but it's still an if.

[andrewsr] 20/4/2020 17:15

he, the LOM 'issue' may put off a few risk averse buyers, but there appear to be plenty of buyers here. Unfortunately, there are also some persistent sellers - probably an overhang, but who knows. Rationally, for someone to sell there would need to be a change for the worse and the reserves/resources haven't changed much. Even Covid-19 hasn't caused much of a change for the worse.
Applying rational thinking to markets is probably a waste of time - just look at Greatland Gold, where they may end up with 25% of an underground mine, 5-10 years in the future and if Newcrest walk away, it's all over, no-one else would touch it, but punters are happy to wade in, valuing the company at about £275m.

[borderterrier1] 20/4/2020 15:56

hydrogen economy I agree 100% with what you say here and I have also thought for a long time that much of the information here is a grey area. But I guess that's what you get for investing in a family business?

[hydrogen economy] 20/4/2020 15:08

OK 1 Million Oz resources outside the mine plan was indicated in the Q1 presentation but that’s it. No indication of how much of that is classified as inferred Vs indicated? That’s strange because for Dugbe in the same presentation they provide a breakdown, why not at your only operating mine?. Maybe it has been published and I haven’t seen it, if so please let me know.

That’s quite important information not to disclose because the confidence level in Inferred Mineral Resources is insufficient to allow the application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure. That implies little value should be ascribed to the inferred resources until more data is gathered and analyzed to upgrade it to indicated resources or reserves. So how much of that 1 million ounces can be realistically upgraded to reserves? Hard to know, but if there was a lot of indicated I rather think DB would mention it.

The frustration is that whilst lots of data is provided, this doesn’t give any clear picture of the potential, the unknowns and uncertainties are always too great. Reserves updates they have to follow rules, but dangling X m of Y g/t sounds enticing but means little until it is worked through to a mine plan. When that will happen is unclear updates have not been on time. If you wanted people to worry about your LOM that would be a good approach.

If they succeed in upgrading a significant % of the resources to reserves and extend the mine life then I believe HUM will get an upgrade, but the market appears to be saying prove it.

That’s why in my opinion LOM is the main thing holding back the share price The other stuff is also holding it back too but if they prove they have can recover enough gold that will be overlooked.

[borderterrier1] 20/4/2020 13:55

avesome1968 No problem pulling up on Hargreaves Landsdown. DRDGOLD Ltd. South African miner that specializes in processing the tailings. In a year I have doubled my money with that stock and it is up 9% today.

[casual47] 20/4/2020 12:48

The bull market for gold miners hasn't started yet, imo. Undervalued miners are still the rule rather than the exception.

Next year we may see the bull market finally catch up. Perhaps when HUM declare their maiden divi.....