Hummingbird Resources Share Discussion Threads

[casual47] 24/4/2020 12:59

HUM already has a pretty low number of issued share capital, compared to most goldies on AIM.

What we want is long term sticky holders - more IIs. Dividends is one way to attract them.

If management has a good growth strategy through e.g. M&A or organic then cash would be better used for that and dividends can wait as far as I'm concerned.

Using cash for anything but growing or strengthening the business is a sign that management have no strategic vision for the company.

[redtrend] 24/4/2020 12:58

The shareprice should be a concern if it means that a hostile takeover could happen at a time HUM is significantly undervalued to the detriment of shareholders in the long-term.

After all, HUM management are there to boost shareholder value. To realise true market value and ensure long-term protection, a buy back is be needed.

It's hard for the HUM board to do the usual city roadshows to large IIs and banks that may buy in, in these COVID-19 times. Zoom telecons just don't cut it

[bittorrent] 24/4/2020 12:57

I got a bit carried away lol, it's an airstrip not a runway of course, so basically a flat smooth surface with grass on it, not expensive to achieve.

[redtrend] 24/4/2020 12:52

As soon as they start buying back shares the shareprice will rerate with all the new buying and others trying to front-run and realise how much cash HUM have.

Us LTHs also realise our % equity will increase and at later date dividends will get distributed amongst less shares.

There's far better uses for cash than dividends

[casual47] 24/4/2020 12:50

The shareprice should not be a concern for management, that will take care of itself.

Cash is king. They should use the cash to either reinvest in the business to accelerate growth/expansion or if they have no immediate plans return it to shareholders or use it to maintain a minimum "rainy day" cash stash either to deal with another summer of being rained under or to use it for opportunistic M&A.

[redtrend] 24/4/2020 12:48

I should add on the 11,000K Oz build up in gold inventory, at first I was a bit concerned there was short-term logistics problems linked to COVID-19.

However I sent an email to HUM (I didn't realise it was already addressed by Dan on his Vox markets interview), who were very quick to respond.

hxxps://www.voxmarkets.co.uk/articles/hummingbird-resources-live-company-group-europa-metals-chris-bailey-31eb275/

As detailed in the Vox markets interview and confirmed to me via email, it's simply down to timing as the 11k ozs included a large shipment in transit over month end. To add bit more meat to the bones, there where initial delays to exporting while HUM adjusted to secure alternative measures, including the use of charter planes in conjunction with other producers in the region to share costs. Naturally with any new procedure takes while to set up, but now it's all established things should be running to plan. They even have contingency measures in place regarding refiners etc.

HUM have so far demonstrated how proactive they've been in terms of safety, logistics and liquidity when it comes to COVID-19 mitigations. Let's hope they have no direct cases (sometimes even with all mitigations it can be down to luck and circumstances), but if they did sure they would handle it in safe manner and they will have large amount of liquidity to see through any eventuality.

[casual47] 24/4/2020 12:46

As soon as they announce a maiden dividend the shareprice will rerate significantly.

There are far better uses for cash than buybacks.

[redtrend] 24/4/2020 12:43

Buybacks are far more powerful when a share price is chronically undervalued as HUM is, dividends better when a share price is "fairly valued". Depending on people's personal tax circumstances, some may of course favour one or the other. I favour the former.

It is ridiculous to state buybacks do nothing. I was in Slyvania Platinum SLP from 8p some years back. Like HUM is now, it was constantly overlooked (platinum was unloved and market at time didn't understand the amount of palladium and rhodium they produced) for whatever reasons and a large II sold out.

They started buybacks and more interest got them back up to 30p, even before the palladium price explosion. It was only then they started doing buybacks + small dividends and they got all the way to 65p before the COVID-19 impact. I sold out in number of tranches between 45-60p probably getting an avg. in the low 50s.

HUM feels like another SLP to me and could see it up to 60-70p in 18 months if it can meet guidance and gold is over $1,650+

[ukgeorge] 24/4/2020 12:31

A buy back worked well at griffin went from 20p to 160p. But a combination would imo be better.

[dickbush] 24/4/2020 12:30

I'd like to see that runway built asap so they can get those 11,000 ounces plus the 10,000 they will have produced in April, out of there before they start attracting the wrong attention.

[casual47] 24/4/2020 12:28

Yep. Share buybacks do nothing but encourage shareholders to sell and inflate exec share based earnings.

[andrewsr] 24/4/2020 12:24

Wouldn't a dividend be more effective in raising the share price and give you a cash return? It worked well for AAZ.

[redtrend] 24/4/2020 12:14

Net Cash even?

As soon as that mammoth 11,000K Oz of inventory is converted into cashola, they need to start a buy-back asap to boost the share price, correct this extreme undervaluation and protect against any opportunistic hostile takeover action.

[ukgeorge] 24/4/2020 12:00

An RNS on the 5th of May stating that the company is net debt free would be nice......

[laurence llewelyn binliner] 24/4/2020 11:53

Summer 2018 the share price was 27.5p when POG was 1200/Oz..
We were producing 25,000 Ounces per quarter, AISC 875, debt of USD60M+

April 2020 the share price is 27.5p, POG is 1750/Oz, we are producing 30,000+ Ounces a quarter, and will be net cash positive in May or June, with debt of cUSD28M at H1..

When the re-rating starts it should land thick and fast.. :o)

[qs99] 24/4/2020 11:42

That's more like it

[ukgeorge] 24/4/2020 11:32

avsmore, a load of nice buys going in again at 27p :)

I hope it doesn't pop yet, one more week till pay day :)

[qs99] 24/4/2020 11:03

About to pop again?

[new_buyer] 24/4/2020 09:20

Gold still looking good, could set up next week to be really positive. At some point this has to catch up and I am sure it will.

[borderterrier1] 24/4/2020 01:05

new_buyer JFYI For the same value investment I have made more money in DRD gold in three months than I have made here in three years.

[avsome1968] 23/4/2020 20:26

Hi all

Anybody noticed since our quarter update theirs been numerous 50k,100k,200k buyer yet price movement pretty poor, or are they taking them of a seller, wouldn't surprise me we will get a RNS pretty soon to confirm this, then hopefully some solid gains north.

Also did anyone have a look at GDP when I mentioned it week or so back starting to move. Cheers AV////

Of the subject guys, small producing gold miner to look at GDP, recent highs nearly touched 7p then temporary mine closed due to c-19 for 3 weeks maybe due back open, news this week early next week, very cheap 4p to buy at the moment 167m shares circulation. DYOR

[seagreen] 23/4/2020 18:14

stiff upper lip where else might you get a return of 400% in two years

[kennyp52] 23/4/2020 17:49

IMHO if you want a share to be taken seriously you need to give shareholders a return ... that is fundamentally what it is all about . So getting themselves debt free with the projection of forward dividends is the way to get an share price reflecting true value . Otherwise I would be glad to see a bid on this and double up .

[bignads] 23/4/2020 17:14

I do think the company has a reputational issue. If I look at peers, the share price for HUM would have to double to bring it into line with the value ratios I'm seeing elsewhere. Eventually, the penny will drop and the market will wake up. The catalyst could be when a net cash position is reached.