Hummingbird Resources Share Discussion Threads

[kennyp52] 05/6/2020 12:33

Techandy .. 25p ... great call . What do you base it on ? Anything in the RNS ?

[kennyp52] 05/6/2020 12:30

25p ... great !

[casual47] 05/6/2020 12:15

The 49% is conditional on DFS.

If you think you can get an DFS just from $10m then you don't know a thing about mining.

[puzzler2] 05/6/2020 12:15

Two days ago I held 195K HUM shares, which I've been selling off progressively since yesterday morning. I'm now out. Why? - because yesterday's RNS stinks to high heaven. Any company that believes that related party transactions are somehow acceptable and in the best interests of shareholders is a fool. I believe it is a disgrace that directors of a public company can use that vehicle as a means of enriching themselves (in addition to their not inconsiderable salaries) at the expense of shareholders. As for the FD, Tom Hill - I knew him well when we were both at BDO - frankly, I thought he was of better stuff than to get involved in such an arrangement. Bottom line - you can't be invested in a company where the directors' interests are not aligned with those of the shareholders.

[allviewswelcome] 05/6/2020 12:13

'Either way lets hope it takes the project forwards'. Now that I can definitely agree on (Although an rns on a dividend policy wouldn't go amiss).

[ukgeorge] 05/6/2020 12:08

Avw,



"including the payment by ARX to Hummingbird of a non-refundable deposit of US$2m"

They also then need to spend $8M is how I interpret the rns to get the 49%.

Either way lets hope it takes the project forward.

The mine should be hugely profitable today. Roll on there being zero new rns for two months.

[borderterrier1] 05/6/2020 12:06

But then, you can't fix stupid. This will be 12p by Christmas.

[allviewswelcome] 05/6/2020 11:41

UKGeorge, the 49% has not been sold for $2mil, there is no semblance of truth in that statement. The directors have 39% a present, but his will be substantially reduced when the remaining $8mil is raised. That will not be the end of it either. Substantially more cash will need to be raised just to complete a DFS. It will still be little more than a few holes in the ground at that point, not even resembling a mine.

Dugbe will take years and $10's,if not $100's of million to get into production, yet it's being talked about like it's ready to go. It's not. So, people may feel uncomfortable with the links between the directors and the partner company, but at least this protects Hum's cash to use for something significantly more value accretive with.

[ukgeorge] 05/6/2020 11:21

no one has ever had a great ride on easyjet :)

well done, I expected the average results but the other two rns were curve balls.

All the cheerleaders please get buying!!!

[techandy] 05/6/2020 11:06

Just trade it like I do. I sold out on Monday at 30.2. And now just waiting for it to hit about 20p in the next couple of weeks. I've had a great ride on EasyJet also in the past two weeks. It's a fantastic time to be in the markets. Goodluck all.

[roguetreader] 05/6/2020 11:02

The Shanta deposits in West Kenya will primarily be underground via long hole stoping; the Dugbe is open pit, so grade comparison is a bit apples and pears.

[goodgrief] 05/6/2020 10:01

Barrick spent $90m exploring a prospect in Kenya and is now accepting $19m from Shanta which includes 2% royalty and 6.4% of shanta. And the grades there are x6 better than Dugbe.

[charlieeee] 05/6/2020 09:04

Sp500g

Try and start your bashing from the correct facts.

$65 million has been spent on Dugbe, $15 million of which was ponied up as deferred consideration and remains a liability.

That gives a net investment of $50 million, but that is not its valuation, either as a project to sell on or in HUM's market cap: my guess is that the latter is a guide to the former ie. Dugbe has very little value as it stands.

The costs for the new team, including exploration and overheads/cost, plus the DFS (probably $5/10 million in itself)are a sizable contribution for a junior (ie non controlling) share, probably not much shy of the original proposed $30 million.

Thee is nothing to suggest that the new management team are mates (though the industry does tend to "know" one another quite well as it is quite a small sector) and such a suggestion is thus misleading.

The HUM management share is going to be diluted out of sight, but it demonstrates commitment, which will assist in the fund raising to follow.

All genuine investors in HUM should be delighted that we still have our undiluted cash cow, carefully ring fenced, growing organically by exploration and yet have upside to a pipeline of projects, fist Cora and now this elephant (not to mention Bunker Hill).

A first class strategy, but trashed and bashed by those with their own agenda: surely no investor could be so thick that they do not see just how good this deal is for HUM?

[laurence llewelyn binliner] 05/6/2020 08:36

Depends how you look at it.., HUM has an asset they can not not do anything with for years, they have retained 51% of ownership and future profits from the project while someone else pays for the exploration and DFS...

51% of something is worth a whole lot more than 100% of nothing and is comparable to any PSA with a government to develop a project..

[sp500g] 05/6/2020 07:44

You didn't quite get what happened?
Firstly HUM had an intangible asset (Dugbe) valued at something around $60-70m and now 49% were sold for $10m to a shell company owned mostly by friends and relatives of the board. Big write-downs on that asset in 2020 incoming.

[podgyted] 05/6/2020 01:12

Love a cornish pasty. The Real Cornish Pasty Company and Macdonalds (for my guilty pleasure breakfast)are what I've missed most in the lock-down.

[borderterrier1] 04/6/2020 23:12

The recent post on the LSE bb and comments in it from DB make interesting reading. Comment:- "This is the best option for shareholders" and "strategically, it's not where we want to be" Really?

Bravo DB. Great management decision. You really are a first class, dedicated Ceo with the shareholders interests at heart. To build a goldmine on time and on budget was an absolutely top notch, fabulous thing to do and you are my hero. The fact that the share price has deteriorated since is inconsequential.

[new_buyer] 04/6/2020 22:55

Prefer a Cornish pasty mine, something we can really get our teeth into!

[podgyted] 04/6/2020 22:33

Oh and a $2m loan to a cornish tin mine.

[podgyted] 04/6/2020 22:32

Tommorrow New-Buyer we take over the world, but only in the form a JV with the directors owning 49.9% and having 1p options vesting in 2 years time to dilute the existing shareholders down to 1%.

That sum up the bear case?

I still quite like.

[new_buyer] 04/6/2020 22:13

What news will tomorrow’s RNS bring?

[borderterrier1] 04/6/2020 21:37

techandy My stocks are doing just fine, except this dog. Just a thought, but isn't it strange that Frank "long and strong" Campbell never posts on here now? I read through his 10 page report again after he won the visit to the mine. It is obvious now that many were influenced by it and IMO it was blatant ramping. It looks as though like the proverbial rat he has left the sinking ship. I still have his e mail. Perhaps I'll drop him a line. Hummmmmmmmm. Interesting thought.

[techandy] 04/6/2020 20:59

They would have been better off buying EasyJet two weeks ago when it was 500p+