Hummingbird Resources Share Discussion Threads

[plasybryn] 01/7/2020 13:49

Cinoib: good luck. Ariana Resources (AAU) by any chance. Great transformational news today. Lots of upside from such a relatively small Market Capitalisation.

[temujiin] 01/7/2020 12:58

Goodluck Cinoib and thanks for telling us of your position. Out of interest, what do you see as a greener pastures?

[ukgeorge] 01/7/2020 12:57

Cinoib, good luck. Certainly very frustrating so understandable.

Gold is however at an 8 year high, the mine touch wood is operating as normal. Money is being devalued globally and gold seems to be the safest place. Q2 should show good free cash flow. The market will hopefully then re rate. Some +10% days should be coming soon.

[cinoib] 01/7/2020 11:54

Seems never to get through 30p and hasn't done for 3 years so sold out this a.m. with a small profit and moved to pastures greener and see if I can do any better.

[ukgeorge] 01/7/2020 10:37

29.884p to buy at the moment what a rip off.........

9,444 and 4,705 more for me

[wskill] 01/7/2020 09:34

Definitely HUM has missed out on this gold rally but I have held GPM for a few years now and they have been selling on a discount of over 30% right through this rally.
At last they are on the move in tandem with the gold price I am sure we will have our day in the sun when the seller clears, managed to get a few small top ups today under 30p so its not all bad.

[dickbush] 01/7/2020 09:28

June gold price averaged 1,734. Second qtr averaged 1,712

[new_buyer] 30/6/2020 18:40

Lets hope the POG lights the HUM fuse!

[imnotspartacus] 30/6/2020 17:04

30p on the close...not bad

[ukgeorge] 30/6/2020 16:05

Gold on a tear, hopefully this leads to a load of shorts been burned on quarter end :) and momentum continuing.

[laurence llewelyn binliner] 29/6/2020 19:17

The company is doing very well, Q2 closing tomorrow and the next update 1st week of August, the BOD are making the right decisions and setting our stall out for growth and how we are going to fund it..

USD 1775 POG AISC 875 margin 900/Oz

If we have an overhang churning through, or seller(s) dripping into any rise, then 1 day we will get a TR1 or they will clear and we will be off to the races, there is nothing we or the BOD can do about it, just have to ride it out, frustrating but just buy the dips..

[ukgeorge] 29/6/2020 19:02

I think my views are quite clear, the fundamentals of the company are fantastic, the free cash flow should be $18M ish this quarter yet the share price still does sweet FA. Management has undoubtedly made some good decisions however they have also had a number of poor ones. The share price has been atrocious and I can't help but think that this is in part due to the managements greed. They should align their performance with the shareholders (owners of the company). I think we trade at a big discount because of 1p options and curve ball investments in Bunker Hill.

[new_buyer] 29/6/2020 17:59

They are often different on the different threads

[casual47] 29/6/2020 17:12

UKG - it's hard to keep up with your opinions, they are all over the place.

[ukgeorge] 29/6/2020 16:24

I think it’s clear that HUM BOD have everything they need at their disposal to make a difference to their own personal wealth. 1p options, large salaries, 50% bonuses, Dugbe deal, all expenses paid. Meanwhile shareholders have the promise of jam tomorrow. Roll on a takeover.

[borderterrier1] 29/6/2020 16:06

Suck it up guys. This isn't going over the 30p-35p range, the seller won't allow that and it has been like this for three years. The best we can hope for is a TO. 40 p would do.

[new_buyer] 29/6/2020 08:50

I think it’s clear that HUM and BOD have everything they need at their disposal to make a difference to the share price if they think it’s required, be interesting to see what they do if anything as any takeover could pay for itself over the next 12 months from the FCF from Yanf.

[charlieeee] 29/6/2020 08:19

Good balanced discussion, particularly the points made by Casual.

I would not normally be a fan of dividend or buyback, in a relatively recently established producer, with ambitious plans to increase the LOM and double production in a couple of years, involving significant Capex (part debt financed)

In this case, however, there are some extraordinary circumstances,which justify the buyback.

Firstly, the current POG is yielding windfall profits, which must be excess to any cash flow projections already done (including debt repayment and capital expansion).

Secondly, we have a major shareholder trashing the share price and that makes HUM vulnerable to a takeover bid at an undervalue.

Finally, as UK George sets out, its own shares represent excellent value (and shares are needed to satisfy the employee scheme).

Even quite a modest one off buyback budget of £5 million (which could come out of the super profits for the last Q.) could made all the difference in addressing the above.

[casual47] 28/6/2020 23:23

New, who knows. The point is that there will likely be lots of debt for years to come, e.g. Dugbe also.

A sensible dividend policy does not require a company to be debt free as pre-requisite. As long as debt can be serviced and the debt/EV ratio is within sane limits then there is nothing stopping a dividend. In fact, this is how most companies operate and have done so throughout the years.

[new_buyer] 28/6/2020 22:25

casual47 there’s nothing to say they will use the entire $100m of debt available, if they do what will they do with the cash being thrown of by Yanf? They can’t pay the loan of early without penalty so surely they aren’t going to let it just build up with no plans on using it?

[ukgeorge] 28/6/2020 21:20

I think just the announcement of the start of a share buy back would really help improve sentiment and hopefully get the share price moving.

But for arguments sake they could spend £11M to buy 10% of the company today. In 3 years we produce 180koz and have a margin of $700 that's $126M. So for £11M we would gain $12.6M of extra profit. There aren't many investments that could offer a better return........Maybe Cora but for whatever reason they didn't take part in the last rights issue.

The new project though does obviously lower the likelihood of either a dividend or share buy back.

Perhaps we could be lining up a bid for Bunker Hill.

[laurence llewelyn binliner] 28/6/2020 20:27

Q2 closing on Tuesday, then reporting early August.., and this is the 1 we've been waiting for a very long time, with net cash positive anticipated ... :o)

Q4 2019 Cash and Gold in hand USD14M, bank debt 40M, trade payables 39M
Q1 2020 Cash and Gold in hand USD25M, bank debt 34M
Q2 2020 Cash and Gold in hand USD37M, bank debt 28M (est) trade payables tbc

[moljen] 28/6/2020 20:18

You can of course buy back shares and hold them in Treasury rather than cancelling them - nice little war chest could be accumulated at this price and the shares down the line be used for a paper acquisition when hopefully the share price is somewhat higher.