Hummingbird Resources Share Discussion Threads

[moljen] 08/7/2020 21:07

Bloody hell BT, bet you smiled when you made that post. First time in what, 3 years you've been a right old miserable git. Pleased you're enjoying some gains on your remaining holding. I also have a smile on my face with a sense of schadenfreude after your recent off load. Everybody's happy then, at long last.

[borderterrier1] 08/7/2020 20:37

..........But a pencil must be lead? Stan Laurel

[wassapper] 08/7/2020 19:13

NB - yes, but of they keep the cash, the impact on net debt will be the same. That is really what I meant. Net debt to zero and positive cash. However they do it.

[new_buyer] 08/7/2020 19:02

You can lead a horse to water......

[new_buyer] 08/7/2020 19:00

Wassapper there is no incentive to pay the debt of quicker, no saving on interest payments so not sure they’ll do that.

[wassapper] 08/7/2020 18:41

LLB - good points. If the POG stays high, we could see HUM debt wiped out in months, more quickly than they thought of course. Continuing my Perseus comparison, they have over $150m of debt.

I'm certainly looking for the share price to be above 50p and probably at 60p by the end of the summer if gold holds up, and why would it not with all these free meals being given away!

[wassapper] 08/7/2020 18:29

Given the gold price move over the last 3 months, and the earnings potential of a non-hedged company like HUM, there appears to be very little excitement in the market at this point. I've been through a few of the bull times over the last 20 years, and we really haven't seen anything yet. There is no frenzy like in the early 2000's. If gold holds above $1,800 and moves steadily towards $1,850 or more, we can expect a lot of new names to appear here. HUM is well undervalued compared to peers on EV/oz.

A doubling based on rising gold price, announcements for Dugbe project and Kouroussa, and upgrades/extensions to Yanfolila offer a lot of news and value add here.

NPV for Dugbe might be $250m to HUM at $1,800 POG. NPV for Kouroussa (100% HUM) is the same. Plus Yanfolila. All good grades with strong cash flows.

Perseus, also W African based, has an Ev/oz of around $295. It wants to expand to >500k oz pa but that is in 3-4 years. But at the moment it is just producing around 200k oz. HUM has an EV/oz of around $70/oz.

On any measure HUM is undervalued and when the speculators come in search of gold companies HUM will look like the bargain that it is.

[laurence llewelyn binliner] 08/7/2020 18:27

For some perspective... the share price is still hovering around where it was in summer 2015/2017/2018 when POG was USD1250/Oz

Nothing is yet priced in for Kouroussa, Dugbe, the additional Yanfolila production from the new ball mill, and the not insignificant matter of 1800 POG..

1 Sparrow does not make a summer.. :o), but as the quarterlies stack up with repeat 30,000 Ounces and we turn net cash positive into debt free the re-rating process has to continue..

TR1 now printed for around 5.3M from Sustainable Capital reducing their position which could explain the share price lethargy to get to and clear 30p..

Onward and upward, 40p next and maybe 50p for Xmas..

[new_buyer] 08/7/2020 17:58

Gold over $1,800 and the share price ends the day at 34p, news just around the corner, what’s not to like?

[imnotspartacus] 08/7/2020 15:26

Gold $1817 come on!

[dickbush] 08/7/2020 15:20

Fun and games in the gold market...good for HUM

[cinoib] 08/7/2020 14:43

Gold do it's nut and plenty more to come over the short term as I have 2000 pencilled in by year end. Bloody AAZ hasn't even batted a eyelid today yet nearly all other goldies are up.

[qs99] 08/7/2020 14:36

As i've said, this just looks the wrong price, and wassapper v. good point.

[wassapper] 08/7/2020 14:28

I'm looking at the June presentation on the web site. Dugbe NPV is interesting:

PEA2 $1,300 /oz AU $1,500/oz AU
Cash cost/oz (years 1-5) $749 $759
Cash cost/oz (LoM) $894 $904
Capex (m) $212 $212
NPV (m) (10%, post tax) $186 $337

At $1,800 plus gold do we have well over $500m? I know it's a JV, $250m plus to HUM for no capital risk? Not bad. And Ian Stalker gets things done.

I was always here for Dugbe.

[wassapper] 08/7/2020 14:25

hxxps://hummingbirdresources.co.uk/wp-content/uploads/2020/06/Corporate-Presentation-June-2020.pdf

[wassapper] 08/7/2020 14:21

I'm looking at the June presentation on the web site. Dugbe NPV is interesting:

PEA2 $1,300 /oz AU $1,500/oz AU
Cash cost/oz (years 1-5) $749 $759
Cash cost/oz (LoM) $894 $904
Capex (m) $212 $212
NPV (m) (10%, post tax) $186 $337

At $1,800 plus gold do we have well over $500m? I know it's a JV, $250m plus to HUM for no capital risk? Not bad. And Ian Stalker gets things done.

[wassapper] 08/7/2020 14:02

Added another 10,000 as a top-up for the ride up to 50p. A small purchase I know but HUM is about to get the recognition it deserves.

[lasata] 08/7/2020 13:51

Who are the sustainable Mauritius company reducing their holding?

[borderterrier1] 08/7/2020 12:57

new-buyer! I did wonder why you hadn't been on here for some time after your delusional rant a few weeks ago. It's good to see you back..... even though you still aren't smart enough to provide a link that actually works. Replace xx with tt? Hummmm, let me see. Fabulous company! I ALWAYS had faith in them. Good luck to all the long time investors here.

[temujiin] 08/7/2020 12:23

Funny how he is now in at 29, when he was always saying he was out at 29 for the "rinse and repeat". Hindsight trader methinks.

[ukgeorge] 08/7/2020 11:38

Cinoib, I personally still think there is a great deal of upside here.

Sure there are likely going to be some pull backs along the way but the fundamentals are astounding and any retrace will fingers crossed just be a buying opportunity.

[techandy] 08/7/2020 11:10

Back in at 29. Will be out soon though as it's looking a bit over priced now.