Hummingbird Resources Share Discussion Threads

[dickbush] 02/12/2020 08:39

More important things on our minds right now but for the record the average gold price in November was circa $1867.

With 14,000 oz produced in the first two months of the qtr, we should expect the total to be in the range of 21-25,000. I guess the AISC isn't going to look good either.

As you say, goldgoldgold1, BT is going to have a field day with this. I'm certainly wearing egg. I thought 2020 was history and I could just sit back and wait for a return to the top end of the production target in 2021 and the discounting of Kouroussa's production in 2022 plus some good drilling results.

[qs99] 02/12/2020 08:37

Let's also be clear, to be able to operate in much of Africa, you have to use local management, whether there is a decent enough trained pool in loco to cope with stresses and strains of such an operation who knows, it can't be easy.

DYOR

[bubloo] 02/12/2020 08:26

you can buy at 29.550 and sell at 29.551 interesting stuff going on . I think some buying going on the dip. never seen this before.mm's short of stock ?

[laurence llewelyn binliner] 02/12/2020 08:13

Q1 - 30,282 poured | 24,575 sold
Q2 - 24,054 poured | 31,520 sold
Q3 - 24,722 poured | 23,794 sold
YTD 79,058
October 7,000
November 7,000
YTD 93,000
December 10,000 est
FY estimate 100-103,000

Not at all bad I would suggest under the circumstances, debt payback is still on for H1-2021, and the higher grade ore is still there for Q1.. :o)

[goldgoldgold1] 02/12/2020 08:13

Most painful thing about this is that it continues to prove BT correct.

[bubloo] 02/12/2020 08:10

some buying on the dip going on

[aimsurfer] 02/12/2020 08:09

The fact that the had to change management on site highlights they didn't deliver. The board chose them. Despite the above the share price is cheap, can't get quotes to buy, submit order to buy under 28p.

[dickbush] 02/12/2020 08:03

It never rains but it pours down.

I'll add.

[bigglesbingham] 02/12/2020 08:00

I agree but the wording could have had a more positive spin.

[goodgrief] 02/12/2020 07:59

What bearing did managements' level of experience have on the pandemic and coup?

[aimsurfer] 02/12/2020 07:58

Gold over $1800 again, don't sell out for cheap. Company still generated plenty of cash in 2020 and paid off most of their debt despite all these challenges.

[bubloo] 02/12/2020 07:57

If you read carefully there is a material risk that they MAY NOT reach lower end of guidance is what I read. In my view of mining higher grade now I think at most they may lose about 3000 ounces short. They may well make up the short fall in December and have a bumper January.

[temujiin] 02/12/2020 07:46

Ditto that, have placed an order for 20,000 if people want to get upset that the planned higher grade to be mined was shifted to next year instead of this year, which is pretty much all that has happened.

[aimsurfer] 02/12/2020 07:38

Happy to buy more here if share price gets dropped to stupid level. Can't ignore price of gold.

[aimsurfer] 02/12/2020 07:35

If price of gold was $1100 I'd agree. If I'm honest the managements lack of experience has cost the company at numerous time. They have been lucky and saved by the gold price. The mine has already paid itself off. They have at least 4 years of mine life left. I don't think they will steal all that future cash flow :)

[laurence llewelyn binliner] 02/12/2020 07:34

Not a surprise as the years challenges have unfolded...FY revised estimate now nearer 103-105,000 ounces poured..Largely priced in I would suggest at 31p..

[aimsurfer] 02/12/2020 07:28

Lower production will increase the AISC slightly but we already knew that. High grade gold remains in the ground and getting mined now so overall no major impact. They will still get to over 100k oz gold this year, slightly below guidance.

[fsawatcher] 02/12/2020 07:18

this goin to 20p

betts still takin huge salary bonus rewards

it rainy season every year in mali innit

did betts guide 125k based on no wet season?

that poor management innit

guidance shudda had wet season factored in

sommat very wrong with this mine

it never gonna pay shareholders back

it need constant modifications and capex

[temujiin] 02/12/2020 07:13

Looks like HUM might miss the lower end of their gold production target this year. Given they have had Covid to deal with, a coup closed borders and ''wettest rainy season on record'' I hardly find this surprising if disappointing to hear.

They do point out it was also partly because they mined lower grade softer ore to preserve mining equipment whilst access to parts was difficult, but that the higher grade is still there and now being mined. Should leader to a better than forecast next year.
=======

To view the RNS with illustrative maps please use this link:

Key operational updates:

-- Site visit focus: The main focus was to spend time with senior site management, review Hummingbird's current and future mine plans, review the 2021 budget process, run through the mine operations, plant, facilities and overall processes in place and visit several of its community projects

-- Management: Reviewing managerial changes made last quarter to improve group operational performance, reporting lines and efficiencies. The review of managerial roles and accountabilities is ongoing, however the Company is confident that tangible improvements have been made and will continue to be made under the recently internally promoted General Manager (" GM"), Edrich Welthagen

-- 2021 Budget: Review of Hummingbird's initial draft 2021 budget was conducted, which the Company expect to finalise in the coming weeks

-- Production: After a thorough review with the new leadership team on site and following two challenging quarters, it has become clear that the cumulative headwinds that the Company has faced this year means there is now a material risk of producing below its 2020 production guidance of 110,000 - 125,000oz. Total ounces poured year to date as at the end of November were approximately 93,000oz. Key reasons include:

-- As previously discussed in the second quarter of 2020, Hummingbird re-sequenced certain parts of the mine plan in order to access and process a greater proportion of softer oxide material. This was done to preserve wear and tear on critical parts in the plant during the unprecedented and unspecified border closures due to the Covid-19 pandemic. This strategy was successful in preserving the plant and on-going production

-- In the third quarter of 2020, the mine endured extreme weather events with the wettest rainy season on record. This led to the continued mining of oxides and waste that were of lower grade than the Company's initial start-of-year plans, resulting in lower production for that quarter. This was particularly the case from the Komana East ("KE") mining pit (see maps below)

-- Further, as the rainy season ended, a military coup in Mali enforced an additional border closure for approximately a month to compound the already complicated Covid-19 induced logistical complications the Company had faced, and which remain ongoing

-- Despite now being in the dry season and mining higher grade ore this quarter, it has now become clear that there is a material risk, as a result of the abovementioned factors, that the Company will not meet the lower end of 2020 production guidance of 110,000 - 125,000oz

-- It is important to note that ounces not produced this year are expected to be recovered in future mining periods. This is demonstrated in the attached diagrams of the key producing pit, KE, showing where the high grade ore remains at a depth below the current pit floor which was due to be mined in the original 2020 mine plan. This ore remains available and is currently being mined

Up-coming news flow highlights:

-- Drilling: A final drilling programme is being carried out at the Sanioumale East ("SE") deposit. Results to be released before year-end to complete Hummingbird's, to date, successful 2020 exploration and drilling campaign

-- Kouroussa gold project, Guinea: Pre-development plans are continuing. The Company is awaiting the award of the mining license by the government to then move into the development stage of this exciting gold project once pre-development plans are complete

-- Mineral resource model update: Once drilling at SE is finalised, Hummingbird will update the Yanfolila mineral resource models and aim to release those findings in Q1 2021

-- 2021 budget: The Company's 2021 budget is expected to be finalised in the coming weeks, with the aim to release in Q1 2021, including key findings and forecast estimates

Dan Betts, CEO of Hummingbird, commented:

"2020 has been a difficult and frustrating year. The harsh reality is that should we fail to meet guidance, no matter what the circumstances, it will be viewed as such and this is a fact that weighs heavily on the team. That said, I remain extremely proud of our people on the ground and all that they have overcome this year in challenging times. I do believe that Yanfolila, which will have paid off all its debt in the first half of next year, is well set up to deliver solid production for the years to come. Our exploration programme this year has produced many encouraging results which we are confident will contribute to additional resources being included into the mine plan to extend mine life.

"On other matters, our pre-development plans at our new mine, Kouroussa, in Guinea continue and we are confident the mining license will be awarded soon. We will then move towards the development stage following completion of the pre-development plans of this exciting project, which will see us become a multi-asset producer in the coming years producing in excess of 200koz pa. Becoming a multi-asset producer is key not only for the Company's growth but also to mitigate single mine risks factors as demonstrated this year at Yanfolila. Further, we are finalising our 2020 exploration and drilling campaigns and look forward to releasing those updated results when finalised soon, followed by our updated mineral resource models in the new year."

[dickbush] 01/12/2020 21:10

Cinoib

To my previous point:

[cinoib] 01/12/2020 17:03

Gold has wings, must have had some Red Bull for breakfast, pitty it didn't save some for HUM.

[backmarker] 01/12/2020 16:54

I'm not on the gold train..... I'm on the HUM train (and the AAU train).

[aimsurfer] 01/12/2020 16:50

Nice close and strong volume. Gold is going one way imo, share price will eventually follow. In the meantime good to clear weak holders. Looking for multiple here, lots of positive news coming up that will help us get there imo.

[bikwik] 01/12/2020 14:19

The gold train has left the station!! All aboard!

[bikwik] 01/12/2020 11:39

Nice £182,000 odd buy earlier today...I expect you've all noticed.