Hummingbird Resources Share Discussion Threads

[lowtrawler] 20/7/2021 12:42

PH

To help me interpret that, is it documented somewhere?

Are you saying the JV company distributes production profits so as to return capital costs. Only once the capital costs are returned, do profits get distributed 51/49?

[plat hunter] 20/7/2021 12:35

No...Both contribute to capital costs of the build by virtue of the payback period with costs being returned via the JV company before profits are shared pursuant to the 51/49% split.PAS will not be contributing a single dollar to the actual build costs of Dugbe in advance of any ROC

[chipperfrd] 20/7/2021 12:23

My understanding is that Dugbe CAPEX will be split between the two partners in the JV.

[whitegold1] 20/7/2021 11:57

Doin alwhite but gen market malarkey aint elpin. Peopke like liquid cash when mkts turn to pig ship. Old for now boyz.

[lowtrawler] 20/7/2021 11:23

PH, if HUM pay 100% of the capital costs but VEIN only have a 49% economic interest in the mine - does that mean HUM get 100% of the cashflows until the capex is repaid in full and then it gets shared 51 / 49? I haven't seen anything indicating we would pay all the capex, can you point me to the arrangement which says this?

[cinoib] 20/7/2021 11:22

Seems a fair rns, cost down production up and now debt clear. Pity the share price doesn't reflect it as gold is on the march upwards again after the recent shorting. Looks like holding above 1800 this time round.

[plat hunter] 20/7/2021 11:11

I wouldn't be too surprised if HUM only use Coris bank for factoring with regards to the Kouroussa build. Few percent here and there to cover invoices as and when they come in, to offset against fcf is all gravy for a bank

[plat hunter] 20/7/2021 11:01

A bigger build also means that PAS see a quicker return on their investment. The 5mtpa plant is not definitive imo. 4MTPA for 300 million might be better for shareholders than 5 for 400.

[polaris] 20/7/2021 10:58

@Kinwah - read the statement by the board on how Kouroussa will be funded. They have stated that there will be no equity raise. HUM have shown they can repay debt for the first mine. This isn't a pie-in-the-sky outfit. They have made mistakes, but are one of the few AIM companies that are actually learning from past errors of judgement.

Dugbe is a longer term project and will require outside funding to build, IMO. I'd expect Pasofino and HUM to look for a JV partner for that build, as costs will be over $200 M.

You've still got a 100 k oz proven producer with decent LoM...for £70 M...even if you value the other prospects at £0, clearly stupidity given their progress.

[laurence llewelyn binliner] 20/7/2021 10:57

#Lowtrawler, AFAIR Coris bank have already agreed in principle to renew loans as required for Kouroussa, and likewise I see a 60/40 split coming to fund it, with no equity..

On Dugbe and the USD400M for that project, a DFS end of 2021 or early 2022 and a start early 2023, long way to go but 2000 POG will help a lot as we go along.. :o)

[plat hunter] 20/7/2021 10:55

I understand HUM's capital cost share to be 100% for Dugbe.Pasafino has an 'earn-in' agreement only, they shoulder the cost of the feasibility studies and exploration where as HUM take the cost of the build then the earnings are split 51/49%

[lowtrawler] 20/7/2021 10:23

Kinwah, as others have pointed out, Kouroussa is expected to cost c.$100m over the next 18 months but we are generating around $10m a quarter and so most of that can be self funded. I don't think debt financing $40m should be a problem.

In relation to Dugbe, it will commence build in around 18 months and HUM's share of the capital costs will be c.$200m. However, I think it will be at least 12 months before there is a funding proposal.

[kinwah] 20/7/2021 10:17

Lowtrawler I think the market has woken up. HUM has gigantic spending plans at Dugbe and Kouroussa. It has only just repaid the debt on Yanfolila. I don't follow the company closely enough to know what prospective debt packages it has in mind to open the new mines. However I do know that debt is cheaper if you raise equity at the same time as it reduces the risk of the debt not being repaid on schedule. Even though the share price is depressed I would be amazed if HUM wasn't looking at having an institutional placing or rights issue when it makes its big announcement on how much capital will be needed to fund its ambitious plans.

[lowtrawler] 20/7/2021 09:57

While we are all praising the results, the share price barely registers it. We have had a series of good news in recent days and the price is unchanged. About time the market woke up.

[polaris] 20/7/2021 09:55

A good Qly report, apart from the unfortunate fatality of a sub-contractor company personnel.

I make HY AISCs at $1437 on gold sold on 46809 oz and production of 47275 oz. At 26500 production and sales for Q3 and 4, that gives AISCs for the year around $1366 on 100 k oz produced and sold.

That appears to miss the AISC range...actually there is a rabbit in the hat. That 1972 oz of gold on hand can be used to bring down the AISCs, even if there are no improvements in Qly cost-base, which i expect will happen the longer the COO is in place. At current pog, it is worth about $25 on FY production in terms of reducing AISCs.

$9.8 M generated on the Q, after accounting for debt repayment and the sale of Cora stake. All debt retired. Cash on hand at end of period, including the unsold gold, of $12.4 M. With a steady pog around $1800 then cash pile grows by $10 M per Q from here...nice! That'll help with the cash/debt mix for funding Kouroussa in the next 6-7 Qs.

Looking forward to seeing the Q3 numbers. HUM will know progress week by week. To meet the FY forecast they need to pour 2 k oz per week. We are almost 3 weeks into period. They will have a good idea where things are heading already.

Next thing i want to see is the grade approaching the expectations. Beyond that, i want a better understanding of the resource base, in order to blend ore if necessary, to control AISCs, while building the next mine.

Close to £9 M in cash, on track for near 100 k oz production for 2021 at sub $1400 AISCs, starting next mine build in H2, and the further results and move towards DFS for Dugbe via Pasofino. All this is yours right now for the princely sum of £80 M market cap, almost £70 M EV...madness!

[sleveen] 20/7/2021 09:49

@ 30k oz/qtr AISC should be around a respectable $1100/oz

[golden prospect] 20/7/2021 09:20

Updated major holders in HUM
Wonder when Golden Prospect (GPPM) will join the club ?


Ruffer LLP 9.3%
Jupiter Asset Management 4.7%
M&G Investments 3.8%
Asian Investment Management Services Ltd 3.7%
Alwaha Funds Ltd 3.5%

[golden prospect] 20/7/2021 09:02

A great recovery story.

"Outlook: Maintaining 2021 production guidance of 100,000 - 110,000 oz of gold, with an AISC of US$1,250 - 1,350 per oz of gold. Full year production is expected to be weighted towards the second half of the year in line with Hummingbird's guidance expectations at the start of the year"


20th July 2021

[plat hunter] 20/7/2021 09:00

"If my auntie was bald she'd be my uncle"

[sleveen] 20/7/2021 08:33

You couldn't make it up.

[laurence llewelyn binliner] 20/7/2021 08:33

POG saved the quarter for us really coming in at 1800, grade was flat, if the slide had continued towards 1600 which was a concern, then we would not be in the position reported this morning, thankfully that changed..

Looking forward, operational performance is central to our objectives this year, and under the leadership of our new COO, we are implementing a number of processes and protocols aimed at cost reduction and productivity improvements across the business..

On Kouroussa funding, results demonstrate we could find USD60M (or more) over 18 months, and use +40M debt, if POG increases we have downside on the debt package..

Overall, an encouraging quarter performance..

[kennyp52] 20/7/2021 08:28

AISC so high … why ?? If gold retraces they need to shave loads of costs or increase production substantially . Compared to where CEY are going this is not that great imho.

[plat hunter] 20/7/2021 08:18

"They'll be lucky to break even this quarter"Remember that one lol

[sleveen] 20/7/2021 08:18

"AISC is very roughly +/- 50USD per 1000 ounces produced"


Even more roughly, 30k oz/qtr would have an AISC of around $1100/oz.

[whitegold1] 20/7/2021 08:13

Figz ok appy with that