Hummingbird Resources Share Discussion Threads

[johnhemming] 23/7/2021 17:16

@polaris I think you are essentially right. In theory we have a commodities supercycle, but all the hype is with tech and ludicrous things like bitcoin. Bitcoin is now suffering a bit of regulatory pressure. Remembering that I am a tech entrepreneur I think the tech market is massively overvalued. It cannot be that all of the tech companies will succeed. I will because my cash burn is negative, but that is another matter.

Twas ever thus, however. Back 100 years ago there were many automobile companies that didn't last.

In the end, however, businesses valuations will come out on their ability to make profits either to pay dividends or buy back stock. It may take some time, but (particularly as I hold some stocks that pay dividends) we have time.

[polaris] 23/7/2021 17:15

sorry, i should i have said valued at rather than worth ;-)

[sleveen] 23/7/2021 17:11

Hopefully HUM are worth MORE than the sum of its parts :-)

[dickbush] 23/7/2021 16:17

polaris, I think investors have got the picture on VEIN's need for cash again soon.

It does look as though investors are less willing in this cycle to give generous valuations to exploration companies. It now seems to be "I'm from Missouri."

Maybe I'm whistling to keep myself happy, but current economic circumstances suggest to me that the undervaluation this cycle is as daft as the overvaluation last time around.

But, hey, I could be wrong.

It won't be a first.

[borderterrier1] 23/7/2021 15:10

Plat Plonker. Here's a question for you. Why did Bert Monro leave Hummingbird to go to Cora?

[plat hunter] 23/7/2021 13:26

Hi Polaris... That's the bit that you keep missing, it's what the words say that is more important than what words spell.Anyway, I'm gonna let this go now, haply enough to keep the bet open for anyone who wants it, yet equally happy ti enough wait until what will eventually transpire. God bless for now,

[polaris] 23/7/2021 12:09

The consolidation in VEIN yesterday and the comments in the second interview a few weeks back with Ian Stalker suggest a change of tack to gain exposure, as LLB pointed out.

At a share price of C$0.075, many would-be larger investors might be put off, the penny stock effect. Above C$1 is another story, even though nothing really changes for the company. It's all about perception. It is not without risk. Many shares post consolidation just trend further down. Let's hope it isn't the case here.

In the interview, Stalker states that they expect some further assays soon (a few weeks). That suggests more RNS are on the way, probably next week to try to reinforce the share price post consolidation.

Another point in the second interview that may hurt VEIN in 2021 is another funding round before the DFS is submitted. Stalker stated that VEIN only have about C$4.5 M left from the recent C$9 M fundraising and that they are good to Q4 2021. DFS is expected in Q2 2022. Larger investors will want a larger slice of the pie for as little input as possible. VEIN have a deadline to meet and will need enough cash to meet their obligations. That's not an ideal place to be.

From HUM point of view, the DFS submission allows the value of Dugbe to be reflected, particularly if they convert their interest into a direct shareholding in VEIN.

All we need in Q3 is a steady production Q meeting the FY expectations, some contracts signed on the funding and timeline for Kouroussa and further regular updates from VEIN. I'd hope there is little downside from here in HUM.

[sleveen] 23/7/2021 10:42

Agreed.

Let it lie.

[dickbush] 23/7/2021 10:17

I for one would be very grateful if, PH and polaris would stop filling these pages with their back on forth. I'm sure that, by now, we've all made up our minds on the subject based on the evidence presented. For pity's sake, let it go.

[johnhemming] 23/7/2021 09:48

>With regards to your previous experience of JV'S
My previous experience with JVs tends not to be with listed companies as the JV although oddly enough it was with Stock Exchanges which themselves were listed (OM, Nasdaq). You can see them on my companies house records.

[plat hunter] 23/7/2021 09:24

That's at least one thing we can all agree on 300k attributable ounces is not something one shakes a stick at.

[dickbush] 23/7/2021 09:22

chip, many thanks for your work on cash flow over the next couple of years if the gold price stays around $1,800. It would be nice if, for a change, everything goes somewhere near to plan. Then, finally, we could be looking at the multi-bagger we thought we were investing in.

[plat hunter] 23/7/2021 09:09

Lol how apt is it that this would show up today...Lots of f words too, so probably not one for the cry babies."OR"Https://fb.watch/v/32C1bDU-9/

[plat hunter] 23/7/2021 09:09

Lol how apt is it that this would show up today...Lots of f words too, so probably not one for the cry babies."OR"

[plat hunter] 23/7/2021 07:35

John i 100% repsect your replies, you're the only person who has been open minded enough to consider any different here.With regards to your previous experience of JV'S can I ask how many you've come across with a clause that allows the primary to back into the secondary for a pre determined equity that equals the original economic interest?

[chipperfrd] 23/7/2021 07:31

JH,
Will try to get back to you re Kouroussa on Sunday as I am away until then.

[plat hunter] 23/7/2021 07:27

Imo John It is relevant though in this instance, backing into vien leaves Ian and his stakeholders 49%Unless of course we genuinely think HUM will put up 100% costs, whilst appointing a project manager and not taking a majority stakeholding. Or we genuinely believe that VEIN have the capacity to raise circa 270 million over the next 3 years.

[johnhemming] 23/7/2021 07:16

@plat hunter
I don't myself see any uncertainty about the concept of a shareholding/economic interest. The government may be protected against dilution, but it would be surprising to see any other entity protected and I don't see that in the RNS.

What happens if HUM take an interest in VEIN is another issue, but not really relevant to this.

[plat hunter] 23/7/2021 06:54

John....Think about point 5 If HUM back in to VIEN for 51% then pasofino take 100% of dugbe which is equal to an 'ECONOMIC' interest of 49% the very same they have now for delivering the DFSThey contribute the fair share as you previously suggested they hold 49% of project benefit...If they don't then HUM take 51% majority share of VIEN for purpose of funding 100% dugbe leaving a 49% economical interest.This is point 5 in a nut shell

[johnhemming] 23/7/2021 06:54

@chipperfrd

Thank you for your work on the DCF models. Could you please explain the assumptions for Kouroussa and how you see the balance of debt funding and company funding?

If you want to email me the models at [e-mail] that may be easier.

Looking at VEIN one would assume that if HUM took 51% of VEIN then VEIN would count as a listed subsidiary and hence appear in consolidation accounts.

[johnhemming] 23/7/2021 06:46

There are two points on 5).

What we don't have is the contracts. We have an RNS. Hence I would not say it is the whole story.

As it stands I don't see the word "undilutable" in it. What I see is the normal way of running a joint venture which means that if more equity is required then if people don't pony up they get diluted.

That is our disagreement. I don't think there is any uncertainty. I am not a lawyer, but I have probably too much experience of litigation.

[plat hunter] 23/7/2021 06:44

You know, it's recently been proved by scientists that people who people in conspiracy theories and collective bias have a lower critical thinking ability than the norm.Https://fb.watch/v/TWhBIlfM/