Hummingbird Resources Share Discussion Threads

[darola] 29/9/2017 13:23

Zh - if you think this is risky Id suggest a trip to the Halifax. They'll give you a lovely low risk 2%.

[divmad] 29/9/2017 11:39

Blimey, working day and night to get the plant fully built.

[zhockey] 29/9/2017 11:20

Fair value to overpriced right now IMO. Need to get past commissioning risk.

[brucie5] 29/9/2017 10:54

Breaking out shortly, one hopes.

[zhockey] 29/9/2017 08:13

Div, only if there is a cyanide robber like copper but I don't think that's the case here.

[divmad] 29/9/2017 07:31

Will there be issues to do with mixing concentrate from different sites? I'm no geologist but at least the Yanfolila deposit is homogeneous and should therefore be relatively simple to process.

[zeberdie] 28/9/2017 21:02

Using Yanfolila as a hub I wonder how many more satellite deposits we can bring into the fold ? Could this deal just be the beginning of more to come ?

[rickyhatton] 28/9/2017 20:25

Cora gold due to list on 9 October IF they have the cash.

[rickyhatton] 28/9/2017 20:20

Nothing to stop them selling one project (Liberia) and buying another project in a familiar and positive jurisdiction (Mali)

[dingo75] 28/9/2017 19:45

whato
tremendous figures

so that's
$90m free cash flow pa
inc new acquisition.
v cheap still.

[darola] 28/9/2017 19:39

Think it depends what happens around Yanfolila. Once it's up and running and just operating as a conveyer belt, then the BOD may have had time to start developing Liberia - got to do something with all that free cash, or we're going to start getting one hell of a dividend!!

[rickyhatton] 28/9/2017 16:22

zeb

Thanks for podcast. Rock solid.

I would not be surprised if Liberia was sold at gold in the ground prices.

[chipperfrd] 28/9/2017 15:48

zhockey re AGG: No

Darola,

The 50% split relates to the new operating company that will be jointly formed if HUM are happy with DFS. If so they will fund the c. $35m of pre-production CAPEX.

The Mali gov will have a free carried 10% of the Op Co and has the option to buy in for another 10%. I assume they will have 20% of NewCo.

The split in NewCo would appear to be quite separate from the 20% (plus warrants) held in AGG itself. But much can happen in the intervening period and HUM might well go in for more. We will have to see.

Chip

[darola] 28/9/2017 15:32

Not sure if these numbers include our 20% holding in AAG. Which I presume means we get 20% of their 50%? So really 60/40

[plasybryn] 28/9/2017 15:17

Like it.
No dilution. CAPEX from free cash flow in 2019 to build Conc. plant, which could increase from $70m p.a. to $85m p.a
Interestingly once we get to their 20% holding for £4.815m & they are happy with DFS outcome, they will create in 2019 a new J.V. company putting in the assets with AGG owned 50% each.
25,000/30,000 ozs attributable gold.
Looks very well thought out.
Bert is enthusiastic & knows his numbers.

[zhockey] 28/9/2017 14:28

Chip, are you buying AGG?

[qs99] 28/9/2017 14:12

YUP AGREED Charles, oops not sure why caps was on,......looking forward to this driving through 40p and onwards, thanks for calcs above to all, looks a great addition IMO and market will begin to wake up to that fact....DYOR

[charles clore] 28/9/2017 14:04

Looks like someone hoovering up sells at anything below 35.5p today.

[bishan bedi] 28/9/2017 13:56

Thank you chipperfrd.

I'd be interested to follow the process of your assessment of the impact on NPV, if you feel you can post it on here.

[darola] 28/9/2017 13:49

If the AISC is same as current, that 20k oz share adds circa $12m to HUM coffers.

[chipperfrd] 28/9/2017 13:25

Bisan bedi,

I think it is clear from the announcement that Kobada will only be developed for mining, crushing, pre-conc and gravity conc.

Any further processing would duplicate what is available at Yanfilila and would require much more complexity and additional CAPEX and OPEX.

HUM have 120 days for full due diligence and may yet decide to pull out. But clearly Kobada provides additional optionality and will likely provide a further boost to the overall NPV/IRR of Yanfilia. I hope to try and assess this aspect as soon as I have a bit more time.
Chip

[catsick] 28/9/2017 13:25

Tiny bit of dilution for the second tranche of shares if they go through with the deal but only an extra 2pct

[zeberdie] 28/9/2017 13:21

No dilution, paid for out of production.