Hummingbird Resources Share Discussion Threads

[polaris] 07/2/2023 10:47

On completion of the share issue the total number of shares will be near 600 M. EV will be approaching $170 M. CIG get a good deal, but that doesn't surprise me at all. Kouroussa funding now all there. Expectation of Yanfolila continuing to be cash positive after remedial work. share price progress looking forward all down to debt reduction once second mine in production. At 200 k oz run rate at FY23, constant EV gives a share price increase of 1 p per month or 25 p expected share price by time dent paid down. Still a lot in it for the patient shareholder.

[plat hunter] 07/2/2023 10:44

Aye but the people who can scuttle this are those who didn't buy at 6p.

[arlington chetwynd talbott] 07/2/2023 10:39

From the perspective of someone who was buying at 6p and does not have a 60p target, this is, on balance, positive. The market seems to see it that way too.

[plat hunter] 07/2/2023 10:35

Dilution ultimately because of missed production though... Disappointing

[laurence llewelyn binliner] 07/2/2023 10:33

Disappointing for sure, BUT we knew only USD15/35M had been secured from Coris with 20M was a work in progress which I was hoping they would underwrite, dilution yes, but it does result in 15M less debt and de-risk the company now as Kouroussa advances to 1st pour and makes sure it happens on time..

[tigerbythetail] 07/2/2023 10:32

Farrugia - They haven't brought the debt down! It's still there.
This is a hefty dilution to fill (or maybe only partially fill) a sizeable black hole in the accounts.
The upside is limited now, whilst the risk of failure remains very high.
This will languish near the placing price for months.
(ALL IMO)

[trader465] 07/2/2023 10:27

Shareholders are now paying the debt with huge dilution of holdings

[farrugia] 07/2/2023 10:23

debt was too high, they need to bring it down.

[sclper] 07/2/2023 10:19

It takes away all the uncertainty over funding. Strong holder took the shares not like a discounted placing and Kouroussa will be producing very soon which will take the company to another level

[tigerbythetail] 07/2/2023 10:17

Hi sclper!
It's a huge amount of dilution for not much money. It takes away much of the upside for shareholders if HUM do ever manage to turn the business around (a big if).
And $15m may well be not enough to fill the financial "black hole" in HUM's accounts. Notice how a) Yanfolila was high-graded (aka pillaged) to produce last quarter's good result, and b) how there was no reference to Kouroussa being on budget in yesterday's RNS.
Maybe this was necessary. Maybe HUM had no choice after the disastrous performance of last year. But it's not good news for shareholders.

[sclper] 07/2/2023 10:11

CIG is a related party to Coris Bank the company's funding partner. Probably been planned for a while as the bank wanted to take an equity stake in the company. Coris has been very supportive of HUM

[trader465] 07/2/2023 10:08

8 minutes after my post they 157m share dilution lol

[tigerbythetail] 07/2/2023 10:03

RNS out - massive dilution to plug the holes in the balance sheet. Ouch.

[aimsurfer] 07/2/2023 10:02

Almost 40% dilution, disappointed they couldn't get debt to fund the additional 15m. If lenders had enough, then no other option here. 20p is now my 12 month exit target.

[plat hunter] 07/2/2023 10:02

That's a kick in the nuts...Was hoping we could avoid something like thiz

[sclper] 07/2/2023 10:00

Strategic investment for $15m by CIG with 12 month lock in. Will stop any uncertainty over funding and no worries about shares being sold into the market like if it was a normal placing

[sleveen] 07/2/2023 09:57

Interesting development.

[farrugia] 07/2/2023 09:54

STRATEGIC INVESTMENT, ANYTHING THAT REDUCES THE RISK AND PUSHES UP THE STOCK PRICE FROM THIS PATHETIC LEVEL IS WELCOME.

[sleveen] 07/2/2023 09:40

Yes it does and it will, perhaps needs another quarter's improved production.

[plat hunter] 07/2/2023 09:32

It is yeah but that's because I'm done buying now.. Bought too many too early, managed to also buy at near the bottom but chances are you will eventually when buying all the way down.

I can't bring myself to add anymore other than a monthly direct debit into an ISA for relative peanuts compared to my bulk holdings.

Ergo it now needs to fly

[jaspoland] 07/2/2023 08:57

PH, is that a problem? Personally I see it as an opportunity.

[plat hunter] 07/2/2023 08:38

Well we all love it, question is does everyone else love it? The problem for us early adopters is that no one else even knows about it.