Hummingbird Resources Share Discussion Threads

[plat hunter] 07/2/2023 20:25

Agree LLB although I think a 750 EBITDA margin on 28k might be a tad optimistic even by my standards. If we get anywhere near that kind of number then I defo can't see the CIG dilution getting signed off.

[laurence llewelyn binliner] 07/2/2023 20:14

#PH, a lot can happen between now and the AGM late June, the CIG equity would have been in discussion as a backstop in Oct/Nov before we delivered our Q4 +11M EBITDA..

Q1 SHOULD be c28,000 ounces at 1900-1250 AISC for USD18M EBITDA
Q2 around the same, so by AGM time our cash position will have materially improved, and our IIs will not want to see any dilution unless absolutely necessary..?

USD3.8M for an issue of 39,360,800 shares is 10%
USD1.5M for an issue of 22,688,844 shares to Cassidy c5%

Following admission the companies issued share capital of 455,773,694 ordinary shares, CIG tranche2 would not be for draw-down until H2 at the earliest even if approved, and we may well not need it by then..?

[plat hunter] 07/2/2023 19:40

We're back to hoping for some good numbers out of Q1 to see how likely or unlikely this is going to be.

But given the 80-90 Yani guidance it also might already be decided. As it stands atm though, it's not getting my vote.

[kinbasket] 07/2/2023 19:38

That's fine. Happy to disagree. That's what makes a market. Good luck.

[plat hunter] 07/2/2023 19:29

No I don't agree... There's a lot of presumptions you have to make to come to that conclusion.

A company can issue equity for a multitude of reasons other than back to the wall equity calls.

That said this might not even happen yet, the AGM is a long way away from today in terms of a cash flow turn around and it's a completely different landscape now as to what it was when these conversations started over 3 months ago

To me, this sounds like that HUM saw at the back end of H1 last year, that they "might" be needing an extra 15 million come Kor commissioning production and this is it (if it's needed).

[kinbasket] 07/2/2023 19:11

Agree. But Coris is also in a position to set the price of the car. Who else would outbid CIG to step in at a lower level in the capital structure to Coris and provide equity funding if Coris won't provide more debt.

Surely you can see the conflict of interest ? Investors are trusting a lot of people here to behave properly.

[plat hunter] 07/2/2023 19:07

And if someone offers me 20k and I give you first refusal to match it, if you don't or can't then guess what???

You ain't getting it.

That's your first refusal

[plat hunter] 07/2/2023 18:55

Sorry Kinbasket... Your interpretation confused me.

1st refusal of participation doesn't mean exclusivity. It simply means they get asked if they wan't to participate first.

For instance if I give you first refusal on a car that's worth 10k it doesn't mean you can buy it for 2k and everyone else is excluded from bidding does it?

[temujiin] 07/2/2023 18:22

"A preemptive right is a right of existing shareholders in a corporation to purchase newly issued stock before it is offered to others. The right is meant to protect current shareholders from dilution in value or control. Preemptive rights, if recognized, are usually set forth in the corporate charter"

This is a non issue, who cares who buys the shares if more are issued....unless they have the rights to more than the % they already hold....which would be unusual imo. Clarification needed.

[laurence llewelyn binliner] 07/2/2023 18:13

My thoughts too #PH, were on a 1st refusal basis to keep their % holding as is, IF there is a further raise..?

An unpleasant turn of events in the funding of Kouroussa, has it run over budget..? probably yes as it is not immune to inflation, but it is on time and the contractor(s) Soutex/WACOM are on an incentive to get it finished on time which IIRC were some free shares..

Total Project capex of USD97.5M for a 1MTPA processing plant and establishment costs, with an additional budget of USD10M for pre-production mining cost and USD7.5M for contingencies (115M all in)

[temujiin] 07/2/2023 18:06

Doesn't that just mean they have the right to participate? If so its neither here nor there.

[kinbasket] 07/2/2023 18:03

Maybe. The RNS states.

In addition the Company has granted CIG a pre-emption right in relation to further equity issues by the Company while it holds 20% or more of the Ordinary Shares

[plat hunter] 07/2/2023 17:21

You've lost me here kinbasket...

"pre-emptive rights clause from earlier."

Have I missed something?

[sleveen] 07/2/2023 16:56

A new conspiracy theory, wonderful.

[kinbasket] 07/2/2023 16:30

I'm not too sure it does... Wouldn't loading Yani for 1 good quarter not be counter intuitive to wanting to depress the share price for your new mates.

I think you're missing my point on the pre-emptive rights clause from earlier. It isn't these shares that matter it's the next ones. The holder of the debt and sole funder of the project has (via CIG) pre-emptive rights over all future issuance. It's a massive conflict of interest. If they need to go to Coris cap in hand for more debt Coris can say no. Then they need equity funding from guess who. What price does that happen at ? buttons. Coris now hold all the strings here.

The reason for ramming the grades this quarter is unknown but it's what they are telling shareholders they did. Maybe there's an EBITDA covenant in the loan ? who knows.

Too many red flags.

[kinbasket] 07/2/2023 14:42

Apols. Picked it up from your post. point still stands.

[plat hunter] 07/2/2023 14:41

Wasn't me, try again

[kinbasket] 07/2/2023 14:39

Yesterday Plat asked.

"Anyone else still trying to figure out what Betts' plan is for getting DOWN to 80-90,000 ounces from Yanfolila in 2023 after a 4th qtr that annualises at circa 113,000 oz? Is he just setting himself up for a big bonus? Who on the BoD nodded this through?"

Today TBTT said.

My best guess is the somethings you're not being told are that they've mercilessly high-graded Yanfolila to get one good quarter, and that Kouroussa is running over budget.

Can you see the grift yet? They are literally telling you what TBTT is saying.

[trader465] 07/2/2023 14:34

Aye sheer greed and paid for with shareholders money, compare that with the directors at ALTN on about $40k each

[temujiin] 07/2/2023 14:34

It's hard to find an AIM CEO or director that doesn't think they're worth at least half a mill, no matter how the company does.
Thought about selling 50%, but think I'll tough it out until Kouroussa comes on stream.

[tigerbythetail] 07/2/2023 14:27

Hi Trader!
I kind of new that the directors here were grossly, obscenely overpaid. But to see it in black and white like that is still shocking.