Hummingbird Resources Share Discussion Threads

[jaspoland] 21/3/2023 12:49

Temujiin, hindsight is a wonderful thing. The suggestion was doing so now and I'm of the opinion now is not the right time for the reasons LLB states. If gold went to $2.5k in the next 3 months I'd maybe review.

[temujiin] 21/3/2023 11:12

If HUM had hedged 10k a quarter at $2000+ two years or so ago we, wouldn't have needed the latest dilution. I regard it as an insurance policy and there is a place for hedging imo, when POG is high.

[laurence llewelyn binliner] 21/3/2023 09:10

Given the fact that QE seems to have started again, interest rates should peak soon and then retrace to avoid recessions, POG is more likely to keep going and blow through 2,000 soon for starters, I would not lock much into hedges as the macro environment looks weighted on our side for taking spot..

[polaris] 21/3/2023 09:03

Yes, the majority of hedges are imposed rather than entered into voluntarily. In the case of HUM, the only reason to hedge would be after taking account of production, costs and payback profile for the Kouroussa mine build. If cash-flows are sensitive to an extent that covenants could be broken in future at a certain pog, then you might hedge. Otherwise, you take spot.

[farrugia] 21/3/2023 08:20

the benefits of hedging can be showing with DEC (gas producer) - it brings stability. Unless you want to risk further dilution you will look at hedging for Hummingbird as an attractive proposition.

[plat hunter] 20/3/2023 20:48

Don't see why HUM would want or need to hedge...100k ounces is enough to pay the debt off here, also doubt that gold price won't go sub zero as oil did in 2020.

[polaris] 20/3/2023 18:51

It is a matter of timing. I've been in goldies that were destroyed by hedging - AVM is by far the worst offender that i sold out of many years ago, as a result of the 'Henry Hedge'. It hamstrung the company going forward and i told the CEO so in an interview back in the day. Hedges have their time and place. HUM is a candidate for a hedge, but only once Kouroussa is producing. That will allow forward planning on the debt repayments as and when. We do not know where gold will be come end of June, foreseen first production. I'd look to hedge depending on market conditions and the progress of shakedown in H2 2023, to guarantee debt payback schedule. Not before...

[dickbush] 20/3/2023 14:28

It seems a lot of people here want to see HUM "swing for the fences" no matter what the state of HUM's finances. I'm with you, Farrugia.

[borderterrier1] 20/3/2023 13:24

At last, some welcome signs of improvement? Perhaps. Let's all hope it continues and fingers crossed "management" don't FK it up again. At this stage, I've been bitten too many times in the past and I'm not 100% convinced its not just another sprat to entice more unwary investors. Hedge? Maybe not. You can't pay more for your funding that the profit you make from your assets. The profit here is all going to the "management." We all know by now, (or we should do), that the guy at the helm here is (according to Forrest Gump) "Not a smart man, Jenny". Only time will tell.

[farrugia] 20/3/2023 13:09

a hedge is one of the best things they can do. They already have ample production with their Mali operations - they control the levers. I'm not saying hedge all, but hedge a portion. Otherwise you risk something like what's happening to Tullow Oil

[wskill] 20/3/2023 12:59

One more banana skin for Hum to slip on definitely not a good idea.

[bushtuckaman] 20/3/2023 12:54

I pick some up here this morning, but would dump the lot if they started messing around with a hedge.

[polaris] 20/3/2023 12:34

You need clarity on the forward production before you can realistically enter a hedge with minimal risk. I think that it would be prudent, assuming Kouroussa production profile and shakedown goes well. Right now, the time value of any hedge would probably outweigh benefits. A collar arrangement would make sense for paying back debt once commercial production reached.

[dickbush] 20/3/2023 12:28

Absolutely agree. Never mind selling at the top-wherever that may be-just put the balance sheet on a sounder footing.

[farrugia] 20/3/2023 11:53

please e-mail investors relations urging them to hedge a portion of future production at those prices - that would really stabilize things!

[dickbush] 20/3/2023 11:05

Higher gold price, lower oil price and, for West Africa, safe geography, totally transforms the economics of Dugbe. Surely, the marketing of Pasofino is running into ever-rising valuations by gold companies with enough cash/borrowing power.

[laurence llewelyn binliner] 20/3/2023 10:54

#Farrugia, it is worth noting that the VIEN MCAP is for their 49% of Dugbe too, so when they issue our 51% the MCAP should double, however, whether this actually transpires will be interesting as it also could be viewed as dilution which it is not, they do not own their half yet until HUM cede the project to Pasofino..!

Some new photos of the Kouroussa build progress up on the website gallery and it looks close to completion, all but 1 building has a roof on now.. :o)

[farrugia] 20/3/2023 10:11

pasofino gold market cap 33.76M up 62.50% year to date - surely that is worth something to Hummingbird

[laurence llewelyn binliner] 20/3/2023 09:25

1st auction UT at over 8 pence for a long time, as we roll up to the end of Q1
POG 1,882 average so far and very nicely set up heading into ... :o)

Potential for 2,000 POG | 1,250 AISC | 750 margin | 27,500 ounces | USD 20M EBITDA less the non core costs, and that would make a big dent in the payables..

[wskill] 20/3/2023 09:10

Only 10 days until the end of this quarter if Yani can keep up production we should do well with the share price .

[zhockey] 20/3/2023 08:58

Ruffer selling

[dickbush] 20/3/2023 08:26

Not only is the gold price helping Yanfolila's profitability, the oil price is also contributing. Over the last two weeks the WTI price has dropped from over $80 to under $65.

Better to be lucky than smart.

RSG, the gold producer which appears to be planning to close down its only mine outside Mali in the next few years, did a rights issue of 10 for 11 a little while ago. That almost eliminated its net debt. The share price has more than doubled since its low at that time. HUM may not have improved its balance sheet to the same extent with its recent equity issue but I am amazed that its share price is not doing something similar. Aside from knowing that the executives are more self-interested than concerned about shareholders interests, does anyone have any idea why HUM's shares are performing so badly? Just a total lack of faith in the management?

[plat hunter] 20/3/2023 08:22

Sooner than that maybe, my countdown has just 78 days to go