RE:StabilityThanks for bringing to light the recent events at HUM. You are looking on the bright side with the situation being apparently resolved for now (according to the company). But objectively speaking, a work stoppage caused by community protests is a major red flag that will affect perceptions and investment decisions in the region for a long time to come.
Of course the company will always say that such situations are caused by a "small minority" of community members, but experience shows this is rarely the case. Some people here may not even be aware that AGG's project was the subject of a fatal confrontation a few years back (as was HUM's). Some investors may quickly forget this, but you can be sure community members have not forgotten.
Getting back to HUM, it's been at least a couple of years since I checked to see how they are doing, so this is a good opportunity to get updated (although they are not listed in on a Canadian exchange). It appears the community confrontation is just the latest event in a gradual decline in value, although it provides a convenient excuse for not meeting annual guidance. HUM's chart since 2011 is a classic example of a value-destroying enterprise that failed to meet promises and will never pay pack the equity invested. Sure, they did finally pay off the construction debt. But now they are in a high-cost, low-margin phase of production, where any little setback can put them in the red. And the balance sheet shows current liabilities are higher than current assets - in other words, they are literally living on borrowed money and borrowed time. The company is actually at risk of bankrutpcy, which is reflected in the very low market cap for a producing mine. Yes, they have other exploraton assets that they are pinning their hopes on - but how can they raise the money to develop them? Not looking promising. Definitely a cautionary tale for anybody investing in a new mine in the region, not only AGG.