REG - Hummingbird Res. - 2023 AGM Statement

Hummingbird ResourcesAnnouncement

29/06/2023 07:00

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RNS Number : 2887E  Hummingbird Resources PLC  29 June 2023

 

Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

 

29 June 2023

Hummingbird Resources plc

("Hummingbird" or the "Company")

2023 Annual General Meeting - Statement

Hummingbird Resources plc ("Hummingbird" or the "Company") (AIM: HUM), is
pleased to announce the following statement from the Company's Chief Executive
Officer and interim Executive Chairman, Daniel Betts, ahead of the 2023 Annual
General Meeting ("AGM"). The meeting will take place at the offices of Gowling
WLG, 4 More London Riverside, London SE1 2AU from 9am today.

 

Further, the Company will publish its second quarter 2023 ("Q2-2023")
operational and trading update in July 2023.

Statement from Dan Betts, CEO and interim Executive Chairman

I look forward to welcoming shareholders at our AGM today and reflect on the
progress we have made since our last AGM, and the future direction of the
Company. With our second gold mine in West Africa, Kouroussa, achieving first
gold pour on 8 June 2023, ahead of the end of Q2-2023 schedule and on budget,
we are officially a multi-asset, multi jurisdiction gold producer, and a
Company that is in a fundamentally stronger position to where we were 12
months ago.

 

In summary, with Yanfolila on track to meet FY-2023E guidance, Kouroussa now
into production and expected to reach name-plate production during H2-2023,
the Company is at a pivotal juncture for significant growth and on target to
being a +200,000 oz gold producer.  I would like to thank all our dedicated
employees, contractors, investors, host nations and communities we operate in
for your support and look forward to continuing to drive material value
creation for all stakeholders. As detailed in our 2022 Annual and
Sustainability Reports issued earlier this month, a material number of key
objectives were achieved in 2022, coupled with a strong start to the 2023
year. These have been summarised in the key highlights below.

2022 key highlights - A year of progress to achieve our ambition to be a
multi-asset, multi-jurisdiction gold producer

As outlined in our Annual and Sustainability Reports, 2022 was a year of
material progress primarily focused on: developing our Kouroussa gold mine in
Guinea; increasing the Company's Reserves and Resources; completing a detailed
and valuable feasibility study at the Dugbe Gold Project in Liberia with our
joint venture partners, Pasofino Gold ltd ("Pasofino"); continuing to improve
on our ESG initiatives, including Single Mine Origin ("SMO") gold; achieving
full compliance of the year 3 World Gold Council ("WGC") Responsible Gold
Mining Principles ("RGMPs"); and achieving better overall performance at
Yanfolila.

 

With Yanfolila ending the year in a significantly better position compared to
the beginning of 2022, coupled with a strong Q1-2023 result and with Kouroussa
now into production, expected to reach name plate production during H2-2023, I
am pleased to report the following achievements, as noted above, for 2022.

·      Total production of 80,653 ounces ("oz") of gold poured in 2022
(2021: 87,558 oz).

·      Total sales of US$143.3 million (2021: US$156.6 million) were
generated from 80,445 oz of gold sold in 2022 at an average price of US$1,782
per oz (2021: 87,553 oz of gold sold at an average price of $1,788 per oz),
with an additional US$7.0 million (2021: US$6.2 million) revenue generated
from the sale of SMO gold.

·      Group Reserves materially increased to 4.13 million ounces
("Moz") (2021: 1.12Moz) following the extensive drilling campaigns completed
at Yanfolila and Kouroussa in 2021 being converted into Reserves, and the
completion of a Definitive Feasibility Study ("DFS") in June 2022 on Dugbe,
in Liberia.

·      DFS completed at Dugbe in Liberia by joint venture partners
Pasofino, of which the Company retains a majority 51% interest in, showcasing:
a pre-tax NPV of US$690 million (US$530 million post tax); significant
2.76Moz Reserve base; long life of mine ("LOM") of 14 years, with upside given
the material exploration potential available; and a low AISC profile
of US$1,005 per oz which underpins a gold mine of material value.

·      Achieved full compliance of the WGC RGMPs in November 2022.

·      Yanfolila operational improvements achieved by year end 2022, and
followed through into 2023, with quarterly gold production for Q4-2022 of
28,264 oz, +67% from Q3-2022, at a materially improved quarterly AISC
of US$1,248 per oz for Q4-2022 (Q3-2022 US$2,161 per oz).

Update on 2023 progress and outlook

We have had a strong start to the year, with several key initiatives
implemented to take the Company forward for FY-2023 and beyond.  As reported
in February 2023, the Company secured a key, regionally influential,
strategic partner that strengthened the Company's balance sheet with a c.US$17
million placement led by CIG SA. The placement ensured Kouroussa advanced to
its commissioning phase and into production, achieving first gold pour on 8
June 2023. In addition, this investment by new and existing shareholders
endorses the Company's strategy for growth - both in the West African region
and beyond.

 

Other key highlights so far in 2023 and outlook include:

 

·      Strong Yanfolila Q1-2023 operational result, with 27,262 oz of
gold produced (Q4-2022 production of 28,264 oz, and Q1-2022 production of
15,548 oz) at a materially improved AISC of US$1,109 per oz for Q1-2023 (+11%
improvement from Q4-2022 of US$1,248 per oz and +50% from Q1-2022 of US$2,235
per oz).

·      Consecutive strong and improved quarterly Group EBITDA, up +59%
to c.US$17.5 million for Q1-2023, versus Q4-2022 of c.US$11 million.

·      The Yanfolila Sanioumale East ("SE") village resettlement
programme progressing ahead of plan, allowing mining to commence at the SE
deposit, with expectations of increasing ore to mill sourced from the SE
deposit in H2-2023.

·      Our Q2-2023 operational and trading update will be released in
July 2023, with Yanfolila on track to meet full year guidance forecasts of
80,000 - 90,000 oz at an AISC of under $US$1,500 per oz.

·      First gold pour at Kouroussa achieved on 8 June 2023, ahead of
the end of Q2-2023 schedule and on budget, a major milestone and achievement,
with the mine expected to ramp up to commercial production during H2-2023.
Once fully operational and at name plate production, the mine is expected to
more than double the Company's annualised production profile to +200,000
oz. Further details on progress at Kouroussa will be given at our Q2-2023
operational and trading update.

·      Detailed Company exploration plans are being developed with a
view to re-initiate exploration drilling plans later in H2-2023 / 2024.

·      The strategic review of options to best realise the maximum value
of Dugbe for all stakeholders is ongoing with our joint venture partner
Pasofino and we are confident of being able to unlock the material latent
value of Dugbe for shareholders.

·      Ongoing focus on our ESG initiatives at our mines and communities
where we operate remains a key priority, in particular at Kouroussa now the
mine is in production, with detailed community project and livelihood
restoration programmes being implemented.

·      Further, we have attended several investor conferences this year,
the Indaba Mining conference in February and the 121-investor conference in
New York earlier this month, with expectations H2-2023 to continue to market
the Company to new and existing investors to help drive shareholder returns.

 

 

 

**ENDS**

Notes to Editors:

Hummingbird Resources plc (AIM: HUM) is a leading multi-asset,
multi-jurisdiction gold producing Company, member of the World Gold
Council and founding member of Single Mine Origin (www.singlemineorigin.com
(http://www.singlemineorigin.com/) ). The Company currently has two core gold
projects, the operational Yanfolila Gold Mine in Mali, and the Kouroussa
Gold Mine in Guinea, which is expected to more than double current gold
production once at commercial production. Further, the Company has a
controlling interest in the Dugbe Gold Project in Liberia that is being
developed by joint venture partners, Pasofino Gold Limited. The final
feasibility results on Dugbe showcase 2.76Moz in Reserves and strong economics
such as a 3.5-year capex payback period once in production, and a 14-year life
of mine at a low AISC profile. Our vision is to continue to grow our asset
base, producing profitable ounces, while central to all we do being our
Environmental, Social & Governance ("ESG") policies and practices.

 

For further information, please visit hummingbirdresources.co.uk
(https://www.hummingbirdresources.co.uk/)  or contact:

 

 

 Daniel Betts, CEO       Hummingbird Resources plc  Tel: +44 (0) 20 7409 6660

 Thomas Hill, FD

 Edward Montgomery, CD
 James Spinney           Strand Hanson Limited      Tel: +44 (0) 20 7409 3494

 Ritchie Balmer          Nominated Adviser
 James Asensio           Canaccord Genuity Limited  Tel: +44 (0) 20 7523 8000

 Gordon Hamilton         Broker
 Bobby Morse             Buchanan                   Tel:  +44 (0) 20 7466 5000

 Oonagh Reidy            Financial PR/IR            Email: HUM@buchanan.uk.com (mailto:HUM@buchanan.uk.com)

 George Pope

 

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