REG - Hummingbird Res. - Publication of Annual Report
06/06/2023 07:00
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RNS Number : 7808B Hummingbird Resources PLC 06 June 2023
Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining
06 June 2023
Hummingbird Resources plc
("Hummingbird" or the "Group")
2022 Audited Annual Results
Hummingbird Resources plc ("Hummingbird" or the "Group") (AIM: HUM), is
pleased to announce its audited financial results for the year ended 31
December 2022.
Financial results
· Sales of US$143.3 million (2021: US$156.6 million) were
generated from 80,445 ounces ("oz") of gold sold in 2022 at an average price
of US$1,782/oz (2021: 87,553 oz sold at an average price of $1,788/oz), with
additional US$7.0 million (2021: US$6.2 million) revenue generated from
sale of Single Mine Origin ("SMO") gold.
· EBITDA of US$3.7 million (2021: US$28.2 million).
· Adjusted EBITDA(1) of negative US$7.0 million (2021: positive
US$18.6 million).
· Diluted loss per share of US$ 8.71 cents (2021: loss per share
of US$ 3.22 cents (restated)).
· Total bank debt US$115.7 million (2021: US$61.8 million).
· Net debt of US$109.8 million(2) (2021: $21.0 million(2)).
o (1 )(Adjusted EBITDA Earnings before interest, tax, depreciation and
amortisation, effect of impairment charges, foreign currency translation
gains/losses and other non-recurring expense adjustments but including IFRS 16
lease payments.)
o (2)( Net debt/cash including the value of gold inventory.)
Operational results
· 80,653 oz of gold poured in 2022 (2021: 87,558 oz).
· All in Sustaining Cost ("AISC") of US$1,782 per oz in 2022
(2021: US$1,536 per oz)
· 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.
· Group Resources increased to 7.28Moz (2021: 7.12Moz).
· DFS completed at Dugbe in Liberia by joint venture partners
Pasofino Gold Ltd ("Pasofino"), of which the Group retains a majority 51%
interest in Dugbe, showcasing: a high DFS 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 to underpin a gold mine
of material value.
· Achieved full compliance of the World Gold Council ("WGC") and
Responsible Gold Mining Principles ("RGMPs") in November 2022.
Dan Betts, Interim Chairman and CEO of Hummingbird, commented:
"The past year we achieved several key milestones we set ourselves to fulfil
for the year, while facing challenges at our Yanfolila mine in Mali,
especially the earlier part of 2022. Commencing construction at our Kouroussa
Gold Mine in Guinea with a target of achieving first gold pour by the end of
Q2 2023, to fulfil our strategic objective of becoming a multi-asset,
multi-jurisdiction gold producer remains well on target with Kouroussa
commissioning progressing well towards first gold pour within this quarter. We
also set ourselves the goal to materially increase the Group's Reserves base
to showcase LOM increase at all our assets. This was achieved with the release
of our updated Group Reserves and Resources statement in June 2022
highlighting a material increase in Group Reserves to 4.1Moz. Further, another
key focus area was to deliver a robust and valuable DFS at Dugbe via our joint
venture partners Pasofino. As per the highlights above this was achieved in
June 2022, with a strategic review underway with Pasofino on the best options
to create value for all stakeholders at the asset. As well documented, we
faced operational challenges at our Yanfolila mine in Mali during 2022,
impacting the achievements as noted above. Pleasingly, post operational
changes made mid-way through the year, we saw material improvements in the
production, AISC profile and cash flow generation of the mine as seen in our
Q4-2022 and Q1-2023 results.
For 2023, the year has started well, and the Group is at a pivotal junction
for growth, with Yanfolila performing better and Kouroussa commissioning
underway towards first gold pour and then to name plate production for
H2-2023. Further, with a strategic partner in place with CIG, endorsing the
Group's strategy for growth, we are confident and excited about the Group's
prospects for the remainder of 2023 and beyond."
Interim Chairman and CEO's Statement
During the past year our key priorities were to: commence construction at our
Kouroussa Gold Mine in Guinea with a target of achieving first gold pour by
the end of Q2 2023; to fulfil our strategic objective of becoming a
multi-asset, multi-jurisdiction gold producer; analyse, understand and
increase the Group's Resources and Reserves profile on the back of the 2021
exploration drilling campaign; to assist our joint venture partners
Pasofino, to deliver a robust and valuable definitive feasibility study
("DFS") at Dugbe; to continue to improve on our Environmental, Social and
Governance ("ESG") initiatives, including SMO; to achieve full compliance of
the year 3 WGC RGMPs; and to achieve better overall performance at Yanfolila
in Mali.
With Yanfolila ending the year in a significantly better state than at the
beginning and with Kouroussa on track to pour gold imminently, I am pleased to
be able to report that we have achieved all of those objectives.
In early January 2022, the Group formally commenced construction at Kouroussa
following the mobilisation of equipment and personnel in December 2021, by the
Project's construction and engineering firm WACOM, in line with the Project
schedule and targeted first gold pour by the end of Q2 2023. Throughout the
year construction advanced from first breaking ground and clearance works,
towards the major civil work construction phase. By Q4 2022, an increasing
focus turned to 'operational readiness' programmes, with James Francis joining
the Group as General Manager for Kouroussa to lead the business forward.
Despite the well documented macro global inflationary challenges (which
persist), and despite the regional backdrop of ECOWAS sanctions and restricted
movements of people and goods in the region I am pleased to be able to report
that the Kouroussa project remained on track and on budget throughout the
period. Furthermore, as this Annual report goes to print, we are within days
of "first gold" at Kouroussa with the project currently going through its
commissioning phase and so I am confident that it will be delivered ahead of
schedule and on budget. This will be the second mine that the Hummingbird
team have designed, financed, and built on time and on budget; and given the
challenging environment it is an extremely commendable achievement by the
team.
In 2021 we embarked on a targeted c.44,000-meter exploration drilling campaign
at Kouroussa and Yanfolila, with a focus to increase our overall Group
Reserves profile and provide meaningful LOM extensions at our assets. This
cumulated in the release of our updated Group Resources and Reserves statement
in June 2022, which showcased a material uplift to Kouroussa's Reserves
profile to 647 kilo ounces ("Koz") at a high grade of 4.15 grammes a tonne
("g/t") and added Reserves net of depletions at Yanfolila totalling 719 Koz,
including extending the underground Reserves profile at Yanfolila to 278 koz
at 3.94 g/t. Further, at Dugbe via our joint venture partner, Pasofino, final
DFS results were announced on 13 June 2022, establishing a material maiden
Reserves profile at Dugbe of 2.76 million ounces ("Moz") in which the Group
retains a controlling 51% interest. The material uplift in the Group's
Reserves profile was a significant achievement for the Group during 2022. This
work has led the Group to two significant conclusions that will shape our
focus going forward. Firstly, the exploration potential at Kouroussa is
significant and we will be looking to ramp up our regional exploration efforts
to extend the mine life as soon as possible. Secondly, the exploration
potential at Yanfolila would seem to lie mainly in the underground potential
which could go on for many years, and as time goes by will shape our focus
towards making Yanfolila a smaller underground operation focussed on cost and
profitable ounces.
On Dugbe, as noted above, our joint venture partner Pasofino released a
detailed and robust DFS with key highlights being: strong financial metrics,
with a pre-tax NPV 5% of US$690 million, 26.35% IRR (23.6% post-tax); fast
capital payback of approximately 3.5 years from start of production; a large
mineral Reserve with potential for expansion of 2.27 Moz of gold, with a long
14-year LOM; and a detailed Environmental and Social Impact Assessment
("ESIA") study also completed.
With a robust Dugbe DFS completed, an increasing focus then turned towards
working on a strategic review with our joint venture partner Pasofino on
determining the best options to generate maximum value of Dugbe for all
stakeholders. The strategic review remains ongoing, and we are confident of
highlighting in 2023, a pathway towards unlocking the material value of that
asset to our shareholders.
In relation to ESG, November 2022 saw a key milestone for the Group as it
achieved Year 3 full compliance of the WGC RGMPs. Hummingbird is committed to
operating responsibly with strict ESG protocols and practices. Adopting the
WGC RGMPs is a key part of Hummingbird's strategy for building a long term,
responsible mining company. Meeting and where possible exceeding these
requirements demonstrate our continued commitment to adhering to international
best practice ESG standards. Ever since the Company was founded, ESG concepts
have been more than just a word to us. We want to be at the forefront of
developing the art of responsible mining in the industry leaving a lasting
positive legacy in the regions and communities in which we operate. For this
reason, we established the Pygmy Hippo foundation ("PHF") in 2011 to work to
preserve the regional environment around our projects. In addition, we have
worked very closely to establish community health benefit initiatives with our
partner Critical Care International ("CCI") whilst seeking to increase
transparency and exposure through our support of Single Mine Origin Gold
("SMO") creating a universe of environmental, social, healthcare and
transparency impacts against which we can be measured.
SMO continues to gain increased industry recognition in 2022, with multiple
jewellery brands using and endorsing SMO gold in their products, including
British jewellers Boodles. As I noted in last year's annual report, the SMO
initiative gives us the opportunity to showcase mining as the force for good
that we at Hummingbird fundamentally believe can and should be. It also
gives us the opportunity to be a part of a larger movement that future proofs
mining in a world of increased scrutiny and showcases responsible mines for
all the valuable work that they do. I believe this initiative has the scope to
transcend our Group and be a driver of change for the positive impact the
mining industry delivers more broadly.
Regrettably, the achievements as highlighted above were significantly hampered
by the operational underperformance at Yanfolila in Mali during 2022,
particularly for the first three quarters of the year. A key driver of this
was the continual underperformance of our mining contractor's fleet,
materially hindering the ability to follow the scheduled mine plans. The
Group, in turn, took decisive and necessary actions to stabilise ongoing
production challenges and return Yanfolila to a cashflow positive position by
addressing the poor mining performance of the Yanfolila mine both in the
immediate and longer term. The Group stepped in to support our mining
contractor by providing additional fleet such as extra excavators, reinforcing
the contract miner's maintenance teams to improve the overall mining fleet
performance coupled with several other work stream initiatives; ultimately
(post year-end) our relationship with our contract miner has come to an end
and mining activities are now being carried out by a new contractor with much
more internal support.
Pleasingly, by the end of 2022, the decisive initiatives the Group took as
noted above, coupled with on site management changes, saw Yanfolila' s
operational performance materially improve, which has continued into 2023.
Hummingbird's Q4 2022 production and AISC profile were amongst some of the
best recorded for several years. Gold production was 28,264 oz at an AISC
profile of US$1,248 per oz, leading to a materially improved Group EBITDA of
c.US$11 million for the Q4 2022 quarter. This was a hugely positive outcome at
the end of what was a challenging year at Yanfolila.
2023 Outlook:
In March 2023, the Group secured a key, regionally influential strategic
partner and strengthened the balance sheet with a c.US$17 million placement
led by CIG group. The placement has helped ensure Kouroussa gets into
production as scheduled for first gold pour by the end of Q2 2023 and provides
the ability to help fast-track further exploration at the asset. This
investment by new and existing shareholders endorses the Group's growth
strategy in the West African region and beyond.
With this support, we will achieve our strategic goal this year of being a
multi-asset, multi-jurisdiction gold producer.
At Yanfolila, a key focus is to maintain the improved operational performance,
as exhibited by our Q4 2022 and Q1 2023 operational results and to bring
online Yanfolila' s underground mine by year end for a full year of production
in 2024. Further, at Dugbe, with a strategic review underway, our goal for
2023 is to show a pathway to unlocking the material value of that asset for
all stakeholders.
On exploration, given limited drilling was undertaken in 2022, we are
cognisant of the need to increase the Group's exploration activities to
maintain and extend the Group's Reserves base. This is a priority for us going
forward. We are completing a detailed review of exploration plans at
Kouroussa and Yanfolila, with expectations in 2H 2023 and 2024 to have
reinitiated exploration campaigns at those assets, particularly at Kouroussa.
We successfully achieved Year 3 WGC RGMP full compliance at both corporate and
Yanfolila site levels, as part of our increasing focus to ensure these and
other leading international ESG standards are embedded into the Group's and
mine site's procedures and policies. Importantly we aim to continue to
enhance sustainable community livelihood programmes and projects at our
assets, whilst growing the SMO initiative across the broader gold market.
On a final note, I would like to thank our previous chairman, Russell King for
his time and valuable guidance at the company. Since his retirement in June
2022, I have assumed the role of Interim Chairman in addition to being CEO.
It is probably fair to say that the environment in the middle of last year for
attracting a suitable Chair to help us drive forward with our next stage of
growth was somewhat sub optimal; but we are in much better shape now as
Kouroussa comes online, and it is indeed our intention to find such a
candidate. Whilst we will not rush into a hasty decision, it remains a
priority for the group going forward.
In conclusion, with Yanfolila's operational performance improving, and
Kouroussa's birth imminent, the Group is at a pivotal juncture for exponential
growth, a key focus for the executive team this year is to show improved cash
flow generation and a stronger balance sheet for the Group to underpin our
growth strategy and ultimately drive shareholder returns.
Dan Betts
Interim Chairman and Chief Executive Officer
Consolidated Statement of Comprehensive Income - For the year ended 31
December 2022
2022 2021 Restated
$'000 $'000
Revenue 150,519 162,777
Production costs (126,527) (113,606)
Amortisation and depreciation (37,357) (38,317)
Royalties and taxes (5,620) (6,297)
Cost of sales (169,504) (158,220)
Gross (loss)/profit (18,985) 4,557
Share based payments (1,941) (1,459)
Other administrative expenses (11,791) (10,263)
Operating loss (32,717) (7,165)
Finance income 3,641 4,071
Finance expense (14,156) (8,190)
Share of joint venture profit/(loss) 4 (46)
(Impairment)/reversals in impairment of financial assets (316) 108
Losses on financial assets and liabilities measured at fair value (715) (3,134)
Loss before tax (44,259) (14,356)
Tax 4,269 1,617
Loss for the year (39,990) (12,739)
Attributable to:
Equity holders of the parent (34,279) (12,656)
Non-controlling interests (5,711) (83)
Loss for the year (39,990) (12,739)
Loss per share (attributable to equity holders of the parent)
Basic ($ cents) (8.71) (3.22)
Diluted ($ cents) (8.71) (3.22)
Consolidated Statement of Financial Position - For the year ended 31 December
2022
2022 31 December 2021
$'000 Restated
$'000
Assets
Non-current assets
Intangible exploration and evaluation assets 129,652 91,287
Intangible assets software 143 235
Property, plant and equipment 204,393 144,591
Right of use assets 25,488 35,986
Investments in associates and joint ventures 133 129
Financial assets at fair value through profit or loss 1,532 3,530
Deferred tax assets 9,571 3,868
370,912 279,626
Current assets
Inventory 15,748 13,148
Trade and other receivables 51,852 25,152
Unrestricted cash and cash equivalents - 32,571
Restricted cash and cash equivalents 3,892 4,168
71,492 75,039
Total assets 442,404 354,665
Liabilities
Non-current liabilities
Borrowings 71,840 61,812
Lease liabilities 15,845 27,556
Deferred consideration 1,801 4,627
Other financial liabilities 26,795 9,092
Provisions 27,120 21,644
143,401 124,731
Current liabilities
Trade and other payables 66,081 33,708
Lease liabilities 11,819 9,961
Deferred consideration 1,776 -
Other financial liabilities 15,000 15,000
Provisions 830 611
Borrowings 43,862 -
Bank overdraft 1,741 -
141,109 59,280
Total liabilities 284,510 184,011
Net assets 157,894 170,654
Equity
Share capital 5,828 5,814
Share premium 17,425 17,425
Retained earnings 97,177 137,895
Equity attributable to equity holders of the parent 120,430 161,134
Non-controlling interest 37,464 9,520
Total equity 157,894 170,654
Consolidated Statement Cash Flows - For the year ended 31 December 2022
2022 2021
$'000 Restated
$'000
Net cash inflow from operating activities 13,181 22,703
Investing activities
Purchases of intangible exploration and evaluation assets (5,876) (9,992)
Purchases of property, plant and equipment (82,942) (22,295)
Pasofino funding 4,665 10,141
Pasofino funding utilisation - (10,946)
Sale of shares in other companies - 2,538
Interest received 2 -
Net cash used in investing activities (84,151) (30,554)
Financing activities
Exercise of share options 14 -
Lease principal payments (10,741) (11,014)
Lease interest payments (2,862) (3,006)
Loan interest paid (3,452) (721)
Commissions and other fees paid (4,724) (5,413)
Loans repaid - (13,278)
Loan drawdown 58,695 66,365
Net cash generated from financing activities 36,930 32,933
Net (decrease)/increase in cash and cash equivalents (34,040) 25,082
Effect of foreign exchange rate changes (548) 589
Cash and cash equivalents at beginning of year 36,739 11,068
Cash and cash equivalents at end of year 2,151 36,739
Consolidated Statement of Changes in Equity - For the year ended 31 December
2022
Share Share Retained Total equity attributable to the parent Non-controlling interest Total
capital premium earnings $'000 $'000 $'000
$'000 Shares to be issued $'000 $'000
$'000
Balance at 1 January 2021 5,344 488 150,246 173,485 9,776 183,261
17,407
Prior year equity adjustment - IFRS 16 - - - (699) (699) (173) (872)
Balance at 1 January 2021(restated) 5,344 488 149,547 172,786 9,603 182,389
17,407
Comprehensive income for the year restated:
Loss for the year (restated) - - - (12,656) (12,656) (83) (12,739)
Total comprehensive income for the year - - - (12,656) (12,656) (83) (12,739)
Transactions with owners in their capacity as owners:
Shares issued as consideration in asset purchase 16,937 - - - -
470 (17,407)
Total transactions with owners in their capacity as owners 470 16,937 - - - -
(17,407)
Share based payments - - - 1,004 1,004 - 1,004
As at 31 December 2021 (restated) 5,814 - 17,425 137,895 161,134 9,520 170,654
Comprehensive income for the year:
Loss for the year - - - (34,279) (34,279) (5,711) (39,990)
Total comprehensive loss for the year - - - (34,279) (34,279) (5,711) (39,990)
Transactions with owners in their capacity as owners:
Pasofino minority interest after earn-in - (9,528) (9,528) 33,655 24,127
-
-
Total transactions with owners in their capacity as owners - - - (9,528) (9,528) 33,655 24,127
Exercise of share options 14 - - - - - 14
Share based payments - - - 3,089 3,089 - 3,089
As at 31 December 2022 5,828 - 17,425 97,177 120,430 37,464 157,894
Notes to the Consolidated Financial Statements
1. General information
Hummingbird Resources PLC is a public limited company with securities traded
on the AIM market of the London Stock Exchange. It is incorporated and
domiciled in the United Kingdom and has a registered office at 49-63 Spencer
Street, Hockley, Birmingham, West Midlands, B18 6DE.
The nature of the Group's operations and its principal activities are the
exploration, evaluation, development, and operating of mineral projects,
principally gold, focused currently in West Africa.
2. Basis of preparation
The preliminary announcement does not constitute statutory financial
statements for the years ended 31 December 2022 and 31 December 2021.
The financial information for the year ended 31 December 2022 has been
extracted from the Group's audited financial statements which were approved by
the Board of Directors on 05 June 2023 and which, if adopted by the members at
the Annual General Meeting, will be delivered to the Registrar of Companies
for England and Wales. The report of the auditor on the 31 December 2022
financial statements was unqualified but contained a material uncertainty
paragraph relating to going concern and did not contain a statement under
Section 498(2) or Section 498(3) of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2021 have been delivered to
the Registrar of Companies. The Auditor has reported on those accounts; their
report was unqualified but contained a material uncertainty paragraph relating
to going concern and did not contain a statement under Section 498 (2) or
Section 498(3) of the Companies Act 2006.
3. Going concern
The financial position of the Group, its cash flows, liquidity position and
borrowing facilities are set out in the Financial Review. At 31 December 2022,
the Group had net cash and cash equivalents of $2.2 million, (made up of $3.9
million of restricted cash in line with the Group's loan arrangements and $1.7
million of overdraft) and total borrowings of $115.7 million. Details on the
Group's borrowings are set out in note 19 to the financial statements.
The Group has prepared cash flow forecasts based on estimates of key variables
including production, gold price, operating costs, scheduled debt repayments
in line with the Group's debt arrangements and capital expenditure through to
December 2024 that supports the conclusion of the Directors that there is
sufficient funding available to meet the Group's anticipated cash flow
requirements to this date.
These cashflow forecasts are subject to a number of risks and uncertainties,
in particular the ability of the Group to achieve the planned levels of
production and the recent higher gold prices being sustained. The Board
reviewed and challenged the key assumptions used by management in its going
concern assessment, as well as the scenarios applied and risks considered,
including the risks and potential disruptions associated with the recent
changes in governments in Mali and Guinea.
The biggest material uncertainty and risks remains ounces produced and whether
the current mine plan can be achieved (including expected production from the
Kouroussa mine which is currently being commissioned) and mining contractor
equipment performance, and sanctions on Russia, which are also having a
logistical impact on the Group. These production levels are also key in
supporting the scheduled debt repayments over the period under review. Where
additional funding may be required, the Group believes it has several options
available to it, including but not limited to, use of the overdraft facility,
cost reduction strategies, selling of non-core assets and raising additional
funds from current investors and debt partners.
The Board also considered sensitivities to those cash flow scenarios
(including where production is lower than forecast and gold prices lower than
current levels) which would require additional funding. Should this situation
arise, the Board believe that they have several options available to them as
referenced above, which would allow the Group to meet its cash flow
requirements through this period, however, there remains a risk that the Group
may not be able to achieve these in the necessary timeframe.
Based on its review, the Board has a reasonable expectation that the Group has
adequate resources to continue operating for the foreseeable future and hence
the Board considers that the application of the going concern basis for the
preparation of the Financial Statements is appropriate. However, the risk of
lower-than-expected production levels, timing of VAT offsets and receipts,
increased fuel costs and potential disruptions to supply chain and the ability
to secure any potential required funding at the date of signing of these
financial statements, indicates the existence of a material uncertainty which
may cast significant doubt on the Group's ability to continue as a going
concern.
Should the Group be unable to achieve the required levels of production and
associated cashflows, defer expenditures, obtain additional funding or
renegotiating the current financing arrangements such that the going concern
basis of preparation was no longer appropriate, adjustment would be required
including the reduction of balance sheet asset values to their recoverable
amounts and to provide for future liabilities should they arise.
4. Loss per ordinary share
Basic loss per ordinary share is calculated by dividing the net loss for the
year attributable to ordinary equity holders of the parent by the weighted
average number of ordinary shares outstanding during the year.
The calculation of the basic and diluted loss per share is based on the
following data:
2022 2021
$'000 Restated
$'000
Loss
Loss for the purposes of basic loss per share being net loss attributable to (34,279) (12,656)
equity holders of the parent
2022 2021
Number of shares Number Number
Weighted average number of ordinary shares for the purposes of basic loss per 393,525,771 392,676,809
share
Adjustments for weighted average share options and warrants 25,362,582 17,166,492
Weighted average number of ordinary shares for the purposes of diluted loss 418,888,353 409,843,301
per share
2022 2021 Restated
Loss per ordinary share $ cents $ cents
Basic (8.71) (3.22)
Diluted (8.71) (3.22)
At the reporting date there were 29,560,125 (2021: 19,984,137) potentially
dilutive ordinary shares and warrants. For the year ended 31 December 2022,
because there is a reduction in diluted loss per share due to the loss-making
position, therefore there is no difference between basic and diluted loss per
share.
5. Net debt reconciliation
At 1 Foreign Amortisation At 31 December
January Cash flow exchange of issue costs/other (1) 2022
2022 (restated) $'000 movement $'000 $'000
$'000 $'000
Unrestricted cash 32,571 (34,040) (272) - (1,741)
Restricted cash 4,168 - (276) - 3,892
Total cash & cash equivalents 36,739 (34,040) (548) - 2,151
Borrowings (61,812) (55,371) 3,247 (1,766) (115,702)
Lease liabilities (37,517) 13,603 - (3,750) (27,664)
Net debt (62,590) (75,808) 2,699 (5,516) (141,215)
( )
(1) Included within the other category on lease liabilities is $761,000
additions to liabilities, $475,000 forfeiture of liabilities as a result of
the renewal of the leases for the corporate office and interest charge of
$2,862,000. Included within the other category for borrowings is $1.8 million
of issue costs amortisation.
6. Events after the reporting date
Issue of Shares and Strategic Investor
On 7 February 2023 the Company entered into a share subscription agreement for
the investment of US$15 million into the Company by CIG SA ("CIG"), which
was split into two tranches:
o A firm first tranche of circa US$3.8 million, involved the issue of
39,360,800 new ordinary shares of £0.01 of the Company and;
o A second tranche of circa US$11.2 million, which involved the issue of
117,724,008 new ordinary shares.
Following the CIG investments, the Group also received an additional
subscription of a total of 23,070,797 shares in the Company, for circa £1.8
million excluding fees from certain existing institutional shareholders and
through an open offer.
All the shares were issued at a subscription price of 7.79 pence, which
represented a c.2% premium to the 30-day VWAP. As part of the share
subscription CIG have the right to maintain their stake.
In aggregate, a total of 180,155,805 ordinary shares in the Company were
issued to CIG and other investors, for a total of £14 million (circa $17
million) excluding fees, to help fund Kouroussa into production.
7. Availability of accounts
The audited Annual Report and Financial Statements for the year ended 31
December 2022 and notice of AGM will shortly be sent to shareholders and
published at: www.hummingbirdresources.co.uk.
**ENDS**
Notes to Editors:
Hummingbird Resources plc (AIM: HUM) is a leading multi-asset,
multi-jurisdiction gold producing Group, member of the World Gold Council and
founding member of Single Mine Origin (www.singlemineorigin.com). The Group
currently has two core gold projects, the operational Yanfolila Gold Mine in
Mali, and the Kouroussa Gold Mine in Guinea, which will more than double
current gold production when in production, scheduled for first gold pour
within Q2 2023. Further, the Group 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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