Forget frankincense and myrrh – Hummingbird Resources has brought gold to its shareholders this Christmas!
A company Share Talk has interviewed, covered from 17.5p over 2017, we would like to congratulate Dan Betts, CEO of Hummingbird & the HUM team.
Today is a seminal day for Hummingbird Resources (AIM:HUM; £126m; 36.5p) as it becomes the newest West African gold producer having poured its first gold at its Yanfolila Mine in Southern Mali on time and on budget. Following a bargain purchase (US$20M) from GoldFields in 2014, Hummingbird has developed this low-cost, high-margin project into a significant and profitable gold mine in an impressive three years. Yanfolila is set to produce ~130,000 ounces of gold in year one which is forecast to create over US$70 million of free cash flow in the first year alone meaning that it would be trading at approximately 2.5 times free cash flow. There is potential for production rates to be increased to ~150,000 ounces in the mid-term through development and exploration initiatives.
Also boosting cash flow is the Company’s newly launched single mine origin gold coin, the “1oz Hummingbird” which has already had more than 1,400 people registering interest in buying them within three weeks of its soft-launch.
First Gold Poured at Yanfolila Gold Mine
Hummingbird Resources (AIM: HUM) is delighted to announce that it poured first gold at the Yanfolila Gold Mine in southern Mali from the carbon-in-leach circuit (‘CIL’) on 19 December. The Company’s first gold pour was achieved on time and on budget.
The Company is now focussed on completing commissioning and ramping up to commercial production, targeting ~130,000oz of gold in the first full year of operations.
The Company has a current cash position of ~US$40 million.
Dan Betts, CEO of Hummingbird, commented:
“Producing first gold from Yanfolila is Hummingbird’s most significant achievement to date and we have delivered it on time and on budget. I would like to take this opportunity to thank the Hummingbird team, our shareholders, contractors, advisers, the Government of Mali and all Malian stakeholders for their huge commitment and extraordinary efforts on our journey to turn Hummingbird, as a company, and Yanfolila specifically into a gold producer.
“All major elements of the plant are working to specification; including the crushing, milling and detox circuits, with early recoveries from the CIL circuit showing around 95%, which is excellent in terms of start-up performance.
“Our initial pour was from early low loaded carbon purposefully withdrawn from the circuit to test the elution and electrowinning circuits, which was successful. As a result, carbon loaded to design specification of >2,000ppm has been drawn from the CIL circuit and is currently undergoing elution ahead of further ongoing production.
“We have successfully worked through process design and detailed engineering, equipment selection and procurement, shipping and logistics, construction management, wet and ore commissioning. Nearly 2 million man hours have been expended, erecting over 1,600 tonnes of structural steel and plant equipment, connecting over 20 kilometres of piping and pouring over 4,000m3 of concrete to get to this point.
“Looking forward to 2018, Hummingbird is committed to not only delivering name-plate production at Yanfolila but also demonstrating the growth potential of Yanfolila through the continued conversion of already discovered Resources, of which there are over 1 million ounces outside the current mine plan, to mineable Reserves.
“Over the last decade Hummingbird has now successfully explored, developed, produced and completed value accretive transactions in the market. Thank you for your support to get to this seminal moment – we are now no longer dependent on our shareholders for financial support!”
An updated Corporate Presentation can be downloaded from the homepage of our website; www.hummingbirdresources.co.uk.
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