Hummingbird Resources Share Discussion Threads

[dickbush] 26/10/2020 10:55

Well worth checking out. Clearly, they have ambitions to do further deals.

[dickbush] 26/10/2020 10:01

I still think the 3rd qtr is disappointing, to say the least, and the short term performance of the shares will be poor unless gold perks up. However, like, it seems, everyone else here, I am not that bothered. I'm in for the next two or three years of increasing production, and, of course, taking an optimistic view of the gold price. An across the board win for the Democrats should see a major stimulus package passed in the first quarter of 2021, helping the gold price along. I trust the Dems to focus on employment over the next four years and the Fed to help. Fingers crossed for the Dems.

Note that Resolute had to reduce its annual forecast for production down to the bottom end of the range after its 3rd qtr. The shares have performed badly since. However, they were on a much higher rating (due to its longer lived mines) and are carrying a big net debt position.

FWIW I have HUM's EV/EBITDA multiple down to 2 times for 2020 at 37p. Even lower taking into account the holding in VEIN, currently worth circa £15 mil

[aimsurfer] 26/10/2020 09:56

Built a mine, paid off all the associated debt within 3 years and now will be generating cash for the next 10 years (after additional exploration expenses) and people complaining :) How much dilution we had in recent years compared to other junior gold miners? New mine coming online soon again without dilution, Dugbe DFS in H2 next year, likely to be sold afterwards. Nothing to complain above here. Slow and steady wins the race.Gold in a great position with the fed printing even more money.

[new_buyer] 26/10/2020 08:37

BT will still be complaining when the share price is 60p and higher, he’s only on the board to deramp nothing else.

Think the RNS is very good myself, hoping for a VOX interview to add some meat on the bones and especially around the AISC, assume the runway costs are included here and across a lower production number.

[bubloo] 26/10/2020 08:31

last year they poured 33892 ounces at $ 832 in last quarter. they will be close to that to hit the lower end of guidance. The aisc is always better in the last quarter from history. I am positive and hope my small addition today will make some money in the nest three months

[rickyhatton] 26/10/2020 08:12

Results are solid. Agreed Q599 that Q4 should be much better with guidance maintained so indicated to be at least 31k gold to be poured next quarter compared to 25k this quarter. AISC are currently about $1050 on average for first three quarters compared to the $1000 Forecast, and should come down a little next quarter, so not horrendously missing. Q1 2020 was $875 which helps the overall. Much to look forward to at Kouroussa and Dugbe and LOM. And full year 2021 guidance to come.

[laurence llewelyn binliner] 26/10/2020 08:11

We are net cash positive at last, celebrate that huge milestone, and under extreme circumstances nobody could predict too..

A second bonus positive is the sale price of USD1919 against POG of 1911..
Drilling intersections will result in an increased LOM
Kouroussa is progressing nicely towards the mining licence expected in Q1-2021

Focus on the progress of the company not the SP, todays headline numbers are masking a lot more progress made on the ground towards a totally unleveraged 225,000 Ounce per year producer in 2 years time.., and when the AISC reduces through economies of scale that will result in cUSD250M a year of EBITDA..

[bubloo] 26/10/2020 08:07

get ready for BT tirade later today. he is not woken up yet in sunny florida

[bubloo] 26/10/2020 08:06

hopefully the short term traders will disappear for the next two months by this evening

[bubloo] 26/10/2020 08:04

I think all in all good results. Aisc may be higher if they have included investments made in kouroussa or I am wrong in thinking so. I have added a small number of shares with a three month view of further progress

[qs99] 26/10/2020 07:57

Q4 key, market should IMO forgive a coup ffs and worst rainfall ever....DYOR

[glennborthwick] 26/10/2020 07:53

This current quarter is the litmus test. Can they do 30k ounces

[plasybryn] 26/10/2020 07:51

Give credit where credit is due, this RNS is balanced to the positive imo. De-risked, and expansion plans progressing nicely. You invest in Mali knowing it isn't Croydon (weather , politics etc.) Get over that or invest elsewhere.

[temujiin] 26/10/2020 07:50

3rd qtr Production poor, AISC awful. Production now forecast to be circa 110,000 and "there will be an impact on full year cost guidance of US$995 oz".
============

Q3 despite all issues (Covid, v.heavy rains, border closed) is UP on last years Q3, AISC in Q3 high for same reason but average sold gold over $1900.oz!
Guidance maintained despite same issues.

Throw in some decent drill returns, progress at Dugbe, Kouroussa and it's actually fine.

If people are disappointed it's because their expectations are probably way too high to start with.

[susiebe] 26/10/2020 07:49

I think you've just picked out the worse.A lot of positives in those results as well.

[laurence llewelyn binliner] 26/10/2020 07:42

1st things first... net debt including inventory at end of Sept just -USD1M, so we are net debt neutral or cash positive now at end of October, very well done to the whole team during very difficult circumstances over there..

(1) Debt -USD19M (quarterly change was -7M)
(2) Cash +9M
(3) Gold in hand 4,600 Ounces or +9M
(4) Net debt -1M
(5) Q3 POG 1911, Q3 sales price 1919, higher than POG due to the Silver credits.. :o)

(6) FY AISC 1047
(7) FY ounces poured 79,058
(8) FY ounces sold 79,889

[ukgeorge] 26/10/2020 07:41

"we are looking to have a strong finish to the year in terms of production. Importantly we continue to rapidly deleverage the Company's balance sheet with net debt (including gold on hand) approaching zero at the time of writing"Heading in the right direction.

[dickbush] 26/10/2020 07:40

3rd qtr Production poor, AISC awful. Production now forecast to be circa 110,000 and "there will be an impact on full year cost guidance of US$995 oz".

Hard to see how the results could be worse.

[temujiin] 26/10/2020 07:15

Overall, given the issues it seems solid enough, rain, coup and Covid obviously haven't helped with AISC, but production guidance maintained, some nice drilling results still coming in and net debt now at just $1m. Mixed bag seems about right
==================

26th October 2020

Hummingbird Resources plc

("Hummingbird" or the "Company")

Q3 2020 Corporate and Operational Update

Hummingbird Resources plc (AIM: HUM) is pleased to provide the following operational and trading update for the third quarter of 2020 ("Q3 2020").

Corporate Highlights

-- Balance Sheet & Deleveraging: Cash of US$9 million at 30 September 2020 (US$6 million Q2 2020). Total bank debt of US$19 million, having been reduced by US$7 million during the quarter, bringing net-debt down to US$10 million. During the quarter US$5 million was spent on other items including: exploration programmes, expansionary capex ; and preliminary pre-development costs at the Kouroussa Gold Project in Guinea ("Kouroussa")

-- Gold Inventory: 4,600 ounces ("oz") gold inventory on hand at 30 September 2020 valued at US$9 million which if included in the net-debt calculation as per above, reduces net debt to US$1 million

-- Exploration and drilling: As outlined in the exploration and drilling release on 8(th) October, see here , Hummingbird is seeing further positive results, giving the Company confidence of the overall resource and life of mine potential at Yanfolila. These results can be seen in more detail below but include drill hole 16m @ 9.64 g/t from 47m depth from our Sanioumale East ("SE") deposit

-- Continued development of Kouroussa: In line with the Company's stated strategy to be a multi asset and multi jurisdiction producer, work continues at pace with pre-development work plans at Kouroussa progressing well. Hummingbird is awaiting the award of the mining license to then begin development works which are expected early 2021

-- Progress at Dugbe Gold Project ( " Dugbe Project"): Joint venture partner Pasofino Gold Limited ("Pasofino") (TSX: VEIN) gained funding during the quarter and have now begun works to carry out and fund a definitive feasibility study ("DFS") and exploration works to earn-in its 49% stake in the project once these agreed milestones have been met. Pasofino is targeting two new exploration targets which is very encouraging. Recent progress updates from Pasofino can be found here . At the time of this release Pasofino's market capitalisation on the TSX was C$25.3 million.

Production Highlights

-- Production: 24,722 oz of gold poured in Q3 2020 (24,054 oz in Q2 2020)

-- All in Sustaining Cash Cost ("AISC"): US$1,283 per oz for Q3 2020 (US$983 per oz AISC for Q2 2020)

-- Gold Sales: 23,794 oz of gold sold in Q3 2020 at an average realised price of US$1,919 per oz

-- TRIFR: Total Recordable Injury Frequency Rate ("TRIFR") at 0.91, meeting the Company's target of having a TRIFR lower than 2.5

-- Management changes: The Company made several managerial changes during the quarter to improve group operational performance, reporting lines and efficiencies. Edrich Welthagen was promoted to General Manager ("GM") at the Yanfolila Mine from Mine Manager. Additionally, Shaun Bunn SVP of Projects Delivery and John Meneghini, SVP Operations are reporting directly to the Executive Committee on an interim basis

Post Period Highlights and Outlook

-- Production: 2020 production guidance maintained at 110,000 - 125,000 oz. Now into the dry season, expectations are for a better quarter with realistic expectations for the full year to be at the lower end of guidance

-- AISC: Extreme rainfall, the ongoing Covid pandemic and the temporary closure of the Mali border (now reopened) due to the coup caused logistical issues which had a negative impact on costs. Although some of these issues have been resolved, there will be an impact on full year cost guidance of US$995 oz

-- Deleveraging : Debt reduction continues as planned and the Company remains on track for current bank loans to be fully repaid by 1H 2021

-- Exploration & Drilling success continues : Post quarter exploration and drilling results continue to be encouraging. N ew results from Sanioumale West ("SW" in reserves) and the initial results from SE (not in reserves) are very positive like the SW 15m @ 3.72 g/t from 47m depth hole and the SE 16m @ 9.64 g/t from 47m depth hole. See more details below

-- Kouroussa: Hummingbird's pre-development plans are continuing. A key piece of work amongst other things being looked at is the Front-End Engineering Design analysis ("FEED") which is expected to be nearing completion by year end. The Company will give a more detailed update in early 2021

-- 2021 budgeting analysis: Hummingbird's 2021 corporate budget plans are being developed which it is excited about, this includes plans on: exploration & drilling for both Yanfolila and Kouroussa, Mine plans; Kouroussa development plans and operational efficiency improvements

Dan Betts, CEO of Hummingbird, commented:

"Despite a more difficult quarter impacted by some of the heaviest rains on record hitting site, compounding the already difficult logistical challenges imposed upon us through a combination of managing COVID-19 issues and the temporary closure of borders due to the military coup in Mali, we are now in the dry season, borders are back open and we are looking to have a strong finish to the year in terms of production. Importantly we continue to rapidly deleverage the Company's balance sheet with net debt (including gold on hand) approaching zero at the time of writing. This is a major milestone and a significant achievement for the Company. Our 2020 exploration programme has led to some stellar drill intersections particular at the Sanioumale West and East deposits and we are excited to model these and see the potential impact on the life of mine at Yanfolila. We continue to make solid progress at Kouroussa ahead of commencing construction of our second mine, which, when built, will see the Company as a circa 220,000 oz producer. Additionally, our important environmental and social governance initiatives continue to provide significant benefits for our local stakeholders."

Yanfolila Operational Highlights

To view the RNS with illustrative graphics please use this link: . Also, to view the Company's updated Q3 2020 Corporation presentation please visit the website at www.hummingbirdresources.co.uk/investors/reports-presentations/

Environmental, Social & Governance ("ESG") Highlights

-- No environmental incidents reported

-- TRIFR for the period was 0.91 against a benchmark of 2.5

-- World Gold Council ("WGC"), Responsible Gold Mining Principles ("RGMP") internal committee was set up last quarter and is making solid progress with the ongoing GAP analysis on current work practices and policies in order to meet the WGC RGMP requirements for membership

-- Hummingbird continues to manage its COVID 19 risks. Cases so far and new cases reported have showed mild or A-symptomatic symptoms and all previous case individuals have now fully recovered

-- Tailing Storage Facility ("TSF") capital work improvements costing US$2 million for 2021 have been approved. Works to begin early Q1 2021 for completion before next year's wet season

-- The Company have on order and is awaiting the delivery of a new medical COVID-19 testing machine, expected soon. This will allow the Company to rapidly test employees to assist in the overall management of the virus on-site and the surrounding areas

[glennborthwick] 26/10/2020 07:10

News out. But if a mixed bag.

[borderterrier1] 25/10/2020 13:04

And this mornings post from aprogerson on the LES bb "Shame HUM hasn't thought to report something substantive" Par for the course I'm afraid, but then, perhaps there isn't anything to report?

[borderterrier1] 24/10/2020 15:21

itsagame1 I agree with you 100% Investing has changed. Unless you are lucky enough to stumble on another Apple or Amazon, holding for long periods is a futile strategy. You only need to take a look at what's happened here to realize that.