TIDMHUM
RNS Number : 0536N
Hummingbird Resources PLC
27 May 2022
Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector:
Mining
27 May 2022
Hummingbird Resources plc
("Hummingbird" or the "Company")
2021 Audited Annual Results
Hummingbird Resources plc (AIM: HUM) announces its audited
financial results for the year ended 31 December 2021.
Financial Results:
-- Sales of US$156.6 million (2020: US$181.7 million) were
generated from 87,553 ounces ("oz") of gold sold in 2021 at an
average price of US$1,788/oz (2020: 104,174 oz sold at an average
price of $1,745/oz), with additional US$6.2 million (2020: US$3.4
million) revenue generated from sale of SMO gold
-- EBITDA of US$ 28.2 million (2020: US$75.2 million)
-- Adjusted EBITDA(1) of US$18.6 million (2020: US$62.3 million)
-- Diluted loss per share of US$ 2.78 cents (2020: earnings per share of US$ 5.02 cents)
-- Total bank debt of US$61.8 million with US$13.2 million capital repaid in the year
-- Net debt of US$21.0 million(2) (2020: net cash $1.5 million(2) )
(1) (Adjusted EBITDA Earnings before interest, tax, depreciation
and amortisation, effect of impairment charges, foreign currency
translation gains/losses and other non-recurring expense
adjustments but including IFRS 16 lease payments.)
(2) (Net debt/cash including the value of gold inventory.)
Operational Results
-- 87,558 oz of gold poured in 2021 (2020 : 101,069 oz)
-- All in Sustaining Cost ("AISC") of US$ 1,536 /oz in 2021 (2020 : US$1,147/oz)
-- Total Recordable Injury Frequency Rate ("TRIFR") of 0.59 (2020: 0.82)
-- Company Reserves increased to c.1.12 million ounces ("Moz")
in 2021, a 438,600 oz increase to the previous Company reserve
statement in October 2019 of 672,000 oz
-- Completion of c.68.000 metre drilling programme in 2021 at
both Yanfolila, Mali and Kouroussa, Guinea
Dan Betts, CEO of Hummingbird, commented:
"We set out in 2021 to grow our business by developing our
portfolio of assets to become a multi-asset, multi-jurisdiction
gold producer, expanding our Resources and Reserves through
exploration and implementing improved ESG initiatives.
With the signing of the mining licenses in May 2021 for our
Kouroussa gold mine in Guinea, to commencement of construction in
early 2022, we are well on our way to achieving our strategic goal
of being a multi-asset producer and more than doubling our
production profile in 2023/24.
In relation to our Dugbe gold project, our earn-in partners
Pasofino made material progress in 2021 towards completion of a
definitive feasibility study ("DFS"). While we have achieved
significant growth across our business, our Yanfolila gold mine in
Mali underperformed in the latter part of 2021. We have taken steps
to address these issues, with a significant focus on improving
productivity and predictability at Yanfolila with several
optimisation and mitigation workstreams in place.
As we look to 2022, we remain focused on delivering our vision
for Hummingbird with significant initiatives across our portfolio
to create value and build a Company that we and stakeholders across
the business can be proud of."
For further information, please visit
www.hummingbirdresources.co.uk or contact:
Daniel Betts, CEO Hummingbird Resources plc Tel: +44 (0) 20 7409 6660
Thomas Hill, FD
Edward Montgomery, CSO & ESG
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
Thomas Diehl Broker
-------------------------- ----------------------------
Bobby Morse Buchanan Tel: +44 (0) 20 7466 5000
Ariadna Peretz Financial PR/IR Email: HUM@buchanan.uk.com
James Husband
-------------------------- ----------------------------
Notes to Editors:
Hummingbird Resources (AIM: HUM) is a leading multi-asset,
multi-jurisdiction gold production, development and exploration
Company and member of the World Gold Council ("WGC"). Hummingbird's
vision is to continue to grow its asset base, producing profitable
ounces, while continuing to focus on its Environmental, Social
& Governance ("ESG") policies and practices. The Company
currently has two core gold projects, the producing Yanfolila Gold
Mine in Mali , and the Kouroussa gold development project in Guinea
. Further, the Company has a controlling interest in the Dugbe Gold
Project in Liberia that is being developed by Pasofino Gold Limited
through an earn-in agreement.
Chairman's Statement
Last year, I wrote of the significant challenges the Company and
its employees had faced and successfully navigated. 2021 was
another year of overcoming challenges, which included production
disruptions and headwinds relating to COVID-19, together with
social and political volatility in both Mali and Guinea. This has
translated into Yanfolila's operational performance in 2021 being
below that of the previous year. These challenges brought forward
initiatives to improve the long-term viability of our production
assets, which included strengthening our management team and
expanding our growth platforms, in particular at Kouroussa in
Guinea. As a Board, we are confident that the steps taken to
address these issues have attended to the root causes of the
disruptions faced by the Company. In addition, our strategy of
diversifying away from being a single producing asset at Yanfolila
remains central to creating a more resilient Company.
Despite operational challenges, the Company made significant
progress in 2021 towards becoming a multi-asset, multi-jurisdiction
gold producer with some key outcomes achieved, including amongst
others:
-- We have financed Kouroussa and have commenced its
construction, setting us on a path to becoming a multi-asset,
multi-jurisdiction gold producer in 2023
-- We have expanded the mine life at Yanfolila and Kouroussa
through targeted exploration drilling, with Company Reserves
increasing to over 1 million oz, with further growth anticipated at
the next Company Resources and Reserves statement due in June
2022
-- Our earn-in partners Pasofino Gold Limited ("Pasofino") at
Dugbe, Liberia, made material progress towards delivering a DFS
-- Progress on our ESG initiatives, as highlighted by the
Company successfully achieving in November 2021 our year 2
independent audit assurance on the WGC responsible gold mining
principles ("RGMPs") and progress towards full conformance in
2022
With operational improvements being embedded at Yanfolila and
with the development of the Kouroussa mine in Guinea, the Company
remains on track to being a multi-asset, multi-jurisdiction gold
producer.
ESG continues to be a significant focus for the Company. At
Kouroussa, we are looking to embed technologies to lower our
overall mining carbon footprint, such as a solar plant and heat
recovery systems. Further, as detailed above, we are looking to
achieve full conformance in 2022 of the WCG RGMPs, which we believe
is not just an ESG initiative but one that very much contributes to
improving the overall effectiveness of the Company.
Throughout the year, despite its challenges, we have remained
true to our values and focused on our long-term strategy of
becoming a multi-asset, multi-jurisdiction gold producer. Though we
have faced some difficult challenges in 2021, we are focusing on
operational improvements and delivering future growth platforms for
the Company to generate returns for our long-term shareholders,
whose support is greatly appreciated by the Board.
Furthermore, I note that this will be my last letter as
Chairman. Looking back to when I started in the role we have
clearly come a long way - acquired, financed, built and operated
Yanfolila, acquired, financed and commenced building Kouroussa, and
developed a way forward for Dugbe.
I would like to take this opportunity to thank my fellow
directors, senior management and employees for their support and
efforts over the past eight years. Your professionalism, resilience
and tenacity are much appreciated.
Russell King
Non-Executive Chairman
CEO's Statement
2021 in Review:
This past year we set ourselves several key objectives to
fulfilling our strategic objective of becoming a multi-asset,
multi-jurisdiction gold producer, which included; the development
of our second producing gold mine, Kouroussa in Guinea; the
extension of Life of Mine ("LOM") across our asset portfolio
through a material uplift in discovered gold ounces through
exploration; continuing to improve upon our ESG initiatives; and
achieve better overall operational performance at Yanfolila in
Mali.
In Guinea, we made material strides towards our strategic aim of
becoming a multi-mine Company with the awarding of our Kouroussa
mining licenses in May. Subsequently, we completed the arrangements
for a group financing facility of c.US$100 million from Coris Bank
International in October, with the commencement of construction in
early 2022. Kouroussa's construction continues to advance rapidly
towards the scheduled first gold pour by the end of Q2 2023.
At Dugbe in Liberia, our earn-in partner Pasofino has made solid
progress advancing the DFS of the project, with results expected to
be issued in Q2 2022. This will take Dugbe from an exploration
asset to an economically viable and bankable gold mine which, once
delivered, will also mark a major milestone for the Company. This
project, which was the original founding asset of the Company, is
one of the largest undeveloped gold projects in West Africa, with
over 3.3Moz of gold in the Measured and Indicated category and our
Board looks forward to further progress on this asset to unlock
value to stakeholders.
In 2021 the Company invested heavily in our drilling programmes.
The resulting c.68,000 m of drilling at Yanfolila and Kouroussa
continues to provide increased confidence of LOM extension
potential at both operations. The 2021 drilling data will be
incorporated in our updated Company Resources and Reserves
statement scheduled for release in Q2 2022, with the aim to build
upon our Reserve statement announced in November, which showed an
increase in Reserves to c.1.12Moz, including a maiden Reserve at
Kouroussa. Additionally, this work highlights the potential for
underground mines at both Yanfolila and Kouroussa, which will
become an increasingly important part of the Company's future as
these mines develop.
In terms of ESG, progress was made in 2021. At Kouroussa, we
committed to embedding sustainable technologies into our process
design, such as a solar power plant and heat recovery systems,
which will lower our overall carbon footprint at the operation.
Additionally, we finalised an updated Environmental, Social and
Impact Assessment ("ESIA") study at Kouroussa to ensure our
practices are to a high international standard and in line with the
WGC RGMPs. Another key ESG focus for 2021 for the Company was to
successfully achieve year 2 independent audit assurance on the WGC
RGMPs and progress towards full conformance in 2022. This was
achieved and reported on in November, with more details in our
Sustainability Report section of this report.
Our Single Mine Origin ("SMO") initiative has gathered momentum
during the year with several jewellers and miners showing interest
in adopting the process. This initiative gives us the opportunity
to showcase mining as the force for good that we at Hummingbird
fundamentally believe it is. It gives us the opportunity to be a
part of a 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 Company and be a driver for change for the
positive impact the mining industry delivers more broadly.
However, these key achievements in 2021 were overshadowed by the
overall underperformance of the Yanfolila mine. This performance
has damaged our share price and financial performance, and it is
our highest priority to ensure Yanfolila delivers better overall
operational performance going forward. As such, we have taken
significant steps to return operational performance to where it
should be. Central to these changes has been the appointment of a
group Chief Operating Officer ("COO") and remediation initiatives
with our contract miner, whose excavator fleet underperformed in
the latter part of 2021. We understand that despite the
opportunities and prospects the Company has developed, these are
worth little if we do not deliver reliable operational performance.
The focus over the past six months has therefore been to
significantly increase the operational efficiency and the
availability of the mining fleet and ensure that the mining is in
step with the quality of our processing ability.
2022 Outlook:
As we look to 2022, we have several areas of focus. At
Kouroussa, with construction rapidly advancing and major civil
works now underway, the key priority for the project management
team is to deliver the project on time, on budget and safely, with
zero tolerance towards unsafe behaviours and practices. The
macro-environment in terms of inflationary pressure and political
instability in West Africa provides a challenging backdrop, and as
we move through the year, we will increasingly focus on operational
readiness so that the business of mining effectively and
efficiently is in place when mining begins in 2023 and beyond.
At Dugbe, with a DFS to be issued shortly from our earn-in
partner Pasofino, we will reach a significant milestone on that
project for the Company. We are cognisant post the DFS that we have
the opportunity to deliver meaningful shareholder value on Dugbe,
and we will be carefully reviewing the best options for the Company
in terms of taking this project forward.
We understand the critical need to show operational improvement
at Yanfolila and one that is a key focus area for the year ahead,
with a material amount of management time being spent on increasing
productivity. Work has already begun with the implementation of
several initiatives focused on stabilising our production,
including the delivery and commissioning of additional excavators,
and the essential maintenance of the processing plant, which will
aim to deliver a more disciplined and predictable state of
operations.
Our exploration objectives in 2022 are to finalise the analysis
and delivery of our updated Company Resources and Reserves
statement and extend the LOM of our assets. We will also look to
continue our LOM extension journey by further analysing our geology
base and developing additional exploration campaigns for the
future, particularly at Kouroussa, where a large core re-logging
program is currently underway.
In relation to ESG, it is core to our future for the Company,
and we aim to continue the improvement of our overall ESG processes
and initiatives at the corporate and site levels and to achieve a
successful Year 3 full compliance independent audit assurance
report on the WGC RGMPs by year end.
Furthermore, I note that Russell King has given notice of his
intention to resign as Non-Executive Chair of the Company at or
shortly following the AGM. The Company is actively engaged in the
search for a replacement Non-Executive Chair with further updates
to be provided as and when appropriate. On behalf of the board, I
would like to take this opportunity to thank Russell for his
valuable guidance and support to the Company and me personally over
the past eight years.
Lastly above all else, we will continue to strive to build a
Company that we can all be proud of as shareholders, employees,
founders and other stakeholders alike. Despite the many challenges
the Company has faced, there is no loss of enthusiasm from your
management team, which remains fully committed to the vision of
building a Company that will have a positive impact for the mining
industry at large.
Dan Betts
Chief Executive Officer
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2021
2021 2020
$'000 $'000
--------------------------------------------------------------------------- ---- ---------- ----------
Continuing operations
Revenue 162,777 185,072
Production costs (113,606) (93,975)
Amortisation and depreciation (38,317) (41,367)
Royalties and taxes (6,297) (6,747)
--------------------------------------------------------------------------------- ---------- ----------
Cost of sales (158,220) (142,089)
Gross profit 4,557 42,983
Share based payments (1,459) (2,081)
Other administrative expenses (10,263) (8,928)
--------------------------------------------------------------------------------- ---------- ----------
Operating (loss)/profit (7,165) 31,974
Finance income 4,071 2,014
Finance expense (6,003) (9,288)
Share of joint venture loss (46) (17)
Reversals in impairment of financial assets 108 397
(Losses)/gains on financial assets and liabilities measured at fair value (3,134) 1,203
--------------------------------------------------------------------------------- ---------- ----------
(Loss)/profit before tax (12,169) 26,283
Tax 1,617 (1,135)
--------------------------------------------------------------------------------- ---------- ----------
(Loss)/profit for the year (10,552) 25,148
================================================================================= ========== ==========
Attributable to:
Equity holders of the parent (10,908) 19,022
Non-controlling interests 356 6,126
------------------------------- --------- -------
(Loss)/profit for the year (10,552) 25,148
=============================== ========= =======
(Loss)/earnings per share (attributable to equity holders of the parent)
Basic ($ cents) (2.78) 5.35
Diluted ($ cents) (2.78) 5.02
=========================================================================== ======= =====
Consolidated Statement of Financial Position
As at 31 December 2021
2021 2020
$'000 $'000
------------------------------------------------------- --- -------- ---------
Assets
Non-current assets
Intangible exploration and evaluation assets 91,287 75,574
Intangible assets software 235 204
Property, plant and equipment 144,591 150,247
Right of use assets 35,986 13,797
Investments in associates and joint ventures 129 175
Financial assets at fair value through profit or loss 3,530 7,721
Deferred tax assets 3,868 684
279,626 248,402
----------------------------------------------------------- -------- ---------
Current assets
Inventory 13,148 20,352
Trade and other receivables 25,152 12,724
Unrestricted cash and cash equivalents 32,571 6,552
Restricted cash and cash equivalents 4,168 4,516
75,039 44,144
----------------------------------------------------------- -------- ---------
Total assets 354,665 292,546
============================================================ ======== =========
Liabilities
Non-current liabilities
Borrowings 61,812 -
Lease liabilities 20,962 2,380
Deferred consideration 4,627 5,402
Other financial liabilities 9,092 6,836
Provisions 21,644 16,125
118,137 30,743
----------------------------------------------------------- -------- ---------
Current liabilities
Trade and other payables 33,708 39,440
Lease liabilities 13,496 10,894
Other financial liabilities 15,000 15,000
Provisions 611 -
Borrowings - 13,208
------------------------------------------------------------ -------- ---------
62,815 78,542
Total liabilities 180,952 109,285
------------------------------------------------------------ -------- ---------
Net assets 173,713 183,261
============================================================ ======== =========
Equity
Share capital 5,814 5,344
Share premium 17,425 488
Shares to be issued - 17,407
Retained earnings 140,342 150,246
------------------------------------------------------------ -------- ---------
Equity attributable to equity holders of the parent 163,581 173,485
============================================================ ======== =========
Non-controlling interest 10,132 9,776
Total equity 173,713 183,261
============================================================ ======== =========
Consolidated Statement of Cash Flows
For the year ended 31 December 2021
2021 2020
$'000 $'000
Net cash inflow from operating activities 22,703 66,256
--------------------------------------------------------------- --------- ---------
Investing activities
Asset purchase, net of cash acquired - (35)
Purchases of intangible exploration and evaluation assets (9,992) (2,601)
Purchases of property, plant and equipment (22,295) (18,136)
Pasofino funding 10,141 5,559
Pasofino funding utilisation (10,946) (4,673)
Purchase by non-controlling interest - 1,883
Sale/(purchase) of shares in other companies 2,538 (393)
Interest received - 11
Net cash used in investing activities (30,554) (18,385)
--------------------------------------------------------------- --------- ---------
Financing activities
Exercise of share options - 532
Lease principal payments (13,201) (12,663)
Lease interest payments (819) (1,201)
Loan interest paid (721) (2,547)
Loans repaid (13,278) (29,252)
Loan drawdown 66,365 -
Commissions and other fees paid (5,413) (571)
Net cash generated from/ (used in) financing activities 32,933 (45,702)
--------------------------------------------------------------- --------- ---------
Net increase in cash and cash equivalents 25,082 2,169
Effect of foreign exchange rate changes 589 370
Cash and cash equivalents at beginning of year 11,068 8,529
Cash and cash equivalents at end of year 36,739 11,068
=============================================================== ========= =========
Consolidated Statement of Changes in Equity
For the year ended 31 December 2021
Total equity
Share Shares to be Share Retained attributable to Non-controlling
capital issued premium earnings the parent interest Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000
----------------- --------- ----------------- --------- ---------- ---------------- ----------------- ---------
Balance at 1
January 2020 5,301 - - 129,952 135,253 3,650 138,903
Comprehensive
income for the
year:
Profit for the
year - - - 19,022 19,022 6,126 25,148
-----------------
Total
comprehensive
income for the
year - - - 19,022 19,022 6,126 25,148
Transactions
with owners in
their capacity
as owners:
Shares to be
issued as
consideration
in asset
purchase - 17,407 - - 17,407 - 17,407
----------------- --------- ----------------- --------- ---------- ---------------- ----------------- ---------
Total
transactions
with owners in
their capacity
as owners - 17,407 - - 17,407 - 17,407
Share based
payments 43 - 488 1,272 1,803 - 1,803
As at 31
December 2020 5,344 17,407 488 150,246 173,485 9,776 183,261
================= ========= ================= ========= ========== ================ ================= =========
Comprehensive
income for the
year:
(Loss)/profit
for the year - - - (10,908) (10,908) 356 (10,552)
-----------------
Total
comprehensive
income for the
year - - - (10,908) (10,908) 356 (10,552)
Transactions
with owners in
their capacity
as owners:
Shares issued as
consideration
in asset
purchase 470 (17,407) 16,937 - - - -
Total
transactions
with owners in
their capacity
as owners 470 (17,407) 16,937 - - - -
Share based
payments - - - 1,004 1,004 - 1,004
As at 31
December 2021 5,814 - 17,425 140,342 163,581 10,132 173,713
================= ========= ================= ========= ========== ================ ================= =========
Share capital Retained earnings
The share capital comprises the issued ordinary shares of Cumulative net gains and losses recognised in the
the Company at par value. consolidated statement of comprehensive
income.
Share premium Non-controlling interest
The share premium comprises the excess value recognised
from the issue of ordinary shares The non-controlling interest relates to the 20% stake the
for consideration above par value. Government of Mali has in Société
Des Mines De Komana SA ("SMK") which owns and operates
the Yanfolila Mine.
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 2021 and 31
December 2020.
The financial information for the year ended 31 December 2021
has been extracted from the Company's audited financial statements
which were approved by the Board of Directors on 26 May 2022 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 2021 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 2020 have been
delivered to the Registrar of Companies. The Auditor has reported
on those accounts; their report was unqualified 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 2021, the Group had cash and cash
equivalents of $36.7 million and total borrowings of $61.8 million.
Details on the Group's borrowings are set out in note 17 to the
financial statements.
The Group has prepared cash flow forecasts based on estimates of
key variables including production, gold price, operating costs,
capital expenditure through to December 2023 that supports the
conclusion of the Directors that they expect sufficient funding
should be available to meet the Group's anticipated cash flow
requirements to this date.
These cashflow forecasts are subject to several 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 associated with the recent change in governments in Mali and
Guinea and subsequent sanctions on Mali, the sanctions on Russia as
well as COVID-19.
The biggest material uncertainty and risk remains ounces
produced and whether the current mine plan can be achieved, mining
contractor equipment performance, the impact of COVID-19, and
impact of the latest change in government and resulting sanctions
in Mali and sanctions on Russia, which are also having a logistical
impact on the Group. 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, 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 Directors
believe that they have several options available to them, such as
use of the current overdraft facility, obtaining additional
funding, delaying expenditures, sale of non-core assets, 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 was 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
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 or obtain
additional funding 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)/profit per ordinary share
Basic (loss)/profit per ordinary share is calculated by dividing
the net (loss)/profit 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)/profit per share
is based on the following data:
2021 2020
$'000 $'000
------------------------------------------------------------------------------------------ ------------ ------------
(Loss)/profit
(Loss)/profit for the purposes of basic (loss)/profit per share being net (loss)/profit
attributable
to equity holders of the parent (10,908) 19,022
========================================================================================== ============ ============
2021 2020
Number of shares Number Number
Weighted average number of ordinary shares for the purposes of basic (loss)/profit per
share 392,676,809 355,380,149
Weighted number of shares to be issued as part of asset purchase - 11,685,100
Adjustments for share options and warrants 17,166,492 11,835,883
------------------------------------------------------------------------------------------ ------------ ------------
Weighted average number of ordinary shares for the purposes of diluted (loss)/profit per
share 409,843,301 378,901,132
========================================================================================== ============ ============
2021 2020
(Loss)/profit per ordinary share $ cents $ cents
------------------------------------------------------------------------------------------ ------------ ------------
Basic (2.78) 5.35
Diluted (2.78) 5.02
========================================================================================== ============ ============
At the reporting date there were 19,984,137 ( 2020: 50,761,957)
potentially dilutive ordinary shares. For the year ended 31
December 2021, 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
At 31
January exchange Amortisation December
of issue
costs/other
2021 Cash flow movement (1) 2021
$'000 $'000 $'000 $'000 $'000
Unrestricted cash 6,552 25,082 937 - 32,571
Restricted cash 4,516 - (348) - 4,168
------------------------- ---------- ------------ ----------- -------------- ----------
Total cash & cash
equivalents 11,068 25,082 589 - 36,739
Borrowings (13,208) (49,366) 24 738 (61,812)
Lease liabilities (13,275) 13,201 - (34,384) (34,458)
------------------------- ---------- ------------ ----------- -------------- ----------
Net debt (15,415) (11,083) 613 (33,646) (59,531)
------------------------- ---------- ------------ ----------- -------------- ----------
(1) Included within the other category on lease liabilities is
$39,711,000 additions to liabilities as well as $5,271,000
forfeiture of liabilities as a result of changing mining
contractors in Mali. Included within the other category for
borrowings is $1 million of unpaid legal fees at year end offset by
$261,000 issue costs amortisation.
6. Borrowings
New Coris Senior Coris Senior Coris Second Total
Loan Facility Loan Facility Ball Mill Facility Borrowings
$'000 $'000 $'000 $'000
At 1 January 2021 - 12,308 900 13,208
Loan drawdown 66,365 - - 66,365
Issue costs arising during the year (4,711) - - (4,711)
Issue costs amortised in the year - 261 - 261
Interest charged during the year - 271 - 271
Principal & interest repayments during the
year - (12,657) (900) (13,557)
Foreign exchange loss during the year 158 (183) - (25)
Total borrowings at 31 December 2021 61,812 - - 61,812
Analysed as:
Current - - - -
Non-current 61,812 - - 61,812
============================================== ================= =============== ==================== ============
New Coris Senior Loan Facility
On 4 November 2021, the Group's subsidiary, Société des Mines de
Komana SA ("SMK") entered into a senior secured term debt facility
with Coris Bank International ("Coris") for CFA 38,500,000,000
(approximately $70,000,000 before any fees). In December 2021, the
full amount was drawn down. The debt facility has the following key
terms:
- A 4 year term.
- Interest at 8.5% per annum (payable quarterly).
- Principal deferral period of 18 months from first draw down,
payable quarterly thereon.
Further the Group's subsidiary, Kouroussa Gold Mine SA ("KGM")
entered into a senior secured term debt facility with Coris Bank
International ("Coris") for $30,000,000. This amount was undrawn as
at 31 December 2021. The debt facility has the same terms as
reflected above.
Coris Senior Loan Facility
On 11 April 2017, the Group's subsidiary, Société des Mines de
Komana SA ("SMK") entered into a senior secured term debt facility
with Coris Bank International ("Coris") for CFA 37,000,000,000
(approximately $60,000,000). On 10 April 2017 SMK drew down the CFA
15,500,000,000 (approximately $25,000,000) and on 4 July 2017 drew
down the remaining CFA 21,500,000,000 (approximately $35,000,000).
The debt facility has the following key terms:
- A 4 year term.
- Interest at 9% per annum (payable monthly).
- Principal deferral period of 12 months from first draw down,
payable monthly thereon.
This loan was fully repaid by June 2021.
Coris Second Ball Mill Facility
On 26 November 2019, following approval for the construction of
the Second Ball Mill at the Yanfolila Mine, the Group's subsidiary,
SMK, entered into a senior secured term debt facility with Coris
for CFA 5,500,000,000 (approximately $9,600,000). On 28 December
2020 SMK drew down the balance of the facility. The debt facility
has the following key terms:
- A 2 year term.
- Interest at 9% per annum (payable monthly).
- Principal deferral period of 12 months from first draw down,
payable monthly thereon.
This loan was fully repaid by January 2021.
Coris Overdraft Facility
On 18 November 2019, the Group's subsidiary, SMK entered into an
overdraft facility with Coris for CFA 5,500,000,000. This amount
was later increased to CFA 11,200,000,000 (approximately
$20,000,000 at 31 December 2021 exchange rate), to provide
additional working capital flexibility. This facility was renewed
on 18 December 2020 and then lately on 27 December 2021. The Coris
Overdraft Facility carries an interest rate of 9% per annum and
remains available twelve months from date of renewal.
Security for these borrowings has been granted to Coris over the
assets of SMK and KGM, as well as the share capital of SMK and KGM,
a parent company guarantee, and restricted cash held in an escrow
account.
The Group records and measures borrowings at amortised cost,
using the effective interest rate method.
7. Availability of Accounts
The audited Annual Report and Financial Statements for the year
ended 31 December 2021 and notice of AGM will shortly be sent to
shareholders and published at: www.hummingbirdresources.co.uk
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR SEISIWEESEDI
(END) Dow Jones Newswires
May 27, 2022 02:01 ET (06:01 GMT)
Hummingbird Resources (LSE:HUM)
Historical Stock Chart
From Apr 2024 to May 2024
Hummingbird Resources (LSE:HUM)
Historical Stock Chart
From May 2023 to May 2024