Hummingbird Resources PLC Quarterly Review (8390T)
11 January 2017 - 6:00PM
UK Regulatory
TIDMHUM
RNS Number : 8390T
Hummingbird Resources PLC
11 January 2017
Ticker: HUM / Index: AIM / Sector: Mining
Hummingbird Resources plc ("Hummingbird" or "the Company")
Quarterly Review
Hummingbird Resources (AIM: HUM), is pleased to announce a
review of activities during Q4 2016 which saw construction
commencing at its Yanfolila Gold Project in Mali ("Yanfolila")
ahead of expected first gold production at the end of 2017.
Highlights
-- Commencement of construction at Yanfolila in October 2016:
o IMAGRI-SARL, a leading specialist of building, mining and
industrial infrastructure in Mali, commenced civil works
o First concrete poured on 20 October 2016
-- Long lead items ordered in October 2016, including the
crushing circuit equipment from Metso, agitators from Afromix,
screens and carbon regeneration kiln from Kemix
-- Mill shell, pinions and gears all ordered and construction on schedule
-- US$45 million Senior Secured Term Facility and US$10 million
Cost Overrun Facility signed with Taurus Funds Management Pty
Limited ("Taurus" or "Taurus Funds Management") ensuring Yanfolila
is fully funded through to positive cash flow
-- African Mining Services, a subsidiary of ASX listed Ausdrill
Limited, appointed as mining contractor at Yanfolila
Please click on the following link to see recent pictures and
videos of construction. This will continue to be updated regularly.
http://hummingbirdresources.co.uk/gallery/
Review
The on-going transformation of Hummingbird into a production
company started in Q4 2016 and a huge amount of activity has taken
place.
The defining moment of Q4 2016 was the commencement of full
scale construction at Yanfolila, our 2.2 million ounces ("Moz")
gold project in Mali, in October 2016. Yanfolila boasts impressive
economics demonstrated by the US$162 million NPV(8) and 60% IRR at
a US$1,250/oz gold price. The plant will have capacity to process
1.24 million tonnes / year ("Mt/year"), producing 132,000oz of gold
in its first full year of production and a life of mine average of
107,000oz/year with 3.1 grams/tonne ("g/t") reserves. Yanfolila
provides rapid payback on initial capital invested with over US$70
million free cash flow expected to be generated in its first full
year of production. Our all in sustaining cash cost ("AISC") is in
the bottom quartile of producers at circa US$700/oz and
importantly, at a US$1,100/oz gold price the project, with a 42%
IRR, is extremely robust. There is also considerable upside at
Yanfolila, with over 1Moz of gold outside of the mine plan but
within the permit as well as the Gonka deposit (5km south of the
Yanfolila plant), which based on the desktop study undertaken by
DRA Projects (as announced on 2 February 2016) can add a further
US$24 million to the NPV alone.
Having secured the necessary equity to build Yanfolila in the
summer of 2016, Hummingbird finalised the arrangements for a US$45
million debt facility with an additional $10m cost-over run
facility with Taurus Funds Management in Q4. Taurus confirmed
completion of technical due-diligence on the project and provided
the additional flexibility for Hummingbird to further extend its
Bridge Facility by a further US$10 million to US$25 million whilst
facility documentation is completed; underlying its commitment to
Yanfolila. The Taurus debt facility was the final funding stage
necessary to ensure full funding for Yanfolila into positive
cash-flows.
Yanfolila is now a hive of activity with good progress being
made on the ground. A few short months ago, only earthworks had
been completed and now, with civil works underway we are on track
for steel work to begin in the coming weeks. The Company is hosting
a site visit of mining analysts later this month and the Company is
confident that strong progress made over recent weeks and months
will be recognised by that group.
In December, the executive team visited the factories in Europe
which are presently constructing the ball mill and gearing, and we
are pleased to report that excellent progress is being made across
all areas of this critical aspect of the plant development. The
professionalism and quality of the work at the facilities was
impressive to see.
The Company looks forward to providing further regular updates
over the coming months as activity ramps up and Yanfolila evolves
in to what is expected to be a high margin gold mining operation in
the near term.
**ENDS**
For further information, please visit
www.hummingbirdresources.co.uk or contact:
Daniel Betts Hummingbird Resources Tel: +44 (0) 20
Thomas Hill plc 3416 3560
Robert Monro
-------------------- ----------------------- ----------------
James Spinney Strand Hanson Limited Tel: +44 (0) 20
Ritchie Balmer Nominated & Financial 7409 3494
James Bellman Adviser
-------------------- ----------------------- ----------------
Jon Belliss Beaufort Securities Tel: +44 (0) 20
Limited 7382 8300
Broker
-------------------- ----------------------- ----------------
Lottie Brocklehurst St Brides Partners Tel: +44 (0) 20
Susie Geliher Ltd 7236 1177
Financial PR/IR
-------------------- ----------------------- ----------------
About Hummingbird Resources Plc
Notes to Editors
Hummingbird Resources (AIM: HUM) is building a leading gold
production, development and exploration company. The Company has
two core gold projects, the near-term production Yanfolila Gold
Project in Mali and the Dugbe Gold Project in Liberia. It is
currently building Yanfolila targeting first production by end of
2017, which has a Probable Reserve of 709,800oz @ 3.14g/t and total
Resources of 1.8Moz of gold and an additional 390,700oz of
non-compliant exploration potential. The high-grade gold project
has low operating costs of US$695/oz AISC with 132,000oz of first
full year's production.
The 4.2Moz Dugbe Gold Project in Liberia provides Hummingbird
with excellent development upside. An optimisation of the DFS is
on-going whilst Yanfolila is brought to production in the
near-term. Additionally, the Company has 4,000km(2) highly
prospective exploration ground in Mali and Liberia and is
constantly evaluating new quality assets.
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDOKKDDOBKDKDD
(END) Dow Jones Newswires
January 11, 2017 02:00 ET (07:00 GMT)