TIDMHUM
RNS Number : 7808B
Hummingbird Resources PLC
06 June 2023
Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector:
Mining
06 June 2023
Hummingbird Resources pl c
("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 h igh DFS pre-tax NPV
of US$690 million (US$530 million post tax); si gnificant 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
Total
equity
Shares attributable
Share to be Share Retained to the Non-controlling
capital issued premium earnings parent interest Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000
------------------- --------- ----------- ------------ --------- ------------- ---------------- ---------
Balance at 1
January
2021 5,344 17,407 488 150,246 173,485 9,776 183,261
Prior year equity
adjustment -
IFRS
16 - - - (699) (699) (173) (872)
Balance at 1
January
2021(restated) 5,344 17,407 488 149,547 172,786 9,603 182,389
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 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 (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 equity holders of the
parent (34,279) (12,656)
====================================================== ============ ================
2022 2021
Number of shares Number Number
Weighted average number of ordinary shares for
the purposes of basic loss per share 393,525,771 392,676,809
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 per share 418,888,353 409,843,301
====================================================== ============ ================
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
At 31
January exchange Amortisation December
of issue
costs/other
2022 (restated) Cash flow movement (1) 2022
$'000 $'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 GBP0.01 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 GBP1.8 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
GBP14 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 or contact:
Daniel Betts, Hummingbird Resources Tel: +44 (0) 20 7409
CEO plc 6660
Thomas Hill,
FD
Edward Montgomery,
CD
James Spinney Strand Hanson Limited Tel: +44 (0) 20 7409
Ritchie Balmer Nominated Adviser 3494
-------------------------- ----------------------------
James Asensio Canaccord Genuity Limited Tel: +44 (0) 20 7523
Gordon Hamilton Broker 8000
-------------------------- ----------------------------
Bobby Morse Buchanan Tel: +44 (0) 20 7466
Oonagh Reidy Financial PR/IR 5000
George Pope Email: HUM@buchanan.uk.com
-------------------------- ----------------------------
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END
FR FIFLERLIRIIV
(END) Dow Jones Newswires
June 06, 2023 02:00 ET (06:00 GMT)
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