Hummingbird Resources (HUM ), an Africa-focused gold explorer, announced audited financial results for FY22 ended 31 December 2022. Hummingbird generated sales of US$143.3m (FY21: US$156.6mn) from 80,445 oz of gold sold in FY22 at an average price of US$1,782/oz (FY21: 87,553 oz sold at an average price of $1,788/oz), with additional US$7.0m (FY21: US$6.2m) of revenue generated from sale of Single Mine Origin (SMO) gold. 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$11m for Q4 2022.

Hummingbird's reserves increased significantly to 4.13 million ounces (Moz), compared to 1.12 Moz in FY21, following extensive drilling campaigns completed at Yanfolila, Mali and Kouroussa, Guinea in 2021 being converted into Reserves, and the completion of a Definitive Feasibility Study (DFS) in June 2022 on Dugbe in Liberia.

The DFS at Dugbe was completed by JV partners Pasofino Gold. The DFS showcased a high pre-tax NPV of US$690m (US$530m post tax), a significant 2.76Moz reserve base, long life of mine 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.

During the year, Hummingbird commenced construction of its Kouroussa gold mine in Guinea with the target of achieving production by Q2 2023. The company is on track to meet this goal with first gold pour imminent and name plate production expected in H2 2023.

At Yanfolila, performance improved significantly in Q4 2022 and Q1 2023 following production challenges last year. Yanfolila is now cashflow positive with a view to bring online its underground mine by year end for a full year of production in 2024.

Going forward, Hummingbird aims to increase exploration activities and extend its reserves base further. The company is completing a detailed review of its exploration plans at Kouroussa and Yanfolila, with expectations in 2H 2023 and 2024 to have reinitiated exploration campaigns at those assets, particularly Kouroussa.

With Yanfolila's operational performance materially improving and Kouroussa's first gold imminent, Hummingbird stands at a value inflection point. After a tripling of its reserves to 4.1Moz last year, the company has strong momentum into H2 2023 and beyond.

 

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