CORPORATE PRESENTATION Q3 UPDATE 2018 DISCLAIMER These presentation - - PowerPoint PPT Presentation
CORPORATE PRESENTATION Q3 UPDATE 2018 DISCLAIMER These presentation - - PowerPoint PPT Presentation
CORPORATE PRESENTATION Q3 UPDATE 2018 DISCLAIMER These presentation slides have been prepared by, and are the sole responsibility of, the directors of Hummingbird Resources plc (Hummingbird Resources or the Company) . Those directors
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DISCLAIMER
These presentation slides have been prepared by, and are the sole responsibility of, the directors of Hummingbird Resources plc (“Hummingbird Resources” or the “Company”). Those directors have taken all reasonable care to ensure that the facts stated herein are true to the best of their knowledge, information and belief. The information in this document is subject to updating, revision and amendment. This document neither constitutes nor forms nor should be constructed as constituting or forming part of any offer or invitation to sell or any solicitation of any offer to purchase or to subscribe for any securities in Hummingbird Resources or any other body corporate or an invitation or inducement to engage in investment activity under section 21 of the UK Financial Services and Markets Act 2000 nor shall it or any part of it form the basis of or be relied on in connection with any contract therefore. This document does not constitute an invitation to effect any transaction with Hummingbird Resources nor to make use of any services provided by Hummingbird Resources. No reliance may be placed for any purpose whatsoever on the information contained in this document nor on assumptions made as to its completeness. No representation or warranty, express or implied, is given by Hummingbird Resources, any of its subsidiaries or any of its respective advisers, officers, employees or agents, as to the accuracy, fairness or completeness of the information or
- pinions contained in this document or expressed in the presentation and, no liability is accepted for any such information or opinions (which should not be relied
upon) or for any loss howsoever arising, directly or indirectly, from any use of this document or its contents or information expressed in the presentation. The information and opinions contained in this document and the presentation are provided as the date of this document and the presentation and are subject to change without notice. This presentation contains forward-looking statements that are based on Hummingbird Resources’ current expectations and estimates. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and Hummingbird Resources disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or
- therwise. Forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be put on such statements due to the
inherent uncertainty therein.
Hummingbird is an emerging +100,000oz gold producer having successfully built, commissioned and completed ramp up on its high grade Yanfolila Gold Project in Mali.
WHO WE ARE
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A COMPELLING INVESTMENT IN THE GOLD SECTOR
Hummingbird is an emerging + 100,000oz gold producer having successfully built, commissioned and completed ramp up on its high grade Yanfolila Gold Project in Mali
YANFOLILA
Project built on time & on budget
6.4M OZ
6.4Moz gold inventory in West Africa
105-115K OZ
105-115koz 2018 guidance
~4,000km2
- f exploration ground in
Mali and Liberia
HIGH GRADE
High grade, low cost
- perator
AIM LISTED
Current SP 27p* Market Cap £93.9m* *as at 19 Sep 2018
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GROW VALUE
Cash flow generation Capital allocation discipline Balance sheet strength
HIGH MARGIN GOLD COMPANY FOCUSED ON SHAREHOLDER VALUE
STRATEGIC FRAMEWORK TO DELIVER VALUE & GROWTH
PRODUCE
105-115Koz 2018 guidance High margin production
EXPLORE
Disciplined investment in brownfield and greenfield targets Conversion of Resources to Reserves
DEVELOP
Proven on time and on budget developers
M&A opportunities will be considered to fast track growth
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COMMERICAL PRODUCTION COMMENCED 1 APRIL 2018
PROGRESSION TO FULL SCALE PRODUCTION
500,000 LTI-FREE HOURS
achieved Q2 2018
25% WOMEN
PLANT OPERATORS
95% LOCAL
WORKFORCE
Q2: 33,101 Q1: 18,785
GOLD POURED (OUNCES)
Q2: 38,726 Q1: 11,941
GOLD SALES (OUNCES)
Q2: 287,605 Q1: 238,628
ORE PRODUCED (TONNES)
Q2: 790 Q1: (RAMP UP)
AISC (US$ / OUNCE)
Q2: 3.43 Q1: 2.96
- AVG. GRADE MILL FEED (G/T)
Q2: 1,307 Q1: 1,332
- AVG. GOLD PRICE (US$ / OUNCE)
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KOMANA EAST & WEST RESERVES & RESOURCES
Resources: 506koz @ 2.44g/t Reserves: 239Koz @ 3.06g/t
KOMANA WEST PIT
CURRENT GOLD INVENTORY Category Tonnes (t) Grade (g/t) Gold (oz) Probable Reserves 7,039,000 3.14 709,800 Total Inventory * 28,495,000 2.40 2,202,700
*Including non-JORC compliant figures
Resources: 809koz @ 3.03g/t Reserves: 471Koz @ 3.18g/t
KOMANA EAST PIT
SIGNIFICANT RESOURCES TARGETED FOR RESERVE CONVERSION
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US$8M+ BUDGET (LIMITED TO 15% FCF) TARGETING LOM EXTENSIONS IN THE NEAR-TERM
YANFOLILA MINE LIFE UPSIDE
1.5Moz of Indicated and Inferred Resources
- utside the current mine plan. Historical
Resource to Reserves conversion rate of 55% 2018 Exploration Programme targeting +50,000m drilling at 6 deposits to convert additional 400,000oz to Reserves
- 1. Gonka: High grade Inferred deposit situated 5km
from the plant
- 2. Komana East & West: Underground (‘UG’)
potential not currently in Reserves
- 3. Guirin West: Situated 2km from the plant with high
grade oxide Resources
- 4. Sanioumale East & West: Currently only oxide ore
in the mine plan
Guirin West
EXCELLENT RECENT DRILL RESULTS:
Komana West: 11.45m @ 8.6g/t 25.75m @ 2.95g/t Guirin West: 16m @ 3.11g/t 4m @ 8.12g/t
For full results see RNS dated 19 Sep 2018
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INCREASING PLANT THROUGHPUT TO FACILITATE ANTICIPATED RESERVE GROWTH
INTRODUCTION OF SECONDARY BALL MILL
- Increase in the plant throughput to 1.4Mtpa
from 1.24Mtpa based on a blend of ore types
- When operating at 100% fresh ore the
throughput capacity will increase from 1Mtpa to 1.24Mtpa
- Second mill should be operational in Q3 2019
and have a capex of circa. US$13m
- The preferential choice when considering the
alternative option of installing a tertiary crusher, per the DFS
- SENET awarded EPCM contract to deliver the
mill
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HUMMINGBIRD HAS A 34% STAKE IN CORA GOLD (AIM: CORA)
CORA GOLD INVESTMENT
Sanankoro: 17m @ 5.43g/t 11m @ 5.24g/t US$10M
Historical expenditure by Gold Fields
Tekeledougou: 56m @ 2.2g/t 17m @ 6.8g/t 60m @ 0.7g/t
SANANKORO GOLD DISCOVERY
potential for a 1Moz+ standalone mine development
STAGE 1 DRILLING
complete at Sanankoro gold discovery with exciting new targets identified and extremely encouraging high- grade gold intercepts
RECENT DRILLING
at Tekeledougou has produced two new gold zones with shallow, broad, high- grade gold intercepts, 8km from Yanfolila processing plant
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OPTIONALITY AND SCALE TO DRIVE PORTFOLIO GROWTH
DUGBE GOLD PROJECT: LIBERIA
4.2M OZ AU
Liberia’s largest gold deposit
70 km by road
from Greenville deep water port
PEA 2013
attractive economics at current gold prices
125,000 OZ AU
Anticipated ounces per annum
20 YEAR
Life of Mine
US$186M
NPV @ US$1,300 Au
29%
I RR
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EV/Production ‘18E Broker Coverage EV/Resources Largest Shareholders
UNDERVALUED AGAINST PEERS
PEER COMPARISON
$- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000
$- $50 $100 $150 $200 $250 $300
Source: Thomson Reuters and Canaccord Genuity Limited Note: prices as at 30 August 2018
0% 1% 2% 3% 4% 5% 6% 7% 8% 9%
Capital Gold Fields Odey Majedie Sustainable Capital Management Sloane Robinson
W H I R E L A N D C A N A C C O R D C E N K O S M I R A B A U D A L I G N R E S E A R C H
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BUILDING A LASTING LEGACY
RESPONSIBLE MINING
MAKING A LASTING & SUSTAINABLE CONTRIBUTION TO THE SOCIAL, ENVIRONMENTAL AND ECONOMIC WELLBEING OF LOCAL COMMUNITIES
- Fund salaries of 20 local teachers
- Established market gardens to create alternative livelihoods
and generate an income for local women, with ability to employ 50+ people per garden
- Established a soap-making enterprise to benefit 10 local
communities and 300 women
- Invested in initiatives to provide clean drinking water across
villages local to Yanfolila
- Run on-going training programmes between UK-qualified
doctors and local nurses on essential medical techniques, such as new-born resuscitation
- Built a brand new health centre in local village of Bougoudale,
to benefit population of approx. 6K
- Established poultry projects across 4 villages, to contribute to
youth employment and socio-economic development
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HUMMINGBIRD RESOURCES
SUMMARY
PRODUCTION
- 2018 GUIDANCE OF 105-
115KOZ
- HIGH GRADE, LOW COST,
CASH GENERATIVE
EXPANSION AT YANFOLILA
- EXPANSION FROM
GONKA DEPOSIT
- POTENTIAL TO INCREASE
PRODUCTION
- SIGNIFICANT LIFE OF MINE
EXTENSION POTENTIAL
EXPLORATION & DEVELOPMENT
- WIDER YANFOLILA
ASSESSMENT AND DEVELOPMENT
- CORA GOLD PORTFOLIO
- 4.2MOZ DUGBE GOLD
PROJECT LIBERIA
CORPORATE GROWTH
- US$70 MILLION FREE CASH
FLOW IN FIRST FULL YEAR OF PRODUCTION @ US$1,250/OZ
- STRONG INSTITUTIONAL
SHAREHOLDER BASE INCLUDING CAPITAL, ODEY, M&G AND MAJEDIE
- M&A GROWTH
OPPORTUNITIES
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Hummingbird Resources Plc hum_gold @HUM_gold Hummingbird Resources Plc +44 (0)20 7409 6660 enquiries@hummingbirdresources.co.uk
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POTENTIAL TO ADD US$24M TO NPV @ US$1,250 GOLD PRICE
GONKA: HIGH GRADE UPSIDE FOR YANFOLILA
- Scoping study level report completed with
robust economics
- Results not includeD in DFS mine plan
- Potential to expand plant to 1.5Mtpa with
additional CIL tanks
- Deposit is open on strike and at depth
385,198 OZ AU
At ~3.1g/t Inferred
166,086 OZ AU
Mined over 6 years
77,424 OZ AU
Underground at 4.47g/t
91,662 OZ AU
In open pit at 2.33g/t 160m +-600m
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A WIDE RANGE OF EXPERIENCE AND DISCIPLINES
BOARD OF DIRECTORS & SENIOR MANAGEMENT
Attie Roux
Non-Executive Director
Stephen Betts
Non-Executive Director
Russell King
Non-Executive Chairman
Ernie Nutter
Non-Executive Director
SHAUN BUNN
SENIOR VP PROJECT DELIVERY
BOARD OF DIRECTORS David Straker-Smith
Non-Executive Director
Dan Betts CEO Tom Hill Finance Director
RESPONSIBLE MINING COMMITTEE David Hebditch Kate Harcourt Edward Bickham TECHNICAL ADVISORY COMMITTEE David Lunt Attie Roux Ernie Nutter Bert Monro Head of Business Development Shaun Bunn Senior VP Project Delivery Louis Kruger General Manager, Yanfolila
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THE BOARD
SHAUN BUNN
SENIOR VP PROJECT DELIVERY
Russell King
Non-Executive Chairman
Dan Betts
CEO
Tom Hill
Finance Director
Ernie Nutter
Non-Executive Director
Attie Roux
Non-Executive Director
Stephen Betts
Non-Executive Director
David Straker-Smith
Non-Executive Director
- Senior Independent Non-Exec of Aggreko Plc
- Former Chief Strategy Officer at Anglo American
& member of the Executive Committee for 8 yrs
- Former Senior Advisor to RBC on Metals & Mining
- Senior Independent Director of Interserve Plc &
Spectris Plc
- Founded Hummingbird in 2005
- Developed the business from a private explorer
to a listed company with 6Moz+ gold
- 18 years’ previous experience in metals industry
- Former Management Consultant at Accenture
in 2000
- 42 years operational , technical and
executive experience
- Former COO of Endeavour Mining
- Chairman of the TAC
- Mining analyst formerly with Capital Group
- Former Director and Managing Director of RBC
Capital Markets
- Former Chairman of RBC Dominion Securities
- BSc Geology
- Director of London-based investment research
and advisory firm, CrossBorderCapital Ltd
- Director of New Vision Management Ltd and
Nomad Energy UK Ltd
- Former positions at ING Barings Securities Ltd
and Gerrard & National Holdings Plc
- Former Senior Manager within BDO
LLP’s natural resources department
- Metallurgy, Economics & Management
Oxford university graduate
- 12 years’ experience in the resource
sector
- Over 40 years’ experience in trading with
gold and related businesses in developing countries
- Chairman of the Stephen Betts group of
companies
- Established several businesses in West
Africa during his career