Last checked at 27 Sep 2017 07:00
Hummingbird Resources Plc / Ticker: HUM / Index: AIM / Sector: Mining
Hummingbird Resources Plc ("Hummingbird" or the "Company" or the "Group")
Interim Results
Hummingbird Resources Plc, announces its unaudited financial results for the six months ended 30 June 2017.
OPERATIONAL HIGHLIGHTS
· Development of the Yanfolila Gold Project in Mali ("Yanfolila" or the "Project") progressed on schedule and on budget ahead of the expected first gold pour by end of 2017
· Commencement of pre-production mining post period end by the contract miner, African Mining Services ("AMS")
· Arrival of ball mill to site - significant milestone achieved in mine development which de-risks the delivery of Yanfolila's critical path
· Post-period the ball mill shell has been successfully installed
CORPORATE HIGHLIGHTS
· Increased ownership in the Project to 80% from 75% following the Company's acquisition from La Petite Mine d'Or SARL ("LPMDO") of its 5% interest in the Project for US$1 million
· Hummingbird also successfully negotiated the acquisition of the 1% royalty LPMDO had over the Project for a further US$1 million
o Total consideration of US$2 million to be paid in shares to be issued by 31 March 2018
· The Government of Mali agreed to increase its shareholding in the Project from 10% to 20% by investing approx. US$11m as announced on 13th June 2017
· The Company disposed of its subsidiaries Sankarani Resources SARL and Hummingbird Exploration Mali SARL, containing non-core exploration permits, in exchange for 50% of the issued share capital of Cora Gold Limited
o Cora is currently in the process of completing an IPO onto AIM
· US$60 million debt facility entered into with Coris Bank International Group in April 2017 and now fully drawn down
· Post-period cash balance on 1 September was approximately US$60 million
The interim results have also been made available on the Company's website.
Corporate Consolidated Income Statement
For the six months ended 30 June 2017
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| Unaudited six months ended 30 June | Unaudited six months ended 30 June | Audited year ended 31 December |
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| 2017 | 2016 | 2016 |
| Note | $'000 | $'000 | $'000 |
Continuing operations |
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Revenue |
| - | - | - |
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Share based payments |
| (210) | (337) | (505) |
Other administrative expenses |
| (3,503) | (2,107) | (7,114) |
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Administrative expenses |
| (3,713) | (2,444) | (7,619) |
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Finance income |
| 1,556 | 99 | 668 |
Finance expense |
| (457) | (402) | (1,491) |
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Loss before tax |
| (2,614) | (2,747) | (8,442) |
Tax |
| - | - | - |
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Loss for the period/year attributable to equity holders of the parent |
| (2,614) | (2,747) | (8,442) |
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Loss per ordinary share |
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Basic and diluted (US$ cents) | 3 | (0.76) | (2.53) | (3.60) |
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There was no other comprehensive income in the current or prior periods.
Consolidated Balance Sheet
As at 30 June 2017
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| Unaudited 30 June | Unaudited 30 June | Audited 31 December |
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| 2017 | 2016 | 2016 |
| Note | $'000 | $'000 | $'000 |
Assets |
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Non-current assets |
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Intangible exploration and evaluation assets |
| 60,989 | 62,729 | 63,137 |
Intangible assets software |
| 171 | - | - |
Property, plant and equipment |
| 75,036 | 39,884 | 51,091 |
Investments in associate |
| 2,711 | - | - |
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| 138,907 | 102,613 | 114,228 |
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Current assets |
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Trade and other receivables |
| 24,796 | 23,326 | 9,460 |
Cash and cash equivalents |
| 71,006 | 50,953 | 53,839 |
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| 95,802 | 74,279 | 63,299 |
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Total assets |
| 234,709 | 176,892 | 177,527 |
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Liabilities |
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Current liabilities |
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Trade and other payables |
| (11,786) | (6,449) | (10,856) |
Other financial liabilities |
| (15,967) | (30,788) | (15,510) |
Borrowings |
| (1,309) | - | (14,751) |
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Total current liabilities |
| (29,062) | (37, 237) | (41,117) |
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Non-current liabilities |
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Borrowings |
| (58,361) | - | - |
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Total liabilities |
| (87,423) | (37,237) | (41,117) |
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Net assets |
| 147,286 | 139,655 | 136,410 |
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Equity |
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Share capital | 4 | 5,156 | 5,013 | 5,156 |
Share premium |
| 148,516 | 146,551 | 148,516 |
Shares to be issued |
| 2,000 | - | - |
Retained earnings |
| (19,235) | (11,909) | (17,262) |
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Equity attributable to equity holders of the parent |
| 136,437 | 139,655 | 136,410 |
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Non-controlling interest |
| 10,849 | - | - |
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Total equity |
| 147,286 | 139,655 | 136,410 |
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Consolidated Statement of Cash Flows
For the six months ended 30 June 2017
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| Unaudited six months ended 30 June | Unaudited six months ended 30 June | Audited year ended 31 December |
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| 2017 | 2016 | 2016 |
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| $'000 | $'000 | $'000 |
Operating activities |
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Loss before tax |
| (2,614) | (2,747) | (8,442) |
Adjustments for: |
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Finance income |
| (1,556) | (99) | (668) |
Finance expense |
| 457 | 402 | 1,491 |
Depreciation of property, plant and equipment |
| 6 | 4 | 8 |
Share based payments |
| 210 | 337 | 505 |
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Operating cash flows before movements in working capital |
| (3,497) | (2,103) | (7,106) |
Increase in receivables |
| (974) | (322) | (329) |
(Decrease) / Increase in payables |
| (565) | 46 | 1,064 |
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Net cash outflow from operating activities |
| (5,036) | (2,379) | (6,371) |
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Investing activities |
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Purchases of intangible exploration and evaluation assets |
| (350) | (522) | (973) |
Purchases of intangible software assets |
| (176) | - | - |
Purchases of property, plant and equipment |
| (21,855) | (953) | (9,718) |
Purchases of shares in investments |
| (242) | - | - |
Interest received |
| 196 | 25 | 160 |
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Net cash used in investing activities |
| (22,427) | (1,450) | (10,531) |
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Financing activities |
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Net proceeds from issue of shares |
| - | 48,664 | 66,315 |
Loan interest paid |
| (934) | (700) | (1,303) |
Financial liabilities issued net of issue costs |
| 69,257 | - | - |
Financial liabilities repaid |
| (25,000) | - | - |
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Net cash from financing activities |
| 43,323 | 47,964 | 65,012 |
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Net Increase in cash and cash equivalents |
| 15,860 | 44,135 | 48,110 |
Effect of foreign exchange rate changes |
| 1,307 | (402) | (1,491) |
Cash and cash equivalents at beginning of period/year |
| 53,839 | 7,220 | 7,220 |
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Cash and cash equivalents at end of period/year |
| 71,006 | 50,953 | 53,839 |
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Consolidated Statement of Changes in Equity
For the six months ended 30 June 2017
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Share capital $'000 |
Share premium $'000 |
Shares to be issued $'000 | Retained earnings $'000 | Total equity attributable to the parent $'000 | Non-controlling interest $'000 | Total equity $'000 |
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For the six months ended 30 June 2016 |
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As at 1 January 2016 | 1,723 | 81,428 | - | (9,499) | 73,652 | - | 73,652 |
Issue of shares | 3,290 | 65,123 | - | - | 68,413 | - | 68,413 |
Share based payments | - | - | - | 337 | 337 | - | 337 |
Total comprehensive loss for the period | - | - | - | (2,747) | (2,747) | - | (2,747) |
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As at 30 June 2016 | 5,013 | 146,551 | - | (11,909) | 139,655 | - | 139,655 |
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For the year ended 31 December 2016 |
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As at 1 January 2016 | 1,723 | 81,428 | - | (9,499) | 73,652 | - | 73,652 |
Issue of shares | 3,433 | 67,088 | - | - | 70,521 | - | 70,521 |
Share based payments | - | - | - | 679 | 679 | - | 679 |
Total comprehensive loss for the period | - | - | - | (8,442) | (8,442) | - | (8,442) |
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As at 31 December 2016 | 5,156 | 148,516 | - | (17,262) | 136,410 | - | 136,410 |
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For the six months ended 30 June 2017 |
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As at 1 January 2017 | 5,156 | 148,516 | - | (17,262) | 136,410 | - | 136,410 |
Shares to be issued in parent company | - | - | 2,000 | - | 2,000 | - | 2,000 |
Shares to be issued in subsidiary | - | - | - | - | - | 10,849 | 10,849 |
Share based payments | - | - | - | 641 | 641 | - | 641 |
Total comprehensive loss for the year | - | - | - | (2,614) | (2,614) | - | (2,614) |
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As at 30 June 2017 | 5,156 | 148,516 | 2,000 | (19,235) | 136,437 | 10,849 | 147,286 |
Notes to the interim results
For the six months ended 30 June 2017
1 General information
Hummingbird Resources plc (the 'Company'), was incorporated in England and Wales under the Companies Act. The address of the registered office is 49-63 Spencer Street, Hockley, Birmingham, West Midlands, B18 6DE.
The nature of the Group's operations and its principal activities is the exploration, evaluation and development of mineral projects, principally gold, focused primarily in West Africa.
2 Basis of preparation
The consolidated interim financial information has been prepared using policies based on International Financial Reporting Standards issued by the International Accounting Standards Board ("IASB") as adopted by the European Union, which are expected to be applied in the Group's financial statements for the period ended 31 December 2017.
The consolidated interim financial information for the period 1 January 2017 to 30 June 2017 is unaudited, does not include all the information required for full financial statements and should be read in conjunction with the Group's consolidated financial statements for the year ended 31 December 2016. In the opinion of the Directors the consolidated interim financial information for the period represents fairly the financial position, results from operation and cash flows for the period in conformity with generally accepted accounting principles consistently applied. The consolidated interim financial information incorporates comparative figures for the interim period 1 January 2016 to 30 June 2016 and the audited financial year to 31 December 2016. As permitted, the Group has chosen not to adopt IAS34 'Interim Financial Reporting'.
The annual financial statements of Hummingbird Resources plc are prepared in accordance with International Financial Reporting Standards ('IFRSs') as issued by the International Accounting Standards Board ('IASB') and as adopted by the European Union. The Group's consolidated annual financial statements for the year ended 31 December 2016, have been filed with the Registrar of Companies and are available on the Company's website www.hummingbirdresources.co.uk. The auditor's report on those financial statements was unqualified and did not contain a statement under sections 498(2) or (3) of the Companies Act 2006.
3 Loss per ordinary share
Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period/year.
Due to the losses incurred during the period a diluted loss per share has not been calculated as this would serve to reduce the basic loss per share.
The calculation of the basic and diluted loss per share is based on the following data:
| Unaudited six months ended 30 June 2017 $'000 | Unaudited six months ended 30 June 2016 $'000 | Audited year ended 31 December 2016 $'000 |
Losses Loss for the purposes of basic loss per share being net loss attributable to equity holders of the parent |
(2,614) |
(2,747) |
(8,442) |
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Number of shares |
Number |
Number |
Number |
Weighted average number of ordinary shares for the purposes of basic loss per share | 343,241,250 | 108,625,519 | 234,603,288 |
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US$ cents |
US$ cents |
US$ cents |
Loss per ordinary share |
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Basic and diluted (US$ cents) | (0.76) | (2.53) | (3.60) |
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4 Share capital
4.1 Issued equity share capital
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| Unaudited 30 June 2017 Number | Unaudited 30 June 2016 Number | Audited 31 Dec 2016 Number |
Issued and fully paid |
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Ordinary shares of £0.01 each |
| 343,241,250 | 332,141,250 | 343,241,250 |
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| Unaudited 30 June 2017 $'000 | Unaudited 30 June 2016 $'000 | Audited 31 Dec 2016 $'000 | |
Issued and fully paid Ordinary shares of £0.01 each |
5,156 |
5,013 |
5,156 | |
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4.2 Share options
At the 30 June 2017 there were 13,261,568 (Dec 2016: 13,443,386) share options outstanding.
4.3 WarrantsAt the 30 June 2017 there were 9,899,505 (Dec 2016: 9,899,505) warrants outstanding.
Events after the reporting period
5.1 Exercise of warrants
On 11 September 2017, the Company announced the issue of 750,000 ordinary shares relating to a notice of exercise in respect of 750,000 warrants. The Company issued the shares at the exercise price of 22p per share and received £165,000 in cash as consideration. These newly issued shares bring the total number of voting rights in the Company to 343,991,250.
5.2 Additions to Hummingbird Incentive Plan - Performance Orientated ("HIPPO")
On 26 September 2017, the Company granted 727,272 options over ordinary shares in the Company to two group employees under the existing HIPPO scheme.
**ENDS**
For further information, please visit www.hummingbirdresources.co.uk or contact:
Daniel Betts Thomas Hill Robert Monro | Hummingbird Resources plc | Tel: +44 (0)20 3416 3560 |
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James Spinney Ritchie Balmer James Bellman | Strand Hanson Limited Nominated & Financial Adviser | Tel: +44 (0) 20 7409 3494
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Jon Belliss | Beaufort Securities Limited Broker | Tel: +44 (0) 20 7382 8300 |
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Lottie Brocklehurst Susie Geliher | St Brides Partners Ltd Financial PR/IR | Tel: +44 (0) 20 7236 1177 |
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.
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.