q2 2018 operational update...s i m p l e g r a v i t y & c i l p r o c e s s i n g r o u t e...
TRANSCRIPT
Q2 2018 Operational Update
DISCLAIMER
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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
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H U M M I N G B I R D Q 2 2 0 1 8 1
A COMPELLING INVESTMENT IN THE GOLD SECTOR
H U M M I N G B I R D Q 2 2 0 1 8 2
Yanfolila Gold Mine
Bamako Office6.4Moz go ld inventory in West Af r i ca
L i s ted on AIMCurrent SP 31p *
Market Cap £108m*
High grade Low costoperator
~4,000km 2
of exp lorat ion ground in Mal i and
L iber ia
MALI
LIBERIA
Dugbe Gold Project
Monrovia office
*as at 16 July 2018
Hummingbi rd i s an emerging + 100,000oz go ld producer having successful ly bu i l t , commiss ioned and completed ramp up on i t s h igh -grade Yanfol i la G old Pro ject in Mal i
Yanfo l i la bui l t on t ime & on budget
105-115koz 2018 gu idance
BoD & SENIOR MANGEMENT
H U M M I N G B I R D Q 2 2 0 1 8 3
* Full biographies of Senior Management Team can be found on the website: http://hummingbirdresources.co.uk/corporate-ir/senior-management/
DAN BETTS
CEO
ROBERT MONRO
HEAD OF BUSINESS DEVELOPMENT
LOUIS KRUGER
GENERAL MANAGER
DAVID HEBDITCHKATE HARCOURTEDWARD BICKHAM
SHEC COMMITTEE
Att ie RouxNon -Execut ive D i rector
Stephen BettsNon -Execut ive D i rector
Russel l K ingNon -Execut ive Cha i rman
Er n ie NutterNon -Execut ive D i rector
SHAUN BUNN
SENIOR VP PROJECT DELIVERY
SHAUN BUNN
SENIOR VP PROJECT DELIVERY
IAN COCKERILLDAVID LUNTATTIE ROUXERNIE NUTTER
TECHNICAL ADVISORY COMMITTEE
BOARD OF DIRECTORS
David St raker -SmithNon -Execut ive D i rector
TOM HILL
F i n a n c e D i r e c to r
STRATEGIC FRAMEWORK TO DELIVER VALUE & GROWTH
H U M M I N G B I R D Q 2 2 0 1 8
DEVELOP• Proven on t ime
and on budget deve lopers
EXPLORE
• Disc ip l ined investment in brownfie ld and greenf ie ld targets
• Convers ion of Resources to Reser ves
GROW VALUE• Cashf low generat ion• Capita l a l locat ion
d i sc ip l ine• Balance sheet st rength
PRODUCE• 105-115Koz 2018
guidance• High margin
product ion
M & A o p p o r t u n i t i e s w i l l b e c o n s i d e r e d t o f a s t t r a c k g r o w t h
HIGH MARGIN GOLD COMPANY FOCUSED ON SHAREHOLDER VALUE
YANFOLILA Q2 IN NUMBERS
H U M M I N G B I R D Q 2 2 0 1 8 5
Q2 2018 Q1 2018*
Gold Poured (Ounces) 33,101 18,785
Ore mined (Tonnes) 282,153 295,228
Ore processed (Tonnes) 287,605 238,628
Avg grade mill feed (g/t) 3.43 2.96
Recovery Rate (%) 95.17 96.10
Gold Sales (Ounces) 38,726 11,941
AISC (US$/oz) 790 -
Average gold sale price (US$/oz) 1,307 1,332
*Ramp-up quarter
PRODUCTION & ORGANIC GROWTH POTENTIAL AT YANFOLILA
H U M M I N G B I R D Q 2 2 0 1 8 6
HIGH GRADE, LOW COST GOLD PRODUCTION
Grade(g/t)
Year
Grade (g/t)
Ounces of gold (Koz)
* Gonka has the potential to bring higher grade ounces into the mine plan from year 3
Total potential ounces of gold from Gonka upside (Koz)
Shaded area: Potential ozs from discovered resources not converted to reserves already on the mining permit
0
0.5
1
1.5
2
2.5
3
3.5
4
0
20
40
60
80
100
120
140
1 2 3 4 5 6 7 8 9 10 11 12
Ounces(Koz)
*
Phased exploration to deliver increase in LOM and Reserves
7
R e s o u r c e s :5 0 6 k o z @ 2 . 4 4 g / tR e s e r v e s :2 3 9 K o z @ 3 . 0 6 g / t
R e s o u r c e s :8 0 9 k o z @ 3 . 0 3 g / tR e s e r v e s :4 7 1 K o z @ 3 . 1 8 g / t
K O M A N A E A S T P I T
C U R R E N T G O L D I N V E N T O R Y
C a t e g o r y T o n n e s ( t ) G r a d e ( g / t ) G o l d ( o z )
P r o b a b l e R e s e r v e s 7 , 0 3 9 , 0 0 0 3 . 1 4 7 0 9 , 8 0 0
T o t a l I n v e n t o r y * 2 8 , 4 9 5 , 0 0 0 2 . 4 0 2 , 2 0 2 , 7 0 0
*Including non-JORC compliant figures
KOMANA EAST & WEST RESERVES & RESOURCES
K O M A N A W E S T P I T
H U M M I N G B I R D Q 2 2 0 1 8
8
Q 2 O R E P R O C E S S E D
2 8 7 , 6 0 5 T o n n e s
9 5 . 2 % Q 2 R E C O V E R Y
S I M P L E G R A V I T Y &
C I L P R O C E S S I N G
R O U T E
SIMPLE PROCESS ROUTE
H U M M I N G B I R D Q 2 2 0 1 8
YANFOLILA MINE LIFE UPSIDE
H U M M I N G B I R D Q 2 2 0 1 8 9
US$8m+ budget ( l imited to 15% FCF) targeting LoM extensions in the near-term
1.5Moz of Indicated and Inferred Resources outside the current mine plan
2018 Exploration Programme targeting+50,000m drilling at 6 deposits to convert additional 400,000ozs to Reserves
1. Gonka: High grade Inferred deposit situated 5km from the plant. Higher grade has potential to increase annual production rates
2. Komana East: Currently being mined as an open pit. Has significant underground (‘UG’) potential not currently in Reserves
3. Komana West: Due to be mined from Q3 2018, also with significant UG potential not currently in Reserves
4. Guirin West: situated 2km from the plant with high grade Oxide Resources 5. Sanioumale East: Currently only Oxide material in the phase 2 mine plan.
Requires additional drilling to bring Fresh Rock into the plan6. Sanioumale West: as above
A detailed presentation on this subject can be found at hummingbirdresources.co.uk/operations/mali-exploration/
Guirin West
H U M M I N G B I R D Q 2 2 0 1 8 10
385,198oz Au
at Inferred
166,086oz Au
mined over years
77,424oz Au
underground at
91,662oz Au
in open pit at
160m
+-600m
POTENTIAL TO ADD US$24 MILLION TO NPV @ US$1,250 GOLD PRICE
Scoping St udy leve l report completed wi t h robust economics
Results not inc luded in DFS mine p lan
Potent ia l to expand p lant to 1 .5Mt pa wit h addit ional C IL tanks
Depos it i s open on st r ike and at depth
GONKA: HIGH GRADE UPSIDE FOR YANFOLILA
DUGBE GOLD PROJECT: LIBERIA
H U M M I N G B I R D Q 2 2 0 1 8 11
D F S c u r r e n t l y u n d e r o p t i m i s a t i o n : R e v i e w i n g c o n v e r t i n g M & I
R e s o u r c e s b e y o n d T u z o n M o d e l l i n g i m p r o v e d c a s h
f l o w s b y s c h e d u l i n g l o w s t r i p , s h a l l o w o r e f r o m o t h e r d e p o s i t s n o t c u r r e n t l y i n M & I
H y d r o - E l e c t r i c P F S c o m p l e t e d d e m o n s t r a t i n g p o t e n t i a l t o l o w e r p o w e r c o s t s
L iber ia ’s la rgest go ld deposi t – 4.2Moz Au
Located 40 mi les by road f rom G reenvi l le deep water por t
PEA (2013) showed attract ive economics at cur rent go ld pr i ces
Ant ic ipated 125,000oz Au per annum
20 year L i fe of Mine
OPTIONALITY AND SCALE TO DRIVE PORTFOLIO GROWTH
US$186MNPV @ US$1,300 Au
IRR
CORA GOLD INVESTMENT
H U M M I N G B I R D Q 2 2 0 1 8 12
Sananko r o go l d d i scove ry : poten t i a l for a 1Moz+ standal o ne m i ne devel op m en t
Stage 1 dr i l l i n g compl e t e at Sananko r o go l d d i scove r y wi th ex c i t i n g new targets i dent i f i e d and ex treme l y encour a g i ng h i gh -
grade go l d i nter c ep t s
Recent dr i l l i n g at Tekel ed ou g o u has produ c e d two new gol d zones wi th shal l ow, broad, h i gh -g ra d e go l d i nterc e p ts
Wi th i n t ruck i ng d i s tanc e f rom Yanfo l i l a
HUMMINGBIRD HAS A 34% STAKE IN CORA GOLD (AIM: CORA)
17m @ 11m @
H i g h g ra d e S a n a n ko ro
US$10MH i s t o r i c a l e x p e n d i t u re
b y G o l d F i e l d s
56m @ 17m @ 60m @
H i g h g ra d e Te ke l e d o u g o u8 k m f ro m Ya n f o l i l a
PEER COMPARISON
H U M M I N G B I R D Q 2 2 0 1 8 13
UNDERVALUED AGAINST PEERS
Source: Thomson Reuters and Canaccord Genuity LimitedNote: prices as at 2 May 2018
CORPORATE INFORMATION
H U M M I N G B I R D Q 2 2 0 1 8 14
0%1%2%3%4%5%6%7%8%9%
L A R G E S T S H A R E H O L D E R S
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
B R O K E R C O V E R A G E
STRONG INSTITUTIONAL REGISTER & GROWING BROKER COVERAGE
A L I G N R E S E A R C H
SUMMARY
H U M M I N G B I R D Q 2 2 0 1 8 15
PRODUCTION
EXPANSION AT YANFOLILA
CORPORATE GROWTH
• 2 0 1 8 G U I D A N C E O F 1 0 5 - 1 1 5 KOZ• LO W - C O ST P R O D U C T I O N
• E X PA N S I O N F R O M G O N K A D E P O S I T• P OT E N T I A L TO I N C R E A S E P R O D U C T I O N• S I G N I F I C A N T L I F E O F M I N E E X T E N S I O N P OT E N T I A L
• W I D E R YA N F O L I L A A S S E S S M E N T A N D D E V E LO P M E N T• C O R A G O L D P O R T F O L I O• 4 . 2 M OZ D U G B E G O L D P R O J E C T L I B E R I A
• U S $ 7 0 M I L L I O N F R E E C A S H F LO W I N F I R S T F U L L Y E A R O F P R O D U C T I O N
• S T R O N G I N S T I T U T I O N A L S H A R E H O L D E R B A S E I N C LU D I N G C A P I TA L , O D E Y, F I D E L I T Y A N D M A J E D I E
• C O M B I N E D P R O J E C T N P V S O F > U S $ 6 0 0 M AT U S $ 1 , 3 5 0 G O L D P R I C E A N D 8 % D I S C O U N T R AT E
• M & A G R O W T H O P P O R T U N I T I E S
EXPLORATION & DEVELOPMENT
APPENDIX
CORPORATE & SOCIAL RESPONSIBILITY
175 + meetings held with local communities, authorities and stakeholders
Funding salaries of 20 local teachers
Market gardens established to create alternative livelihoods and generatean income for local women - ability to employ 50+ people per garden
Soap-making enterprise established to benefit 10 communities and 300women
Investment in initiatives to provide clean drinking water
Investment in programmes for local nurses to receive training fromqualified doctors
Installation of solar panels and units to three local health centres inYallonkoro-Soloba
Pygmy Hippo Foundation is working with local communities to promotethe conservation, preservation and protection of the pygmy hippo andother endangered species
H U M M I N G B I R D Q 2 2 0 1 8 17
MAKING A LASTING & SUSTAINABLE CONTRIBUTION TO THE SOCIAL, ENVIRONMENTAL AND ECONOMIC WELLBEING OF LOCAL COMMUNITIES IN MALI & LIBERIA
BOARD
H U M M I N G B I R D Q 2 2 0 1 8 18
• Senior Independent Non-Exec of Aggreko Plc
• Former Chief Strategy Officer at Anglo American & member of the Executive Committee for 8 years
• 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
• Former Senior Manager within BDO LLP’s natural resources department
• Metallurgy, Economics & Management Oxford university graduate
• 12 years’ experience in the resource sector
Russel l K ingNon -Execut ive Cha i rman
Daniel BettsCEO
Thomas H i l lF inance D i rector
• 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
Stephen BettsNon -Execut ive D i rector
Att ie RouxNon -Execut ive D i rector
• 42 years operational , technical and executive experience
• Former COO of Endeavour Mining
• Chairman of the TAC
Er n ie NutterNon -Execut ive D i rector
• 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, CrossBorder Capital Ltd
• Director of New Vision Management Ltd and Nomad Energy UK Ltd
• Former positions at ING Barings Securities Ltd and Gerrard & National Holdings Plc
David St raker -Smith Non -Execut ive D i rector
THE “HUMMINGBIRD 1OZ” COINS
H U M M I N G B I R D Q 2 2 0 1 8 19
Col lectable co ins represent ing HUM's industr y, jour ney and company va lues : Exp lore; Deve lop; Mine; Produce; Community ; and Conser ve
Pr iced based on t he spot go ld pr i ce at t he t ime of purchase
To be minted at Betts Metals , HUM CEO Dan Bett s ’ fami ly 260 year o ld gold ref in ing and t rading company in B i r mingham
A COLLECTION OF SINGLE MINE ORIGIN PURE GOLD COINS, ORIGINATING FROM YANFOLILA, ON SALE 2018
1oz pure gold coin
On sale at:www.bettsinvestments.co.uk
INVESTING IN THE FUTURE
H U M M I N G B I R D Q 2 2 0 1 8 20
NEAR TERM GROWTH POTENTIAL ONCE OPEN -PIT IS COMPLETE
US$8m (15% FCF) committed to exploration in 2018
CONTACTS
21
HUM_GOLD
#HUM
AIM:HUM
D a n B e t t s C E O
2 6 M o u n t R o w, L o n d o n , W 1 K 3 S Q
www.hummingbirdresources.co.uk
C A M A R C OG o r d o n P o o l e / O w e n R o b e r t s+ 4 4 ( 0 ) 2 0 3 7 8 1 8 3 3 4
To m H i l lF i n a n c e D i r e c t o r
B e r t M o n r oH e a d o f B u s i n e s s D e v e l o p m e n t
T. + 4 4 ( 0 ) 2 0 7 4 0 9 6 6 6 0
H U M M I N G B I R D R E S O U R C E S P L C
C A N A C C O R D G E N U I T YM a r t i n D a v i s o n+ 4 4 ( 0 ) 2 0 7 5 2 3 8 0 0 0
S T R A N D H A N S O NJ a m e s S p i n n e y / R i t c h i e B a l m e r+ 4 4 ( 0 ) 2 0 7 4 0 9 3 4 9 4
B R O K E R
F I N A N C I A L P R / I R
H U M M I N G B I R D Q 2 2 0 1 8
N O M A D