introduction - mine africa - hummingbird... · introduction 1 founded in 2005 6moz gold, 5,000km2...
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Introduction
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Founded in 2005
6Moz Gold, 5,000km2 land
AIM Listed December 2010
2 Major Development Projects
First Production due in 2015
Assets in Mali and Liberia
Consistent growth: Proven track record in West Africa • Discovered 4.2Moz Au within 4 years in Liberia
• Acquired Yanfolila Project in Mali for US$20m in shares at 56p/share @ $11/oz
• US$75m debt financing secured to fund Project with Taurus Funds Management
• US$10m Bridge facility drawn to fund optimisation studies at Yanfolila
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Dugbe resource at AIM Admission
(Dec 2010)
Resource increase at Dugbe
(Sep 2011)
Maiden resource at Tuzon
(Feb 2012)
Updated resource at Tuzon
(Nov 2013)
Tuzon resource increase
(Mar 2014)
Yanfolila acquisition (May 2014)
Hummingbird - Repositioned
0.8 0.9
2.1 (0.5) 0.9
1.8 6.0
Sour
ce: C
ompa
ny an
alysis
* * Change of independent resource consultant
Total
gold
(Moz
)
Source : Intierra and company websites
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Corporate strategy: Making up ground in a difficult market
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• Acted to diversify to get into cash flow as quickly as
possible with a high-grade, low-cost project -
Yanfolila
• Yanfolila acquisition enables the Company to
optimise Dugbe 1 DFS
• Dugbe 1 remains a Company making deposit
• Continue to look for opportunities that will add
significant value to the Company
Yanfolila – Overview
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• Acquired all Gold Fields Mali assets in July 2014
• The Yanfolila Project:
o currently has 1.8Moz gold across multiple high
grade pits
o average grade 2.8g/t
o is fully permitted
o US$100m expenditure pre-HUM
Provides Hummingbird with rapid, low cost, low technical risk, route to production
Yanfolila – Optimisation
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• SENET currently optimising the Gold Fields de-risking study:
o Right sizing the Project to current gold price
environment
o Initially processing only oxide and transitional
material
o Lower capex and opex
• Optimisation to be completed by end 2014
• Construction to start Q1 2015
2014 Infill Drill Data includes; • 19m @ 2.29g/t • 15m @ 2.73g/t • 12m @ 5.12g/t • 11m @ 8.67g/t • 3m @ 41.5g/t • 2m @ 20.52g/t
Yanfolila – Advancing to production
Resilient project with robust economics – gold price sensitivities
Gold Price (US$) IRR (post tax)
1,000 34%
1,250 53% 1,500 69%
Resources2 Category Tonnes (t) Grade (g/t)3 Gold (oz) Measured - - Indicated 8,188,100 3.3 870,400 Inferred 11,910,000 2.5 947,000 Total 20,098,100 2.8 1,817,000
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• Fully funded through construction with a two phase debt facility signed with Taurus Funds Management
o US$10m Bridge Facility drawn down
o US$75m debt financing package takes out the bridge facility and funds construction
First production targeted by end 2015
o First year production of over 80,000oz
o All-in sustaining costs of US$700/oz
o Capex US$52m
o IRR 53% at US$1,250 gold
Yanfolila – The economics Yanfolila Project Base case
Gold Price (US$) $1,250
Initial production 81,000 ozs
Initial mine life 6 years
Capex (US$) $52m
Life of Mine Capex (US$) $71m
Average Recovery 95.5%
Annual Processing 850 ktpa
Payback (after tax) < 2 yrs
Direct C1 cash operating costs (US$/oz) $503
All in sustaining costs (US$/oz) $700
After tax NPV (8%) (HUM Share) (US$) $65.5
After tax IRR 53%
* Based on existing GF defined oxide resources with initial internal HUM estimates based on re-scoped project from GF studies
Source : Company estimates
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Dugbe 1– Overview
• First movers into Liberia in 2005
o Discovered 4.2Moz gold
o Acreage of 3,000km2
o 40 miles by road from
Greenville Port
o 20 yr. mine life
o Large exploration upside
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Dugbe 1 – Resource • 2Moz Indicated at 1.5g/t at Tuzon
• 2 deposits 2.6km apart
• Shallow dipping ore bodies
• LoM strip ratio of 4:1
• Additional discovery already drilled
at Sackor
PEA • Resources total 4.2Moz over 2 deposits • Positive PEA in varying gold price environment:
- at $1,300 gold has an IRR of 29% and an NPV (10%) of $186m • 20 year mine life, 125,000oz/year production DFS • Currently under optimisation
• Bringing Dugbe F ore in earlier in mine life • Since PEA:
• grade up 15% on conversion to Indicated • Metallurgical recovery up 2% to 90% recovery • Power costs are down around 30% • ESIA baseline studies completed
Dugbe 1: Study status
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Dugbe 1 – Optimising the DFS
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• Yanfolila acquisition allows the time to re-asses the Dugbe 1 Project in order to maximise the economics: o Expand scope of resources within the DFS beyond Tuzon o Improved resource modeling and mine scheduling has demonstrated opportunities to
improve cash flows by scheduling in low strip shallow ore from other deposits o Targeting ore from Dugbe F deposit within first 10 years mine life with the aim of improving
the economics of the Dugbe 1 Project o Ongoing work on metallurgy and power o Focusing on Yanfolila for near term cash flow allows time for this work
• DFS optimisation work is ongoing and is expected to be completed during 2015
Mali: Longer term exploration upside • 2,300km2 exploration acreage • Multiple greenfield and brownfield exploration targets
including:
Kabaya South • 1km of 7km strike tested • 95,000 ozs Resource at 1.3g/t • Significant Resource growth potential • Potential Heap Leach operation
Further exploration targets with known gold anomalies • Badogo Malikila • Sanioumale West • Gonka
Kangare Project • One known deposit and five target areas • 16,056m drilling inc. 24m @ 3.29g/t from 16m depth
Mali Licence Map
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• Over 140 exploration targets discovered across the Dugbe Shear Zone following the airborne survey
• Identifying resource drill targets across the Dugbe Shear Zone part of Hummingbird’s plan
• Completion of sterilisation drilling of the Dugbe 1 Project Area
• Re-processing priority 1 targets to 1:10,000 for greater clarity
Liberia: Exploration potential
• Positive exploration soil results leading to follow up work around Dugbe 1 Project
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Strong Management Team
• Dan Betts, CEO, co-founded Hummingbird in 2005, over
12 years precious metals experience
• Technical Advisory Committee formed in 2013; includes
Mark Calderwood ex CEO Perseus Mining
Corporate Information Top shareholders: Gold Fields Dundee Corporation Management Mark Hillery Capital Research Sprott IFC
25.1% 9.8% 9.8% 8.1% 6.0% 7.2% 3.5%
Capitalisation Overview
Market Capitalisation (22 October 14) £33.6m
Closing Price (22 October 14) 39.5p
52 Week Low (21 January 14) 33.0p
52 Week High (14 March 14) 64.5p
Shares Basic 84.6m
Shares Fully Diluted 91.6m
Funding (22 October 14) US$13m
Debt (18 Month Bridge) US$10m
Corporate Overview
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Ian Cockerill Non-Executive Chairman § Ex-CEO of Gold Fields Ltd, Anglo Coal Ltd and Ex-Executive
Officer Business Development and African Operations at AngloGold Ltd § Non-Executive Director of Endeavour Mining § Senior Lead Non-Executive Director of Ivanhoe Mines Ltd and
Vice-Chairman of African Minerals Ltd § Over 40 years in exploration and mining
David Pelham Non-Executive Director § Minerals Geologist with 30 years § Blue-chip clients including Cluff Gold plc,
Outokumpu & AMAX Exploration
§ Credited with discovery of 800Mt Coal deposit in Venezuela & 5-6Moz Chirano gold mine in Ghana now owned by Kinross
Daniel Betts Managing Director § Co-Founded Hummingbird in November 2005 § Formerly Management Consultant with
Accenture in 2000 § 10 years experience in precious metals
industry with dealings in developing countries such as Uganda, Sierra Leone, Peru & Mauritania
William Cook Operations Director § Formerly an officer in the British army
including duty in West Africa § Many years experience in security, operations
and logistics § Responsible for establishing operations in
Liberia, as well as more recently for the general oversight of the DFS and ESIA
Matthew Idiens Non-Executive Director § Co-Founded Hummingbird in November
2005. § CEO and founder of AIM quoted Rose
Petroleum plc and founder of several natural resources companies, including Seamwell International (UCG in China)
§ 21 years experience in the resource sector
Thomas Hill Finance Director § Former senior manager within BDO LLP’s
natural resources department § Metallurgy, economics & management
degree from Trinity College, Oxford § 10 years experience in the resource sector
Stephens Betts Non-Executive Director § Co-Founded Hummingbird in November 2005 § 40 years experience in trading with gold related
businesses in developing countries § Chairman of Stephen Betts group – family
business with a 250 year history of gold smelting, refining and bullion dealings
Hummingbird – Experienced Board
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Investment summary
• Combined total gold resources of 6Moz, well understood regional geology with excellent grade & recoveries
• Near term production in 2015 at Yanfolila creates opportunities to optimise development of Dugbe 1
• Yanfolila scalability – multiple shallow oxide pits allow low-capex phased production
• Exploration upside – 5,000km2 with LOM extension opportunity at Yanfolila
• Strategy to exploit market opportunities to create value for shareholders
• Dugbe 1 Project – 4.2Moz resource, DFS under optimisation into 2015
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• Yanfolila provides a rapid, low cost, low technical risk, route to production
DAN BETTS Chief Executive Officer TOM HILL Finance Director BERT MONRO Head of Business Development Head Office: +44 (0) 203 416 3560 ¢ CANTOR FITZGERALD EUROPE: Stewart Dickson / Patrick Pittaway / Jeremy Stephenson / Carrie Lun +44 (0) 207 894 7000
¢ FTI CONSULTING: Ben Brewerton / Oliver Winters / Sara Powell / Emerson Clarke +44 (0) 203 727 1000 [email protected]
¢ HUMMINGBIRD RESOURCES PLC: 22 Mount Row, London W1K 3SF, UK
Contacts
www.hummingbirdresources.co.uk [email protected]
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