Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Hummingbird boosts Yanfolila, rolls over debt

Hummingbird has added more gold ounces at Yanfolila with a view to extending the mine life significantly
Hummingbird boosts Yanfolila, rolls over debt
Earthworks at Yanfolila

Like many in London’s mining and mining finance community, Hummingbird’s (LON:HUM) Bert Monro will be off to Indaba in a couple of days’ time.

What the mood will be like remains an open question, given the rather subdued air at London’s own premier event, the December Mines & Money Conference held in Islington.

But there are several reasons why Indaba could prove a more upbeat experience for Bert.

The principal one is that the gold price has been ticking up since December, fuelled by new jitters about the global economy.

And Hummingbird has lots of gold, contained in a suite of assets across West Africa.

What’s more, the gold inventory has just been given a significant boost with the addition of a further 169,000 ounces of gold at the Yanfolila deposit in Mali.

Will that whet investors’ appetites at Indaba?

Quite possibly.

“We always said Yanfolila was going to expand,” says Monro.

The thinking is that over time the project might eventually a deliver a mining reserve that will allow the seven year mine life to be significantly boosted.

Along the way though, the company will need to secure the necessary finance to get Yanfolila built.

On that score Hummingbird’s main backer, Taurus Funds Management, has just agreed to roll over the company’s US$15mln bridge facility until 8th March 2016.

Back in 2014, Taurus agreed to provide Hummingbird with an initial bridge, to be followed later by a full US$75mln financing package.

The bridge facility was secured against shares in the local subsidiary of Hummingbird, which owns Yanfolila, and carried a 9% coupon.

That the line of funding is still open is a good sign, although Monro refuses to be drawn as to the precise stage at which negotiations are.

“You could understand why anyone putting money into a gold project would want to run a keen eye over it,” he says.

In the meantime though, Hummingbird will get on with ongoing work to get costs down.

“We can’t affect the gold price,” says Monro. “But we can affect our operating costs. And we believe Yanfolila will continue to get better and better.”

View full HUM profile View Profile

Hummingbird Resources plc Timeline

Related Articles

picture of drill rig
August 15 2017
“The funds raised should allow the company to swiftly commence resource definition drilling in our high potential Anzá gold project"
gold bars
September 18 2017
Shanta Gold's recent production ramp-up in Tanzania is unlikely to be derailed by the current uncertainty there
molten gold being poured
October 20 2017
Pan African hopes to be in production at Elikhulu in the final quarter of next year.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use