Hummingbird Resources PLC's (LON:HUM) Yanfolila gold mine in Mali is on track and budget with first gold still expected at the end of 2017.
Broker Cantor Fitzgerald said that first concrete for the foundations is expected to be poured in October.
Discussions are underway for the US$35mln loan the broker estimates it needs to complete the construction, but the junior currently plenty of cash in the bank and Cantor kept a ‘buy’ recommendation and 32p target price.
Hummingbird itself anticipates production of 132,000oz gold in its first full year of production, which would deliver around US$70mln of free cash flow at the current gold price.
In addition, Hummingbird has the Dugbe project in Liberia with a resource of 4.2mln oz.
Losses in the half year to June were US$2.75mln (US$1.88mln).