Metals & Mining, Oil & Gas
INTRODUCTION
In the news: Hummingbird Resources (LON:HUM)
We’d just like to remind readers about our initiation on Hummingbird Resources*†. Jim Taylor and Imogen Whiteside launched coverage last week with a BUY rating and a target price of 45p: Hummingbird Resources — Redefining the Upside, 15 October 2015. Our valuation suggests that, in a base case, the Yanfolila Project in Mali more than underpins the current share price, and that the potential to add mineable material at the project and the considerable optionality at Dugbe in Liberia are not currently being given any value by the market.
Key catalysts include the completion of funding and resource additions. We believe that key catalysts for the share price include: satisfaction of the outstanding conditions precedent for Yanfolila development financing draw-down, which the company aims to achieve by the end of the year; and the likely additions to mineable resources at the project. We also believe that a re-scoping exercise for Dugbe, comprising both the Tuzon and Dugbe F deposits, has the potential to outline a deliverable project. Jim is available for calls or one-on-one meetings to discuss this note.