Losses narrow for Birmingham gold mining business
Half year losses have narrowed for Birmingham-registered gold mining company, Hummingbird Resources.
For the six months to June 30, 2017, the company has recorded a pre-tax loss of $2.614m (H1 2016: $2.747m).
It has generated an income of $1.5m but as it has yet to declare any revenues, due to its gold mining operation in West Africa not being operational, then the figures are largely meaningless.
In its interim results statement, the company said its Yanfolila Gold Project in Mali was progressing to schedule – and budget – and is due to see its first gold pour by the end of 2017.
Since the end of the period, pre-production mining has begun by the contract miner, African Mining Services.
The arrival on site of a new ball mill is also deemed a significant milestone in the mine’s development and one which de-risks the delivery of the operation.
During the six-month period, Hummingbird has increased its ownership in the Project to 80% from 75% following the company’s acquisition from La Petite Mine d’Or (LPMDO) of its 5% interest in the mine project for $1m.
Hummingbird has also successfully negotiated the acquisition of the 1% royalty LPMDO had over the Project for a further $1m.
The government of Mali has also agreed to increase its shareholding in the Project from 10% to 20% by investing approximately $11m.
Hummingbird has also disposed of its subsidiaries Sankarani Resources and Hummingbird Exploration Mali, together with their non-core exploration permits, in exchange for 50% of the issued share capital of Cora Gold. Cora is currently in the process of completing an IPO for admission to the Alternative Investment Market (AIM).
The $60m debt facility entered into with Coris Bank International Group in April 2017 to fund the development of the mine is now fully drawn down.
Post-period, Hummingbird said its cash balance on September 1 was approximately $60m.
