Financial picture improves for Birmingham gold firm Hummingbird

BIRMINGHAM-registered gold exploration firm, Hummingbird Resources, has seen half year losses decline as it continues to be optimistic about its long-term prospects.

In its interim results for the six months ended November 30, 2013 the firm, which operates in Liberia, made a pre-tax loss of £1,467,000 (2012: £1,509,000).

However, positive drilling results and a successful £1.1m share placing has seen the company remain upbeat about its future.

Dan Betts, chief executive of Hummingbird Resources, said: “With the DFS (Detailed Feasibility Study) well advanced, and the company being fully funded through to its completion, Hummingbird made significant steps in the second half of 2013.  

“The appointment of MDM as lead engineering consultant and Endeavour Financial to assist in arranging project finance are both significant appointments as the company remains on track to deliver first production from its Dugbe 1 Project.”

He said that following the selection of MDM as lead consultant and further key appointments, the company’s DFS and FEED (Front End Engineering Design) remained on schedule for delivery in Q3 2014.

“Good progress has been made including a number of enhancements from the PEA (Preliminary Economic Assessment) such as lower strip ratios and the accessing of higher grade zones which will result in stronger project economics,” he added.

Financial Highlights for the six-month period saw the company accumulate $8.5m in cash, helped by the £1.1m share placing with Canadian asset manager Sprott Inc, based at a price of 41p per share.

“They (Sprott) have a long track record of successful investments in the natural resources sector and their investment is a further endorsement of the Dugbe 1 Project,” said the firm.

The award of a South African DTI grant is also expected to significantly reduce the company’s operating costs.

The firm said last month it bullish about its prospects for the year ahead, with Betts claiming 2014 looked set to be a “step change year” for the business.