Losses widen for gold exploration firm
LOSSES have widened for Birmingham-registered gold exploration company, Hummingbird Resources.
For the full year to December 31, 2015 the company lost $4.563m, which compares with a loss of $3.382m for the previous year.
The company is currently ploughing resources into the development of the Yanfolila gold mine project in Mali, while continuing to make progress on the Dugbe gold project in Liberia.
Such are the prospects, that Hummingbird raised $4.5m through a placing and open offer for Yanfolila last March, which was bolstered by a $6.3m placing in June.
Investment partner Taurus also agreed to extend its bridge facility with the firm by $5m to $15m for continued development work. Earlier this year, Taurus agreed to extend the term of the bridge facility until September 8, 2016.
By the end of last year, Hummingbird had $7m in cash.
While shareholders are investing for the long-term potential of the business, CEO Dan Betts has been forced to admit his frustration at the rate of progress.
In the firm’s full year results statement, he said: “We are extremely proud of the strides we have made this year on the ground, but as significant shareholders we remain frustrated that the value of our endeavour is yet to be fully realised.
“The macro markets which ultimately govern the value of the sector are highly cyclical and we are building a company that will be in the top quartile in terms of the quality of its assets and its delivery, and so best suited to take advantages of changes in the tide.”
On a more positive note, he said that with the vastly improved economics on the back of an Optimised Mine Plan, issued in February this year, the company was now “in a far stronger position to gain the best possible financing package” for the Yanfolila project.
“We are currently working through these options and hope to be updating the market on our progress in the near future,” he added.
Summing up, he said: “A lot of hard work will be needed to turn Hummingbird into a gold producing company in the near-term and we are ready and excited for the challenge ahead.
“So far we have managed to significantly grow our resources and improve our technical studies, as well as successfully recruit the talent to bolster our world-class team to turn Hummingbird Resources from an explorer into a developer.
“During the development phase we will continue to recruit for the future as we transform into a producer. Although the market has produced a gloomy backdrop we believe that Hummingbird is well positioned to develop into a high margin gold producer.”
