Hummingbird Resources PLC — Interim / Quarterly Report 2017

Sep 27, 2017

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RNS Number : 8919R

Hummingbird Resources PLC

27 September 2017

Hummingbird Resources Plc / Ticker: HUM / Index: AIM / Sector: Mining

Hummingbird Resources Plc ("Hummingbird" or the "Company" or the "Group")

Interim Results

Hummingbird Resources Plc, announces its unaudited financial results for the six months ended 30 June 2017.

OPERATIONAL HIGHLIGHTS

·     Development of the Yanfolila Gold Project in Mali ("Yanfolila" or the "Project") progressed on schedule and on budget ahead of the expected first gold pour by end of 2017

·     Commencement of pre-production mining post period end by the contract miner, African Mining Services ("AMS")

·     Arrival of ball mill to site - significant milestone achieved in mine development which de-risks the delivery of Yanfolila's critical path

·     Post-period the ball mill shell has been successfully installed

CORPORATE HIGHLIGHTS

·     Increased ownership in the Project to 80% from 75% following the Company's acquisition from La Petite Mine d'Or SARL ("LPMDO") of its 5% interest in the Project for US$1 million

·     Hummingbird also successfully negotiated the acquisition of the 1% royalty LPMDO had over the Project for a further US$1 million

o  Total consideration of US$2 million to be paid in shares to be issued by 31 March 2018

·     The Government of Mali agreed to increase its shareholding in the Project from 10% to 20% by investing approx. US$11m as announced on 13th June 2017

·     The Company disposed of its subsidiaries Sankarani Resources SARL and Hummingbird Exploration Mali SARL, containing non-core exploration permits, in exchange for 50% of the issued share capital of Cora Gold Limited

o  Cora is currently in the process of completing an IPO onto AIM

·     US$60 million debt facility entered into with Coris Bank International Group in April 2017 and now fully drawn down

·     Post-period cash balance on 1 September was approximately US$60 million

The interim results have also been made available on the Company's website.

Corporate Consolidated Income Statement

For the six months ended 30 June 2017

		Unaudited six months  ended 30 June	Unaudited six months  ended 30 June	Audited year ended 31 December
		2017	2016	2016
	Note	$'000	$'000	$'000
Continuing operations
Revenue		-	-	-
Share based payments		(210)	(337)	(505)
Other administrative expenses		(3,503)	(2,107)	(7,114)
Administrative expenses		(3,713)	(2,444)	(7,619)
Finance income		1,556	99	668
Finance expense		(457)	(402)	(1,491)
Loss before tax		(2,614)	(2,747)	(8,442)
Tax		-	-	-
Loss for the period/year attributable to equity holders of the parent		(2,614)	(2,747)	(8,442)
Loss per ordinary share
Basic and diluted (US$ cents)	3	(0.76)	(2.53)	(3.60)

There was no other comprehensive income in the current or prior periods.

Consolidated Balance Sheet

As at 30 June 2017

		Unaudited 30 June	Unaudited 30 June	Audited 31  December
		2017	2016	2016
	Note	$'000	$'000	$'000
Assets
Non-current assets
Intangible exploration and evaluation assets		60,989	62,729	63,137
Intangible assets software		171	-	-
Property, plant and equipment		75,036	39,884	51,091
Investments in associate		2,711	-	-
		138,907	102,613	114,228
Current assets
Trade and other receivables		24,796	23,326	9,460
Cash and cash equivalents		71,006	50,953	53,839
		95,802	74,279	63,299
Total assets		234,709	176,892	177,527
Liabilities
Current liabilities
Trade and other payables		(11,786)	(6,449)	(10,856)
Other financial liabilities		(15,967)	(30,788)	(15,510)
Borrowings		(1,309)	-	(14,751)
Total current liabilities		(29,062)	(37, 237)	(41,117)
Non-current liabilities
Borrowings		(58,361)	-	-
Total liabilities		(87,423)	(37,237)	(41,117)
Net assets		147,286	139,655	136,410

Equity
Share capital	4	5,156	5,013	5,156
Share premium		148,516	146,551	148,516
Shares to be issued		2,000	-	-
Retained earnings		(19,235)	(11,909)	(17,262)
Equity attributable to equity holders of the parent		136,437	139,655	136,410
Non-controlling interest		10,849	-	-
Total equity		147,286	139,655	136,410

Consolidated Statement of Cash Flows

For the six months ended 30 June 2017

		Unaudited six months ended 30 June	Unaudited six months ended 30 June	Audited year ended 31   December
		2017	2016	2016
		$'000	$'000	$'000
Operating activities
Loss before tax		(2,614)	(2,747)	(8,442)
Adjustments for:
Finance income		(1,556)	(99)	(668)
Finance expense		457	402	1,491
Depreciation of property, plant and equipment		6	4	8
Share based payments		210	337	505
Operating cash flows before movements in working capital		(3,497)	(2,103)	(7,106)
Increase in receivables		(974)	(322)	(329)
(Decrease) / Increase in payables		(565)	46	1,064
Net cash outflow from operating activities		(5,036)	(2,379)	(6,371)
Investing activities
Purchases of intangible exploration and evaluation assets		(350)	(522)	(973)
Purchases of intangible software assets		(176)	-	-
Purchases of property, plant and equipment		(21,855)	(953)	(9,718)
Purchases of shares in investments		(242)	-	-
Interest received		196	25	160
Net cash used in investing activities		(22,427)	(1,450)	(10,531)
Financing activities
Net proceeds from issue of shares		-	48,664	66,315
Loan interest paid		(934)	(700)	(1,303)
Financial liabilities issued net of issue costs		69,257	-	-
Financial liabilities repaid		(25,000)	-	-
Net cash from financing activities		43,323	47,964	65,012
Net Increase in cash and cash equivalents		15,860	44,135	48,110
Effect of foreign exchange rate changes		1,307	(402)	(1,491)
Cash and cash equivalents at beginning of period/year		53,839	7,220	7,220
Cash and cash equivalents at end of period/year		71,006	50,953	53,839

Consolidated Statement of Changes in Equity

For the six months ended 30 June 2017

	Share capital $'000	Share premium $'000	Shares to be issued $'000	Retained earnings $'000	Total equity attributable to the parent $'000	Non-controlling interest $'000	Total equity $'000
For the six months ended 30 June 2016
As at 1 January 2016	1,723	81,428	-	(9,499)	73,652	-	73,652
Issue of shares	3,290	65,123	-	-	68,413	-	68,413
Share based payments	-	-	-	337	337	-	337
Total comprehensive loss for the period	-	-	-	(2,747)	(2,747)	-	(2,747)
As at 30 June 2016	5,013	146,551	-	(11,909)	139,655	-	139,655
For the year ended 31 December 2016
As at 1 January 2016	1,723	81,428	-	(9,499)	73,652	-	73,652
Issue of shares	3,433	67,088	-	-	70,521	-	70,521
Share based payments	-	-	-	679	679	-	679
Total comprehensive loss for the period	-	-	-	(8,442)	(8,442)	-	(8,442)
As at 31 December 2016	5,156	148,516	-	(17,262)	136,410	-	136,410
For the six months ended 30 June 2017
As at 1 January 2017	5,156	148,516	-	(17,262)	136,410	-	136,410
Shares to be issued in parent company	-	-	2,000	-	2,000	-	2,000
Shares to be issued in subsidiary	-	-	-	-	-	10,849	10,849
Share based payments	-	-	-	641	641	-	641
Total comprehensive loss for the year	-	-	-	(2,614)	(2,614)	-	(2,614)
As at 30 June 2017	5,156	148,516	2,000	(19,235)	136,437	10,849	147,286

Notes to the interim results

For the six months ended 30 June 2017

1          General information

Hummingbird Resources plc (the 'Company'), was incorporated in England and Wales under the Companies Act. The address of the registered office is 49-63 Spencer Street, Hockley, Birmingham, West Midlands, B18 6DE.

The nature of the Group's operations and its principal activities is the exploration, evaluation and development of mineral projects, principally gold, focused primarily in West Africa.

2          Basis of preparation

The consolidated interim financial information has been prepared using policies based on International Financial Reporting Standards issued by the International Accounting Standards Board ("IASB") as adopted by the European Union, which are expected to be applied in the Group's financial statements for the period ended 31 December 2017.

The consolidated interim financial information for the period 1 January 2017 to 30 June 2017 is unaudited, does not include all the information required for full financial statements and should be read in conjunction with the Group's consolidated financial statements for the year ended 31 December 2016.  In the opinion of the Directors the consolidated interim financial information for the period represents fairly the financial position, results from operation and cash flows for the period in conformity with generally accepted accounting principles consistently applied. The consolidated interim financial information incorporates comparative figures for the interim period 1 January 2016 to 30 June 2016 and the audited financial year to 31 December 2016.  As permitted, the Group has chosen not to adopt IAS34 'Interim Financial Reporting'.

The annual financial statements of Hummingbird Resources plc are prepared in accordance with International Financial Reporting Standards ('IFRSs') as issued by the International Accounting Standards Board ('IASB') and as adopted by the European Union.  The Group's consolidated annual financial statements for the year ended 31 December 2016, have been filed with the Registrar of Companies and are available on the Company's website www.hummingbirdresources.co.uk. The auditor's report on those financial statements was unqualified and did not contain a statement under sections 498(2) or (3) of the Companies Act 2006.

3          Loss per ordinary share

Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period/year.

Due to the losses incurred during the period a diluted loss per share has not been calculated as this would serve to reduce the basic loss per share. 

The calculation of the basic and diluted loss per share is based on the following data:

	Unaudited six months  ended 30 June 2017 $'000	Unaudited six months  ended 30 June 2016 $'000	Audited year ended 31  December 2016 $'000
Losses Loss for the purposes of basic loss per share being net loss attributable to equity holders of the parent	(2,614)	(2,747)	(8,442)
Number of shares	Number	Number	Number
Weighted average number of ordinary shares for the purposes of basic loss per share	343,241,250	108,625,519	234,603,288
	US$ cents	US$ cents	US$ cents
Loss per ordinary share
Basic and diluted (US$ cents)	(0.76)	(2.53)	(3.60)

4          Share capital

4.1         Issued equity share capital

		Unaudited 30 June 2017 Number	Unaudited 30 June 2016 Number	Audited 31 Dec 2016 Number
Issued and fully paid
Ordinary shares of £0.01 each		343,241,250	332,141,250	343,241,250
		Unaudited 30 June 2017 $'000	Unaudited 30 June 2016 $'000	Audited 31 Dec 2016 $'000
Issued and fully paid Ordinary shares of £0.01 each		5,156	5,013	5,156

4.2         Share options

At the 30 June 2017 there were 13,261,568 (Dec 2016: 13,443,386) share options outstanding.

4.3         Warrants

At the 30 June 2017 there were 9,899,505 (Dec 2016: 9,899,505) warrants outstanding.

Events after the reporting period

5.1 Exercise of warrants

On 11 September 2017, the Company announced the issue of 750,000 ordinary shares relating to a notice of exercise in respect of 750,000 warrants.  The Company issued the shares at the exercise price of 22p per share and received £165,000 in cash as consideration.  These newly issued shares bring the total number of voting rights in the Company to 343,991,250.

5.2 Additions to Hummingbird Incentive Plan - Performance Orientated ("HIPPO")

On 26 September 2017, the Company granted 727,272 options over ordinary shares in the Company to two group employees under the existing HIPPO scheme.

**ENDS**

For further information, please visit www.hummingbirdresources.co.uk or contact: 

Daniel Betts Thomas Hill Robert Monro	Hummingbird Resources plc	Tel: +44 (0)20 3416 3560
James Spinney Ritchie Balmer James Bellman	Strand Hanson Limited Nominated & Financial Adviser	Tel: +44 (0) 20 7409 3494
Jon Belliss	Beaufort Securities Limited Broker	Tel: +44 (0) 20 7382 8300
Lottie Brocklehurst Susie Geliher	St Brides Partners Ltd Financial PR/IR	Tel: +44 (0) 20 7236 1177

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

About Hummingbird Resources Plc

Notes to Editors

Hummingbird Resources (AIM: HUM) is building a leading gold production, development and exploration company.  The Company has two core gold projects, the near-term production Yanfolila Gold Project in Mali and the Dugbe Gold Project in Liberia.  It is currently building Yanfolila targeting first production by end of 2017, which has a Probable Reserve of 709,800oz @ 3.14g/t and total Resources of 1.8Moz of gold and an additional 390,700oz of non-compliant exploration potential.  The high-grade gold project has low operating costs of US$695/oz AISC with 132,000oz of first full year's production. 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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