Interim Results

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

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

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. 

 

 

 


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