CORPORATE PRESENTATION - August 2019 Corporate Presentation
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CORPORATE PRESENTATION
August 2019 Corporate Presentation
DISCLAIMER
These presentation slides have been prepared by, and are the sole responsibility of, the directors of Hummingbird Resources plc (“Hummingbird Resources” or the
“Company”). Those directors have taken all reasonable care to ensure that the facts stated herein are true to the best of their knowledge, information and belief. The
information in this document is subject to updating, revision and amendment. This document neither constitutes nor forms nor should be constructed as constituting or
forming part of any offer or invitation to sell or any solicitation of any offer to purchase or to subscribe for any securities in Hummingbird Resources or any other body
corporate or an invitation or inducement to engage in investment activity under section 21 of the UK Financial Services and Markets Act 2000 nor shall it or any part of
it form the basis of or be relied on in connection with any contract therefore. This document does not constitute an invitation to effect any transaction with
Hummingbird Resources nor to make use of any services provided by Hummingbird Resources. No reliance may be placed for any purpose whatsoever on the
information contained in this document nor on assumptions made as to its completeness. No representation or warranty, express or implied, is given by Hummingbird
Resources, any of its subsidiaries or any of its respective advisers, officers, employees or agents, as to the accuracy, fairness or completeness of the information or
opinions contained in this document or expressed in the presentation and, no liability is accepted for any such information or opinions (which should not be relied
upon) or for any loss howsoever arising, directly or indirectly, from any use of this document or its contents or information expressed in the presentation.
The information and opinions contained in this document and the presentation are provided as the date of this document and the presentation and are subject to
change without notice.
This presentation contains forward-looking statements that are based on Hummingbird Resources’ current expectations and estimates. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated
events or results implied or expressed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and
Hummingbird Resources disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or
otherwise. Forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be put on such statements due to the
inherent uncertainty therein.
2
A MULTI-ASSET AFRICAN GOLD PRODUCER
WITH STRATEGIC FRAMEWORK TO DELIVER VALUE & GROWTH
MALI
Bamako Office
• A producer with significant gold inventory of over 6Moz
across two projects in West Africa Yanfolila Gold Mine
- Guidance of 110-125Koz gold production in 2019
Monrovia office
• Significant stake in growing exploration firm
LIBERIA
Dugbe Gold Project
• Experienced team with a track record of delivery
• Strong in-country relations with two pro-mining
governments
3
THE STORY TO DATE
A DISTINCTIVE & FOCUSED JOURNEY FROM EXPLORERS TO PRODUCERS
Jul 2018 May-July
June 2016 Dec 2017 Exploration 2019
2014 First gold drilling begins 2nd Ball M&A
US$76m
2010 Acquisition of equity raised pour at at Yanfolila Mill opportunities,
Listed on Yanfolila Gold Yanfolila across a complete greenfield &
to fund
AIM with Project from Gold number of & MDA at brownfield
construction
812koz Au Gold Fields for Mine deposits to Dugbe exploration
Resource: US$20m target LoM and growing
Dugbe increase production
2005 Feb 2016
Founded 2014 Yanfolila Gold 2019
by Dan Dugbe Project DFS Oct 2017 April 2018 110,000 –
Betts to Resource (US$1,250 AU) Plant and TSF Commercial 125,000 oz
explore in grows to NPV=US$162m construction production forecast in
Liberia 4.2Moz Au IRR=60% complete begins 2019
4
STRATEGIC FRAMEWORK TO DELIVER VALUE & GROWTH
HIGH MARGIN GOLD COMPANY FOCUSED ON SHAREHOLDER VALUE
EXPLORE DEVELOP PRODUCE GROW VALUE
Disciplined investment Proven on time and on 110-125Koz 2019 Cash flow generation
in brownfield and budget developers guidance Capital allocation
greenfield targets High margin discipline
Conversion of production M&A
Resources to Reserves Balance sheet
strength
5
SENIOR MANAGEMENT & COMMITTEES
SEASONED MANAGEMENT & ADVISORS WITH A WEALTH OF EXPLORATION, DEVELOPMENT & OPERATIONAL EXPERIENCE
SENIOR MANAGEMENT
Dan Betts Tom Hill
CEO Finance Dir ector
Saidou Idé Shaun Bunn
GM, Finance & Admin Senior VP Project Delivery
20yrs’ experience incl senior Over 30yrs’ experience in
positions at Resolute, Glencore & exploration, mining , processing &
Avocet. Superb jurisdiction project development across Africa
knowledge & relations
Wayne Galea Bert Monro Murray Paterson
VP EPCM Head Business Development VP Geology
Over 30yrs’ experience for leading Joined 2009, Previously a Non- Over 20yrs’ experience as a
Exec Director mine, mineral resource &
engineering companies, including
of Cora Gold & 8 years as Head of exploration geologist
AMEC, Bateman & Signet
BD
TECHNICAL ADVISORY ENVIRONMENT, SOCIAL &
COMMITTEE GOVERNANCE COMMITTEE
Ernie Nutter
Non-Executive Kate Harcourt
CHAIR Director
CHAIR
Attie Roux SENIOR VP
Edward Bickham Kate Harcourt
Non-Executive PROJECT DELIVERY
Director John Meneghini David Lunt
6
CAPITAL STRUCTURE
COMPETITVE VALUATION & STRONG ANALYST COVERAGE
AT A GLANCE: AIM:HUM SIGNIFICANT SHAREHOLDERS
Market Cap (at 06.08.19) US$ 106M
Sustainable
Cash balance (at 30.06.19) US$ 8M Capital
12%
Debt repaid during Q2 US$ 5M
Gold Fields
Debt total at end Q2 US$ 51M 6.2%
Odey
6%
Ordinary shares in issue 353,688,201
Majedie
BROKER COVERAGE 5.4%
Other
CANACCORD GENUITY MIRABAUD Aberdeen
57%
Standard
CENKOS 5%
Management
3.2%
M&G 6.4%
Jupiter
3%
7
PEER COMPARISON
UNDERVALUED AGAINST OUR PEERS
P/NAV EV/Resource ($/oz)
1.20x $600
1.00x $500
0.80x $400
0.60x $300
0.40x $200
0.20x $100
nm $-
8
Source: Thomson Reuters and Canaccord Genuity Limited
Note: prices as at 07/08/19
MALI’S NEWEST GOLD PRODUCER
THE YANFOLILA GOLD MINE
MALI’S NEWEST GOLD MINE
• Built on time and on budget
• High grade deposit: Pre-production Reserve base
of 710koz at 3.14 g/t and over 2Moz Resource
• Carbon-in-leach process plant with current
blended ore throughput capacity of up to 1.4
Mtpa
• Significant scope to increase Reserve base and
Life of Mine through on-going near mine
exploration
• High local workforce rates & local training
programmes ongoing
25% WOMEN 95% LOCAL
PLANT OPERATORS WORKFORCE
10Q2 2019 PERFORMANCE Quarterly Gold Production (oz)
WITH QUARTERLY PRODUCTION FIGURES TO DATE 27,466
22,206 23,807
17,895
• Q2 2019 production of 27,466 oz , 15% increase from
last quarter
• AISC of US$998/oz, 23% decrease on last quarter Q3 2018 Q4 2018 Q1 2019 Q2 2019
• Average mill grade of 2.86g/t
Quarterly AISC (US$/oz)
• Full year guidance of 110-125Koz
1,677
• Second ball mill completed on time and budget 1,297
1,006 998
Q3 2018 Q4 2018 Q1 2019 Q2 2019
11SECOND BALL MILL
INCREASING PLANT THROUGHPUT TO FACILITATE ANTICIPATED RESERVE GROWTH
• Construction successfully completed within Q2 2019 on time
and budget
• To increase plant throughput from 1.24Mtpa to 1.4Mtpa based
on a blend of ore types
• When operating at 100% fresh ore, the throughput capacity
will increase from 1Mtpa to 1.24Mtpa and 1.24Mtpa to
1.4Mtpa for blend of ore
• The preferential choice when considering the alternative
option of installing a tertiary crusher, per the DFS
12DEVELOP & EXPLORE: YANFOLILA
KOMANA EAST & WEST RESERVES & RESOURCES
SIGNIFICANT RESOURCES TARGETED FOR RESERVE CONVERSION
CURRENT GOLD INVENTORY
Category Tonnes (t) Grade (g/t) Gold (oz)
Pre-production Reserve 7,039,000 3.14 709,800
Total Mineral Inventory * 27,952,200 2.23 2,005,300
*Including non-JORC compliant figures at 31 March 2019
KOMANA WEST PIT KOMANA EAST PIT
14YANFOLILA MINE LIFE UPSIDE
EXCELLENT
Over 1Moz of Indicated and Inferred Resources
outside the current mine plan. Historical DRILL RESULTS:
Resource to Reserves conversion rate of 55% Guirin West
Komana West:
Exploration Programme to convert significant 11.45m @ 8.6g/t
Resources to Reserves 25.75m @ 2.95g/t
1. Gonka: High grade Inferred deposit situated 5km
from the plant Gonka:
15m @ 16.03g/t
2. Komana East & West: Underground potential not
currently in Reserves 20.05m @ 4.63g/t
3. Sanioumale East & West: Currently only oxide ore For full results visit the
in the mine plan news page on our
website
15CORA GOLD: MALI EXPLORATION ESTABLISHING A DOMINANT POSITION CLOSE TO THE YANFOLILA GOLD MINE • Hummingbird is a significant shareholder • IPO October 2017(AIM:CORA.L) • Focused on two regions: Mali and Senegal, West Africa • Proven team with comprehensive track record, incl.
LIBERIA
17DUGBE GOLD PROJECT: LIBERIA
OPTIONALITY AND SCALE TO DRIVE PORTFOLIO GROWTH
DISCOVERING & OPERATING IN LIBERIA DUGBE
• Dugbe Shear zone a highly attractive mining region • Liberia’s largest gold deposit of 4.2Moz
• Pro-mining government • Mineral Development Agreement (‘MDA’) passed into
law by Government of the Republic of Liberia in Q2 2019
• Mining law based on Australian mining regulation
• Situated just 70km from Greenville deep water port and
• Favourable fiscal regime: expected 3% royalty & accessible by road
25% basic tax rate
• Attractive economics
• Mining contributes to 10% of economic growth
• Long Life of Mine @ 20 years
• Liberia remains democratic since political stability
was restored in 2003 • High annual production forecast of 125Koz gold
• Strategy to now look towards taking the next steps at
Dugbe in the best interests of all stakeholders.
18THE DUGBE GOLD PROJECT
A LARGE-SCALE RESOURCE WITH STRONG ECONOMICS
• 4.2Moz gold @ 1.4g/t
• 2,355km² of ground within Mineral Development
Agreement (MDA) for 25 years, with over 140 targets
• PEA at US$1,300 gold with IRR of 29% & NPV (10%) of
US$186m
TUZON RESOURCE
• 2.47Moz, including:
- 2.03Moz @ 1.51 g/t Indicated
- 0.44Moz @ 1.32 g/t Inferred
- plus 15% better grade – PEA, was based
on 1.3g/t
• Shallow folding ore body
• Low Strip ratio
• Resource open at depth
DUGBE F RESOURCE
• 1.76Moz @ 1.28 g/t Inferred
19BEST IN CLASS – RESPONSIBLE MINING
20RESPONSIBLE MINING
BUILDING A LASTING LEGACY & MAKING A SUSTAINABLE CONTRIBUTION TO OUR LOCAL COMMUNITIES
A TARGETED, YEAR-ROUND PROGRAMME TO ENHANCE
LOCAL LIVING. IN 2018 WE:
• Pay the salaries of 12 local teachers
• Established additional market gardens to create alternative
livelihoods and generate an income for local women, with
ability to employ 50+ people per garden
• Established further soap-making enterprises to benefit 10 local
communities and 300 women
• Invested in initiatives to provide clean drinking water across
villages local to Yanfolila
• Run on-going training programmes between UK-qualified
doctors and local nurses on essential medical techniques,
such as new-born resuscitation
• Built a brand new health centre in local village of Bougoudale,
to benefit population of approx. 5,000
• Established poultry projects across 4 villages, to contribute to
youth employment and socio-economic development
21SUMMARY
• Strong future cash flow from Yanfolila Gold Mine
• Significant gold inventory, with total 6.2Moz in
West Africa
• Large scope to increase LoM at Yanfolila
through increased plant throughput & nearby
exploration campaign
• Additional Mali exposure through investment in
Cora Gold
• Positioned for further growth through M&A
• Backed by strong institutional shareholders
• Team with proven track record
2324
THE “HUMMINGBIRD 1OZ” COIN
A COLLECTION OF SINGLE MINE ORIGIN PURE GOLD COINS, ORIGINATING FROM YANFOLILA, ON SALE NOW
Collectable coins representing HUM's
industry, journey and company values:
Explore; Develop; Mine; Produce;
Community; and Conserve
Priced based on the spot gold price at
the time of purchase
Minted at Betts Metals, HUM CEO Dan
Betts’ family 260 year old gold refining
1oz and trading company in Birmingham
pure gold coin
www.bettsinvestments.co.uk
25BOARD OF DIRECTORS D a n Be t t s
CEO
• Founded Hummingbird in 2005
• Developed the business from a private
explorer to a listed company with 6Moz+ gold
Ru s s e ll K ing • 18 years’ previous experience in metals A t t ie Ro ux
industry
Non-Executive Chairman Non-Executive Director
• Former Management Consultant at
• Senior Independent Non-Exec of Aggreko
Accenture in 2000
Plc • 42 years operational , technical and
• Former Chief Strategy Officer at Anglo executive experience
American & member of the Executive
T o m H ill • Former COO of Endeavour Mining
Committee for 8 yrs
Finance Director • Chairman of the TAC
• Former Senior Advisor to RBC on Metals &
Mining
• Former Senior Manager within BDO
LLP’s natural resources department
• Metallurgy, Economics &
St e p h e n Be t t s Management Oxford university Er nie N ut t e r
Non-Executive Director graduate
Non-Executive Director
• 12 years’ experience in the resource
• Over 40 years’ experience in trading sector • Mining analyst formerly with Capital Group
with gold and related businesses in
developing countries • Former Director and Managing Director of
• Chairman of the Stephen Betts group
D a vid St r a ke r - Smit h RBC Capital Markets
of companies Non-Executive D i r e c BUNN
SHAUN tor • Former Chairman of RBC Dominion Securities
• Established several businesses in West SENIOR VP • BSc Geology
Africa during his career • Director of London-based investment
PROJECT DELIVERY
research and advisory firm, CrossBorder
Capital Ltd
• Director of New Vision Management Ltd and
Nomad Energy UK Ltd
• Former positions at ING Barings Securities Ltd
and Gerrard & National Holdings Plc
26www.hummingbirdresources.co.uk
+44 (0)20 7409 6660 Hummingbird Resources Plc @HUM_gold
enquiries@hummingbirdresources.co.uk hum_gold Hummingbird Resources Plc
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