DANIEL Betts can thank the gold price for coming to the company’s aid. The improvement in bullion by about $300 per ounce from January to June enabled Hummingbird to issue $71m in shares for its Yanfolila gold project in West Africa’s Mali. During that time, the share price had more than doubled. By early December, a debt package helped fully fund Yanfolila which is due to produce its first gold in the last quarter of 2017 on its way to steady state production of 107,000 oz/year over the life of mine. Long lead orders are in with the construction period set at 12 months. Yanfolila is the asset Gold Fields sold to Hummingbird in 2014 in return for a 26% stake valued at $20m. Gold Fields allowed itself to be diluted in subsequent equity offerings, but remains an important investor. Hummingbird is also working through a prefeasibility study on Dugbe, a Liberian gold resource with some 4.2 million ounces in reserves, and capable of yielding 125,000 oz/year over a 20-year life of mine. The question for mining juniors like Hummingbird is whether the gold price will continue to play ball. Yanfolila is predicated on a gold price of about $1,250/oz which makes it a stock strictly for the gold bulls amongst us.
LIFE OF DANIEL
Betts is from a family that has been trading gold for more than 250 years. After graduating from Nottingham University, Betts worked for Accenture Management Consultants until he joined the family business. As the oldest privately-owned gold bullion smelters and refiners in the UK, it was able to finance him for three years whilst he established Hummingbird Resources which listed in London in 2010.
“This additional debt facility sees the final corporate hurdle overcome.”
- Web Address: www.hummingbirdresources.co.uk