THE restructuring of Hummingbird Resources’ balance sheet is continuing with the gold junior saying on Friday one of its largest lenders, Coris Bank, had agreed to defer $30m in payments that were to fall due at the end of October.
A “wider restructuring” of the balance sheet was anticipated by November 6 at the latest, the miner added. “Advanced discussions” with Coris regarding “outstanding debt as well as rescheduling of payments due under its agreements with Coris” were underway.
The $30m loan was secured from CIG SA, which has the same lender as Coris Bank, on September 27. On the same day, Hummingbird announced an operational and strategic restructuring part of which would see it appoint a new CEO.
The incumbent, Daniel Betts, is to become executive chairman of Hummingbird. Cost cuts and the sale of non-core assets is envisaged for the company as it seeks to stay afloat. As of the end of the third quarter, it had about $135m in debt of which $90m was secured against the firm’s assets.
Hummingbird has been mired in operational problems over the last two years as it struggled to meet ramp up plans for its $120m Guinea project Kouroussa. In December it unveiled a recapitalisationafter previously agreeing to cut $122.8m in debt over three years starting with a $77m debt repayment by the end of this year.
As part of the recapitalisation, it also agreed to hedge 15% of its gold production which compounded its problems this year as the gold price repeatedly racked up all-time records. Shareholders in Hummingbird have largely missed the bull gold market as a result.
