corporate presentation gold pour | dec 2017hummingbirdresources.co.uk/_downloads/first_gold... ·...
TRANSCRIPT
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
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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
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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.
F I R S T G O L D P O U R 1
WHO IS HUMMINGBIRD?
F I R S T G O L D P O U R 2
Yanfolila Gold Mine
Bamako Office
6.4Moz gold
inventory in
West Af r ica
Lis ted on
London’s AIM
in 2010
107,000oz per
annum Au
product ion for
Yanfo l i la LOM
A low cost
operator
~US$700/oz at
Yanfo l i la
Largest go ld
deposi t (4.2Moz ) in
Liber ia for fu ture
development
~5,000km 2 of
explorat ion ground in
Mal i , L iber ia and
Senegal
MALI
LIBERIA
Dugbe Gold Project
Monrovia office
THE HUMMINGBIRD STORY TO DATE
F I R S T G O L D P O U R 3
2005Founded by Dan Betts to explore Liberia
2014Dugbe resource grows to 4.2Moz Au
Feb 2016Yanfolila Gold Project DFS (US$1,250 gold)NPV=US$162 millionIRR=60%
Jun 2017Increased stake in Yanfolila to 80%
Nov 2017 Commissioning of Yanfolila
2010Listed on AIM with 812koz Au resource at Dugbe
2014Acquisition of Yanfolila Gold Project from Gold Fields for US$20 million
Jun 2016US$75 million equity raised to fund construction
Aug 2017Commenced mining
Dec 2017Gold production at Yanfolila
M&A opportunities, greenfield & brownfield exploration
THE TEAM
F I R S T G O L D P O U R 4
* Full biographies of Senior Management Team can be found on the website: http://hummingbirdresources.co.uk/corporate-ir/senior-management/
• WILLIAM COOK• DAVID HEBDITCH• KATE HARCOURT• EDWARD BICKHAM
• IAN COCKERILL• DAVID LUNT• MARK CALDERWOOD
RUSSELL KING
CHAIRMAN
ROBERT MONRO
DANIEL BETTS
CEO
HEAD OF BUSINESS DEVELOPMENT
SHAUN BUNN
SENIOR VP PROJECT DELIVERY
DARREN GIBCUS
GENERAL MANAGER YANFOLILA
THOMAS HILL
FINANCE DIRECTOR
143 YEARS OPERATIONAL
EXPERIENCE
79 YEARS CORPORATE EXPERIENCE
124 YEARS EXPERIENCE IN AFRICA
ON 61 PROJECTS
>90% MALIAN WORKFORCE
TECHNICAL ADVISORY COMMITTEESHEC COMMITTEE
WHY INVEST?
F I R S T G O L D P O U R 5
HIGH MARGIN GOLD COMPANY FOCUSED ON GROWTH
PRODUCERevenue generation from high margin Yanfolila Gold Mine in Mali – a low-cost, high-grade, open multi-pit mining operation with significant expansion opportunities – first gold poured December 2017; commercial production to commence by end Q1 2017; ~US$70 million free cash flow in year 1
DEVELOPGlobal gold inventory of 6.4Moz; Mali: +1 million ounces outside mine plan; underground potential once open pit completed; further ounces to add from Gonka deposit; Liberia: 4.2Moz Dugbe Gold Project at DFS stage
EXPLORESignificant land package of exploration ground in Mali, Liberia and Senegal; ~34% interest in AIM listed Cora Gold with potential nearby satellite deposits for Yanfolila
CORPORATEExcellent team brought Yanfolila to production on schedule and on budget; Strong institutional shareholder base including Odey, Fidelity, Capital, Majedie; Successfully raised US$75 million in equity in 2016; US$60 million debt facility with Coris Bank
YANFOLILA PRODUCTION IN NUMBERS
F I R S T G O L D P O U R 7
gold outside current mine plan
resource
30 yearmining licence
AISC
132,000 Au year 1
average grade
107,000ozAu p/a over LOM
60% IRR
@ 2.4g/t
710Koz reserves
at 3.14g/t
1Moz
carbon-in-
leach (CIL) process plant
7.4MWdiesel power facility
YANFOLILA DEVELOPMENT TIMELINE
8
Oct 2017Connected to power
Aug 2017Mining commenced
Nov 2017Commissioning of CIL plant
Dec 2017First gold pour
2017On-going advanced grade-control drilling
Mar 2018Commercial production following 3 month ramp-up
Throughout 2018Drilling of existing resources to deliver greater reserve life
End 2020Targeting >150,000oz p/a through short term expansion initiatives
Oct 2016Construction commences
F I R S T G O L D P O U R
YANFOLILA PRODUCTION FORECAST
F I R S T G O L D P O U R 9
HIGH GRADE, LOW COST GOLD PRODUCTION
Grade (g/t)
Ounces of gold (Koz)
* Gonka has the potential to bring higher grade ounces into the mine plan from year 3
0
0.5
1
1.5
2
2.5
3
3.5
4
0
20
40
60
80
100
120
140
1 2 3 4 5 6 7 8 9 10 11 12
Total potential ounces of gold from Gonka upside (Koz)
Grade(g/t)
Year
Ounces(Koz)
Shaded area: Potential ozs from discovered resources not converted to reserves already on the mining permit
THE MINING & PRODUCTION PROCESS
F I R S T G O L D P O U R 10
F leet of 4 L iebherr 9150 excavators & 1 L iebherr 9250
18 CAT 777Fs (100t )
4 dr i l l r igs
Open p i t , 50+m ox ide deposi t
S imple grav i t y and C IL process ing route
High recover y rate of 92.8%
Total process ing US$15/t
1.24Mt pa capaci ty
MALI’S REGIONAL OPPORTUNITY & INFRASTRUCTURE
F I R S T G O L D P O U R 11
YANFOLIA GOLD BELTMALI
EITI-compliant country since 2011
Mining and metals a priority industry sector for furthering economic development
3% royalty and 30% basic tax rate
No restrictions on foreign investment or capital flows in and out of Mali
Gold represents approximately 90% of the country’s mineral production
Collectable BMI Research forecasts that Mali’s mining industry will experience a value growth of 10% from 2017 to 2021, putting it above top African miningmarkets
MALI: AFRICA’S 3 rd LARGEST GOLD PRODUCER
INFRASTRUCTUREINFRASTRUCTURE
THE “HUMMINGBIRD 1OZ” COINS
F I R S T G O L D P O U R 12
Col lectable co ins represent ing HUM's industr y, jour ney and company va lues : Exp lore; Deve lop; Mine; Produce; Community ; and Conser ve
Pr iced based on t he spot go ld pr i ce at t he t ime of purchase
To be minted at Betts Metals , HUM CEO Dan Bett s ’ fami ly 260 year o ld gold ref in ing and t rading company in B i r mingham
A COLLECTION OF SINGLE MINE ORIGIN PURE GOLD COINS, ORIGINATING FROM YANFOLILA, ON SALE 2018
1oz pure gold coin
registered interest s ince soft launch on 27.11.17http://hummingbirdresources.co.uk/coins
F I R S T G O L D P O U R 15
385,198oz Au
at Inferred
166,086oz Au
mined over years
77,424oz Au
underground at
91,662oz Au
in open pit at
160m
+-600m
POTENTIAL TO ADD US$24 MILLION TO NPV @ US$1,250 GOLD PRICE
Scoping St udy leve l report completed wi t h robust economics
Resu lts not inc luded in DFS mine p lan
Potent ia l to expand p lant to 1 .5Mtpa with addit ional C IL tanks
Depos it i s open on st r ike and at depth
GONKA: HIGH GRADE UPSIDE FOR YANFOLILA
DUGBE GOLD PROJECT: LIBERIA
F I R S T G O L D P O U R 16
D F S c u r r e n t l y u n d e r o p t i m i s a t i o n : R e v i e w i n g c o n v e r t i n g M & I
R e s o u r c e s b e y o n d T u z o n M o d e l l i n g i m p r o v e d c a s h
f l o w s b y s c h e d u l i n g l o w s t r i p s h a l l o w o r e f r o m o t h e r d e p o s i t s n o t c u r r e n t l y i n M & I
H y d r o - E l e c t r i c P F S c o m p l e t e d d e m o n s t r a t i n g p o t e n t i a l t o l o w e r p o w e r c o s t s
L iber ia ’s la rgest go ld deposi t –4.2Moz Au
Located 40 mi les by road f rom G reenvi l le deep water por t
PEA (2013) showed robust economics in var y ing go ld pr i ce envi ronment
Ant ic ipated 125,000oz Au per annum
20 year L i fe of Mine
PROVIDES SCALE AND SIGNIFICANT LONGER -TERM GROWTH POTENTIAL FROM A LARGE RESOURCE WITH EXPANSION UPSIDE
US$186MNPV
IRR
YANFOLILA EXPLORATION UPSIDE
F I R S T G O L D P O U R 18
PROCESS PLANT
MALIKILA
FALIKO
DIABAN
KOMANA
GUIRIN WEST74KOZ @ 1.98 G/T
SANIOUMALE WEST138KOZ @ 2.03 G/T
SANIOUMALE EAST 62KOZ @ 3.04 G/T
GONKA385KOZ @ 3.1 G/T
KABAYA SOUTH85KOZ @ 1.3 G/T
MALIKILA PERMIT (DRILL SECTIONS)
25M @ 4.38 G/T
8M @ 7.23 G/T
150M @ 0.8 G/T
Phase 2:
Increase mineable Reser ves to 10 year LoM (10+Mt and/or 1+Moz ) v ia convers ion of resources to reser ves
i .e . GK, SW, KE -UG
Create va lue t hrough new d iscover ies or JVs i .e . G onka L ink , So laba, Fa l iko-Fodela , Kangare l i cences
Discover addi t ional resources to c reate p ipel ine of reser ve rep lacement or poss ib le mi l l upgrade i .e .
extens ions to known deposi ts , KE -UG, SW deeps, G W deeps, Badogo-Mal ik i la , Kabaya Sout h
THREE-PART STRATEGY TO INCREASE LOM, CREATE VALUE AND DISCOVER
1
2 3
4
5
1
2
3
Phase 3: Exploration Upside:
4
5
CORA GOLD INVESTMENT
F I R S T G O L D P O U R 19
Sanankoro G old D iscovery: pot ent ia l for a 1Moz + s t andalone mine deve lopment
Al l pr o ject ar eas have mult ip le go ld t ar gets wi t h dr i l l in t ercepts
Wit h in t r uck ing d i s t ance f r om Yanfol i la
HUMMINGBIRD HAS A 34% STAKE IN CORA GOLD, (AIM: CORA)
19m @
High grade Sanankoro
US$10MHistorical
expenditure by Gold Fields
SUMMARY
F I R S T G O L D P O U R 20
PRODUCTION
EXPANSION
CORPORATE GROWTH
• 1 3 2 , 0 0 0 O U N C E S I N F I R S T Y E A R O F P R O D U C T I O N• LO W - C O ST P R O D U C T I O N – A I S C ~ U S $ 7 0 0 / OZ
• E X PA N S I O N F R O M G O N K A D E P O S I T• P OT E N T I A L TO I N C R E A S E P R O D U C T I O N• S I G N I F I C A N T L I F E O F M I N E E X T E N S I O N P OT E N T I A L
• W I D E R YA N F O L I L A A S S E S S M E N T A N D D E V E LO P M E N T• C O R A G O L D P O R T F O L I O• 4 . 2 M OZ D U G B E G O L D P R O J E C T L I B E R I A
• U S $ 7 0 M I L L I O N F R E E C A S H F LO W I N F I R S T F U L L Y E A R O F P R O D U C T I O N
• S T R O N G I N S T I T U T I O N A L S H A R E H O L D E R B A S E I N C LU D I N G C A P I TA L , O D E Y, F I D E L I T Y A N D M A J E D I E
EXPLORATION & DEVELOPMENT
CORPORATE INFORMATION
F I R S T G O L D P O U R 22
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
L A R G E S T S H A R E H O L D E R S
C A N T O R F I T Z G E R A L D
W H I R E L A N D
B E A U F O R T
C E N K O S
M I R A B A U D
B R O K E R C O V E R A G E
M A R K E T C A P
US$175 M I L L I O N
US$40M I L L I O N
C A S H
A I M : H U M VALUED AT ~2 X FREE CASH FLOW
A S A T 1 4 D E C 2 0 1 7
PEER COMPARISON
F I R S T G O L D P O U R 23
HIGH GRADE – LOW COST AND IMPRESSIVE IRR COMPARED TO WEST AFRICAN PEERS
CORPORATE & SOCIAL RESPONSIBILITY
175 + meetings held with local communities, authorities and stakeholders
Funding salaries of 20 local teachers
Market gardens established to create alternative livelihoods and generatean income for local women - ability to employ 50+ people per garden
Soap-making enterprise established to benefit 10 communities and 300women
Investment in initiatives to provide clean drinking water
Investment in programmes for local nurses to receive training fromqualified doctors
Installation of solar panels and units to three local health centres inYallonkoro-Soloba
Pygmy Hippo Foundation is working with local communities to promotethe conservation, preservation and protection of the pygmy hippo andother endangered species
F I R S T G O L D P O U R 24
MAKING A LASTING & SUSTAINABLE CONTRIBUTION TO THE SOCIAL, ENVIRONMENTAL AND ECONOMIC WELLBEING OF LOCAL COMMUNITIES IN MALI & LIBERIA
BOARD
F I R S T G O L D P O U R 25
• Senior Independent Non-Exec of Aggreko Plc
• Former Chief Strategy Officer at Anglo American & member of the Executive Committee for 8 years
• Former Senior Advisor to RBC on Metals & Mining
• Senior Independent Director of Interserve Plc & Spectris Plc
• Founded Hummingbird in 2005
• Developed the business from a private explorer to a listed company with 6Moz+ gold
• 18 years’ previous experience in metals industry
• Former Management Consultant at Accenture in 2000
• Former Senior Manager within BDO LLP’s natural resources department
• Metallurgy, Economics & Management Oxford university graduate
• 12 years’ experience in the resource sector
• Director of AIM quoted Rose Petroleum plc and Seamwell International Ltd
• Founder and Director of a private company developing underground coal gasification (“UCG”) projects in China
• Former Associate Director at Laing and Cruickshank Investment Management, part of Credit Lyonnais
• Mineral Geologist with over 35 years’ global exploration experience
• Former experience as Technical Director with new junior company start-up projects worldwide
• Worked in several West African countries and oversaw the discovery and early evaluation of the 6 Moz+ Chirano Gold Mine in Ghana
• Director of London-based investment 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
Russel l K ingNon -Execut ive Cha i rman
Daniel BettsCEO
Thomas H i l lF inance D i rector
Matthew Id iensNon -Execut ive D i rector
David Pe lhamNon -Execut ive D i rector
David St raker -Smith Non -Execut ive D i rector
• Over 40 years’ experience in trading with gold and related businesses in developing countries
• Chairman of the Stephen Betts group of companies
• Established several businesses in West Africa during his career
Stephen BettsNon -Execut ive D i rector
CONTACTS
F I R S T G O L D P O U R 26
HUM_GOLD
#HUM
AIM:HUM
D a n B e t t s C E O
2 6 M o u n t R o w, L o n d o n , W 1 K 3 S Q
www.hummingbirdresources.co.uk
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N O M A D
F I N A N C I A L P R / I R