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Highlights

  • Hummingbird achieved an operating profit of USD 6.75 million in FY23, a significant turnaround from an operating loss of USD 62.71 million in pcp
  • In Q1 FY24, Yanfolila mine reported gold production of 16,999 ounces, marking an 18% increase from Q4 FY23
  • The group has set its production outlook for FY24 between 165k and 200k ounces

Hummingbird Resources PLC (LSE: HUM) is a United Kingdom-based company listed on the FTSE AIM All-Share index, specializing in gold production, development, and exploration. Its primary assets include the Yanfolila Gold Mine in Mali, currently operational, and the Kouroussa Gold Mine in Guinea. The company has a market capitalization of GBP 67.21 million.

In FY23, the company saw its revenue rise to USD 167.10 million from USD 150.51 million in FY22, driven by increased volumes of gold sold at higher average realized prices in the first half of FY23. Additionally, the company achieved an operating profit of USD 6.75 million in FY23, a significant turnaround from an operating loss of USD 62.71 million in the same period last year.

The company reported gold production of 83,965 ounces from the Yanfolila Mines, with an all-in-sustaining cost (AISC) of USD 1,331 per ounce. At the Kouroussa Mine, the company reported 6,068 ounces of gold production, meeting previously stated guidance.

Further, the company had a higher gross margin of 15.6% and a higher EBITDA margin of 30.4% in FY23, compared to -12.6% and 3.7% in FY22, respectively.

Recent business update

As per the company’s operational update, in Q1 FY24, Yanfolila reported gold production of 16,999 ounces, marking an 18% increase from Q4 FY23. The AISC decreased by 5% from Q4 FY23 to USD 1,616 per ounce in Q1 FY24. Gold sales amounted to 18,230 ounces, achieving an average realized price of USD 2,030 per ounce. Meanwhile, at the Kouroussa Mine in Guinea, Q1 FY24 production totalled 5,868 ounces of gold.

Company outlook

The group has set its production outlook for FY24 between 165k and 200k ounces, targeting AISC below USD 1,500 per ounce, with a particular emphasis on the second half of 2024.

In addition to its production goals, the company is focused on strengthening its financial position by reducing debt on its balance sheet. Starting in Q1 FY24, the company plans to initiate scheduled debt repayments totaling approximately USD 77 million in FY24, and USD 61 million in FY25, with the remaining USD 15 million expected to be paid off by the end of FY28.

Top 10 Shareholders

The top ten shareholders of HUM together hold approximately 58.86% of the total shares. CIG SA leads with a shareholding of around 41.87%, followed by AIMS Asset Management Sdn Bhd with approximately 3.99%, as illustrated in the chart provided.

Stock performance

Over the past three months, HUM's stock price has surged by approximately 45.93%, whereas in the preceding six months, it declined by around 19.70%. The stock has recorded a 52-week low of GBX 4.05 and a high of GBX 16.50, positioning its current trading below the midpoint of this range.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 28 June 2024. The reference data in this report has been partly sourced from EODHD/Others.