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Highlights

  • Hummingbird's H1 FY24 revenue fell to USD 65.13 million, down 36.9% year-on-year.
  • The company posted an operating loss of USD 17.54 million in H1 FY24
  • The Group aims for 165,000 to 200,000 ounces of production in FY24, maintaining costs under USD 1,500 per ounce.

Hummingbird Resources PLC (LSE: HUM) is a UK-based company focused on exploring, developing, and operating mineral projects. It has two major assets, the Kouroussa Gold Mine in Guinea and the operational Yanfolila Gold Mine in Mali. 

In H1 FY24, Hummingbird reported revenue of USD 65.13 million, a decrease of 36.9% compared to USD 103.19 million in H1 FY23. This decline was primarily due to a lower quantity of gold sold, although it was partially offset by higher average realized prices.

Operating loss for the period was  USD 17.54 million compared to a profit of USD 14.57 million in the previous year. This operating loss was driven by decreased revenue and increased production costs, which rose to USD 51.45 million in H1 FY24.

Recent Business Update

On September 27, 2024, Hummingbird announced that it has secured an additional USD 20 million loan from its largest shareholder, CIG SA, to enhance its financial stability. The company is also starting a thorough review to improve operations across its assets.

Company Outlook

The Group expects to produce between 165,000 and 200,000 ounces in FY24, with All-In Sustaining Costs (AISC) below USD 1,500 per ounce, mainly focusing on the second half of 2024. This estimate includes Yanfolila, which aims for 75,000 to 85,000 ounces at an AISC below USD 1,500 per ounce, and Kouroussa, targeting 90,000 to 115,000 ounces at the same cost. Additionally, the Company plans to reduce its debt by making scheduled repayments of about USD 77 million in FY24, USD 61 million in FY25, and the remaining USD 15 million by the end of FY28.

Top 10 Shareholders

The top 10 shareholders of Hummingbird Resources hold approximately 56.74% of the total shares. CIG SA has the largest stake, owning about 41.87% of shares. AIMS Asset Management Sdn Bhd follows with a 3.93% shareholding, as shown in the chart below.

Price Performance

The stock price of HUM has declined by approximately 28.88% over the past three months. However, it has gained about 9.4% in the past week. The stock's 52-week low and high are GBX 4.05 and 14.00, respectively, and it is currently trading below the average of these 52-week figures. As of October 24, 2024, the stock's closing price is GBX 6.40.

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 24 October 2024. The reference data in this report has been partly sourced from EODHD/Others.