It has been another busy six months for Liberia-focused gold explorer Hummingbird Resources (HUM). It made a third gold discovery at the Sackor prospect, 2.1km south-west of its main Dugbe F gold deposit, and successfully completed preliminary metallurgical testing that revealed good potential gold recovery rates - of over 90 per cent.
Moreover, Hummingbird completed two financings in December that left it cashed-up for a demanding year ahead. Importantly, the deals kept dilution to a minimum with $15m (£9.4m) raised through the sale of a 2 per cent royalty to Anglo Pacific Group (APF) - that only begins once production starts. Hummingbird now has $26m of total funding in place for 2013 and one of the best treasuries in the junior gold space.
Its next key step will be to establish the feasibility of the Dugbe project. Accordingly, it will complete a substantial infill drilling programme this year to better define the project's gold resource. A scoping study is also expected later this quarter - giving the market its first real indication of the project's costs and likely economics.
HUMMINGBIRD RESOURCES (HUM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 87p | MARKET VALUE: | £46.5m | |
| TOUCH: | 86-88p | 12-MONTH HIGH: | 173p | LOW: 66p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 87¢* | NET CASH: | $7.1m | |
| Half-year to 30 Nov | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | nil | -2.59 | -4.85 | nil |
| 2012 | nil | -1.51 | -2.82 | nil |
| % change | - | - | - | - |
*Includes intangible assets of $38.5m, or 72¢ a share £1=$1.59 | ||||
