Politics and pestilence had a limited impact on half-year figures for Hummingbird Resources, with the African gold miner swinging to a $22.9m (£17.3m) operating profit from a loss of $3.39m in the first half of 2019.
The recent coup in Mali has yet to affect the miner’s operations, which are centred 280kms from the capital. But the group is mindful that one of the new military junta’s initial priorities will be to secure access to the struggling nation’s finances. That means the miner could be subject to increased royalty demands, even if expropriation is not part of the agenda.
The Economic Community of West African States (Ecowas) has already implemented border closures in response to the coup, which could have negative logistical implications for Hummingbird, although it can always fall back on 4,000 ounces (oz) in inventory to see it through any near-term disruptions.
Matters were largely positive from an operational perspective, with 56,095 oz (HY2019: 51,034oz) sold at an average price of $1,621/oz, with an all-in sustaining cost (AISC) of $936/oz.
The 2020 exploration programme is well on its way to completion, and management anticipates that all existing bank loans will be paid off by midway through 2021.
Consensus forecasts are for adjusted EPS of 6.48ȼ this year, rising to 8.39ȼ in 2021.
| HUMMINGBIRD RESOURCES (HUM) | ||||
| ORD PRICE: | 35p | MARKET VALUE: | £ 124m | |
| TOUCH: | 34-35p | 12-MONTH HIGH: | 43p | LOW: 18p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 6 | |
| NET ASSET VALUE: | 43ȼ* | NET DEBT: | 24% | |
| Half-year to 30 June | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
| 2019 | 67.1 | -5.88 | -1.48 | nil |
| 2020 | 92.0 | 23.8 | 5.13 | nil |
| % change | +37 | - | - | - |
| Ex-div: | - | |||
| Payment: | - | |||
| £1 = $1.32. *Includes intangible assets of $75m, or 21ȼ a share | ||||
