CORPORATE PRESENTATION - August 2019 Corporate Presentation
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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 provided by Hummingbird Resources. No reliance may be placed for any purpose whatsoever on the information contained in this document nor on assumptions made as to its completeness. No representation or warranty, express or implied, is given by Hummingbird Resources, any of its subsidiaries or any of its respective advisers, officers, employees or agents, as to the accuracy, fairness or completeness of the information or opinions contained in this document or expressed in the presentation and, no liability is accepted for any such information or opinions (which should not be relied upon) or for any loss howsoever arising, directly or indirectly, from any use of this document or its contents or information expressed in the presentation. The information and opinions contained in this document and the presentation are provided as the date of this document and the presentation and are subject to change without notice. This presentation contains forward-looking statements that are based on Hummingbird Resources’ current expectations and estimates. Such forward-looking statements involve 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 expressed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and Hummingbird Resources disclaims any intent 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. 2
A MULTI-ASSET AFRICAN GOLD PRODUCER WITH STRATEGIC FRAMEWORK TO DELIVER VALUE & GROWTH MALI Bamako Office • A producer with significant gold inventory of over 6Moz across two projects in West Africa Yanfolila Gold Mine - Guidance of 110-125Koz gold production in 2019 Monrovia office • Significant stake in growing exploration firm LIBERIA Dugbe Gold Project • Experienced team with a track record of delivery • Strong in-country relations with two pro-mining governments 3
THE STORY TO DATE A DISTINCTIVE & FOCUSED JOURNEY FROM EXPLORERS TO PRODUCERS Jul 2018 May-July June 2016 Dec 2017 Exploration 2019 2014 First gold drilling begins 2nd Ball M&A US$76m 2010 Acquisition of equity raised pour at at Yanfolila Mill opportunities, Listed on Yanfolila Gold Yanfolila across a complete greenfield & to fund AIM with Project from Gold number of & MDA at brownfield construction 812koz Au Gold Fields for Mine deposits to Dugbe exploration Resource: US$20m target LoM and growing Dugbe increase production 2005 Feb 2016 Founded 2014 Yanfolila Gold 2019 by Dan Dugbe Project DFS Oct 2017 April 2018 110,000 – Betts to Resource (US$1,250 AU) Plant and TSF Commercial 125,000 oz explore in grows to NPV=US$162m construction production forecast in Liberia 4.2Moz Au IRR=60% complete begins 2019 4
STRATEGIC FRAMEWORK TO DELIVER VALUE & GROWTH HIGH MARGIN GOLD COMPANY FOCUSED ON SHAREHOLDER VALUE EXPLORE DEVELOP PRODUCE GROW VALUE Disciplined investment Proven on time and on 110-125Koz 2019 Cash flow generation in brownfield and budget developers guidance Capital allocation greenfield targets High margin discipline Conversion of production M&A Resources to Reserves Balance sheet strength 5
SENIOR MANAGEMENT & COMMITTEES SEASONED MANAGEMENT & ADVISORS WITH A WEALTH OF EXPLORATION, DEVELOPMENT & OPERATIONAL EXPERIENCE SENIOR MANAGEMENT Dan Betts Tom Hill CEO Finance Dir ector Saidou Idé Shaun Bunn GM, Finance & Admin Senior VP Project Delivery 20yrs’ experience incl senior Over 30yrs’ experience in positions at Resolute, Glencore & exploration, mining , processing & Avocet. Superb jurisdiction project development across Africa knowledge & relations Wayne Galea Bert Monro Murray Paterson VP EPCM Head Business Development VP Geology Over 30yrs’ experience for leading Joined 2009, Previously a Non- Over 20yrs’ experience as a Exec Director mine, mineral resource & engineering companies, including of Cora Gold & 8 years as Head of exploration geologist AMEC, Bateman & Signet BD TECHNICAL ADVISORY ENVIRONMENT, SOCIAL & COMMITTEE GOVERNANCE COMMITTEE Ernie Nutter Non-Executive Kate Harcourt CHAIR Director CHAIR Attie Roux SENIOR VP Edward Bickham Kate Harcourt Non-Executive PROJECT DELIVERY Director John Meneghini David Lunt 6
CAPITAL STRUCTURE COMPETITVE VALUATION & STRONG ANALYST COVERAGE AT A GLANCE: AIM:HUM SIGNIFICANT SHAREHOLDERS Market Cap (at 06.08.19) US$ 106M Sustainable Cash balance (at 30.06.19) US$ 8M Capital 12% Debt repaid during Q2 US$ 5M Gold Fields Debt total at end Q2 US$ 51M 6.2% Odey 6% Ordinary shares in issue 353,688,201 Majedie BROKER COVERAGE 5.4% Other CANACCORD GENUITY MIRABAUD Aberdeen 57% Standard CENKOS 5% Management 3.2% M&G 6.4% Jupiter 3% 7
PEER COMPARISON UNDERVALUED AGAINST OUR PEERS P/NAV EV/Resource ($/oz) 1.20x $600 1.00x $500 0.80x $400 0.60x $300 0.40x $200 0.20x $100 nm $- 8 Source: Thomson Reuters and Canaccord Genuity Limited Note: prices as at 07/08/19
THE YANFOLILA GOLD MINE MALI’S NEWEST GOLD MINE • Built on time and on budget • High grade deposit: Pre-production Reserve base of 710koz at 3.14 g/t and over 2Moz Resource • Carbon-in-leach process plant with current blended ore throughput capacity of up to 1.4 Mtpa • Significant scope to increase Reserve base and Life of Mine through on-going near mine exploration • High local workforce rates & local training programmes ongoing 25% WOMEN 95% LOCAL PLANT OPERATORS WORKFORCE 10
Q2 2019 PERFORMANCE Quarterly Gold Production (oz) WITH QUARTERLY PRODUCTION FIGURES TO DATE 27,466 22,206 23,807 17,895 • Q2 2019 production of 27,466 oz , 15% increase from last quarter • AISC of US$998/oz, 23% decrease on last quarter Q3 2018 Q4 2018 Q1 2019 Q2 2019 • Average mill grade of 2.86g/t Quarterly AISC (US$/oz) • Full year guidance of 110-125Koz 1,677 • Second ball mill completed on time and budget 1,297 1,006 998 Q3 2018 Q4 2018 Q1 2019 Q2 2019 11
SECOND BALL MILL INCREASING PLANT THROUGHPUT TO FACILITATE ANTICIPATED RESERVE GROWTH • Construction successfully completed within Q2 2019 on time and budget • To increase plant throughput from 1.24Mtpa to 1.4Mtpa based on a blend of ore types • When operating at 100% fresh ore, the throughput capacity will increase from 1Mtpa to 1.24Mtpa and 1.24Mtpa to 1.4Mtpa for blend of ore • The preferential choice when considering the alternative option of installing a tertiary crusher, per the DFS 12
DEVELOP & EXPLORE: YANFOLILA
KOMANA EAST & WEST RESERVES & RESOURCES SIGNIFICANT RESOURCES TARGETED FOR RESERVE CONVERSION CURRENT GOLD INVENTORY Category Tonnes (t) Grade (g/t) Gold (oz) Pre-production Reserve 7,039,000 3.14 709,800 Total Mineral Inventory * 27,952,200 2.23 2,005,300 *Including non-JORC compliant figures at 31 March 2019 KOMANA WEST PIT KOMANA EAST PIT 14
YANFOLILA MINE LIFE UPSIDE EXCELLENT Over 1Moz of Indicated and Inferred Resources outside the current mine plan. Historical DRILL RESULTS: Resource to Reserves conversion rate of 55% Guirin West Komana West: Exploration Programme to convert significant 11.45m @ 8.6g/t Resources to Reserves 25.75m @ 2.95g/t 1. Gonka: High grade Inferred deposit situated 5km from the plant Gonka: 15m @ 16.03g/t 2. Komana East & West: Underground potential not currently in Reserves 20.05m @ 4.63g/t 3. Sanioumale East & West: Currently only oxide ore For full results visit the in the mine plan news page on our website 15
CORA GOLD: MALI EXPLORATION ESTABLISHING A DOMINANT POSITION CLOSE TO THE YANFOLILA GOLD MINE • Hummingbird is a significant shareholder • IPO October 2017(AIM:CORA.L) • Focused on two regions: Mali and Senegal, West Africa • Proven team with comprehensive track record, incl.
LIBERIA 17
DUGBE GOLD PROJECT: LIBERIA OPTIONALITY AND SCALE TO DRIVE PORTFOLIO GROWTH DISCOVERING & OPERATING IN LIBERIA DUGBE • Dugbe Shear zone a highly attractive mining region • Liberia’s largest gold deposit of 4.2Moz • Pro-mining government • Mineral Development Agreement (‘MDA’) passed into law by Government of the Republic of Liberia in Q2 2019 • Mining law based on Australian mining regulation • Situated just 70km from Greenville deep water port and • Favourable fiscal regime: expected 3% royalty & accessible by road 25% basic tax rate • Attractive economics • Mining contributes to 10% of economic growth • Long Life of Mine @ 20 years • Liberia remains democratic since political stability was restored in 2003 • High annual production forecast of 125Koz gold • Strategy to now look towards taking the next steps at Dugbe in the best interests of all stakeholders. 18
THE DUGBE GOLD PROJECT A LARGE-SCALE RESOURCE WITH STRONG ECONOMICS • 4.2Moz gold @ 1.4g/t • 2,355km² of ground within Mineral Development Agreement (MDA) for 25 years, with over 140 targets • PEA at US$1,300 gold with IRR of 29% & NPV (10%) of US$186m TUZON RESOURCE • 2.47Moz, including: - 2.03Moz @ 1.51 g/t Indicated - 0.44Moz @ 1.32 g/t Inferred - plus 15% better grade – PEA, was based on 1.3g/t • Shallow folding ore body • Low Strip ratio • Resource open at depth DUGBE F RESOURCE • 1.76Moz @ 1.28 g/t Inferred 19
BEST IN CLASS – RESPONSIBLE MINING 20
RESPONSIBLE MINING BUILDING A LASTING LEGACY & MAKING A SUSTAINABLE CONTRIBUTION TO OUR LOCAL COMMUNITIES A TARGETED, YEAR-ROUND PROGRAMME TO ENHANCE LOCAL LIVING. IN 2018 WE: • Pay the salaries of 12 local teachers • Established additional market gardens to create alternative livelihoods and generate an income for local women, with ability to employ 50+ people per garden • Established further soap-making enterprises to benefit 10 local communities and 300 women • Invested in initiatives to provide clean drinking water across villages local to Yanfolila • Run on-going training programmes between UK-qualified doctors and local nurses on essential medical techniques, such as new-born resuscitation • Built a brand new health centre in local village of Bougoudale, to benefit population of approx. 5,000 • Established poultry projects across 4 villages, to contribute to youth employment and socio-economic development 21
SUMMARY
• Strong future cash flow from Yanfolila Gold Mine • Significant gold inventory, with total 6.2Moz in West Africa • Large scope to increase LoM at Yanfolila through increased plant throughput & nearby exploration campaign • Additional Mali exposure through investment in Cora Gold • Positioned for further growth through M&A • Backed by strong institutional shareholders • Team with proven track record 23
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THE “HUMMINGBIRD 1OZ” COIN A COLLECTION OF SINGLE MINE ORIGIN PURE GOLD COINS, ORIGINATING FROM YANFOLILA, ON SALE NOW Collectable coins representing HUM's industry, journey and company values: Explore; Develop; Mine; Produce; Community; and Conserve Priced based on the spot gold price at the time of purchase Minted at Betts Metals, HUM CEO Dan Betts’ family 260 year old gold refining 1oz and trading company in Birmingham pure gold coin www.bettsinvestments.co.uk 25
BOARD OF DIRECTORS D a n Be t t s CEO • Founded Hummingbird in 2005 • Developed the business from a private explorer to a listed company with 6Moz+ gold Ru s s e ll K ing • 18 years’ previous experience in metals A t t ie Ro ux industry Non-Executive Chairman Non-Executive Director • Former Management Consultant at • Senior Independent Non-Exec of Aggreko Accenture in 2000 Plc • 42 years operational , technical and • Former Chief Strategy Officer at Anglo executive experience American & member of the Executive T o m H ill • Former COO of Endeavour Mining Committee for 8 yrs Finance Director • Chairman of the TAC • Former Senior Advisor to RBC on Metals & Mining • Former Senior Manager within BDO LLP’s natural resources department • Metallurgy, Economics & St e p h e n Be t t s Management Oxford university Er nie N ut t e r Non-Executive Director graduate Non-Executive Director • 12 years’ experience in the resource • Over 40 years’ experience in trading sector • Mining analyst formerly with Capital Group with gold and related businesses in developing countries • Former Director and Managing Director of • Chairman of the Stephen Betts group D a vid St r a ke r - Smit h RBC Capital Markets of companies Non-Executive D i r e c BUNN SHAUN tor • Former Chairman of RBC Dominion Securities • Established several businesses in West SENIOR VP • BSc Geology Africa during his career • Director of London-based investment PROJECT DELIVERY 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 26
www.hummingbirdresources.co.uk +44 (0)20 7409 6660 Hummingbird Resources Plc @HUM_gold enquiries@hummingbirdresources.co.uk hum_gold Hummingbird Resources Plc 27
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