Hummingbird Resources : Interim Results to June 2022

Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

29 July 2022

Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

Hummingbird Resources plc

("Hummingbird" or the "Company")

H1 2022 Interim Results

Hummingbird Resources (AIM: HUM) announces its unaudited results for the six months ended 30 June 2022 ("the period"). The results can be found on the Company's website.

Operational and financial updates for the period

• Sales of US$66.3 million (H1 2021: US$84.0 million) were generated from 35,668 ounces ("oz") of gold sold during
  the period at an average price of US$1,859/oz (H1 2021: 46,809 oz sold at an average price of $1,794/oz), with
  additional US$4.1 million (H1 2021: US$2.6 million) revenue generated from the sale of single mine origin ("SMO") gold
• Adjusted EBITDA of negative US$9.3 million for the period (H1 2021: positive $16.2 million)
• Pre-taxloss of US$23.9 million for the period (H1 2021 loss of: US$3.3 million)
• Net debt of US$60.1 million (inc. gold inventory value of c.US$4.3 million) (H1 2021: net cash of US$12.4 million (inc. gold inventory value of ~US$3.4 million)

Operational and key Company updates for the period:

Updated Company Reserves and Resources1:

• Updated Company Reserves and Resources statements for each of the Company's three gold assets were released during the period (30 June 2022) as forecast

• Company Reserves increased materially to 4.13 million ounces ("Moz") of Au from 1.12Moz as reported in November 2021 and Resources increased 8% to 7.28Moz of Au from the previous statements

1. Yanfolila, Mali: Reserves and Resources total 719 thousand ounces ("koz"), an increase of 13koz (+2%) at 2.85 grams a tonne ("g/t")

1. Kouroussa, Guinea: Reserves and Resources total 647koz at 4.15 g/t, an increase of 238koz (+58%) and 1.20Moz at 3.02 g/t, an increase of 22koz (+2%) since the previous statements respectively

1. Dugbe, Liberia: A maiden Reserve of 2.76Moz and Resources of 4.0Moz was announced by our joint venture partners, Pasofino Gold Ltd ("Pasofino") during the period

Yanfolila, Mali:

• As recently announced in our Q2 2022 operational and trading update, following a low Q1 production quarter, operational results and trends improved during the period. Notably, Q2 2022 production increased 29% from Q1 2022 to 20,013 oz of gold (Q1 2022: 15,548 oz), with improved mining rates (+26%), processing plant throughput (+20%) and mill feed grade (+9%) achieved during the quarter

Kouroussa, Guinea:

• During the period, construction officially begun on the Company's second gold mine, Kouroussa, in Guinea in early January 2022 following the mobilisation of equipment and personnel in December 2021
• Advancement of construction to the important civil works phase of the build process occurred during the period, with the build remaining on time and on budget to meet the scheduled first gold pour by the end of Q2 2023

Dugbe, Liberia:

• The Dugbe feasibility study results were released during the period (13 June 2022) by our joint venture partners Pasofino showcasing a sizeable gold mining project of 2.76Moz of gold in Reserves (4.01Moz Resources) and

strong project economics including a pre-tax NPV5% of US$690 million (US$530 million post-tax), 26.35% IRR (23.6% post-tax), and a life of mine ("LOM") of 14 years, producing 200koz per annum in the first five years

• The Company is currently conducting a strategic review of its options to best realise the maximum value of Dugbe for all stakeholders

Outlook:

• As detailed in the recent Q2 2022 Operational and Trading update, the Company maintains its 2022 guidance of 87,000 - 97,000 oz of gold, forecasting improved H2 production versus H1 2022 levels, in line with our start of year guidance expectations and our current mine plan. Due to ongoing inflationary cost pressures, especially from fuel and consumables, the full year AISC guidance of US$1,300 - US$1,450 per oz will be re-assessed at the end of Q3 and a further update provided at that time

Environmental, social and governance ("ESG") updates during the period:

• Covid-19: The Company's ongoing strict on-site testing, quarantine procedures and overall hygiene protocols performed well during the period, especially during the outbreak of the Omicron COVID-19 variant earlier in the year in mitigating virus spread and any adverse health care issues for our employees. Further, during the period increasing on-site employee vaccinations took place
• Yanfolila, Mali community livelihood and projects: Extension of our current community and livelihood
  programmes took place during the period including: rehabilitating the 27 existing community water boreholes and adding four new water boreholes during the period; on target to add four market gardens to total 16 by the end of 2022, supporting c.1,050 mainly women with income and local food supply; training of 19 people during the period in beekeeping with c.300 litres of honey produced by the local communities in June 2022 for sale and local consumption; and on target to add an additional four poultry farms to take the total to eight by the end of 2022
• Kouroussa, Guinea: During the period, key ESG programmes and initiatives included: Land compensation payments finalised to local communities to allow for mine construction and future mining; ongoing community engagement as the construction progressed; formalising the initial community projects and livelihood initiatives which are being rolled out in H2 2022, including: water supply infrastructure; local community hospital infrastructure improvements and medical supplies; market gardens; and shea butter manufacturing training

• 1. Further at Kouroussa advancement in discussions and final negotiations for the mine sites power contract took place during the period, which we expect to be awarded soon. The power contract will include carbon emission reduction technologies to lower the overall carbon footprint of the mine including a +7Mwh solar plant and heat recover generator units at the processing plant
• World Gold Council ("WGC") Responsible Gold Mining Principles ("RGMPs"): The external assurance audit begun in Q2 for the year three WGC RGMPs requirements. A dedicated Hummingbird ESG team and external consultants are in place to achieve a positive assurance audit report outcome, expected in Q4 this year
• Dugbe, Liberia: During the period the Environmental and Social Impact Assessment ("ESIA") study was being completed, and is expected to be finalised by our joint venture partners, Pasofino in Q3 2022

Dan Betts, CEO of Hummingbird, commented:

"Our first half of the year was a busy period as we focussed on our key deliverables. During the past six months we improved operational performance at Yanfolila, with our Q2 2022 production numbers improving 29% versus Q1 2022; began construction at Kouroussa, with a material amount of progress achieved during the period, including major civil work, operational readiness programmes, contracts and community engagement; released our updated Company Reserves and Resources statements, leading to a material uplift in our Company Reserves now totalling at 4.13Moz and Company Resources of 7.28Moz; and the release of a feasibility study on Dugbe by our joint venture partners Pasofino, showcasing a sizeable gold mining project in terms of reserves and resources as well as strong project economics.

Looking forward, we are committed to following this positive trend. We will continue improving the operational performance at Yanfolila; maintain the positive progress at Kouroussa in terms of timeframe, cost, and quality delivery towards first gold pour at the end of Q2 2023; and make a decision that is aligned with our stakeholders' best interests at Dugbe."

Footnote 1 - All Company Reserves and Resources are shown on a 100% basis. Hummingbird will retain a controlling interest in Dugbe of 51%

**ENDS**

Notes to Editors:

Hummingbird Resources plc (AIM: HUM) is a leading multi-asset,multi-jurisdiction gold production, development and exploration Company, member of the World Gold Council and founding member of Single Mine Origin (www.singlemineorigin.com). The Company currently has two core gold projects, the operational Yanfolila Gold Mine in Mali, and the Kouroussa Gold Mine in Guinea, which will more than double current gold production when production, scheduled for first gold pour end of Q2 2023. Further, the Company has a controlling interest in the Dugbe Gold Project in Liberia that is being developed by Pasofino Gold Limited through an earn-in agreement. The final feasibility results on Dugbe showcase 2.76Moz in Reserves and strong economics such as a 3.5-year capex payback period once in production, 14-year life of mine at a low AISC profile of US$1,005/oz. Our vision is to continue to grow our asset base, producing profitable ounces, while central to all we do being our Environmental, Social & Governance ("ESG") policies and practices.

For further information please visit www.hummingbirdresources.co.ukor contact:

Daniel Betts, CEO	Hummingbird Resources plc	Tel: [phone]
Thomas Hill, FD
Anthony Köcken,
COO
Edward
Montgomery, CSO
& ESG
James Spinney	Strand Hanson Limited	Tel: [phone]
Ritchie Balmer	Nominated Adviser
James Asensio	Canaccord Genuity Limited	Tel: [phone]
Gordon Hamilton	Broker
Bobby Morse	Buchanan	Tel: [phone]
Ariadna Peretz	Financial PR/IR	Email:[e-mail]
George Cleary

Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2022

		Unaudited	Unaudited
		6 months	6 months	Audited
		ended	ended	Year ended
		30	30	31
		June	June	December
		2022	2021	2021
Continuing operations	Notes	$'000	$'000	$'000
Revenue		70,443	86,559	162,777
Production costs		(64,865)	(56,014)	(113,606)
Amortisation and depreciation		(16,945)	(20,325)	(38,317)
Royalties and taxes		(2,447)	(3,383)	(6,297)
Cost of sales		(84,257)	(79,722)	(158,220)
Gross (loss)/profit		(13,814)	6,837	4,557
Share based payments		(2,069)	(1,036)	(1,459)
Other administrative expenses		(5,853)	(4,139)	(10,263)
Operating (loss)/profit		(21,736)	1,662	(7,165)
Finance income		4,679	760	4,071
Finance expense		(5,589)	(2,619)	(6,003)
Share of joint venture loss		-	-	(46)
Reversals in impairment of financial assets		87	42	108
Losses on financial assets measured at fair value		(1,369)	(3,102)	(3,134)
Loss before tax		(23,928)	(3,257)	(12,169)
Tax	5	3,106	(840)	1,617
Loss for the period/year		(20,822)	(4,097)	(10,552)
Attributable to:
Equity holders of the parent		(18,378)	(4,704)	(10,908)
Non-controlling interests		(2,444)	607	356
Loss for the period/year		(20,822)	(4,097)	(10,552)

Loss per share (attributable to equity holders of the parent)
Basic ($ cents)	6	(4.67)	(1.32)	(2.78)
Diluted ($ cents)	6	(4.67)	(1.32)	(2.78)

Consolidated Statement of Financial Position

As at 30 June 2022

	Consolidated statement of financial position		Unaudited	Unaudited	Audited
			30	30	31
			June	June	December
			2022	2021	2021
		Notes	$'000	$'000	$'000
	Assets
	Non-current assets
	Intangible exploration and evaluation assets		92,252	82,062	91,287
	Intangible assets software		182	156	235
	Property, plant and equipment		164,264	143,803	144,591
	Right of use assets		30,358	39,552	35,986
	Investments in associates and joint ventures		129	175	129
	Financial assets at fair value through profit or loss		1,899	2,279	3,530
	Deferred tax assets		7,638	684	3,868
			296,722	268,711	279,626
	Current assets
	Inventory		13,158	16,117	13,148
	Trade and other receivables		37,091	18,520	25,152
	Unrestricted cash and cash equivalents		-	4,558	32,571
	Restricted cash and cash equivalents		3,887	4,379	4,168
			54,136	43,574	75,039
	Total assets		350,858	312,285	354,665
	Liabilities
	Non-current liabilities
	Borrowings		63,180	-	61,812
	Lease liabilities		14,936	25,897	20,962
	Deferred consideration		4,159	5,599	4,627
	Other financial liabilities		9,298	6,836	9,092
	Provisions		22,405	16,157	21,644
			113,978	54,489	118,137
	Current liabilities
	Bank overdraft		5,171	-	-
	Trade and other payables		49,357	50,558	33,708
	Lease liabilities		13,496	12,822	13,496
	Other financial liabilities		15,000	15,000	15,000
	Provisions		-	-	611
			83,024	78,380	62,815
	Total liabilities		197,002	132,869	180,952
	Net assets		153,856	179,416	173,713
	Equity
	Share capital	7	5,827	5,344	5,814
	Share premium		17,425	488	17,425
	Shares to be issued		-	17,407	-
	Retained earnings		122,916	145,794	140,342
	Equity attributable to equity holders of the parent		146,168	169,033	163,581
	Non-controlling interest		7,688	10,383	10,132
	Total equity		153,856	179,416	173,713