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West African gold developer and emerging producer Hummingbird Resources (HUM on the AIM Exchange in London) deserves a critical look from more people in the mining industry, especially in North America. I decided to make a video (just under 13 minutes) to provide some background, and potentially jumpstart a discussion. 

Hummingbird has two assets: 1) The 1.8M oz Yanfolila project in Mali  2) The 4.2M oz Dugbe project in Liberia. A Definitive Feasibility Study (DFS) has been completed for Yanfolila, and a Preliminary Economic Assessment (PEA) has been completed for Dugbe. Yanfolila is the current focus, as it is economic at lower gold prices, and requires less capital for construction. Yanfolila is expected to be constructed within 12-15 months of receiving full financing, which may occur in the coming months. With 106,912,556 shares outstanding and a recent 17.5 pence share price, Hummingbird has a market capitalization of roughly $27 million USD.

Below the video link are notes & links as they are mentioned in the video. You are encouraged to do your own research, and join in the discussion at the bottom of this article page. I plan to add updates to this article page as Hummingbird progresses towards first gold production.

Click here to watch Mining Book Guy's Hummingbird Resources video

Video Notes & Links

45 seconds - Overview of recent Definitive Feasibility Study (DFS) and how little it has been discussed.

1 minute 20 seconds - The only 3 sites I am aware of that HUM is discussed in English:

2 minutes 20 secondsI will build my gold mine, says Brummie Dan Dare, June 2012

A MUST READ

3 minutes 40 seconds - Annual Report for the Year Ending 31 May 2014

pages 3-5 A MUST READ

*NOTE - All Annual Reports and more can be found at this link. I encourage you to spend additional time with these if you are interested in the company.

5 minutes 35 seconds - Timeline

7 minutes - Brief email quotes from Bert Munro, Head of Business Development at Hummingbird Resources

7 minutes 55 seconds - *UPDATE* - February 16, 2016

I am glad to have learned from Bert that a detailed DFS was signed off by MTB for the original optimization study, and signed off by DRA for the recent high-level DFS news release from January 18, 2016. While I would prefer to have access to these detailed DFS reports (as would be expected for companies listed in Canada), I understand there could be some reasons for why these are not made public at this time.

8 minutes - Brief quote from Tim Oliver - @Tim_Oliver at chat.ceo.ca

*NOTE - This section deserves further discussion at the bottom of this article.

9 minutes 35 seconds - February 2, 2016 - Study on Gonka Deposit and Taurus Extension

*NOTE - I speculate that there's a good chance the full funding will be announced by March 8th, 2016. This section will be updated as we approach that date.

*UPDATE* - February 25, 2016

*NOTE - Clearly, my speculation on full funding was wrong. I am disappointed. If it really takes 6 more months for the full funding to materialize, I will be even more disappointed. There is very little information in this news release. Maybe this will end up being a good thing. There could be more going on in the background that can't be commented on immediately, but perhaps in the coming weeks or months. The next step is to get more information directly from the company.

10 minutes - Paraphrasing my comments in the video: 

With high-level analysis, I am optimistic about the company in the short-term (and possibly the long-term). But I question the medium-term (roughly 2 months to 18 months from February 2016). 

10 minutes 30 seconds - Competitors, True Gold Mining & Roxgold

*NOTE - Both companies are more advanced and far more de-risked. However, I believe HUM deserves to be compared to these companies. One could argue that both True Gold Mining & Roxgold should have been more conservative with their discount rates to calculate NPV for their respective Feasibility Studies, as can be seen here and here

The comparison of these companies requires far deeper analysis. This is encouraged at the bottom of this article and elsewhere. As of February 14th, 2016, here is the rough market capitalization of each company:

  • Hummingbird Resources - $27M USD
  • True Gold Mining - $95M USD
  • Roxgold - $189M USD

All errors are my own and will be corrected as needed. Please discuss below! 


*DISCLOSURE: MiningBookGuy owned shares in Hummingbird Resources (HUM on the AIM Exchange in London) until August 2016, and much of the information is biased. MiningBookGuy is currently 'neutral' on the company. MiningBookGuy does not have any relationship with the company, and may buy or sell shares at any time in the future. MiningBookGuy is not a registered investment advisor and advises you to do your own due diligence (DYODD) with a licensed investment advisor prior to making any investment decisions. This company is highly speculative and not suitable for all investors.

This video/article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Actual results may differ materially from those currently anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.