Hummingbird Resources (HUM.L) has now reached a 56% completion level of the construction of the Yanfolila gold project in Mali where it plans to start its pre-production mining activities in the current quarter.
After completing the sale of an additional 10% of the project to the Government of Mali for $11M, Hummingbird purchased the 5% owned by LPMDO for a lowball price of US$1M whilst it also repurchased the 1% NSR for $1M. Both acquisitions look very cheap (after all, the Malian government was willing to pay $5.5M for a 5% stake in the project), and the repurchase of the 1% NSR will have a payback period of less than 2 years as well. Definitely a good move from Hummingbird as this series of transactions is definitely creating value for its shareholders (the 10% sale to the Malian government was obviously inevitable).
With construction almost completed, all eyes will be on the commissioning phase of the Yanfolila gold mine and whilst every project encounters teething issues, we certainly hope commissioning the Yanfolila mine won’t be hit with any major flaws or problems.
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The author has no position in Hummingbird Resources. Please read the disclaimer
