CORPORATE PRESENTATION
June 2020 Update 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 Hummingbird: an overview CASH FLOW-FOCUSSED AFRICAN GOLD COMPANY MALI
• Targeting 110,000-125,000ozs of production in 2020 from Yanfolila Mine, Mali providing stable cash flow leveraged to Bamako Office gold price Kouroussa Gold Project Yanfolila Gold Mine • Strengthening balance sheet, on track to be in a net cash position in 2020 and debt free during 2021 GUINEA • Experienced team with a track record of exploration, project and operational delivery Monrovia office • Large scale gold resource with significant growth potential in LIBERIA Dugbe Gold Project the Dugbe project in Liberia • Earn-in agreement with ARX Resources with the option to take the project to a DFS stage • Focus on growth from existing opportunities in current portfolio and through accretive M&A opportunities • Acquisition of the Kouroussa Gold Project has the potential to double production profile • Near mine exploration upside from Yanfolila and neighbouring permit • Members of the World Gold Council
3 Strategic framework to deliver value & sustainable growth LONG TERM FOCUS ON CASH FLOW GROWTH
Through the process of exploring, developing, producing and growth it is Hummingbird’s strategy to build a significant gold company with multiple assets in varying jurisdictions that can support and fund this cycle of growth
EXPLORE DEVELOP PRODUCE GROW Disciplined investment Proven on time and on 110,000-125,000ozs Cash flow generation in brownfield and budget developers 2020 guidance greenfield targets Capital allocation discipline 574,000ozs+ of Conversion of production currently M&A Resources to Reserves forecast 2020-2024 • Kouroussa Gold Project acquisition High margin • Dugbe / ARX earn-in production agreement
Balance sheet strength 4 2019: First year of profit
STRENTHING THE BALANCE SHEET
Revenue Pre tax profit / (loss) EBITDA (unadjusted) Net Debt EPS
$156.9 million $9.4 million $54.5 million $31.5 million $1.53 cents 2018: $116.5 million 2018: ($11.7 million) 2018: $12.7 million 2018: $39.4 million 2018: ($2.93) cents
Cash & cash eqv. SMO gold sales Gold poured AISC Gold sold
$8.5 million $1.8 million 115,649 oz $986 112,686 oz 2018: $21.5 million 2018: 91,620 oz 2018: $1,087 2018: 91,546 oz
5 Q1 2020 Performance
CASH FLOW-FOCUSSED AFRICAN GOLD COMPANY Improved Operational Performance 40 1,900 35 • 30,282 ozs of gold poured in Q1 2020 (33,892 1,700 ozs in Q4 2019) 30 1,500
25 AISC($/oz) • US$875/oz AISC in Q1 2020 (US$839/oz AISC in 20 1,300 15 Q4 2019) 1,100 10 900
5 Production (000ozs) Production • Average grade of 2.98 g/t in Q1 2020 (2.91 0 700 g/t in Q4 2019) Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
• 24,575 ozs of gold sold in Q1 2020 at an Yanfolila Throughput average price of US$1,568/oz Ore Processed (000 Tonnes)
• 2020 Exploration programme well established 400 with over 1,200m drilling completed so far 300
200 • TRIFR rate of 2.30 (12 month moving average) 100
0 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
6 Yanfolila focussed on increasing cash flow and deleveraging
Strengthening balance sheet, rapid deleveraging plan • Aggressive deleveraging using Total Debt (US$m) operational cash flow Net Debt (US$m) • Full exposure to 60 increasing gold price
50 • Maintaining monthly debt repayments to
40 strengthen balance sheet
30 • On track to be in a net cash position in H2 2020 20
10
0 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021
Net debt incorporates liquid assets (cash and gold) for illustrative purposes
7 Yanfolila focussed on mine life extension
• Current Mine Plan Yanfolila Production with 574,000ozs+ forecast through (000ozs) to 2024 140 • Continuous 120 exploration across mining licence as 100 well as regional exploration 80 licences
60 • Drilling at Komana East underground 40 target will build up
20 the ounce profile to support and 0 expand the 2018 2019 2020 2021 2022 2023 2024 planned trial underground mine
8 2020 Exploration Plan
Drilling Highlights as at 03 June 2020
Komana East Underground Deposit
• 4.3m @ 6.51 g/t from 300.7m depth (KEUGDD001)
• 2.55m @ 6.16 g/t from 254.9m depth (KEUGDD003)
• 3.13m @ 4.21 g/t from 285m depth (KEUGDD003)
• 4.82m @ 10.56 g/t from 289m depth (KEUGDD004)
Bolobi Coura (“BBC”) Deposit
• 4m @ 5.81 g/t from 16m depth (KBCRC0003)
• 4m @ 16.90 g/t from 57m depth (KBCRC0003)
9 Response to COVID-19 global pandemic
Update – 1 June 2020 • Priority remains the safety and wellbeing of staff, contractors, service providers and suppliers • No material impact to production from COVID-19 • Aim to maintain production and cash flows during this unprecedented global event • COVID-19 task force established
• Focus remains on progressing key medium and long-term initiatives • Robust procedures implemented to where possible minimise the potential impact • Short-term strategic objectives to combat the dynamic changes associated with COVID-19 include: • Continuing to support our local communities including donating to 1. Protect and secure the operating environment and local the Government of Mali’s COVID-19 communities fund
2. Protect the health, safety and fitness-to-work of everybody • Supply chains and logistics for people, working at site supplies and parts remain stressed and dynamic requiring close attention 3. Protect and preserve the supply chain • US$10m overdraft facility from Coris 4. Protect and preserve short term liquidity Bank remains available as a precautionary measure
10 ESG: A significant part of Hummingbird’s sustainable growth strategy
Environment Social People and Ethics HSE
• Hummingbird is committed • Hummingbird is committed to • We originally set ourselves the • All accidents are preventable, both to the environment in the building a lasting positive legacy goal to build a mine in Mali that and we aim to achieve Zero communities where we operate for those living in the could be run by locally-employed Harm with every employee, as well as the wider communities where we operate staff and, through strategic training contractor and visitor returning environmental effects of our programmes, management and home safely each day operations • Our community development feedback, have achieved that goal programme centres on positive • Occupational Health and • We are proud to report that of our • The Yanfolila Tailings Storage planning for the future around Safety Management Plans are 40 plant operators, 20% are Facility (TSF) was four main pillars: developed for each and every women commissioned in December o Water & Sanitation operation 2017 and is managed to o Education • As members of the World Gold highest standards o Health Council Hummingbird will adopt its • Impressive Project average o Alternative Livelihoods Responsible Gold Mining LTIR free rate of 1.25 (per 1m • Installation of solar panels and Principles hours) units to three local health • Examples include building 22 • Hummingbird’s unique SMO gold centres in Yallonkoro-Soloba latrines, donating medical provides transparent supply chain equipment to local communities information to the origin and and building a local store standards of production 11 KOUROUSSA GOLD PROJECT AQUISITION Becoming a multi asset producer – acquisition overview EXECUTING ON STATED STRATEGY. THE ACQUISITION OF KOUROUSSA PROVIDES HUMMINGBIRD A LOW COST CLEAR PATHWAY TO BECOMING A NEAR TERM MULTI-ASSET PRODUCER
• >1moz gold asset within the prolific Siguiri Basin in eastern Guinea Overview of the • High grade deposit with resource averaging 3.08 g/t1 Kouroussa Gold • Significant amount spent on development to date and is ready to fast track to production in c.2 years Project (the • Low upfront capital expenditure requirement “Project) • Potential production of c.100,000 oz per annum • Pre-tax NPV10 of $110m2 and IRR of 51%2 (at $1,350/oz gold price) and significant leverage to gold price
• Hummingbird has signed a conditional binding Sale and Purchase Agreement (“SPA”) to acquire Cassidy Gold Guinee S.A (“Cassidy Guinea”) the owner to the Project • Acquisition cost of £16m - low upfront cost of £10m payable in Hummingbird shares, then a deferred consideration of up to £6m, dependent on Reserve growth (or processed if not included in a reserve), to be paid out of Project cashflows Transaction • Shares issued to the Vendor to be subject to 12 month lock-up Highlights • Vendor to retain 2% NSR on all gold produced above 200koz up to 2.2 moz • Completion is subject to customary conditions precedent • The Government of Guinea is entitled to be issued 15% free carried shareholding in the mining company on grant of a mining licence
• Further technical studies / project definition for the next 6 months Development • 3 months financing, permitting and award and mobilisation of key contractors timeline • 12 month construction period
• Acquisition executed at an attractive implied valuation of $22/oz3 Transaction • Turns Hummingbird into a near term multi-asset producer with potential production >200koz pa by 2022 rationale • Significant exploration upside within the Siguiri Basin • Opportunity to leverage construction and operational experience from Yanfolila
13 1. Based on internal estimates. Not JORC compliant 2. Based on internal management estimates 3. EV calculation excludes royalty payment About the Kouroussa Gold Project HIGH GRADE OPEN PITTABLE PROJECT IN GUINEA WITH POTENTIAL TO BECOME A C.100,000 OZ PRODUCING PROJECT WITHIN 2 YEARS
Eastern Guinea (importantly 5 hours drive Location from Bamako)
Orogenic, structurally controlled, high grade Ore body veins
Mining Open pit
Processing 1Mtpa CIL
Resources M,I&I of 1.18moz @ 3.08g/t
Existing Infrastructure with replacement value of infrastructure $20m in place Robust standalone economics1 Exploration High impact targets in prolific belt Pre-Tax NPV10 (US$m) 338 CAPEX $90m 251 Pre-tax NPV 10 $110m (@ $1,350/oz gold price) 162 AISC $807 110 Avg production 100,000 oz per annum
Initial mine life 5 years $1,350/oz $1,500/oz $1,750/oz $2,000/oz
14 1. Based on internal management estimates Attractive valuation relative to recent M&A HUMMINGBIRD PAYING AN IMPLIED <0.3X P/NAV AND AN EV/RESOURCE OF $22/OZ. THIS IS SIGNIFICANTLY BELOW INDUSTRY AVERAGE.
Comparable P/NAV Multiples
Comparable EV/Resource Multiples ($/oz)
x
x
$126 $126 $133 $133
1.4
$118 $118 $118
x
$113 $113
1.3
x
$103 $103
1.2
x
1.1
$89 $89
x
1.0
$84 $84
$81 $81
x x x x
Average: $67 Average:
$76 $76
0.9
0.9
$75 $75 $75
Average: 0.7x Average:
$71 $71
$70 $70
x
$68 $68
0.8 0.8 0.8 0.8
x x x x
0.7
$57 $57
$55 $55
x x x x x
$51 $51
0.6 0.6 0.6 0.6
x x
0.5 0.5 0.5 0.5 0.5
$35 $35 $35
$34 $34
$32 $32
0.4 0.4
x
$20 $20
$17 $17
0.2
$4 $4 $4
Ascot / IDM / Ascot
Ascot / / IDM Ascot
Orla / Pershimco / Orla
Orion / Dalradian / Orion
Zijin / Continental / Zijin
Goldcorp / Exeter / Goldcorp
Endeavour / Avnel / Endeavour
Eldorado / Integra Eldorado
Klondex / Hollister Klondex
Osisko / Barkerville / Osisko
Fortuna / Goldrock / Fortuna Masawa / Teranga
Orla / Pershimco Orla/
Zijin / / Continental Zijin
Teranga / Gryphon / Teranga
Orion / Dalradian Orion
Agnico / 50% CMC 50% / Agnico
Orla / Camino Rojo Camino / Orla
IAMGOLD / Fayolle / IAMGOLD Chulatkam / Kinross
Goldcorp/ Exeter
Goldcorp / Kaminak / Goldcorp
Eldorado / Integra Eldorado
Klondex / Hollister Klondex
Endeavour / Avnel / Endeavour
Northern Star / Echo / Star Northern
Fortuna / / Goldrock Fortuna Teranga / Masawa Teranga
Sandstorm Mariana / Sandstorm
Teranga / Gryphon Teranga
Agnico / 50% CMC Agnico
Orla / Camino Rojo Camino Orla/
Osisko / Barkerville Osisko
PAAS / Pershing Gold Pershing / PAAS
IAMGOLD / Fayolle IAMGOLD /
Goldcorp / Kaminak Goldcorp
Kinross / Chulatkam Kinross
Northern Star / Echo Star Northern
Sandstorm / / Mariana Sandstorm
Wallbridge / Balmoral Wallbridge
Coeur / Northern Empire Northern / Coeur
Agnico / Santa Gertrudis Santa/ Agnico
PAAS / Pershing Gold / PAAS Pershing
Alexendria / OIII Mining Alexendria
Sumitomo / 28% Cote Cold Cote 28% / Sumitomo
Gold Fields / 50% Grruyere 50% / Fields Gold
Agnico / Santa Gertrudis Agnico Coeur / NorthernEmpire
Sumitomo / 28% Cote Cold Cote / 28% Sumitomo Gold Fields / Grruyere Fields 50% Gold 15 Hummingbird as a multi-asset producer RE-RATING OPPORTUNITY. POTENTIAL TO BECOME A >200KOZ MULTI-ASSET, MULTI-JURISDICTIONAL PRODUCER WITH SIGNIFICANT EXPLORATION UPSIDE
Significant increase in production by 2022
Annual gold production (koz) 430
Kouroussa to increase 350 production by +85% 280 235 218 205
118 125 83 54
Caledonia Shanta Gold Hummingbird Roxgold Golden Star Hummingbird + Asanko Gold Perseus Mining Teranga Resolute Mining Kouroussa
Single asset Single asset Single asset Single asset Multi-asset Multi-asset Multi-asset Multi-asset Multi-asset Multi-asset
Transition from single asset to multi asset producer will help narrow P/NAV discount
16 Source: Company Reports; midpoint production guidance for 2020 Kouroussa Exploration Upside
Results from a more in depth data review of the Kouroussa project conducted as part of Hummingbird’s initial due diligence highlighted:
• The high grade nature of the Kouroussa gold system which includes Koekoe, Kinkine, X-Vein and Bag Farm – Junction
• Further upside potential for open pit and underground resources outside of the current stated mineral resource of 1.1Mozs
• The presence of gram metre intervals greater than 100 gram metres
o A sign of the potential world class nature of the Kouroussa gold system
o Further focused exploration is planned to confirm this
• All deposits remain open and further exploration work is required to enable Hummingbird to fully evaluate the potential of the Project
17 Notable drill intersections
Drilling Highlights: Koekoe Deposit X-Vein Deposit • 18.0m @ 70.78 g/t from 30.0m depth (KRC0565) • 13.0m @ 53.04 g/t from 73.0m depth (KD125) • 2.0m @ 151.81 g/t from 52.5m depth (XV004) • 9.0m @ 64.06 g/t from 114.0m depth (KRC1381) • 10.0m @ 17.83 g/t from 188.0m depth (XVRC004) • 20.0m @ 25.97 g/t from 33.0m depth (KRC1378) • 4.0m @ 40.14 g/t from 95.0m depth (XV018) • 6.3m @ 70.72 g/t from 34.8m depth (KD005) • 2.1m @ 64.46 g/t from 110.5m depth (XVDH003) • 8.0m @ 46.73 g/t from 29.0m depth (KRC1570) • 2.6m @ 33.19 g/t from 121.2m depth (XZDH003) • 9.0m @ 43.44 g/t from 55.0m depth (KRC1515) • 14.0m @ 23.90 g/t from 16.0m depth (KRC0027) • 5.0m @ 42.62 g/t from 97.0m depth (KRC1110) • 18.0m @ 13.92 g/t from 77.0m depth (KRC1000) Bag Farm – Junciton Deposit • 12.0m @ 18.26 g/t from 38.0m depth (KRC0975) • 36.0m @ 5.63 g/t from 61.0m depth (KRC1432) • 2.0m @ 88.68 g/t from 81.0m depth (KRC0783) Kinkine Deposit • 5.0m @ 30.21 g/t from 9.0m depth (KRC0752) • 24.0m @ 19.41 g/t from 46.0m depth (KRC0862) • 71.0m @ 2.09 g/t from 22.0m depth (KRC0748) • 12.0m @ 38.67 g/t from 56.0m depth (KRAB0416) • 13.0m @ 7.12 g/t from 35.0m depth (KD174) • 14.0m @ 17.70 g/t from 11.0m depth (KRC0861) • 4.0m @ 47.08 g/t from 88.0m depth (KRC0910) • 35.0m @ 3.81 g/t from 42.0m depth (KRC0828)
18 Hummingbird’s plans for Kouroussa LEVERAGE THE COMPANY’S EXPERIENCE IN YANFOLIA TO DEVELOP A SIMILAR PROJECT
• Advanced development stage as well as scale, mining and processing similarities with Yanfolila will allow to fast track production
• Once further technical studies are completed, targeted during 2020, Hummingbird will then move the Project to production
• Hummingbird’s West African banking partner, Coris Bank International, has confirmed they are fully supportive of the transaction and willing to fund the construction
Targeted Timeline
Q3 ’20 Q4 ’20 Q1 ’21 Q2 ’21 Q3 ’21 Q4 ’21 Q1 ’22 Q2 ‘22
Funding, Commissioning Transaction Completion, Detailed Contractor Construction & Engineering & Design Award & First Gold Mobilisation
19 Guinea as a mining jurisdiction GUINEA HAS A WELL ESTABLISHED MINING CODE AND EXISTING OPERATING MINING SECTOR
The Mining Code One of the top African gold exporters
• Final amendments to the “new” code were promulgated in April 17.9 2013 • The Government has the right to 15% non-dilutable free-carried interest and to acquire up to a further 20% interest for cash • These are maximum levels of Government participation – final terms 10.0 in every case to be negotiated individually in a Mining Agreement between the Government and the mining company 4.3 2.6 2.8 1.7 1.9 2.0 Mining in Guinea 0.6 0.6 0.6 0.8 0.8 0.9 1.0
• Mining accounts for over 70% of the country’s exports Mali
Niger Libya
Egypt
Sudan Ghana
• Several “majors” are already present in the country Guinea
Senegal
Uganda
Rwanda Tanzania
• Deposits of bauxite, iron ore, gold and diamonds with significant Zimbabwe
Ivory Coast Ivory South Africa South geological potential Faso Burkina
Transitioning to democracy
• Guinea’s first democratic presidential elections were held in November 2010 and parliamentary elections were held in September 2013 • Guinea subsequently received increased support from global institutions including the UN, the World Bank, the IMF and the EU
20 Source: The Observatory of Economic Complexity (2018), World Bank, Fraser Institute Survey, Market Intelligence Companies invested in Guinea
21 MALI –YANFOLILA GOLD MINE The Yanfolila Gold Mine HIGH-GRADE PRODUCING GOLD MINE
• Built on time and on budget
• High grade deposit: Reserve base of 675.9koz at 2.66 g/t from over 2Moz Resource*
• Carbon-in-leach process plant with current blended ore throughput capacity of up to 1.4 Mtpa following successful completion of second ball mill in 2019
• Production ramp-up achieved with 116,000 ounces poured in 2019
• Significant scope to increase Reserve base and Life of Mine through on-going near mine exploration and underground development
• TRIFR rate of 2.30 (12 month moving average)
* As at 31st October 2019
23 Reserves & Resources SIGNIFICANT RESOURCES TARGETED FOR RESERVE CONVERSION AT THE YANFOLILA PROJECT
CURRENT GOLD INVENTORY Category Tonnes (Kt) Grade (g/t) Gold (oz) Current Reserves* 7,890 2.66 675,900 Total Mineral Inventory ** 27,952 2.23 2,005,300
*JORC compliant figures at 31 October 2019 ** Including non-JORC compliant figures at 31 March 2019
KOMANA WEST PIT KOMANA EAST PIT
SANIOUMALE WEST PIT GONKA PIT
24 Yanfolila mine life upside
Over 1Moz of Indicated and Inferred Resources outside the current mine plan. Historical Resource to Reserves conversion rate of 55%
2020 Exploration Programme to convert significant Resources to Reserves:
1. Sanioumale East & West: Oxide, Medium - High grades, open pitable, remain open along strike and depth into the fresh rock. Sanioumale East not yet in reserves, intersections such as 10.5m at 5.4 g/t gold from hole SNDD0029, which require follow up work, demonstrate future resource growth 2. Komana East Underground: High grades, underground potential not currently in Reserves. Drilling to date has intersected and confirmed the presence and continuity of mineralisation that extends beyond the previous limit of the resource model 3. Greenfields targets: Located within 5-8kms from process plant, targeting high grade oxide ore
25 LIBERIA – DUGBE GOLD PROJECT
26 Dugbe Gold Project: Liberia OPTIONALITY AND SCALE TO DRIVE PORTFOLIO GROWTH
• Two deposits containing Mineral Resources of 2.0 PEA2 $1,300 /oz AU $1,500/oz AU Moz Gold at 1.5 g/t Indicated and 2.2 Moz Gold at 1.3 g/t Inferred with 3rd mineralised deposit drilled Cash cost/oz (years 1-5) $749 $759
• Located 70 km by road from Greenville deep-water Cash cost/oz (LoM) $894 $904 port. There is also an airstrip located just outside the city Capex (m) $212 $212
• Positive PEA1 in varying gold price environment NPV (m) (10%, post tax) $186 $337
• High annual production forecast of 125Koz Gold IRR (%) 29 43 • Long mine life of 20 years Strip ratio (years 1-5) 2.4:1 2.4:1 • Mineral Development Agreement (MDA) passed Gold produced/year (oz) 125,000 125,000 into law in Q2 2019 • 2,355 km2 under MDA for 25 years, with 140 exploration targets
• Earn-in agreement with ARX Resources to develop project
• Over $70 million spent on the Dugbe Project to date
1. A preliminary economic assessment is preliminary in nature and include inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Additionally, inferred mineral resources are subject to uncertainty as to their existence and their economic legal feasibility. See “Disclosure” on page 1 and “PEA Assumptions” in the Appendix. 2. PEA on Dugbe 1 Project prepared by Wardell Armstrong, April 2013 (3.5 Mtpa plant tank leach, owner operated case). Mineral Resources that are not mineral reserves do not have demonstrated economic viability. 27 ARX Resources Limited - earn-in agreement Unlocking shareholder value in Libeira ARX Team • Experienced and proven team in Transaction Highlights developing mines, with significant • US$2m nonrefundable deposit by ARX experience in west Africa • Earn-in up to 49% economic value of the Project • 2 year earn-in period but right to extend by 12 months for payment of US$1m per • Founded by Stephen Dattels, month former Executive Vice President • Hummingbird representation on ARX board to ensure alignment of interests with and a Director of Barrick Gold Hummingbird shareholders Corporation, and Michael Beck, a Earn in Conditions / Development plan former partner of N. M. Rothschild • 2 year term & Sons • Delivery of Definitive Feasibility Study (DFS) with ARX covering all related costs • The development of Dugbe will • Undertaking a mutually agreed exploration programme of circa US$10m with be led by Ian Stalker and his the objective of materially increasing the known resource base of the Project technical team • ARX to cover overhead and operating costs associated with the Project during the 2 year earn-in period • Ian has many years of "hands on" experience in mine development Strategic Rational and operations in Europe, Africa • Retained control whilst working with a highly experienced team with significant and Australia, including, the West African experience who share our vision for unlocking the significant Obuasi expansion for Ashanti intrinsic value at the Dugbe Project Goldfields in Ghana, the Siguri • Hummingbird shareholders retain the significant upside potential in the project Mine in Guinea, the Bibiani Gold (currently not valued in the share price) whilst not shouldering the capital risk Mine in Ghana and the Geita allowing the free cash flow generated from Yanfolila to be deployed as part of Gold Mine in Tanzania the wider group capital allocation strategy
28 Regional geology
• A major crustal scale shear zone traverses the Dugbe project licence area in a NE-SW orientation, referred to as the Dugbe Shear Zone (DSZ)
• Dugbe Shear Zone is a highly attractive mining region
• Hummingbird explored 12,000 km2 before defining the Dugbe Project area
• The area of Birimian-age rocks is recognised as the second largest gold producing area in the world
• Licence area seen as one of the last remaining unexplored regions of the Birimian
29 Exploration history
• The Dugbe Project MDA comprises four exploration permits: Dugbe, Joe Village, Nemo Creek and Tiehnpo
• Grassroots exploration conducted between 2006 and 2014 included:
• Stream sampling
• Soil sampling
• Airborne and ground geophysical surveys
• Topographic surveying (LiDAR)
• Trenching
• Diamond and RC drilling
• RAB drilling
OVER $70M SPENT ON DUGBE PROJECT
30 Mineral resources
Tuzon represents first 10 years of mine life in PEA
Tonnes Grade Ounces (m) (g/t) (m)
Tuzon1 (US$1,500 pit)
Indicated 41.8 1.51 2.03
Inferred 10.2 1.32 0.44
Dugbe F2
Inferred 43.0 1.28 1.76
Notes: 1. SRK Consulting (UK) Limited, Mineral Resource Statement for the Tuzon deposit with an effective date of March 5, 2014. 2. Wardell Armstrong, Mineral Resource Statement for the Dugbe F deposit with an effective date of March 1, 2013. 3. Mineral Resources are not Mineral Reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study. The contained Au represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery. See Mineral Resource Estimate table in the Appendix for further details.
31 BEST IN CLASS – RESPONSIBLE MINING
32 Responsible mining
BUILDING A LASTING LEGACY & MAKING A SUSTAINABLE CONTRIBUTION TO OUR LOCAL COMMUNITIES
A TARGETED, YEAR-ROUND PROGRAMME TO ENHANCE LOCAL LIVING. THIS INCLUDED:
• Supporting the development of four market gardens across four villages, Kona, Fougathié, Bandiougoufara and Soloba
• Building a store in Donsosso as part of our continued support of soap-making as a business for members of the local community to sell to market and the mine camp
• The construction of 22 latrines in partnership with other organisations in Bandiougoufara
• The donation of medical equipment in Soloba and Sere Moussa Ani Samou, two local municipalities
• The implementation of a beekeeping project in partnership with the Federation of Honey Producers of Mali, along with the training of 10 people on honey production techniques in the villages of Soloba, Bandiougoufara and Fougathie
33 SUMMARY SUMMARY
• Strong mine economics, including high future cash flow from Yanfolila Gold Mine
• Strengthening balance sheet, rapid deleveraging
• Significant gold inventory, with total 6Mozs in West Africa
• Focus on extending Yanfolila mine life
• Executing on growth strategy
• Backed by strong institutional shareholders
• Team with proven track record
35 36 The Hummingbird Board Dan Betts CEO • Founded Hummingbird in 2005 • Developed the business from a private explorer to a listed company with 6Moz+ gold Russell King • 18 years’ previous experience in metals Attie Roux Non-Executive Chairman industry 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 • Former COO of Endeavour Mining Committee for 8 yrs Tom Hill 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 & Stephen Betts Management Oxford university Ernie Nutter 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 RBC Capital Markets • Chairman of the Stephen Betts group David Straker-Smith of companies Non-Executive DirectorSHAUN BUNN • Former Chairman of RBC Dominion Securities • Established several businesses in West SENIOR VP • BSc Geology Africa during his career • Director of London-based investment research and advisory firm,PROJECT CrossBorder DELIVERY 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 37 Peer Comparison
UNDERVALUED AGAINST OUR PEERS
P / NAV (x) EV / Resource ($/oz) 1.60x $700 1.38x 1.40x $599 $600 1.16x 1.20x 1.13x 1.14x $512 1.04x $500 0.96x $436 1.00x $400 0.80x $295 0.58x $300 $264 0.60x 0.54x 0.54x 0.44x $201 $200 0.40x $114 $103 0.20x $100 $67
nm $-
Shanta Shanta
B2Gold B2Gold
Roxgold Roxgold
Perseus Perseus
IAMGold IAMGold
Resolute Resolute
Centamin Centamin
Endeavour
Asanko Asanko Gold Asanko Gold
Hummingbird Hummingbird
38 Source: Thomson Reuters and Canaccord Genuity Limited Note: prices as at 25 June 2020 Capital Structure COMPETITIVE VALUATION & STRONG ANALYST COVERAGE
AT A GLANCE: AIM:HUM SIGNIFICANT SHAREHOLDERS (%)
Market Cap (at 02.06.2020) US$ 130M Sustainable Capital Cash and gold inventory (at 31.03.20) US$ 25M (unaudited ) 12% Debt repaid during Q1 2020 US$ 6M Ruffer Debt total at end Q1 2020 US$ 34M 9.21%
Ordinary shares in issue 354,155,878 Jupiter Other 5.65% BROKER COVERAGE 49.25% Odey CANACCORD GENUITY MIRABAUD 4.67%
Aberdeen Standard C E N K O S BERENBERG 4.61%
Majedie 4.27% M&G Management Schroder 3.82% 3% 3.52%
39 THE STORY TO DATE A DISTINCTIVE & FOCUSED JOURNEY FROM EXPLORERS TO PRODUCERS
2010 2014 June 2016 April 2018 May-July May –June 2020 Listed on Acquisition of US$76m Commercial 2019 - Earn-in agreement AIM with Yanfolila Gold equity raised production 2nd Ball to develop Dugbe 812koz Au Project from to fund begins Mill - Exploration Resource: Gold Fields for construction complete continues at Dugbe US$20m & MDA at Yanfolila to Dugbe increase LoM - Sign SPA to Acquire Kouroussa
Jul 2018 Jan 2020 2005 Feb 2016 Exploration drilling 2019 production Founded 2014 Yanfolila Gold begins at Yanfolila guidance met with by Dan Dugbe Project DFS Dec 2017 across a number 115,659ozs Betts to Resource (US$1,250 AU) First gold pour at of deposits to 2020 guidance set explore in grows to NPV=US$162m Yanfolila Gold target LoM at 110,000-125,000 Liberia 4.2Moz Au IRR=60% Mine increase ozs
40 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
41 www.hummingbirdresources.co.uk
+44 (0)20 7409 6660 Hummingbird Resources Plc @HUM_gold
[email protected] hum_gold Hummingbird Resources Plc
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