Hummingbird Rises in London After Doubling Gold Resources

Hummingbird Resources Plc (HUM), owner of gold exploration licenses in Liberia, rose to the highest in 13 months after more than doubling its total gold resources.

Hummingbird shares jumped as much as 9.5 percent to 172.5 pence in London, the highest since December 2010. The company raised its total gold resources to 3.7 million ounces today after announcing it has an additional 2.05 million ounces at the Tuzon pit in eastern Liberia.

“This delivers the kind of scales sufficient to justify a multi-open pit mining complex,” Dominic O’Kane, an analyst at Liberum Capital Ltd. in London, said in a note to investors. “Hummingbird has only drilled about 1 percent of its 7,000 square-kilometer holdings; it has potential to uncover a new gold province.”

The company would go ahead with building a mine once resources exceed 3 million ounces, Managing Director Daniel Betts said last month. It needs to raise about $40 million to complete feasibility studies, which would take about two years.

Hummingbird will then need two years to finish construction at a cost of $200 million to $250 million, Betts said. The company aims to have annual production of 200,000 ounces of gold with a mine life of about 15 years, he said.

“Its drilling has a remarkable success rate and with its unrivaled regional potential, Hummingbird is a small cap conviction,” Liberum said. “ Calculated on peers’ average traded value of $125 an ounce for indicated and $43 ounce for inferred,” 352 pence a share is a fair value for the company.

The shares were up 6 percent to 167 pence at 10:21 a.m., valuing the company at 89 million pounds ($140 million).

To contact the reporter on this story: Firat Kayakiran in London at

To contact the editor responsible for this story: John Viljoen at

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