LONDON — London-listed junior miner Hummingbird Resources is exploring for opportunities and investigating derivatives to manage gold price risk, as it brings online a Malian mine its much bigger previous owner Gold Fields rejected.
Hummingbird’s shares have risen by more than 80 percent this year, boosted by anticipation its Yanfolila project will produce the first gold on schedule in December.
When the sector was recovering from the commodity crash of 2015-16, Hummingbird raised debt and equity to cover the roughly $88 million (£66.40 million) capital expenditure needed for Yanfolila, which it began to build last year.
It acquired the project from Gold Fields in 2014 for $21 million in the form of Hummingbird shares.
“It was a small project for a major but a big project for a junior. For us it was an amazing opportunity,” Hummingbird Chief Executive Dan Betts said in an interview.
“We’re 14 months into a 17-month project and everything is in place for first gold.”
Betts said he could be interested in other orphaned assets, as projects that don’t fit into big miners’ portfolios are known. The advantage for juniors is initial investment and work has taken place.