Leading gold producer Hummingbird Resources Plc has secured a significant capital injection of $55 million from Burkina Faso-based Coris Bank International, led by renowned banking tycoon Idrissa Nassa.
The funding is set to fortify Hummingbird Resources’ group operations and drive strategic initiatives in both Guinea and Ghana.
A substantial portion of this funding, approximately $35 million, will be directed toward bolstering the company’s Kouroussa operation, a newly established gold mine in Guinea. This mine recently achieved a significant milestone by producing its first gold during the second quarter of 2023.
The remaining $20 million of the financing will be allocated to support ongoing efforts to stabilize operations at Hummingbird’s Yanfolila operation in Ghana. These funds will be instrumental in the development of the mine’s underground operations, enhancing efficiency and productivity.
Hummingbird Resources has outlined a clear repayment plan, with $77 million of debt slated for repayment in its 2024 financial year, followed by an additional $61 million in 2025. The company aims to settle the remaining balance by the conclusion of its 2028 financial year.
Operationally, the company has shown remarkable improvement compared to the same period last year. In the first half of 2023, Hummingbird produced 51,149 ounces, a substantial increase from the 35,668 ounces produced in 2022. These achievements were made at an average price of $1,927 per ounce, up from $1,899 per ounce in the previous year.
Coris Bank International, under the leadership of Nassa, has emerged as a prominent force in the financial services industry. Its success can be attributed to a unique industrial model tailored to the specific needs of each geographic location it serves.
The bank has recently been identified as a leading contender to acquire shares representing the capital of Banco Comercial do Atlântico de Cabo Verde, currently held both directly and indirectly by the CGD Group. This marks a significant development in Cape Verde’s financial services sector.
As of 2021, the bank reported deposits totaling CFA 859.1 billion ($1.42 billion) and loans amounting to CFA 1.015 trillion ($1.67 billion), highlighting its strong financial position.
This positive trend continued in the first nine months of 2022, with Coris Bank International recording a net income increase from CFA 34.74 billion ($57.8 million) to CFA 43.18 billion ($71.04 million), driven by growth in both interest and non-interest income.