Shares of Hummingbird Resources PLC (LON: HUM) rose 4.11% after the gold mining company released its audited annual results for the 2020 financial year.
The company’s revenues rose to $185.1 million compared to 2019’s $156.9 million, with its pretax profits rising to $26.3 million versus last year’s 9.4 million. The gold miner’s EBITDA was $75.2 million, a significant improvement to 2019’s $54.5 million.
Investors cheered Hummingbird’s excellent results, but its share price did not rally as much as expected, largely because the shares rallied 8.5% yesterday, bouncing off the support level shown below.
Hummingbird also achieved other milestones, such as signing an earn-in agreement with Pasofino Gold Ltd (“Pasofino”) to fund the exploration and development work at the Dugbe Gold Project in Liberia in June 2020.
The miner also completed the acquisition of the Kouroussa Gold Project in Guinea and was granted a mining license in May 2021. The company also agreed to adhere to Responsible Gold Mining Principles (“RGMPs”) after joining the World Gold Council in June 2020.
From a technical perspective, Hummingbird shares bounced off the 20p support level yesterday and are headed higher at the moment. Traders with a bullish bias should wait for the stock to cross above the 24p level before opening new positions.
Hummingbird Resources shares could also drop back to retest the 20p support level, which is likely to hold, creating an excellent bullish trade setup.
The miner’s fundamentals are quite promising as it moves ahead with exploring the Kouroussa Gold Project in Guinea, and the Dugbe Gold Project in Liberia, while operating the Yanfolila Gold Mine in Mali, which supports the bullish thesis.
*This is not investment advice.
Hummingbird Resources share price.
Hummingbird Resources shares rose 4.11% to trade at 23.30p, rising from Wednesday’s closing price of 22.38p.
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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading