Canaccord initiates coverage on Hummingbird with 'buy' rating

Hummingbird, which has stakes in two assets, was issued with a target price of 50p after its Yanfolila mine, in which it holds an 80% stake, in Mali declared commercial production over the last quarter at a run rate of roughly 120,000 ounces per year.

Meanwhile, Liberia's Dugbe, a 90%-owned project, has progressed its definitive feasibility study as the company continued to assess strategic options in the region.

"With over 100,000 ounces of current production, a likely LOM extension coming at Yanfolila and stakes in other West African assets, we think HUM represents good strategic value," the broker noted.

Canaccord forecast an EBITDA of around $50m in 2018 and $60m for the following year on an average margin of 40-45% during those first two years of operations.

"With Yanfolila now in production we value HUM similarly to other miners," the analysts continued, estimating fair value at 45-55p on this basis, with over 50% potential upside to its price target.