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Are you an investor interested in adding mining stocks to your portfolio? If so, you may have encountered the Hummingbird Resources PLC.

With gold prices fluctuating, keeping an eye on the HUM share price can help investors determine ideal times to buy or sell Hummingbird Resources stock. 

This article will discuss key factors that impacted the HUM share price in 2023 and provide an investor’s guide to understanding Hummingbird stock.

 

Overview of Hummingbird Resources

Hummingbird Resources was founded in 2005 and has been listed on the London Stock Exchange since 2010 under the ticker HUM. The company has focused on advancing its Yanfolila mine, which poured its first gold in December 2017. 

Yanfolila has ramped up to commercial production levels above expectations, providing steady gold output for Hummingbird.

In addition to Yanfolila, Hummingbird owns a stake in the Dugbe gold project in Liberia. Dugbe has an estimated resource of 4.2 million ounces of gold, which could represent significant future growth for the company. 

Hummingbird Resources also has exploration grounds in Mali, Guinea, and Cote d’Ivoire.

 

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HUM Share Price Performance in 2023

 

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The share price of Hummingbird Resources PLC fluctuated throughout 2023, increasing and decreasing throughout the year. The HUM share price started the year relatively stable in January and February, trading between 7.50p and 8.90p.

The HUM share price rose to 10.00p in March, indicating the company’s growing investor interest and optimism. This upward momentum continued into April when the stock hit its peak for the year at 16.31p. The rising share price in early 2023 is likely to reflect positive financial results, new mining developments, or other favourable news about Hummingbird Resources.

After hitting its high in April, the HUM share price tumbled through May and June, falling to 12.75p by the end of June. This significant decline of over 25% from the April high suggests investors became more cautious about the company’s outlook and prospects. 

Unfavorable market conditions in the mining sector or disappointing quarterly results from Hummingbird Resources may explain the falling share price.

The stock remained relatively depressed in the 12p to 16p range from July through September. It recovered somewhat in October and November, trading between 10p and 13p. However, it failed to reach its previous highs. The HUM share price closed out December at 10.25p, well below the yearly high of 16.31p in April.

While Hummingbird Resources saw periods of rising share prices in 2023, the stock lost considerable value over the year, indicating a weakening investment outlook for the company. 

You might also like to read: Wetherspoons Share Price - A Quick Market Overview

 

HUM Share Price Outlook for 2024

Heading into 2024, analysts expect continued volatility in the HUM share price as the company progresses its growth projects and deals with challenges in the operating environment.

Key factors that could impact Hummingbird’s share price performance in 2024 include:

  • Yanfolila Underground Development: The underground mine at Yanfolila is expected to start producing gold in 2024, boosting overall output. However, delays could negatively impact the share price.
  • Dugbe Project Advancement: Hummingbird aims to complete feasibility studies for Dugbe in 2024. Positive results could lift the share price.
  • Production Costs: Managing inflationary pressures will be crucial for Hummingbowl’s profit margins. Rising costs could squeeze earnings.
  • Gold Prices: After rallying to record highs in 2022, most analysts see steadier gold prices in 2024, which should provide a neutral backdrop for the Hum share price.
  • Geopolitical Climate: Improving stability in Mali and continued progress in Liberia would support Yanfolila operations and investor confidence in Hummingbird.
  • Financial Performance: Strong free cash flow generation driven by Yanfolila production could allow Hummingbird to pay down debt, fund growth, and reward shareholders in 2024.

With gold fundamentals still favourable but global growth potentially slowing, analysts expect the HUM share price to trade range-bound in the 10-15p level but with periodic volatility spikes. 

The delivery of the Yanfolila underground and Dugbe project milestones will be pivotal share price catalysts to watch in 2024.

For further information, read this article: How Do You Trade Gold CFDs?

 

Investing in Hummingbird Resources Stock

 

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For investors interested in gaining exposure to gold through mining stocks like Hummingbird Resources, here are some tips:

  1. Closely track gold prices and market trends as they significantly sway HUM share price movements. Periods of rising gold prices present good opportunities to buy Hummingbird stock.
  2. Thoroughly research Hummingbird’s assets, production track record, costs, mining prospects, and management team. Understand their long-term growth strategy.
  3. Review Hummingbird’s quarterly results and guidance. Look for steady, low-cost production from Yanfolila to support cash flow generation.
  4. Follow news from Mali and Liberia for any political or social instability that could disrupt Yanfolila operations and impact the Hum share price.
  5. Talk to brokers, read analyst reports, and build financial models to determine a fair valuation and price target for Hummingbird stock.
  6. Time entries and exits are based on momentum in gold prices, commodity market trends, Hummingbird’s results, and overall investor sentiment.
  7. Maintain a long-term outlook and be prepared to hold through periods of volatility. Gold mining stocks can see wide swings.
  8. Diversify across multiple mining stocks and commodities to manage risk associated with concentrating investment in a single company.

Expand your knowledge with this write-up: How to Become a Professional CFD Trader

 

To Recap Briefly

While Hummingbird Resources presents an opportunity to gain exposure to gold through its mining operations, the high volatility of the HUM share price underscores the risks involved with investing in mining stocks. 

The stock saw major swings in 2023 and could continue to experience significant price fluctuations in 2024 as Hummingbird executes on key projects and deals with challenges. 

Traders should thoroughly research the company, closely track gold prices and mining industry trends, and time entries and exits carefully.

Diversification is critical, as concentrating investment in a single mining stock like HUM can expose traders to uncompensated company-specific risk. The potential for high rewards comes with equally high risks in the mining sector. 

Interested investors are encouraged to diligently study Hummingbird Resources and its share price dynamics before trading on this speculative gold mining stock.

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“When considering “CFDs” for trading and price predictions, remember that trading CFDs involves a significant risk and could result in capital loss. Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be considered investment advice.”

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