Aim-listed gold miner Hummingbird Resources reports that although its revenue of $87-million for the six months ended June 30 was lower than the $92-million of the corresponding period in 2020, its all-inclusive sustaining costs (AISC) had improved quarter-on-quarter to $1 386/oz in the second quarter of this year.

During the interim period under review, the miner produced 46 809 oz of gold, which was sold at an average price of $1 794/oz.

As such, Hummingbird had adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of $16.2-million, which was down from the Ebitda of $39-million for the corresponding period in 2020.

This resulted in a pre-tax loss of $3.3-million for the period, compared with a profit of $23.8-million in the prior comparable period.

Going forward, Hummingbird says its full-year guidance expectations will be weighted towards the second half of the year, with its full-year guidance being maintained between 100 000 oz and 110 000 oz of gold being produced at an AISC of between $1 250/oz and 1 350/oz of gold sold.

As at the end of the period, Hummingbird had net cash of $12.4-million, including a gold inventory value of $3.4-million, with $4.7-million of final debt repayments made during the second quarter.

This takes the company into a debt-free position, compared with the net debt of $20-million held in the first half of 2020.

Hummingbird CEO Dan Betts says the company’s key focus in the period centred around productivity and predictability improvements at Yanfolila, in Mali, which was reflected in Hummingbird’s second-quarter operational results, with gold ounces poured and AISC improvements compared with the first quarter.

“Our new COO started in the first quarter and has settled into the role, having been to site and [been busy] implementing a number of processes and protocols aimed at cost reduction and productivity improvements across the business,” he adds.

Meanwhile, Betts says the company’s growth project – Kouroussa in Guinea – advanced in the first half of the year, and with the granting of the mining licences in May, Hummingbird’s dedicated project management team is now finalising capital expenditure estimates. This, he says, will enable completion of financing and then the start of construction.

DEVELOPMENT & EXPLORATION

At Hummingbird’s Yanfolila mine, about 32 500 m of the 44 600 m forecast for the year were drilled in the first half of the year, with significant drill hole intercepts reported.

This compares with the about 21 000 m drilled for the whole of 2020.

The miner reports that the majority of assays from the first half’s drilling campaign are awaiting results from the laboratories in Bamako, the results of which Hummingbird anticipates to release in the second half of the year, along with final drilling programmes. 

As for the environment, Hummingbird reports that its Tree Initiative continued to support local village nursery programmes in the first half of the year, now with over 10 000 trees ready to be used in the coming months for the company's yearly 20 ha rehabilitation programme.

In addition, Hummingbird’s Market Gardens project saw the company successfully complete key infrastructure for its local market garden  – a market centre for trading of fruit, vegetables and poultry from locally supported village market gardens, which was completed in the second quarter.

This takes the total Hummingbird-supported market gardens to ten.

The markets now provide employment for over 800 people, mainly women, from the local communities.