Aim-listed Hummingbird says it is on track to meet its production guidance of between 80 000 oz and 90 000 oz of gold, following a strong first half of the year.
The company may increase the yearly guidance, once its Kouroussa project nears steady-state production.
The Kouroussa mine, in Guinea, started producing gold in June, with regular gold pours having started in July. The operation is expected to produce about 30 000 oz in the second half of the year.
Meanwhile, production from the Yanfolila mine, in Mali, totalled 23 885 oz in the second quarter of the year, which marked a 19% increase on the previous year’s second quarter.
Production from the mine on a six-monthly basis increased by 44% to 51 147 oz in the first half of the year, compared with the 35 561 oz produced in the first half of last year.
Hummingbird has also managed to lower its all-in sustaining cost (AISC) to $1 234/oz in the quarter under review, which is 34% lower than the second quarter of last year’s AISC of $1 859/oz.
In the reporting quarter, the company sold 24 770 oz of gold at an average realised price of $1 981/oz, compared with an average realised price of $1 927/oz for the first half of the year, and an average realised price of $1 819/oz in the first half of last year.
Group-adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of $15-million in the second quarter, as well as Ebitda of $33-million for the first half of the year, marked a turnaround in the negative Ebitda of $2.3-million reported in the second quarter of last year, as well as the negative Ebitda of $9.3-million reported in the first half of last year.
Meanwhile, Hummingbird says a strategic review of the Dugbe project, in Liberia, remains ongoing in partnership with the company’s joint venture partner, Pasofino Gold.
CEO Dan Betts comments that the reporting quarter rounded off a six-month period that has seen a strong performance by the company and the Yanfolila mine performing more in alignment with mine plans.
A core focus for the company in the remainder of the year will be to implement exploration plans to extend the life-of-mine at both Yanfolila and Kouroussa.