Aim-listed gold miner Hummingbird Resources held net cash, including gold inventory value, of $4.9-million at the end of the first quarter, an improvement on the $1.5-million held by the end of the fourth quarter of 2020.

It had also repaid $8.6-million worth of debt during the first quarter.

The miner expects to repay the remaining outstanding debt of $4.6-million during the second quarter of the year, thereby moving the company into a debt-free position.

Hummingbird poured 22 781 oz of gold in the first quarter of this year, up from the 22 012 oz poured during the fourth quarter of 2020.

It sold 22 019 oz, at an average realised price of $1 788/oz.

All-inclusive sustaining costs marginally decreased from $1 496/oz in the last quarter of 2020, to $1 494/oz in the quarter under review, as a result of relatively low planned quarterly production and mill grades, a high strip ratio as Hummingbird accesses the Komana West orebody in particular, and sustaining capital expenditure being weighted to first half of the year, including the tailings storage facility dam lift.

CEO Dan Betts says that, although the first quarter was slow in terms of production, it was nonetheless in line with forecast projections that the 2021 production profile would be weighted to the second half of the year.

“We expect production numbers to improve during the second quarter. Also, we expect our all-inclusive sustaining cost profile to improve from current levels, in line with improving production levels.”

Hummingbird maintains its output guidance at between 100 000 oz and 110 000 oz of gold for the full-year, with all-inclusive sustaining costs estimated to be between $1 250/oz and $1 350/oz.

During the quarter, the company appointed COO Anthony Kocken, who has more than 23 years’ experience, working predominantly on projects in Africa. “[We] look forward to his valuable input as he uses his extensive operational and African expertise to help drive both operational improvements at Yanfolila and progress at Kouroussa,” says Betts.

He adds that Hummingbird also welcomed Luke Main as group people and performance officer during the quarter.

PROJECTS

Hummingbird’s Yanfolila exploration resulted in the delivery of an internal mineral resource estimate update in the first quarter, followed by significant drilling results at the Sanioumale East and Komana East deposits. Both highlighted upside life-of-mine potential at Yanfolila, the company reports.

The company’s Guinea-based Kouroussa project also received its preliminary front-end engineering design, infrastructure layout and capital expenditure estimates during the quarter. Currently, these are being reviewed and enhanced before they can be finalised, while the company awaits the award of the mining licences from the Guinea government, which are expected to be issued shortly.

In relation to security in the region, Betts says Hummingbird is mindful of recent unrest and is closely monitoring the situation. “We remain in close contact with the government and do not believe the environment currently poses any material risk to our project timelines and development plans.”

For its Liberia-based Dugbe project, Hummingbird reports that its earn-in partner Pasofino Gold made material progress in delivering a definitive feasibility study, releasing successful exploration drilling results for the Dugbe F deposit and completing on key infrastructure plans.

He adds that Hummingbird also progressed its environment, social and corporate governance initiatives, in particular around important water infrastructure improvements at several locally supported villages.