Aim-listed Hummingbird Resources’ production increased by 29% quarter-on-quarter to 20 013 oz of gold in the second quarter at the Yanfolila mine in Mali, with improved mining rates, processing plant throughput and mill feed grade achieved during the quarter.

All-in sustaining cost (AISC) reduced by 17% quarter-on-quarter to $1 859/oz, primarily owing to improved production.

Inflationary pressures are being felt, especially from fuel and consumables, in line with what is being experienced in the mining industry globally, Hummingbird says. However, the company expects a continual improvement in the AISC profile from current levels for the remainder of the year.

Hummingbird sold 20 490 oz of gold in the period at an average realised price of $1 851/oz. The company held 2 418 oz of gold inventory at period-end, valued at about $4.3-million.

During the quarter, construction at Kouroussa, in Guinea, advanced into the important civil works phase of the build process, Hummingbird outlines.

The build remains on time and on budget to meet the scheduled first gold pour by the end of the second quarter of 2023.

The final feasibility study results for Dugbe, in Liberia, were released on June 12 by the company’s joint venture partners Pasofino Gold, showcasing a sizeable gold mining project of 2.76-million ounces of gold in reserves and strong project economics.

As indicated in June, Hummingbird is currently conducting a strategic review of its options to best realise the maximum value of Dugbe for all stakeholders.

Updated company reserves and resources estimate statements for each of the company’s three gold assets were released during the quarter.

Company reserves increased materially to 4.13-million ounces of gold from 1.12-million ounces as reported in November 2021 and resources increased by 8% to 7.28-million ounces of gold from the previous statement.

Hummingbird maintains its full-year guidance of 87 000 oz to 97 000 oz of gold, forecasting improved second-half production compared with the first-half levels, in line with the company’s start-of-year guidance expectations and its current mine plan.

Owing to ongoing inflationary cost pressures, especially from fuel and consumables, the full-year AISC guidance of $1 300/oz to $1 450/oz will be reassessed at the end of the third quarter and a further update provided at that time.

“For the second quarter, we saw production improvements at Yanfolila; ongoing construction progress at Kouroussa with major civil works taking shape towards first gold pour the end of 2023; release of our updated company reserves and resources statements showcasing life-of-mine extensions providing real long-term value for the company, coupled with a major milestone being achieved with the release of the feasibility study on Dugbe by our joint venture partners Pasofino.

“Despite macro conditions from inflationary pressures being seen across the board, we remain focussed on maintaining an improving production profile through half two of 2022 at Yanfolila, which should compensate for most of these pressures, coupled with ongoing optimisation and cost reduction strategies being implemented at Yanfolila,” comments CEO Dan Betts.

“The second half is also a critical stage in the development of our second gold mine at Kouroussa in Guinea, which remains on track and budget for first gold pour by the end of quarter two 2023.

“The release of the updated reserves and resources in quarter two demonstrates the significant openpit grades at this project, which is a cornerstone of our growth strategy through bringing into production, diversifying our asset base and generating strong future cashflows for the company. 

“Finally, in the second half, we will work with our partners at Pasofino to conduct a strategic review of Dugbe, Liberia to better understand our options to maximise shareholder value from this rare and valuable asset,” he adds.