Aim-listed gold miner Hummingbird Resources is on track to meet its guidance of producing between 110 000 oz and 125 000 oz of gold this year, after achieving decent production in the first quarter of the year and amid minimal Covid-19 impacts.
The company produced 30 282 oz at its Yanfolila mine, in Mali, in the first quarter of the year, compared with 33 892 oz in the first quarter of last year.
Hummingbird sold 24 575 oz of gold at an average price of $1 568/oz in the quarter under review.
The company aims to reach a net cash position in the second half of the year and to be debt-free by the end of the first half of next year. Hummingbird repaid $6-million of debt plus interest in the quarter under review, with $34-million of debt remaining.
Hummingbird had cash of $8-million at the end of the quarter under review, as well as $17-million worth of gold inventory.
Meanwhile, about 1 200 m of exploration drilling has been completed by the company so far this year, which should amount to an improved mine plan in due course.
Hummingbird has established a Covid-19 task force and procedures to minimise potential impacts; however, the company has experienced no material impact to production so far.
Should the need arise, the company has a $10-million overdraft facility from Coris Bank to assist with any short-term liquidity challenges.
Alongside maintaining production, the company remains committed to advancing its key medium- and long-term objectives of rapidly deleveraging and strengthening its balance sheet, while continuing to explore and develop the resource upside opportunities at Yanfolila.
“Exploration restarted in the first quarter as planned, with an initial focus on advancing the underground potential at Komana East. The first drill holes have intersected mineralisation in the anticipated areas and so we are optimistic that we should be able to add economically viable resources (and thus mine life) to the mine plan.
“This represents a significant next step in unlocking the potential underneath the Komana East pit,” says CEO Dan Betts.