Gold miner Hummingbird Resources recorded production increases at its Yanfolila gold mine in Mali for the quarter ended June 30, while costs have decreased compared with the last two quarters.

Hummingbird has two core gold projects - Yanfolila and the Dugbe gold project in Liberia.

“The company is pleased to report a steadily improving operational performance in quarter two,” CEO Dan Betts commented on Friday.

He indicated that issues which adversely affected production in the first quarter had largely been addressed and that this had translated into an improved production profile. This is evidenced by April production of 7 582 oz, and May and June returning to about 10 000 oz/m.

The miner poured 27 466 oz of gold in the quarter, a 15% increase on the previous quarter’s 23 807 oz.

The improved production also resulted in other operational key performance indicators improving during the quarter, noted Betts. Costs reduced, grade increased, and volumes mined and processed both increased resulting in almost 200 000 t of run-of-mine ore.

Hummingbird recorded all-in sustaining costs of $998/oz, a 23% decrease on the previous quarter’s $1 297/oz.

The company achieved an average grade of 2.86 g/t, a 16% increase on the previous quarter’s 2.46 g/t.

In the last few weeks, post quarter-end, Hummingbird has seen the second ball mill at Yanfolila being commissioned. Construction of the mill was completed ahead of schedule and under budget. The mill is currently ramping up and has already experienced periods operating at design throughput.

Betts indicated that the new ball mill would increase the company’s ability to process more ore against the original design parameters, as it moved down the pits into predominantly fresh and harder material.

The mill was expected to have a 20% increase in plant throughput capacity.

Hummingbird has maintained its 110 000 oz to 125 000 oz production guidance with increased plant throughput in the second half, owing to the second ball mill. The company is targeting 130 000 oz/y from 2020.

Hummingbird had $51-million debt outstanding to Coris Bank at the end of the period, reduced from $56-million in the previous quarter. The debt was being repaid on a ‘straight line’ basis delivering a swift deleveraging for the company. All bank debt is due to be completely repaid in June 2021.

Hummingbird had cash of $8-million at period end, compared with $13-million for the previous quarter. It also had 3 500 oz of gold inventory worth about $5-million.