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Hummingbird reports stabilised production at Yanfolila

19th April 2023

By: Darren Parker

Creamer Media Contributing Editor Online

     

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Gold mining company Hummingbird Resources has reported stable results from its Yanfolila gold mine, in Mali, which produced 27 262 oz of gold in the first quarter of the year, down almost 1 000 oz from the previous quarter's 28 264 oz, but a significant increase from the same period last year when it produced only 15 548 oz. 

“We continue to see operational improvements which is very positive, with a mine adding good cash flow returns to the business and performing more in line with expectations.

“Yanfolila had a positive quarter in terms of production and improved all-in sustaining cost (AISC) profile, with many of the operational changes made in the second half of 2022 coming through to the bottom line in terms of a more stabilised and predictable performance at the mine,” Hummingbird CEO Dan Betts said on April 19. 

The company also reported an AISC of $1 109/oz for the first quarter, marking an 11% improvement from the fourth quarter of last year’s $1 248/oz and a 50% improvement from the $2 235/oz reported for the first quarter of 2022.

Hummingbird sold 26 380 oz of gold in the first quarter at an average realised price of $1 878/oz, with a gold inventory of 2 810 oz valued at about $5.6-million.

Meanwhile, the Kouroussa mine construction project in Guinea, which Hummingbird said is fully funded and on budget, remains on track for its first gold pour by the end of the second quarter.  

"This will mark a major milestone in the development of the company to realising our ambitions of being a multi-mine, multi-jurisdiction gold producer. The mine will more than double our production profile, reduce the group's cost of production, and diversify risk,” Betts said. 

The project has achieved more than 2.5-million lost-time injury-free hours, a key safety metric for the construction team, with more than 1 000 construction and mining personnel currently on site. 

Hummingbird also reported that a strategic review of options to maximise the value of the Dugbe gold mine, in Liberia, for all stakeholders was ongoing with the company's joint venture partner Pasofino Gold. 

The company has received a strategic investment from investor CIG SA and raised about $17.1-million in the first quarter through a successful placement. The funds will be used to ensure Kouroussa goes into production as scheduled and to fast-track exploration.

“This investment has helped ensure that we can deliver Kouroussa without the risk of delay, but possibly more importantly, it gives us a strategic partner with whom we share a long-term ambition of continuing to grow Hummingbird into a multi-mine, multi-jurisdiction gold company,” Betts said. 

Hummingbird also reported consecutive strong, and improved, quarterly group earnings before interest, taxation, depreciation and amortisation, which was up 59% to about $17.5-million for the first quarter compared to the previous quarter’s $11-million.  

The company expects similar trends to continue in the second quarter and plans to provide a full-year guidance update once Kouroussa is in production and ramping up. 

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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