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Hummingbird’s first-quarter performance impacted by contractual dispute at Kouroussa

25th April 2024

By: Marleny Arnoldi

Deputy Editor Online

     

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Despite what its CEO Dan Betts deemed a challenging quarter, Aim-listed Hummingbird Resources delivered an 18% quarter-on-quarter increase in gold production at just under 17 000 oz from the Yanfolila mine, in Mali, in the quarter ended March 31.

This while the Kouroussa project, in Guinea, produced 5 868 oz of gold. The newly commissioned mine experienced disrupted operations in January owing to a fire at a fuel depot, with fuel deliveries having resumed later in the month.

Mining at Kouroussa was again halted in February and the first half of March owing to a contractual dispute with the primary contractor, Corica Mining Services.

Hummingbird says it is exploring partnerships with other operators to expedite Kouroussa’s advance to commercial-scale production, and, in the meantime, has taken control of operations at the mine.

The company has entered into a short-term contract with West African contractor, Etablissement Adama Sidibé, to enhance their already active support fleet and accelerate mining activity at Kouroussa.

The company continues to work closely with its primary lender, Coris Bank International, which remains fully supportive of the business and its current strategy, including on the mitigation of the financial impacts as a result of the challenges with the contractor.

Hummingbird generated group-adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of $7.1-million in the reporting quarter, which was an increase on the $6.9-million of adjusted Ebitda reported in the fourth quarter of last year.

Full-year production guidance for the Yanfolila mine remains unchanged at between 75 000 oz and 85 000 oz, at an all-in sustaining cost below $1 500/oz.

Hummingbird will update its guidance accordingly once the Kouroussa mine is fully ramped up and nears commercial production.

CEO Dan Betts comments the company is mitigating the impacts of recent events at the Kouroussa mine and remains dedicated to accelerating the operation to commercial production.

He is pleased with progress being made at Yanfolila as the mine progresses through near-term mine plan.

Hummingbird continues with exploration efforts to extend the life of mine at both its operations and to become a 200 000 oz/y gold producer. It has also mobilised drilling equipment to the Bukon Jedeh target at the Dugbe project, in Liberia.

The company is working with Pasofino Gold to optimise a 2022 definitive feasibility study on the project, focusing on power and recovery efficiencies, as well as maximum project value.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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