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Hummingbird maintains guidance despite headwinds in third quarter

26th October 2020

By: Marleny Arnoldi

Deputy Editor Online

     

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London-listed Hummingbird Resources produced 24 722 oz of gold in the third quarter of the year, compared with the 24 054 oz produced in the second quarter.

CEO Dan Betts says that, despite a difficult quarter that was impacted by some of the heaviest rains on record, compounding the already difficult logistical challenges imposed in managing Covid-19, and the temporary closure of borders as a result of a military coup in Mali, the country is entering its dry season and its borders are back open, which should bode well for fourth quarter production.

The company maintains its yearly guidance at between 110 000 oz and 125 000 oz from the Yanfolila gold mine, in Mali.

The extreme rainfall, ongoing Covid-19 factors and the coup in Mali causing logistical issues will, however, impact on the company’s all-in sustaining cost (AISC) guidance for the year.

AISC was $1 283/oz in the quarter under review, compared with an AISC of $983/oz in the second quarter of the year.

Hummingbird expects AISC to be about $995/oz by the end of the year.

On the positive side, the company continues to rapidly deleverage its balance sheet, with net debt approaching zero at the end of September, while the company’s 2020 exploration programme has led to some “stellar” drill intersections.

Particularly, Betts points out that the Sanioumale West and East deposits are showing particular promise, which will potentially impact Yanfolila’s life-of-mine.

Meanwhile, Hummingbird awaits a mining licence award for the Kouroussa project, in Guinea, which the company acquired earlier this year. The company expects construction to start early next year, which, once complete, will result in the company becoming a 220 000 oz/y gold producer.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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