Following restructuring of Aim-listed Hummingbird Resources’ contract mining operations in mid-2023, the company says it has finished the year in a substantially stronger position.
In particular, the Yanfolila mine, in Mali, produced its best quarterly production for several years for the three months ended December 31, 2022, at 28 264 oz of gold.
The output marked a 67% improvement on the 16 827 oz of gold produced in the third quarter of the year and helped the company meet its revised guidance for the year. The company also managed to materially improve the mine’s quarterly all-in sustaining cost (AISC) from $2 161/oz in the third quarter to $1 248/oz in the fourth quarter.
This contributed to improved group earnings before interest, taxes, depreciation and amortisation of $11-million in the fourth quarter, from 27 860 oz of gold sold at an average realised price of $1 726/oz.
The Yanfolila mine produced 80 653 oz for the 12 months ended December 31, 2022, at a full-year average AISC of $1 782/oz.
Hummingbird expects the mine to produce between 80 000 oz and 90 000 oz this year, with the incoming Kouroussa mine, in Guinea, expected to add a material uplift to the group’s production profile.
The Kouroussa mine remains on track for its first gold pour at the end of the second quarter and to ramp up to a 200 000 oz/y operation.
Meanwhile, the company is still evaluating its operations to best realise value from the Dugbe project, in Liberia, together with joint venture partner Pasofino Gold. The company has a controlling interest in the project through an earn-in agreement.
The latest feasibility results on Dugbe showcase 2.7-million ounces in reserves and strong economics, including a 3.5-year payback period once in production at a 14-year mine life and a low AISC profile.
CEO Dan Betts says Hummingbird will, in 2023, achieve its goal of becoming a multi-asset, multi-jurisdiction gold producer that is poised for improved cash flow generation and a stronger balance sheet.