Hummingbird increases Yanfolila production

Hummingbird Resources plc reported a rise in production at Yanfolila gold mine in Mali and further progress at its projects in Guinea and Liberia.

INFLATION

In its second quarter report for 2022, the company posted production increased 29% from Q1 2022 to 20,013 oz gold (Q1 2022: 15,548oz).

All-in sustaining cost (AISC) fell by 17% to US$1,859 per oz (Q1 2022: $2,235 per oz) primarily due to improved quarterly production.

Hummingbird said it felt the effects of inflation, especially on fuel and consumables, but expected a continual improvement in AISC for the remainder of 2022.

Chief executive Dan Betts added that the company’s focus on improving production, optimisation and cost reductions throughout H2 2022 at Yanfolila should compensate for most of the inflationary pressures.

The company reported 20,490 oz gold sold during Q2 2022 (Q1 2022: 15,179 oz) with 2,418 oz of gold inventory valued at $4.3m held on 30 June.

At the end of Q2 2022, Humingbird had net debt of $64.4m.

A total $23m debt remains available from Coris Bank International, which Hummingbird expects to draw during Q3/Q4 2022 for construction at Kouroussa.

The company said it retained an overdraft facility with Coris Bank of $20m.

During the quarter, the company advanced construction at Kouroussa into the civil works phase.

The build remains on schedule and on budget to meet the first gold pour planned by the end of Q2 2023.

Dugbe‘s final feasibility study results released on 13 June 2022 by joint venture partner Pasofino Gold Ltd, showed a gold mining project of 2.76m oz gold in reserves (4.01Moz resources).

GUIDANCE 

Hummingbird added it maintained its 2022 guidance of 87,000 – 97,000 oz gold and forecast improved H2 production from H1 2022.

The company’s Q2 report also included progress on its environment, social and government activities.