Extractive Industries

Hummingbird 2022 losses treble from challenges

Hummingbird Resources plc recorded more than a three-fold increase in losses while gold pour fell following issues with its mining contractor at the Yanfolila mine in Mali.

FINANCES

Full year results for 2022 showed revenue decreased to US$150.5 million (2021: $162.7m) while losses rose to £39.9m (2021: £12.7m).

The company sold less gold at 80,445 oz (2021: 87,553 oz) generating a decrease in return of $143.3m (2021: $156.6m).

An additional $7m (2021: $6.2m) revenue was generated from sales of Single Mine Origin gold.

The company’s total bank debt more than doubled to $115.7m (2021: $61.8m).

OPERATIONS

During 2022, Hummingbird poured less gold at 80,653 oz (2021: 87,558 oz) but the group reserves materially nearly quadrupled to 4.13 million oz (2021: 1.12Moz).

The increase followed extensive drilling campaigns at Yanfolila and the Kouroussa gold mine in Guinea during 2021 being converted into reserves, and completion of a definitive feasibility study (DFS) in June 2022 on Dugbe in Liberia.

Group resources slightly increased to 7.28Moz (2021: 7.12Moz).

MILESTONES

Interim chairman and chief executive officer Dan Betts said that the company had achieved its priorities of starting construction at the Kouroussa gold mine, increasing group resources and reserves, assisting joint venture partner Pasofino Gold with a definitive feasibility study, and improving ESGs.

“The past year we achieved several key milestones we set ourselves to fulfil for the year, while facing challenges at our Yanfolila mine in Mali, especially the earlier part of 2022.

“A key focus for the executive team this year is to show improved cash flow generation and a stronger balance sheet for the group to underpin our growth strategy and ultimately drive shareholder returns.”

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