Finance Metals & Minerals News

Hummingbird on course to clear debt

Hummingbird Resources plc posted a stronger balance sheet and net cash position despite less gold produced from its projects in West Africa.

Completed: the acquisition of the Kouroussa gold project in Guinea (Pixabay)

EARN-IN

The company faced higher costs and lower-than-expected gold production at Yanfolila due to Covid-19, a change in the mine plan, a coup in Mali which affected logistics, and extreme weather.

For full year results ended 31 December 2020, total group sales amounted to US$185.1 million (2019: $156.9m) with post-tax profits of $25.2m ($7.9m).

Adjusted EBITDA was $62.3m ($46.3m) and net cash of $1.5m.

Hummingbird repaid $30m debt during the year leaving a total bank debt of $13.2m which it forecasts to clear by the end of H1 2021.

During the year, the miner poured 101,069 oz gold (2019: 115,649 oz) and sold $104,174 oz at an average price of $1,745/oz.

The 2020 drilling programme saw some 21,000 metres completed at Yanfolila in Mali.

During June, Hummingbird signed an earn-in for Pasofino Gold Ltd to advance and fund the Dugbe gold project in Liberia to completion of a feasibility study.

In September the company completed its acquisition of the Kouroussa gold project in Guinea.

During June 2020, Hummingbird joined the World Gold Council and continues its environment, social and governance programmes and its single mine origin strategy for responsibly sourced metal.