Hummingbird Resources plc said it had achieved one of its key 2020 objectives for a strengthened balance sheet and net cash position from its portfolio in Mali, Liberia and Guinea.
The miner also met its other targets of improving its exploration programme and the acquisition of assets.
However, the advances were overshadowed by higher costs and lower than expected gold production at Yanfolila, which was due a number of factors including Covid-19, a change in the mine plan, a coup in Mali which affected logistics, and extreme weather.
FINANCIAL
In its audited financial results for the year ended 31 December 2020, the miner recorded total group sales of US$185.1 million (2019: $156.9m) with post-tax profits of $25.2m (2019: $7.9m).
Adjusted EBITDA was reported at $62.3m (2019: $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.
OPERATIONS
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 miner reported a successful 2020 drilling programme with some 21,000 metres completed at Yanfolila, Mali.
During June 2020, Hummingbird entered into an earn-in agreement with Pasofino Gold Ltd to advance and fund the Dugbe gold project in Liberia to completion of feasibility study.
In September 2020, the miner completed acquisition of the Kouroussa gold project in Guinea.
ESGs
During June 2020, Hummingbird joined the World Gold Council and it remains committed to its environment, social and governance (ESGs) programmes at Yanfolila, Kouroussa and Dugbe.
The miner continues to pursue its Single Mine Origin strategy as an industry platform of responsibly sourced metal.
This involves working with its strategic partner, Betts Metals Ltd, to segregate metal through refining and manufacturing and into consumer products.