Hummingbird Resources plc maintained steady performance at its Yanfolila gold mine in Mali while remaining on schedule for first gold pour at Kouroussa, Guinea.
CONTRACT
Results for Q1 2023 showed production continuing from the end of the previous year with 27,262 ounces (Q4 2022: 28,264: Q1 2022: 15,548).
Q1 2023 all-in sustaining cost (AISC) from Yanfolila improved to US$1,109 per oz (Q4 2022: $1,248: Q1 2022: $2,235).
The company sold 26,380 oz gold (Q4 2022: 27,860 oz) and on 31 March 2023 held 2,810 oz gold inventory valued at $5.6 million.
Q1 2023 group EBITDA* increased by 59% to $17.5m (Q4 2022: $11m).
The contract with Yanfolila’s contract miner JCM was terminated on 31 March 2023 as a result of “ongoing poor equipment availability”, materially affecting Yanfolila operations.
Hummingbird said that mining activities would transfer to a new contractor, with continuing support from Kouroussa’s contract miner Corica Mining Services.
During Q1 2023, village resettlement began and construction of new housing, and is ahead of schedule in preparation for mining at the SE deposit in H2 2023.
Hummingbird continues the strategic review with joint venture partner Pasofino Gold Ltd of its third gold project in Dugbe, Liberia.
KOUROUSSA
The company’s second project of Kouroussa gained support from a strategic $15m investment while construction remains fully funded and on course for first gold pour by the end of Q2 2023.
Detailed exploration plans are being developed during H1 2023 before restarting exploration drilling in H2 2023 / 2024, to increase the project’s current reserves base of 647,000 oz at 4.15 g/t.
The company reached 2.5 million lost time injury (LTI) free hours, with more than 1,000 construction and mining personnel currently on site.
Healthcare and first aid training initiatives increased in communities and schools from Hummingbird’s on-site clinical nursing team and global remote healthcare specialists Critical Care International.
Community livelihood initiatives and projects were also advanced particularly the construction of community market garden infrastructure and community water bore holes.
OUTLOOK
The company expects similar trends from Q1 to continue into Q2, and will provide full year guidance once Kouroussa is in production and increasing output.
Chief executive Dan Betts added that the Guinea project would more than double the company’s production profile, reduce group cost of production and diversify risk.
“The project remains on time and on budget, and will mark a major milestone in the development of the company to realising our ambitions of being a multi-mine, multi-jurisdiction gold producer.”
*earnings before interest, taxes, depreciation and amortisation