Hummingbird Resources plc announced it had a stronger cash position but poured less gold during the final quarter of 2020 from its operations in West Africa.
The company faced problems last year including a military coup in Mali, extreme rain as well as the pandemic. bit.ly/2O77UKV
It has forecast production for 2021 to be during the second half of the year.
In its results for Q4 2020, Hummingbird recorded net cash of US$1.5 million at 31 December 2020 with current bank loans scheduled to be fully repaid in Q2 2021.
Cash was reported at $11m compared with $9m during Q3 2020.
Total bank debt was $13m, reduced by $6m during the quarter, and gold inventory value was approximately $4m.
Hummingbird also noted that it had a continued total recordable injury frequency rate (TRIFR) of 0.82, exceeding its own target of a TRIFR lower than 2.5 for 2020.
PRODUCTION
Hummingbird reported less gold was poured at 22,012 oz of gold was poured (24,722oz in Q3 2020). Full year 2020 production was 101,069 oz of gold.
All in sustaining cash cost (AISC) on gold sold was $1,496 per oz ($1,283 per oz AISC in Q3 2020). Full year 2020 AISC was $1,147 per oz.
The company sold 24,285 oz of gold during Q4 2020 at an average realised price of $1,862 per oz.
The miner also received $2m from the Government of Mali as part payment for their acquisition of an additional 10% stake in Yanfolila.
“2020 has been a challenging year in which to operate and many of these logistical challenges remain,” said chief executive Dan Betts.
“However, Hummingbird ends the year in a solid net cash balance sheet position, with a strong internal growth pipeline including the development of Kouroussa [Guinea] and the exciting 2021 exploration and drilling campaign at Yanfolila ahead of us.”
OUTLOOK
Hummingbird gave a 2021 production guidance of 100,000 – 110,000oz of gold, with AISC of $1,250 – 1,350/oz on gold sold.
Current bank loans are on schedule to be fully repaid during Q2 2021.
Mali development capex of $7m is planned for 2021 and Mali exploration and mine life extension budget will be doubled to $10m.
“We have a more modest 2021 production outlook which we believe is achievable and will establish a solid footing for the Company as we generate circa $70 million of project level EBITDA at current gold prices,” added Mr Betts.
“The company’s pre-development plans at Kouroussa continue, with our confidence of the exploration and mineral resource growth potential increasing the more work we do on the project.
“Additionally, we are excited about the progress at our Dugbe Gold project in Liberia with earn-in partners Pasofino.
“I believe the foundations are set for 2021 to be a strong year for the company as we capitalise on the organic growth opportunities ahead of us and continue to progress towards our goal of being a multi-asset, multi-jurisdiction producing resources company.”
Hummingbird’s investments include an equity stake in Cora Gold whose primary focus is on gold projects in West Africa with its key project being the Sanankoro gold project in Southern Mali.
Hummingbird also has an equity stake in Bunker Hill which is a large-scale resource and patented land package located in Silver Valley, Northern Idaho.