Hummingbird Resources plc announced an increase in gold poured and cleared its debt used to fund Yanfolila mine in southern Mali.
In its operational and trading review for the second quarter of 2021, the company also reported the fatality of one of its sub-contractors.
Hummingbird additionally made further progress on support for market gardens as part of its environment, social and governance (ESG) programmes.
OPERATIONS AND TRADING
During Q2 2021, the company poured 24,494 oz of gold (Q1 2021: 22,781 oz) with gold sold recorded at 24,790 oz at an average realised price of US$1,802 per oz.
Gold inventory stood at 1,972 oz at 30 June 2021 and valued at $3.4 million.
Net cash (including gold inventory value) was $12.4m (Q1 2021: $4.9m) with $4.7m of final debt repayments made, taking the company into a debt free position described as a major milestone by chief executive Dan Betts.
All in Sustaining Cost (AISC) was $1,386 per oz (Q1 2021: $1,494/oz)
| Unit | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | |
| Gold poured | oz | 24,494 | 22,781 | 22,012 | 24,722 | 24,054 | 30,282 |
| Ore mined | t | 443,490 | 364,114 | 382,289 | 268,726 | 334,094 | 446,183 |
| Ore processed | t | 391,652 | 345,374 | 359,208 | 352,348 | 337,926 | 339,159 |
| Avg. grade mill feed | g/t | 2.14 | 2.16 | 2.03 | 2.27 | 2.36 | 2.98 |
| Recovery | % | 91.88 | 92.97 | 93.47 | 95.18 | 94.78 | 93.19 |
| Gold inventory * | oz | 1,972 | 2,596 | 1,980 | 4,634 | 4,339 | 11,000 |
During Q2, Hummingbird also began cost and productivity initiatives focused on short and long-term improvements in each department and aiming to deliver lower AISC and increase overall productivity
OUTLOOK
Hummingbird said it was maintaining its 2021 production guidance of 100,000 – 110,000 oz of gold, with an AISC of $1,250 – 1,350 per oz of gold.
The company expects full-year production to be weighted towards the second half of the year in line with guidance expectations at the start of the year.
EXPLORATION
Some $3.5m was spent during Q2 on exploration at Yanfolila with 32,500m of the 44,600m forecast for the year drilled to date (2020: 21,000m).
The Sanioumale East (SE) deposit in particular recorded significant results
Hummingbird said that the results provided further confidence that the 2020 SE deposit JORC compliant mineral resource base of 204,000 oz will be increased.
Multiple assays are awaiting results and the company expects to release more drilling results during Q3.
OTHER PROJECTS
Hummingbird is finalising detailed capex estimates for its licences awarded in May at Kouroussa, Guinea.
At Dugbe in Liberia, Hummingbird’s earn-in partner, Pasofino Gold Ltd released results of an independent preliminary economic assessment (PEA) highlighting strong project pre-tax NPV5% economics ranging from $825 – $1,153m (dependent on gold price).