Hummingbird Resources plc reported increased production at its Yanfolila gold mine in Mali and further progress at its projects in Guinea and Liberia.
OPERATIONS
In its second quarter report for 2022, the company recorded production increased 29% from Q1 2022 to 20,013 oz gold (Q1 2022: 15,548oz).
Mining rates improved (+26%) along with processing plant throughput (+20%) and mill feed grade (+9%).
| Unit | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | |
| Gold poured | oz | 24,494 | 22,102 | 18,181 | 15,548 | 20,013 |
| Mined BCMs | bcms | 2,672,788 | 2,095,935 | 1,920,311 | 2,164,253 | 2,726,205 |
| Ore mined | t | 443,490 | 392,005 | 445,808 | 502,800 | 511,449 |
| Ore processed | t | 391,652 | 326,020 | 341,936 | 298,925 | 357,837 |
| Avg. mill grade feed | g/t | 2.14 | 2.27 | 1.79 | 1.71 | 1.87 |
| Recovery | % | 91.88% | 91.95% | 92.38% | 95.39% | 94.82% |
| Gold inventory – incl SMO | oz | 1,972 | 2,769 | 2,246 | 2,557 | 2,418 |
FINANCES
All-in sustaining cost (AISC) fell by 17% to US$1,859 per oz (Q1 2022: $2,235 per oz) primarily due to improved quarterly production.
Hummingbird said it felt the effects of inflation, especially fuel and consumables, in common with the global mining industry but expected a continual improvement in AISC for the remainder of 2022.
Chief executive Dan Betts added that the company’s focus on improving production, optimisation and cost reductions throughout H2 2022 at Yanfolila should compensate for most of the inflationary pressures.
The company reported 20,490 oz gold sold during Q2 2022 at an average realised price of $1,851 per oz (Q1 2022: 15,179 oz / $1,871).
Hummingbird held 2,418 oz of gold inventory on 30 June 2022, valued at $4.3m.
The lifting of sanctions on Mali in early July, offsetting VAT recoverable against taxes payable has restarted and is expected to be a net cash benefit.
At the end of Q2 2022, Humingbird’s net debt position was $64.4m (c.$60.1m including gold inventory value).
A total of $23m debt remains available from Coris Bank International, which Hummingbird expects to draw during Q3/Q4 2022 for construction at Kouroussa.
The company said it retained an overdraft facility with Coris Bank of $20m.
KOUROUSSA, GUINEA
During the quarter, the company advanced construction at Kouroussa into the civil works phase.
The build remains on schedule and on budget to meet the first gold pour planned by the end of Q2 2023.
DUGBE, LIBERIA
The Dugbe final feasibility study results were released on 13 June 2022 by our joint venture partners Pasofino Gold Ltd, showing a gold mining project of 2.76 million oz gold in reserves (4.01Moz resources).
GUIDANCE
Hummingbird added it maintained its 2022 guidance of 87,000 – 97,000 oz gold and forecast improved H2 production from H1 2022, in line with the company’s guidance expectations at the start of year and current mine plan.
The company’s Q2 report also included progress on its environment, social and government activities.
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