Hummingbird Resources plc has reversed its fortunes with strong first half production from Yanfolila gold mine in southern Mali.
PRODUCTION
The company’s Q2 2023 operational and trading report showed an increase to 23,885 oz gold produced in Q2 2023 (Q2 2023: 20,013 oz).
Total H1 2023 gold produced reached 51,147 oz (H1 2022: 35,561 oz).
All-in sustaining costs fell to US$1,234 per oz in Q2 2023 (Q2 2022: $1,859) with an H1 2023 AISC of $1,170 per oz (H1 2022: $2,019).
Hummingbird sold 24,770 oz gold and held 1,831 oz gold inventory as at 30 June 2023.
The group recorded loss time injury frequency rate of 0.69 per million hours worked for the quarter, within the group target rate of under 1.20 per million hours worked.
Plans to increase its Kouroussa operations remains on course following first gold pour in June.
The project’s processing plant availability is currently at 68% with regular gold pours beginning post period in July and scheduled to increase during H2 2023.
Hummingbird expects to reach steady production in Q4 2023 and produce 30,000 oz for H2 2023.
The strategic review of the Dugbe project in Liberia continues with the joint venture partner Pasofino Gold Ltd.
FINANCES
The company recorded capital expenditure of $16m for Q2, comprising $12m for Kouroussa project completion at and $4m expansion in Mali.
Net debt was $122.8m at the end of Q2 2023, gross debt of $128.6m and cash of $5.8m.
OUTLOOK
The company said it was “well positioned” to meet its full year 2023 production guidance of 80,000 – 90,000 oz at an AISC of under $1,500 per oz.
Chief executive officer Dan Betts added that Yanfolila mine was performing more in alignment with mine plans and providing better consistency.
“Our key focus for the coming months and the second half of the year is to fully ramp up production safely at Kouroussa to reach steady state production and to continue to demonstrate stable quarterly production at Yanfolila, generating solid free cashflows from both assets that strengthen our balance sheet.
“Further, a core focus for the second half of 2023 is to begin to implement our detailed exploration plans to extend the life of mine at both Yanfolila and Kouroussa, coupled with a positive solution on Dugbe in Liberia to benefit key stakeholders at that asset.”