September 24th 2018 – London, England: Hummingbird Resources Plc, announces its unaudited financial results for the six months ended 30 June 2018. The Yanfolila Gold Mine (‘Yanfolila’), Hummingbird’s principal asset, performed solidly and in line with guidance in its first full 6 months of production pouring 51,304 ounces of gold with the Group ending the Period with US$46.2 million cash.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
- Successful on schedule transition from construction, through ramp up, to full scale operations at Yanfolila with mine and plant operating at name plate capacity by end Q1 with commercial production declared from 1 April 2018
- 51,304 ounces of gold poured at an average mill feed grade of 3.22 g/t
- 50,667 ounces of gold sold at an average price of US$1,312/oz
- 577kt of ore mined and plant recovery of 95.64%
- US$66.6m of revenue in period with total all in sustaining costs (‘AISC’) of US$884/oz (includes cost from Q1 while in ramp-up to commercial production), with Q2 AISC on gold sold US$790/oz(1).
- EBITDA(2) of US$21.9m for the Period
- Pre-tax profit US$3.5m for the Period.
POST PERIOD HIGHLIGHTS
- Exploration drilling campaign targeting conversion of Resources to Reserves commenced at the beginning of Q3 with encouraging initial results from the Komana West and Guirin West Deposits:
- o 11.45m @ 8.69g/t from 69m depth (KWDD0604A)
- o 25.75m @ 2.95g/t from 117m depth (KWDD0603)
- o 8.05m @ 4.98 g/t from 72.4m depth (KWDD0603)
- o 8.1m @ 5.52 g/t from 84.9m depth (KWDD0603)
- Guirin West
- o 16m @ 3.11g/t from 38m depth (GRWRC1109)
- o 4m @ 8.12g/t from 13m depth (GRWRC1106)
- o 9m @ 2.06g/t from 27m depth (GRWRC1104)
- o 13m @ 1.91 g/t from 16m depth (GRWRC1116)
- Approved construction of a second ball mill at Yanfolila Gold Mine.
The Company maintains full year (2018) production guidance of 105,000 – 115,000 ounces gold (including Q1 ramp-up). Q3 is expected to have lower production than Q2 due to it being the ‘wet season’ in Mali.
Dan Betts, CEO of Hummingbird, commented:
“Hummingbird’s H1 interim results show a period of mature progression for the Group from developer to producer with Yanfolila delivering solid results on forecast with high grades and strong recoveries coming through the plant. Financially the Group is in a good position with strong earnings and on a corporate level our board has adapted successfully whilst attracting skills and talent appropriate for our operating status. We are coming to the end of our first full rainy season as an operator in Mali and the team have experienced one of the heaviest rains seen in the region for a decade. This has presented new challenges which the team has worked tirelessly to overcome. Despite lower production figures anticipated in the current quarter I am happy that we remain on schedule to meet our annual production guidance. I am also pleased to report that the 2018 exploration programme is in full throttle with encouraging results coming in from the drill programme.
Once again we can report our continued safety record at site. This is an integral focus for the Company as we look to not only operate a highly profitable mine but a safe one where all staff and contractors are working to best practice. Around the mine we remain committed to our local engagement initiatives and to implementing a collaborative and responsible approach to community relations with the Period seeing investment in community water supply, training, several new livelihoods projects and the completion of a new community health centre. We also raised around £75,000 from the sale of the first collection of SMO gold coins originating from Yanfolila, and other items donated to the charity auction, with the funds raised being donated The Pygmy Hippo Foundation and Tusk.”
Edited from the original Hummingbird Resources news release on 24th September 2018. Responsibility for this content remains with Hummingbird Resources. MiningIR.com hosts a variety of articles from a range of sources, our content, while interesting, should not be considered as formal financial advice. Always seek professional guidance and consult a range of sources before investing.