Last checked at (Sharecast News) - Hummingbird Resources said on Wednesday that it poured 22,781 ounces of gold its first quarter, up slightly from the 22,012 ounces poured in the fourth quarter of 2020.
The AIM-traded firm said it sold 22,019 ounces of gold in the period at an average realised price of $1,788 per ounce, while its gold inventory stood at 2,596 ounces at 31 March, valued at $4.4m.
Its all-in sustaining cost for the quarter was $1,494 per ounce, broadly in line with the $1,496 per ounce it reported for the prior three months.
That was driven by "relatively low" planned quarterly production and mill grades, as well as a high strip ratio as it accessed the Komana West ore body, and sustaining capital expenditure being weighted to the first half of the year, including the tailings storage facility dam lift.
The company reiterated its 2021 production guidance of 100,000 to 110,000 ounces of gold, with an all-in sustaining cost of between $1,250 and $1,350 per ounce on gold sold.
It said the first quarter was expected to be the lowest for production for the year, with improvements expected in the second quarter onwards.
The all-in sustaining cost was also expected to improve from its current levels, in line with improvements in production expectations to meet its year-end guidance range.
Net cash including the value of its gold inventory stood at $4.9m at period end, up from $1.5m at the end of the fourth quarter, with $8.6m of debt repaid during the quarter.
The remaining outstanding $4.6m of debt was expected to be paid during the second quarter, moving the company into a debt-free position, in line with its guidance expectations.
"Although the first quarter was slow in terms of production, this is in-line with forecast projections that the 2021 production profile would be weighted to the second half of the year," said chief executive officer Dan Betts, adding that the board expected production numbers to improve during the second quarter.
"Also, we expect our all-in sustaining cost profile to improve from current levels, in line with improving production levels.
"Our balance sheet continued to strengthen during the quarter."
Hummingbird "significantly strengthened" its senior management team, Betts said, with the hire of chief operating officer Anthony Kocken.
"At Kouroussa, our development project in Guinea, we have made good progress on the front-end engineering and design, project layout and capital expenditure studies and are currently reviewing and finalising these details while we await the awarding of the mining licences from the government.
"In relation to security in the region we are mindful of recent unrest and are closely monitoring the situation; we remain in close contact with the government and do not believe the environment currently poses any material risk to our project timelines and development plans."
Dan Betts noted that at the Dugbe Gold Project in Liberia, Hummingbird's earn-in partner Pasofino made "significant progress" towards delivering a definitive feasibility study.
"Finally, we saw our environmental, social and governance (ESG) initiatives progressing, in particular around important water infrastructure improvements at several locally supported villages.
"Further, our impressive health and safety track record continued which are achievements we are proud of."
At 1114 BST, shares in Hummingbird Resources were up 5% at 21p.
17 May 2024 15:54
Hummingbird announces restart at Kouroussa
(Sharecast News) - Hummingbird Resources announced the remobilization of Corica Mining Services at the Kouroussa Gold Mine in Guinea on Friday, after a work stoppage on March 17.
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