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(Sharecast News) - Hummingbird Resources updated the market on the Yanfolila mine in Mali on Wednesday, following confirmation earlier in the month that it was back in operation, following "illegal roadblocks" and disruption to "public order" in the region in November.
The AIM-traded firm confirmed that mining and processing operations had restarted, having ceased for around six days, with all employees and contractors safely accounted for.
It said it was in the process of returning the mine operation to a "more normalised" production level.
As a precautionary measure, increased security - including the presence of National Mali Government personnel - would remain in place as Yanfolila ramped up production
Additionally, in relation to the company's mining contractor excavator availability issues, Hummingbird noted that two of the larger excavators out of a fleet of seven, that were unavailable for most of September, were back online.
However, the mining contractor's excavator fleet was "failing to perform consistently" to the scheduled mining volume rates, and as a result the firm was seeking to mitigate that risk with the mining contractor.
It said it was carrying out a detailed review of the overall contractor equipment maintenance procedures and equipment status, and was seeking to bring in additional excavators to increase availability, optionality, and allow better maintenance of existing equipment.
One additional unit was expected to be delivered and operational before the end of the year.
As it noted on 29 November, the company advised that the full year production forecast would be below the bottom end of its previous 2021 guidance range.
Current gold poured for the year was currently over 82,000 ounces, but due to the recent issues, Hummingbird said it now expected full-year 2021 production of 84,000 to 89,000 ounces at an all-in sustaining cost range of$1,490 to $1,590 per ounce.
"Though the disruption caused by a small minority has impacted our operations at Yanfolila, our focus on protection protocols of our employees, contractors and host communities has been effective," said chief operating officer Anthony Köcken.
"Hummingbird is working collaboratively with our host communities seeking to ensure that such disruptions do not happen again.
"The key focus for the company at Yanfolila as it moves into the year end is to continue to run the operations safely for the benefit of all stakeholders, executing efficiently on the current mine plans and providing the platform for a more sustainable operational performance in 2022 and beyond."
Hummingbird said it would provide a more detailed operational update after the end of the year in its fourth quarter and 2022 outlook statement, scheduled to be released in late January.
At 1500 GMT, shares in Hummingbird Resources were down 5.32% at 13.21p.
2 Jun 2016 14:45