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(Alliance News) - Hummingbird Resources PLC on Wednesday posted improved financials for 2019 as it announced progress in its goal to clear its debt in 2020.
Shares in the gold miner were trading 2.9% lower at 28.90 pence each on Wednesday afternoon in London.
For 2019, Hummingbird - which operates the Yanfolila gold mine in Mali - posted revenue of USD156.9 million, up 35% from USD116.5 million. Pretax profit was USD9.4 million, swinging from a pretax loss of USD11.7 million the year prior.
During the year, the company poured 115,649 ounces of gold, selling 112,886 ounces at USD1,377 per ounce. In 2018, 91,620 ounces of gold was produced. All-in sustaining costs averaged USD986 per ounce, down from USD1,087 per ounce the year before.
"After the severe operational challenges towards the latter end of 2018 we started the year with the drive and ambition to return to full production capacity and put Hummingbird back on the same course as when it started its life as a producing gold company. We can safely say that we achieved this with production up 42% and cash costs reduced by 33% from the first to fourth quarter of the year," said Chief Executive Dan Betts.
"Further to this, the group successfully completed construction of its second ball mill at Yanfolila, which increased throughput to 1.4 million tonnes per annum. Through exploration efforts and technical studies we have also increased reserves at Yanfolila with a five-year rolling mine plan showing that we have many years of cash generation from the mine to come," he added.
The five-year plan forecasts the production of 574,000 ounces with an average production of over 120,000 ounces per annum over the next three years.
Looking ahead, Hummingbird said that while it is experiencing higher costs due to Covid-19 - expected to contribute an additional USD100 per ounce in its 2020 ASIC - it remains on track to move from net debt to net cash position before the end of 2020.
As at the end of 2019, net debt was USD31 million, down from USD39.4 million in 2018.
By Ife Taiwo; ifetaiwo@alliancenews.com
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