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Pin to quick picksHummingbird Share News (HUM)

Share Price Information for Hummingbird (HUM)

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Share Price: 8.25
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UPDATE 2-Barrick Gold says Mali mines unaffected by ECOWAS sanctions

Mon, 10th Jan 2022 14:44

(Recasts with Barrick Gold, adds details)

JOHANNESBURG, Jan 10 (Reuters) - Barrick Gold,
which owns Mali's biggest gold mine complex Loulo-Gounkoto, said
on Monday its mines in the country have "thus far not been
affected" by sanctions imposed by the Economic Community of West
African States.

The 15-state regional bloc imposed tough economic sanctions,
and said it would also shut borders and sever diplomatic ties,
in response to Mali's delay in holding elections following a
2020 military coup.

Barrick said its mines had sufficient stocks and stores to
continue operating normally, adding however that the situation
was "very fluid" and it was monitoring it closely.

Mali is one of Africa's biggest gold producers, with mining
contributing around 10% of its gross domestic product (GDP).

Companies like Barrick, B2Gold and Resolute Mining
operate large mines in the country while many smaller
companies are exploring for gold there.

Hummingbird Resources, which owns the Yanfolila
gold mine, said it was evaluating the risks to its supply chain
from economic sanctions.

"Whilst all plans will be made to minimise the potential
impact, it is too early to say how these sanctions may
potentially affect our business," Hummingbird said in a
statement. Its shares were down 5% in London.

A spokesperson for Cora Gold, which plans to start
building its Sanankoro gold mine in Mali this year, said the
board was monitoring the situation and operations in Mali are
continuing as normal.

B2Gold and Resolute did not immediately reply to requests
for comment on the possible impact of the sanctions.
(Reporting by Helen Reid; editing by Jason Neely, Emelia
Sithole-Matarise, William Maclean)

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IN BRIEF: Hummingbird issues step-in notice regarding Kouroussa mine

Hummingbird Resources PLC - gold producer with operations in Mali, Guinea and Liberia - Says continued to engage with Ivory Coast-based Corica Mining Services, which had suspended mining activities on March 17, citing contractual disputes. Back then, Corica cited claims regarding unpaid invoices to Hummingbird totaling about USD27 million for work completed at Kouroussa mine in Guinea, which Hummingbird rejected. Hummingbird on Tuesday said it issued a step-in notice which allows it to take management control and issue instructions to Corica. Meanwhile, the discussions about Kouroussa, which Hummingbird calls constructive, have the aim to ramp up operations under the existing mining contract between the two companies. Hummingbird says it is progressing with the restart and ramp up of mining activities at the mine. Further, it notes that operations at the mine have continued with the processing plant operating at the expected levels with mining via an existing support mining fleet.

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IN BRIEF: Hummingbird shares plummet amid Kouroussa contract dispute

Hummingbird Resources PLC - gold producer with operations in Mali, Guinea and Liberia - Says the principal contract miner at its Kouroussa gold mine in Guinea has suspended mining operations due to "various contractual disputes". Hummingbird calls the action by Corica Mining Services "a clear breach of the mining contract", and alleges that Corica "has failed to meet mining contract volumes due to delays in mining equipment mobilisation, commissioning, and overall operating performance". Hummingbird has issued a notice to Corica, demanding that it resumes mining by Tuesday. Should it fail to do so, the company says it may step in to resume mining operations in its place, or work with alternative contractors and equipment suppliers.

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Copyright 2024 Alliance News Ltd. All Rights Reserved. 

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