30th Jan 2019 10:05
LONDON (Alliance News) - Gold miner Hummingbird Resources Ltd on Wednesday said output is set to rise in 2019, after annual output in 2018 met the top end of revised guidance.
Hummingbird produces 91,620 ounces of gold from its Yanfolila gold mine in Mali in 2018, having guided for between 87,000 ounces and 92,000 ounces.
This guidance had been reduced, however, in November after an "extended" wet season. Hummingbird previously had expected between 105,000 ounces and 115,000 ounces.
There is no year-on-year comparison, as Yanfolila began producing in December 2017.
Looking to 2019, Hummingbird expects production to be between 110,000 ounces and 125,000 ounces, at an all-in sustaining cost of USD800 to USD850 per ounce. In the fourth quarter, the all-in cost was USD1,677 per ounce.
Hummingbird said production has started well in 2019, and it is due to complete repair works on the Komana East pit wall in the coming weeks.
The miner suspended operations at the end of October at the Komana East Pit for safety reasons after spotting a crack following the heavier wet season.
Hummingbird is on time and budget to complete its second ball mill at Yanfolila in the third quarter of 2019.
Chief Executive Dan Betts commented: "The group has been through an operationally challenging quarter, but I am pleased to report we have made significant headway on the ground in resolving the issues we faced.
"January's production figures are in line with 2019's production guidance and mine plan and we are making positive progress with the construction of a second ball mill, which is due for completion in third quarter 2019. This will increase throughput and, along with our exploration campaign, the long-term value of Yanfolila," he added.
"Over the course of the first quarter, we look forward to receiving the remaining drilling results from the 2018 exploration campaign and working with the team to understand how to release the expected potential of these results in our life of mine planning."
Shares were down 0.6% on Wednesday at a price of 24.36 pence each.
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