19th Apr 2023 10:46
(Alliance News) - Hummingbird Resources PLC on Wednesday touted progress across both of its projects, as it looks set to pour first gold at Kouroussa in West Africa this quarter.
Hummingbird is a gold production, development and exploration company with two core projects: the operational Yanfolila gold mine in Mali, and the Kouroussa gold mine in Guinea. It also has a controlling interest in the Dugbe gold project in Liberia, which is currently being developed by Pasofino Gold Ltd, through an earn-in agreement.
For the first three months of this year, Hummingbird posted improved earnings before interest, tax, depreciation and amortisation, up 59% to USD17.5 million from USD11 million the previous quarter.
For Yanfolila, Hummingbird reported quarterly gold production of 27,262 ounces, up from 15,548 ounces a year prior.
26,380 ounces of gold were sold at an average realised price of USD1,878 per ounce, compared to 27,860 ounces of gold sold at USD1,726 per ounce in the fourth quarter of last year. On March 31, the company held 2,810 ounces of gold inventory, valued at around USD5.6 million.
Hummingbird told investors on Wednesday that construction at Kouroussa is now fully funded. In February, it successfully placed shares to raise USD17.1 million for the project. Subsequently, Kouroussa remains on track for first gold pour by the end of the second quarter.
The company said it would update its guidance for 2023 once Kouroussa is in production and ramping up.
"Hummingbird's second mine, Kouroussa, remains on track to pour first gold this quarter. The project remains on time and on budget, and will mark a major milestone in the development of the company to realising our ambitions of being a multi-mine, multi-jurisdiction gold producer. The mine will more than double our production profile, reduce the group's cost of production, and diversify risk," said Chief Executive Officer Dan Betts.
Hummingbird shares were trading 14% higher at 13.50 pence each in London on Wednesday morning.
By Holly Beveridge, Alliance News reporter
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