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Hummingbird achieves strong first-half performance

23rd August 2019

By: Tasneem Bulbulia

Deputy Editor Online

     

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Aim-listed Hummingbird Resources recorded a strong performance in the six months ended June 30.

“Hummingbird’s results demonstrate a period of real progress for the group,” CEO Dan Betts said in a statement issued on Friday.

The Yanfolila gold mine, the company’s principal asset, produced 51 273 oz of gold.

Betts indicated that Yanfolila had delivered continual improvements in the period, with all-in sustaining costs having decreased from more than $1 200/oz in the first quarter to under $1 000/oz in the second quarter.

Further cost reductions are expected going forward.

“The successful construction of the second ball mill and the additional throughput means we can anticipate lowering costs per ounce and increasing production through the remainder of the year,” noted Betts.

Hummingbird sold 51 034 oz of gold at an average price of $1 304/oz in the six months under review and achieved earnings before interest, taxes, depreciation and amortisation of $9.9-million, but incurred a pre-tax loss $5.8-million.

The company has maintained its full-year production guidance at 110 000 oz to 125 000 oz of gold.

Hummingbird is targeting output of about 130 000 oz/y at Yanfolila from 2020.

“Our focus has always been on responsible mining, maximising efficiency levels and delivering value. With improved economies of scale expected to come from the second ball mill, together with our continuingly improving understanding of the Yanfolila orebody, we are in a stronger position. Our focus is firmly on ensuring stable, reliable and efficient production at Yanfolila,” said Betts.

Moreover, he indicated that the increasing gold price also raised the attractiveness of the company’s Dugbe project, in Liberia, providing further opportunity and optionality in the company’s portfolio.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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