Production at Aim-listed gold miner Hummingbird Resources’ Yanfolila mine, in Mali, decreased to 101 069 oz from the 115 649 oz produced in 2019.

This was mainly as a result of the impact of Covid-19.

The miner sold 104 174 oz of gold at an average price of $1 745/oz, taking the value of group sales for the period to $185.1-million.

Earnings before interest, taxes, depreciation and amortisation were $75.2-million, with the diluted earnings a share closing the year at $5.02.

However, while Hummingbird had not been able to maintain its production improvements in the company’s operational performance for 2020, owing to the Covid-19 pandemic, the miner had been able to keep its Yanfolila project in safe operation, despite many of its staff not being able to leave the site for a prolonged period.

Nonexecutive chairperson Russell King commends the staff and community for this achievement, as the Covid-19 pandemic had not only affected its people, but also reduced the efficiency of the company’s supply chain, its ability to access external expertise at the mine, and prevented vital face-to-face contact for effective operations.

Despite all these challenges, operations continued, and Hummingbird also advanced its strategic growth objectives in Liberia, through the miner’s earn-in agreement with Pasofino, and in Guinea with the acquisition of Kouroussa.

Environmental, social and governance (ESG) continues to be a significant focus for the company, King adds, noting that the company has achieved over two-million injury-free hours worked.

Although Covid-19 impacted the community team's ability to interact with local communities as normal, community project initiatives continued with the likes of ongoing success at market gardens, soap manufacturing programmes, training, malaria spraying initiatives and water infrastructure improvements, besides others.

This led to Hummingbird increasing its focus on the adoption of industry best practices, which led it to join the World Gold Council and undertake to implement the council’s Responsible Gold Mining Principles.

The miner’s primary focus, moving forward, will be to ensure that the operations at Yanfolila are stabilised and that output is more predictable, CEO Dan Betts comments.

Hummingbird’s guidance for this year is between 100 000 oz and 110 000 oz gold, at an all-in sustaining cost of between $1 250/oz and $1 350/oz.

“We are at the high-cost part of the life-of-mine plan and there are a number of initiatives in place that are being further developed to improve efficiencies and reduce costs across the operation,” Betts comments.

To this extent, the company has also doubled its exploration budget at Yanfolila to $10-million in order to build on the 2020 drilling success.

The intention of this programme is to discover more ounces to extend the mine life at Yanfolila, as Hummingbird considers Yanfolila’s short mine life a “major hindrance” on its valuation.

Attention in this area can deliver material results which Hummingbird has started to see in its 2020 drilling results. More success is expected this year, given the miner’s increased budget spend in this area. 

Additionally, in 2021, a major focus for the group will be the advancement of Kouroussa, in Guinea, which Betts cites as a major growth project for the company that will see group production rise materially to more than 200 000 oz/y once in production, while also delivering diversification advantages as the miner looks to become a multi-asset, multi-jurisdiction gold producer.

“Now that the mining licence has been granted, by the government of Guinea, we are in the process of finalising the capital cost estimates with an eye to approving, financing and commencing construction of the project in the second half of 2021,” Betts says, referring to the miner’s planning process, wherein it looks to incorporate leading ESG practices, strategies, and processes at Kouroussa to build a mine that is “not only compliant with leading industry practices but forward thinking in terms of how we care for the environment, communities, employees, and key stakeholders in the region”.

Further, at Dugbe, in Liberia, Hummingbird’s earn-in partner, Pasofino, made significant progress in 2020 in terms of taking the project forward to delivering a definitive feasibility study by the end of this year.

Hummingbird also intends to enhance its overall ESG initiatives at Yanfolila, furthering its environment- and social-impact assessment (ESIA) studies at Kouroussa and progressing ESG management procedures for the project, as well as with the company’s earn-in partners Pasofino at Dugbe, leading an ESIA process.