Hummingbird makes strides in interim period

26th August 2020

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

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Aim-listed Hummingbird Resources achieved significant progress during the six months to June 30, despite the difficulties of navigating the Covid-19 pandemic, CEO Dan Betts says.

“The recent political unrest in Mali, while a concern, has not impacted on our current operations, which are some 280 km from the capital; however, we are closely monitoring any potential impact it may have on logistics.

"We have a highly capable security team in-country and on site who are keeping our operations, contractors and management teams well informed of ongoing developments so as to safeguard our employees, contractors, communities, operations and assets.” he notes.

He indicates that production has continued at the Yanfolila mine and that the company has adapted its procedures to operate within the context of Covid-19 restrictions.

It sold 56 095 oz of gold in the six months under review.

Hummingbird has also continued its planned exploration programme, which is now 75% complete.

Over 12 000 m of drilling has been completed and significant results are being returned, increasing the company’s confidence in its potential underground mine at Komana East and in our resource and greenfield exploration programmes, notes Betts.

"The first half of the year was busy in terms of mergers and acquisition activity. The acquisition of Kouroussa is a significant step forward in our growth strategy to be a multi-asset producer and provides us with the potential to develop another asset into production, which also has significant exploration upside.

"Additionally, the earn-in agreement with ARX for Dugbe, Liberia will enable us to realise value from the project whilst allowing us to focus on our core business. The recent announcement from Pasofino gold is a positive development and we look forward to further updating the market with progress at the project,” acclaims Betts.

Hummingbird signed a share purchase agreement to acquire the Kouroussa gold project in Guinea and an earn-in agreement with ARX Resources to advance the Dugbe gold project in Liberia.

During the period, Hummingbird made a pre-tax profit of $23.7-million, significantly reduced its bank debt and is on track to pay off all currently held debt by the end of the first half of 2021.

“We are, therefore, in a strong position to deliver our goals for the second half of 2020, maintaining our production guidance for Yanfolila while progressing Kouroussa, which provides us with the potential to become a near-term multi-asset producer, near doubling our current production profile,” enthuses Betts.

The company posted adjusted earnings before interest, taxes, depreciation and amortisation of $38.9-million for the period.

POST PERIOD

The nonrefundable deposit of $2-million for the Dugbe earn-in has been received from ARX with necessary consents/waivers received from Anglo Pacific Group and the government of Liberia.

Pasofino Gold, which is in the process of acquiring ARX, announced on August 21 that it had entered into bought deal private placement to raise about C$10-million. This is scheduled to close on or about September 10, subject to certain conditions including, TSX-V and regulatory approval.

OUTLOOK

Hummingbird has maintained its full-year guidance at 110 000 oz to 125 000 oz.

The company is on track for current bank loans to be fully repaid by the end of the first half in 2021.

Yanfolila life-of-mine drilling campaigns are continuing, with a successful completion of the Komana East underground mineral resource drilling campaign.

Further, ongoing infill and mineral resource extension drilling campaigns continue at Sanioumale West, which are showing solid progress.

Development plans and the permitting process continue to progress at Kouroussa.

Edited by Creamer Media Reporter

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