In its half-year results for the six months to 30 June 2021, Hummingbird Resources (HUM) said it had fulfilled its milestone of repaying all debt raised to build its Yanfolila operations.
By period-end, the resource firm reported net cash of US$12.4m, including gold inventory value of around $3.4m. During 2Q21, the Group made around $4.7m of final debt repayments thereby moving it into a debt free position compared to 1H20 in which it held $20m in debt.
The Group reported revenue marginally lower at $87m in 1H21 compared to $92m in 1H20, with an all-in sustaining cost ('AISC') of US$1,437/oz (improving in 2Q21 to US$1,386/oz).
Meanwhile, adjusted EBITDA came to $16.2m (1H20: $39m) while the Group made a pre-tax loss of $3.3m compared to a profit of $23.8m in 1H20. Hummingbird said this remains in line with its guidance expectations as it expects full year production to be weighted towards 2H21.
Over the period, 46,809 ounces ('oz) of gold wass sold at an average price of US$1,794/oz. Looking ahead, the Group informed investors that it will maintain a 2021 production guidance of 100,000 - 110,000 oz of gold, with an AISC of US$1,250 - 1,350 per oz of gold sold.
The Group said it has seen ‘material progress and success’ at its Yanfolila exploration and drilling programme to date. In 1H21, around 32,500m of the 44,600 m forecast for the year was drilled (vs ~21,000 m drilled in 2020) with ‘significant drill hole intercepts’ reported.
The Company explained to investors that the majority of assays from the H1 Yanfolila drilling campaign are awaiting results from the labs in Bamako and that the Company anticipates being able to release these results during H2 2021 along with final drilling programmes.
Following a mineral resource estimate update of 1.929 million ounces, the Group now intends to release an updated reserve statement later this year, to include Kouroussa in Guinea.
Post-period, in July 2021, Hummingbird announced its drill results from the SE deposit at Yanfolila where 14 new holes continued to showcase a high grade open pit potential, with one hole demonstrating 5.33 grammes per tonne ("g/t") gold at surface for ~40 m.
Earlier this month, the Company released 18 new diamond drill hole results from the Komana East deposit. These positive results indicated that the mineralisation at the site continues north showing future underground mining growth potential as well as life of mine extension.
At the Dugbe Gold Project in Liberia, Hummingbird said ongoing positive drilling results in 1H21 at its two key deposits, Dugbe F and Tuzon, add additional upside potential to the economics of a previously curated independent Preliminary Economic Assessment ('PEA').
In addition, Pasofino also released results for a further six drill holes which are expected to have a positive impact on the updated Mineral Resource Estimate due in September 2021.
Commenting on the half-year results, Dan Betts, CEO of Hummingbird, said: "We have yet again had another busy first half to the year. Our key focus centred around productivity and predictability improvements at Yanfolila in Mali, which was reflected in our Q2 2021 operational results, with gold ounces poured and AISC improvements from Q1 2021 levels.”
He added, "Our growth project, Kouroussa in Guinea, advanced in H1 2021, and with the granting of the mining licences in May, our dedicated project management team are now finalising capex estimates, to then allow completion of financing and then begin construction.”
Betts concluded: "With improving operational protocols and efficiencies gaining traction at Yanfolila, Kouroussa moving towards beginning construction, and Dugbe advancing well towards a DFS, we are excited about the future prospects for the Company and look forward to keeping the market updated on our progress for the remainder of the year."
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