Hummingbird Resources (HUM) announced on Monday its 5 year production guidance for the company’s Yanfolila gold mine in Mali.
The gold miner expects to produce between 110,000 to 125,000 ounces of gold in 2020, 120,000 ounces in 2021, 121,000 ounces in 2022, 100,000 ounces in 2023, and 108,000 ounces in 2024, with ASICS of $850-$895 per ounce.
Hummingbird however, reiterated to investors the potential of its exploration work to convert resources into reserves.
In 2018/2019, Hummingbird’s exploration activities converted 230,000oz to indicated resources and delineated 62,000 oz of inferred resources.
Hummingbird also said it will continue to deleverage to achieve positive net cash during 2020, aiming to pay off all debt by mid 2021.
Shares in Hummingbird were trading flat at 23.75p on Monday
Dan Betts, CEO said, "It is important to stress this is considered to be a base case moving forward incorporating only current Reserves.”
“In addition to the Reserves used in this plan, the mine still has considerable Resources (both open pit and underground), which we will look to utilise in our exploration and development work in order to extend and improve the plan further.”
He added: “During 2020 exploration and development studies targeting this are a strategic focus of the Company, and work has already recommenced in this regard.”
Hummingbird said it plans to explore an open pit at Sanioumale East, underground operations at Komana East, and greenfield targets at various ‘high priority targets’ around the license.
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