Hummingbird Resources (HUM) has released its Q4 2018 gold production, where it has produced 17,895oz of gold, bringing its 2018 production to 91,620oz, at the upper end of its revised production guidance.
After a heavier than usual wet season and pit stability issues forced the company to revise its previous 105-115,000oz gold production, it is back on track after re-confirming its guidance to 110-115,000 oz, however there was an associated ASIC (All In Sustaining Costs) increase to accommodate for remediation work.
The company also revealed that its second ball-mill at Yanfolia was one third complete. The ball-mill is set to increase throughput capacity (the maximum rate of production) by almost 25%, from 1Mtpa to 1.24Mtpa, when operating with 100% fresh material.
The investment required an additional $9.5m of debt to finance the $13m capital expenditure needed for construction but represents a good return on investment according to the company. The increased throughput capacity could enable Hummingbird to produce more gold over a period, construction is due to be completed in Q3 2019.
Dan Betts, CEO of Hummingbird, said: "The Group has been through an operationally challenging quarter, but I am pleased to report that we have made significant headway on the ground in resolving the issues we faced.”
Mr. Betts added that the second ball mill will increase throughput and, along with the exploration campaign, increase the long-term value of Yanfolila.
He said: “Over the course of Q1 we look forward to receiving the remaining drilling results from the 2018 exploration campaign and working with the team to understand how to release the expected potential of these results in our Life of Mine planning."
Additionally, the new bridge being built by the government is due to finish in Q2 2019, as the company continues to use a military barge to transport heavy equipment.
Gold was trading at an 8-month high of $1315/oz as investors weigh the possibility of less US rate hikes and signs of slower global growth.
Read why gold producing miners represent a more leveraged exposure to rising gold prices
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