Hummingbird Resources (HUM ) 1Q22 update reported lower 1Q22 production, but promising investments are fuelling future growth to maintain FY22 expectations.
1Q22 Update
Hummingbird reported 1Q22 production of 15,548 oz compared to 18,181 oz for 1Q21 and an increased AISC (All-in Sustaining Cost) of $2,235 per oz vs. (1Q22; $1,803 per oz).
The lower production and higher AISC numbers were mostly a result of planned maintenance done at excavation sites and the gradual deployment of additional machinery.
FY22 Guidance
Improving maintenance schedules and the purchases of additional excavators are forecast to result in a continuous increase in mining rates throughout the remainder of the current year with management maintaining FY22 guidance.
The company's guidance projects 87,000-97,000 oz of gold production in 2022 at an AISC of $1,300-1,450, matching or beating FY21 numbers, despite 1Q22 quarterly production numbers.
Listen to Anthony Köcken, COO of Hummingbird Resources #HUM , discuss recent progress at the Yanfolila & Kouroussa gold projects HERE:
View From Vox
The market has responded negatively to the reported 1Q22 production numbers despite it being detailed in the Company's 4Q21 update and FY22 outlook release, where the quarter was forecast to be a lower production quarter versus the remaining quarters of 2022 due primarily to the completion of planned essential maintenance on the processing plant.
Looking beyond 1Q22, FY22 expectations include production guidance of 87,000 - 97,000 oz of gold, with an AISC of US$1,300 - US$1,450 per oz of gold due to improving trends in production and AISC.
In addition, the Company is expected to release a Resources and Reserve statement in 2Q22, which is expected to include positive results from the 2021 drilling campaigns at Yanfolila and Kouroussa.
In addition, earn-in partner, Pasofino Gold Ltd, remains on track to release details of the Definitive Feasibility Study on the Dugbe gold mine in Liberia in Q2 2022. Once finalised, this will be a significant milestone for the project and will complete its journey from being a pure exploration asset to a proven project with economic fundamentals of strategic value to Hummingbird.
Dan Betts, CEO, commented on the aforementioned developments and remarked on the immediate outlook for the company: "As a Company, we remain focused on the year ahead as we look to drive operational and productivity improvements at Yanfolila, remain diligent in terms of timeframe, cost, and quality delivery at Kouroussa towards first gold pour at the end of Q2 2023 and show a pathway to delivering shareholder value from Dugbe with a DFS to be issued soon."