Hummingbird Resources (HUM ), an Africa-focused gold explorer, updated markets on Q4 2022 production and FY 23 outlook.
Hummingbird reported strong fourth quarter production at its Yanfolila gold mine in Mali, up 64% quarter-on-quarter to 28,264 oz. Full-year 2022 production met the company's revised guidance at 80,635 oz.
All-in Sustaining Cost (AISC) for Yanfolila also improved quarterly to US$1,248/oz in Q4 2022 from US$2,161/oz in the previous quarter. Full-year 2022 AISC stood at US$1,782/oz, meeting revised guidance.
The miner sold 27,860 oz of gold from Yanfolila in the quarter at an average realised price of US$1,726 per oz, another material quarterly improvement over the 16,917 oz sold in Q3. The company held 2,057 oz of gold inventory on 31 December 2022, valued at US$3.7m.
Hummingbird's other core asset is the Kouroussa gold project in Guinea, which it said remained on track for first gold pour at the end of Q2 2023, with critical path construction and operational readiness items nearing completion.
Furthermore, at its 51%-owned Dugbe Gold Project in Liberia, Hummingbird said it was conducting a strategic review with JV partner Pasofino, to best realise maximum value of the project.
Dan Betts, CEO, commented: "Following the initiation of restructuring the Company's contract mining operations as detailed last quarter, Hummingbird finished the year in a substantially stronger position, with Yanfolila producing its best quarterly production for several years, of over 28koz, an improved AISC profile generating positive cashflows, with similar trends continuing for this current quarter.
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For 2023 we will achieve our strategic goal of being a multi-asset, multi-jurisdiction gold producer. With Yanfolila operational performance improving, and Kouroussa set to come online the end of Q2 2023, the Company is at a pivotal juncture for exponential growth, with expectations for improved cash flow generation and a stronger balance sheet this year."
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Hummingbird closed FY22 with strong production at its flagship Yanfolila gold project, up 64% quarter-on-quarter to 28,264 oz. Markets cheered Yanfolila's highest quarterly production in several years, pushing HUM shares up 12% in early trading. Hummingbird reported "similar trends continuing for this quarter", so current and prospective investors should the company to be notified of the next quarterly update.
Hummingbird current FY23 production guidance for Yanfolila is 80,000-90,000 oz with full-year AISC of under US$1,500/oz.
Hummingbird continues construction on its other core asset, the Kuroussa gold project in Guinea. Kuroussa boasts a current reserve of 647,000 oz at 4.15 g/t. The mine is estimated to produce 120,000-140,000 oz for the first 3 years of production and average 100,000 oz over its initial life of mine (LOM).
Kuroussa remains on schedule for first gold pour at the end of the second quarter of FY 2023. The project is undergoing further exploratory drilling, with potential LOM upside expected in the second half. Hummingbird expects Kourussa to push it past 200,000 oz of gold production.
The company also achieved WGC RGMP compliance during the quarter as reported in November thanks to its efforts on community engagement and renewable energy. The company is therefore a suitable buy for ESG-minded investors.
Hummingbird is expected to provide full 2023 guidance once Kouroussa is in full production and ramping up.
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