African gold producer Hummingbird Resources (HUM) experienced a slower quarter due to a particularly heavy rainy season according to its Q3 results released today.
The production at its Yanfolila gold mine is in its second full quarter of commercial production since ramping up in March earlier this year.
The company sold 20,029 ounces of gold at an average price of US$1217/oz, producing $24.4 million in sales for the quarter. Last quarter the company sold 38,726 ounces at $1307/oz, for $50.6 million.
Heavy rain in the region hindered the company’s mining and processing, as well as damaging the only bridge to the site.
Dan Betts, CEO of Hummingbird, commented: "As previously guided, the quarter was always going to be softer in terms of mining and processing levels given the rainy season, which has been unusually heavy.”
The company also stated that pit stability issues were identified at the Komana East pit, with rehabilitation work being required to continue mining safely.
Mining in unaffected parts of the pit will continue, but the company has had to reduce its gold production guidelines for 2018.
With a £64m market cap, and shares trading 19p each, traders are taking this opportunity to gain exposure to its gold producing assets, with trading volume up nearly sevenfold, almost 6 million today compared to averages of 800,000.
The Yanfolila gold mine in Mali holds total resources of 1.8million ounces of gold, with opportunities further exploration.
The company also holds The Dugbe Gold Project in Liberia with resources totalling 4.2 million ounces of gold, and a 34% interest in AIM listed Cora Gold (CORA), which is advancing a portfolio of prospects in Mali and Senegal.
Follow News & Updates from HUM here:
