Hummingbird Resources plc
("Hummingbird", the "Group", or the "Company")
Q3-2023 Operational and Trading Update
Yanfolila well positioned to meet FY-2023 guidance & Kouroussa ramping up for a full year of commercial production from FY-2024.
Hummingbird (AIM: HUM) is pleased to provide a Group operational and trading update for the third quarter ending 30 September 2023 ("Q3-2023").
Operational update
Yanfolila Mine, Mali
· Yanfolila produced 18,399 ounces ("oz") of gold in Q3-2023, an increase of c.9% on the previous year (Q3-2022: 16,827 oz), with a total of 69,546 oz produced as of the end of September 2023.
· AISC on gold produced at Yanfolila totalled US$1,651 per oz in Q3-2023, a decrease of c.24% on Q3-2022 (US$2,161 per oz), with an average AISC of US$1,298 per oz to the end of September 2023.
· 18,550 oz of gold sold at an average realised price of US$1,918 per oz (Q3-2022: 16,917 oz sold at US$ 1,713 per oz). As of the end of September 2023, the Company held 1,834 oz of gold inventory.
Kouroussa Mine, Guinea
· In Q3-2023, Kouroussa produced 1,047 oz of gold, and another 614 oz shortly after. The Company's updated production expectations for H2-2023 is c.10,000 oz, and on track for a full year of commercial production from FY-2024.
· Through Q3-2023, the processing plant's overall performance continued to improve, with availability reaching c.82%. The plant is on track to operate on a consistent 24-hour basis during Q4-2023.
· Mining volumes at Kouroussa have encountered challenges during ramp-up, primarily stemming from seasonal weather, equipment commissioning, and the recruitment and training of local and national Guinean personnel. The Company is actively resolving these issues, with improvements being seen and expected to accelerate during Q4-2023.
Corporate update
· In Q3-2023, the Group achieved a Loss Time Injury Frequency Rate ("LTIFR ") of 0.80 per million hours worked, and Kouroussa surpassed 1 million operational hours Loss Time Injury ("LTI") free since the start of plant commissioning.
· In Q3-2023, the Group achieved an adjusted EBITDA of c.US$1.2 million, vs a loss of US$8.9 million in Q3-2022, resulting in a cumulative adjusted EBITDA of c.US$34.3 million as of the end September 2023.
· Per the Interim Results, a Group refinancing and funding package was agreed to provide additional cash liquidity and capital support. With both mines on track for full commercial production and increased cash flow generation from FY-2024, material balance sheet deleveraging is set to commence next year with scheduled repayments of c.US$77 million in FY-2024, c.US$61 million in FY-2025, and the remainder c.US$15 million payable by the end of FY-2028.
Outlook
· With 69,546 oz produced as at the end of September 2023 at Yanfolila, the Company is well on track to meet its FY-2023 production guidance of 80,000 - 90,000 oz, with AISC remaining under US$1,500 per oz.
· The Company remains focused on being a c.200,000 oz per annum gold producer and will provide formal FY-2024 Group production and AISC guidance at the Q4-2023 operational and trading update, expected at the end of January 2024.
Investor Presentation
The Company's senior management team will be holding an investor presentation today at 15:30 BST via the Investor Meet Company platform.
The event will cover the release and provide an opportunity for Q&A. The Company invites attendees to pre-send questions to the Company via IR@hummingbirdresources.co.uk |
