Hummingbird sets sights on resource conversion as targets 120,000 oz/year average output

Gold Pour at Hummingbird's Yanfolila. Source: Hummingbird Resources

HUMMINGBIRD Resources has targeted average gold production of 120,000 ounces a year for the next three years from its Yanfolila gold mine in Mali.

Production for this year has been guided to 125,000 oz which compares to 2019’s output of 115,649 oz. In light of the fairly modest numbers, Hummingbird CEO, Daniel Betts, said there were options to extend gold production further.

“It is important to stress this is considered to be a base case moving forward incorporating only current reserves,” said Betts in a company update today.

The company had “considerable resources” which it would try to develop through exploration and development work. “During 2020 exploration and development studies targeting this are a strategic focus of the company, and work has already recommenced in this regard,” he said.

In May last year, Betts said the company was giving thought to possible merger and acquisition activity in order to fast-track production and reduce the risk of its reliance on the performance of Yanfolila.

Although not as explicit this year, Betts nonetheless said the company’s strategy was to be net cash positive this year and remove all outstanding debt in the course of 2021. “In light of this rapid deleveraging the board will continue to evaluate the best ways to deliver value to shareholders whilst maintaining a balance with the strategic need to grow the mine life and the company,” he said.

Some 574,000 oz in gold production has been forecast over the next five years with production falling to 108,000 oz by 2024.