HUMMINGBIRD Resources said it was on track to be net cash by the second half of its current financial year, but it also expected costs to increase as the fallout from the COVID-19 pandemic reverberated through the mining industry.
The London-listed firm, paid down $6m in debt leaving it with net debt of some $34m as of March 31. The company had cash on hand of $8m, some $1m lower than at the close of the previous quarter.
Hummingbird Resources mines the Yanfolila gold mine in Mali where operations have been largely uninterrupted by the COVID-19 pandemic, it said.
“The challenges posed by COVID-19 are extraordinary, dynamic and will undoubtedly affect us as they will every person and business imaginable,” said Daniel Betts, CEO of Hummingbird Resources in the firm’s first quarter production update today.
“Whilst it is not possible to see the full implications at this stage, it seems inevitable we will encounter costs pressures, just like other businesses, in our dealing with this unprecedented event,” he added.
Hummingbird poured 30,282 ounces of gold in the first quarter, down from 33,892 oz in the fourth quarter of the previous financial year. All-in sustaining costs were therefore higher quarter-on-quarter, increasing to $875/oz from $839/oz. Some 24,575 oz of gold was sold at an average price of $1,568/oz. The company has maintained 2020 production guidance of between 110,000 oz to 125,000 oz.
“Alongside maintaining production, the company remains committed to advancing its key medium and long term objectives of rapidly deleveraging and strengthening its balance sheet, whilst continuing to explore and develop the considerable resource upside opportunities at Yanfolila,” said Betts.
