Hummingbird to rub out bank debt as sets sights on adding new mine to portfolio

Daniel Betts, CEO, Hummingbird Resources

HUMMINGBIRD Resources moved into a net cash position at the year-end and said it would pay down all of its debt by the second quarter of the 2021 financial year. gold

Gold production has been guided to between 100,000 and 110,000 ounces.

Commenting on the firm’s fourth quarter production results, Hummingbird Resources CEO, Daniel Betts, said the firm would focus on new resources at its Yanfolila mine in Ghana and the development of Kouroussa, a project in Guinea.

The company had also agreed to a farm-in investment with junior Pasofino Gold which is drilling Hummingbird’s Dugbe project in Liberia. “I believe the foundations are set for 2021 to be a strong year for the company as we capitalise on the organic growth opportunities ahead of us and continue to progress towards our goal of being a multi-asset, multi-jurisdiction producing resources company,” said Betts.

Hummingbird produced 22,012 oz of gold in the fourth quarter of its 2020 financial year which took full year production to 101,069 oz at an all-in sustaining cost (AISC) of $1,147/oz. The “modest” production guidance for 2021 would be achieved at an AISC of $1,250 to 1,350/oz, said Betts.

He added that the company hoped to generate $70m in project-level earnings before interest, tax, depreciation, and amortisation, assuming current gold prices. This would help the company rub out the remaining $13m in bank debt. As of December 31, the company reported net cash of $1.5m.

“The company’s pre-development plans at Kouroussa continue, with our confidence of the exploration and mineral resource growth potential increasing the more work we do on the project,” said Betts.