HUMMINGBIRD Resources had “ended on a high” following another stable period of production at its Yanfolila gold mine in Ghana, the company said in a fourth quarter update today. It had targeted “aggressive” debt reduction for its 2020 financial year.
Production came in at 115,649 ounces for the 2019 financial year within guidance of 110,000 to 125,000 oz. All-in sustaining costs (AISC) for the fourth quarter were $839/oz which compares to $849/oz in AISC for the third quarter.
Daniel Betts, CEO of Hummingbird, said the fourth quarter performance – its best quarter to date – was “a considerable achievement” following technical problems earlier this year. He said 2020 would be typified by aggressive ‘deleveraging’ of the balance sheet.
“We will continue to deleverage aggressively, paying down our outstanding debt and target a position of net cash in H2 2020, as we continue our focus on increasing shareholder value,” he said. The company hoped to be debt free by the close of its 2021 financial year.
“We are positive in our outlook for 2020 and look forward to releasing our 2020 guidance with an updated rolling mine plan incorporating the new open pit reserves,” said Betts.
“We will also add further detail on our plan to develop the considerable opportunities within the Yanfolila licenses via targeted exploration and developing underground studies.”
There was no mention of potential merger and acquisition activity by Betts who said in May the company’s board was conscious of the risk associated with its single-asset status. The company was “ambitious to diversify,” he said at the time.
Shares in Hummingbird edged up just over a percent on the London Stock Exchange today and are about 9% down on a 12-month basis.
