Hummingbird expects Yanfolila to catch up production after disappointing Q2

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

HUMMINGBIRD Resources was confident of recovering from a relatively underwhelming second quarter where production from its Yanfolila mine in Ghana came in at 24,054 ounces compared to 27,466 oz in the second quarter of the previous financial year.

The lower-than-expected production was owing to re-sequencing of certain parts of the mine plan, and reduced throughput as the company took a conservative attitude to spares and specialist personnel supply. The quarter also extended into Ghana’s rainy season.

Daniel Betts, CEO of Hummingbird Resources, said he expected a recovery in the second half of the year. Production guidance of 110,000 to 125,000 oz at an all-in sustaining cost (AISC) of up to $995/oz has been maintained.

The company said previously it was confident of moving into a net cash position in the second half of the year. Betts said the company remained on track to achieve this amid a surge in the dollar gold price.

Yanfolila was forecast to generate in excess of $60m of earnings before interest, tax, depreciation and amortisation (EBITDA) in the second half of the year – annualised at some $120m – assuming at current gold prices.

The first half of 2020 has been an active one for Hummingbird in terms of corporate development. It farmed out its Dugbe prospect in Liberia, and bought the Kouroussa gold project in Guinea in an all-share deal with Cassidy Gold Corporation worth $90m.

“We have now received the change of control approval from the Government of Guinea and are preparing to commence works as soon as practical following the anticipated granting of the necessary exploitation licence,” said Betts of Kouroussa.