HUMMINGBIRD Resources warned that full year gold production would be below the lower end of its 100,000 to 110,000 ounce guidance for 2021 following disruption at its Yanfolila mine in Mali.
Production at Yanfolila had been suspended following “unrest and illegal road blocks in the region” which had “impacted the company’s ability to safely continue operations at the mine”, it said in an announcement today.
The matter had been elevated to the national Government, it added.
Shares in the company were 16% weaker in London today and were last trading at 13.85 pence per share valuing Hummingbird at £54.3m.
“The Government of Mali is aware of the situation and is actively engaged in resolving these disruptions and we anticipate the situation will be short lived,” said Dan Betts CEO of Hummingbird Resources. “This short term interruption should not overshadow the tremendous pipeline of development work and opportunity the company has in front of it,” he said.
Hummingbird announced in October that it expected to produce first metal from its $115m Guinea project, Kouroussa in the second quarter of 2023. The mine is scoped to produce between 120,000 to 140,000 ounces of gold a year over seven years.
Hummingbird said the current “illegal action” was from a small minority that was not representative of the Yanfolila communities.
“The situation on site remains calm and orderly with all employees and contractors safe and accounted for,” the company said. “Once conditions allow, a full assessment of plant and equipment will be carried out and any potential impacts will be evaluated.”
