TIDMHUM
RNS Number : 6446V
Hummingbird Resources PLC
15 December 2021
Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector:
Mining
15 December 2021
Hummingbird Resources plc
("Hummingbird" or the "Company")
Yanfolila Mine Operational Update
Hummingbird Resources plc (AIM: HUM) provides an operational
update on the Yanfolila mine in Mali ("Yanfolila" or "the mine")
following the Company's release on 1 December 2021, notifying that
the mine is back in operation.
Key updates:
-- As per the release dated 1 December 2021, mining and
processing operations have recommenced, having ceased operations
for approximately six days, with all employees and contractors
safely accounted for
-- The Company is in the process of returning the mine operation
to a more normalised level of production, with further details on
the current work programmes provided below
-- As a precautionary measure, increased security, including the
presence of National Mali Government personnel, will remain in
place as Yanfolila ramps up production
-- Furthermore, in relation to the Company's mining contractor
excavator availability issues detailed in the Company's Q3 2021
Operational and Trading Update, the Company notes that two of the
larger excavators, of a fleet of seven, that were unavailable for
most of September, are back online. However, the mining
contractor's excavator fleet is failing to perform consistently to
the scheduled mining volume rates. Accordingly, the Company is
seeking to mitigate this risk with our mining contractor by:
o Carrying out a detailed review of the overall contractor
equipment maintenance procedures and equipment status
o Seeking to bring in additional excavators to increase
availability, optionality, and allow better maintenance of existing
equipment. One additional unit is expected to be delivered and
operational before year end
-- As noted in the 29 November 2021 release, t he Company
advised that the full year production forecast would be below the
bottom end of the 2021 guidance range. Current gold poured for the
year is currently over 82,000 ounces ("oz") (unaudited). Due to the
above circumstances, the Company now expects full year 2021
production of 84,000 to 89,000 oz at All in Sustaining Cost
("AISC") range of US$1,490 to US$1,590 per ounce
-- The Company will provide a more detailed operational update
post year end, in the Q4 2021 and 2022 outlook statement, including
convening a call with investors, and which is scheduled to be
released late January 2022
Anthony Köcken , COO of Hummingbird, commented:
"Though the disruption caused by a small minority has impacted
our operations at Yanfolila, our focus on protection protocols of
our employees, contractors and host communities has been effective.
Hummingbird is working collaboratively with our host communities
seeking to ensure that such disruptions do not happen again. The
key focus for the Company at Yanfolila as it moves into the year
end is to continue to run the operations safely for the benefit of
all stakeholders, executing efficiently on the current mine plans
and providing the platform for a more sustainable operational
performance in 2022 and beyond."
Dan Betts, CEO of Hummingbird, commented:
"Despite the challenges at Yanfolila during the quarter, the
Company is installing mitigating measures to ensure a more
sustainable production profile at the mine. We are currently
finalising our 2022 budgeting programmes with a focus on providing
increased production flexibility at Yanfolila, with the goal being
to improve free-cash flow generation from the mine and continuing
with the Company's overall growth plans.
We are cognisant of providing investors with more details, and
once the year is complete, we will be providing the opportunity for
a Q&A session with senior management post the release of the
Company's Q4 2021 and 2022 outlook statement, scheduled for late
January 2022."
Security presence
Increased security and the presence of National Mali Government
personnel has led to an overall slowing of the movement of people
and equipment as these security measures remain in place. As a
precautionary security measure, when operations restarted, mining
could not run on a 24-hour basis as is normal. However, we note
operations are now running on 24-hour a basis, albeit currently at
slower rates as operations continue to ramp up.
Restarting Operations
As noted above, the Company is currently in the process of
returning of Yanfolila to more normalised levels of production.
Work is ongoing and further details of completed workflows are
provided below;
-- The Company has completed the dewatering of the key operating
pits, Komana East and Komana West, which saw water ingress into
these pits due to the equipment being unable to be manned and
maintained during the unrest period. This initially impacted the
ability to operate as planned however, both pits are now back in
operation
-- The ramping up of the processing plant since recommencing
operations has been gradual, in line with the availability of ore
supply from operating pits as they recover to more normal
levels
-- The Company has restored Yanfolila's regular gold pours which
were temporarily ceased during the unrest
-- Supply chain checks have been finalised. The Company reports
minimal ongoing impacts on crucial supply chain requirements,
including fuel; food; reagents and critical spares
-- A full review of plant and equipment has been implemented
with limited damage reported and all required repairs completed
**ENDS**
Notes to Editors:
Hummingbird Resources (AIM: HUM) is a multi-asset,
multi-jurisdiction gold production, development and exploration
Company, member of the World Gold Council and founding member of
Single Mine Origin (www.singlemineorigin.com). The Company
currently has two core gold projects, the operational Yanfolila
Gold Mine in Mali, and the Kouroussa Gold Mine in Guinea, which
will more than double current gold production when in production,
scheduled for first gold pour end of Q2 2023. Further, the Company
has a controlling interest in the Dugbe Gold Project in Liberia
that is being developed by Pasofino Gold Limited through an earn-in
agreement. Our vision is to continue to grow our asset base,
producing profitable ounces, while central to all we do being our
Environmental, Social & Governance ('ESG') policies and
practices.
For further information please visit https://www.hummingbirdresources.co.uk/ or contact:
Daniel Betts, CEO Hummingbird Resources plc Tel: +44 (0) 20 7409 6660
Thomas Hill, FD
Anthony Köcken , COO
Edward Montgomery, CSO & ESG
James Spinney Strand Hanson Limited Tel: +44 (0) 20 7409 3494
Ritchie Balmer Nominated Adviser
-------------------------- ----------------------------
James Asensio Canaccord Genuity Limited Tel: +44 (0) 20 7523 8000
Thomas Diehl Broker
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Bobby Morse Buchanan Tel: +44 (0) 20 7466 5000
Ariadna Peretz Financial PR/IR Email: HUM@buchanan.uk.com
James Husband
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