TIDMHUM
RNS Number : 1314J
Hummingbird Resources PLC
25 April 2022
Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector:
Mining
25 April 2022
Hummingbird Resources plc
("Hummingbird" or the "Company")
Q1 2022 Operational and Trading Update
Hummingbird Resources plc (AIM: HUM) provides an operational
update for the first quarter of 2022 ("Q1 2022").
An interview with COO Anthony Köcken discussing the operational
and trading update can be viewed here.
Q1 2022 updates:
-- Quarter production: As forecast at the start of that year, Q1
2022 production was a lower production quarter at 15,548 ounces
("oz") of gold (Q4 2021: 18,181oz), driven primarily by the planned
essential maintenance work on the processing plant, and the gradual
improvement in mining rates as extra excavators were added during
the later end of the quarter, in particular. With additional
excavators now operating on site, daily mining volume rates have
continued to increase.
-- All-in Sustaining Cost ("AISC"): Increased AISC of US$2,235
per oz for Q1 2022 (Q4 2021: US$1,803 per oz) primarily due to the
lower quarterly production, with a lower AISC profile forecast for
the remainder of the year, in line with forecast production
improvements as detailed above
-- Gold sold: 15,179 oz of gold sold in Q1 2022 at an average
realised price of US$1,837 per oz (Q4 2021: 18,489 oz at an average
realised price of US$1,782). The Company held 2,557 oz of gold
inventory at 31 March 2022, valued at US$5.0 million
-- Kouroussa, Guinea: As previously announced, official
construction began at Kouroussa in January and is rapidly
advancing, with civil works now underway. The project remains on
schedule for first gold pour by the end of Q2 2023
Outlook:
-- Guidance: The Company maintains its 2022 guidance of 87,000 -
97,000 oz of gold, with an AISC of US$1,300 - US$1,450 per oz of
gold with forecast improving trends in production and AISC as
detailed above
-- Company reserve update: An updated Company Resources and
Reserve statement, to include the 2021 drilling campaigns at
Yanfolila and Kouroussa, remains on schedule to be released later
in Q2 2022
-- Dugbe, Liberia: Earn-in partner, Pasofino Gold Ltd
("Pasofino"), remains on track to release details of the Definitive
Feasibility Study ("DFS") on the Dugbe gold mine in Liberia in Q2
2022. Once finalised this will be a significant milestone for the
project and will complete its journey from being a pure exploration
asset to a proven project with economic fundamentals of strategic
value to Hummingbird
Dan Betts, CEO of Hummingbird, commented:
"Significant work has been completed in Q1 to deliver more
consistent and elevated future production at Yanfolila, including
integrating additional excavators on site to improve mining volume
rates, something that we are already starting to see. As guided at
the start of the year, Q1 production was lower, with improvements
expected from here.
Alongside the work at Yanfolila, we continue to make strong
progress at Kouroussa, with construction officially starting in the
new year and rapidly advancing, with major civil works now
underway. At Dugbe, the DFS is being finalised via our earn-in
partner Pasofino, with details expected to be released soon.
We continued to receive the final results from our 2021
group-wide drilling campaign during the quarter for both Yanfolila
and particularly Kouroussa where we have continued to intersect
many significant intercepts. These results are now being
incorporated i nto our updated Company Resources and Reserves
statement, which is expected to be released later this quarter.
As a Company, we remain focused on the year ahead as we look to
drive operational and productivity improvements at Yanfolila,
remain diligent in terms of timeframe, cost, and quality delivery
at Kouroussa towards first gold pour at the end of Q2 2023 and show
a pathway to delivering shareholder value from Dugbe with a DFS to
be issued soon. "
Operational Summary
Unit Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021
----------------------- ------ ---------- ---------- ---------- ---------- ----------
Gold poured oz 15,548 18,181 22,102 24,494 22,781
------ ---------- ---------- ---------- ---------- ----------
Mined BCMs bcms 2,164,253 1,920,311 2,095,935 2,672,788 2,865,292
------ ---------- ---------- ---------- ---------- ----------
Ore mined t 502,800 445,808 392,005 443,490 364,114
------ ---------- ---------- ---------- ---------- ----------
Ore processed t 298,925 341,936 326,020 391,652 345,374
------ ---------- ---------- ---------- ---------- ----------
Avg. grade mill feed g/t 1.71 1.79 2.27 2.14 2.16
------ ---------- ---------- ---------- ---------- ----------
Recovery % 95.39% 92.38% 91.95% 91.88% 92.97%
------ ---------- ---------- ---------- ---------- ----------
Gold inventory - incl
SMO oz 2,557 2,246 2,769 1,972 2,596
------ ---------- ---------- ---------- ---------- ----------
* Ore mined includes high grade, low grade, and marginal
material. Ore processed is a blend based on preferential feed of
high-grade and low grade, with marginal ore added as an incremental
feed source
-- Q1 2022 production of 15,548 oz was a low production quarter,
however, as detailed in the Company's Q4 2021 operational update
and 2022 outlook release, the quarter was forecast to be a lower
production quarter versus the remaining quarters of 2022 due to the
completion of planned essential maintenance on the processing plant
and the gradual implementation of extra excavator fleet to improve
daily mining volume rates
-- Additional excavators are now on site and operating, which
has led to increased daily mining volume rates. Further, we note
additional maintenance programmes were undertaken during the
quarter to improve the overall fleet performance of our contract
miner, with some positive productivity improvements starting to be
seen on the existing fleet
-- Grade mill feed for Q1 2022 averaged 1.71 g/t versus 1.79 g/t averages in Q4 2021
o The Q1 2022 grade profile was again relatively low primarily
due to lower grade sections of the orebody accessed during the
period and a run of mine ("ROM") pad not fully optimised to allow
for more consistent better grade ore feed into the mill, resulting
in lower grades being processed for the quarter
o With improved mining rates and practices taking place, the
quantity and quality of ore on our ROM pad is scheduled to improve,
with expectations to then allow for better mill grade feed to be
processed
o Further, we are also looking to increase throughput at the
mill in Q2 before the wet season, in particular utilising
increasing oxide stockpiles from mining at the Sanioumale West
("SW") deposit, which is now taking place
o Mined bank cubic meters ("BCMs") totalled 2,164,253 in Q1 2022
versus Q4 2021 in 1,920,311 being a c.12% improvement as the
additional excavator fleet became operational, especially in the
later end of the quarter
-- Processing plan recovery rates for Q1 2022 improved versus previous quarters, at 95.39%
-- The Company continues to finalise the analysis of the optimal
Yanfolila underground development route to then put into the future
mine plans and will provide more updates once our analysis is
completed
-- During the quarter, the Company received and analysed a
further c.12,000 m of assays from the Sanioumale East ("SE")
deposit showing continuing high-grade intercepts being received,
and c.3,179 m of assays from the first round of drill testing done
at greenfield deposit BBC, which showed the potential to establish
new resources at this deposit
Kouroussa, Guinea
During the quarter, significant progress was made on
constructing the Company's second producing gold mine, Kouroussa,
with the scheduled timeline remaining on track to achieve the first
gold pour by the end of Q2 2023. Key updates included:
-- The commencement of civil works on-site and near completion
of the processing plant and camp site accommodation earth works
-- The construction of several key components of the processing
plant, including the fabrication of the CIL tanks and the
finalisation of their foundation works
-- The ordering of several long lead items, including apron
feeders, jaw crusher, SAG mill, cyclone cluster, and agitators
-- Excavation of the Tailing Storage Facility ("TSF") pond area commenced
-- The temporary construction camp was completed and
operational. The main site operations camp was cleared, and base
layers were installed ahead of foundation works
-- The arrival of key equipment, tooling, machinery, personnel,
and consumables to the site continued during the quarter, with
operational readiness planning and preparations underway
-- The power and mining contractor contracts negotiations are
nearing finalisation and expected to be awarded soon
-- In Q1 2022, the Company released a further c.8,767m of infill
drilling results at Kouroussa's key deposit Koekoe, with multiple
high-grade intercepts received, further strengthening the Company's
knowledge base and confidence in the Kouroussa asset
-- Future exploration review studies are underway on near-mine
targets, with the expectation that further exploration drilling
campaigns to be initiated in the future with the focus to increase
Kouroussa's overall Resources and Reserves base
-- Community engagement remains a key feature of all workstreams
Dugbe, Liberia
The Company's earn-in partner at Dugbe, Pasofino, provided a
positive progress update on the DFS, which is scheduled to be
released in Q2 2022.
Financial Summary:
Unit Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021
---------------------- ------- -------- -------- -------- -------- --------
Gold sales oz 15,179 18,489 22,255 24,790 22,019
------- -------- -------- -------- -------- --------
Avg. gold sale price $/oz $1,871 $1,782 $1,782 $1,802 $1,788
------- -------- -------- -------- -------- --------
Operating cash costs $'000 $32,177 $32,486 $33,472 $33,986 $31,588
------- -------- -------- -------- -------- --------
AISC on gold sold $/oz $2,235 $1,803 $1,520 $1,386 $1,494
------- -------- -------- -------- -------- --------
Net (debt) / cash $'m ($47.4) ($25.0) ($5.9) $9.0 $0.5
------- -------- -------- -------- -------- --------
Net (debt) / cash
incl gold inventory
value $'m ($42.4) ($21.0) ($1.0) $12.4 $4.9
------- -------- -------- -------- -------- --------
Debt repayments $'m - - - $4.7 $8.6
------- -------- -------- -------- -------- --------
-- Q1 AISC of US$2,231 per oz was high, driven by lower ounces
of gold poured during the quarter, and as noted in the key updates
above, a lower ASIC profile is forecast for the remainder of the
year, in line with production improvements
-- Cost inflation is being felt in general, particularly in fuel
and consumables. The Company has instigated a programme to analyse
ways to deliver cost efficiency improvements at the Yanfolila
operations to mitigate these pressures. However, the key focus is
on improving Yanfolila's production profile, to then deliver an
improved AISC profile
-- For Kouroussa, although similar cost pressures are being
felt, the bulk of the construction contract is at a fixed price,
with our forecast capex as detailed on 12 October 2021 remaining on
budget
-- Net debt position c.US$47.4 million end of Q1 2022 (c.US$42.4
million including gold inventory value), with the final c.US$30
million loan available from Coris Bank International ("Coris Bank")
expected to be drawn in Q2 2022 to help facilitate the Kouroussa
construction build
ESG Q1 2022 updates include:
-- COVID-19: Mitigation measures remained in place at our
operations, and importantly the rise in cases as seen in Q4 2021
has reduced materially during the quarter
-- Kouroussa community engagement: Increased overall community
engagement took place during the quarter as construction advanced,
with more detailed longer term community project planning now
taking place as the Company rapidly moves towards the production
phase in 2023
-- Energy Efficiency: The Company is in the final stages of
negotiations of our power contract at Kouroussa, to then deliver on
low carbon emission initiatives including a +7 megawatt ("Mw")
solar power plant and energy saving waste heat recovery systems to
be imbedded into the overall build process
-- Dugbe, Liberia: During Q1 saw the advancement of the
Environmental and Social Impact Assessment ("ESIA") study, which is
expected to be finalised post the DFS
Notes to Editors:
Hummingbird Resources (AIM: HUM) is a multi-asset,
multi-jurisdiction gold production, development and exploration
Company, a member of the World Gold Council and a founding member
of Single Mine Origin ( 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 placing our Environmental, Social
& Governance ('ESG') policies and practices at the heart of all
we do.
For further information, please visit hummingbirdresources.co.uk
or subscribe to our investor releases via investor email alerts
Daniel Betts, Hummingbird Resources Tel: +44 (0) 20 7409
CEO plc 6660
Thomas Hill,
FD
Anthony Köcken
, COO
Edward Montgomery,
CSO & ESG
James Spinney Strand Hanson Limited Tel: +44 (0) 20 7409
Ritchie Balmer Nominated Adviser 3494
-------------------------- ----------------------------
James Asensio Canaccord Genuity Limited Tel: +44 (0) 20 7523
Thomas Diehl Broker 8000
-------------------------- ----------------------------
Bobby Morse Buchanan Tel: +44 (0) 20 7466
Ariadna Peretz Financial PR/IR 5000
James Husband Email: HUM@buchanan.uk.com
-------------------------- ----------------------------
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