LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg slightly raised their target price on precious metals miner Hummingbird Resources from 44.0p to 50.0p on Thursday after the group maintained its full-year guidance following an in-line second quarter of trading.
Berenberg said Hummingbird's second-quarter gold production from Yanfolila was 24,000 ounces, with 334,000 tonnes mined and 337,000 tonnes processed at an average mill grade of 2.36 grams per tonne.

Recoveries were 94.78% and gold sales were 31,520 ounces, with an average realised price of $1,663 per ounce and an all-in sustaining cost of $983 an ounce.

Production was, however, below management's initial expectations due to changes in the sequencing of the mine plan to safeguard the plant in case of Covid-19-related logistical issues, highlighted the analysts.

The German bank noted that total recordable injury frequency rate for the period was 2.3, below the company's target of 2.5 and the 2.82 achieved in the final quarter of 2019.

However, Berenberg noted that Hummingbird had maintained guidance of 110,000-125,000 ounces at an all-in sustaining cost of $995 an ounce - ahead of its expectation of 113,000 at $995.

"These results are in line with our expectation and guidance has been maintained," said Berenberg.

"We retain a 'buy' recommendation and move our price target to 50p from 44p based on 1x NAV and 4x EV/EBITDA. We expect the shares to rerate as exploration extends the mine life at Yanfolila and the new Kouroussa project is developed."

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE