LONDON (ShareCast) - (Sharecast News) - Hummingbird Resources reported sales of 46,809 ounces of gold in its first half on Friday, at an average price of $1,794 per ounce.
The AIM-traded firm said revenue for the six months ended 30 June of $87m, down from $92m year-on-year, with an all-in sustaining cost of $1,437 per ounce, improving to $1,386 per ounce in the second quarter.

Adjusted EBITDA fell to $16.2m from $39m year-on-year, swinging to a pre-tax loss of $3.3m, from profit of $23.8m in the first half of 2020.

It said its results were in line with its guidance expectations, with full-year production set to be weighted towards the second half.

Net cash totalled $12.4m at period end, including gold inventory value of around $3.4m, with about $4.7m of final debt repayments made during the second quarter, taking the company into a debt-free position from a net debt position of $20m a year earlier.

The board maintained its 2021 production guidance of 100,000 to 110,000 ounces of gold, with an all-in sustaining cost of $1,250 to $1,350 per ounce of gold sold.

"We have yet again had another busy first half to the year - our key focus centred around productivity and predictability improvements at Yanfolila in Mali, which was reflected in our second quarter operational results, with gold ounces poured and all-in sustaining costs (AISC) improvements from first quarter levels," said chief executive officer Dan Betts.

"We completed the repayment of all the debt raised to build our Yanfolila operations, a key milestone of which we are extremely proud.

"Further, the drilling success we achieved in 2020 continued during the period."

Betts said a material number of metres was drilled at various deposits in the period, and some "stellar holes" were released, with more awaiting assays.

"Our growth project, Kouroussa in Guinea, advanced in the first half, and with the granting of the mining licences in May, our dedicated project management team are now finalising capital expenditure estimates, to then allow completion of financing and then begin construction.

"We are nearing the finalisation of our capex estimates and anticipate offering a more detailed update on the Kouroussa economics soon."

The company's other development project, Dugbe in Liberia, continued to advance through Hummingbird's joint venture partner Pasofino, Dan Betts explained.

"Material drilling has taken place at the two key deposits, Dugbe F and Tuzon, and improvements in infrastructure in and around the asset have been carried out.

"Additionally, a preliminary economic assessment was released showcasing the robust economics of the project.

"With improving operational protocols and efficiencies gaining traction at Yanfolila, Kouroussa moving towards beginning construction, and Dugbe advancing well towards a DFS, we are excited about the future prospects for the company and look forward to keeping the market updated on our progress for the remainder of the year."

At 0911 BST, shares in Hummingbird Resources were down 1.21% at 18.77p.

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