LONDON (ShareCast) - (Sharecast News) - Hummingbird Resources reported total second-quarter production of 19,855 ounces of gold in an update on Friday, bringing first half production to 42,722 ounces.
The AIM-traded firm said that at Mali's Yanfolila Mine, second quarter gold production reached 12,065 ounces with an all-in sustaining cost (AISC) of $2,598 per ounce.

It said the operation faced short-term mining challenges due to poor fleet availability and changes in mining sequencing, leading to increased waste stripping.

The company said it was implementing initiatives to improve production in the second half.

Yanfolila sold 12,457 ounces of gold during the quarter at an average realised price of $2,075 per ounce.

In Guinea, the Kouroussa Mine showed an improvement, producing 7,789 ounces of gold as operations ramped up towards commercial production.

The mine processed higher-grade material at the Koekoe deposit, with post-period results indicating further production increases.

By July, Kouroussa was averaging weekly gold pours of around 1,200 ounces, with about 4,800 ounces produced in the month.

The company said it anticipated achieving commercial production at Kouroussa by late in the third quarter.

On the corporate front, Hummingbird reported a lost time injury frequency rate (LTIFR) of 0.99 per million hours worked, outperforming its target.

However, it recorded an adjusted EBITDA loss of $13.5m for the second quarter, primarily due to reduced production at Yanfolila.

To support its operations, Hummingbird secured a $10m short-term loan from Nioko Resources, adding that it was in advanced stages of finalising a refinancing package with Coris Bank International to defer near-term debt repayments.

Looking ahead, Hummingbird updated its full-year 2024 production guidance to between 115,000 and 145,000 ounces at an all-in sustaining cost below $1,500 per ounce.

Yanfolila's guidance was revised to between 65,000 and 75,000 ounces at an all-in sustaining cost below $1,600 per ounce, while Kouroussa's guidance was reinstated to 50,000 to 70,000 ounces at an all-in sustaining cost below $1,400 per ounce.

Further updates were expected as Kouroussa reached full production.

"Despite the significant challenges faced by the company this quarter, much of the difficulty has stemmed from delays in ramping up operations at Kouroussa, compounded by nearly two months of lost production," said chief executive officer Dan Betts.

"These setbacks have had a considerable impact on both production and mine plans.

"However, it's crucial to understand that these issues are now behind us."

Betts said the company was working "closely and effectively" with Corica to achieve commercial production later in the quarter.

"Since Corica's return in May, they have consistently improved fleet availability and utilisation, enabling the mine to shift the necessary volume of BCM to sustain operations.

"Consequently, we have begun accessing the fresh rock ore body, which contains the high-grade, undepleted gold essential for Kouroussa's ramp-up.

"The fresh rock crushing circuit is fully commissioned, and as more fresh material is processed; we are witnessing a steady increase in gold production."

At 1047 BST, shares in Hummingbird Resources were down 18.82% at 6.9p.

Reporting by Josh White for Sharecast.com.

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