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Hummingbird Resources (LSE:HUM) has released its operational and trading update for the second quarter ending 30 June 2024. The report highlights the company's gold production, corporate developments, and financial performance, providing insight into its outlook for the remainder of the year.
Group Production Performance
Hummingbird Resources reported total group production of 19,855 ounces of gold in Q2 2024, bringing the production for the first half of 2024 (H1 2024) to 42,722 ounces. Despite this progress, the company's production at its Yanfolila mine faced challenges, leading to a revision of its full-year guidance.
Corporate Update
The company achieved a Lost Time Injury Frequency Rate (LTIFR) of 0.99 per million hours worked across 2.5 million hours during Q2 2024, surpassing its target of 1.20 LTIFR. This improvement in safety metrics reflects Hummingbird's ongoing commitment to maintaining a safe working environment across its operations.
However, the company reported a Group adjusted EBITDA loss of $13.5 million for the quarter, primarily driven by reduced production at Yanfolila. In response to this financial strain, Hummingbird secured a short-term loan of $10 million from Nioko Resources, a wholly owned subsidiary of CIG SA, the company’s largest shareholder. This loan is expected to provide the necessary liquidity to support the company's operations in the near term.
Furthermore, Hummingbird is in the advanced stages of finalizing a refinancing package with Coris Bank International, which aims to defer near-term debt repayments on a portion of its existing facility to H2 2025. The company has also indicated that additional non-equity financing options are being explored to further strengthen its balance sheet as it aims to achieve full operational capacity in the coming quarters.
FY 2024 Outlook
Given the mixed performance across its operations, Hummingbird has updated its full-year 2024 production guidance. The company now expects group production to range between 115,000 to 145,000 ounces of gold, with an All-In Sustaining Cost (AISC) below $1,500 per ounce.
- Yanfolila Mine: Following a weaker-than-expected H1 2024, Hummingbird has revised its production guidance for the Yanfolila mine to 65,000 to 75,000 ounces, with an AISC below $1,600 per ounce. The company is focusing on executing its H2 2024 weighted mine plan and implementing operational initiatives to improve performance.
- Kouroussa Mine: The guidance for the Kouroussa mine has been reinstated, with expected production of 50,000 to 70,000 ounces at an AISC below $1,400 per ounce. Hummingbird plans to provide refined guidance once the mine reaches commercial production.
