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Hummingbird Resources (LSE:HUM) has expanded its footprint as a multi-asset, multi-jurisdiction gold producer by the end of the year to December 31.
Yanfolila Mine Performance
The Yanfolila mine met its production targets, producing 83,965 ounces of gold at an all-in sustaining cost of $1,331 per ounce sold.
Kouroussa Mine Operations
The Kouroussa mine produced 6,068 ounces of gold during the reporting period, despite encountering unprecedented challenges during its ramp-up phase. The issues faced included a fire at the main fuel depot in Guinea and an operational suspension by Corica Mining Services. Despite these difficulties, the team’s strategic planning and partner support allowed the mine to continue operations.
Financial Results
For the fourth quarter of 2023, Hummingbird reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately $200,000. The cumulative adjusted EBITDA for the full year reached around $36.6 million. The company’s total revenue for the year was $167.1 million, which included $7.7 million from the sale of single-mine origin (SMO) gold.
During the year, Hummingbird raised approximately $22.4 million in equity through two fundraising rounds. An additional $22.2 million from the second round was received in January. This capital injection solidified CIG, the company’s largest shareholder, as a strategic partner. The company reported a diluted loss per share of $0.043 and total bank debt of $148.3 million, up from $115.7 million at the end of 2022.
Safety and Operational Metrics
Hummingbird’s lost-time injury frequency rate (LTIFR) for 2023 was 0.58 per million hours worked, surpassing the target of 1.20 LTIFR. The company has continued to focus on safety and community health initiatives throughout the year.
Outlook
Hummingbird aims to increase production at the Kouroussa mine to reach a target of 200,000 ounces of gold per year. The company is also focused on the Dugbe gold project in Liberia, which it acquired additional ownership in after the end of the reporting period. This asset is expected to play a key role in the company’s growth strategy over the coming year.
Pasofino Gold Drilling Update
Hummingbird also announced developments regarding its investment in Pasofino Gold. Pasofino recently completed its diamond core drilling program at the Bukon Jedeh gold camp within the Dugbe gold project. Hummingbird holds a 53% stake in Pasofino following a conversion of its interest in the Dugbe project and an additional $2 million investment earlier in the year.
The drilling program, which targeted various locations including existing mining pits and new exploratory holes, has identified promising intervals with pyroxene gneiss and sulphide minerals. These findings are considered encouraging as similar lithology hosts gold deposits in adjacent areas.
Drilling Results and Next Steps
The drilling was completed on time and within budget. Sampling is currently 50% complete, with the first batch of samples expected to be sent to the laboratory in early June. Results are anticipated in July and will be reported as they become available.
