Hummingbird makes it through 'challenging' fourth quarter

African gold producer Hummingbird Resources updated the market on its operations on Wednesday, reporting that 91,620 ounces of gold was poured in 2018, which was at the top end of its revised guidance of between 87,000 oz and 92,000 oz.

The AIM-traded firm said 17,895 oz of gold was poured in the fourth quarter, at an all-in sustaining cost of $1,677 per ounce.

It said it had made a “good start” to operations in 2019, with production in January on track to produce around 10,000 oz.

The remediation of the pit wall at Komana East was also progressing “well”, according to the boar, with completion due in the coming weeks.

Construction of the second ball mill at Yanfolila remained on budget, and was on schedule for completion in the third quarter.

Hummingbird also pointed to its improving safety record at site, with the total recordable injury frequency rate dropping from 11.63 in the first quarter to 3.64 in the fourth quarter.

Guidance for 2019 was for between 110,000 oz and 125,000 oz production, at an all-in sustaining cost of between $800 and $850 per ounce.

On the corporate font, Hummingbird reported cash of $21m at period-end, including $9.5m drawn under its new loan for the second ball mill.

Debts stood at $61m, widening from $58m at end of the third quarter.

“The group has been through an operationally challenging quarter, but I am pleased to report that we have made significant headway on the ground in resolving the issues we faced,” said chief executive officer Dan Betts.

“January's production figures are in line with 2019's production guidance and mine plan and we are making positive progress with the construction of a second ball mill, which is due for completion in the third quarter of 2019.”

That would increase throughput and, along with its exploration campaign, the long-term value of Yanfolila, Betts explained.

“Over the course of the first quarter we look forward to receiving the remaining drilling results from the 2018 exploration campaign and working with the team to understand how to release the expected potential of these results in our life-of-mine planning.”