Hummingbird Resources plc (AIM: HUM) is pleased to provide an operational and trading update for the first quarter of 2021 ('Q1 2021').
Q1 2021 Highlights
Gold poured: 22,781 ounces ('oz') of gold poured in Q1 2021 (Q4 2020: 22,012 oz)
Gold sold: 22,019 oz of gold sold in Q1 2021 at an average realised price of US$1,788 per oz
Gold inventory: 2,596 oz gold inventory at 31 March 2021, valued at US$4.4 million
All in Sustaining Cost ('AISC'): US$1,494 per oz for Q1 2021 (Q4 2020: US$1,496 per oz). Q1 AISC driven by: Relatively low planned quarterly production and mill grades
High strip ratio as the Company accesses the Komana West ('KW') ore body in particular
Sustaining capex being weighted to first half of the year, including the tailings storage facility ('TSF') dam lift
Outlook: The Company re-iterates its 2021 production guidance of 100,000 - 110,000 oz of gold, with an AISC of US$1,250 - 1,350 per oz on gold sold. Q1 2021 is expected to be the lowest production quarter for the year, with improvements expected in Q2 2021 and for the rest of the year from Q1 levels. AISC is also expected to improve from current levels, in line with improvements in production expectations to meet the above AISC year end guidance range
Health & Safety: The Company's impressive health and safety track record continued during the quarter with an improving Total Recordable Injury Frequency Rate ('TRIFR') of 0.42 (Q4 2020 at 0.82), which is industry leading (based on ICMM industry data)
Net cash (inc. gold inventory value): US$4.9 million (Q4 2020: US$1.5 million) with US$8.6 million debt repaid during the quarter. The remaining outstanding US$4.6 million of debt is expected to be paid during this quarter, moving the Company into a debt free position, in-line with Hummingbird's guidance expectations
Management update: Appointment of Anthony Kocken as Chief Operating Officer ('COO') during the quarter. Anthony has over 23 years operational and senior management expertise, predominately working on African projects. Anthony's initial focus will be to support the site in driving operational performance improvements at Yanfolila and oversee the Kouroussa, Guinea project development
Yanfolila exploration update: The Company delivered an internal Mineral Resource Estimate ('MRE') update for the Yanfolila mine in Q1 2021, followed by significant drilling results at the Sanioumale East ('SE') and Komana East ('KE') deposits. Both releases highlighted upside life of mine ('LOM') potential at Yanfolila
Kouroussa, Guinea: Received preliminary Front End Engineering Design ('FEED'), infrastructure layout and capex estimates during the quarter, which are now being reviewed and optimised before they can be finalised whilst the Company awaits the award of the mining licences from the Guinea Government, which are expected to be issued shortly
Dugbe, Liberia: Earn-in partner, Pasofino Gold Ltd ('Pasofino'), made material progress in delivering a definitive feasibility study ('DFS'), releasing successful exploration drilling results for the Dugbe F deposit and completing on key infrastructure plans
ESG: Strict protocols around Covid-19 remain firmly in place and which have been successful in mitigating and capturing virus spread. Progress in terms of water infrastructure improvements at locally supported villages and continued progress with the Company's health and safety metrics are key highlights for the quarter
Dan Betts, CEO of Hummingbird, commented: 'Although Q1 was a slow quarter in terms of production, this is in-line with forecast projections that the 2021 production profile would be weighted to the second half of the year. We expect production numbers to improve during Q2. Also, we expect our AISC profile to improve from current levels, in line with improving production levels.
'Our balance sheet continued to strengthen during the quarter. Our net cash position improved, with the last remaining Company debt of US$4.6 million forecast to be paid this quarter, taking the Company into a debt free position, as we forecast over 12 months ago, being a noteworthy achievement.
'During the quarter, we significantly strengthened our senior management team with the important strategic hire of a COO, Anthony Kocken. I would like to welcome Anthony to the team and look forward to his valuable input as he utilises his extensive operational and African expertise to help drive both operational improvements at Yanfolila and progress at Kouroussa. Also, we welcome Luke Main, another important hire as our Group People and Performance Officer during the quarter.
'At Kouroussa, our development project in Guinea, we have made good progress on the FEED, project layout and capex studies and are currently reviewing and finalising these details while we await the awarding of the mining licences from the Government. In relation to security in the region we are mindful of recent unrest and are closely monitoring the situation; we remain in close contact with the government and do not believe the environment currently poses any material risk to our project timelines and development plans.
'Also, at the Dugbe Gold Project in Liberia, our earn-in partners, Pasofino, made significant progress towards delivering a DFS and we look forward to their continued progress.
'Finally, we saw our ESG initiatives progressing, in particular around important water infrastructure improvements at several locally supported villages. Further, our impressive health and safety track record continued which are achievements we are proud of.'
Contact:
Tel: +44 (0) 20 7409 6660
Notes to Editors
Hummingbird Resources (AIM: HUM) is a leading multi-asset, multi-jurisdiction gold production, development and exploration company and member of the World Gold Council ('WGC'). Hummingbird's vision is to continue to grow its asset base, producing highly profitable ounces, while continuing to focus on its Environmental, Social & Governance ('ESG') policies and practices. The Company currently has two core gold projects, the producing Yanfolila Gold Mine in Mali, and the Kouroussa gold development project in Guinea. Further, the Company has a controlling interest in the Dugbe Gold Project in Liberia that is being developed by Pasofino Gold Limited through an earn-in agreement.
HUMMINGBIRD RESOURCES PLC 
