REG - Hummingbird Res. - Commercial Production Reached at Kouroussa

Hummingbird ResourcesAnnouncement

25/11/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241125:nRSY4837Na&default-theme=true

RNS Number : 4837N  Hummingbird Resources PLC  25 November 2024

Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

 

25 November 2024

Hummingbird Resources plc

("Hummingbird", the "Group" or the "Company")

Commercial Production at Kouroussa Gold Mine

Hummingbird Resources plc (AIM: HUM) is pleased to announce that the Kouroussa
Gold Mine in Guinea ("Kouroussa") has reached commercial production. The
operation's four-week trailing average production has increased to
approximately 1,900 ounces ("oz"), with an average selling price during that
period of US$2,473 per oz,  , which is below the spot gold price as a result
of the Company's existing hedging contracts, which are expected to expire at
the end of Q1-2025.

This four-week trailing average production figure is below the previously
announced target of approximately 2,000-2,500 oz per week primarily due to a
lower-than-expected mill feed grade, resulting from a shortage of high-grade
ex-pit ore caused by ongoing mining capacity constraints. However, during this
period, all major equipment has proven capable of operating at or above design
levels on a consistent basis, demonstrating Kouroussa's ability to sustain
commercial operations.

With commercial production now achieved, Hummingbird remains focused on
improving mining operations performance, plant throughput and feed-grade to
reach steady-state production in the coming months. This effort is being
augmented by the engagement in the short-term of several specialist external
consultants as part of the previously announced financial and operational
review, which is being led by Geoff Eyre, the Company's interim CEO.

At full capacity, Kouroussa is projected to produce approximately an average
of 100,000 oz per annum over the mine's initial six-year life.

Kouroussa Outlook and Financial Position

As previously announced, following the achievement of commercial production at
Kouroussa, the Company is providing updated production guidance. For the year
ending 31 December 2024, Kouroussa is expected to produce between
45,000-50,000 oz of gold and the All-In Sustaining Costs ("AISC") for the
remainder of the year is expected to be below US$1,500 per oz.

The Company acknowledges that, despite achieving commercial production at
Kouroussa, the Group as a whole is not expected to generate sufficient
near-term cashflows to significantly ease its current liquidity challenges,
which are exacerbated by the current loss-making operations at Yanfolila and
anticipated near term payments in connection with the ongoing negotiations
with the Government of Mali. The Group remains focused on closely monitoring
liquidity across the Group and strategically allocating resources to support
Kouroussa's ramp-up and maximise operational output.

Hummingbird also recognises that broader financial constraints may impact
near-term operating performance, production consistency, and the timeline for
achieving steady-state production. The Company is working constructively with
the Coris Parties to address the previously announced liquidity challenges,
strengthen its financial position, and establish greater stability.

**ENDS**

Notes to Editors:

Hummingbird Resources plc (AIM: HUM) is a leading multi-asset,
multi-jurisdiction gold producing Company, member of the World Gold Council
and founding member of Single Mine Origin (www.singlemineorigin.com
(http://www.singlemineorigin.com) ). The Company currently has two core gold
projects, the operational Yanfolila Gold Mine in Mali, and the Kouroussa Gold
Mine in Guinea, which will more than double current gold production once at
commercial production. Further, the Company has a controlling interest in the
Dugbe Gold Project in Liberia that is being developed by joint venture
partners, Pasofino Gold Limited. The final feasibility results on Dugbe
showcase 2.76Moz in Reserves and strong economics such as a 3.5-year capex
payback period once in production, and a 14-year life of mine at a low AISC
profile. Our vision is to continue to grow our asset base, producing
profitable ounces, while central to all we do being our Environmental, Social
& Governance ("ESG") policies and practices.

For further information, please visit hummingbirdresources.co.uk
(https://www.hummingbirdresources.co.uk/)  or contact:

 

 

 Geoff Eyre, Interim CEO  Hummingbird Resources plc  Tel: +44 (0) 20 7409 6660

 Thomas Hill, FD

 Edward Montgomery, CD
 James Spinney            Strand Hanson Limited      Tel: +44 (0) 20 7409 3494

 Ritchie Balmer           Nominated Adviser
 James Asensio            Canaccord Genuity Limited  Tel: +44 (0) 20 7523 8000

 Charlie Hammond          Broker
 Bobby Morse              Buchanan                   Tel:  +44 (0) 20 7466 5000

 Oonagh Reidy             Financial PR/IR            Email: HUM@buchanan.uk.com (mailto:HUM@buchanan.uk.com)

 George Pope

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCPPGQGGUPCGBC