Hummingbird Resources (AIM:HUM) has reported “another solid quarter” despite the challenging operating environment as a result of the global COVID-19 pandemic.
The AIM-listed miner and operator of the Yanfolila Gold Mine in Mali said that it had met its production targets for the first quarter of 2020.
The first drill holes intersected mineralisation leaving the group “optimistic” that it should be able to add economically viable resources, and thus mine life, to its mine plan.
“This represents a significant next step in unlocking the potential underneath the Komana East pit,” said Dan Betts, CEO of Hummingbird.
Overall, Hummingbird poured 30,282 ozs of gold in Q1, up from 33,892 ozs in Q4 2019, with all-in sustaining costs of US$875 per oz down from US$839/oz in Q4.
The group reported that it has sold 24,575 ozs of gold in the period so far at an average price of US$1,568 per oz.
Shares in Hummingbird Resources were trading 2.49% higher at 26.75p this morning.
The company sees its exploration program as ‘well established’ with over 1,200m of drilling completed so far with the group maintaining its production guidance of 110,000 - 125,000 ozs.
Meanwhile, the group noted that there had so far been no material impact to production as a result of Covid-19 but that cost pressures were “inevitable.”
As a result, the company says it remains committed to exploring potential upside opportunities at Yanfolila whilst strengthening its overall balance sheet.
As at 31 March 2020, Hummingbird recorded US$8m of cash and a combined $25m in liquid assets of cash and gold with US$34m bank debt down from US$40m at end of Q4 2019.
The group added that it continues to support local communities with donations to the Government of Mali's Covid-19 fund and that it maintains an overdraft facility from Coris Bank of around US$10m to assist with any short-term liquidity challenges it may face.
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