Hummingbird Resources Reveals Promising 2019 Gold Production
, the African focused gold producer, released an operational update and a 2019 production guidance for its Yanfolio gold mine in Mali.
The company expects production 2018 to be between 87,000 and 92,000 oz after a significantly heavier wet season flooded the only bridge into the site and caused damage to the western wall of a pit.
Remediation work is to be done during production and a Malian Military barge has been mobilised to guarantee site access, while the Malian Government builds a new bridge upstream.
Most of these remediation costs will be incurred during Q4 2018, with some expected in Q1 2019.
2019 full year production is expected to be between 110,000 oz and 125,000 oz of gold, with all-in sustaining costs (ASIC) expected to be c.$800.
Going on the company’s conservative estimates, with current gold price levels sitting at $1225/oz, it would result in $47.75 million in post ASIC cash flows for the company. If production levels reach the higher estimates, the company could be set to generate over $53 million in post ASIC cash flows.
Yearly cash flows that almost reach the £62m market cap of the firm are a good sign. Given analysts JP Morgan Commodities Research expect prices to remain robust and have a bullish view for gold prices in 2019, the outlook for Hummingbird looks promising.
Dan Betts, Hummingbird Resources CEO commented: "We believe we have a strong remediation plan to rectify the issues we have faced at Yanfolila and look forward to meeting our revised guidance."
He added: "I would like to thank everyone at Hummingbird who has worked tirelessly through this period and to our investors and other stakeholders who have shown patience and support as we have worked through these complex issues."
Shares in Hummingbird Resources were trading at 17.75p each
The Yanfolila gold mine in Mali holds total resources of 1.8m oz gold, an additional 390,700oz of non-compliant exploration potential.
The company also holds The Dugbe Gold Project in Liberia with resources totalling 4.2oz gold, and a 34% interest in AIM listed Cora Gold (CORA), developing a portfolio of prospects in Mali and Senegal.
Follow News & Updates from HUM here:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.