Aim-listed Hummingbird Resources’ Kouroussa gold mine, in Guinea, has reached commercial production.

The company notes that the operation's four-week trailing average production has increased to about 1 900 oz, with an average selling price during that period of $2 473/oz, which is below the spot gold price as a result of its existing hedging contracts, which are expected to expire at the end of the first quarter of 2025.

This four-week trailing average production figure is below the previously announced target of about 2 000 oz to 2 500 oz a week, primarily owing to a lower-than-expected mill feed grade, resulting from a shortage of high-grade ore caused by ongoing mining capacity constraints.

However, the company notes that, 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,” the company says.

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 the company’s interim CEO Geoff Eyre.

At full capacity, Kouroussa is projected to produce an average of about 100 000 oz/y 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 says it is providing an updated production guidance.

For the year ending December 31, Kouroussa is expected to produce between 45 000 oz and 50 000 oz of gold at an all-in sustaining cost (AISC) for the remainder of the year of below $1 500/oz.

“The company acknowledges that, despite achieving commercial production at Kouroussa, the group as a whole is not expected to generate sufficient near-term cash flows 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.”

Hummingbird says 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.

The company also notes that it recognises that broader financial constraints may impact near-term operating performance, production consistency and the timeline for achieving steady-state production.

It adds that it is working constructively with the Coris parties to address the previously announced liquidity challenges, strengthen its financial position and establish greater stability.