Amid a challenging period for Aim-listed Hummingbird Resources and its stakeholders in the face of operational and market headwinds, CEO Dan Betts says the company has made significant strides in positioning it for a stronger future.

Hummingbird has recorded revenue of $62.8-million at the Yanfolila gold mine, in Mali, for the six months ended June 30, compared with revenue of $98.6-million in the six months ended June 2023.

The mine sold 30 687 oz of gold at an average price of $2 048/oz during the six months under review.

An additional $2.3-million of revenue was generated from the sale of single mine origin gold.

The group reported an adjusted loss before interest, taxes, depreciation and amortisation of $8.9-million for the period, compared with earnings before interest, taxes, depreciation and amortisation of $33.1-million for the prior comparable period, primarily owing to reduced production from Yanfolila in the second quarter.

The pre-tax loss for the period was $29.6-million, compared with a profit of $4.1-million in the prior comparable period.

At the end of period, the company held a net bank debt position of $153.5-million.

During the period, Yanfolila produced 29 064 oz at an all-in sustaining cost of $2 015/oz, driven by lower grade through-put and increased waste stripping in preparation for operations in the second half of this year.

The Kouroussa gold mine, in Guinea, produced 13 657 oz of gold in the period as ramp-up of operations faced challenges through the period.

Following the restart of mining by the mining contractor, Hummingbird says volumes progressively increased with the mining of high-grade fresh material mining beginning late in the second quarter this year.

Betts says the company’s focus on advancing key projects, particularly the ramp-up at Kouroussa and the implementation of strategic initiatives at Yanfolila, is laying the groundwork for improved performance in the second half of the year and beyond.

In August, Hummingbird secured a refinancing package of $25-million with its principal lender, Coris Bank International.

Hummingbird says this financing covers existing obligations and is repayable over two years with a one-year payment and interest deferral, offering the company financial flexibility during this crucial phase of ramp-up at the Kouroussa.

Meanwhile, Hummingbird’s 53%-owned subsidiary, Pasofino Gold, has made considerable progress in its strategic review of the Dugbe gold project in Liberia.

Pasofino received two nonbinding expressions of interest from third parties in late August.

On September 16, Pasofino entered into an exclusivity agreement with a potential buyer to acquire the company for $75-million.

“Securing the $25-million refinancing with Coris was another crucial step, providing the flexibility needed as we progress towards our goal of becoming a 200 000 oz/y producer. Looking ahead, our priority remains on delivering profitable production and value for our shareholders,” says Betts.

With Kouroussa nearing commercial production and the ongoing optimisation programme at Yanfolila, he says the company is confident in delivering improved production in the last quarter of the year.

Additionally, the company continues to progress its environmental, social and governance initiatives.

“With gold prices remaining robust, we are highly optimistic about the future and believe Hummingbird is well-positioned to capitalise on the vast opportunities that lie ahead. We will continue to keep our stakeholders informed and provide further updates in due course,” says Betts.