By Christian Moess Laursen
Hummingbird Resources on Thursday reported a swing to pretax profit on higher production and gold sales.
The Africa-focused gold miner made a pretax profit of $4.1 million in the first half of the year from a loss of $24.0 million in the same period in 2022.
Likewise, revenue rose to $103.2 million from $70.4 million a year prior, driven by 43% higher gold production of 51,149 ounces, leading to gold sales rising 49% to $98.6 million during the period at a 4% higher average price per ounce.
The company said its Yanfolila gold mine in Mali remains well-positioned to meet full-year production guidance of 80,000 to 90,000 ounces at an all-in sustaining cost below $1,500 per ounce.
At its Kouroussa mine in Guinea, the company plans to increase the size and regularity of its gold pours and shipments through the fourth quarter.
The company said that it has adequate resources to continue operating for the foreseeable future. However, it added that the risk of lower than expected production levels, timing of VAT offsets and receipts and the ability to secure any potential required funding could cast doubt over its ability to continue as a going concern.
“Should the group be unable to achieve the required levels of production and associated cashflows, defer expenditures or obtain additional funding such that the going concern basis of preparation was no longer appropriate, adjustment would be required including the reduction of balance sheet asset values to their recoverable amounts and to provide for future liabilities should they arise,” it said Thursday.
The company subsequently confirmed Friday that there are no plans to divest any assets at this time, nor any requirement to do so, and said it is focused on its multi-asset, multi-jurisdiction growth plans.
Write to Christian Moess Laursen at [email protected]
Corrections & Amplifications
This article was corrected on Sept. 29, 2023 because it incorrectly said the company may need to sell assets in the headline and first paragraph. Hummingbird Resources said it doesn’t plan to sell any assets.
Hummingbird Resources said it doesn’t plan to sell any assets. “Hummingbird Resources Shares Fall After Warning of Possible Divestments,” at 0850 GMT on Sept. 28, incorrectly said the company may need to sell assets in the headline and first paragraph. The correct version follows:
By Christian Moess Laursen
Hummingbird Resources on Thursday reported a swing to pretax profit on higher production and gold sales.
The Africa-focused gold miner made a pretax profit of $4.1 million in the first half of the year from a loss of $24.0 million in the same period in 2022.
Likewise, revenue rose to $103.2 million from $70.4 million a year prior, driven by 43% higher gold production of 51,149 ounces, leading to gold sales rising 49% to $98.6 million during the period at a 4% higher average price per ounce.
The company said its Yanfolila gold mine in Mali remains well-positioned to meet full-year production guidance of 80,000 to 90,000 ounces at an all-in sustaining cost below $1,500 per ounce.
At its Kouroussa mine in Guinea, the company plans to increase the size and regularity of its gold pours and shipments through the fourth quarter.
The company said that it has adequate resources to continue operating for the foreseeable future. However, it added that the risk of lower than expected production levels, timing of VAT offsets and receipts and the ability to secure any potential required funding could cast doubt over its ability to continue as a going concern.
“Should the group be unable to achieve the required levels of production and associated cashflows, defer expenditures or obtain additional funding such that the going concern basis of preparation was no longer appropriate, adjustment would be required including the reduction of balance sheet asset values to their recoverable amounts and to provide for future liabilities should they arise,” it said Thursday.
The company subsequently confirmed Friday that there are no plans to divest any assets at this time, nor any requirement to do so, and said it is focused on its multi-asset, multi-jurisdiction growth plans.
Write to Christian Moess Laursen at [email protected]
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