By:Energycapitalpower

Operational update

Group Production

·         In Q3-2024, the Group produced a total of 26,376 ounces (“oz”) of gold, with 69,097 oz produced year-to-date.

Yanfolila Mine, Mali (“Yanfolila”)

·         Q3-2024 production of 13,992 oz at an All-In Sustaining Cost (“AISC”) of US$2,352 per oz, and 13,717 oz of gold sold at an average price of US$2,216 per oz.

·         Yanfolila faced some operational challenges during the quarter, but the delivery of several initiatives to improve fleet availability, utilisation, and sequencing have helped stabilise production.

Kouroussa Mine, Guinea (“Kouroussa”)

·         Q3-2024 production of 12,389 oz (up from 7,789 oz in Q2-2024), with 26,041 oz produced in the nine months to the end of September 2024, as the mine continued to progress towards commercial production. The Company continues to focus on increasing mining volumes as well as mining higher-grade material, both of which will drive operational improvements.

·         The mine’s current focus is on increasing mining volumes in line with forecasts, together with ongoing operational improvements aimed at optimising the utilisation of the mining fleet. Efficient waste movement remains critical to achieving the mine plan. Should mining volumes and fleet utilisation increase as expected, Hummingbird aims to achieve a commercial production rate of c.2,000-2,500 oz per week this quarter.

·         The post-quarter end period has seen continued progress, with the mine producing 2,693 oz this past week across several pours, reinforcing confidence in reaching commercial production this quarter.

Financial Overview:

·         The Group recorded an adjusted EBITDA loss of approximately US$3.83 million for Q3-2024, marking an improvement from the US$16 million loss in Q2-2024. This recovery can be attributed to higher gold sales and price, increased production at Kouroussa and enhanced operational efficiencies at Yanfolila.

·         At Kouroussa, year-to-date revenue totals US$55.4 million on an average gold sale price of US$2,143 per oz. The Group will provide AISC for Kouroussa once the mine achieves commercial production.

·         As of the end of Q3-2024, the Group reported a net debt position of approximately US$154.2 million. At the period end:

o    Hummingbird's net bank debt stood at approximately US$135 million with Coris, of which around US$90 million is secured against the Company’s assets. Additionally, the Company holds approximately US$20 million in unsecured debt with CIG, which is scheduled to mature on 31 December 2024, as announced on 27 September 2024.

o    Cash position was approximately US$3.9 million drawn of the Company’s existing overdraft facility of c.US$11.6 million.

o    The value of gold inventory was approximately US$4.3 million at the end of the quarter.

·         With the continued operational and liquidity challenges, the Group's trade and other payables increased from the end of Q2-2024 (US$134 million) to US$152 million as at the end of the quarter.

Corporate Update

·         The Group reported a Lost Time Injury Frequency Rate (“LTIFR”) of 0.43 per million hours worked, a testament to Hummingbird's unwavering commitment to safety across its operations.

·         The Company is today providing a separate update on ongoing discussions with its primary lenders, Coris Bank International ("Coris") and Coris Invest Group SA, and the Company's largest shareholder Nioko Resources Corporation ("Nioko", a wholly owned subsidiary of CIG, and together with Coris and CIG, the “Coris Parties”), in relation to its liquidity position, a proposed debt restructuring, partial debt to equity conversion and a possible offer for all of the shares in the Company which are not owned by Nioko.

FY-2024 Outlook

In the face of continued operational challenges, despite ongoing improvements at both the Yanfolila and Kouroussa mines, the Company updates its guidance to for FY-2024 to 100,000–115,000 ounces (“oz”) at an AISC of c.US$2,100 per oz.

·         Yanfolila: Anticipated production of 55,000–65,000 ounces at an AISC below US$2,100 per oz.

·         Kouroussa: Expected production of 45,000–50,000 ounces at an AISC, once in commercial production of below US$1,400 per oz.

Dan Betts, CEO of Hummingbird, commented:

"While Q3-2024 has delivered some production growth with a Group output of 26,376 oz, reaching 69,097 oz year-to-date, this quarter has seen continued operational challenges. At Yanfolila, we saw some improvements in fleet availability, utilisation and mining sequencing, which have helped stabilise production. At our Kouroussa operation, we're making progress, with operational improvements and increased mining volumes bringing us closer to commercial production.”