By Shares in Hummingbird Resources have experienced a significant drop of 14% as the company issued a warning that it may have to divest assets in order to meet its production targets, reduce costs, or acquire additional funding. As of 0835 GMT, the company’s shares have declined by 1.25 pence, reaching a total of 9.75 pence.
Positive Financial Results and Increased Revenue
Despite the company’s challenges, it has reported encouraging financial results. Hummingbird Resources, an Africa-focused gold miner, revealed a notable swing from a pretax loss of $24.0 million in the first half of 2022 to a pretax profit of $4.1 million during the same period in the current year.
Furthermore, the company’s revenue has also experienced growth. Revenue escalated from $70.4 million in the previous year to $103.2 million this year. This increase can be attributed to a 43% rise in gold production, totaling 51,149 ounces. Consequently, the company witnessed a 49% surge in gold sales, amounting to $98.6 million during this period, with an average price per ounce that was 4% higher.
Focus on Operational Stability
Hummingbird Resources reassured investors that its Yanfolila gold mine in Mali is well-positioned to achieve its full-year production target of 80,000 to 90,000 ounces. The company aims to achieve this while maintaining an all-in sustaining cost below $1,500 per ounce.
Additionally, the company plans to enhance the size and regularity of gold pours and shipments at its Kouroussa mine in Guinea throughout the final quarter of the year.
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