HUMMINGBIRD Resources is predicting a strong recovery in the second half of its financial year to end-December after losing $13.5m in the second quarter to end-June but the production losses have put heavy pressure on the group’s balance sheet and liquidity.
As of end-June Hummingbird was sitting with gross bank debt of $153.9m against which it credited cash at bank of $0.4m and gold inventory value of about $3.4m.
Group output was hit by the strike at Kouroussa called by mining contractor Corica which cost two months of production while the Yanfolila mine also reported lower production because of a “shift in mine sequencing as part of the long-term mine plan.”
Hummingbird CEO Dan Betts commented, “it’s crucial to understand that these issues are now behind us” but admitted, “the delays have undoubtedly placed significant pressure on our balance sheet and liquidity and I am deeply grateful for the continued support of our partners.”
Betts added, “we are in advanced stages of finalising the refinancing of a portion of our debt with Coris to provide us additional financial flexibility. We have also explored several non-equity financing options to strengthen the balance sheet without diluting shareholder value, ensuring additional resilience if needed.
“With gold prices high and production increasing at Kouroussa, Hummingbird is positioned to rapidly deleverage the balance sheet in the coming quarters.”
