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Africa-focused gold miner Hummingbird reports lower 2022 production, achieves revised guidance

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(Kitco News) - Africa-focused gold miner Hummingbird Resources (AIM: HUM) today announced strong Q4 2022 gold production of 28,264 oz, up 67% from Q3 2022, while full year 2022 production of 80,635 oz was down 8% compared to 2021 (87,558 oz) and within the revised guidance.

The company's full year 2022 all-in sustaining costs (AISC) were US$1,782 per oz, up 16% from 2021 (US$1,536 per oz) and within the revised guidance.

In a press release, Hummingbird said that in order to stabilize production at the Yanfolila gold mine in Mali, the company intervened with its contract miner in securing additional key equipment to site, including grade control and production rigs, coupled with onsite leadership changes.

"These measures have been broadly successful, with the company being able to better achieve its mine plan schedule, move into the higher-grade Komana East deposit, resulting in a strong production quarter, with a similar quarter-on quarter production profile expected for this quarter, Q1 2023," the company said.

Hummingbird also announced FY2023 production guidance for Yanfolila of 80,000 - 90,000 oz, with full year AISC of under US$1,500 per oz.

Importantly, the company said that once its Kouroussa gold mine in Guinea is in production and ramping up, it will provide a more detailed Group wide guidance update for the full year.

"Expectations are that once Kouroussa is fully operational, the mine will add a material uplift to the Group's production profile for FY2023 and beyond," it said.

Hummingbird currently has two core gold projects, the operational Yanfolila gold mine in Mali, and the Kouroussa gold mine in Guinea, which will more than double current gold production when production, scheduled for first gold pour end of Q2 2023.

Further, the company has a controlling interest in the Dugbe gold project in Liberia that is being developed by Pasofino Gold through an earn-in agreement. The final feasibility results on Dugbe showcase 2.76 Moz in reserves and a 3.5-year capex payback period once in production, 14-year life of mine at a low AISC profile of US$1,005/oz.

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