(Kitco News) - Hummingbird Resources (AIM: HUM) announced yesterday that in Q2 2022, its gold production increased 29% to 20,013oz from Q1 2022, with improved mining rates (+26%), processing plant throughput (+20%) and mill feed grade (+9%) achieved during the quarter.
Importantly, the company said that its all-in sustaining cost ("AISC") reduced by 17% from Q1 2022 to US$1,859 per oz (Q1 2022: US$2,235 per oz) primarily due to improved quarterly production.
The company added that inflationary pressures are being felt, especially from fuel and consumables, in common with the global mining industry. However, the company expects a continual improvement in the AISC profile from current levels for the remainder of the year
Hummingbird also noted that during the quarter, construction at its Kouroussa gold project in Guinea advanced into the important civil works phase, adding that the project remains on time and on budget to meet the scheduled first gold pour by the end of Q2 2023.
The company said it maintains its 2022 guidance of 87,000 - 97,000 oz of gold, forecasting improved H2 production versus H1 2022 levels, in line with its start of year guidance expectations and current mine plan.
Due to ongoing inflationary cost pressures, especially from fuel and consumables, the full year AISC guidance of US$1,300 - US$1,450 per oz will be re-assessed at the end of Q3 and a further update provided at that time, the company added.
Hummingbird Resources 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 the company’s current gold production when commissioned, which is scheduled for Q2 2023.
Further, the company has a controlling interest in the Dugbe gold project in Liberia that is being developed by Pasofino Gold Limited through an earn-in agreement.
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