(Ecofin Agency) - Kouroussa should have started commercial production in Q1 2024 but the gold mine faced delays, due to operational and financial difficulties affecting its owner, Hummingbird Resources. While the company has resolved some operational challenges, it still has significant financial hurdles.

Guinea’s Kouroussa gold mine has officially commenced commercial production, several months behind schedule. Hummingbird Resources, the mine’s owner, announced the launch on November 25. The firm said it is now shifting its focus toward optimizing mining operations, particularly the mill’s throughput. 

On average, the mine has delivered around 1,900 ounces per week over the past four weeks, allowing the British company to operate its equipment “consistently.” However, this output still falls short of the previously set target of 2,000 to 2,500 ounces per week. Kouroussa boasts an annual production capacity of 100,000 ounces over an initial lifespan of six years. Due to various operational issues, the Kouroussa gold mine in Guinea is expected to produce only 45,000 to 50,000 ounces of gold in 2024. 

This morning, the Company provided a short update on the progress of the subscription agreement with the Coris Parties. The Company expects to provide a further update in the coming days.

Read the full release: https://t.co/iOVxINNcEV pic.twitter.com/HdGgNh8iI9

— Hummingbird Resources plc (@HUM_gold) November 20, 2024

Besides its operational issues, Hummingbird Resources also faces significant financial difficulties characterized by liquidity issues and upcoming payments to the Malian government related to its operations at the Yanfolila gold mine. In recent months, the Malian government has initiated efforts to renegotiate mining contracts and recover an estimated shortfall of CFA300 to CFA600 billion from gold producers. Hummingbird expects to reach an agreement with local authorities shortly. 

Hummingbird could be delisted from the London Stock Exchange while resolving these operational and financial issues. The company’s largest shareholder, Nioko Resources controlled by Burkinabe businessman Idrissa Nassa has offered to acquire all shares not already owned, and transitioning Hummingbird into an unlisted company. Negotiations are underway and will require regulatory approvals and the agreement of remaining shareholders.

Emiliano Tossou