"In this update we have materially extended Kouroussa's reserves profile to 647,000oz at 4.15g/t and added reserves net of depletions at Yanfolila to total 719,000oz, including extending the underground reserves profile of Yanfolila to 278,000oz at 3.94g/t," Hummingbird's CEO Dan Betts said.
The Kouroussa reserves were up by 58% from the previous update and at Yanfolila they moved 2% higher.
"Further, at Dugbe via our earn in partners Pasofino, final feasibility study results were recently announced, establishing a material maiden reserves profile for the project of 2.76 million oz in which we will retain a controlling 51% interest," Betts said.
Canaccord Genuity Capital Markets analyst Sam Catalano said the most positive outcome from the update is the increase in reserves at Kouroussa, which extends mine life to roughly seven years.
Hummingbird's share price came under pressure last year as output fell at Yanfolila in the second half due to problems with the company's contractor-operated mining fleet, which slowed the pace of excavation.
The company was also forced to halt operations briefly due to political unrest in Q4.
Hummingbird began 2021 with a share price of about GBX32.50 and finished the year at around GBX14.50. The stock closed trading on June 30 at GBX10.13.
"If market trust can be regained through improvement at Yanfolila, we see significant upside potential in what could be a multi-asset, 200,000oz+ per annum producer with reserves >seven years," Catalano said.
Hummingbird is expecting 2022 production of 87,000-97,000 oz of gold, with an AISC of US$1,300-1,450 per oz of gold, which compares to 2021 production of 87,558oz. At the beginning of 2021, Hummingbird's guidance for that year was set at 100,000-110,000oz of gold.