Hummingbird Resources PLC (LSE:HUM) slumped by a fifth as it reported a loss even with gold prices close to their all-time high.
The gold miner said its Yanfolila mine produced 12,065 oz of gold in its second quarter but at a very expensive US$2,598 per oz.
Performance was impacted by poor availability and utilisation of the mining fleet, Hummingbird said, and the subsequent need to alter the mining sequencing, increasing waste stripping, particularly at the Gonka pit.
Hummingbird’s other mine at Kouroussa also saw ramping up problems compounded by nearly two months of lost production.
Production is expected to improve over the second half of the year but due to the first half issues, Hummingbird is now in the advanced stages of finalising a refinancing of a portion of our debt with Coris to provide additional financial flexibility.
Underlying losses for the second quarter were $13.5 million, driven by low production with anet bank debt of approximately $153.5 million.
Shares dropped 21% to 6.75p.