Hummingbird Resources PLC said it has suspended operations at its Yanfolila mine in Mali on safety concerns due to unrest and illegal road blocks in the region, causing shares in the AIM-traded gold producer to drop as much as 20%.
The company warned that its full-year production will fall below the bottom end of the 2021 guidance range. Hummingbird had expected to produce 100,000 to 110,000 ounces of gold from Yanfolila, its only producing mine, this year.
It said it was difficult to evaluate the full impact of the disruption and will provide more details as soon as there is more clarity. It will make a full assessment of plant and equipment once conditions allow.
"The safety of everybody at site is our highest priority and whilst this situation is a disappointment for all concerned, I would like to stress my gratitude for the calm and professional manner in which our team is working through the situation,” said chief executive Dan Betts.
“The Government of Mali is aware of the situation and is actively engaged in resolving these distruptions and we anticipate the situation will be short lived.”
Hummingbird said the current illegal action is from a small minority and not representative of the communities where the company operates.
Shares in the company were down 14% at 14.25 pence in early trading, after falling as low as 13.25 pence earlier.