KEY POINTS
- Hummingbird Resources is conducting a groupwide strategic review for operational efficiency.
- A chief transformation officer and new mining leader will focus on improving the Kouroussa mine.
- The company secured a $20 million loan to support restructuring and growth.
Hummingbird Resources has initiated a comprehensive groupwide review to assess the capacity of its current platform to support sustainable production growth and value creation across its portfolio of assets in West Africa.
As part of the review, the company will engage an industry expert to conduct an independent assessment of Hummingbird’s management structure and operational performance.
The scope of the work aims to restructure the business to maximize operational performance and efficiency across the group. This includes corporate restructuring initiatives focused on cost savings, improved governance, and enhanced accountability.
According to a report by Mining Weekly, Hummingbird will appoint a chief transformation officer to lead the restructuring, while CEO Dan Betts will assume the role of executive chair to oversee the strategic review and guide the company’s long-term development.
Mining recruitment company Lincoln Strategic has been appointed to search for a new permanent CEO to lead the next phase of Hummingbird’s growth.
Additionally, Hummingbird will appoint a mining professional to oversee the transformation at the Kouroussa mine in Guinea as it ramps up production. Nioko Resources Corp. Director Oumar Toguyeni will also join the Hummingbird board as a nonexecutive director.
The company may consider divesting from noncore assets as part of the restructuring.
Operational challenges and financial support
In the meantime, production ramp-up continues at Kouroussa, though at lower-than-expected mining volumes due to delayed pit staging and optimization of the processing plant.
These challenges have delayed the mine’s achievement of commercial production. However, Hummingbird expects more consistent mining performance and increased production rates in the fourth quarter, aiming for an annual output of 200,000 ounces of gold.
“As we continue to navigate the challenges at Kouroussa, we are committed to taking decisive actions to strengthen Hummingbird’s operational foundation and unlock its full potential as a multi-asset, multi-jurisdictional gold producer,” Betts said.
“The groupwide review is an important step toward optimizing our production capabilities and enhancing shareholder value.”
To help reach full operational capacity in the coming quarters and strengthen its balance sheet, Hummingbird has secured a new $20 million loan facility from its largest shareholder, CIG. The loan will be provided in tranches.
