By: Mining weekly

As part of the process, the company is formalizing the engagement with an industry expert to conduct an independent review of the company’s management structures and operational performance.

The scope of work is aimed at restructuring the business to maximize operational performance and efficiencies across the group.

The review will also include corporate restructuring initiatives aimed at cost efficiencies, improved governance and enhanced accountability, ensuring overall improved performance.

Hummingbird will appoint a chief transformation officer to lead assessments related to the company’s restructuring, while CEO Dan Betts will serve as executive chairperson to oversee the strategic review and guide the long-term development of the company.

Mining recruitment company Lincoln Strategic has been appointed to search for a new permanent CEO to deliver on the next chapter of Hummingbird’s evolution.

Moreover, the company will appoint a mining professional to lead the transformative process specifically at the Kouroussa mine, in Guinea, as it ramps up production, as well as appoint Nioko Resources Corporation director Oumar Toguyeni as a nonexecutive director to the Hummingbird board.

The company may consider divesting from noncore assets as part of the restructuring process.

Meanwhile, ramp-up continues at Kouroussa albeit at lower-than-expected mining volumes, with delayed pit staging and processing plant optimisation having impacted on the mine achieving commercial production.

The company expects a more consistent ramp-up of mining performance and increased production rates in the final quarter of the year. Hummingbird ultimately aims for the Kouroussa mine to produce 200 000 oz/y 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.

“The group wide review is an important step towards optimizing our production capabilities and enhancing shareholder value,” Betts says.

Further, to help with the group reaching its full operational capacity in coming quarters and strengthen its balance sheet, Hummingbird has secured a new loan facility of $20-million, which will be provided in tranches, from its largest shareholder CIG.