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Hummingbird Resources Shares Plunge as Yanfolila Mine Goes Offline On Security Concerns

Sam Boughedda trader
Updated 29 Nov 2021

Hummingbird Resources (LON: HUM) shares have declined Monday after it said the Yanfolila Mine is temporarily offline due to security concerns in the region in Mali.

“In recent days there has been unrest and illegal road blocks in the region. This activity has impacted the company's ability to safely continue operations at the mine,” said Hummingbird.

The company's shares are currently down 12.91% at 14.5p.

Hummingbird stated that the situation on-site remains calm and orderly, with all employees and contractors safe.

The AIM-quoted company said it has elevated the disruption to the national Government, which is working through the situation and resolving it, with the company expecting to be in a position to return to normal operations shortly.

The interruption has impacted production, and Hummingbird now believes full-year production will be below the bottom end of the 2021 guidance range.

Dan Betts, CEO of Hummingbird, commented: “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. 

“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.”

Should you invest in Hummingbird Resources shares?

Hummingbird Resources shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are HUM shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.