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Resolute Mining reinvesting golden cash into mine life

Published: 08:44 25 Feb 2019 AEDT

pen on paper that says financial results
The financial results for the December half have been released

Resolute Mining Ltd (ASX:RSG) has revealed revenue from gold and silver sales of $223 million in the December half of 2018, up 10% on the prior December half.

Gold production totalled 129,199 ounces at an all-in sustaining cost (AISC) of $1,449 per ounce, which supported gross profit from operations of $24 million for the half.

Net investing cash flows for the period were $181 million as Resolute continues to invest in its future.

This includes progressing the completion of the Syama Underground Mine in Mali, continued investments in the Ravenswood Expansion Project in Queensland, and preparing for the re-commissioning of the Bibiani Gold Mine in Ghana.

READ: Resolute Mining locks in more forward gold sales at high gold prices

Resolute’s managing director and CEO John Welborn said: “The successful commencement of sublevel caving at Syama on time and on budget in December 2018 was the highlight of the period and represents a pivotal moment in the long history of the Company.

“Syama is a world class, long life, low cost asset that will deliver long term benefits to our shareholders, stakeholders, and local Mali communities for years to come.

“We are now focused on the implementation of our fully automated mining system and delivering our full production rate of 2.4 million tonnes per annum by June 2019.

Plan to list on the LSE this half

“We intend to list the company on the London Stock Exchange in the first half of 2019.

“This process has allowed the company to synchronise our reporting period with our African subsidiary companies’ accounts, from a 30 June year end to a 31 December year end.

“As a result the current reporting period is a six month transitional financial period beginning on 1 July 2018 and ending on 31 December 2018.

“This transitional six month reporting period represents a genuinely transitional period for Resolute.

READ: Resolute Mining maintains gold reserves and resources across broad portfolio

“Resolute has a strong balance sheet and exceptional growth prospects. During the six month period, we have continued to invest in future growth.

“We continue to generate strong operating cash flows and expect to continue as a profitable dividend paying gold miner.

“Today’s results are in line with our expectations as we successfully navigate a challenging short-term period of declining stockpile grades at Syama and lower production from Mt Wright at Ravenswood.

“I remain highly confident in Resolute’s value as we ramp-up the Syama Underground to full production, increase our profile in global capital markets through listing on the London Stock Exchange, and deliver on our growth agenda."

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