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Resolute Mining Limited

Resolute Mining beats gold production guidance target

The company produces gold from its Syama gold mine in Mali and its Ravenswood gold mine in Queensland.

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Cash, bullion and listed investments as at 30 June 2019 totaled A$56 million

Resolute Mining Ltd (ASX:RSG) produced 305,436 ounces of gold at an all-in sustaining cost (AISC) of US$924 per ounce in the past 12 months, beating its guidance of 300,000 ounces at US$960 per ounce.

As the company continues to ramp-up its Syama Underground Mine, 2019 calendar year guidance has been upgraded to 330,000 ounces of gold at an AISC of US$990 per ounce.

In the June quarter alone, Resolute produced 78,132 ounces of gold at an AISC of US$939 per ounce.

With the average sale price of gold in the June quarter at US$1,274 per ounce or A$1,815 per ounce, Resolute’s gold mining operations have a very healthy profit margin.

READ: Resolute Mining’s Ravenswood Expansion Project gets bigger with gold reserves up 58%

Resolute’s managing director John Welborn said: “Exceeding production guidance and outperforming cost guidance for the year to 30 June is an exceptional result during a period of significant development in our business.

“We have generated strong positive operational cash flows while investing in growth. With the achievement of commercial production rates at the new Syama Underground Mine we have now turned the corner and expect to see increased production at lower costs in line with our development expectations.”

Syama to be powerhouse for Resolute

Welborn added: “In the June quarter we made significant progress with the commissioning of our Syama Underground Mine with the achievement of sustained rates of commercial production.

This is an important project for Syama, for Resolute, and for the mining industry. We are now focused on continuing the successful production ramp up to nameplate capacity and the completion of automating all aspects of the sublevel cave during 2019.

“Syama is one step closer to becoming the robust, high production, low cost gold complex we have envisaged.

“Syama will be a powerhouse of gold production for Resolute for many years to come and generate significant returns for Resolute shareholders, local communities, suppliers and the Mali Government.”

Quick facts: Resolute Mining Limited

Price: $1.65

Market: ASX
Market Cap: $1.49 billion
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