viewResolute Mining Limited

Resolute Mining forecasts 500,000 ounces production in FY20

The company produced 384,731 ounces of gold in the year ended 31 December 2019 at an AISC of US$1,090 per ounce.

Resolute Mining Limited - Resolute Mining forecasts 500,000 ounces production in FY20
With gold trading at US$1,558 per ounce, Resolute is generating strong cash flows

Resolute Mining Ltd (ASX:RSG) has revealed it is targeting gold production of 500,00 ounces in the 2020 calendar year at an all-in sustaining cost (AISC) of US$980 per ounce.

This represents a 30% increase on unaudited 2019 gold production of 384,731 ounces at an AISC of US$1,090 per ounce.

The 500,000-ounce 2020 guidance target comprises:

  • 260,000 ounces at US$960 per ounce from the Syama Gold Mine in Mali;
  • 160,000 ounces at US$800 per ounce from the Mako Gold Mine in Senegal; and
  • 80,000 ounces at US$1,200 per ounce from the Ravenswood Gold Mine in Queensland.

Resolute had cash, bullion and listed investments as at 31 December 2019 of A$181 million

All operations enter 2020 at nameplate capacity

Resolute’s managing director and CEO John Welborn said: “Production guidance for 2020 of 500,000 ounces is a significant milestone for Resolute.

“Following completion of the repairs at Syama in late 2019, we have started 2020 with all our operations operating at nameplate capacity and generating positive cashflows.

“Strong operating cashflows, and reduced capital demands, will support a stronger balance sheet and create further opportunities for Resolute’s growth and ambition.”

Short squeeze opportunity

From September 2019, Resolute’s short interest began to increase with around 8.5% of the stock (76.5 million shares) short as at 6 January 2020 according to the ASIC data.

This makes it around the 20th most shorted stock on the ASX.

Using Resolute’s last 50 trading days on record, the average turnover for the stock is 11.4 million shares per day.

This means the total short interest represents about 7 days of trading volume to cover.

Quick facts: Resolute Mining Limited

Price: 1 AUD

Market: ASX
Market Cap: $1.1 billion

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