Resolute advances priorities during interim period
West Africa-focused gold miner Resolute Mining continued to advance its operating, development and exploration priorities during the quarter ended June 30, while maintaining a strong balance sheet, CEO Chris Eger says.
The group ended the period with net cash of $317.4-million, supported by operating cash flow generation and the receipt of proceeds from the Ravenswood vendor financing repayment.
Group production was 45 192 oz, with Mako continuing to perform well and Syama delivering in line with the operational update provided in June.
Production at Syama was impacted on by the planned roaster shutdown and slower mobilisation of equipment at the A21 openpit, with activity improving toward the end of the quarter.
“We remain focused on lifting production through the second half as the Syama Sulphide Conversion Project is progressively commissioned and ramped up,” Eger informs.
At Doropo, the project moved from final investment decision into active execution.
Early works advanced in the period with construction remaining on track and on budget.
Post quarter-end, Resolute secured $155-million of local bank financing with a further $105-million expected to be finalised in the third quarter.
Local bank financing together with existing cash and future operating cashflows are expected to provide sufficient liquidity to finance the construction capex for Doropo under current market and regulatory conditions.
At ABC, in Côte d’Ivoire, Resolute in July announced an expanded inferred mineral resource of three-million ounces, reinforcing the scale of the project which it hopes will eventually become the company’s second mine in the country, Eger explains.
The approved work programme is now focused on infill drilling, technical studies, environmental and social baseline work and permitting, with the objective of advancing the project through feasibility studies and mining application workstreams by the end of 2027.
Mako continued to perform strongly from stockpile processing during the quarter, while work on the Mako life extension project progressed across technical, permitting and environmental and social workstreams, Eger highlights.
In Guinea, work also advanced on the establishment of the joint venture with Nimba Mining Company and related licence applications, he adds.
All-in sustaining costs (AISC) of $2 484/oz are as expected owing to lower production at Syama and higher royalty payments from elevated average realised gold prices.
Operating cash flow was $77.4-million, driven by the continued favourable gold prices in the quarter.
Earnings before interest, taxes and depreciation were $128.5-million from $247.1-million of revenue.
Group production guidance is on track to be around the lower end of the 250 000 oz to 275 000 oz guidance range. Group AISC of $2 000/oz to $2 200/oz is maintained; however, it is subject to change with elevated gold prices and higher fuel costs.
Capital expenditure guidance remains on track at $310-million to $360-million.
“Overall, Resolute enters the second half of the year with clear priorities: progressing Doropo construction, safely increasing production at Syama, progressing the Mako life extension project, advancing ABC through its next phase of studies and drilling, and maintaining discipline across costs, capital and balance sheet management,” Eger informs.