RESOLUTE Mining capped off a busy six months with a lift in half-year share earnings of 4.71 Australian cents (2018: 4.40c/share) – a performance achieved on the back of higher gold production and a consequent decline in all-in sustaining costs (AISC).
Most of the firm’s metrics moved in the right direction: production of 176,237 oz was 25% higher than at the interim stage last year whilst AISC of A$1,173/oz was significantly better than the A$1,317/oz last year. AISC in dollar terms was also better at $828/oz (2018: $1,017/oz).
John Welborn, CEO of Resolute Mining, said the firm was sticking to a lift in gold production as guided in July of some 400,000 oz which would be mined at $960/oz. He said there was “… further growth and upside to come in 2020”.
During July, Resolute unveiled a $274m cash and shares bid for Toro Gold which owns the Mako Gold Mine in Senegal. Mako produced 156,926 oz in the firm’s 2018 financial year at an AISC of $655/oz. Resolute also took a secondary listing in London in June in an effort to increase its profile, especially with the departure from that bourse of Randgold Resources.
Speaking to Miningmx in late July, Welborn said the firm’s ambitious growth trajectory would be continued. “We have unbounded enthusiasm for the sector and not because the gold price has been running,” he said. “We are ready to grow, and we are coming at you.”
In addition to production from Mako Gold, Resolute is working on the ramp-up of its Syama underground mine in Mali to full production. Annualised production of 500,000 oz was on the cards in the year even after excluding 100,000 oz/year in gold output from Bibiani, a gold mine in Ghana that Resolute is considering re-opening.
In terms of organic growth, the firm had a mineral resource of about one million ounces at a grade of more than five grams per ton at its Tabakoroni prospect, south of Syama – enough to underpin an underground mining development.
Mineral resources at Ravenswood, a mine in Australia, were now at almost six million ounces of gold. Welborn said ongoing study work was focused on delivering a project which could produce 200,000 ounces annually over a 15-year mine life.
