Resolute Mining forecasts 371,000 oz upper target in gold production for 2021

Syama underground

RESOLUTE Mining, the Sydney- and London-listed mid-tier gold producer, has forecast production for its 2021 financial year of 350,000 to 371,000 ounces which it said it would produce at an all-in sustaining cost (AISC) of $1,200 to $1,275/oz.

This compares to production of 395,136 oz poured last year with total gold recovered coming in at 400,713 oz at an AISC of $1,074/oz.

Of 2021 production, about two-thirds would be sourced from the oxide and sulphide operations of Syama mine in Mali. The balance – about 115,000 to 120,000 oz – would be from the Mako mine in Senegal.

Resolute last year sold its Ravenswood and Bibiani operations in Western Australia and Ghana respectively. The proceeds from the $103m sale of Bibiani would be used to reduce debt, the company said. Cash and bullion as of December 31 were $106m.

Capital expenditure for the current year was estimated to be $29m whilst investment in exploration and development capital would be $6m.

Resolute is currently seeking a permanent CEO following the departure in October of John Welborn after a five-year stint. Resolute CFO, Stuart Gale, is currently acting CEO.

He said in October the company was “absolutely under no misconception” that the goal was to produce positive cash flow. He promised to remedy a decline in third quarter production, caused partly by a strike at Syama in the period. But in December, Resolute said another strike had broken out at the Mali mine.

Shares in the company were down 3.5% in Australia today to trade at 68 Australian cents per share, edging closer to its previous 12-month low of 62 cents recorded in March.