RESOLUTE Mining passed the dividend saying it would target debt reduction in 2021, including using $103m in proceeds from the sale of its Bibiani gold mine in Ghana.
“Balance sheet improvement remains a key objective for us and cash flows from operations together with proceeds from asset sales will be prioritised to repay debt,” said Stuart Gale, acting CEO of Resolute Mining, in the firm’s published annual results announcement.
“Pleasingly, we were able to complete a number of corporate transactions during 2020 which reduced net debt by $92m and simplified the balance sheet,” he said. Resolute sold its Ravenswood mine in Australia for A$50m in cash ($39m).
Bibiani is to be sold to China’s Chifeng Jilong Gold Mining Company with sales approvals likely during the first quarter of 2021.
Net debt as of December 31 stood at $230m, a 28% year-on-year reduction, after taking into account cash and bullion of $106m.
Resolute said last week that underlying earnings before tax, interest, and depreciation came in at 87% higher at $269.7m for the 12 month period.
Group net profit after tax was $5m which compares to a loss of $78.5m in the previous financial year. Production in 2020 was lower than first guided with sales of 395,175 ounces at an average gold price of $1,562/oz (2019: 394,920oz @ $1,344/oz).
Resolute sells a portion of its gold production into forward contracts. The average spot price of gold over the 12 month period was $1,771/oz.
Gale said Resolute would focus on its organic growth options this year at its flagship Syama mine in Mali and Mako gold mine in Senegal.
Resolute is currently seeking a permanent CEO following the departure in October of John Welborn after a five-year stint.
