RESOLUTE Mining reduced net debt and produced its fourth consecutive increase in gold production as the company sought to arrest a decline in performance of the last three years in which time the firm has had three CEOs.
Resolute’s firm’s share price is about 45% weaker year-to-date but Terry Holohan, CEO since April, said in his September quarter comments last week that full year production of 345,000 ounces at an all-in sustaining cost of $1,425/oz would be maintained.
Production totalled 90,387 oz for the quarter which was produced at an AISC of $1,513/oz – 2% lower than the June quarter.
Net debt was reduced by $26.3m to $156.5m as of the end-quarter with cash and bullion totalling $63.5m. The company generated $17.5m in free cash flow before asset sales, debt servicing and government dividends during the period.
Resolute received $10m from Asante Gold Corporation in deferred part payment for the Bibiani mine in Ghana. A further $12.5m will be paid by mid-November.
Holohan said the company had commenced a pre-feasibility study for Syama North development alternatives at the sulphide processing circuit with results expected in in the first quarter of 2023.
Some two million oz in mineral resources were discovered at Syama North in the quarter – a 40% increase – at about $10/oz. Said Holohan: “These results confirm the potential or a new open pit operation adjacent to the Syama processing complex”.
The pre-feasibility study would weigh a low capital expansion option for the Syama North satellite pit and enhancement of the crushing and milling circuit performance started, the company said in its third quarter notes.
Resolute operates at Syama mine in Mali and the Mako in Senegal. Whilst the latter has been a solid performer for Resolute since its purchase from Toro Gold, Syama has been problematic in the past.
Holohan, Resolute’s former COO, took the reins from Stuart Gale, CEO of Resolute since May 2021. Prior to that, Resolute was led by John Welborn who had held the post for five years.
