RESOLUTE Mining, a gold mining firm operating in West Africa, was in its “strongest position for several years” having built net cash reserves of $96.6m as of end-June (H1 2023 net debt of $17.2m), said CEO Terry Holohan.
The company’s balance sheet was swamped as net debt climbed to $229m prior to Holohan joining the company in 2021. Resolute had also sold forward a significant portion of production as below market prices.
With the debt and hedging gone, however, Holohan is focusing on stabilising Syama and extending the life of Mako, a mine in Senegal the acquisition of which had contributed to Resolute’s former balance sheet problems.
Holohan said today in the firm’s interim results announcement that an inspection of the sulphide plant at Syama during the first quarter, which led to a two-week downtime, had shown it was in “great condition”.
Work is now progressed converting the plant at Syama to produce oxides and higher grade sulphide ores which will contribute to Resolute in the 2025 financial year.
An updated resources statement on Mako, and which could prove a life extension, is due to be published in the third quarter. Resolute is also hoping to produce a resource statement on a gold prospect in Guinea called Mansala.
Resolute produced 167,140 ounces in the first half of its financial year, a decline from 176,631 oz last year. This was owing to the downtime at Syama. Despite this revenue was 4% higher at some $341.5m thanks to a higher realised gold price of $2,170/oz which compares to $1,906/oz for the corresponding period last year.
Net income after tax came in at $33.4m (H1 2023: $87.7 million) due to $16.7m of extra tax expense as the tax exoneration in Senegal ended in July 2023, as well as $37.5m of non-cash unrealised foreign exchange differences.
Holohan joined Resolute in 2021 as its chief operating officer. He was appointed CEO about a year later.
