RESOLUTE Mining said on Thursday an announcement was imminent from its CEO Terry Holohan who took a leave of absence in December until January 31.
“His leave of absence ends at the end of this month and we expect an announcement shortly thereafter on his situation,” said acting Resolute CEO Chris Eger.
Eger was commenting on events in November when Holohan and two colleagues were detained by authorities in Mali shortly after a meeting in which Goverment allegations of unpaid tax – described by Resolute as “unsubstantiated” – were being discussed.
Holohan was released ten days later shortly after Resolute bowed to Government demands, including those related to unpaid tax. In a protocol, which effectively sets the ground work for accepting the new Mining Code, the company agreed to pay $160m in cash in tranches to the Government.
Post the last tranche, Resolute ended 2024 with $101m in cash and bullion, according to the company’s update in which it also disclosed the agreement with Mali would add $250/oz to its all-in sustaining costs (AISC).
The new Mining Code hands Government preference shares and obliges Resolute to pay an annual “foundation payment”, aimed at fostering community development.
Dave Jackson, acting CFO for Resolute said the AISC increase comprised an increase in royalties from 6% to 10% (accounting for $100m of the AISC increase), a 4% foundation payment ($100m), with the balance relating to the loss of a fuel exoneration benefit.
Commenting on its relationship with Mali, which has been ruled by a military junta since 2021, Eger said Resolute was “looking forward to understanding the impacts of the new mining code on the business.
“We have tried very much to re-engage the Government on the new mining code but the Government is still consumed in discussions with other mining companies so we have not engaged as we would like,” he said.
Resolute remained “excited” about growth prospects in Mali where it operates the 215,000 ounce a year Syama mine, Eger added.
Amid the protocol on the Mining Code, the company has opted to push out the commissioning of a new circuit aimed at treating the mine’s sulphide ore from June/July to 2026.
Eger said that would delay capital costs and enable to focus the business on cash generation as there were still sizeable oxide surface deposits that could be treated via the existing oxide mill.
Resolute’s gold production for 2024 came in at 340,000 oz which was well below guidance put at between 345,000 to 365,000 oz. AISC consequently shot up to $1,476/oz against a guided range of $1,300 to $1,400/oz.
For 2025, Resolute has forecast production of between 195,000 to 210,000 oz at an AISC of $1,700 to $1,800/oz.
The lower production in 2024 was down to lower-than-expected grades at its other operating asset, Mako mine in Senegal. Open pit mining is due to cease this year which will see the mine subsist by processing stockpiles until 2027.
There are plans for the $80m to $100m Tomboronkoto expansion that will keep Mako alive but Eger said there were a number of milestones that had to be met. Given that the project will require the relocation of a village, Eger described the current schedule as “ambitious”.
