‘Operational stability has reflected in Resolute’s financials. In the third quarter, it turned net cash amid a buoyant gold price’
TERRY Holohan’s no-nonsense, back-to-basics approach at Resolute Mining has worked a treat. One doesn’t want to jinx the gold miner but based on the share price performance of last year, the company is set fair for 2024. Resolute was in a pickle when Holohan took over in 2021: net debt was $229m and its flagship asset, the Syama mine in Mali, was beset with operational problems. To make matters worse, Mali suffered two military coups in 2020 and 2021, raising sovereign risk over Resolute’s investment case.
While the West African country’s problems have, at best, remained unchanged since then, Holohan has re-established Syama as an asset of substance. A $52m first-phase expansion will see production exceed 250,000 ounces a year while the mine’s life has been extended with the delineation of 9.1 million oz in total measured and indicated resource. Holohan’s contention is there aren’t many world-class gold mines in Africa doing Syama’s current output and with a 10-year mine life including a maiden resource at the Syama North section. Mako, Resolute’s only other asset, is facing closure by the end of 2025 unless reserves can be proven. Holohan says he is growing “more confident” of this happening.
For now, the mine is expected to produce 130,000 to 140,000 oz/year with stockpiles due to be treated in 2026. Resolute has also set about regional exploration. Four prospects are being drilled in Guinea while closer to home, Resolute signed the Kolondieba joint venture with Marvel Gold at Syama. This operational stability has reflected in Resolute’s financials. In the third quarter, the company turned net cash. Amid a buoyant dollar gold price, this is uplifting news indeed.
LIFE OF TERRY
Holohan joined Resolute in 2021 before taking up the leadership last year. He brings to bear an extensive 40-year career that started in the 1980s and 1990s in the Zimbabwean and South African processing wheelhouses of Gencor, Impala Platinum and then Anglo American Platinum. From 2003, he was senior vice president at Ivanhoe Nickel and Platinum before leaving in 2006 to head exploration at the ill-fated Platmin. Then came a period in Asia before taking up the challenge at Resolute. He is a graduate of the University of Leeds.