RESOLUTE Mining reported 2019 production of 384,731 ounces which was slightly below its 400,000 oz target owing to disappointing numbers from the firm’s flagship Syama mine in Mali in the last two quarters of the year.
“Syama sulphide production fell well short of our expectations in both the September and December quarters,” said John Welborn, CEO of Resolute in an update. “Our operating and project teams have worked hard to offset lost production with strong performance from our other operating assets,” he said.
Resolute warned in October of a serious impact to 2019 production owing to technical problems with its roaster at Syama. The roaster was taken offline for repairs owing to a crack in its main external shell.
Welborn said that despite these issues, the company could look back on a successful financial year as it had ticked a number of strategic boxes.
“We have now fully commissioned the Syama underground mine, refurbished the Syama sulphide circuit, acquired the Mako Gold Mine on highly value accretive terms, generated excellent exploration success at Tabakoroni, completed stage 1 of the Ravenswood Expansion Project, and significantly progressed the strategic review of Bibiani,” he said.
Resolute last week announced it had extended its forward sales to a total of 177,800 oz for 2020, equal to about 44% of total production assuming 400,000 oz implied by the firm’s third quarter operating numbers.
“Incremental expansion of our US dollar hedging position at current levels which are significantly above our budgeted gold price, protects and supports Resolute’s revenue and cash flow,” said Welborn.
The company is due to submit its “December 2019 Quarterly Activities Report” on January 17.
