RESOLUTE Mining was untouched by the COVID-19 virus pandemic which has severely disrupted industry and commerce globally, but the group’s CEO, John Welborn, acknowledged the challenges posed by the phenomenon changed constantly.
However, the company has maintained its previous full year production and cost guidance of 430,000 ounces at an all-in sustaining cost of $980/oz. This excludes ongoing production from Resolute’s Australian mine, Ravenswood – which has now been sold – but from which 11,046 oz worth of gold was booked in the quarter.
The Syama mine in Mali poured 57,531 oz of gold whilst the Mako mine in Senegal poured 42,186 oz of gold, the company said.
Commenting on COVID-19, Welborn said there was potential for further disruption, saying that “… further escalation of COVID-19, and the implementation of further government-regulated restrictions or extended periods of supply chain disruption, has the potential to negatively impact gold production, earnings, cash flow and the company’s balance sheet”.
“The challenges presented by COVID-19 continue to change on a daily basis,” he said.
Resolute announced last month it had refinanced its balance sheet by means of a $300m syndicated loan. At LIBOR plus a 4% margin, it lowered Resolute’s borrowing costs. The loan was used to refinance $63m in project finance for construction of the Mako Gold Mine in Senegal, and to replace $195m in existing senior bank debt facilities.
Resolute has also locked in revenue by selling forward some 215,000 oz of gold production – about half of projected 2020 output.
