viewResolute Mining Limited

Resolute Mining locks in more forward gold sales at high gold prices

The weak Australian dollar and strong gold price has resulted in high $A gold prices.

map of world showing three mine locations
Gold is produced from the Syama mine in Mali and the Ravenswood mine in Queensland

Resolute Mining Ltd (ASX:RSG) has forward sold an additional 30,000 ounces of gold at an average price of A$1,887 per ounce.

The forward sales will be in scheduled monthly deliveries of 5,000 ounces between January 2020 and June 2020.

The objective is to secure price certainty for a portion of the revenues from Resolute’s Ravenswood Gold Mine in Queensland, Australia.

This adds to the existing 142,000 forward sold ounces through to 31 December 2019 taking the total to 172,000 ounces in monthly delivers out to June 2020.

This represents 30% of expected gold production over this period and only 3% of the company’s gold Ore Reserves.

READ: Resolute Mining locks in high gold price and increases stake in Manas Resources

Resolute’s managing director and CEO John Welborn said: “The Ravenswood Expansion Project will generate significant and ongoing value for Resolute with a long mine life, low risk, and low costs.

“The current Australian dollar gold price environment further supports the company’s development plans and investments.

“We continue to actively manage our gold sales and establish modest near term hedging to secure revenues and protect the company’s balance sheet.

“Establishing hedging at levels significantly above our budgeted gold price protects and supports Resolute’s revenue and cash flow.

“Resolute remains strongly leveraged to further upside in gold prices as we deliver on our strong organic growth agenda at Syama, Ravenswood, and Bibiani.”

READ: Resolute Mining increases quarterly gold production by 33%

Resolute produced 73,691 ounces of gold in the December quarter, up 33% on the prior September quarter.

The Syama Underground Mine ramp-up continues on plan with production up more than 50% to 56,207 ounces.

Ravenswood produced a consistent 17,484 ounces of gold.

The company is in a strong financial position with cash, bullion and listed investments as at 31 December 2018 of A$111 million.

Quick facts: Resolute Mining Limited

Price: 1.25 AUD

Market: ASX
Market Cap: $1.29 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Resolute Mining Limited named herein, including the promotion by the Company of Resolute Mining Limited in any Content on the Site, the Company...



Resolute Mining CEO discusses new hybrid power station at its Syama Gold Project

Resolute Mining Limited's (ASX:RSG) (LON:RSG) managing director and CEO John Welborn speaks to Proactive's Andrew Scott at the Mines & Money conference in London 2019. This week the miner's announced they're to develop a new hybrid modular power station at their Syama Gold Project in...

on 26/11/19

2 min read