- The company is planning a 2019 debut on the London Stock Exchange
- Syama Gold Project in Mali is its flagship project, a mine it expects to fully automate this year and then power with solar energy by next year
- The company is a producer, forward selling gold from sources such as Ravenswood Gold Mine in Queensland, Australia
What does Resolute Mining do?
Resolute Mining Ltd (ASX:RSG) (FRA:RSM) (OTCMKTS:RMGGF) is a gold producer in Africa and Australia that is focused on long-life mines. It is run by John Welborn, an investor and chartered accountant who is a director of the World Gold Council. Welborn was previously head of specialised lending in Western Australia for Investec Bank (Australia) Ltd.
The managing director & CEO serves on a number of boards, including Orbital Corporation Limited’s (ASX:OEC) (OTCMKTS:OBTEF) (FRA:OREA), where he is chairman.
He is also a director of Equatorial Resources Ltd (ASX:EQX) (FRA:PBU) and Kilo Goldmines Ltd (CVE:KGL) (FRA:02K1).
What does Resolute Mining own?
Key assets are the company’s flagship Syama Gold Project in Mali, West Africa; Ravenswood Gold Project in Queensland, Australia; and Bibiani Gold Project in Ghana.
The 80%-held Syama project is 30 kilometres from the Côte d’Ivoire border and 300 kilometres southeast of the Mali capital Bamako.
Resolute holds its stake through Societé des Mines de Syama while the Malian government owns the remaining 20% stake.
Commissioned in December 2018, the project has two fully operational parallel sulphide and oxide processing plants with the site capable of producing more than 250,000 ounces a year.
The revived mine is expected to reach a world-first full automation status by September quarter of 2019 and be powered by a hybrid solar grid which will be operational in 2020.
Resolute's total investment in exploration and discovery at its projects has been $193 million since 2010, with its historical cost calculated as $33 per reserve ounce and $19 per resource ounce.
Its ore reserve was 5.8 million ounces of gold while its resources were 16.6 million ounces after accounting for mining depletion and additions due to exploration.
Ravenswood has the most managed ore reserves, with 69.88 million tonnes grading 0.8 g/t for 1.73 million ounces, while Bibiani has the highest grading with 6.4 million tonnes grading 3.3 g/t for 660,000 ounces.
Syama is a close second on the ore-reserve grading front, with 42.41 million tonnes grading 2.5 g/t for 3.41 million ounces.
The global mineral resources of 16.6 million ounces corresponded to incremental resource increases at Ravenswood’s Buck Reef West and Syama, with managed mineral resources at the three projects of 15.2 million ounces of gold, and attributable mineral resources from equity investments of 1.4 million ounces.
Ravenswood is a revenue-producing asset that had 30,000 ounces of forward-sold gold in the December quarter of 2018 at an average price of A$1,887 an ounce.
The spot gold price overnight was US$1,292.35 an ounce ($1820.25).
Resolute produced 73,691 ounces of gold in the December quarter, up 33% on the prior September quarter of 2019 with the Syama Underground Mine ramp-up on track with production up more than 50% to 56,207 ounces.
The company produced a consistent 17,484 ounces of gold while shrinking its all-in sustaining cost by 13% to A$1,360 an ounce (US$975/ounce at the time of reporting).
Resolute then ended the December quarter with A$117 million cash, bullion and listed investments and a further A$134 million in a gold circuit inventory of 74,000 ounces.
The company is planning a London Stock Exchange listing in the June quarter of 2019 ahead of its Syama milestones.
Resolute’s next quarterly production results are expected to be posted by the end of April 2019.
Inflection points
Increased reserves, resources and production at the company’s projects
Continued forward-sells of gold ounces, especially from Ravenswood in Australia
Progress with delivery of fully-automated mining activity at Syama in Mali
Bibiani development and on-boarding in Ghana
Resolute managing director & CEO John Welborn notes June quarter target
“The successful commencement of sublevel caving at Syama on time and on budget in December 2018 was the highlight of the period and represents a pivotal moment in the long history of the company,” Resolute managing director and CEO John Welborn said in February.
“Syama is a world-class, long-life, low-cost asset that will deliver long-term benefits to our shareholders, stakeholders, and local Mali communities for years to come.
“We are now focused on the implementation of our fully automated mining system and delivering our full production rate of 2.4 million tonnes per annum by June 2019.”
Resolute managing director & CEO John Welborn will deliver an electrification case study during a renewables in mining session on day 1 of the June 19-20 Energy and Mines Australia Summit at Westin Perth. Welborn will focus on the delivery of low-cost electricity with solar energy and storage during his 11am presentation.