Company
ASX:RSG
Resolute Mining Ltd is a successful African-focused gold miner with more than 30 years of experience as an explorer, developer and operator of ten gold mines which have produced more than 9 million ounces of gold. The company currently owns two producing gold mines: the Syama Gold Mine in Mali (Syama) and the Mako Gold Mine in Senegal (Mako). Syama is a robust, long-life asset comprising a underground mine and associated sulphide processing circuit, along with satellite open pit operations which provide ore feed to a separate oxide processing circuit. Mako is a high quality, open pit gold mine which Resolute has owned and operated since August 2019.
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Acquisition and elimination of the royalty over Mako will boost future cash flows to Resolute and is consistent with the company’s preference to operating gold mines which are free from non-government royalties.
In a vote of confidence, shares in Resolute are trading at a strong premium to the $1.10 capital raising price, last trading at $1.17 or a 6.3% premium.
The company has agreed with Taurus Funds Management Pty Limited to repay all amounts outstanding under the US$130 million Toro Gold bridge facility.
The company has taken advantage of market volatility and current gold price strength to incrementally extend its US dollar-denominated gold hedge position.
Resolute recently struck a deal to sell its Ravenswood Gold Mine for up to $300 million strengthening the company’s balance sheet.
Immediate value to Resolute of $100 million with up to $200 million in contingent upside.
Resolute is in advanced negotiations with EMR Capital for the sale of the Ravenswood Gold Mine for up to $300 million.
The company produced 384,731 ounces of gold in the year ended 31 December 2019 at an AISC of US$1,090 per ounce.
The company produced 384,731 ounces of gold in the year ended 31 December 2019.
The company has forward sold another 22,800 ounces of gold at an average price of US$1,553 per ounce.
MD and CEO: “With long mine lives, large gold inventories and an industry-leading production growth profile, Resolute remains strongly leveraged to further upside in gold prices.”
Stage 1 allows for annual production to increase towards the target of 80,000 ounces gold at Ravenswood.
The sulphide roaster at the Syama Gold Mine is back operating at nameplate capacity.
The new Syama power solution will combine world leading solar, battery and thermal generation technologies as well as improved environmental outcomes including a reduction in carbon emissions
New CFO Stuart Gale will replace Lee-Anne de Bruin who has been at the company since February 2017.
Options to be examined include off-balance sheet financing of Resolute’s proposed recommissioning plan, joint ventures and partial or complete divestment.
The Tabakoroni open-pit mine is 35 kilometres from the Syama processing plant and mining commenced at Tabakoroni in late 2018.
The comprehensive roaster repair and maintenance allows for possible deferral of a scheduled 2020 roaster shutdown.
Results show resource expansion potential at the Mako Gold Mine and nearby potential for a satellite pit.
The hybrid modular power station to be developed in conjunction with Aggreko will combine solar, battery and thermal generation technologies.
