Perth-based gold producer Resolute Mining Limited (ASX: RSG) stays committed to exploration, production and development of gold projects across Africa and Australia. The miner holds a broad portfolio of long life, profitable gold mines, including three flagships projects-Ravenswood (Australia); Syama Underground Mine (Africa); and Bibiani Gold Mine (Africa).
Resoulte’s Portfolio (Source: Company’s AGM Presentation)
With edging innovation, Resolute Mining is globally recognised for using the most advanced mining automation system in the world. Its automation system has resulted in high-speed production and extra productive hours, taking the LOM AISC down to US$746 per ounce.
For March 2019 quarter, Resolute Mining produced 98,105 ounces (up 33%) of gold at an all-in sustainable cost (AISC) of US$740 per ounce (down 24%). This marks the record quarterly production of the company supported by an exceptional performance of Syama and Tabakoroni (within the Syama oxide circuit), leading to high-grade ore and strong recoveries.
Managing Director and CEO, Mr John Welborn stated that Syama’s record production of total 84,552 ounces gold (up 50% on prior quarter) with 71,186 ounces gold at Tabakoroni outlines the company’s decision to prioritise development, infrastructure and the automation implementation program at its Syama Underground Mine.
Syama Operations Performance (Source: Resolute March 2019 Quarterly Report)
Syama Underground ramp-up continued; the company started with autonomous production drilling started as part of its ongoing automation program and permanent primary ventilation system and critical pumping infrastructure were completed.
As further stated by Mr Welborn stated, Given the commercial production scheduled for September 2019 Quarter, Syama will be a powerhouse of gold production for the company for many years to come.
As at 31 March 2019, Resolute had an estimated recoverable gold in circuit inventory of 67,612oz with a market value of approximately A$123 million (US$88 million). The Company’s Global Mineral Resources totalled 16.6 million ounces of gold including 5.8million ounces of gold in Ore Reserves (as at 31 December 2018) while Tabakoroni Resource update has confirmed 1 million ounces of gold at 5.1g/t.
Cash, bullion and listed investments stood at A$86 million at the end of March 2019 quarter.
Total Cash, Bullion and Listed Investments (Source: Resolute March 2019 Quarterly Report)
With operational expertise earned through 25+ years of experience, Resolute reaffirmed its production guidance to 300,000oz at an AISC of A$1,280/oz (US$960/oz) for the 12 months to 30 June 2019.
The company expects its Ravenswood’s production to improve in the June 2019 Quarter as a result of increased mill availability and improved production from the Mt Wright Underground Mine.
Ravenswood Operations Performance (Source: Resolute March 2019 Quarterly Report)
At the same time, implementation of the fully autonomous fleet and achievement of the commercial production at Syama remains the highest priority for Resolute.
During the March quarter, the company focussed on detailed mine design, business operations readiness planning and establishment of government approvals and support services for the Bibiani project, which the company intends to continue in June quarter in order to undertake a Final Investment Decision on the recommencement of operations.
On the investment front, the company continues to invest in highly prospective African-focused gold explorers, providing a pipeline of future development opportunities. The company further advances its preparation to get listed on the London Stock Exchange this year.
The company is expected to release new production and cost guidance in July 2019.
RSG is trading at A$1.120 (As at 24 May 2019) with a market capitalization of A$852.86 million. The stock has edged up by 17.19% over last six months.
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