On 13 February 2019, Resolute Mining Limited (ASX: RSG) announced its Annual Ore Reserve and Mineral Resource Statement as at 31 December 2018. According to the company’s announcement, the company’s global Ore Reserves of 5.8 Mn oz of gold attributes to 21% increase in Buck Reef West reserves to 636,000 oz. Further, the company’s global Mineral Resources of 16.6 Mn oz of gold attributes to incremental resource increases at Buck Reef West and Syama at a discovery cost of A$19 per Resource ounce and A$33 per Reserve ounce.
The company’s managed Mineral Resources at Syama, Ravenswood, and Bibiani totalled 15.2 Mn oz of gold and rest attributable Mineral Resources from equity investments of 1.4 Mn oz of gold.
As per the company reports, Resolute’s asset (Ore reserves) holds ownership of 100% in Ravenswood, 80% in Syama (Mali Government 20%), 90% in Tabakoroni (Mali Government 10%) and 90% in Bibiani (Ghana Government 10%). The net government’s interest is 5.1 Mn oz of gold out of company’s fully attributable Managed Ore Reserves position whereas the net government’s interests are 13.4 Mn oz of gold out of the company’s fully attributable Managed Mineral Resources position.
RSG’s total investment in exploration and discovery since 2010 has been A$193 Mn. Based on increases in Ore Reserves of 2.9 Mn oz and Mineral Resources of 7.0 Mn oz, and production of 2.9 Mn oz of gold, RSG’s historical discovery cost over this period has been calculated as A$33 per Reserve ounce and A$19 per Resource ounce.
The company in its ambition to produce more than 500,000 oz of gold annually had been maintaining its focus on long life mines at Syama, Ravenswood, and Bibiani. It currently maintains six million ounces of gold in Ore Reserves which are located immediately beneath existing mills and processing plants. It’s well commissioned fully automated sublevel cave gold mine at Syama will be powered by the world’s largest site-based hybrid power plant.
The company expects that their ongoing expansion of gold reserves and resources in Mali at Tabakoroni and Nafolo, coupled with successful implementation of industry-leading technologies, will provide opportunities for growth in production and higher gold value per Resolute share.
Resolute Mining Limited with more than 28 years of experience in development, exploration, and operation of gold mines in Australia and Africa expects to produce 300,000 oz of gold at an AISC of A$1280 per oz by the end of FY 2019, and it aims to increase the production to 500,000 oz of gold annually.
It reported a decrease in its revenue by -17.66% to A$445.55 Mn in FY18 from A$541.17 Mn in FY17 where its profit after tax declined by -53.13% to A$77.84 Mn in FY18 from A$166.10 Mn in FY17. It's basic and dilute EPS declined by -53.54% and -53.14% respectively in FY18 (y-o-y).
On stock information, Resolute Mining last traded at A$1.065 as on February 13, 2019, with the market capitalization of A$807.37 Mn. Its PE multiple is at 12.03x. Its 52 weeks high has been noted at A$1.440 and 52 weeks low at A$0.91. Its absolute return for the past 3 months, 1 year and 5 years are 3.90%, -1.39%, and 69.05% respectively.
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