Resolute Mining Limited (ASX: RSG) had made an announcement about the production update which was of the quarter ended December 2018. As per the press release dated January 7, 2019, Resolute Mining Limited managed 73,691 ounces gold production in the three months ended December 2018 which reflects a rise of 18,183 ounces from the September 2018 quarter. The production of gold with regards to the Syama stood at 56,207 ounces which reflects the rise of over 50%. Of this, Syama Oxide operations have made the contribution of 34,653 ounces while the Syama Sulphide operations have contributed 21,554 ounces. The release given by the company had also stated that, since the sublevel cave ore production had started from Syama Underground Mine in December 2018, there are expectations that the production moving forward might witness a rise from the Syama sulphide operations.
Resolute Mining Limited had also provided some information related to the debt as well as the cash position. As of December 31, 2018, the company happens to have total cash, bullion as well as listed investments amounting to A$111 million. The total debt of the company stood at A$173 million. As of December 31, 2018, the company’s net debt position stood at A$62 million. The release issued by the company also stated that the additional information as well as commentary with regards to the operational performance, cash flows, production costs as well as the company’s profile related to growth would be given in December 2018 quarterly activities report. This report, as stated, would be out before January 31, 2019. We will now have a look what the company’s management has to say.
The CEO (or Chief Executive Officer) and Managing Director named Mr. John Welborn reflected positive views. He also regarded the December 2018 quarter as “turning point.” He also stated that Ravenswood and Syama production happens to be on track and he also added that beginning of sublevel caving with regards to Syama Underground Mine would be giving more benefits. Mr. John Welborn also stated that the company would be prioritizing the growth and they would also be adopting big steps in 2019 which also includes the activities focused towards listing on the London Stock Exchange.
It is also essential to have a look at how the stock of Resolute Mining Limited had performed during the past few months. The last traded price of Resolute Mining was A$1.200 per share. The market capitalization of Resolute Mining Limited stood at ~$909.01 million, and the company is having the annual dividend yield of 1.67% (as on the Australian Securities Exchange or ASX). In the time span of previous one month, the stock has delivered the return of 23.71%. However, in the previous three and six months, Resolute Mining Limited had given the return of 11.63% and -12.09%, respectively.
However, Resolute Mining Limited had delivered the return of 3.90% in the span of the previous five days.