On 8 January 2019, gold explorer, Resolute Mining Limited (ASX: RSG) responded to an article by Australian Business Review regarding the Ravenswood Gold Mine. In its response, the company has clarified that it has not made any decision regarding the sale or spin-off of its Ravenswood Gold Mine in Queensland. The company also informed that it is expecting to undertake a strategic review of Ravenswood in the first half of 2019. Ravenswood mine has been consistently performing for Resolute, and it is an important part of the company’s business for more than a decade. In FY 2018, the company produced 90,000 ounces of gold from its Ravenswood at an AISC of US$1,071 per ounce (AUD$1,394 per ounce).
Recently, the company provided its quarterly production update in which the company reported that it has produced 73,691 ounces of gold in the December quarter. The company also informed that the Production from its Syama and Ravenswood mine is on track. The company is expecting gold production of 300k ounces at an All-In Sustaining Cost of US$960 per ounce (AUD$1,280 per ounce) in FY 2019. As at 31 December 2018, the company had cash, bullion and listed investments of AUD$111 million and net debt of AUD$62 million.
Recently, the company forward sold an additional 30koz of gold at an average price of AUD$1,783 per ounce. The company will deliver 5koz of gold each month from July 2019 to December 2019. By making this forward sale the company was able to advantage of strength in the gold price to extend the Company’s Australian dollar-denominated gold hedge position which will help the company to protect projected returns from the Ravenswood Gold Mine during the staged development phase of the Ravenswood Expansion Project.
In FY 2018, the company earned a revenue of AUD$446 million from gold and silver. The Gross profit from operations was A$69 million which is substantially less than gross profit of AUD$177 million in FY 2017. The Diluted earnings per share was 8.72 cents and Return on equity was 12 percent in FY 2018. At the end of FY 2018, the company was having Net cash flows from operations of A$28 million, net investing cash outflows of A$269 million and Net financing cash outflows of A$15 million.
During the past one year, the company has yielded a positive return of 3.45% by increasing from $1.160 on 8 January 2018 to $1.200 on 7 January 2019. Moreover, in the past five days, the scrip has increased by 4.80%. Today (i.e., 8 January 2019), the price was down by 5% and the stock is currently trading at $1.140 per share with the day's total traded volume of 6,233,762. The company has 757.51 million shares outstanding with the market cap of circa $909.01 million. It is note worthy that the intraday fall was witnessed post a trading pause announced a bit early on January 8, 2019 while the group subsequently came up with the response to the media article for clarification purposes.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.