RSG, KIN Mining Quarterly Updates

  • Jan 17, 2020 AEDT
  • Team Kalkine
RSG, KIN Mining Quarterly Updates

Australia is considered to be a fortunate country as it has abundance of minerals underneath it. The metals and mining sector are among the major contributors to the GDP, making it an export-oriented country. Australia is among the top 4 major mineral producing countries with strong holds in commodities like iron ore, gold, copper, aluminium etc. Let’s have a look at two mining companies and their recent quarterly production update.

Resolute Mining Limited (ASX: RSG)

The company is involved in the mining, development of resource projects and exploration for gold minerals.

Resolute Mining Anticipates Higher Gold Production in FY20

Resolute Mining Limited produced 105,293oz gold at an AISC of US$1,419/oz in December 2019 quarter. The total gold production for FY19 stood at 384,731oz at an AISC of US$1,090/oz. Total gold sales for 2019 were 394,920oz at an average gold price received of US$1,344/oz.

  • For FY20 the company has given production guidance of 500,000oz at an AISC of US$980/oz;
  • It comprises: 260,000oz at US$960/oz from Syama, 160,000oz at US$800/oz from Mako and 80,000oz at US$1,200/oz from Ravenswood.

The company also reported production for 12 months to 31st December 2019. Key highlights are:

  • Total gold production of 384,731oz and gold sales of 394,920oz relative to production guidance of 400,000oz;
  • AISC of US$1,090/oz relative to cost guidance of US$1,020/oz;
  • Average gold price received of US$1,344/oz from total gold sales of 394,920 oz;
  • The company successfully repaired Syama roaster and returned to nameplate capacity after being offline for majority of quarter;
  • The company successfully completed expansion of 5Mtpa Ravenswoood plant and key Environmental Authority permit secured.

Production and Cost Summary for FY19 (Source: Company’s Reports)

Resolute Mining Sells Ravenswood for $300 Million

Resolute Mining Limited has signed an agreement for the divestment of the Ravenswood Gold Mine in Queensland to a consortium involving Golden Energy and Resources and EMR Capital.

  • The sale offers strategic clarity and is coherent with the company’s goal of being a low-cost multi-mine African-focused gold producer;
  • The deal comprises a $100 million upfront payment with up to $200 million in potential payments contingent on future gold prices, future gold production, and the investment outcomes from the Ravenswood Gold Mine.

More on the sale could be read here.

Resolute Mining Provides Exploration Results from Mali

Resolute Mining Limited had announced an exploration results from the company’s drilling campaign in Mali. The drillings primary focus is to expand Mineral Resources at Syama satellite prospects. The positive results will increase sulphide resources at Tabakoroni and build on the open pit oxide Mineral Resource inventory at Cashew, Tabakoroni and Paysans.

Key Highlights:

  • Excellent drilling results from Tabakoroni drilling confirm high grade shoots with 12m at 93.16g/t Au from 133m;
  • Tabakoroni mineralisation now delineated to modest depths of ~250m with significant further depth potential;
  • Drilling program at Tabakoroni will continue throughout 2020 along 1.8km strike length of identified mineralisation.

Stock Performance

The stock of RSG closed the day’s trading at $1.190 per share on 17 January 2020, up by 0.847% from its previous closing price. The company has a market capitalisation of $1.07 billion as on 17 January 2020. The total outstanding shares of the company stood at 903.15 million, and its 52-week low and high is $0.965 and $2.120, respectively. The company has given a total return of 3.51% in the time period of one month.

Kin Mining NL (ASX: KIN)

Kin Mining NL is a West Australian based gold development and exploration company. The company’s primary focus is its 100% owned Leonora Gold Project in the highly prospective NE Goldfields region of WA. The company has an 841koz gold Mineral Resource defined in both supergene and deeper primary mineralisation with considerable potential to grow this resource with further drilling.

Recently, the company reported its activities for the period ending 31 December 2019 at its flagship 100% owned Cardinia Gold Project.

Key Highlights:

  • Approximately 8,700 metres of diamond and aircore drilling finished at the CGP during the quarter, analysing new possibilities all situated within 5 kilometres of the Cardinia processing plant site;
  • Examining openings to enhance projected returns and surplus cashflow by replacing lower margin ore trucked from Mertondale to Cardinia with higher value processing plant feed;

Best results from Cardinia Hill included:

  • 24m at 1.64g/t Au from 32m to bottom of hole;
  • 20m at 1.42g/t Au from 8m;
  • 12m at 1.32g/t Au from 24m to BOH.

Best results from Lewis East included:

  • 53m at 1.27g/t Au from 4m to BOH;
  • 13m at 1.03g/t Au from 24m to BOH;
  • 4m at 11.6g/t Au from 8m.

The Company Acquires Tenement

The Company has entered into a sale and purchase agreement with Golden Mile Resources Limited for Kin to acquire 100% of two tenements that are contiguous with Kin’s existing CGP tenure, one to the north of the Cardinia mining centre and one to the south. The tenements are interpreted to capture positions of mineralised cherts like those encountered within the CGP.

  • The company has agreed to make a $30k cash payment to G88 as consideration;
  • Deeds of assumption containing royalty payments of 1% of gold production have been executed with third party royalty holders.

Expands Strategic Footprint at Leonora

Kin Mining NL has entered into a Farm-in and Joint Venture agreement with Genesis Minerals Limited over the Desdemona South JV Gold Project located south of Leonora in Western Australia.

  • Desdemona tenement package is contiguous with and located immediately north of Genesis’ 100%-owned 760,000oz Ulysses Gold Project;
  • Project is strategically located between Ulysses and St Barbara’s Gwalia Mine and covers several conceptual to moderately advanced gold targets;
  • Includes over 10km of prospective strike, including the northern extension of the strongly mineralised structural corridor that hosts the Ulysses gold deposit.

Stock Performance

The stock of KIN closed the day’s trading at $0.038 per share on 17 January 2020, up by 11.765% from its previous closing price. The company has a market capitalisation of $19.41 million as on 17 January 2020. The total outstanding shares of the company stood at 571.02 million, and its 52-week low and high is $0.033 and $0.086, respectively. The company has given a total return of -38.18% in the time period of six months.


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