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- Resolute Mining (RSG) reports its fourth consecutive quarter-on-quarter increase in gold production for the three months ending June 30
- RSG produced 89,134 ounces of gold across its operations, a nine per cent increase on the March quarter, including a 40 per cent increase at the Syama sulphide operation in Mali
- They also achieved a total recordable injury frequency rate of 0.89, the lowest in the last 12 months and a nine per cent decrease on the March quarter
- Resolute progressed drilling programs in the quarter which are continuing, with an MRE planned for Syama before the end of 2022
- RSG shares are up a slight 0.94 per cent to trade at 26.8 cents at 10:45 pm AEST
Resolute Mining (RSG) has reported its fourth consecutive quarter-on-quarter increase in gold production.
Group production totalled 89,134 ounces of gold in the June quarter which represents a nine per cent increase on the prior quarter, offsetting higher fuel and consumables costs, as well as higher sustaining capital. However, the June quarter saw an 11 per cent increase in all-in sustaining costs (AISC) to $1540 per ounce.
The company attributed the increased quarterly production to performance improvements at the Syama operation in Mali, offset by planned shutdowns at the Mako and Syama oxide processing plants.
Broken down, the Syama sulphide operation produced 42,759 ounces of gold, up 40 per cent on the March quarter, whereas the Syama oxide operation saw a decrease in quarterly production to 12,726 ounces.
As for the Mako operation in Senegal, gold production totalled 33,649 ounces which were directly in line with the previous quarter. AISC saw a hefty increase from $1567 per ounce in the March quarter to $2336 per ounce in the June quarter, however, the company expects higher grades in the second half will lead to a reduction in AISC.
“We are particularly pleased with the performance at Syama’s Sulphide operation since the scheduled maintenance shutdown in March. This quarter saw a 40 per cent increase in production which is 26 per cent higher than the average quarterly sulphide production in 2021,” Managing Director and CEO Terry Holohan said.
“Despite inflationary pressures being felt, we remain focused on maintaining and improving the group’s production profile for the remainder of 2022. This, coupled with ongoing cost control efforts, should offset some of these pressures.”
Resolute has maintained its full year 2022 production guidance of 345,000 ounces as well as its cost guidance at an AISC of $1425 per ounce.
The company also reported a total recordable injury frequency rate of 0.89, the lowest in the last 12 months and a nine per cent decrease on the March quarter.
In terms of exploration, Resolute Mining spent $4.7 million which mainly funded accelerated drilling programs in Mali, Senegal and Guinea.
The company reported “some of the best” gold intersections ever recorded from Syama North which confirmed the extension of mineralised zones along the 2.8-kilometre strike of the original A21 pit.
Resolute is continuing drilling programs and survey work throughout the rest of the year and aims to complete an updated mineral resource estimate for Syama North before the end of 2022.
The gold producer ended the quarter with cash and bullion of $81.8 million and net debt of $182.8 million.
RSG shares were up a slight 0.94 per cent to trade at 26.8 cents at 12:45 pm AEST.
