- Resolute Mining (RSG) has released a production update and guidance, revealing it fell just short of meeting its target for 2020 gold production
- The miner ended the year with 395,136 ounces of gold poured, which is below the lower end of its revised forecast guidance
- The gap is being blamed on issues at the company’s Syama Gold Mine in Mali, including equipment delays and industrial disruption
- Looking ahead, Resolute has forecast gold production to total between 350,000 ounces and 375,000 ounces in 2021
- It also believes US$29 million (about A$37.24 million) will be spent on capital expenditure and US$6 million (around A$7.71 million) on exploration costs
- At the end of December, the mining stock had US$106 million (roughly A$136.14 million) in cash and bullion and US$337 million (approximately A$432.8 million) in total debt
- Shares in Resolute Mining have started Friday down 5.23 per cent at 72.5 cents each
Resolute Mining (RSG) has released guidance and production update, which shows it fell just short of meeting its gold production target for 2020.
Update
The gold miner revealed in today’s long ranging update that it ended the year with 395,136 ounces of gold poured.
That figure is below the lower end of its revised guidance of at least 400,000 ounces to be poured for 2020.
The drop in production is being blamed primarily on the Syama Gold Mine in Mali, where it experienced mining equipment availability and industrial disruption.
The company’s all-in sustaining cost (AISC) for producing gold over 2020 averaged US$1074 per ounce (around A$1379 per ounce), which was just within its guidance.
Guidance
Looking ahead, Resolute has forecast gold production to total between 350,000 ounces and 375,000 ounces in 2021.
The miner expects its AISC to fall between the range of US$1200 per ounce (about A$1541 per ounce) to US$1275 per ounce (roughly A$1637 per ounce).
Meanwhile, the company also forecast spending around US$29 million (about A$37.24 million) on capital expenditure over the forthcoming year.
An additional US$6 million (around A$7.71 million) will also be spent on exploration costs.
Resolute ended 2020 with US$106 million (roughly A$136.14 million) in cash and bullion on hand and a total debt of US$337 million (approximately A$432.8 million).
The business will release its full financial report late this month, but has already flagged using the proceeds from its planned Bibiani Gold Mine sale to help pay down debt.
Shares in Resolute Mining have dropped 5.23 per cent to trade at 72.5 cents each at 11:55 am AEDT.