Resolute Mining maintains full-year production guidance

Resolute Mining reported a 33% improvement in revenues in its first half on Friday, to $305.29m (£230.24m), as its EBITDA surged 85% year-on-year to $101.11m.

The AIM-traded firm declared no interim dividend for the six months ended 30 June, in line with the prior year, as its all-in sustaining cost rose to $1,020 per ounce, from $828 a year earlier.

Gold production for the period totalled 217,946 ounces , up from 176,237 ounces in the first half of 2019, while gold sales came in at 212,668 ounces at an average gold price of $1,427 per ounce, both rising from 176,294 ounces at $1,275 per ounce.

The company said underground operations at Syama returned to full capacity during the half-year, with sulphide processing recoveries increasing to 80% in the June quarter, while the life-of-mine plan at Mako was updated, increasing gold production by 39% and adding two years of mine life.

A refinancing was successfully completed during the period, through an equity raising and a new low-cost, flexible syndicated debt facility.

The sale of Ravenswood was also completed, with total proceeds of up to AUD 300m (£165.21m).

Cash and bullion balances stood at $88m at period end, with listed investments coming in at $35m along with a promissory note of AUD 50m.

Resolute said it had im[lemented a “comprehensive” Covid-19 response plan, while maintaining its full-year 2020 production guidance, which was still 430,000 ounces at an all-in sustaining cost of $980 per ounce.

“The first six months of 2020 will be remembered as a test of capability and resilience at Resolute,” said managing director and chief executive officer John Welborn.

“Onsite management have done an outstanding job to implement measures ensuring the wellbeing of all our employees, contractors and the communities in which we operate while at the same time maintaining and improving our operational performance.

“Their excellent work has enabled Resolute to maintain operations in line with our guidance and produce 218,000 ounces of gold in the first half of 2020.”

Welborn said the Syama underground mine continued to improve its mining and processing performance, explaining that successful exploration had extended the life of the Syama oxide operation while the company investigated the opportunity for a new underground mine at Tabakoroni.

He said Mako was also continuing to demonstrate it was an “excellent addition” to the firm’s portfolio.

“During the half year, Resolute completed a number of balance sheet strengthening activities including a successful equity raising and debt refinance, the sale of Ravenswood, and the acquisition of the Mako third party financing royalty.

“These initiatives, together with operating cash flow generation, have improved the company's financial position and created a more flexible, low cost balance sheet which positions Resolute for future growth and development.”