Resolute Mining Upbeat Despite Profit Slip
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Shares in Resolute Mining dipped nearly 3% yesterday after the company released unaudited profit figures for 2016-17 that fell a bit short of expectations. The release was made to coincide with a presentation the company gave to a WA mining conference.
The shares fell more than 2.3% to end at $1.05.
In its statement Resolute played up a 6% rise in what it called “gross profit” to $177 million from $167 million in the previous financial year, and buried the sharp 32% slide in net profit before tax to $136 million from $201 million (which included some one offs).
That was after revenue from gold and sliver sales eased to $541 million from $555 million in 2015-16.
The average gold price received of $1,717 per ounce from total FY17 gold sales of 317,242 ounce.
“FY18 gold production guidance set at 300,000 ounces at an AISC of A$1,280 per ounce (US$960 per ounce
“Total gold sales of 317,242 ounces generated sales revenue of $541 million, the company said yesterday. Cash, bullion and listed investments increased 184% to $290 million at June 30, 2017.
CEO John Welborn said his company "was proud to have delivered another strong financial performance during a period of ongoing transformation of Resolute’s Syama and Ravenswood gold mines:
“Resolute has a mission to mine gold and create value. Over the last two years we have consistently outperformed on both production and costs and have generated profits of circa A$350 million. During the course of the 2017 financial year the Company’s net cash position has improved by A$173 million. Resolute is well advanced on delivering on an industry leading organic growth profile with a focus on low cost, long life gold mines.”
Resolute’s full audited accounts will be released on August 24 along with the declaration of the Company’s FY17 dividend payment.
Resolute has a gold sales-linked dividend policy which allows qualifying shareholders to receive dividends in gold and aims to deliver minimum annual dividend payments equivalent to the value of 2% of annual gold sales.
Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.
At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.