Shares in gold producer, Resolute Mining jumped more than 7% yesterday, making it one of the day’s stronger performers after it revealed a surge in gold production in the March quarter.
The company said production jumped 47% in the quarter from a year earlier (and 33% from the December quarter) and that it had achieved record quarterly gold production at its Syama mine in Mali.
The shares ended up 7.7% at $1.255.
Total quarterly gold production was 98,105 ounces, which was by high grades and above budget recoveries achieved from Resolute’s new mine at Tabakoroni.
This was supported by improvement from its Syama operation, which saw output jump more than 50% 50% to 84,552 ounces and represented a site record for quarterly output.
As a result of the strong quarter, the company says it is on track to achieve its 2019 (December 31) production guidance of 300,000 ounces gold.
And while the company didn’t reveal its all-in sustaining cost (AISC) for the latest three months, it confirmed that it is also on track to achieve its AISC guidance of $A1,280 an ounce ($US960 an ounce).
This compares favourably to the current spot gold price of $US1,296.10 an ounce (More than $A1,700 an ounce)
In 2018 the company achieved gold production of 284,000 ounces at an AISC of $US1,052 an ounce ($A1,355 an ounce).
“Syama is becoming the robust, flexible, high production, low-cost gold mine we have envisaged,” CEO John Welborn said in yesterday’s report.
“Syama will be a powerhouse of gold production for Resolute for many years to come. Underground ore production will continue to ramp up. Importantly we have provided the team additional time to optimise and commission the most advanced underground mining automation system in the world.”
