The original version of this article published on 6 am Thursday, July 23, 3030 made reference to the Ravenswood Gold mine which Resolute Mining divested in March 2020. The article has been corrected and updated at 11 am Thursday, July 23, 2020.
Gold miner Resolute Mining jumped more than 12% yesterday in the wake of a rise in the gold price and on news that it is on track to meet production guidance.
The company said in its June quarter report that it was on track to meet full-year production guidance of 430,000 ounces by the end of December (it has a calendar financial year).
June quarter gold production came in at 107,200 ounces, down 3% from the March quarter. All-in sustaining costs were also better than expected at $US1033 an ounce, even though they were higher than the $US1007 reported in the March quarter.
The shares rose 12.9% to $1.40.
Resolute CEO John Welborn said in yesterday’s statement:
“Production of 107,183oz of gold during the June quarter meets our expectations and results in year to date production to 217,946oz placing the Company in a strong position to deliver our full-year guidance of 430,000oz. I am particularly pleased with the performance of the Syama Underground Mine and Syama Sulphide operations during the June quarter where we produced 35,248oz of gold based on achieving our targeted mining and processing outcomes including an improved overall recovery rate of 80%. We continue to focus on further improvements to Syama Underground and Sulphide operations while ensuring the positive performance in the June quarter is sustainable and sets a benchmark for quarterly performance from now on. We expect to continue to improve production and deliver lower costs at Syama in the second half of 2020 while we evaluate further value enhancements and exciting exploration opportunities.”
“Mako continues to deliver consistently strong results and cashflows. The announcement of an extension to mine life and an increase in expected life of mine production from 700,000oz to 900,000oz is a positive outcome for Resolute and Senegal. We continue to evaluate opportunities to generate additional value demonstrating that Mako is an outstanding Resolute gold mine.”
