Resolute Mining has released its annual resource and reserve statement along with an updated Life of Mine Plan. Macquarie notes from the latter, the Syama Oxide mine life has been extended by two years after some exploration success.
The broker highlights the extended life allows for a delay to the -US$80-100m in capital spending for the Tabakoroni sulphide development which will dovetail with the oxide operation.
Elsewhere, costs at the Mako gold mine in West Africa are expected to be higher than first thought, explains Macquarie.
Taking the changes at Syama and Mako into account, the analyst reduces the target to $0.35 from $0.40 and retains an Outperform rating.
Sector: Materials.
Target price is $0.35.Current Price is $0.28. Difference: $0.07 – (brackets indicate current price is over target). If RSG meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
