Make Kitco Your Homepage

Resolute Mining revenue up 33%

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

Resolute Mining, which operates gold mines in Africa and Australia, reported today a net profit after tax of A$39 million (US$26.25 million) for the six month period ended 30 June 2019 (H1 FY19).

The company (LSE:RSG) produced 176,237 ounces (oz) at an all-in-sustaining-cost of US$828/oz (A$1,173/oz) with total gold sales of 176,294 oz at an average realised gold price of US$1,275/oz (A$1,800/oz).

Revenue for the period was up 33% to A$324 million (US$218 million), generating a gross profit from operations of A$69m (US$46 million), up 77% on the previous corresponding period (H1 FY18).

Resolute achieved a 171% increase in earnings before interest, tax, depreciation, amortisation and fair value adjustments (EBITDA) to A$78 million (US$53 million).

Managing Director and CEO, Mr John Welborn, commented on the new mines that have come on-line:

"The ramp up of the Syama Underground Mine to full production will further increase Resolute's production base, margins, and cash flows. The acquisition of Toro Gold is a further boost to the profitability and cash generating capacity of our business.

"Our investment in exploration enabled us to deliver material growth in our gold inventory. At Tabakoroni, we now have a Mineral Resource comprising over one million ounces of gold at a grade above five grams per tonne which will underpin a potential underground mine, while at Ravenswood we added one million ounces of gold in Ore Reserves. Mineral Resources at Ravenswood are now almost six million ounces of gold with our ongoing study work focused on delivering a project which can produce 200,000 ounces annually over a 15 year mine life.

"We are delighted to have delivered as promised on important strategic goals for 2019 with our listing on the London Stock Exchange, the ramp-up of the Syama Underground Mine, and the acquisition of Toro Gold. Gold production for 2019 is now forecast to be 400,000 ounces at an All-In Sustaining Cost of US$960 per ounce with further growth and upside to come in 2020."

This spring Resolute said Syama was the world's first fully-automated underground gold mine.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.