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Resolute Mining forecasts 30% higher gold production in 2020

Kitco News

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(Kitco News) - Resolute Mining (LSE: RSG) is forecasting gold production for the full year in 2020 of 500,000 oz at an AISC of US$980/oz.

Today the company released guidance, production numbers and an update on its Ravenswood asset sale.

In 2019, the company performed under what it forecast.

The company said it poured 384,731 oz of gold, and gold sales were 394,920 oz relative to production guidance of 400,000 oz. The all-in-sustaining-cost was $1,090 oz relative to cost guidance of US$1,020 oz.

"Gold production and cost performance for FY19 was negatively affected by operational issues in the December 2019 Quarter which required unscheduled repair work at the Company's Syama Gold Mine in Mali (Syama) resulting in significant downtime, reduced gold production and additional unbudgeted expenditure," said the company in news release.

With fixes made to Syama, the company is expecting a strong performance from the mine. Resolute forecasts 260,000 oz at an AISC of US$960/oz.

The company also said it is in exclusive negotiations with EMR Capital Management to sell its Ravenswood gold mine in Queensland.

The sale price is forecast at A$300 million. Negotiations are "significantly advanced," said Resolute, but there is no certainty a deal will be reached.

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