Resolute lifts output

28th January 2016 By: Megan van Wyngaardt - Creamer Media Contributing Editor Online

JOHANNESBURG (miningweekly.com) – Gold miner Resolute Mining has produced 73 111 oz of gold at a cash cost of $692/oz in the quarter ended December 31.

Its Syama mine, in Mali, produced 45 462 oz of gold, while the Ravenswood operation, in Australia, produced 27 649 oz.

The ASX-listed company achieved sales of 52 060 oz for the quarter, at an average price of A$1 552/oz, for A$81-million.

CEO John Welborn commented that the December quarter demonstrated Resolute’s commitment to debt reduction and strengthening the balance sheet, enabling the company to capitalise on the strong organic growth opportunities at Syama, Ravenswood and its Bibiani mine, in Ghana.

“Cash generation from our existing operations at Syama and Ravenswood is allowing the company to accelerate our debt repayments and prepare for investments in future growth.

“It is pleasing to see continued debt reduction in a quarter where we have completed major refurbishment and maintenance work at Syama, which involved a planned seven-week shutdown of the roaster,” he said.

Gold production and costs remained consistent with forecasts and guidance for the full financial year had been maintained.

“We ended the quarter with A$75-million in cash and an improved net debt balance of A$22-million,” Welborn said.

The strong balance sheet would allow Resolute to leverage the transformational opportunity inherent in its current asset portfolio.

“We have started an important improvement programme at Syama and expanded the Syama underground feasibility programme, with the expectation of delivering an exceptional long-term outcome for shareholders,” he noted.