Photo by: Reuters
PERTH (miningweekly.com) – Lower gold prices and the decision to halt operations at Golden Pride, in Tanzania, have seen ASX-listed Resolute Mining’s 2014 revenue decline by 15% year-on-year to A$527-million, and its profit plunge by 60%.
The company, which also owns assets in Mali and Australia, on Tuesday posted after-tax net profit of A$33.3-million.
During the financial year to the end of June, Resolute’s gold production declined to 342 777 oz, from 435 855 oz produced in the previous financial year. The company sourced 165 493 oz of gold from the Syama gold mine, in Mali, and 139 291 oz from the Ravenswood mine, in Queensland. The Golden Pride mine delivered 37 990 oz of gold during the full year, before mining was ceased in December.
Cash costs tipped A$922/oz during the year under review, compared with the A$811/oz reported in 2013, with Resolute explaining that costs were affected by a weaker Australian dollar, planned maintenance shutdown activities, and a ramp-up of the Syama project early in the financial year.
Resolute is spending about $235-million on the Syama expansion project. The project entails the installation of a parallel one-million-tonne-a-year oxide plant, the removal of redundant plant equipment, an infrastructure upgrade to the sulphide processing plant, including modifications to the crushing circuit, and an upgraded water supply pipeline.
Resolute reported earnings before tax, depreciation and amortisation of A$181.5-million, compared with A$302.9-million in the previous financial year.
Looking ahead, Resolute told shareholders that the company was expecting to produce some 315 000 oz of gold during 2015, at a cash cost of A$890/oz. While the Golden Pride operation would not contribute to the production figures in 2015, the Syama mine was expected to deliver more ounces as the expansion plan at the mine kicked in.