ASX- and London-listed Resolute Mining has revised the gold production guidance for its Syama mine, in Mali, lower to between 150 000 oz and 160 000 oz, at an all-in sustaining cost (AISC) of between $2 300/oz and $2 400/oz, for this year.

It says that, since the release of the company's activities report for the second quarter, production at the mine has remained below plan owing to a challenging operating environment in Mali, which continues to impact on performance across underground mining, openpit mining and sulphide processing.

In a statement to shareholders, Resolute says these issues have continued to reduce ore availability, delay access to higher-grade ore sources and impact on plant throughput and recovery.

Resolute had previously expected the mine’s production to be between 195 000 oz and 210 000 oz, at an AISC of between $1 950/oz and $2 150/oz, for this year.

Meanwhile, Resolute assures shareholders that operational activities across the rest of the company’s business remain on track, with production at the Mako gold mine, in Senegal, tracking to guidance, construction at the Doropo gold mine, in Côte d'Ivoire, firmly on track and on budget and an extensive drilling programme at its ABC project, also in Côte d'Ivoire, also on track.

However, as a result of the lower Syama guidance, the company’s overall output guidance for the full-year has decreased to between 205 000 oz and 225 000 oz at an AISC of between $2 250/oz and $2 350/oz, compared with the previously guided 250 000 oz to 275 000 oz at an AISC of between $2 000/oz and $2 200/oz.

"Despite continued efforts to improve operational performance, the challenging operating environment in Mali has resulted in production remaining below expectations, requiring an update to the company's guidance.

“The issues are understood and corrective actions are under way across underground mining, openpit mining and the sulphide processing circuit. What is encouraging is that operational performance is increasing since July and we are starting to attain our operating budget despite the ongoing challenges in Mali,” says Resolute CEO Chris Eger.

He adds that the company’s immediate focus is on stabilising explosives supply through the construction of an emulsion plant, as well as working with its mining contractor to increase fleet availability and overall equipment.

SYAMA

Elaborating on the challenges faced at Syama, the company notes that operational constraints are linked to the operating environment in Mali, including delays in the movement of critical supplies, consumables and mining equipment.

Resolute says these factors have contributed to ongoing disruptions in underground development and slower progress in increasing openpit ore production.

The company says underground mining has been constrained by intermittent explosive supply during the wet season, with low emulsion availability and ammonium nitrate–fuel oil (ANFO) used as a substitute where possible, with wet conditions delaying development and production from new draw points.

Openpit mining at A21 has progressed below planned rates, delaying access to higher-grade ore.

The company says it has taken decisive action through the transition to a new mining contractor and is actively supporting an accelerated mobilisation programme designed to improve mining productivity and restore access to planned ore sources.

The impact of the operational constraints has predominantly impacted July and August production with total gold poured of 15 500 oz over the two-month period significantly below previous expectations.

Resolute says a number of remediating initiatives have either been implemented or are being implemented, resulting in an anticipated September gold production of about 15 000 oz.

Therefore, the company says it expects third-quarter gold production to be about 31 000 oz, increasing to between 45 000 oz and 50 000 oz in the fourth quarter, as the current improvement Resolute is seeing in September continues.

To address the ongoing explosives supply disruptions, the company is building an on-site emulsion plant, with commissioning planned for November.

In the openpits, the company says it is focused on closing the mining shortfall through increased fleet capacity and improved equipment availability.

Resolute adds that mobilisation of the new mining contractor remains a key priority, with additional equipment scheduled to arrive during September and October.

Stable operating results remain dependent on improved certainty regarding the movement and availability of key mining consumables, equipment and contractor resources within Mali.

Management believes the operational recovery initiatives implemented at site can support ongoing gold production levels in line with our expectations for the fourth quarter of this year, provided these external constraints continue to ease.

“Syama remains an important asset within the company's portfolio. Management is focused on strengthening operational performance through the successful execution of current improvement initiatives and establishing a stable platform for future growth,” the company says.