PERTH (miningweekly.com) – Gold miner Resolute Mining has set a production target of 500 000 oz for the 2020 financial year, with all-in sustaining costs (AISC) forecast to fall to $980/oz.

The miner has reported a gold production of 382 731 oz of gold for the full 2019, which was slightly below the 400 000 oz guidance set, as the Syama operation, in Mali was affected by operational issues during the last quarter of the year.

AISC for 2019 was reported at $1 090/oz, relative to the guidance of $1 020/oz, with the cost guidance also negatively impacted by the operational issues at Syama, which required unscheduled repair work and which resulted in significant downtime.

During the full year, Syama produced 243 058 oz of gold at an AISC of $1 125/oz.

Meanwhile, the Mako gold mine, in Senegal, produced 87 187 oz in the full year, while the Ravenswood gold mine, in Queensland added a further 54 486 oz.

For the 2020 financial year, gold production from Syama is expected to reach 260 000 oz, at an AISC of $960/oz, with sulphide production at Syama expected to accelerate in the March quarter and be a strong performer in the full year.

“Production guidance for 2020 of 500 000 oz is a significant milestone for Resolute. Following completion of repairs at Syama in late 2019 we have started 2020 with all our operations operating at nameplate capacity and generating positive cash flows,” said Resolute MD and CEO John Welborn.

“Strong oprating cash flows and reduced capital demands will support a strong balance sheet and create further opportunities for Resolute’s growth and ambition,” he added.

Resolute told shareholders that the company is continuing to work towards a production target of 300 000 oz at the Syama operation, at an AISC of $750/oz, through the expansion of mining rates at the underground mine, and the addition of a future high-grade underground mine at the Taakoroni deposit.

Resolute is expected to spend some $15-million of non-sustaining capital at Syama in 2020, which will include funding for a solar hybrid power plant.

Meanwhile, the Mako operation is expected to continue at a similar trend in 2020, although ore grades will likely be lower due to the depletion of high-grade stockpiles. Gold production from Mako is expected to reach 160 000 oz in 2020, with AISC expected at $800/oz.