PERTH (miningweekly.com) – Gold miner Resolute Mining has reported lower production and lower revenue for the year ended December, as sulphide operations at its Syama mine, in Mali, were impacted by unplanned maintenance issues.

Gold sales at the end of December reached 316 464 oz, down from the 395 175 oz sold in 2020, while gold prices increased from $1 562/oz to $1 733/oz in the same period, resulting in revenues of $549.2-million for 2021, down from the $603-million reported in 2020.

Resolute reported a net loss after tax of $367.5-million for 2021, compared with a net profit of $5-million in 2020, with earnings before taxes, depreciation and amortisation decreasing from $200.5-million to $129.9-million.

The Syama sulphide circuit delivered gold production of 135 618 oz during 2021 at an all-in sustaining cost (AISC) of $1 406/oz, a 10% increase in production compared to 2020 and a 4% reduction in AISC. Underground mining operations successfully transitioned to owner-operator during the second half of the year. Ore mined increased to 2.2-million tonnes, 6% higher than the prior year.

Sulphide gold production was impacted by unplanned maintenance issues, particularly in the crushing and milling circuits. Improvements in December production have continued into January and February 2022, ahead of the 35-day Sulphide shutdown, which is expected to deliver improved plant availability and operational performance.

Gold production from the oxide circuit for 2021 was 57 036 oz at an AISC of $1 501/oz. Mining was impacted by a prolonged wet season which impacted pit access and haulage, together with mining of lower grade ore. Despite this, ore mined increased from 2020 to 1.35-million tonnes, said Resolute.

Gold production at Mako, in Mali, totalled 126 617 oz for 2021 at an AISC of $1 139/oz. Operations at Mako were in line with guidance for 2021, reflecting the cutback of the main pit, which is expected to be completed by the first quarter of 2022 and provide access to deeper ore and extend the mine life.

“From an operational standpoint the cutback at Mako, which provides an additional two years of production, has progressed well and we finished the year strongly with December generating the highest monthly production across each of Resolute’s operations for 2021,” Resolute CEO Stuart Gale said.

“That momentum has been carried into January and February 2022 and positions us well for the 35-day roaster shut which commenced on 18 February 2022. This is an important project for Resolute which provides us with the opportunity to perform key plant improvement and maintenance activities to deliver a more consistent level of production at the Sulphide operations.

“The sale of the Bibiani gold mine in Ghana was completed during the year for total consideration of $90-million. $30-million was received in 2021, the second $30-million tranche was received on February 22 with the balance receivable on August 19. Proceeds from this transaction, together with other asset sales, will be applied to reduce debt and strengthen our balance sheet.

“Near mine exploration activity continued during 2021 resulting in a recently announced 40% increase to the mineral resource estimation for the Tabakoroni deposit. Successful oxide drilling programs were completed, resulting in mining commencing at the Beta pit and additional prospects identified for future drilling. Our exploration focus will ensure that we explore and capitalise on our existing asset base,” said Gale.

For the 2022 financial year, Resolute is forecasting total gold production of 345 000 oz at an AISC of $1 425/oz, with the Sayama sulphide operation to contribute 145 000 oz, while the oxide operation will contribute 75 000 oz. Mako is expected to contribute a further 125 000 oz in 2022.