PERTH (miningweekly.com) – Africa-focused gold miner Resolute Mining has reported a 19% fall in production during the three months to September, following industrial action at its Syama mine, in Mali.

The ASX- and LSE-listed miner on Thursday reported that gold production for the quarter ended June had reached 87 303 oz, down from the 107 183 oz poured in the June quarter.

Production at the Syama mine declined from 63 705 oz in the June quarter to 46 622 oz in the September quarter, while production at the Mako gold mine, in Senegal, declined from the 43 478 oz delivered in the June quarter, to 40 681 oz.

“At the outset, the September quarter can be characterised by continued strong performance at the Mako gold mine, it continues to deliver consistently month on month, and quarter after quarter,” said interim CEO Stuart Gale on a conference call on Thursday.

“Clearly we had some challenges at Syama with the industrial action, and that put us in a position where we were some 15 000 oz short of production that was guided for the period.”

Gale said that the industrial action had a significant impact on the Syama operation during the months of August and September, but noted that the company had undertaken ‘extensive negotiations’ with both the labour union and various government officials, and had now entered into a conciliation agreement which had negated further industrial action.

Speaking on the political situation in Mali following the government coup that took place in August, Gale was optimistic on the future of the country after a transitional government was established on September 25.

“The Economic Community of West African Nations has lifted the sanctions that have been imposed, and the key thing for us is that all the supply links into Mali have been reopened and transport of key consumables to Syama has been re-established,” Gale said.

Meanwhile, gold sales for the September quarter were also down by 18%, from 110 660 oz to 90 900 oz, while the average realised price increased by 17%, from $1 446/oz to $1 694/oz.

All-in sustaining costs for the quarter increased by 24% from the $1 033/oz reported in the June quarter to $1 284/oz.

Looking ahead at the full year, Resolute was predicting that production would be at the lower end of the guidance of between 400 000 oz and 430 000 oz, with costs expected to be at the higher end of the guidance of between $980/oz and $1 080/oz.