ASX-listed Resolute delivered a solid production result for the quarter ended March 31, while completing the sale of Ravenswood and achieving important debt refinancing objectives, CEO and MD John Welborn said on April 20.
“We have started 2020 with a strong operating result, delivering 100 000 oz from Syama and Mako at a combined all-in sustaining cost (AISC) of $918/oz.
"The March 2020 quarter represents a turning point in our business, with record tonnages achieved from the Syama underground mine and the completion of the sale of the Ravenswood gold mine, resulting in a lower-cost profile as we focus on our future as an Africa-focused gold miner,” he said.
Refinancing was completed via successful equity raising and a new low-cost flexible debt facility.
Welborn also commended the company’s response to the Covid-19 pandemic, highlighting the commitment to maintain production.
There are presently no confirmed cases of Covid-19 at any of the company's sites or offices and gold production is unaffected by the pandemic; while the company also has a comprehensive response plan in place.
“The new protocols and operating procedures we have established are protecting our people and have enabled us to maintain our full year production and cost guidance for Syama and Mako. The safety of our people is and will always be Resolute’s first priority.
"The challenges presented by Covid-19 continue to evolve and we remain agile and united in our responses,” he said.
Welborn noted that the company was well supported by its logistics partners and its key supply chains including for fuel, food and product shipment.
“We will remain focused on keeping our people safe, and wherever possible keeping our mills running to produce gold,” he added.
Meanwhile, Welborn averred that the milestones achieved during the quarter under review would be significant in generating value for Resolute.
“Syama and Mako are performing and have scope to improve. Exciting exploration results are demonstrating the potential for organic growth opportunities. The successful completion of the company’s refinancing activities provides the company with a stronger balance sheet and a simplified capital structure. Operational discipline will be rewarded in the current high gold price environment.
"Importantly, we have the financial flexibility to pursue future growth opportunities and deliver on our strategy of being a multimine, Africa-focused gold producer,” he acclaimed.