Resolute warns of lower gold as rains pummel mines
RESOLUTE Mining said “unprecedented rains” negatively affected production at its Senegal and Mali mines in the third quarter in which output fell and costs increased.Owing to the rains and the variability of grades at Mako, which is nearing the end of its open pit mine life, the Senegal mine would be below guidance, said MD and CEO Terry Holohan in a quarterly production update on Tuesday.All in all, production totalled 85,043 ounces compared to 90,787oz in the previous quarter, while all-in sustaining costs (AISC), which also accounts for growth capital, came in at $1,452/oz compared to $1,402/oz in the second quarter.Resolute said the third quarter’s performance meant that total gold output for 2024 could be at or below the lower-end of guidance of between 345,000 to 365,000 oz.Consequently, AISC would come in at the upper end of guidance of between $1,300 and 1,400/oz, mostly due to lower Mako production as well as the impact of a higher royalty rate in Mali, related to “the higher gold price environment”.Shares in Resolute were 1.6% higher on the Australian Securities Exchange. The stock has been on a charge all year, up nearly 141%.“It has been a mixed quarter for Resolute,” said Holohan. “Despite unprecedented rains affecting mining operations at both Mako and the oxide operation in Syama (in Mali), the company still produced 85,000 oz of gold and generated substantial free cash flow of close to $50m,” he said.Resolute ended the period with net cash of $145.6m compared to $96.6m at the close of the second quarter. Total cash and bullion stands at $188.3m quarter-end.In September, the miner announced it had raised $60m in debt which would be used for new organic and inorganic expansion. In addition to possible M&A activity, Resolute is upgrading the Syama plant and is hoping to develop Mako’s underground resources and reserves so as to extend its mine life.The third quarter’s cash standing and debt facilities represents an impressive turnaround in fortunes for the West African miner. Net debt climbed to $229m prior to Holohan joining the company in 2021. Resolute had also sold forward a significant portion of production as below market prices.Gold was sold for an average of $2,493/oz compared to $2,342/oz in the second quarter. The gold price is currently trading at about $2,750/oz.The post Resolute warns of lower gold as rains pummel mines appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com
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