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Resolute Mining Exceeds Guidance and Strengthens Balance Sheet in June Quarter

Resolute Mining Exceeds Guidance and Strengthens Balance Sheet in June Quarter
The company’s flagship project is the Syama gold mine, located in Mali, West Africa. The mine consists of two processing plants.
Jul 28, 2016 By Simon Herrmann Tags: RSG, Gold

Resolute Mining (ASX:RSG) produced 83,087 ounces of gold during the June quarter at All-in-Sustaining Costs of A$1,107 per ounce (US$827 per ounce).

The gold miner beat its guidance and produced 315,169 ounces of gold for FY16 at lower costs than originally anticipated. Total annual gold sales were ahead of guidance as well at 340,540 ounces, which resulted in strong operating cash flow boosted by the recent appreciation of bulletin prices. The average price at which gold was sold during the quarter was A$1,712 per ounce, significantly ahead of the company’s All-in-Sustaining Costs.

The company’s flagship project is the Syama gold mine, located in Mali, West Africa. The mine consists of two processing plants.

Resolute Focuses on Strengthening Balance Sheet

Resolute’s financial position has significantly improved since the beginning of the year as cash and bullion increased to A$102 million, while the final repayment of US$50 million senior secured cash advance facility was made and $15 million of convertible notes were converted and redeemed. Total borrowings were reduced by $44 million during the June quarter.

Resolute started the year with net debt of $64million and has ended with net cash of $75million.

Managing Director and CEO John Wellborn commented on the quarter: “Resolute has achieved a number of crucial milestones on our journey to establishing a long life, low cost future for our business. Operations are performing strongly and this is providing a platform to strengthen the company’s balance sheet.”

RSG opened higher this morning, trading as high as $1.59 shortly after open. RSG has gained over 500% year-to-date and was recommended by Wise-owl on 18 February at $0.46.

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Simon Herrmann Author: Simon Herrmann Jul 28, 2016

Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.

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