Resolute Mining Release Improved Half-Yearly Results
Resolute's gold sales improved over 5% along with an 11% increase in the gold price received per ounce
Resolute Mining Ltd (ASX: RSG) have released their half yearly results, for the period ending 31st of December 2015. Supported by expansions in gold production, revenue, along with a continued reduction in debt, the gold miners returned to a state of profitability.
Return to Profitability
Over the course of the period, the company reported a 19% improvement in revenue, to $248million (1HFY15: $208million). Coinciding with an NPAT of $107million for the period. This is a significant improvement from the previous period, in which the gold miner incurred an over $320million loss in the prior corresponding period.
According to Resolute, these results were complemented by an 11% expansion in gold production, to 153,191oz, with their Mali based Syama Mine contributing over 60% to overall production.
Gold sales improved over 5% for the period, to 158,540oz, with an 11% increase in the gold price received per ounce, to A$1,561oz (1HFY15: A$1,401). Along with a 2.5% decrease in their AISC (All-In Sustaining Costs), to A$1,247oz.
Reduction in Debt
Over the period, the company’s net operating cash flow improved over 250% for the period, to $70.5million. According to the gold miners, this increase in operating income enabled them to increase their efforts in reducing its debt burden. Dedicating A$28million to debt repayments during the half-year. With their debt net of cash & bullion improving from -A$64million at the end of FY15, to –A$22million, as at the 31st of December 2015.
As a the 31st of December 2015, the company’s cash balance is A$579,000.
Production Guidance Maintained
For the full FY16, the gold miners have maintained a production guidance of 315,000oz, at an average cash cost of A$990 per ounce, along with an AISC of A$1,280 per ounce.
For the rest of the financial year, development activity will be particularly focused on the Syama Underground Definitive Feasibility Study, Ravenswood Mine Life Extension Project, along with the Bibiani Feasibility Study.
According to the company, through continuing operations, there will be an ongoing focus in reducing debt.
As at 10.38am (AEDT), RSG has contracted almost 2%, to approximately $0.52.
Author: Ben Khouri
Feb 29, 2016
Ben Khouri is a financial editor for Wise-Owl with a particular focus on the top ASX 300 companies. Having a vast background in economics and finance, Ben provides financial commentary & analysis as well as global market updates, which guide investors in devising investment strategies. Ben specialises in analysing economic data and global events from around the world and examines the impacts they have on the major equity markets.