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Resolute Reports Successful Operations in March Quarter

Resolute Reports Successful Operations in March Quarter
Resolute continues to assess strategic options as part of its ongoing Ravenswood Extension Project with an emphasis on the Nolans East, Buck Reef West and Sarsfeild open pit deposits.
Apr 22, 2016 By Kaivalya Kandarpa Tags: RSG

Resolute Mining Limited (ASX:RSG) announced a positive quarterly review of its operations, as the miner strengthened its balance sheet, lowered costs further and boosted its overall production.

The miner improved its gross operating cash flow for the quarter as it generated $62.4 million from its Syama and Ravenswood mines, a substantial improvement over the $29.5 million earned in the previous quarter. Gold shipments have increased from 68,280 ounces to 84,363 ounces. 

As at 31 March 2016, Resolute recorded $90 million in cash and bullion, an improvement on $75 million noted in previous quarter.

As of today, the company has net repayments of $24.5 million on existing debt facilities. Resolute has repaid US$15 million of the Cash Advance Facility during the quarter, bringing it down to US$20 million. The miner aims to repay the outstanding balance in the upcoming quarter.

Total borrowings at the quarter end have been reduced to $71 million, from $96 million.

Managing Director and CEO, Mr. John Welborn commented on Resolute’s transformation into a debt free profitable company: “We are delighted to have moved during the quarter from a net debt position to net cash. Strong cost and production performance has allowed us to improve the balance sheet and vigorously pursue the Company’s key organic growth projects at Syama, Ravenswood and Bibiani.”

Mining Operations Progressed During the Quarter

The company has successfully extended Syama’s mine life beyond 2028 as the company aims to include the opportunities identified through the Syama Continuous Improvement and Cost Reduction program into its expanded Definitive Feasibility Study (DFS).

Resolute continues to assess strategic options as part of its ongoing Ravenswood Extension Project with an emphasis on the Nolans East, Buck Reef West and Sarsfeild open pit deposits.

The Bibiani Gold Project continues on the Feasibility Study and is due for completion prior to the end of the June quarter.

Resolute Lowers FY16 Cost Guidance

Production guidance for the upcoming fiscal year is maintained at 315,000 ounces. Resolute lowered the cost guidance for FY16 as it expects to incur cash costs of $915 per ounce from $990 per ounce.

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Kaivalya Kandarpa Author: Kaivalya Kandarpa Apr 22, 2016

Kaivalya is an equity analyst and a client advisor at Wise-owl. She specialises in fundamental and technical analysis for large and mid-cap companies. Having completed her bachelor's degree in Business Administration majoring in Finance, Kaivalya has a comprehensive understanding of international stock market movements. She tracks local and overseas markets and compiles analytical reports for various industries.

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