Resolute’s $38m net profit in line with expectations
JOHANNESBURG (miningweekly.com) – Australia-based gold miner Resolute Mining has posted a 40% fall in first-half net profit of A$38-million, which CEO John Welborn said on Thursday was in line with expectations as the company remained in an investment phase.
Revenue for the six-month period ended December 2017 was A$203-million, up 20% from the previous half year. Gold production reached 142 748 oz at an all-in sustaining cost (AISC) of A$1395/oz.
Welborn said he was pleased with the result, as it demonstrated Resolute’s “strong position” as it continued an investment phase designed to deliver long-life, low-cost mines.
“Today’s results are in line with our expectations as we successfully navigate a challenging short-term period of declining stockpile grades at Syama and lower production from Mt Wright at Ravenswood,” he commented.
Resolute noted that the resource of the Syama underground mine, in Mali, increased by 39% to 5.7-million ounces at 3.2 g/t. Further, the development of the underground mine was progressing on schedule with completion of the sublevel cave development expected in December 2018.
The resource of the Bibiani mine, in Ghana, increased by 40% to 2.5-million ounces at 3.6 g/t. Resolute reported that an updated feasibility study for Bibiani would be completed in the current quarter.
Welborn added that the company anticipates, “improving production and unit costs in the second half of the current financial year as [it] processes higher grades at both Syama and Ravenswood.”
Gold production and cost guidance for 2018 financial year has been maintained at 300 000 oz at an AISC of A$1 280/ oz.
The company’s balance sheet remains strong with cash, bullion and listed investments worth A$196-million, and cash and bullion net of debt of A$150-million.
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