PERTH (miningweekly.com) – ASX-listed Resolute Mining has reported that its gold production for 2013 would exceed expectations; however, the miner said it was also looking at cutting back costs at its Syama expansion project, in Mali.
The company on Friday said gold production for 2013 would reach 430 000 oz, compared with the previously forecast 415 000 oz, as stockpiles at its Golden Pride operation, in Tanzania, performed better than expected.
The Golden Pride operation was nearing the end of its 15-year mine life and Resolute noted that, as a result, gold production for the next financial year would likely decline to some 345 000 oz.
Meanwhile, the miner also noted that it had deferred some $113-million in capital expenditure (capex) for the Syama expansion plan during 2014, with the company now only planning to spend $61-million over the next financial year.
“The result of the analysis reveals that the planned deferral of up to 18 months before expansion completion will not adversely affect the mine plan or longer-term revenue,” Resolute told shareholders.
The company said the new schedule would also give Resolute time to further evaluate the optimal approach to mining and treating the delineated oxide sulphide reserve inventory in the most capital efficient manner, while delivering positive cash flow.
Total capex for the expansion plan, which comprised the installation of a one-million-tonne-a-year oxide plant and an upgrade to the current sulphide plant and grid connection, has been set at $266-million.
To date, Resolute has spent some $92-million and the project was 34% complete.
“Resolute has maintained its ongoing commitment to cash management, ensuring the company remains in a strong financial position,” said CEO Peter Sullivan.
“We are in a fortunate position of having considerable flexibility in our operations to be able to generate cash over a wide range of adverse gold price movements and we will continue to apply a cautious and disciplined approach to how we deploy it.”