REG - Resolute Mining Ltd - Appendix 4E & Preliminary Final Report
28/02/2025 07:00
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RNS Number : 8658Y Resolute Mining Limited 28 February 2025
28 February 2025
Reporting Period
The reporting period of Resolute Mining Limited and its subsidiaries
("Resolute" or the "Group") is the year ended 31 December 2024 with the
corresponding reporting period being for the year ended 31 December 2023.
Unless otherwise stated, all dollar figures are expressed in United States
dollars ($).
Results for Announcement to the Market
12 months ended 12 months ended
31 December 2024 31 December 2023
$'000 $'000
Revenue from ordinary activities Up 27% to 800,973 631,073
(Loss)/profit for the period Down (115)% to (13,280) 91,533
(Loss)/profit after tax attributable to members Down (133)% to (21,480) 65,577
Amount per security Franked amount per security
Dividends
Final dividend (per share) N/A N/A
Record date for determining entitlements to the final dividend N/A N/A
Payment date for the final dividend N/A N/A
Franking 0% franked
12 months ended 12 months ended
31 December 2024 31 December 2023
$ $
Net tangible assets backing (per share)1 0.23 0.26
1. Net tangible assets excludes right of use assets from the reported net
assets in the statement of financial position.
This Appendix 4E - Preliminary final report has not been subject to audit and
there is no audit report provided. This report should be read in conjunction
with the Financial Report for the period ended 31 December 2024. The
Financial Report for the period ended 31 December 2024 is currently being
audited by Ernst & Young and will be finalised for lodgement with the ASX
in March 2025.
Summary Financial Performance Review
The reporting period is the year ended 31 December 2024 with the
corresponding reporting period being for the year ended 31 December 2023.
Unless otherwise stated, all dollar figures are United States dollars ($).
The financial performance of Resolute for the year ended 31 December 2024 is
summarised below:
Profit and Loss Analysis1 2024 2023
($'000s)
Revenue 800,973 631,073
Cost of sales excluding depreciation and amortisation (392,120) (400,378)
Royalties (59,165) (36,313)
Administration and other corporate expenses (19,825) (18,450)
Exploration expenses (9,483) (14,720)
EBITDA2 320,380 161,211
Depreciation and amortisation (127,658) (81,044)
Net interest and finance costs (3,897) (11,176)
Inventories net realisable value movements and obsolete consumables 26,065 (12,665)
Fair value movements and treasury transactions (19,957) 22,442
Other (167,556) 17,555
Net profit before tax 27,377 96,324
Income tax expense (40,657) (4,791)
Reported net (loss)/profit after tax (13,280) 91,533
1. Amounts presented above are aggregate balances of certain line items
presented in the Consolidated Statement of Comprehensive Income.
2. This is a non-GAAP measure with no standard meaning under IFRS.
Group earnings before interest, taxation, depreciation, and amortisation
(EBITDA2) of $320.4 million in 2024 was a 27% improvement on the comparative
period, primarily due to the higher revenue of $801.0 million from gold sales
of 335,708 oz (up 2%) at an average realised price of $2,383/oz (up 24%). The
higher ounces sold reflects increased gold poured (up 3%) driven by improved
sulphide processing performance at Syama and higher production from Mako. In
2024, Syama poured 215,934 oz with production from the sulphide operation 8%
higher. This was partially offset by 12% lower production from the oxide
operation due to processing of stockpiles throughout the year and the impact
of rains on pit access and therefore ore availability. In 2024, gold poured at
Mako was 3% higher (123,935 oz) than the prior year despite
lower-than-expected grades and disruption to mining operations during the
rainy season.
Net interest and finance expenses decreased in 2024 to $3.9 million (2023:
$11.2 million) due to reduced debt levels relative to 2023. During 2024
Resolute made the final $25 million principal repayment on the Term Loan
portion of the Syndicated Facility Agreement.
Depreciation and amortisation increased to $127.7 million (2023:$81.0 million)
in 2024 due to an increase in depreciable assets as well as in amortisation
of rehabilitation assets.
Fair value movements and treasury transactions were $20.0 million in 2024
mainly due to unrealised foreign exchange losses.
Other costs of $167.6 million includes $154.8 million of indirect tax
incurred in both Mali and Senegal. This includes the Malian State Settlement
Protocol. In November 2024, Resolute signed a memorandum of understanding with
the Government of Mali, expressed as the protocol ("Protocol"). Pursuant to
the Protocol, Resolute made settlement payments totalling $159.9 million to
the Government with the final payment made on 31 December 2024.
Part of the payments (approximately $70.0 million) made were used to offset
indirect tax provisions from prior years with the remainder being expensed in
the current period.
Discussions with the Government of Mali are ongoing to clarify points of the
Protocol which may affect the indirect tax and tax expense charges for 2024.
Financial Position
Operating cash flows in 2024 were very robust at $113.1 million inclusive of
the $159.9 million of settlement payments to the Malian Government. Cash flow
was significantly higher than in 2023 and was primarily driven by stabilised
operations, a focus on reducing costs, and higher realised gold prices
throughout the year.
Cash balance at 31 December 2024 was $69.3 million. Net cash1,2 increased by
$52.3 million to $66.3 million at 31 December 2024 (31 December 2023: $14.0
million). Total borrowings at 31 December 2024 was $34.8 million which are
from overdraft facilities in Mali and Senegal. Resolute has available
liquidity2 of over $100 million from a combination of existing cash and
bullion as well as existing overdraft facilities.
In 2024, Resolute continued to invest in the business with spending on
exploration, development, property, plant, and equipment totalling $102.9
million (2023: $71.8 million) including outlays for the Syama Sulphide
Conversion Project, tailings facilities across both sites, the final principal
repayment on the debt facility, capitalised stripping costs and project
capital.
Syama Gold Mine, Mali
Total gold poured at Syama of 215,934 oz in 2024 was 2% higher than the prior
year as both sulphide and oxide plants maintained high utilisation and milled
near nameplate capacity of 3.93Mt versus 3.84Mt in 2023. As expected, the
combined ore tonnes mined decreased to 3.21Mt (vs 4.24Mt in 2023) due to
approximately 1Mt less oxide ore being mined in 2024. The sub-level cave
underground operation maintained it productivity achieving approximately 2.4Mt
of ore mining as it continues to benefit from productivity improvements from
truck fill and loader operations that were implemented in 2023.
Syama's All-In Sustaining Cost (AISC)2 for 2024 was $1,497/oz. This was 1.7%
higher than in 2023 and is partly attributed to increased royalty payments as
the base rate increased from August as the gold price exceeded $2,500/oz.
Mako Gold Mine, Senegal
2024 production from Mako was 123,935 oz at an AISC2 of $1,244/oz. Gold
production was higher than the prior year but was impacted by
lower-than-expected grades and disruption to mining operations during the
rainy season. Tonnes processed steadily increased over the year with mill
availability increasing from 93% in H1 to 97% in H2. The AISC2 decreased by 9%
due to lower mining and processing costs.
1. Net cash represents cash and bullion of $100.5 million less drawn overdraft
balances of $34.2 million. 1
2. This is a non-GAAP measure with no standard meaning under IFRS.
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2024
$'000 Note 2024 2023
Revenue from gold and silver sales 1 800,973 631,073
Costs of production 1 (392,120) (400,378)
Gross profit 408,853 230,695
Depreciation and amortisation 1 (127,658) (81,044)
Royalties 1 (59,165) (36,313)
Gross profit from operations 222,030 113,338
Interest income 1 5,018 2,406
Exploration expense 1 (9,483) (14,720)
Administration and other corporate expenses 1 (19,825) (18,450)
Share based payment expense 1 (1,104) (605)
Fair value movements and treasury transactions 1 (19,957) 22,442
Inventories net realisable value movements and obsolete consumables 1 26,065 (12,665)
Finance costs 1 (8,915) (13,582)
Indirect tax expense 1 (154,823) (5,367)
Other (expenses)/income 1 (11,629) 23,527
Profit before tax from operations 27,377 96,324
Tax expense 1 (40,657) (4,791)
(Loss)/profit for the year from continuing operations (13,280) 91,533
(Loss)/profit attributable to the parent (21,480) 65,577
Non-controlling interest 8,200 25,956
(Loss)/profit for the year (13,280) 91,533
Consolidated Statement of Comprehensive Income (continued)
for the year ended 31 December 2024
$'000 Note 2024 2023
(Loss)/profit for the year (brought forward) (13,280) 91,533
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations:
- Members of the parent (28,733) (19,764)
- Non-controlling interest 3,210 (1,989)
Changes in the realisation of financial assets at fair value through other - (865)
comprehensive income and other reserves, net of tax
Other comprehensive loss for the year, net of tax (25,523) (22,618)
Total comprehensive (loss)/gain attributable to:
Members of the parent (50,213) 44,948
Non-controlling interest 11,410 23,967
Total comprehensive (loss)/income for the year (38,803) 68,915
Earnings per share Cents Cents
Basic (loss)/gain per share 3 (1.01) 3.08
Diluted (loss)/gain per share 3 (1.01) 3.08
The above consolidated statement of comprehensive income should be read in
conjunction with the accompanying notes.
Consolidated Statement of Financial Position
for the year ended 31 December 2024
$'000 Note 2024 2023
Current assets
Cash 69,269 59,769
Other financial assets - restricted cash 1,465 1,412
Receivables 4 55,692 60,102
Inventories 6 130,610 135,417
Prepayments and other assets 12,362 11,021
Income tax asset 1,703 1,810
Total current assets 271,101 269,530
Non current assets
Receivables 4 64,496 54,456
Inventories 6 43,847 42,489
Exploration assets 13,966 6,352
Development assets 232,459 298,930
Property, plant and equipment 200,819 160,892
Right of use asset 6,980 10,106
Deferred tax asset - 3,005
Income tax asset - 7,317
Total non current assets 562,567 583,545
Total assets 833,668 853,078
Current liabilities
Payables 119,038 67,302
Financial liabilities 5 34,840 74,066
Provisions 7 84,882 66,188
Current tax liabilities 1,029 4,791
Lease liabilities 3,144 3,070
Total current liabilities 242,933 215,417
Non current liabilities
Provisions 7 92,399 85,863
Lease liabilities 6,235 9,625
Total non current liabilities 98,634 95,488
Total liabilities 341,567 310,905
Net assets 492,101 542,173
Equity attributable to equity holders of the parent
Total Contributed Equity 882,731 882,731
Reserves (68,451) (40,821)
Accumulated losses (273,244) (251,764)
Total equity attributable to equity holders of the parent 541,036 590,146
Non-controlling interest (48,935) (47,973)
Total equity 492,101 542,173
The above consolidated statement of financial position should be read in
conjunction with the accompanying notes.
Consolidated Statement of Changes in Equity
for the year ended 31 December 2024
$'000 Contributed equity Net unrealised loss reserve Convertible notes/ Share options equity reserve Non-controlling interests reserve Employee equity benefits reserve Foreign currency translation reserve Accumulated losses Non-controlling interest Total
At 1 January 2024 882,731 (9,745) 4,321 (636) 22,210 (56,971) (251,764) (47,973) 542,173
Loss for the period - - - - - - (21,480) 8,200 (13,280)
Other comprehensive loss, net of tax - - - - - (28,733) - 3,210 (25,523)
Total comprehensive loss for the period, net of tax - - - - - (28,733) (21,480) 11,410 (38,803)
Dividends declared - - - - - - - (12,373) (12,373)
Share-based payments to employees - - - - 1,104 - - - 1,104
At 31 December 2024 882,731 (9,745) 4,321 (636) 23,314 (85,704) (273,244) (48,936) 492,101
At 1 January 2023 882,731 (9,348) 4,876 (724) 20,447 (37,207) (317,341) (71,940) 471,494
Profit for the period - - - - - - 65,577 25,956 91,533
Other comprehensive loss, net of tax - (397) (555) 88 - (19,764) - (1,989) (22,618)
Total comprehensive income for the period, net of tax - (397) (555) 88 - (19,764) 65,577 23,967 68,915
Share-based payments to employees - - - - 1,763 - - - 1,763
At 31 December 2023 882,731 (9,745) 4,321 (636) 22,210 (56,971) (251,764) (47,973) 542,173
The above consolidated statement of changes in equity should be read in
conjunction with the accompanying notes.
Consolidated Cash Flow Statement
for the year ended 31 December 2024
$'000 Note 2024 2023
Cash flows from operating activities
Receipts from customers 800,973 632,444
Payments to suppliers, employees and others (511,028) (500,182)
Exploration expenditure (5,234) (4,650)
Interest paid (4,808) (12,279)
Interest received 306 519
Malian State Settlement Protocol (159,949) -
Income tax paid (7,195) (9,285)
Net cash flows from operating activities 113,065 106,567
Cash flows from investing activities
Payments for property, plant & equipment (70,579) (27,264)
Payments for development activities (23,902) (40,299)
Payments for evaluation activities (8,396) (4,234)
Proceeds from sale of asset - 3,621
Other investing activities (812) (725)
Deferred consideration from sale of Ravenswood Mine 34,392 -
Extension fee received on Ravenswood Promissory Note 849 -
Net cash flows used in investing activities (68,448) (68,901)
Cash flows from financing activities
Repayment of borrowings (25,000) (55,000)
Dividend paid to non controlling interest (6,942) -
Repayment of principal portion of lease liability (3,651) (2,354)
Drawdown from short term finance facilities (925) -
Net cash flows used in financing activities (36,518) (57,354)
Net increase/(decrease) in cash and cash equivalents 8,099 (19,688)
Cash and cash equivalents at the beginning of the year 59,769 80,873
Exchange rate adjustment 1,401 (1,416)
Cash and cash equivalents at the end of the year 69,269 59,769
The above consolidated cash flow statement should be read in conjunction with
the accompanying notes
About this Report
The preliminary final report of Resolute Mining Limited and its subsidiaries
for the year ended 31 December 2024 was authorised for issue in accordance
with a resolution of directors.
Resolute Mining Limited (the parent) is a for profit company limited by shares
incorporated and domiciled in Australia whose shares are publicly traded on
the Australian Securities Exchange and the London Stock Exchange.
Basis of Preparation
This report is based on accounts that are in the process of being audited.
This report does not include all of the notes normally included in an Annual
Financial Report. Accordingly, this report is to be read in conjunction with
the financial report for the year ended 31 December 2023 and any public
announcements made by Resolute during the reporting period in accordance with
the continuous disclosure requirements of the Corporations Act 2001.
Rounding of Amounts
The Financial Report has been prepared in United States dollars and all values
are rounded to the nearest thousand dollars ($'000) unless otherwise stated.
1.Segment revenues and expenses
For the year ended 31 December 2024 Mako (Senegal) Syama (Mali) Corp/Other (b) Total
$'000 $'000 $'000 $'000 $'000
Revenue from gold and silver sales (a) 288,339 512,634 - 800,973
Costs of production (134,700) (257,416) (4) (392,120)
Segment gross profit 153,639 255,218 (4) 408,853
Depreciation and amortisation (66,079) (60,473) (1,106) (127,658)
Royalties (14,417) (43,863) (885) (59,165)
Segment gross profit from operations 73,143 150,882 (1,995) 222,030
Interest income 933 148 3,937 5,018
Exploration expense (3,697) (5,603) (183) (9,483)
Administration and other corporate expenses - - (19,825) (19,825)
Share based payment expense - - (1,104) (1,104)
Fair value movements and treasury transactions (1,052) (15,946) (2,959) (19,957)
Inventories net realisable value movements and obsolete consumables 2,020 24,045 - 26,065
Finance costs (1,889) (5,989) (1,037) (8,915)
Other expenses - (11,629) - (11,629)
Indirect tax expense (41,205) (102,776) (10,842) (154,823)
Profit before tax from operations 28,253 33,132 (34,008) 27,377
Tax expense (16,395) (24,339) 77 (40,657)
Loss for the year from continuing operations 11,858 8,793 (33,930) (13,280)
(a) Revenue from external sales for each reportable segment is derived from
several customers.
(b) This information does not represent an operating segment as defined by
AASB 8 'Operating Segments' and forms part of the reconciliation of the
results and positions of the operating segments to the financial statements.
1.Segment revenues and expenses (continued)
For the year ended 31 December 2023 Mako (Senegal) Syama (Mali) Corp/Other (b) Total
$'000 $'000 $'000 $'000 $'000
Revenue from gold and silver sales (a) 229,505 401,568 - 631,074
Costs of production (136,235) (262,472) (1,671) (400,378)
Segment gross profit 93,270 139,097 (1,671) 230,696
Depreciation and amortisation (44,491) (34,121) (2,432) (81,044)
Royalties (11,475) (24,066) (772) (36,313)
Segment gross profit from operations 37,304 80,909 (4,874) 113,339
Interest income - 22 2,384 2,406
Exploration expense (4,455) (7,832) (2,433) (14,720)
Administration and other corporate expenses - - (18,450) (18,450)
Share based payment expense - - (605) (605)
Fair value movements and treasury transactions (4,339) 28,749 (1,968) 22,442
Inventories net realisable value movements and obsolete consumables (3,569) (9,096) - (12,665)
Finance costs (1,793) (5,062) (6,727) (13,582)
Indirect tax expense (4) (5,363) - (5,367)
Other income (24) (140) 23,691 23,527
Profit before tax from operations 23,121 82,188 (8,983) 96,324
Tax expense 15,459 (20,250) - (4,791)
Profit for the year from continuing operations 38,579 61,938 (8,983) 91,533
(a) Revenue from external sales for each reportable segment is derived from
several customers.
(b) This information does not represent an operating segment as defined by
AASB 8 'Operating Segments' and forms part of the reconciliation of the
results and positions of the operating segments to the financial statements.
2.Dividends paid or proposed
No dividend has been declared for the year ended 31 December 2024.
3.Earnings per share
$'000 31 December 2024 31 December 2023
Operating (loss)/profit after tax from continuing operation and preference (21,480) 65,578
dividends
Weighted average number of ordinary shares outstanding during the period 2,129,050,013 2,129,006,569
Earnings per share Cents Cents
(Loss)/earnings per share (1.01) 3.08
Diluted (loss)/earnings per share (1.01) 3.08
4.Receivables
31 December 2024 31 December 2023
$'000 $'000
Current
Gold price contingent receivable - 34,060
Trade receivables 1,151 8,743
Taxation receivables 54,541 17,299
Total 55,692 60,102
Non current
Other receivables 29 29
Promissory notes receivables 42,038 42,378
Taxation receivables 22,429 12,049
Total 64,496 54,456
5.Financial liabilities
31 December 2024 31 December 2023
$'000 $'000
Current
Bank overdraft 34,840 46,196
Insurance premium funding - 180
Borrowings - 25,218
Total 34,840 71,594
6.Inventories
31 December 2024 31 December 2023
$'000 $'000
Doré bars 17,405 13,340
Gold in circuit 47,808 50,837
Ore stockpiles 56,619 47,523
Consumables, spare parts and supplies 52,625 66,206
Total inventories 174,457 177,906
Less: Non current metal inventories (43,847) (42,489)
Current portion of inventories 130,610 135,417
7.Provisions
31 December 2024 31 December 2023
$'000 $'000
Current
Site restoration 2,215 626
Employee entitlements 10,639 5,744
Dividend payable 5,567 136
Tax provisions 64,071 57,021
Other provisions 2,390 2,661
Total 84,882 66,188
Non current
Site restoration 92,204 85,570
Employee entitlements 195 293
Total 92,399 85,863
8.Subsequent events
There were no subsequent events post the balance sheet date.
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