REG - Resolute Mining Ltd - December 2024 Quarterly Activities Report
30/01/2025 07:00
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RNS Number : 2656V Resolute Mining Limited 30 January 2025
30 January 2025
Q4 2024 & Full Year 2024 Activities Report
For the Quarter ending 31 December 2024 ('Q4 2024', 'December Quarter' or 'the
quarter')
2024 Highlights
• Two lost-time injuries (LTIs) recorded at Mako and Syama in October
and November respectively; TRIFR for year-end of 2.11, compared to 1.71 at the
end of 2023
• Full-year group gold production of 340 koz (FY2023: 331 koz) slightly
below guidance (345 - 365 koz) due to lower-than-expected production at Mako;
Q4 2024 gold poured of 87,687 oz (Q3 2024: 85,043 oz) driven by a strong
quarter from Syama
• Group 2024 All-In Sustaining Costs (AISC) of $1,476/oz (2023:
1,470/oz) is above guidance ($1,300 - 1,400/oz) due to lower gold production
at Mako and higher costs in Mali mainly due to changes in Mining Code; Q4 2024
AISC of $1,568/oz (Q3 2024: $1,452/oz)
• 2024 Capital Expenditure (excluding exploration) of $96.3 million
(2023: $64.2 million) consisting of $67.1 million non-sustaining including
$31.9 million for the Syama Sulphide Conversion Project (SSCP) and $29.2
million sustaining; capital expenditure was below guidance ($105 - 130
million) with deferral of c. $24 million for the SSCP. Q4 capital expenditure
of $25.3 million(Q3 2024: $26.6 million)
• 2024 exploration spend of $20.0 million (2023: $18.1 million)
consisting of $14.5 million of capital expenditure and $5.5 million of
expenses was above guidance ($16-18 million) as drilling at Tomboronkoto and
Bantaco in Senegal was expedited
• Unaudited 2024 revenue of approximately $800 million ($631 million in
2023): an average realised gold price of $2,383/oz versus 2023 of $1,920/oz
• Full-year 2024 unaudited EBITDA of approximately $310 million (FY2023:
$161 million) driven by increased production and higher average realised gold
prices
• Robust 2024 Operating cash flow generation of over $200 million
(operating cash flow, after capital expenditure, exploration and working
capital)
• Net cash of $66.3 million ($145.6 million in Q3 2024), including cash
and bullion of $100.5 million and drawn overdraft balances of $34.2 million.
Reduction in cash reflects the settlement payments in Q4 totalling $160
million to the Government of Mali
2025 Guidance
• 2025 group production guidance of 275,000 - 300,000 oz at a Group AISC of $1,650 - 1,750/oz
• 2025 capital expenditure guidance of $109 - 126 million split between
Syama, Mako and Exploration (including Tomboronkoto) of $85-95 million, $4-6
million and $20-25 million respectively
• Mako guidance of 80,000 - 90,000 oz at an AISC $1,300 - 1,400/oz; open
pit mining ceasing at the end of in June and gold production is expected to be
weighed towards H1 (c. 60%)
• Syama guidance of 195,000 - 210,000 oz at an AISC $1,700 - 1,800/oz;
operating costs impacted by the 2023 Mining Code (by c. $250/oz increase
versus normalized levels)
• Completion of the SSCP revised to H1 2026 to optimise near term cash
flows and exploit higher return oxide material over 2025
Note: Unless otherwise stated, all dollar figures are United States dollars
($).
Resolute Mining Limited ABN 39 097 088 689
Level 17, 2 The Esplanade, Perth, Western Australia 6000 T+61 8 9261 6100
E contact@rml.com.au (mailto:contact@rml.com.au)
Resolute Mining Limited (Resolute, the Company or the Group) (ASX/LSE: RSG),
is pleased to present its Quarterly Activities Report for the period ended 31
December 2024.
Chris Eger, Acting Chief Executive Officer, commented,
"From an operational and cash generation perspective 2024 was one of the
strongest years Resolute has had in recent times. The operations at Syama
continue to perform extremely well due to the improvements that have been put
in place over the last several years. The Mako operation continued to generate
substantial cash flows despite a rain-impacted H2 and lower than expected
grades. Moving into 2025 we expect both operations to continue generating
strong cash flow albeit at lower production levels due to the end of mining at
Mako in Q2 and the commencement of stockpile processing.
Beyond this strong 2024 operating performance, in November Resolute signed a
memorandum of understanding with the Government of Mali, expressed as the
protocol ("Protocol"). While the circumstances in Q4 were challenging to
Resolute I am grateful to all our employees who have shown tremendous
resilience and commitment to the business.
The Protocol sets the framework for further detailed discussions with the
Government regarding the long-term future of Resolute's operations in Mali
including migration of the Company's assets to the 2023 Mining Code. As noted
in our 2025 guidance, together with increasing royalty rates we estimate this
will add around $250 per ounce to Syama's AISC. Despite the challenges faced,
Resolute remains focused on continuing to deliver on the significant potential
of the Syama Gold Mine and is committed to working collaboratively with the
Malian Government together with all its stakeholders.
On our exploration activities, there was significant progress across the Group
during 2024. The growing Mineral Resource at Tomboronkoto in Senegal was
particularly encouraging and this remains a key satellite deposit that has the
potential of extending the life of Mako. We are also optimistic about the
initial Mineral Resource Estimate for the Mansala Prospect in Guinea with over
340koz of gold being identified. Another country was also added to the
Company's portfolio of assets with the commencement of drilling at the La Debo
Project in the Ivory Coast.
For 2025 we expect group production to be between 275,000 - 300,000 oz of gold
at between $1,650 - 1,750/oz AISC. The lower production levels forecast in
2025 are a result of lower production from Mako as open pit mining stops at
the end of H1 and lower grade stockpile material starts to be processed. In Q4
we completed a strategic review for the Group, and it was decided to revise
the completion date of the SSCP project from 2025 to 2026. Based on the amount
of oxide material remaining, we believe it is more beneficial to complete the
processing of this material before completing the SSCP. As a result, the
business is expected to produce substantially more cash flow in 2025 than
previously forecasted. At the same time, our 2025 cost guidance has been
significantly impacted as a result of the requirement to adopt the 2023 Mining
Code.
Our key focus for 2025 is to i) continue delivering operationally across the
Group, ii) progress a near- mine satellite resource to extend Mako, iii)
continue to create value in Guinea and the Ivory Coast and
iv) actively manage an increasingly complicated political landscape."
Webcast and Conference Call
Resolute will host a conference call for investors, analysts, and media on 30
January 2025, to discuss the Company's Quarterly Activities Report for the
period ending 31 December 2024. This call will conclude with a
question-and-answer session.
Conference Call: 8:00pm (AEDT, Sydney) / 9:00am (GMT, London)
Webcast registration link: https://brrmedia.news/RSG_Q42024
(https://brrmedia.news/RSG_Q42024)
Those wishing to ask questions as part of the Q&A should use the
conference call facility (please join 5 mins prior to the start time)
Conference call details:
Dial in number(s) UK-Wide: +44 (0) 33 0551 0200
USA Local: +1 786 697 3501
South Africa Toll Free: 0 800 980 512
Sydney: +61 (0) 2 8014 9383
Password (if prompted) Quote Resolute Mining Q4 2024when prompted by the operator
A presentation, to accompany the call, will be available for download on the
Company's website: https://www.rml.com.au/investors/presentations/
(https://www.rml.com.au/investors/presentations/) .
(https://www.rml.com.au/investors/presentations/)
Operations Overview
December 2024 September 2024 December 2023 Full Year 2024 Full Year 2023
Quarter Quarter Quarter
Group Summary Units
Mining
Ore Mined t 1,583,820 1,368,297 1,735,284 6,274,965 6,608,501
Mined Grade g/t 1.93 2.06 2.02 2.06 2.08
Processing
Ore Processed t 1,651,031 1,529,134 1,566,619 6,156,602 5,962,245
Processed Grade g/t 1.93 2.00 1.87 2.01 2.06
Recovery % 85 85 85 86 85
Gold Poured oz 87,687 85,043 80,307 339,869 330,994
Sales
Gold Sold oz 83,145 95,242 79,480 335,708 329,061
Average Realised Price $/oz 2,659 2,493 1,954 2,383 1,920
Financials
Total Capital Expenditure $m 25.3 26.6 16.5 96.3 64.2
Net Cash/(Debt) $m 66.3 145.6 14.0 66.3 14.0
AISC $/oz 1,568 1,452 1,480 1,476 1,470
Table 1: Resolute Group Operational Performance Summary
Environmental and Social Update
Resolute's TRIF as of 31 December 2024 was 2.11 including two Lost Time
Injuries, the first of which was reported by Mako in October 2024 after 1,119
LTI-free days, and the second a month later at Syama. This compares to the
International Council on Mining and Metals (ICMM) mines average of 2.6 in
2023. Resolute is committed to creating an injury free workplace with both
sites successfully rolling out a behaviour-based safety program and hazard
identification program.
Resolute recorded no significant environmental incidents, regulatory
non-compliances, or grievances in 2024 and successfully maintained ISO 14001
& ISO 45001 certification. External audits were completed against the
World Gold Council's Responsible Gold Mining Principles, the Conflict Free
Gold Standard and all operating Tailings Facilities were reviewed by a Senior
Independent Technical Reviewer with observations incorporated into existing
improvement plans.
The Tomboronkoto Environmental & Social Impact Assessment surveys are
ongoing and Resolute continues to liaise with relevant Government Authorities
in relation to attaining approvals to support extending the operational life
of Mako.
Mali Overview
Over the past couple of years Resolute, along with other companies within the
mining sector, has been meeting with representatives of the Malian Government
to discuss the new 2023 Mining Code as well as settlements of historical
fiscal and other claims.
In November 2024 three employees, including the Company's CEO at the time,
were in Bamako to hold discussions with the mining and tax authorities
regarding general activities related to Resolute's in- country business
practices, and to progress open claims made against the Company. Resolute was
asked to migrate to the 2023 Mining Code despite having a Mining Convention
for its Syama and Tabakoroni licences until 2029. On 8 November 2024 following
the conclusion of these meetings the three Resolute employees were
unexpectedly detained. After further discussions with Malian Government
representatives, on 18 November 2024, Resolute executed a memorandum of
understanding expressed as a protocol (the "Protocol"), along similar lines to
those agreed with other mining companies in Mali. The three employees were
released on 21 November 2024.
The signing of the Protocol has set the framework for continued discussions
with the Malian Government regarding the long-term future of the operations in
Mali, including migration of the Company's assets in Mali to the 2023 Mining
Code and maintaining the safety of the Company's employees. The Protocol also
provides that all outstanding claims prior to 31 December 2023 by the
Government against the Company, including those related to tax, customs
levies, maintenance and management of offshore accounts are settled. Pursuant
to the Protocol, Resolute made settlement payments totalling US$160 million to
the Government with the final payment made on 31 December 2024.
Discussions with the Government of Mali are ongoing to clarify points of the
Protocol and Resolute is continuing to assess its full implication to the
Company's activities in Mali. Throughout the discussions, and since the
settlement of the Protocol, normal operations have been maintained at Syama.
Resolute believes the settlement of the Protocol should secure the future of,
and create certainty for, the Syama Gold Mine and all its employees. The
Company remains proactive in its working relationship with the Malian
Government and remains committed to Mali and its other stakeholders.
As a result of these developments and the significant cash outflows, mine
sequencing at Syama has been optimised for near and medium-term cash
generation while the Company assesses its longer-term capital plans. As a
result, the completion date for the SSCP project has been deferred from 2025
to 2026 given the continued availability of existing oxide resources in 2025.
Mali Mining Code
Resolute continues to engage with the Government of Mali with respect to the
Protocol signed on the 18 November 2024. As part of this, in 2025 the Syama
Mine will migrate to the 2023 Mining Code.
The overall impact of the 2023 Mining Code is expected to increase AISC by
approximately $250/oz from historical targeted AISC levels of $1,450/oz.
Key changes of the Mining Code include:
• Increase in corporate income tax from 25% to 30%
• Removal of fuel duty exoneration (equivalent to approximately
$10-15m per annum of additional operating costs)
• The Company's subsidiary will continue to hold an 80% interest in
Syama as an ordinary interest. The new structure will see the Government of
Mali's stake held via a 20% preference share interest
• Contributions to new local development funds (Energy, Hydraulic
and Transport Infrastructure Construction Fund, Geological Research, Capacity
Building and Training Fund and the Mining fund for local development)
totalling 3.75% of turnover
• Royalties to the Government are based on the sliding scale
outlined in the table below:
Spot Gold Price per Ounce Total Royalty Rate
Less than or equal to US$1,100 6%
Greater than US$1,000 and less than or equal to US$1,300 6.5%
Greater than US$1,300 and less than or equal to US$1,600 7%
Greater than US$1,600 and less than or equal to US$2,000 9%
Greater than US$2,000 and less than or equal to US$2,500 10.5%
Greater than US$2,500 any increase of US$400 the rate of royalty increased by Rate to be determined
0.5%
Table 2: Mali 2023 Mining Code Royalty Rates
Resolute understands that at the current gold spot prices between US$2,500 -
2,900/oz the total royalty rate due in Mali is 11%.
Syama, Mali
Syama gold production for the quarter was 58,884oz at an AISC of $1,525/oz.
The operational performance is set out in the table below.
December 2024 September 2024 December 2023 Full Year 2024 Full Year 2023
Quarter Quarter Quarter
Summary Units
Mining Sulphide
Ore Mined t 562,996 554,221 668,663 2,400,714 2,396,913
Mined Grade g/t 2.50 2.50 2.45 2.56 2.62
Oxide
Ore Mined t 248,082 111,098 526,993 806,036 1,843,780
Mined Grade g/t 1.58 1.40 1.59 1.58 1.64
Processing Sulphide
Ore Processed t 661,208 622,620 603,297 2,404,832 2,264,443
Processed Grade g/t 2.55 2.63 2.39 2.64 2.65
Recovery % 77 78 77 79 78
Gold Poured oz 43,863 42,878 36,720 163,379 151,256
Gold Sold oz 42,247 47,776 36,300 162,032 150,137
Oxide
Ore Processed t 417,768 352,933 429,283 1,522,976 1,579,581
Processed Grade g/t 1.27 1.06 1.29 1.24 1.42
Recovery % 88 84 87 86 84
Gold Poured oz 15,021 10,113 15,170 52,555 59,891
Gold Sold oz 15,021 10,113 15,170 52,555 58,974
Cost Syama combined
Total Capital Expenditure $m 22.5 22.6 8.3 81.1 36.4
AISC $/oz 1,525 1,533 1,415 1,497 1,473
Table 3: Syama Production and Cost Summary
2024 was a strong year at both the oxide and sulphide operations. 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 had another productive year in 2024 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.
During Q4 the mined and milled tonnages were higher for both oxides and
sulphides. The near doubling in tonnage of oxide ore mined in Q4 was due to
improved access to open pit production areas after the rainy season. Sulphide
gold production was similar to the prior quarter as a slightly higher sulphide
milling was offset by a 3% lower head grade due to increased feed from
stockpiles. Oxide gold production in Q4 was 49% higher than Q3 due to more ore
tonnes mined at a higher grade from the Samogo and Tellem pits which resulted
in a higher head grade at the oxide plant.
Yearly capital expenditure of $81.1 million including $31.9 million of
expenditure on the SSCP project as well as $16.0 million of capitalised waste
and $33.2 million of capital projects inclusive of $8.4 million on new
underground equipment and $7.6 million spent on TSF lifts. During Q4 2024
capital expenditure was $22.5 million consisting of $18.1 million of capital
items, mainly made up of items relating to the SSCP and other mechanical
parts. Additionally, the sulphide operation incurred $4.4 million of
capitalised waste.
The approximate full-year AISC at Syama of $1,497/oz for 2024 was 1.6% higher
than in 2023 ($1,473/oz). The increase in AISC in 2024 is partly attributed to
increased royalty payments as the base rate increased from August as the gold
price exceeded $2,500/oz. The increase in royalty rate in H2 2024 added
approximately $70/oz to the full-year 2024 AISC. Q4 2024 AISC decreased from
$1,533/oz to $1,525/oz due to higher gold production partially offsetting the
increased royalty rates which are approximately $100/oz higher than originally
anticipated in 2024.
Mako, Senegal
Mako gold production for the quarter was 28,803oz at an AISC of $1,350oz. The
operational performance for Mako is set out in the table below.
December 2024 September 2024 December 2023 Full Year 2024 Full Year 2023
Quarter Quarter Quarter
Summary Units
Mining
Ore Mined t 772,742 702,978 539,628 3,068,215 2,367,808
Mined Grade g/t 1.63 1.82 1.89 1.80 1.89
Processing
Ore Processed t 572,055 553,581 534,039 2,228,793 2,118,221
Processed Grade g/t 1.69 1.89 1.74 1.86 1.91
Recovery % 92 93 93 93 92
Gold Poured oz 28,803 32,052 28,417 123,935 119,847
Gold Sold oz 25,877 37,353 28,010 121,121 119,950
Financials
Total Capital Expenditure $m 2.8 4.0 8.2 15.2 27.8
AISC $/oz 1,350 1,125 1,483 1,244 1,373
Table 4: Mako Production and Cost Summary
The 2024 gold production of 123,935 oz was higher than the prior year albeit
below guidance predominantly due to lower-than-expected grades and disruption
to mining operations as the pit flooded during the abnormally heavy rainy
season.
During the final quarter, accelerated mining was continued to ensure mining
activities were complete before the 2025 rainy season. The mined ore grade in
Q4 was lower than expected and was partly impacted by continued high water
levels in the pit during the first half of October. This forced a change in
mining sequence to mine the upper benches with lower mineralization impacting
mined and head grades. The average mine grade remains impacted by the negative
grade reconciliation from the grade control model noted in Q3. The reduced
mine grade caused a lower head grade at the mill resulting in Q4 gold
production that was approximately 10% lower than the prior quarter.
2024 capital expenditure of $15.2 million was 45% lower than in 2023 primarily
due to significantly less waste stripping. In Q4 capital expenditure was $2.8
million (vs $4.0 million in Q3) consisting of $0.8 million and $2.0 million of
non-sustaining and sustaining respectively. Expenditure included critical
parts for the power generator, pumping equipment that will be transferred to
Syama, and the final Tailings Management Facility raise.
The approximate full-year 2024 AISC of $1,244/oz was above guidance ($1,100 -
1,200/oz) due to lower production levels.
Exploration
Total Group exploration expenditure in Q4 was $3.4 million, with drilling
programs continuing in Senegal, Mali and Guinea throughout the quarter. This
was made up of $2.7 million of capital mainly focused on drilling at Syama
North Sulphide, Tomboronkoto, Bantaco and commencement of drilling in the
Ivory Coast. $0.7 million of exploration expense was mainly spent in Guinea on
the Mansala Prospect ($0.2 million), and in Senegal on the Sangola project
($0.2 million).
The 2024 total group exploration expenditure (capital and expensed) of $20.0
million exceeded the original full year budget of $16-18 million as drill
programmes at Tomboronkoto and Bantaco were expedited.
Senegal Exploration
On 12 September 2024 an updated Mineral Resource Estimate for Tomboronkoto was
published. Total contained gold at Tomboronkoto is currently 343 koz grading
2.1g/t Au at 1g/t cut off or 571 koz grading
1.1 g/t at 0.5 g/t cut-off.
The Tomboronkoto deposit is drilled to 150m below surface and is open down
dip. Drilling during Q4 2024 targeted the extensions of the resource between
150m and 200m below surface. Preliminary results suggest that the
mineralisation is continuous down dip. Drilling at Tomboronkoto will continue
in 2025 in order to advance studies.
Exploration drilling at Bantaco continued throughout Q4 2024 with multiple
rigs testing the Bantaco prospect. Mineralisation is hosted within deformed
clastic sediments and andesite and volcano-sediment units and associated with
NE trending shear zones with pyrite and quartz veining. Diamond drilling was
undertaken to improve the geological knowledge of the prospect area.
Structural measurements confirmed NE trending, subvertical to strongly SE
dipping gold mineralisation. Drilling programs will continue at Bantaco in
2025.
Mali Exploration
Exploration programs in Mali during Q4 concentrated on sulphide drilling at
Syama North and oxide drilling on the Finkolo Exploitation permit.
An updated Mineral Resource Estimate for Syama North was completed in Q4 with
the model used for the basis of Life of Mine studies and the 2024 Reserves and
Resources Statement.
Reverse Circulation drilling of satellite Oxide resources on the Finkolo
Exploitation Permit continued in Q4. Mining studies were carried out on the
satellite oxide resources at Finkolo such as Zozani in Q4 to ascertain the
economics of the prospects.
Guinea Exploration
On 12 September 2024 an initial Mineral Resource of 6.6 Mt at a grade of
1.6g/t Au for a total of 343 koz of gold using a 1g/t cut off Au has been
estimated at Mansala.
Ivory Coast Exploration
In Q4 2024, Resolute signed a JV agreement with JOFEMA Holdings Limited, a
local Ivorian company, for the La Debo project located in southwestern Ivory
Coast, approximately 280 km west of Abidjan. The JV structure is a standard
multi-stage earn-in with Resolute being able to earn up to 100% of the
Project.
In 2016, an initial Preliminary Economic Assessment established a NI 43-101
compliant Inferred Mineral Resource of 400 koz at a grade of 1.3 g/t Au (at
0.3 g/t cut-off). After subsequent deeper DD drilling in 2022, the resource
was increased but was not reported as NI 43-101 compliant.
Resolute commenced drilling at La Debo in December 2024 with a combined RC and
diamond drilling program focussed on increasing the Mineral Resources of the
La Debo prospects. The drilling is continuing in 2025 with the aim to expand
the Mineral Resources.
Syama Sulphide Conversion Project
In 2023 the Company commenced the construction of the SSCP. The Project will
increase overall sulphide processing capacity at Syama by 60% from 2.4Mtpa to
4.0Mtpa by modifying the oxide comminution circuit and upgrading the roaster.
The Project is important for the long-term future of Syama as oxide resources
deplete and the ore sources become predominantly sulphide. Importantly, the
SSCP will retain operational flexibility by maintaining the ability to switch
back to treat oxide ore.
After revision of available oxides and prioritisation of cash generation, the
Company has taken the decision to defer the completion of the SSCP to Q2 2026
once the oxides have been depleted. The revised schedule optimises nearer-term
cash flows by processing the remaining oxides in the Paysans and Tellem pits
throughout 2025 before starting to treat sulphide material from Syama North.
It is expected that the first two years of sulphide material from Syama north
will have a grade of approximately 2.1 g/t and strip of 10:1. The plan is to
start to introduce sulphide ore into the SSCP plant once the flotation circuit
has been commissioned from Q1 2026. Throughput of sulphide ore will be ramped
up from Q2 2026 with sources being a combination of sulphide stockpile
material and Syama North ore.
Since the beginning of construction, the Project has no LTIs after
approximately 453,000 person-hours worked until the end of 2024. The total
capital expenditure in 2024 on the SSCP was $31.9 million (below the $55
million guidance).
Construction activities progressed well in 2024 with the project remaining on
budget and on track based on the new schedule. Key activities in 2024
included:
- Key items procurement was effectively completed
- All the critical and long lead items arrived on site and most
mechanical equipment have been delivered
- Long lead items delivered to site including the ball mill, two
crushers and flotation cells
- Shipment of the electrical and instrumentation equipment is in
progress and on track
- Majority of the civils work was completed
- Approximately 65% of the steel work was erected and both the
crushers were installed
In 2025 we are forecasting $30m of capital expenditure on the SSCP. This will
be used to continue construction of the CCIL circuit, re-crushing circuit and
flotation plant. The plan for 2025 is to complete all civil works for the
entire SSCP and roaster circuit. The electrical, control and instrumentation
(EC&I) installation contractor was mobilised in December 2024 and will
start with installation early in January 2025. In Q4 2025 construction of the
remaining parts of the SSCP plant (ball mill, secondary crusher, CCIL tanks,
stockpile tunnel, conveyors, roaster upgrades) will commence.
In 2026 the remaining $35m of capital expenditure is forecast. The ball mill
installation and completion of the secondary crusher circuit and stockpile
area is planned for H1 2026.
Figure 1: Ball mill and flotation areas in December under construction. The
flotation circuit is now 50% complete, while the ball mill areas is 30%
complete
Figure 3: The milling area substation is 15% complete
Financial Highlights and Balance Sheet Activities
Annual Cash and Bullion Movements (US$ million)
Chart 1: 2024 Cash and Bullion Movements
Unaudited 2024 revenue of approximately $800 million (vs $630 million in 2023)
with 336 koz of gold sold at an average price of approximately $2,383/oz
(2023: $1,920/oz). 2024 revenue is higher due to higher gold sales and a 24%
higher gold price.
2024 EBITDA of approximately $310 million (vs $161 million in 2023) driven by
higher gold prices.
Operating cash flows were very robust at approximately $250m driven by
stabilized operations and higher realised gold prices throughout the year. The
operating cash flow was used to pay the final $25 million of principal
repayment of the syndicated debt facilities, increased capex due to SSCP
construction and $160 million of settlement payments to the Malian Government
in Q4. Cash flows in 2024 were boosted by approximately $33.5 million of
receipts from the Ravenswood promissory note. Other financing costs mainly
comprise of $25 million of debt repayments made in Q1.
Net Debt Summary
Net cash at 31 December 2024 was $66.3 million, decreasing from $145.6 million
net cash position at 30 September 2024. Total borrowings at 31 December 2024
were $34.2 million (Q3 2024: $42.5 million) which are from in-country
overdraft facilities in Mali and Senegal. Over Q4 cash and bullion decreased
from $188 million to $101 million as at 31 December 2024.
During the quarter Resolute made three instalments totalling $160 million as
part of the settlement with the Government of Mali. The last of these payments
was made on 31 December 2024 and were made from existing cash resources.
Liquidity Initiatives
Considering recent developments in Mali, Resolute has revisited its financing
initiatives. The previously announced undrawn senior debt facility signed in
September 2024 is no longer available as the terms and conditions have been
breached as a result of transitioning to the 2023 Mining Code. The primary
purpose of the facility was to provide increased flexibility to explore growth
opportunities. However, Resolute has maintained its financial flexibility by
increasing liquidity available to the Group through implementation of
additional banking facilities and working capital initiatives.
Specifically, at the end of Q3 2024 Resolute had access to approximately $55
million of financing facilities. This is being increased and will provide
available liquidity of over $100 million. The increase is due to a combination
of increasing existing capacity as well as through the introduction of
facilities with new banks.
In 2025, Resolute expects to generate strong cash at both sites and is
expected to continue strengthening its already healthy balance sheet.
2025 Guidance
For 2025 Resolute expects total Group gold production of 275,000 - 300,000 oz
at an AISC of $1,650 - 1,750/oz. Group total capital expenditure is expected
to be between $109 - 126 million in 2025 including exploration expenditure.
Administration and other corporate expenditure are expected at approximately
$25m.
Gold Production (oz) AISC ($/oz)
Syama 195,000 - 210,000 1,700 - 1,800
Mako 80,000 - 90,000 1,300 - 1,400
Total1 275,000 - 300,000 1,650 - 1,750
(1)includes corporate costs
Table 5: Summary of 2025 production and cost guidance
(US$ million) Non- Sustaining Total
Sustaining
Syama 45 - 50 40 - 45 85 - 95
Mako - 4 - 6 4 - 6
Exploration (including Tomboronkoto) 20-25 - 20-25
Total 65-75 44-51 109 - 126
Table 5: Summary of 2025 capital expenditure guidance
Syama Guidance
The Company is providing 2025 production guidance of 195,000 - 210,000 oz.
Production for Syama sulphide and oxide is expected to be 150,000 - 160,000 oz
and 45,000 - 50,000 oz respectively.
Previous guidance anticipated the completion of the SSCP in 2025 with the site
focusing on processing the majority of ore from sulphide material. Initial
analysis would have forecasted production around 210 koz under this scenario
for 2025. However, after a strategic review of operating scenarios based on
additional oxide materials available at Syama the Company has made the
decision to defer the completion of the SSCP to 2026 until most of the
remaining oxide materials are processed. The resulting impact was a
considerable increase in near term cash flows while maintaining similar
production levels.
2025 AISC guidance for Syama is $1,700 - 1,800/oz and is mainly impacted by
the increase in operating costs associated with the transition to the 2023
Mali Mining Code which the Company estimates equate to an additional ~$250/oz
or around $175/oz at a Group level.
Total capital expenditure at Syama in 2025 is expected to be $85 - 95 million.
This comprises approximately $30 million for the SSCP (non-sustaining) with
the remaining capex relating to fleet replacement, TSF lifts and waste
stripping.
Mako Guidance
Production at Mako for 2025 is expected to be 80,000 - 90,000 oz at an AISC of
$1,300 - 1,400/oz. Gold production is expected to be weighted towards H1
(approximately 60%) as the remaining ore from the open pit is mined and
processed. Stockpile processing is due to commence from July onwards and is
expected to produce approximately 4-5 koz per month until all stockpile
material is depleted, terminating in H2 2027.
Total capital expenditure in 2025 at Mako is expected to be $4 - 6 million
comprised of general sustaining expenditure. Resolute is working towards
extending the life at Mako through the development of the Tomboronkoto and
Bantaco satellite deposits.
Exploration Guidance
The overall 2025 exploration budget for the Group is $20-25 million with the
majority being capital expenditure.
In Mali, approximately $3 million is allocated for continued exploration of
oxides and sulphides at Syama North and exploration on the Finkolo Permit to
the south.
In Senegal, approximately $9 million has been budgeted for exploration in 2025
with a focus on increasing Mineral Resources at Tomboronkoto, Bantaco and
Laminia. At Tomboronkoto drilling will be undertaken to increase the open pit
Mineral Resources which are the basis for ongoing studies. A drilling program
for geotechnical and metallurgical testwork will also take place. At Bantaco,
existing drill results returned in Q4 will be followed up by intensive
drilling programs in 2025. The remaining budget will be used across other
projects in Senegal.
In Cote d'Ivoire, a total of $3 million is budgeted for 2025. The primary aim
for 2025 is to increase the Mineral Resources for the La Debo group of
prospects. Drilling will largely be carried out during H1 2025.
Between $4 - 6 million will be allocated to various studies at Tomboronkoto
including village resettlement, tailings storage facilities and engineering
studies.
The proposed approximate timeline for Tomboronkoto is shown below. Resolute is
committed to advancing the Project as efficiently and responsibly as possible
but notes that there may be delays, unforeseen or otherwise, that could
potentially impact the proposed timeline. The current estimate for development
capital expenditure for the Tomboronkoto Project is between $80-100 million
primarily consisting of village relocation/resettlement, road diversion, new
TSF construction and plant modifications.
Near-Term Perspectives
Following the $160m of payments made to the Government of Mali during Q4 2024,
the near-term focus of the business has turned to maximizing cash flows across
the Group while maintaining operational flexibility. As a result, the schedule
for the SSCP has been optimised to maximize the return from the remaining
available oxide ore over the next 12-18 months. As the SSCP ramps up from H1
2026 the expectation is for Syama gold production to gradually increase to a
run rate of 205 - 215koz at a similar level of AISC to that expected in 2025.
Based on current operating models, production levels would remain in this
range as a result of processing high grade material from Syama North offset by
slightly decreasing grades forecasted in the existing underground operations.
Additional studies are ongoing to review alternative scenarios that could
increase the value and scale of the overall Syama operation in the medium to
longer term.
Mako production is expected to decrease as mining ceases at the end of H1 2025
with production transitioning to the processing of stockpile material grading
c. 0.9 g/t. As a result, from the start of 2026 to H2 2027 we forecast Mako to
produce between 4-5 koz per month, although variations in monthly production
are possible due to stockpile grade variations. We expect this level of
production to continue to generate strong cash flows given there will be no
associated mining costs from H2 2025 onwards.
About Resolute
Resolute Mining (ASX/LSE: RSG) is an African gold miner, developer, and
explorer with more than 30 years of experience across Australia and Africa. To
date the Company has produced over nine million ounces of gold. It currently
operates the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal.
Resolute's gold production and cost guidance for 2025 is 275,000 - 300,000 oz
at an AISC of $1,650 - 1,750/oz.
Through all its activities, sustainability is the core value at Resolute. This
means that protecting the environment, providing a safe and productive working
environment for employees, uplifting host communities, and practicing good
corporate governance are non-negotiable priorities. Resolute's commitment to
sustainability and good corporate citizenship has been cemented through its
adoption of and adherence to the Responsible Gold Mining Principles (RGMPs).
This framework, which sets out clear expectations for consumers, investors,
and the gold supply chain as to what constitutes responsible gold mining, is
an initiative of the World Gold Council of which Resolute has been a full
member since 2017. The Company was audited as conformant with these RGMPs in
2024.
Appendix
December 2024 Quarter Production and Costs (unaudited)
December 2024 - Quarter to date Units Syama Sulphide Syama Oxide Syama Mako Group Total
UG Lateral Development m 1,282 - 1,282 - 1,282
UG Vertical Development m - - - - -
Total UG Development m 1,282 - 1,282 - 1,282
UG Ore Mined t 562,996 - 562,996 - 562,996
UG Grade Mined g/t 2.50 - 2.50 - 2.50
OP Operating Waste BCM - 143,080 143,080 638,553 781,613
OP Ore Mined BCM - 1,251,929 1,251,929 227,442 1,529,351
OP Grade Mined g/t - 1.58 1.58 1.63 1.59
Total Ore Mined t 562,996 248,082 811,078 772,742 1,583,820
Total Tonnes Processed t 661,208 417,768 1,078,976 572,055 1,651,031
Grade Processed g/t 2.55 1.27 2.05 1.69 1.93
Recovery % 77 88 81 92 85
Gold Recovered oz 41,849 14,940 56,789 28,579 85,368
Gold in Circuit Drawdown/(Addition) oz 2,014 81 2,095 224 2,319
Gold Produced (Poured) oz 43,863 15,021 58,884 28,803 87,687
Gold Bullion in Metal Account Movement (Increase)/Decrease oz (1,616) - (1,616) (2,926) (4,542)
Gold Sold oz 42,247 15,021 57,268 25,877 83,145
Achieved Gold Price $/oz - - - - 2,659
Cost Summary
Mining $/oz 461 481 466 477 469
Processing $/oz 497 619 528 438 499
Site Administration $/oz 135 232 160 172 164
Site Operating Costs $/oz 1,093 1,332 1,154 1,087 1,132
Royalties $/oz 283 283 283 119 233
By-Product Credits + Corp Admin $/oz (2) (2) (2) - 88
Total Cash Operating Costs $/oz 1,374 1,613 1,435 1,206 1,453
Sustaining Capital + Others $/oz 61 186 93 69 92
Inventory Adjustments $/oz (43) 115 (3) 75 23
All-In Sustaining Cost (AISC) AISC is calculated on gold produced (poured) $/oz
1,392 1,914 1,525 1,350 1,568
Year-to-date 2024 Production and Costs (unaudited)
Syama Sulphide Syama Oxide Syama Total Group Total
2024 - Year to date Units Mako
UG Lateral Development m 5,068 - 5,068 - 5,068
UG Vertical Development m 40 - 40 - 40
Total UG Development m 5,107 - 5,107 - 5,107
UG Ore Mined t 2,400,714 - 2,400,714 - 2,400,714
UG Grade Mined g/t 2.56 - 2.56 - 2.56
OP Operating Waste BCM - 451,158 451,158 4,400,428 4,851,586
OP Ore Mined BCM - 3,429,330 3,429,330 1,108,690 4,538,020
OP Grade Mined g/t - 1.58 1.58 1.80 1.63
Total Ore Mined t 2,400,714 806,036 3,206,750 3,068,215 6,274,965
Total Tonnes Processed t 2,404,832 1,522,976 3,927,808 2,228,793 6,156,602
Grade Processed g/t 2.64 1.24 2.10 1.86 2.01
Recovery % 79 86 81 93 86
Gold Recovered oz 160,347 52,338 212,685 123,732 336,417
Gold in Circuit Drawdown/(Addition) oz 3,032 217 3,249 203 3,452
Gold Produced (Poured) oz 163,379 52,555 215,934 123,935 339,869
Gold Bullion in Metal Account Movement (Increase)/Decrease oz (1,347) - (1,347) (2,814) (4,161)
Gold Sold oz 162,032 52,555 214,587 121,121 335,708
Achieved Gold Price $/oz - - - - 2,383
Cost Summary
Mining $/oz 474 414 460 534 487
Processing $/oz 507 708 556 401 499
Site Administration $/oz 138 254 166 151 161
Site Operating Costs $/oz 1,119 1,376 1,182 1,086 1,147
Royalties $/oz 205 197 203 116 174
By-Product Credits + Corp Admin $/oz (2) (2) (2) - 66
Total Cash Operating Costs $/oz 1,322 1,571 1,383 1,202 1,387
Sustaining Capital + Others $/oz 104 162 118 30 87
Inventory Adjustments $/oz (52) 147 (4) 12 2
All-In Sustaining Cost (AISC) $/oz
AISC is calculated on gold produced (poured) 1,374 1,880 1,497 1,244 1,476
ASX Listing Rule 5.23 Mineral Resources
This announcement contains estimates of Resolute's mineral resources. The
information in this Quarterly that relates to the mineral resources of
Resolute has been extracted from reports entitled 'Ore Reserves and Mineral
Resource Statement' announced on 8 March 2024 and is available to view on
Resolute's website (www.rml.com.au) (http://www.rml.com.au/) and www.asx.com
(http://www.asx.com/) (Resolute Announcement).
For the purposes of ASX Listing Rule 5.23, Resolute confirms that it is not
aware of any new information or data that materially affects the information
included in the Resolute Announcement and, in relation to the estimates of
Resolute's ore reserves and mineral resources, that all material assumptions
and technical parameters underpinning the estimates in the Resolute
Announcement continue to apply and have not materially changed. Resolute
confirms that the form and context in which the Competent Person's findings
are presented have not been materially modified from that announcement.
ASX Listing Rule 5.19 Production Targets
The information in this announcement that relates to production targets of
Resolute has been extracted from the report entitled 'December 2023 Quarterly
Activities Report and 2024 Guidance' announced on
31 January 2024 and are available to view on the Company's website
(www.rml.com.au) (http://www.rml.com.au/) and www.asx.com
(http://www.asx.com/) (Resolute Production Announcement).
For the purposes of ASX Listing Rule 5.19, Resolute confirms that all material
assumptions underpinning the production target, or the forecast financial
information derived from the production target, in the Resolute Production
Announcement continue to apply and have not materially changed.
Cautionary Statement about Forward-Looking Statements
This announcement contains certain "forward-looking statements" including
statements regarding our intent, belief, or current expectations with respect
to Resolute's business and operations, market conditions, results of
operations and financial condition, and risk management practices. The words
"likely", "expect", "aim", "should", "could", "may", "anticipate", "predict",
"believe", "plan", "forecast" and other similar expressions are intended to
identify forward-looking statements. Indications of, and guidance on, future
earnings, anticipated production, life of mine and financial position and
performance are also forward-looking statements. These forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause Resolute's actual results, performance and achievements or
industry results to differ materially from any future results, performance or
achievements, or industry results, expressed or implied by these
forward-looking statements. Relevant factors may include (but are not limited
to) changes in commodity prices, foreign exchange fluctuations and general
economic conditions, increased costs and demand for production inputs, the
speculative nature of exploration and project development, including the risks
of obtaining necessary licences and permits and diminishing quantities or
grades of reserves, political and social risks, changes to the regulatory
framework within which Resolute operates or may in the future operate,
environmental conditions including extreme weather conditions, recruitment and
retention of personnel, industrial relations issues and litigation.
Forward-looking statements are based on Resolute's good faith assumptions as
to the financial, market, regulatory and other relevant environments that will
exist and affect Resolute's business and operations in the future. Resolute
does not give any assurance that the assumptions will prove to be correct.
There may be other factors that could cause actual results or events not to be
as anticipated, and many events are beyond the reasonable control of Resolute.
Readers are cautioned not to place undue reliance on forward-looking
statements, particularly in the significantly volatile and uncertain current
economic climate. Forward-looking statements in this document speak only at
the date of issue. Except as required by applicable laws or regulations,
Resolute does not undertake any obligation to publicly update or revise any of
the forward-looking statements or to advise of any change in assumptions on
which any such statement is based. Except for statutory liability which cannot
be excluded, each of Resolute, its officers, employees and advisors expressly
disclaim any responsibility for the accuracy or completeness of the material
contained in these forward-looking statements and excludes all liability
whatsoever (including in negligence) for any loss or damage which may be
suffered by any person as a consequence of any information in forward-looking
statements or any error or omission.
Authorised by Mr Chris Eger, Acting Chief Executive Officer
Contact
Resolute Public Relations
Matthias O'Toole Howes, Jos Simson, Tavistock resolute@tavistock.co.uk
(mailto:resolute@tavistock.co.uk)
Corporate Development and Investor Relations Manager
+44 207 920 3150
Matthias.otoolehowes@resolutemining.com
(mailto:Matthias.otoolehowes@resolutemining.com)
+44 203 3017 620 Corporate Brokers
Jennifer Lee, Berenberg
+44 20 3753 3040
Tom Rider, BMO Capital Markets
+44 20 7236 1010
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