REG - Resolute Mining Ltd - September 2024 Quarterly Activities Report
29/10/2024 07:00
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RNS Number : 9751J Resolute Mining Limited 29 October 2024
29 October 2024
Quarterly Activities Report
For the Quarter ending 30 September 2024 ('Q3 2024', ''September Quarter' or
'the quarter')
· No lost time injuries (LTIs) recorded; there were two recordable
injuries in Q3 and the total Recordable Injury Frequency Rate (TRIFR)
decreased to 1.37 from 2.11
· Gold poured of 85,043 ounces (oz) (Q2 2024: 90,787oz) slightly below
expectations due to extreme rainfall events at Mako and lower than expected
ore grades
· All-In Sustaining Cost (AISC) of $1,452/oz (Q2 2024: $1,402/oz) due
to stockpile processing at Mako and higher sliding-scale royalties in Mali
· Gold sales of 95,242oz at an average realised spot price of $2,493/oz
(Q2 2024: 88,321oz at $2,342/oz)
· Capital expenditure (excluding exploration) of $26.6m (Q2 2024:
$19.6m) comprising non-sustaining capital of $19.3m and sustaining capital
expenditure of $7.4m
· Total exploration expenditure of $6.3m, comprising $5.3m of capital
expenditure and $1.1m operating expenditure, with drilling programs continuing
in Senegal, Mali and Guinea
· Received A$20m (approximately $13.5m) second tranche cash payment
from the sale of the Ravenswood Gold Mine in 2020
· Net cash of $145.6m ($96.6m in Q2 2024), including cash and bullion
of $188.3m
· Announced an Initial Mineral Resource at Mansala in Guinea of 6.6 Mt
at 1.6 g/t for 343 koz of contained gold (at 1g/t cut-off)
· Mineral Resource Estimate at Tomboronkoto increased to 5.1 Mt at 2.1
g/t for 343 koz of contained gold (at 1g/t cut-off) with 87% in the Indicated
Resource category
· Signed a Joint Venture ("JV") agreement on the La Debo Gold Project
in the Ivory Coast with an existing NI 43-101 compliant Inferred resource of
400koz grading 1.3g/t
· 2024 group production guidance expected at or below lower-end (345 -
365 koz) and AISC at the upper end ($1,300-1,400/oz) due to lower Mako
production and the impact of a higher royalty rate (c. $70/oz higher) in Mali
as a result of the higher gold price environment
· 2024 capital expenditure expected to be below guidance ($115 - 145m)
due to approximately $20m of capital expenditures for the Syama Sulphide
Conversion Project being deferred into 2025
Note: Unless otherwise stated, all dollar figures are United States dollars
($).
Resolute Mining Limited (Resolute, the Company or the Group) (ASX/LSE: RSG),
is pleased to present its Quarterly Activities Report for the period ended 30
September 2024.
Terry Holohan, Managing Director and Chief Executive Officer, commented,
"It has been a mixed quarter for Resolute. Despite unprecedented rains
affecting mining operations at both Mako and the oxide operation in Syama, the
Company still produced 85koz of gold and generated substantial free cash flow
of close to $50 million. At Syama, sulphide operations continued to perform
better than expected for the quarter and should perform similarly in Q4 and
beyond, demonstrating the improvements we have put in place over the last 3
years.
At Mako we experienced unprecedented rain in September which saw temporary
flooding in the lower elevation of the pit hindering mining operations for
four weeks. Grades at Mako were also impacted by a 15% negative reconciliation
from the grade control model which we expect to continue for the remaining ore
in the pit due to inconsistencies in the orebody as it nears its end of mine
life. This, in combination with the impact of the rains, means that Mako is
now expected to be below guidance.
Our group 2024 production is expected to be at or below the lower end of 2024
Guidance with the improved performance at Syama compensating for some of the
shortfall at Mako.
The conversion of the Syama oxide plant to a sulphide processing facility
remains on track for treating sulphides from the higher grade Syama North open
pit areas from mid-2025.
During the quarter we secured up to $140m from external lenders to support
growth and received the second tranche of the deferred sales proceeds of A$20m
from Ravenswood adding further strength and flexibility to the Balance Sheet.
Operating cash flows remained robust as our net cash increased by $49m over
the quarter to $145.6m.
We are pleased with the exploration progress across our portfolio. During Q3
the Mineral Resource at Tomboronkoto - a key satellite deposit that has the
potential of extending the life of Mako - was increased by up to 30% and now
has 87% in the Indicated Resource category. We are also optimistic about the
initial Mineral Resource Estimate for the Mansala Prospect in Guinea with over
340koz of gold being identified.
Post quarter-end we concluded an earn-in JV agreement over the La Debo Project
in the Ivory Coast and expect to initiate a drilling program on the main
deposit over which there exists a NI 43-101 resource of 400 koz which we are
confident can be expanded. This JV shows that Resolute is delivering on its
diversification strategy adding a fourth country to the Company's portfolio of
assets.
To conclude, Resolute's focus remains on delivering gold production targets,
continued cost discipline and executing on its organic growth."
Webcast and Conference Call
Resolute will host a conference call for investors, analysts, and media on
Tuesday, 29 October 2024, to discuss the Company's Quarterly Activities Report
for the period ending 30 September 2024. This call will conclude with a
question-and-answer session.
Conference Call: 7:30pm (AEDT, Sydney) / 8:30am (GMT, London)
Webcast registration link: https://brrmedia.news/RSG_Q3_24
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) USA: +1 786 697 3501
Sydney: +61 2 8014 9383
South Africa Toll Free: 0 800 980 512
UK-Wide: +44 33 0551 0200
Password (if prompted) Quote Resolute Mining when 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/) .
Operations Overview
The operational performance for the Resolute Group for Q3 2024 is set out in
the table below.
Units September June September Nine Months Nine Months
2024
2024
2023
2024
2023
Group Summary
Quarter
Quarter
Quarter
YTD
YTD
Mining
Ore Mined t 1,368,297 1,967,774 1,412,295 4,691,145 4,873,217
Mined Grade g/t 2.06 2.02 1.97 2.10 2.11
Processing
Ore Processed t 1,529,134 1,522,450 1,463,007 4,505,571 4,395,625
Processed Grade g/t 2.00 2.19 1.90 2.05 2.13
Recovery % 85 86 85 86 85
Gold Poured oz 85,043 90,787 74,056 252,182 250,687
Sales
Gold Sold oz 95,242 88,321 76,524 252,563 249,581
Average Realised Price $/oz 2,493 2,342 1,917 2,292 1,909
Financials
Total Capital Expenditure $m 26.6 19.6 14.3 71.0 51.1
Net (Cash)/Debt $m (145.6) (96.9) (2.2) (145.6) (2.2)
AISC $/oz 1,452 1,402 1,459 1,444 1,466
Table 1: Resolute Group Operational Performance Summary
Environmental Social Governance
Resolute's TRIFR as of 30 September 2024 was 1.37, a 35% decrease from the
previous quarter, with two recordable injuries. This compares to the
International Council on Mining and Metals (ICMM) mines average of 2.6.
Resolute recorded no significant environmental incidents, regulatory
non-compliances, or grievances in Q3 2024. Resolute is undergoing continuous
audits against the World Gold Council's Responsible Gold Mining Principles,
the Conflict Free Gold Standard, ISO 14001, ISO 45001 and progress against the
Global Industry Standard on Tailings Management. Following a climate risk
assessment, the company is assessing its climate-related financial impacts in
line with TCFD recommendations, to be disclosed in the 2024 Annual and
Sustainability Reports.
Syama, Mali
Syama gold production for the quarter was 52,991oz at an AISC of $1,533/oz.
The operational performance is set out in the table below.
Summary Units September June September Nine Months Nine Months
2024
2024
2023
2024
2023
Quarter
Quarter
Quarter
YTD
YTD
Mining Sulphide
Ore Mined t 554,221 636,539 574,560 1,837,719 1,728,250
Mined Grade g/t 2.50 2.68 2.32 2.58 2.69
Oxide
Ore Mined t 111,098 266,513 344,478 557,954 1,316,788
Mined Grade g/t 1.40 1.56 1.57 1.58 1.65
Processing Sulphide
Ore Processed t 622,620 609,714 586,166 1,743,624 1,661,146
Processed Grade g/t 2.63 2.75 2.39 2.68 2.75
Recovery % 78 79 78 79 79
Gold Poured oz 42,878 41,930 34,805 119,515 114,536
Gold Sold oz 47,776 42,661 36,016 119,784 113,837
Oxide
Ore Processed t 352,933 374,949 340,450 1,105,208 1,150,298
Processed Grade g/t 1.06 1.32 1.27 1.23 1.47
Recovery % 84 87 86 84 84
Gold Poured oz 10,113 13,669 11,664 37,535 44,721
Gold Sold oz 10,113 13,669 11,734 37,535 43,804
Cost Syama combined
Total Capital Expenditure $m 22.6 17.0 7.2 39.6 31.4
AISC $/oz 1,533 1,502 1,421 1,487 1,473
Table 2: Syama Production and Cost Summary
At Syama the combined ore tonnes mined decreased to 665kt while the mined
grade was marginally lower at 2.32g/t versus 2.35g/t from the prior quarter
primarily driven by lower oxide open pit grades in Q3.
During Q3 the mined tonnage for sulphides was slightly lower due to the rainy
season but in line with expectations. Sulphide grades mined were in line with
expectations and in Q4 are expected to increase back above 2.6g/t. In Q4,
mined tonnages are expected to increase to levels achieved in Q2.
During Q3, oxide mined tonnage was higher than expected due to a change of pit
design in Tellem pit after the grade control model defined more tonnes and
higher grades than the resource model. The oxide grades in Q3 were lower than
expected due to a change in mining sequence. In Q4, higher tonnages and grades
are expected as previous ore areas are again accessed following the end of the
rainy season.
In the sulphide operation tonnes milled was in line with expectation and
similar to Q2 as plant availability remained stable. The head grade was 5%
lower due to lower mined grades. In Q4 sulphide gold production is expected to
be similar to Q3 as milled tonnages and head grades remain stable supported by
high-grade stockpiles.
During the first part of Q3 lower grade stockpiles continued to be the main
source of ore feed for the oxide plant as pit availability was impacted by the
rains. Milled tonnage during the quarter was in line with expectation. In Q4,
processed tonnage and grades are expected to be up to 20% higher than Q3.
Capital expenditure was $22.6 million for the quarter, split $16.0 million and
$6.6 million between non-sustaining and sustaining respectively. Expenditure
in the quarter is mainly attributed to the Beta TSF lift, the SSCP as well as
$5.7 million of waste stripping cost.
AISC increased to $1,533/oz with the main driver being increased royalty
payments as the base rate has increased from 6% to 10% since August as the
gold price exceeded $2,500/oz as a result of the sliding-scale royalty regime.
This increase in base royalty rate is equivalent to an extra $100/oz of cost
at Syama (or approximately $70/oz at the Group level).
Mako, Senegal
Mako gold production for the quarter was 32,052oz at an AISC of $1,125/oz. The
operational performance for Mako is set out in the table below.
Summary Units September June September Nine Months Nine Months
2024
2024
2023
2024
2023
Quarter
Quarter
Quarter
YTD
YTD
Mining
Ore Mined t 702,978 1,064,722 493,257 2,295,472 1,828,179
Mined Grade g/t 1.82 1.90 1.84 1.85 1.89
Processing
Ore Processed t 553,581 537,787 536,391 1,656,739 1,584,181
Processed Grade g/t 1.89 2.15 1.75 1.92 1.97
Recovery % 93 93 91 93 92
Gold Poured oz 32,052 35,188 27,587 95,132 91,430
Gold Sold oz 37,353 31,991 28,774 95,244 91,940
Financials
Total Capital Expenditure $m 4.0 2.6 7.1 12.4 19.6
AISC $/oz 1,125 1,100 1,407 1,212 1,339
Table 3: Mako Production and Cost Summary
During the quarter, ore mined remained higher than average as accelerated
mining was continued in July and August to increase ore selectivity for mill
feed as well as wet season preparation to create containment sumps for
dewatering purposes. However, in September mining was severely impacted with
four weeks of ore mining being lost due to pit flooding of the main mining
area (see Figure 1 & 2) forcing a change in mining sequence. Rainfall in
September 2024 was 569mm (versus 430mm in September 2023 and the September
average of 252mm between 2018 and 2022) and has been by far the wettest month
since Mako mine started in 2017. The combination of the current dewatering
infrastructure not being designed for the 1 in 1000-year rainfall event that
occurred during September and the lack of flexibility in mining areas (being
at the final stage of the pit) meant that the planned ore mining operations
could not be sustained. In Q4, we expect an improvement in the mined tonnage
and grade, however throughout October heavy rain has continued to impact
mining in the pit.
The average mine grade in Q3 was also impacted by a 15% negative grade
reconciliation from the grade control model compared to the 2021 Resource
Model as well as a reduction in the cut-off grade (from 0.9g/t to 0.7g/t)
which resulted in approximately 40kt of additional lower grade material
(0.84g/t) being mined, and stock-piled, during the quarter. As a result of the
lower grades experienced over Q3 we have revised our forecasts to allow for
this negative grade reconciliation to continue in the orebody as it nears its
end of life (end of mining is forecast for June 2025).
Gold production decreased 9% compared to the prior quarter driven by the
decrease in head-grade due to the use of stockpiles whilst ore mining was
curtailed as well as the lower-than-expected ore grades. In Q4, tonnes milled
are expected to be slightly higher and head grades to remain similar to Q3. As
a result, we are now forecasting full year production at Mako of approximately
130koz.
Capital expenditure of $4.0 million in the quarter consisted of $3.2 million
and $0.8 million non-sustaining and sustaining respectively. Expenditure
included critical parts for the power generator and the final Tailings Storage
Facility raise.
AISC increased slightly to $1,125/oz from $1,100/oz in the previous quarter
due to lower production from the impacts of heavy rainfall in September and
lower grades mined. We expect full year AISC to be at the upper end of
guidance.
Figure 1: View of Mako Pit in September
Figure 2: Inundation of lower areas where higher grades of the orebody are
located
Exploration
Total Group exploration expenditure in Q3 was $6.3 million, with drilling
programs continuing in Senegal, Mali and Guinea throughout the quarter. This
was made up of $5.3 million of capital mainly focused on drilling at Syama
North Sulphide, Tomboronkoto and Bantaco, and $1.1 million of exploration
expense which was mainly spent in Guinea on the Mansala Prospect ($0.2
million) and in Mali on Syama North Oxides ($0.4 million).
The 2024 total group exploration expenditure (capital and expensed) is
expected to exceed the original full year budget of $16-18 million as drill
programmes at Tomboronkoto and Bantaco are expedited. Total exploration
expenditure for 2024 is expected to be approximately $20 million.
Senegal Exploration
On 12 September an updated Mineral Resource for Tomboronkoto was published.
Infill drilling program down to 150m was highly successful with 87% of the
updated Mineral Resource classified in the Indicated category.
The updated MRE is an increase of 30% over the initial MRE using a cut off of
1g/t Au. The Tables below include the initial Inferred MRE as announced in
January 2024 and the latest updated MRE from August 2024.
Tomboronkoto Mineral Resource (0.5g/t Au cut-off)
At December 2023 At August 2024
Classification Tonnes Grade Ounces (Au) Tonnes Grade Ounces (Au)
(g/t Au) (g/t Au)
Inferred 10,204,000 1.2 403,000 2,300,000 1.0 75,000
Indicated - - - 13,190,000 1.2 496,000
Total 10,204,000 1.2 403,000 15,500,000 1.1 571,000
Table 4: Tomboronkoto Mineral Resources at December 2023 and August 2024
(0.5g/t cut off)
Tomboronkoto Mineral Resource (1g/t Au cut-off)
At December 2023 At August 2024
Classification Tonnes Grade Ounces (Au) Tonnes Grade Ounces (Au)
(g/t Au) (g/t Au)
Inferred 3,685,000 2.2 264,000 613,000 1.9 38,000
Indicated - - - 4,439,000 2.1 305,000
Total 3,685,000 2.2 264,000 5,052,000 2.1 343,000
Table 5: Tomboronkoto Mineral Resources at December 2023 and August 2024 (1g/t
cut off)
To date the Tomboronkoto deposit is only drilled to 150m below surface and is
open down dip. Drilling is currently targeting the extensions of the resource
between 150m and 200m below surface. Preliminary results suggest that the
mineralisation is continuous down dip. Drilling will continue throughout the
remainder of 2024 to expand the open pit extractable Mineral Resources.
Mali Exploration
Mineral Resource definition drilling continued at Syama North throughout Q3
focussing on upgrading the classification of the high-grade inferred Resources
which lie below the currently planned open pit design.
An updated Mineral Resource Estimate for Syama North is underway and will be
announced in Q4 ahead 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 Q3. Mining studies will be carried out on
the satellite oxide resources at Finkolo in Q4 to ascertain the economics of
these prospects.
Guinea Exploration
On 12 September 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.
Drilling to date is on 100m spaced lines therefore the Mineral Resource
classification is 100% in the Inferred category.
Mansala Mineral Resource (1g/t Au cut-off)
Classification Tonnes Grade (g/t Au) Ounces (Au)
Inferred 6,625,000 1.6 343,000
Total 6,625,000 1.6 343,000
Table 6: Mansala Mineral Resources at August, 2024 (1g/t cut off)
The mineralisation zone at Mansala is open along strike to the north and south
and down dip. Drilling programs to extend these resources are planned to
recommence later in 2024 after the conclusion of the wet season in Guinea.
Ivory Coast Exploration
Resolute has 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.
Mineralization is hosted in sheared Birimian sediments similar to many gold
deposits in West Africa.
There has been a large amount of historical work carried out at La Debo
including soil sampling and over 42,000m of combined air-core, reverse
circulation and diamond drilling.
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 will commence exploration on the newly signed JV project in Q4 and is
confident of considerably expanding the resources with targeted drilling
programmes.
Syama Sulphide Conversion Project Update
The SSCP is progressing well with no LTIs after approximately 255,000
person-hours worked until the end of September 2024.
The project remains on track. Detailed engineering for all disciplines as well
as the manufacture of the long lead items is complete.
Figure 3: Ball mill and flotation area foundations
Figure 4: Aerial view of the SSCP construction area
Corporate
First Nine Month 2024 Cash and Bullion Movements and Balance Sheet (US$
million)
(*Included in Operating Cash flows are $38.8 million of royalties, $25.1
million of VAT and taxes, and movements in Bullion.)
Chart 1: First Nine Month 2024 Cash and Bullion Movements
The average realised gold price achieved for the quarter was $2,493/oz (Q2:
2024 $2,342/oz) with all gold being sold at spot prices. Q3 gold sales of
95,242 oz was higher than gold poured during the quarter due to the reduction
of bullion on hand.
The Company's year to date cash flow before interest, debt repayments,
government dividends (paid in both Mali and Senegal) and Ravenswood proceeds
was $117.7 million. The cash generation has been driven by strong operating
cash flows of $188.3 million year to date (versus $105 million in the first
nine months of 2023 and $61.1 million in Q3 2024) due to higher gold
production and gold prices.
Whilst working capital remains positive due to inventory reduction and
accounts payable initiatives the Company continues to face adverse tax
challenges in both Senegal and Mali which is expected to continue.
During the quarter Resolute received the second tranche of the deferred
consideration payment of A$20 million from Ravenswood.
Net cash at 30 September 2024 was $145.6 million increasing from $96.6 million
net cash position at 30 June 2024. Resolute has available liquidity of over
$250 million ($143.3 million in Q2) including cash of $168.1 million and
bullion of $20.2 million and up to $140m in external debt facilities to
provide increased flexibility to continue to explore organic and inorganic
growth. Total borrowings at 30 September 2024 were $42.5 million (Q2 2024:
$46.8 million) which are from in-country overdraft facilities in Mali and
Senegal.
During the quarter the Company secured up to $140 million in external debt
facilities with Nedbank and Citibank consisting of $30 million Revolving
Credit Facility, $30 million Term Loan Facility and a $80 million Accordion
Facility. These remain undrawn.
Q3 2024 capital expenditure, excluding exploration, was $26.7 million with
year-to-date capital expenditure of $71.0 million. Group capital expenditure
is expected to be below guidance ($115 - 145 million) with approximately
$15-20 million of capital associated with the SSCP being deferred to 2025.
Guidance for capital expenditure in 2025 will be provided in due course.
Mali Mining Code
Resolute has a Mining convention for its Syama and Tabakoroni licences until
2029. Resolute continues to work with the Government in a clear, constructive
and responsible manner.
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 2024 is 345,000-365,000oz at
an AISC of $1,300-1,400/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
2023.
Appendix
September 2024 Quarter Production and Costs (unaudited)
September 2024 - Quarter to date Units Syama Sulphide Syama Oxide Syama Mako Group
Total
UG Lateral Development m 1,326 - 1,326 - 1,326
UG Vertical Development m - - - - -
Total UG Development m 1,326 - 1,326 - 1,326
UG Ore Mined t 554,221 - 554,221 - 554,221
UG Grade Mined g/t 2.50 - 2.50 - 2.50
OP Operating Waste BCM - 61,721 61,721 873,398 935,119
OP Ore Mined BCM - 777,056 777,056 252,386 1,029,442
OP Grade Mined g/t - 1.40 1.40 1.82 1.50
Total Ore Mined t 554,221 111,098 665,319 702,978 1,368,297
Total Tonnes Processed t 622,620 352,933 975,553 553,581 1,529,134
Grade Processed g/t 2.63 1.06 2.06 1.89 2.00
Recovery % 79 84 81 93 85
Gold Recovered oz 41,267 10,127 51,394 31,391 82,785
Gold in Circuit Drawdown/(Addition) oz 1,611 (14) 1,597 661 2,258
Gold Produced (Poured) oz 42,878 10,113 52,991 32,052 85,043
Gold Bullion in Metal Account Movement (Increase)/Decrease oz 4,898 - 4,898 5,301 10,199
Gold Sold oz 47,776 10,113 57,889 37,353 95,242
Achieved Gold Price $/oz - - - - 2,493
Cost Summary
Mining $/oz 435 167 384 474 418
Processing $/oz 510 879 581 383 506
Site Administration $/oz 133 286 162 140 154
Site Operating Costs $/oz 1,078 1,332 1,127 997 1,078
Royalties $/oz 271 263 269 147 225
By-Product Credits + Corp Admin $/oz (2) (2) (2) - 69
Total Cash Operating Costs $/oz 1,347 1,593 1,394 1,144 1,372
Sustaining Capital + Others $/oz 57 410 124 24 87
Inventory Adjustments $/oz (10) 120 15 (43) (7)
All-In Sustaining Cost (AISC) $/oz 1,394 2,123 1,533 1,125 1,452
AISC is calculated on gold produced (poured)
Year-to-date 2024 Production and Costs (unaudited)
September 2024 - Year to date Units Syama Sulphide Syama Oxide Syama Total Mako Group
Total
UG Lateral Development m 3,786 - 3,786 - 3,786
UG Vertical Development m 40 - 40 - 40
Total UG Development m 3,826 - 3,826 - 3,826
UG Ore Mined t 1,837,719 - 1,837,719 - 1,837,719
UG Grade Mined g/t 2.58 - 2.58 - 2.58
OP Operating Waste BCM - 308,078 308,078 3,761,895 4,069,973
OP Ore Mined BCM - 2,177,401 2,177,401 831,269 3,008,670
OP Grade Mined g/t - 1.58 1.58 1.85 1.65
Total Ore Mined t 1,837,719 557,954 2,395,673 2,295,472 4,691,145
Total Tonnes Processed t 1,743,624 1,105,208 2,848,832 1,656,739 4,505,571
Grade Processed g/t 2.68 1.23 2.12 1.92 2.05
Recovery % 79 85 81 93 86
Gold Recovered oz 118,497 37,398 155,895 95,153 251,048
Gold in Circuit Drawdown/(Addition) oz 1,018 137 1,155 (21) 1,134
Gold Produced (Poured) oz 119,515 37,535 157,050 95,132 252,182
Gold Bullion in Metal Account Movement (Increase)/Decrease oz 269 - 269 112 381
Gold Sold oz 119,784 37,535 157,319 95,244 252,563
Achieved Gold Price $/oz - - - - 2,292
Cost Summary
Mining $/oz 479 387 457 551 493
Processing $/oz 510 743 566 389 499
Site Administration $/oz 140 263 169 145 160
Site Operating Costs $/oz 1,129 1,393 1,192 1,085 1,152
Royalties $/oz 177 163 173 115 154
By-Product Credits + Corp Admin $/oz (2) (2) (2) - 58
Total Cash Operating Costs $/oz 1,304 1,554 1,363 1,200 1,364
Sustaining Capital + Others $/oz 120 152 127 18 85
Inventory Adjustments $/oz (57) 161 (3) (6) (5)
All-In Sustaining Cost (AISC) $/oz 1,367 1,867 1,487 1,212 1,444
AISC is calculated on gold produced (poured)
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) and 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) and 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 Terry Holohan, Managing Director and Chief Executive Officer
Contact
Resolute Public Relations
Matthias O'Toole Howes, Jos Simson, Tavistock
Corporate Development and Investor Relations Manager resolute@tavistock.co.uk
Matthias.otoolehowes@resolutemining.com +44 207 920 3150
+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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