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 comprehensive income and other reserves, net of tax
-
(865)
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 dividends
(21,480)
65,578
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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
FR FZGZZFRZGKZG
