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RNS Number : 9352E Resolute Mining Limited 29 February 2024
Results for Announcement to Market
The reporting period is the year ended 31 December 2023 with the corresponding
reporting period being for the year ended 31 December 2022. Unless otherwise
stated, all dollar figures are United States dollars ($).
( )
12 months ended 12 months ended
31 December 2023 31 December 2022
$'000 $'000
Down 3% to 631,074
Revenue from ordinary activities Up 427% to 182,719 651,129
Up 328% to 145,813
Profit/(Loss) for the period (34,665)
(34,083)
Profit/(Loss) after tax attributable to members
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
It is not proposed to pay any dividends
( )
( )
12 months ended 12 months ended
31 December 2023 31 December 2022
$'000 $'000
Net tangible assets backing (per share)(1) 0.26 0.22
(1. Net tangible assets excludes right of use assets from the reported net
assets in the statement of financial position.)
( )
The financial statements are in the process of being audited. The statutory
accounts for the year ended 31 December 2023 are expected to be finalised on
the basis of the financial information presented by the Directors in this
preliminary announcement and signed following approval by the Board of
Directors. The financial information contained in this announcement does not
constitute statutory accounts for the year ended 31 December 2023.
29 February 2024
2023 Preliminary Financial Results
Resolute Mining Limited (Resolute, the Company or the Group) (ASX/LSE: RSG),
is pleased to present its Preliminary Financial Results for the year ended 31
December 2023.
Highlights
· Group 2023 revenue of $631.1 million ($651.1 million in 2022) from
gold sales of 329,061 oz sold at an average price of approximately $1,920/oz
(2022: $1,819/oz).
· Group 2023 EBITDA(1) of $161.6 million ($148.1 million in 2022)
driven by higher gold price and lower costs with a Group All-In Sustaining
Cost(1) (AISC) of $1,470/oz (2022: $1,498/oz).
· Net Cash(1) of $14.0 million (up from net debt of $31.6 million at
the end of 2022).
· 2024 Group production guidance remains between 345,000 - 365,000 oz
at an AISC of $1,300 -1,400/oz as per the January 31(st) announcement.
· 2024 Group capital expenditure guidance remains between $115-145
million split between Syama, Mako and Exploration of $90-110 million, $15-20
million, and $10-15 million respectively, as per the January 31(st)
announcement.
Note: Unless otherwise stated, all dollar figures are United States dollars
($).
(1) This is a non-GAAP measure with no standard
meaning under IFRS.
Terry Holohan, CEO and Managing Director, commented,
"In 2023 we returned to profitability showing the results of our ongoing
business turnaround. During the year we became cash positive, declared a
maiden Ore Reserve at Syama North and approved the first phase of expansion at
Syama.
Resolute achieved an EBITDA of $161.6 million, 9% higher than in 2022, driven
by higher gold prices and lower operating costs across both sites thanks to
our ongoing cost saving initiatives. We also managed to continue strengthening
the balance sheet with net debt being reduced by $45.6 million resulting in a
net cash position of $14.0 million by the end of 2023.
Our key focus for 2024 is to continue the sustainable reduction in costs
across the Group, deliver the Syama Phase I Expansion and progress a near-mine
satellite resource to extend the Mako mine beyond 2026."
Resolute will be releasing full year audited financial results by the end of
the first quarter according to reporting standards. The audited financial
results with be released alongside our 2023 Annual Report.
Summary Financial Performance Overview
The reporting period is the year ended 31 December 2023 with the corresponding
reporting period being for the year ended 31 December 2022. Unless otherwise
stated, all dollar figures are United States dollars ($).
The financial performance of Resolute for the year ended 31 December 2023 is
summarised below:
$'000 2023 Group 2022 Group
Revenue 631,074 651,129
Cost of sales excluding depreciation and amortisation (399,353) (433,924)
Royalties and other operating expenses (36,313) (39,574)
Administration and other corporate expenses (19,055) (14,393)
Exploration expenses (14,720) (14,615)
EBITDA 161,633 148,166
Depreciation and amortisation (76,345) (85,894)
Net interest and finance costs (11,176) (15,273)
Inventories NRV movements and obsolete consumables 7,611 (36,077)
Fair value movements and treasury transactions 83,711 (14,822)
Other income/(expense) 22,555 (10,662)
Net profit before tax 187,989 (14,105)
Income tax expense (5,270) (20,560)
Reported net profit after tax 182,719 (34,665)
(Amounts presented above are aggregate balances of certain line items
presented in the Consolidated Statement of Comprehensive) (Income.)
(1) This is a non-GAAP measure with no standard meaning under IFRS.
Group Revenue of $631.1 million in 2023 was 3% lower than the comparative
period as the increase in the average realised gold price of $1,920/oz (2022:
$1,819/oz) was offset by an expected decrease in gold sales of 329,061oz
compared to prior year (357,447oz).
Cost of sales excluding depreciation and amortisation decreased to $399.4
million compared to $433.9 million in 2022. This is due to our ongoing cost
reduction initiatives as well as the reversal of historic provisions related
to the tax exoneration timing dispute in Senegal resulting in a onetime
non-cash benefit of $16.4 million.
Administration and other corporate expenses were higher in 2023 due to one-off
expenses because of the relocation of select back-office support functions
from Perth, Australia to London, United Kingdom to align time zones with
operations.
Group EBITDA of $161.6 million in 2023 was a 9% improvement on the comparative period driven by a significant decrease in cost of sales as well as the one-time non-cash benefit of $16.4 million relating to the reversal of historic tax provisions in Senegal. The EBITDA of $161.6 million is lower than the reported EBITDA from January 31(st) announcement by approximately $3.4 million as a result of refinement of inventory calculations.
Net interest and finance expenses decreased in 2023 to $11.2 million (2022:
$15.3 million) due to reduced debt levels relative to 2022. During 2023
Resolute made $55.0 million in principal repayments ($30.0 million and $25.0
million in Q1 and Q3 respectively). $25.0 million remains outstanding on the
Term Loan portion of the Syndicated Facility Agreement and is due to be paid
in March 2024.
Other income of $22.5 million has increased from a $10.6 million expense in
2022 due to an $23.5 million increase due to related to the deferred
contingent consideration receivable relating to the sale of Ravenswood, as all
related performance hurdles are expected to be met prior to the milestone
period.
Fair value movements and treasury transactions were $83.7 million in 2023
mainly due to unrealised foreign exchange gains associated with intercompany
loans.
Liquidity Summary
Net cash at 31 December 2023 of $14.0 million. This represents a $45.6 million
reduction from the $31.6 million net debt position at the end of 2022.
Available liquidity of $165.2 ($158.0 million in the prior quarter) includes
cash and gold sales receivable of $67.6 million, bullion of $17.6 million, and
the undrawn RCF of $80.0 million. Total borrowings at 31 December 2023 were
$71.2 million, comprising $25.0 million on the Term Loan Facility and $46.2
million on the overdraft facilities in Mali.
2023 Operational Review
In 2023, a total of 330,994 ounces (oz) of gold were produced (poured) at an
AISC of $1,469/oz with total gold sales of 329,061oz at an average realised
price of $1,920/oz. Further details by operation are provided below.
Syama Gold Mine, Mali
From the sulphide operation 151,256 oz of gold was poured in 2023 which was 6%
lower than the prior year despite the similar mining and milling metrics. Gold
production in 2022 was positively impacted by over 21koz of residual gold
(GIC) processed from legacy ponds containing high-grade sulphide concentrate
material which had been largely exhausted by Q2 2023. The approximate AISC at
the Syama Sulphide of $1,390/oz for 2023 was 1% lower than in 2022 ($1,410/oz)
despite 10koz fewer ounces being produced and 21 koz being released from GIC
in 2022. The decrease in AISC in 2023 is attributed to the ongoing cost saving
initiatives.
From the oxide operation in 2023 59,891 oz of gold was poured, marginally
below what was achieved in 2022 (62,165oz). In 2023 the oxide operation saw an
increase in tonnes processed due to improvements in the crushing and milling
circuits and the softer nature of the material processed. The decreased oxide
recovery from 2022 was due to pockets of 'transitional' ores being processed
in Q2 2023 from the final cuts in the Tabakoroni pits containing marginally
higher levels of organic carbon. The approximate AISC for Syama Oxide in 2023
of $1,631/oz was 9% lower than in 2022 ($1,801/oz), despite lower ounces
produced, due to the ongoing cost saving initiatives.
Mako Gold Mine, Senegal
Production of 119,847oz was above the 117,000 oz guidance. Lower gold
production was expected in 2023 due to the major focus on waste stripping.
Stage 6 was completed in Q4 and mining of higher-grade Stage 7 ore commenced
in Q4 as did in-pit dumping of waste approximately three months ahead of
schedule, having a positive impact on costs going forward. The approximate
2023 AISC of $1,373/oz was below guidance of $1,470/oz due to cost
improvements.
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2023
$'000 Note 2023 2022
Revenue from contracts with customers for gold and silver sales 1 631,074 651,129
Costs of production 1 (399,353) (433,924)
Gross profit 231,721 217,205
Depreciation and amortisation 1 (76,345) (85,894)
Royalties 1 (36,313) (39,574)
Gross profit from operations 119,063 91,737
Interest income 1 1,988 5,513
Other income 1 23,527 4,549
Exploration expense 1 (14,720) (14,615)
Administration and other corporate expenses 1 (19,055) (14,393)
Share based payments expense 1 (605) (457)
Fair value movements and treasury transactions 1 83,711 (14,822)
Inventories net realisable value movements and obsolete consumables 1 7,611 (36,077)
Finance costs 1 (13,164) (20,786)
Share of associates' gain/losses 1 - (1,305)
Indirect tax expense 1 (367) (13,449)
Profit/(loss) before tax from operations 187,989 (14,105)
Tax expense 1 (5,270) (20,560)
Profit/(loss) for the year from operations 182,719 (34,665)
Gain/(loss) attributable to:
Members of the parent 145,813 (34,083)
36,906 (582)
Non-controlling interest
182,719 (34,665)
Consolidated Statement of Comprehensive Income (continued)
for the year ended 31 December 2023
$'000 Note 2023 2022
Profit/(loss) for the year (brought forward) 182,719 (21,333)
Other comprehensive income/(loss)
Exchange differences on translation of foreign operations:
- Members of the parent
- Non-controlling interest
(64,942) (18,167)
(16,321) 4,507
Changes in the fair value/realisation of financial assets at fair value (397)
through other comprehensive income, net of tax
(717)
Other comprehensive loss for the year, net of tax (81,660) (14,377)
Total comprehensive income/(loss) for the year 101,059 (35,710)
Total comprehensive (loss)/gain attributable to:
Members of the parent 80,754 (52,967)
Non-controlling interest 20,305 3,925
101,059 (49,042)
Loss per share for net loss attributable for continuing operations to the cents cents
ordinary equity holders of the parent:
Basic loss per share 3 6.85 (2.85)
Diluted loss per share 3 6.85 (2.85)
Consolidated Statement of Financial Position
for the year ended 31 December 2023
$'000 Note 2023 2022
Current assets
Cash 4 59,769 80,873
Other financial assets - restricted cash 1,412 1,406
Receivables 5 85,254 48,793
Inventories 8 147,438 146,430
Income tax asset 7,317 -
Prepayments and other assets 12,433 11,141
Total current assets 313,623 288,643
Non-current assets
Income tax asset 1,810 10,545
Inventories 8 50,767 42,434
Evaluation and development assets 197,699 225,606
Property, plant and equipment 254,460 234,461
Other financial assets 34,089 53,651
Right of use assets 10,096 13,453
Total non current assets 548,921 580,150
Total assets 862,544 868,793
Current liabilities
Payables 58,722 63,700
Financial liabilities 6 73,866 97,180
Provisions 9 58,529 100,377
Lease liabilities 3,069 3,373
Current tax liabilities 5,233 19,107
Total current liabilities 199,419 283,793
Non current liabilities
Provisions 9 82,710 71,544
Financial liabilities - 29,482
Lease liabilities 9,625 12,536
Total non current liabilities 92,335 113,562
Total liabilities 291,754 397,299
Net assets 570,790 471,494
Equity attributable to equity holders of the parent
Contributed equity 882,731 882,731
Reserves (89,059) (21,956)
Retained earnings (171,528) (317,341)
Total equity attributable to equity holders of the parent 622,144 543,434
Non-controlling interest (51,354) (71,940)
Total equity 570,790 471,494
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 2023
$'000 Contributed equity Net unrealised gain/(loss) reserve Convertible notes/ Share options equity reserve Non-controlling interests reserve Employee equity benefits reserve Foreign currency translation reserve Retained earnings/ (accumulated losses) Non-controlling interest Total
At 1 January 2023 882,731 (9,348) 4,876 (724) 20,477 (37,207) (317,341) (71,940) 471,494
Profit for the year - - - - - - 145,813 36,906 182,719
Other comprehensive (loss)/income, net of tax - (398) (555) 88 - (64,475) - (16,321) (81,661)
Total comprehensive (loss) - (398) (555) 88 -
(64,475) 145,813 20,586 572,553
/Income for the year, net of tax
Shares issued (net of cost) - - - - - - - - -
Dividends paid - - - - - - - - -
Share based payments expense - - - - (1,763) - - - (1,763)
At 31 December 2023 882,731 (9,745) 4,321 (636) 18,684 (101,682) (171,528) (51,534) 570,790
At 1 January 2022 777,021 (8,631) 4,876 (724) 19,813 (19,040) (283,258) (71,467) 418,590
Loss for the year - - - - - - (34,083) (582) (34,665)
Other comprehensive (loss)/income, net of tax - (717) - - - (18,167) - 4,507 (13,508)
Total comprehensive (loss) - (717) - - - (18,167) (34,083) 3,925 (48,173)
/income for the year, net of tax
Shares issued (net of cost) 105,710 - - - - - - - 105,710
Dividends paid - - - - - - - (4,398) (4,398)
Share based payments expense - - - - 634 - - - (235)
At 31 December 2022 882,731 (9,348) 4,876 (724) 20,447 (37,207) (317,341) (71,940) 471,494
Consolidated Cash Flow Statement
for the year ended 31 December 2023
$'000 Note 2023 2022
Cash flows from operating activities
Receipts from customers 632,444 650,591
Payments to suppliers, employees and others (483,689) (524,706)
Exploration expenditure (4,650) (10,745)
Interest paid (12,279) (16,619)
Interest received 519 214
Indirect tax receipts/ (payments) (374) 164
Income tax paid (9,285) (7,994)
Net cash flows from operating activities 122,686 90,906
Cash flows used in investing activities
Payments for property, plant & equipment (27,264) (35,811)
Payments for development activities (40,299) (27,602)
Payments for evaluation activities (4,234) (4,372)
Proceeds from sale of asset 3,621 19,148
Proceeds relating to asset held for sale - 60,000
Proceeds from investment in associate - 4,534
Other investing activities (725) (725)
Net cash flows from/(used in) investing activities (68,901) 15,172
Cash flows from financing activities
Repayment of borrowings (55,000) (195,000)
Proceeds from issuing ordinary shares - 110,289
Payments for share issue costs - (4,579)
Dividends paid to non-controlling interest - (5,089)
Repayment of principal portion of lease liability (2,354) (3,457)
Net cash flows used in financing activities (57,354) (97,837)
Net increase/(decrease) in cash and cash equivalents (3,569) 8,240
Cash and cash equivalents at the beginning of the year 35,459 55,226
Exchange rate adjustment (2,198) (542)
Cash and cash equivalents at the end of the year 29,692 35,459
Cash and cash equivalents comprise the following:
Cash at bank and on hand 4 59,769 80,873
Bank overdraft 4 (30,077) (45,414)
Cash and cash equivalents at the end of the year 29,692 35,459
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
("Resolute" or the "Group") for the year ended 31 December 2023 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 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 2022 and any public
announcements made by Resolute during the reporting period in accordance with
the continuous disclosure requirements of the Corporations Act 2001.
Presentation Currency and 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
31 December 2023 Mako Syama (Mali) Corporate/
$'000 (Senegal) Other (b) Total
Revenue
Gold and silver sales at spot to external customers (a) 229,505 401,568 - 631,074
Costs of production (136,519) (261,163) (1,671) (399,353)
Segment gross profit 92,986 140,405 (1,671) 231,721
Depreciation and amortisation (41,125) (32,788) (2,432) (76,345)
Royalties (11,475) (24,066) (772) (36,313)
Segment gross profit from operations 40,386 83,551 (4,875) 119,063
Interest income 2,384 22 (418) 1,988
Other (expense)/income (24) (140) 23,691 23,527
Exploration expense (4,455) (7,832) (2,433) (14,720)
Administration and corporate expenses - - (19,055) (19,055)
Share based payment expenses - - (605) (605)
Fair value movements and treasury transactions (1,968) 90,682 (5,003) 83,711
Inventories net realisable value movements and obsolete consumables 3 7,608 - 7,611
Finance costs (6,727) (5,062) (1,375) (13,164)
Indirect tax expense - (363) (4) (367)
Segment profit/(loss) before tax from operations 29,599 168,466 (10,077) 187,989
Income tax recovery/(expense) 12,454 (17,718) (6) (5,270)
Profit/(loss) for the 12 months to 31 December 2022 42,053 150,748 (10,083) 182,719
1 Segment revenues and expenses (continued)
31 December 2022 Mako Syama (Mali) Corporate/
$'000 (Senegal) Other Total
Revenue
Gold and silver sales at spot to external customers (a) 236,760 414,369 - 651,129
Costs of production (148,017) (285,907) - (433,924)
Segment gross profit 88,743 128,462 - 217,205
Depreciation and amortization (42,673) (19,707) (2,013) (85,894)
Royalties (11,838) (27,736) - (39,574)
Segment gross profit from operations 52,282 107,540 (2,013) 91,737
Interest income 7 24 5,482 5,513
Other income - 14 4,535 4,549
Exploration expense (4,018) (9,578) (1,019) (14,615)
Administration and corporate expenses (4,777) (1,160) (8,546) (14,393)
Share based payment expenses - - (457) (457)
Fair value movements and treasury transactions (163) 879 (15,384) (14,822)
Inventories net realisable value movements and obsolete consumables (7,004) (29,073) - (36,077)
Finance costs (839) (5,076) (14,871) (20,786)
Share of associates' losses - - (1,305) (1,305)
Indirect tax expense (62) (13,387) - (13,449)
Segment profit/(loss) before tax from operations 17,376 23,662 (33,642) (14,105)
Income tax expense (13,411) (4,178) (2,971) (20,560)
Profit/(Loss) for the 12 months to 31 December 2022 3,965 19,484 (36,613) (34,665)
2 Dividends paid or proposed
The company's dividend policy is, subject to board discretion, to pay a
minimum of 2% of gold sales revenue as a dividend. A dividend has not been
declared for the year ended 31 December 2023.
3 Earnings/(loss) per share
31 December 2023 31 December 2022
Basic earnings/(loss) per share
Profit/(loss) attributable to ordinary equity holders for operations of the 145,813 (34,083)
parent for basic loss per share ($'000)
Weighted average number of ordinary shares outstanding during the year used in 2,129,006,806 1,196,856,518
the calculation of basic EPS and diluted EPS
cents cents
Basic earnings/(loss) per share from operations (cents per share) 6.85 (2.85)
Diluted earnings/(loss) per share from operations (cents per share) 6.85 (2.85)
4 Cash
31 December 2023 31 December 2022
$'000 $'000
Cash at bank and on hand 59,769 80,873
For the purpose of the cash flow statement, cash and cash equivalents comprise
the following at the end of each year:
Cash at bank and on hand 59,769 80,873
Bank overdraft (30,077) (45,414)
Total 29,692 35,459
5 Receivables
31 December 2023 31 December 2022
$'000 $'000
Trade and other receivables 8,744 37
Promissory note receivable 42,377 -
Taxation receivables 34,133 48,756
Total receivables 85,254 48,793
Trade and other receivables for $8.7 million relates to gold sold for which
funds have not been received at 31 December 2023.
The tax receivable balance includes a VAT receivable of $24.1 million (31
December 2022 $12.1 million) relating to the Syama operation and a VAT
receivable of $9.8 million (31 December 2022 $34.9 million) due to the Mako's
operations post exoneration. During 2023 the Company settled the outstanding
dispute relating to the Mako operation exoneration resulting in the release of
a $34.9m provision. Resolute continues to work with its advisors and the
Malian and Senegalese Authorities on the timely release of VAT refunds. Refer
to Note 9.
Promissory note receivable has increased to $42.4 million from $nil in 2022.
This relates to the notes receivable relating to the sale of the Ravenswood
mine.
6 Financial Liabilities
31 December 2023 31 December 2022
$'000 $'000
Financial liabilities
Interest bearing liabilities 71,414 95,634
Financial derivative liabilities 2,472 1,546
Total financial liabilities 73,866 97,180
7 Interest bearing iabilities
31 December 2023 31 December 2022
$'000 $'000
Interest bearing liabilities (current)
Bank overdraft 30,077 45,414
Insurance premium funding 179 -
Bank borrowings 71,414 50,330
Total Interest bearing liabilities (current) 101,670 95,634
Interest bearing liabilities (non current)
Bank borrowings - 29,482
Total Interest bearing liabilities (non current) - 29,482
Total 101,670 125,116
8 Inventories
31 December 2023 31 December 2022
$'000 $'000
Doré bars 13,242 10,276
Gold in circuit 51,146 41,755
Ore stockpiles 67,649 60,747
Consumables, spare parts and supplies 66,168 76,086
Total inventories 198,205 188,864
Less: Non-current metal inventories (50,767) (42,434)
Current portion of inventories 147,438 146,430
9 Provisions
31 December 2023 31 December 2022
$'000 $'000
Current
Site restoration 527 1,220
Employee entitlements 5,744 4,336
Dividend payable 136 136
Provision for indirect taxes 49,461 92,936
Other provisions 2,661 1,749
Total provisions (current) 58,529 100,377
Non Current
Site restoration 82,488 70,874
Employee entitlements 22 670
Total provisions (non current) 82,710 71,544
Resolute's subsidiaries in Mali have received demands for payment to the Local
Tax Authorities in relation to Income Tax and indirect taxes for the years
ended 31 December 2015 to 2022.
At 31 December 2023, the total net provision for taxes decreased from $92.9
million to $49.5 million. This is largely due to a VAT receivable offset of
$55.2 million being applied to the Malian tax provisions of $105.0 million.
Resolute and its advisors continue to work with the Malian authorities to
resolve years under assessment.
10 Subsequent events
There were no subsequent events to report post the balance sheet date.
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