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REG - Resolute Mining Ltd - Appendix 4E & Preliminary Final Report

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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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