REG - Resolute Mining Ltd - Half Year Financial Results Summary

Resolute MiningAnnouncement

22/08/2025 07:00

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RNS Number : 3640W  Resolute Mining Limited  22 August 2025

 

22 August 2025

 

 

2025 Half Year Financial Results

 

•   Total Recordable Injury Frequency Rate (TRIFR) decreased from 2.11 in
H1 2024 to 2.02 at the end of H1 2025

•   Gold production of 151,460 ounces (oz) (H1 2024: 167,140 oz) with
stable performance at Mako offsetting lower production at Syama

•   Revenue of $447.5 million, an increase of 31% from the same period
last year (H1 2024: $341.5 million), from gold sales of 145,120 oz at an
average realised price of $3,076/oz (H1 2024: 157,321oz at $2,170/oz)

•   Earnings before interest, tax, depreciation, and amortisation (EBITDA)
of $211.1 million, an increase of 81% from same period last year (H1 2024:
$116.4 million) with a 42% increase in gold price and 10% decrease in
operating costs offsetting an 8% reduction in gold sold

•   Net income after tax of $71.0 million (H1 2024: $33.4 million)
including a $53.1 million tax expense (H1 2024: $20.0 million) and c. $30
million increase in royalties due to higher gold prices

•   All-In Sustaining Cost (AISC) of $1,688/oz, 17% higher than H1 2024
($1,442/oz) primarily driven by higher royalties

•   Capital expenditure including exploration of $57.8 million (H1 2024:
$50.6 million), with spend in line with full-year guidance of $109 - 126
million

•   Net cash increasing to $109.9 million (H1 2024 net cash of $66.3
million) with cash and bullion at 30 June 2025 of $158.7 million

•   Payment of $25.0 million made to AngloGold Ashanti plc for the
acquisition of the Doropo and ABC Projects in Côte d'Ivoire

•   Full year 2025 production and cost guidance maintained at 275,000 -
300,000 oz at an AISC of

$1,650 -1,750/oz

 

Note: Unless otherwise stated, all dollar figures are United States dollars
(US$).

 

 

Resolute Mining Limited (Resolute, Group or the Company) (ASX/LSE: RSG) is
pleased to announce

the Company's half year financial results for the half year ended 30 June 2025
(H1 2025).

 

 

Resolute's Chief Executive Officer, Mr Chris Eger, commented:

 

"Resolute has had a very positive first half of the year. Along with continued
cash flow generation that pushed our net cash position to nearly $110 million,
we have made further progress on our strategic growth initiatives at Syama and
Mako.

 

During H1 we also successfully acquired the Doropo and ABC Projects in Côte
d'Ivoire. The addition of these high-quality projects shows our commitment to
the diversification of Resolute's asset base which remains a key part of our
strategy. The licensing process at Doropo is progressing, and we are
continuing to engage productively with the local government.

 

Operationally we remain focused on safety, meeting guidance and ensuring a
continued focus on cost reductions which the Company continues to
demonstrate."

 

Corporate
Management Update

Gavin Harris joined the Company as Chief Operating Officer (COO) effective
from 1 July 2025.

 

Gavin is a Chartered Mining Engineer (CEng) with over 20 years of experience
in surface and underground mining. His most recent role was at the Tier-1
Sukari Gold Mine in Egypt for AngloGold Ashanti Plc (formerly Centamin Plc)
where he spent six years in senior management roles, most recently as the
General Manager. Since joining, Gavin has spent three weeks on site at Syama
in Mali integrating with the team and understanding the operation. This was
followed by time spent in Senegal at the Mako operation.

 

In July, Rob Cicchini joined as Project Director of the Doropo Project. Rob
has over 30 years' experience in the resources sector, most recently as
Project Director with Azumah Resources on the Black Volta Gold project in
Ghana.

 

Mali Government Update

Resolute continues to engage with the Government of Mali on implementation of
the 2023 Mining Code at Syama. The discussions remain positive and Resolute
remains committed to working collaboratively with the Malian Government to
unlock long-term value at Syama for all stakeholders.

 

Syama Sulphide Conversion Project (SSCP)

The SSCP, that will increase sulphide processing capacity from the current
level of 2.4Mtpa to 4Mtpa, is progressing well with no LTI's after
approximately 720,000 person-hours worked until the end of June 2025.

 

Earth and civil works engineering and design works are complete. The CCIL
circuit commissioning and full ramp-up is expected in Q3 2025, and the
construction of the flotation circuit is being accelerated and expected to be
completed in Q4 2025. This will bring forward some of the benefits of the SSCP
by allowing for increased sulphide processing at 50% of the CCIL design
capacity and the processing of scats through the pebble crusher circuit.

 

The remaining ball mill installation and completion of the secondary crusher
circuit is planned for H1 2026 along with the roaster upgrades. The completion
of the SSCP remains on track for Q2 2026 and ramp-up from Q3 2026.

 

Guinea Permits Update

Following discussions with Guinean Government officials Resolute understands
that its exploration permits were included in the group of over 100 permits
nationwide that were revoked by the Ministry of Mines and Geology. However, to
date, Resolute has not received any official communication from the Government
regarding the status of our permits. Irrespective of this, the Company is in
constructive dialogue with the Government to seek further information and
resolution on any potential permit issues.

 

Resolute has three exploration permits in Guinea (Niagassola, Doko and
Siguiri-Kouroussa) with an Initial Inferred Mineral Resource Estimate of the
Mansala Prospect of 8.4 Mt grading 1.3 g/t Au for 357 koz of contained gold
which was announced in 2024 following a two-year drilling program.

 

As announced on 1 May 2025 as part of the Doropo acquisition, Resolute has
agreed to transfer these exploration permits to AngloGold Ashanti (which is
subject to Government approval). The transaction has closed and is not
contingent on the transfer of the permits. If the transfer is not completed
within 18 months (or such longer date as Resolute and AngloGold Ashanti may
agree) then Resolute will pay

$25.0 million to AngloGold Ashanti in place of the transfer.

 

Ravenswood Update

During H1 Resolute was informed by the owners of the Ravenswood Mine of the
termination of the current sale process. Resolute continues to engage and
support the owners of Ravenswood.

 

Resolute still retains the following future payments with respect to
Ravenswood:

•     Vendor Financing Promissory Note (VFPN) - principal of
approximately A$68 million as of 30 June 2025, maturity on 31 December 2027

•     up to A$150 million Upside Sharing Promissory Note

 

Environment and Social Governance

In H1, Resolute recorded no significant environmental incidents, regulatory
non-compliances, or reportable community grievances. Resolute's TRIFR as of 30
June 2025 was 2.02. During H1, Resolute initiated preparations for new
mandatory climate-related disclosures in accordance with the Australian
Sustainability Reporting Standards (ASRS), commencing FY2025 and which will be
subject to third-party management assurance.

 

Resolute continues to strengthen its conformance to the Global Industry
Standard on Tailings Management (GISTM) with the preparation of a costed work
plan to achieve full conformance at each of its operations. At Syama and Mako,
multi-criteria alternative analysis has been applied to the assessment of
options and strategies for future tailings management and the siting of a new
facility. At the Mako mine, the Dam Breach Assessment for the final stage lift
of the tailings storage facility has been updated; and the annual Dam Safety
Inspection was performed by the Company's nominated Engineer of Record.

 

In Senegal, the focus has been on the Tomboronkoto and Bantaco projects. The
Environmental & Social Impact Assessment (ESIA) for the Tomboronkoto
Project is in progress with submission of the draft ESIA report to the
regulator scheduled for H2 2025. In the second quarter, preliminary studies
were initiated on the Bantaco Project ESIA and scoping studies for the
expansion of facilities at the Mako Mine, including a new Tailings Storage
Facility.

 

In Côte d'Ivoire, preparations are underway for the Doropo Project land
acquisition program to

commence once the Exploitation Permit has been awarded.

 

Exploration & Resources

Exploration expenditure in H1 was $12.4 million and in line with full-year
guidance of $20-25 million.

 

In Senegal, the focus remained on the Tomboronkoto and Bantaco projects that
have the potential to extend the life of the Mako Mine. On 24 July 2025
initial Mineral Resource Estimates (MRE) for the Bantaco West and Bantaco
South prospect areas were published. The initial Inferred MRE for the

Bantaco West prospect is 5.8Mt grading 0.97 g/t Au for 179koz, and for the
Bantaco South prospect it is 2.2Mt grading 1.2g/t Au for 87koz (both at 0.5g/t
cut-off) for a total of approximately 266koz of contained gold.

 

In Mali, the focus of exploration activities is to drill-test priority oxide
targets within the granted Exploitation Permits at Syama to determine
viability for feeding the oxide plant in the near-future. Close-spaced RC
drilling has been undertaken at four targets within the Zekere prospect area
in a series of programs which were completed during the second quarter.

 

In Côte d'Ivoire, at La Debo drilling continued throughout H1 with a total of
10,000m of RC drilling and 6,600m completed by Resolute to date. An updated
MRE for La Debo is underway and targeted for H2 2025.

 

At the ABC Project, which Resolute acquired on 1 May 2025 along with the
Doropo Project, the geological team has outlined drill targets in the northern
permits, Farako-Nafana. These are located along strike to the south from the
recently discovered high grade gold prospects at the Awale-Newmont Joint
Venture. The Farako-Nafana permit is completely untested. Resolute has
outlined an initial RC program of 5,000m that will commence after the 2025 wet
season.

 

Doropo, Côte d'Ivoire

Since 1 May 2025, business and team integration has progressed smoothly. On
site, community work has continued including preparations underway for the
commencement of a land acquisition program that will follow once the
Exploitation Permit has been awarded. A strong foundation for the Project has
been built with Rob Cicchini joining as Project Director.

 

The Exploitation Permit continues to be processed with Resolute awaiting
approval of the Permit by the Interministerial Commission followed by signing
of the Presidential Decree. This is expected to be approved in the coming
months however we cautiously note the possibility of timelines potentially
being impacted by upcoming presidential elections in October 2025.

 

In June, Resolute's CEO, Chris Eger, led a delegation to Abidjan to meet the
Prime Minister, Minister of Mines and Director General of Mines and Geology as
well as other key technical advisers to the Ministers. The visit was highly
constructive with the Government expressing strong support for Resolute's
development of Doropo.

 

During the second quarter pit optimisations with Definitive Feasibility Study
(DFS) parameters were performed at the Group reserve price assumption of
$1,950/oz versus the original price of $1,450/oz. This has shown the potential
for mineable ounces to substantially increase from the DFS without changing
the near-term production profile. Resolute is targeting to update the JORC
Reserve of Doropo in H2 to reflect the additional gold ounces.

 

Work is underway on the optimisation of the original DFS in relation to
updating the DFS for additional ounces, current costs, a more conservative
community engagement strategy and diesel back-up power. The Company is
targeting to release an updated DFS in Q4 2025.

 

Financing discussions are ongoing with various options being explored
including traditional project finance, bank finance and alternative funding
options. We expect this process to accelerate upon the completion of the
optimised DFS, and receipt of the exploitation permits.

Syama Gold Mine, Mali

At the Syama sulphide operation, ore production was lower than expected due to
explosive supply disruptions during H1. This impacted ore production from the
underground mine as well as mined grades as the mine schedule was adjusted.
Working closely with a new explosives' supplier, Resolute expects to minimise
further disruption, and underground ore production is anticipated to recover
throughout the remainder of the year. As a result, head grades were lower than
expected due to continued blending of lower-grade stockpiles. Assuming
stabilisation in explosives supply during the second half of the year, head
grades are expected to increase as production from the underground recovers.
Oxide mining remained in line with expectation and head grades in the oxide
plant continued to be driven by lower grade stockpiles which will continue for
the remainder of the year.

 

Given the impact of explosives on mining in H1 and targeted return to
stabilisation of production from the underground in H2 we expect to be at the
lower end of production guidance at Syama across both the sulphide and oxide
operations. Production in Q3 is expected to be in line with Q2 due to the
seasonal impact of the rainy season. A stronger Q4 is expected post-rainy
season combined with the commissioning of the expanded flotation circuit for
the SSCP that will enable higher grade sulphide ore from Syama North to be
processed and fed into the roaster.

 

Table 1: Syama Production and Cost Summary

 

 Summary                                Units  Q2       Q1       H1         H1

                                               2025     2025     2025       2024
             Sulphide
             Ore Mined                  t      447,538  512,485  960,023    1,283.498
 Mining      Mined Grade                g/t    2.44     2.45     2.45       2.62
                                                                            Oxide
             Ore Mined                  t      286,431  221,846  518,277    446,856
             Mined Grade                g/t    1.35     1.41     1.38       1.62
             Sulphide
             Ore Processed              t      576,049  587,009  1,163,058  1,121,004
             Processed Grade            g/t    2.22     2.35     2.29       2.71
             Recovery                   %      76       77       76         79
 Processing  Gold Poured                oz     31,461   36,143   67,605     76,637
             Gold Sold                  oz     32,767   30,733   63,500     72,008
                                                                            Oxide
             Ore Processed              t      395,432  429,183  824,614    752,275
             Processed Grade            g/t    0.95     1.03     1.00       1.32
             Recovery                   %      81       84       83         85
             Gold Poured                oz     9,563    12,091   21,654     27,422
             Gold Sold                  oz     9,563    12,091   21,654     27,422
 Cost        Syama combined
             Total Capital Expenditure  $m     16.6     23.8     40.4       36.0
             AISC                       $/oz   2,134    1,835    1,972      1,463

Mako Gold Mine, Senegal

H1 2025 mining tonnage was 22% lower than the prior year as mining activities
in the open pit finished. Mined grades were as expected and consistent with
the prior year. H1 2025 production from Mako was 62,201 oz at an AISC of
$1,104/oz.

 

In June, as per schedule ahead of the rainy season, mining activities within
the main pit ended and stockpile processing has commenced as planned.
Stockpile processing will continue until the end of 2027, by which time
Resolute is targeting to have ore available from either the Bantaco or
Tomboronkoto deposits in order to continue production from Mako.

 

As stockpile processing is underway production is expected to decrease to
between 4-5koz per month until end of 2027. Mako is on track for its full year
production guidance of 80-90koz and is tracking to the upper end. AISC
decreased from $1,274/oz in the previous quarter to $972/oz driven by higher
ounces produced.

 

Table 2: Mako Production and Cost Summary

 

 Summary                    Units  Q2 2025  Q1 2025  H1 2025    H1 2024
 Mining
 Ore Mined                  t      630,549  611,465  1,242,013  1,592,494
 Mined Grade                g/t    2.05     1.76     1.91       1.87
 Processing
 Ore Processed              t      586,307  533,995  1,120,302  1,103,157
 Processed Grade            g/t    2.00     1.78     1.89       1.91
 Recovery                   %      93       92       92         93
 Gold Poured                oz     34,938   27,263   62,201     63,081
 Gold Sold                  oz     38,467   21,498   59,965     57,891
 Financials
 Total Capital Expenditure  $m     1.0      1.0      2.0        8.4
 AISC                       $/oz   972      1,274    1,104      1,256

 

 

 

Financial Performance

Gold sales of 80,797oz were achieved at an average realised gold price of
$3,261/oz (Q1: $2,840/oz) in Q2, with all gold being sold at spot prices.

 

The VAT paid in H1 2025 in Mali and Senegal was $32.4 million, with the total
combined VAT receivable for Mali and Senegal as at 30 June 2025 being $82.6
million. Resolute continues to engage with local governments to settle these
amounts. The working capital inflow of $10.6 million was mainly attributable
to a decrease in stockpile balances.

 

EBITDA for H1 was $211.1 million driven by $447.5 million of revenue which is
attributed to the increase in gold price, as well as a reduction in operating
costs at both Syama and Mako.

 

Table 3: Half year Profit and Loss

 

 Profit and Loss Analysis ($'000s)                                    H1 2025    H1 2024
 Revenue                                                              447,514    341,503
 Cost of sales excluding depreciation and amortisation                (174,970)  (193,509)
 Royalties                                                            (48,949)   (19,639)
 Administration and other corporate expenses                          (10,260)   (6,627)
 Exploration expense                                                  (2,280)    (5,340)
 EBITDA                                                               211,055    116,388
 Depreciation and amortisation                                        (66,265)   (53,162)
 Net interest and finance costs                                       (3,178)    (3,766)
 Inventories net realisable value movements and obsolete consumables  (5,327)    14,724
 Fair value movements and unrealised treasury transactions            3,373      (5,292)
 Other                                                                (15,553)   (15,514)
 Net profit before tax                                                124,105    53,377
 Income tax benefit/(expense)                                         (53,104)   (19,976)
 Net profit after tax                                                 71,001     33,401

 

 

Cashflow

In H1 2025 the operating cash flow was $113.4 million, 13% higher than the
prior year (H1 2024:

$100.4 million) despite the increased tax payments. Due to increased profits
in both Mali and Senegal, indirect and income taxes paid in H1 2025 were $53.1
million compared to $13.0 million in H1 2024.

 

Investing cash flows in H1 were $85.7 million (H1 2024: $ 30.2 million). This
consisted of $57.8 million capital and exploration expenditure and $27.4
million of payments associated with the Doropo and ABC Project acquisition on
1 May 2025.

 

 

Balance Sheet

Net cash at 30 June 2025 was $109.9 million, increasing from the $100.3
million net cash position at 31 March 2025. This is despite payment of $25.0
million for the acquisition of Doropo as well as $46.2 million paid in income
taxes in Mali and Senegal.

 

Total borrowings at 30 June 2025 were $47.8 million which are from in-country
overdraft facilities in Mali and Senegal in order to optimise working capital.
Cash and bullion increased by $34.8 million from the end of Q1 2025 to $157.7
million at the end of Q2 2025.

 

Resolute continues to explore various options with respect to the financing of
the development of the Doropo Project. The Company expects to be able to
progress financing discussions more thoroughly upon completion of permitting
and optimisation of the DFS. The Company has available liquidity of over
$212.4 million (including $61.5 million bullion on hand) as at 30 June 2025.

 

CY2025 Guidance

Resolute maintains its full year 2025 production guidance of 275,000 - 300,000
oz and its Group AISC guidance of $1,650 - 1,750/oz.

 

Resolute is on track with its capital expenditure guidance of $109 - 126
million.

 

 

Key H2 2025 Deliverables

•   Updated La Debo Mineral Resource Estimate

•   Updated Doropo Mineral Reserve and DFS

•   Continued construction of the SSCP

•   Continued progress on Tomboronkoto and Bantaco Projects

Contact

 

Resolute

 

Matthias O'Toole-Howes,

Corporate Development and Investor Relations Manager

 

motoolehowes@resolutemining.co (mailto:motoolehowes@resolutemining.co) m

+44 203 3017 620

Public Relations

Jos Simson, Tavistock resolute@tavistock.co.uk
(mailto:resolute@tavistock.co.uk)

+44 207 920 3150

 

Corporate Brokers

Jennifer Lee, Berenberg

+44 20 3753 3040

 

Tom Rider, BMO Capital Markets

+44 20 7236 1010

 

Authorised by Mr Chris Eger, Managing Director and Chief Executive Officer

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