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RSG - Resolute Mining News Story

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Last Trade - 24/09/21

Sector
Basic Materials
Size
Small Cap
Market Cap £240.1m
Enterprise Value £382.5m
Revenue £419.7m
Position in Universe 785th / 1784

Resolute Mining Ltd - June 2021 Quarterly Activities Report

Thu 29th July, 2021 7:00am
RNS Number : 8835G
Resolute Mining Limited
29 July 2021
 

29 July 2021

 

Resolute Mining Limited

(Resolute or the Company)

 

Quarterly Activities Report

 for the period ended 30 June 2021

 

Highlights

·       Total Recordable Injury Frequency Rate (TRIFR) of 1.24 in line with the prior quarter

·       Quarterly production (poured) of 77,450 ounces (oz), 10% lower than the prior quarter reflecting:

o Mako - production in line with expectations during the cut-back phase

o Syama Sulphide - record levels of mining, processing and roaster throughput achieved to date were offset by power disruptions, an extension of scheduled mill maintenance and lower grades

o Syama Oxide - record tonnes processed offset by lower blended grades and increase in circuit stocks

·       All-In Sustaining Cost (AISC) of $1,319/oz for the quarter was higher than the prior quarter reflecting lower production volumes

·       Syama Hybrid Power Station fully operational with final testing of the battery storage system ongoing

·       $20.0 million voluntary debt repayment completed earlier than scheduled, lowering borrowing costs

·       Net debt decreased to $219.8 million, from $222.8 million in the prior quarter, with cash and bullion of $88.8 million at 30 June 2021

·       On site COVID-19 vaccination program has seen 1,114 employees and contractors immunised with no disruption to operations

·       New Board member and key management appointments including CEO, COO and CFO

·       2021 production and cost guidance has been revised to 315,000oz from 340,000oz at an AISC between $1,290/oz to $1,365/oz.

Note: All dollar figures are United States dollar (US$) currency unless otherwise stated

 

Operating Performance Snapshot           

Group Level Summary

Units

June 2021 Quarter

March 2021 Quarter

Change

June 2020 Quarter

Mining

Ore Mined

t

1,554,097

1,565,373

(1%)

1,548,640

Mined Grade

g/t

2.03

2.26

(10%)

2.44

Processing

Ore Processed

t

1,456,921

1,371,076

6%

1,439,599

Processed Grade

g/t

2.00

2.22

(10%)

2.61

Recovery

%

85.3

85.5

(0%)

88.6

Gold Recovered

oz

79,318

83,389

(5%)

107,070

Gold Poured

oz

77,450

85,668

(10%)

107,183

Sales

Gold Sold

oz

68,103

83,400

(18%)

110,660

Average Realised Price

$/oz

1,714

1,729

1%

1,446

Cost

All-In Sustaining Cost (AISC)

$/oz

1,319

1,239

7%

1,033

Table 1: Resolute Group Operational Performance Summary

Refer to the Appendix for a full summary of Resolute's production and costs in the June 2021 quarter.

 

Sustainability

Safety

Resolute's TRIFR at 30 June 2021 was 1.24 compared to 1.05 at 30 June 2020. The slight increase in TRIFR is a result of three minor recordable injuries that occurred in the quarter, with all employees returning to pre-injury duties. Continuation of the critical hazard and risk management standards remains a focus for health and safety in 2021.

Environmental, Social and Governance (ESG)

COVID-19

 

Syama, Mali

Syama Sulphide Operations

Period

Mining

Processing

Costs

Ore

(t)

Grade
(g/t)

Ore

(t)

Grade
(g/t)

Recovery
(%)

Gold Poured (oz)

AISC
($/oz)

March 2021 Quarter

570,377

2.47

535,706

2.61

78.0

37,217

1,274

June 2021 Quarter

700,368

2.33

557,755

2.43

77.7

33,463

1,339

YTD

1,270,746

2.40

1,093,460

2.52

77.8

70,680

1,307

Table 2: Sulphide Production and Cost Summary

Syama Oxide Operations

Period

Mining

Processing

Costs

Ore

(t)

Grade
(g/t)

Ore

(t)

Grade
(g/t)

Recovery
(%)

Gold Poured (oz)

AISC
($/oz)

March 2021 Quarter

339,550

2.08

339,625

1.58

86.5

15,508

1,302

June 2021 Quarter

302,408

1.87

413,041

1.31

86.3

13,424

1,466

YTD

641,958

1.98

752,666

1.43

86.4

28,932

1,379

Table 3: Oxide Production and Cost Summary

Mako, Senegal

Period

Mining

Processing

Cost

Ore

(t)

Grade
(g/t)

Ore

(t)

Grade
(g/t)

Recovery
(%)

Gold Poured (oz)

AISC
($/oz)

March 2021 Quarter

655,445

2.23

495,746

2.26

93.0

32,943

1,036

June 2021 Quarter

551,321

1.72

486,125

2.09

93.2

30,563

1,094

YTD

1,206,766

1.99

981,872

2.18

93.1

63,506

1,064

Table 4: Mako Production and Cost Summary

 

Resolute Life of Mine production profile

Bibiani Gold Mine, Ghana

 

Exploration

 

Projects                                                     

Syama Power Upgrade

Corporate

Cash, Bullion and Liquid Assets

Description

June 2021 Quarter ($m)

March 2021 Quarter ($m)

Cash

52.7

87.2

Bullion

36.1

18.8

Cash and Bullion

88.8

106.0

Promissory Note

40.4

40.3

Listed Investments

53.3

50.9

Total Cash, Bullion and Liquid Assets

182.5

197.2

Table 5: Total Cash, Bullion and Liquid Assets

The average gold price realised for the quarter was $1,714/oz compared to the average spot price of $1,815/oz.

The key movements in cash and market value of bullion balances during the quarter are summarised in Figure 1.

Please see image in the full version of the announcement at www.rml.com.au

Figure 1: Quarterly Cash and Bullion Movements in US dollars

Balance Sheet

Tax

Hedging

 

 

Quarter

US Dollar Forward Sales

EURO Forward Sales

Forward

Price ($/oz)

Delivery

(oz)

Forward

Price (€/oz)

Delivery

(oz)

September 2021

$1,716.42

58,000

1,499.84

10,000

December 2021

$1,730.55

30,000

1,479.02

13,000

Total

$1,721.23

88,000

€1,488.07

23,000

Table 6: Committed Hedging Forward Sales in US dollars and Euro

The Company also has in place 65,000oz of zero cost collars in 2021 comprising put options at an average of $1,669/oz and call options at an average of $2,119/oz.

 

CY21 Guidance

Syama

Mako

Capital expenditure and exploration

Depreciation and amortisation

Debt repayments

 

Reporting Calendar

27 August 2021 - Half Year Financial Results

29 October 2021 - September Quarterly Activities Report 

20 January 2022 - December Quarterly Activities Report 

 

Investor and Analyst Conference Calls

Resolute will host two conference calls for investors, analysts and media on Thursday 29 July 2021, to discuss the Company's Quarterly Activities Report for the period ending 30 June 2021. Both calls will conclude with a question and answer session.

Conference Call 1 (pre-registration required)

Pre-Registration Link: https://s1.c-conf.com/diamondpass/10015573-5scteo.html

Participants will receive a calendar invite with dial-in details once the pre-registration process is complete.

Conference Call 1 will also be streamed live online at http://www.openbriefing.com/OB/4371.aspx

 

Conference Call 2 (via MS Teams Live Event)

Attendee Link: RSG MS Teams Live Event link

 

Contact Information     

Resolute

Stuart Gale, Managing Director & CEO

Telephone: +61 8 9261 6100

Email: contact@rml.com.au

Web: www.rml.com.au

 

Berenberg (UK Corporate Broker)

Matthew Armitt / Jennifer Wyllie / Detlir Elezi

Telephone: +44 20 3207 7800
 

Tavistock (UK and African media)

Jos Simson / Emily Moss / Annabel de Morgan / Oliver Lamb

Telephone: +44 207 920 3150 / +44 778 855 4035
Email:
resolute@tavistock.co.uk

 

FTI Consulting (Australian media)

Cameron Morse / James Tranter

Telephone: +61 433 886 871
Email: cameron.morse@fticonsulting.com

 

 

Appendix

June 2021 Quarter Production and Costs (unaudited)

June 2021 Quarter

Units

Syama Sulphide

Syama Oxide

Syama Total

Mako

Group
Total

UG Lateral Development

m

2,077

-

2,077

-

2,077

UG Vertical Development

m

-

-

-

-

-

Total UG Development

m

2,077

-

2,077

-

2,077

UG Ore Mined

t

679,495

-

679,495

-

679,495

UG Grade Mined

g/t

2.35

-

2.35

-

2.35

OP Operating Waste

BCM

5,029

1,037,492

1,042,521

1,827,715

2,870,236

OP Ore Mined

BCM

9,846

138,692

148,538

197,814

346,352

OP Grade Mined

g/t

0.59

1.87

1.87

1.72

1.78

Total Ore Mined

t

700,368

302,408

1,002,776

551,321

1,554,097

Total Tonnes Processed

t

557,755

413,041

970,796

486,125

1,456,921

Grade Processed

g/t

2.43

1.31

1.95

2.09

2.00

Recovery

%

77.7

86.3

81.3

93.2

85.3

Gold Recovered

oz

33,932

14,987

48,919

30,399

79,318

Gold in Circuit Drawdown/(Addition)

oz

(469)

(1,563)

(2,032)

164

(1,868)

Gold Produced (Poured)

oz

33,463

13,424

46,887

30,563

77,450

Gold Bullion in Metal Account Movement (Increase)/Decrease

oz

8,745

(13,055)

(4,310)

(5,037)

(9,347)

Gold Sold

oz

42,208

369

42,577

25,526

68,103

Achieved Gold Price

$/oz

-

-

-

-

1,714

Mining

$/oz

816

358

685

431

585

Processing

$/oz

457

518

474

357

428

Site Administration

$/oz

138

283

180

135

162

Site Operating Cost

$/oz

1,411

1,159

1,339

923

1,175

Royalties

$/oz

96

95

95

72

89

By-Product Credits + Corp Admin

$/oz

(3)

(4)

(3)

-

48

Total Cash Operating Costs

$/oz

1,504

1,250

1,431

995

1,312

Sustaining Capital + Other

$/oz

41

211

90

115

100

Total Cash Expenditure

$/oz

1,545

1,461

1,521

1,110

1,412

Stockpile Adjustments

$/oz

(155)

104

(80)

6

(46)

Gold in Circuit Movement

$/oz

(57)

(105)

(70)

(22)

(51)

Asset Reclamation & Remediation

$/oz

6

6

6

-

4

Total Non-Cash Adjustments

$/oz

(206)

5

(144)

(16)

(93)

All-In Sustaining Cost (AISC)

calculated on gold produced (poured)

$/oz

1,339

1,466

1,377

1,094

1,319

 

June 2021 Year to date

Units

Syama Sulphide

Syama Oxide

Syama Total

Mako

Group
Total

UG Lateral Development

m

4,176

-

4,176

-

4,176

UG Vertical Development

m

58

535,560

535,618

-

535,618

Total UG Development

m

4,234

535,560

539,794

-

539,794

UG Ore Mined

t

1,249,872

-

1,249,872

-

1,249,872

UG Grade Mined

g/t

2.41

-

2.41

-

2.41

OP Operating Waste

BCM

5,029

2,052,797

2,057,826

3,795,243

5,853,069

OP Ore Mined

BCM

9,846

297,857

308,703

428,567

737,270

OP Grade Mined

g/t

 

1.98

1.98

1.99

1.99

Total Ore Mined

t

1,270,746

641,958

1,912,704

1,206,766

3,119,470

Total Tonnes Processed

t

1,093,460

752,666

1,846,126

981,872

2,827,998

Grade Processed

g/t

2.52

1.43

2.07

2.18

2.11

Recovery

%

77.8

86.4

81.3

93.1

85.4

Gold Recovered

oz

68,915

29,880

98,795

63,910

162,705

Gold in Circuit Drawdown/(Addition)

oz

1,765

(948)

817

(404)

413

Gold Produced (Poured)

oz

70,680

28,932

99,612

63,506

163,118

Gold Bullion in Metal Account Movement (Increase)/Decrease

oz

19,440

(27,810)

(8,370)

(3,245)

(11,615)

Gold Sold

oz

90,120

1,122

91,242

60,261

151,503

Achieved Gold Price

$/oz

-

-

-

-

1,723

Mining

$/oz

743

373

636

435

558

Processing

$/oz

429

470

441

352

406

Site Administration

$/oz

147

263

181

126

159

Site Operating Cost

$/oz

1,319

1,106

1,258

913

1,123

Royalties

$/oz

95

98

96

82

93

By-Product Credits + Corp Admin

$/oz

(1)

(1)

(1)

-

49

Total Cash Operating Costs

$/oz

1,414

1,204

1,354

995

1,265

Sustaining Capital + Other

$/oz

104

118

108

115

111

Total Cash Expenditure

$/oz

1,518

1,322

1,462

1,110

1,376

Stockpile Adjustments

$/oz

(122)

65

(68)

(23)

(50)

Gold in Circuit Movement

$/oz

(94)

(13)

(71)

(23)

(52)

Asset Reclamation & Remediation

$/oz

5

5

5

-

3

Total Non-Cash Adjustments

$/oz

(211)

57

(134)

(46)

(99)

All-In Sustaining Cost (AISC)

calculated on gold produced (poured)

$/oz

1,307

1,379

1,328

1,064

1,277

Year-to-date 2021 Production and Costs (unaudited)

 

 

About Resolute

Resolute is a successful gold miner with more than 30 years' experience as an explorer, developer and operator of gold mines in Australia and Africa which have produced more than 9 million ounces of gold. The Company trades on the Australian Securities Exchange (ASX) and the London Stock Exchange (LSE) under the ticker RSG. Resolute currently operates the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal. Resolute is the owner of the Bibiani Gold Mine in Ghana.

Competent Persons Statement

For the purposes of ASX Listing Rule 5.23, Resolute confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements relating to exploration results or estimates of Mineral Resources or Ore Reserves referred to in this announcement and, in the case of Mineral Resources and Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.  Resolute confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 which forms part of UK law pursuant to the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via a Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.

 

 

 

 

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