REG - Resolute Mining Ltd - Resolute adds to US$ gold hedge book

Resolute MiningAnnouncement

17/02/2020 07:00

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RNS Number : 1795D  Resolute Mining Limited  17 February 2020

17 February 2020

Resolute Mining Limited

(Resolute or the Company)

 

Resolute adds to US$ gold hedge book

30,000 ounces forward sold at average price of US$1,590 per ounce

 

Resolute Mining Limited (Resolute or the Company) (ASX/LSE: RSG) advises that
the Company has forward sold 30,000 ounces of gold at an average price of
US$1,590 per ounce in scheduled monthly deliveries of 5,000 ounces between
January 2021 and June 2021.

Resolute has taken advantage of strength in the gold price to extend the
Company's US dollar denominated gold hedge position for the first half of
2021. This hedging secures price certainty for a portion of the US dollar
revenues generated from Resolute's African gold mines, the Syama Gold Mine in
Mali and the Mako Gold Mine in Senegal. The additional US dollar hedging
extends Resolute's existing US dollar forward gold sales program which
consisted of 115,000 ounces of gold forward sold at an average price of
US$1,535 per ounce in scheduled monthly deliveries to June 2021.

Resolute maintains a hedging policy of committing to forward deliveries of
gold production to take advantage of elevated gold prices. Resolute's total
gold hedge book as at 17 February 2020, including the new US dollar gold
hedges, consists of 225,000 ounces in monthly deliveries out to June 2021
representing less than 3% of Resolute's Ore Reserves.

Managing Director and CEO, Mr John Welborn, was pleased to continue Resolute's
success in maximising operating cash flows through responsible hedging
strategies:

"Incremental expansion of our US dollar hedging position at levels which are
significantly above our budgeted gold price, protects and supports Resolute's
near-term cash flows. Resolute's hedging program has strong support from our
syndicate banks as our modest hedge book protects the Company's balance sheet
and supports our gold-linked revenues. With long mine lives and large gold
inventories, Resolute remains strongly leveraged to future upside in the gold
price."

For further information, contact:

 

 John Welborn                  Jeremy Meynert

 Managing Director & CEO       General Manager - Business Development & Investor Relations

About Resolute

Resolute is a successful, dividend paying gold miner with more than 30 years
of experience as an explorer, developer and operator of gold mines in
Australia and Africa which have produced more than 8 million ounces of gold.
The Company trades on the Australian Securities Exchange (ASX) and the London
Stock Exchange (LSE) under the ticker RSG.

Resolute has a Global Mineral Resource base of more than 19 million ounces of
gold. The Company's flagship asset is the world class Syama Gold Mine in Mali
which has the ability to produce 300,000 ounces of gold per annum from
existing processing infrastructure. Resolute has commissioned the world's
first automated underground mine at Syama which will deliver a low cost, large
scale operation with a mine life beyond 2032. The Mako Gold Mine in Senegal is
a high quality, low cost asset with average annual production of approximately
140,000 ounces of gold. A binding agreement has been signed to sell the
Ravenswood Gold Mine in Queensland, Australia for up to A$300 million. A
strategic review is currently underway of the Bibiani Gold Mine in Ghana.

Resolute's guidance for FY20 has been set at production of 500,000 ounces of
gold at an AISC of US$980 per ounce. FY20 Guidance will be revised once the
sale of Ravenswood has been finalised.

Contact Information

 Resolute                                                Berenberg (UK Corporate Broker)

 John Welborn, Managing Director & CEO                   Matthew Armitt / Jennifer Wyllie / Detlir Elezi

 Jeremy Meynert, General Manager - BD & IR               Telephone: +44 20 3207 7800

 Telephone: +61 8 9261 6100

 Email: contact@rml.com.au (mailto:contact@rml.com.au)   Tavistock (UK Public Relations)

 Web: www.rml.com.au (http://www.rml.com.au)             Jos Simson / Emily Moss / Annabel de Morgan / Oliver Lamb

                             Telephone: +44 207 920 3150 / +44 778 855 4035

                             Email: resolute@tavistock.co.uk (mailto:resolute@tavistock.co.uk)

 

Authorised by Mr John Welborn, Managing Director & CEO

 

 ASX/LSE: RSG Capital Summary                Board of Directors                            Contact

 Fully Paid Ordinary Shares: 1,035,886,919   Mr Martin Botha Non-Executive Chairman        John Welborn Managing Director & CEO

Mr John Welborn Managing Director & CEO

 Current Share Price (ASX):
                                             Jeremy Meynert GM - BD & IR

A$1.12 as at 15 February 2020              Ms Yasmin Broughton Non-Executive Director
Level 2, Australia Place | 15-17 William St

Perth, Western Australia 6000
 Market Capitalisation: A$1.2 Billion        Mr Mark Potts Non-Executive Director
T: +61 8 9261 6100 | F: +61 8 9322 7597

E: contact@rml.com.au (mailto:contact@rml.com.au)
 FY20 Guidance:                              Ms Sabina Shugg Non-Executive Director

 500,000oz @ AISC US$980/oz                  Mr Peter Sullivan Non-Executive Director

 

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