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Resolute Mining has reported a half year net profit after tax of A$39 million for the six month period ended 30 June 2019 (H1 FY19).

MD and CEO, John Welborn, comments:

“Delivering 176,237 ounces at an All-In Sustaining Cost of US$828 per ounce generated revenues of A$324 million and EBITDA of A$78 million which is an exceptional result during a period of significant investment in our business.

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“The ramp up of the Syama Underground Mine to full production will further increase Resolute’s production base, margins, and cash flows. The acquisition of Toro Gold is a further boost to the profitability and cash generating capacity of our business.

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“Our investment in exploration enabled us to deliver material growth in our gold inventory.

“At Tabakoroni, we now have a Mineral Resource comprising over one million ounces of gold at a grade above five grams per tonne which will underpin a potential underground mine, while at Ravenswood we added one million ounces of gold in Ore Reserves.

“Mineral Resources at Ravenswood are now almost six million ounces of gold with our ongoing study work focused on delivering a project which can produce 200,000 ounces annually over a 15 year mine life. 

“We are delighted to have delivered as promised on important strategic goals for 2019 with our listing on the London Stock Exchange, the ramp-up of Syama, and the acquisition of Toro Gold.

“Gold production for 2019 is now forecast to be 400,000 oz at an AISC of US$960 per ounce with further growth and upside to come in 2020.” 

Resolute produced 176,237 oz at an AISC of US$828/oz (A$1,173/oz) with total gold sales of 176,294 oz at an average realised gold price of A$1,800/oz.

Revenue for the period was up 33% to A$324 million , generating a gross profit from operations of A$69 million, up 77% on the previous corresponding period (H1 FY18).

As part of the Company’s listing on the London Stock Exchange and to synchronise the consolidation of its African subsidiary companies’ accounts, Resolute changed its financial year end to 31 December.

Resolute achieved a 171% increase in earnings before interest, tax, depreciation, amortisation and fair value adjustments (EBITDA) to A$78 million.

Cash flow from operating activities was A$95 million, up 79% on the previous corresponding period.

Resolute continued to make significant investments in growth with development, property, plant and equipment investment expenditure totalling A$150 million.

The Syama Underground Mine achieved commercial production rates in June 2019 and is expected to reach full production by the end of the year.

A total investment of A$6.5 million in exploration and evaluation delivered excellent results with a maiden high grade underground Mineral Resource being reported at Tabakoroni of 850,000 oz grading 5.1 grams per tonne of gold.

Drilling activities undertaken at the Ravenswood Gold Mine as part of ongoing work on the Ravenswood Expansion Project resulted in an increase in Ore Reserves at Ravenswood of 1 Moz to 2.7 Moz of gold, representing growth of 58%.

Mineral Resources at Ravenswood increased by 24% to 5.9 Moz of gold.

As at 30 June 2019, the Company’s cash, bullion and investments totalled A$56 million while its borrowings were A$198 million. 

Resolute delivered on key strategic objectives during the half-year, listing on the Main Market of the London Stock Exchange and pursuing value accretive growth through the addition of the low cost, high quality Mako Gold Mine, located in Senegal, to the company’s portfolio as part of the acquisition of Toro Gold.

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Following the acquisition of Toro Gold, Resolute upgraded FY19 guidance to 400,000 oz at an AISC of US$960/oz.

Safe work practices are at the core of Resolute’s business and the Company continues to focus on delivering positive safety outcomes as part of its operations.

Resolute’s safety performance strengthened relative to the previous corresponding period with a material reduction in the Total Recordable Injury Frequency Rate to 2.77 (3.23 at 30 June 2018).

This was driven by a company-wide focus on effective management of sub-contractors and the active management of key operational risks which will continue to be key focus areas in the second half of the year.