Resolute Mining reaffirms its 2021 production, cost and capital expenditure guidance, together with confirming that robust operating cash flow generation is expected to support the accelerated repayment of debt on or before the required due dates.
Resolute is providing this update to clarify there is no impact on the Company’s guidance and in response to speculation regarding its ability to meet debt repayments following the announcement of receipt of a letter from the Ghanaian Minerals Commission advising that the Mining Lease for the Bibiani Gold Mine stands terminated.
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Based on total 2021 gold production from Resolute’s Syama Gold Mine in Mali and Mako Gold Mine in Senegal, together with operating cost and capital expenditure guidance, Resolute expects to generate sufficient operating cash flows to support debt repayments of $50 million in 2021.
This includes the early repayment of $25 million over and above the minimum debt repayment obligations of $25 million which are due in September 2021.
Proceeds from completion of the sale of Bibiani to Chifeng Jilong Gold Mining for $105 million in cash were to be taken as an opportunity to rapidly accelerate Resolute’s debt repayments.
However, these proceeds are not required to meet Resolute’s minimum debt repayment obligations which can be satisfied through operating cashflow generation from Syama and Mako.
Resolute continues to work through all options in relation to resolving its position with the Ghanaian Government regarding the termination of the Bibiani Mining Lease with the objective of reaching an amicable solution to restore the Mining Lease and enable the sale process with Chifeng to continue.