ASX/LSE-listed Resolute Mining has provided a production update for the December 2019 Quarter. Total quarterly gold production increased by 2,092 oz to 105,293 oz.
This improvement in company production was achieved despite the sulphide circuit at the Syama Gold Mine in Mali being offline for most of the quarter.
Gold production from Syama for the December 2019 Quarter was 46,945 oz comprising 33,049 oz from the oxide circuit and 13,896 oz from the sulphide circuit.
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Mako delivered another excellent result in its second quarter under Resolute ownership with 42,997 oz of gold produced for the December 2019 Quarter.
Ravenswood produced 15,351 oz of gold, an increase of 2,146 oz on the September 2019 Quarter.
Resolute’s total gold production for the 12 months to 31 December 2019 totalled 384,731 oz representing a variance of less than 4% to annual production guidance of 400,000 oz.
The unscheduled material loss of production from the Syama sulphide circuit was balanced by the outperformance of the Syama oxide circuit, and strong performance from Resolute’s Mako Gold Mine in Senegal and Ravenswood Gold Mine in Queensland.
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For the full year to 31 December 2019, the company’s production result of 384,731 oz comprised 243,058 oz from Syama, 87,187 oz from Mako, and 54,486 oz from Ravenswood.
At Syama, the oxide circuit produced 180,534 oz and the Syama sulphide circuit produced 62,524 oz.
Syama sulphide production is expected to accelerate rapidly in the current quarter and be a strong performer for Resolute in the 2020 financial year (FY20).
The Syama roaster is now fully operational and operating at nameplate capacity.
More than 400,000 tonnes of underground ore has been stockpiled and is available for processing.
The Syama underground autonomous fleet is commissioned and Resolute is well positioned to deliver on Syama’s potential in 2020.
Total cash, bullion and listed investments as at 31 December 2019 was US$127 million.
Resolute’s total debt was US$394 million which is net of in-country receivables of US$34 million.
The company’s net debt position as at 31 December 2019 was US$267 million.
Production cost information for the December 2019 Quarter, including the preliminary unaudited FY19 AISC results, are currently being prepared.
It is expected that this information, along with FY20 production, AISC, and capital and exploration expenditure guidance, will be released on 13 January 2020.
MD and CEO, John Welborn, is pleased that the company had delivered a FY19 production result within 4% of annual guidance despite the Syama roaster being offline for the majority of the December 2019 Quarter.
“Syama sulphide production fell well short of our expectations in both the September and December quarters. Our operating and project teams have worked hard to offset lost production with strong performance from our other operating assets.
“The repairs to the Syama roaster are now complete and the sulphide circuit is ready for a strong performance in 2020. In addition to managing the challenge of the Syama roaster repairs, we have made significant progress in delivering on our strategy during 2019.
“We have now fully commissioned the Syama Underground Mine, refurbished the Syama sulphide circuit, acquired the Mako Gold Mine on highly value accretive terms, generated excellent exploration success at Tabakoroni, completed Stage 1 of the Ravenswood Expansion Project, and significantly progressed the strategic review of Bibiani.
“With a pipeline of growth opportunities and Syama positioned to deliver on its potential, I am highly optimistic for 2020”.