Gold miner Resolute Mining has not has not amended its current production or cost guidance in response to COVID-19.
The company’s gold production has not been impacted by government-regulated COVID-19 restrictions, with mining and processing operations continuing as normal at the Syama gold mine in Mali and Mako gold mine in Senegal.
At Syama, underground mining and haulage is performing to expectations and the sulphide processing circuit is fully operational. Open pit oxide mining operations are continuing at Tabakoroni with haulage and processing tracking to plan.
Exploration activity at Syama is continuing without interruption. Three drill rigs are currently active with exploration drilling focused on expanding the Tabakoroni underground resource and extending oxide resources at Tabakoroni and the Syama northern satellite deposits.
Meanwhile, at Mako, mining and processing operations are continuing with gold production being achieved using a reduced workforce.
At the Bibiani gold mine in Ghana, existing care and maintenance activities are continuing without interruption.
First drawdown from flexible low-cost syndicated loan facility
On 25 March 2020, Resolute has also successfully completed first drawdown under the new US$300 million flexible low-cost syndicated loan facility, which resolute executed on 20 March.
The new facility consists of a three-year $150 million revolving credit facility and a four-year $150 million term loan facility.
First drawdown has been used to refinance the company’s existing senior debt and completely repay the project Loan over the Mako gold mine. Repayment of the Mako project loan has resulted in the release of all security held by Taurus Funds Management over Mako. As a result, the full benefit of Mako’s positive cash flows are now immediately accessible to Resolute.
Successful completion of the refinancing simplifies Resolute’s capital structure, removes restrictive conditions associated with the project loan facility, reduces annual borrowing costs and provides Resolute with additional liquidity.
Following initial drawdown and completion of the company’s refinancing activities, the facility is expected to be drawn to approximately $250 million.