HomeNewsResolute Mining celebrates record A$213 million net profit

Resolute Mining celebrates record A$213 million net profit

The outstanding unaudited result, according to the Resolute Mining financial report, was generated from gold sales of 340 540 oz which delivered a gross profit from operations of $167 million, up 135% from FY15.

The record net profit was made up of the strong $167 million operating result and further boosted by $45 million in profits booked on the divestment of Resolute Mining’s residual Tanzanian interests in November 2015 – including the extinguishment of net liabilities ($3 million) and an accumulated foreign exchange gain recognised in equity up to the date of the sale ($42 million).

MD and CEO, John Welborn, congratulated the new Resolute Mining team on an outstanding transformational achievement.

“Resolute Mining has delivered above all expectations to generate a record net profit in FY16 of $213 million. The excellent result endorses our strategy of implementing strict discipline in the allocation of capital and applying urgency to the need to reduce costs in every area of our business,” says Welborn.

The company has been resolute in prioritising the repayment of debt and the accumulation of cash and bullion to strengthen its balance sheet and prepare for exciting investments in organic growth.

“In addition, the ability to revitalise Resolute and generate record profits has its foundation in the quality of the company’s assets, the expertise and experience of its people, and the implementation of a cultural revolution driven by a commitment to deliver enduring value to Resolute’s shareholders.”

The recent gold price strength has assisted a continuous improvement programme designed to fundamentally raise performance across the company.

Further enhancements and achievements are expected as the company aims to focus on the actions and strategies required to transform its gold assets into an outstanding business that can consistently provide exceptional rewards to shareholders, Welborn concluded.

Resolute Mining’s full audited accounts will be released in late August 2016.