Resolute Mining Ltd has presented gold production and preliminary cost results for the 12 months to 31 December 2020 (CY20) and production and cost guidance for the 12 months to 31 December 2021 (CY21).
Production to 31 December 2020
- December quarterly gold poured of 89 888 oz from:
- Syama Sulphide 35 747 oz.
- Syama Oxide 10 754 oz.
- Mako 43 387 oz.
- Total CY20 gold poured of 395 136 oz with total gold recovered of 400 713 oz.
- All-in sustaining cost (AISC) of US$1074/oz.
- Cash and bullion at 31 December 2020 of US$106 million.
Production and cost guidance for 12 months to 31 December 2021
- Gold production forecast to be 350 000 – 375 000 oz at a forecast AISC between US$1200/oz and US$1275/oz inclusive of corporate overheads from:
- Syama Sulphide gold poured of 155 000 oz to 170 000 oz at an AISC between US$1200/oz and US$1275/oz.
- Syama Oxide gold poured of 80 000 oz to 85 000 oz at an AISC between US$1050/oz and US$1090/oz.
- Mako gold poured of 115 000 oz to 120 000 oz at an AISC between US$1175/oz and US$1225/oz.
- Capital expenditure (non-sustaining) for operating assets forecast to be US$29 million.
- Investment in exploration and other development capital expenditure forecast to be US$6 million.
- Proceeds from the sale of Bibiani to be used to reduce debt.
CY20 production and preliminary results
Gold poured during the December 2020 quarter was 89 888 oz bringing total gold poured in CY20 to 395 136 oz which was marginally below the lower end of the revised CY20 production guidance of 400 000 oz. AISC for CY20 of US$1074/oz was maintained within the revised cost guidance range of US$980/oz to US$1080/oz.
The key impacts on production in the December quarter were at the Syama Gold Mine in Mali where the Cashew Satellite Oxide opencast operations experienced mining equipment availability and process plant material handling issues. In addition, the team at Syama managed the impacts of 15 days of industrial disruption during the quarter while maintaining production through both the sulfide and oxide processing plants by utilising available ore and redeploying staff as required.
Production from the Mako Gold Mine in Senegal continued in line with expectations producing 43 387 oz for the December quarter.
Cash and bullion at 31 December 2020 totalled US$106 million. During the quarter Resolute paid its first dividend, US$7 million, to the government of Senegal which reflects the positive cashflow which Mako has generated since it commenced operations in July 2018.
Total debt as at 31 December 2020 was US$337 million with net debt of US$231 million.
Full details and commentary on Resolute’s operating performance during the December 2020 quarter will be provided in the December 2020 quarterly activities report which will be released on 28 January 2021.
Resolute is forecasting total gold production for CY21 of 350 000 oz to 375 000 oz at an AISC/oz of US$1200/oz to US$1275/oz as follows:
Sulfide production is forecast to increase by more than 25% to between 155 000 and 170 000 oz with a resulting decrease in AISC to between US$1200/oz and US$1275/oz. A planned 36 day shutdown of the sulfide processing circuit has been scheduled during September and October 2021.
Syama Oxide production of 80 000 to 85 000 oz is forecast at an AISC between US$1050/oz and US$1090/oz from the Cashew and Tabakoroni satellite operations.
Tabakoroni Underground exploration and evaluation work continues with positive results received from recent drilling programmes. Further updates to the Tabakoroni Underground reserve and resource are expected during January which will support an update to the Syama life of mine production schedule.
CY21 forecast production of 115 000 oz to 120 000 oz at an AISC between US$1175/oz and US$1225/oz. Production for the year will be lower and unit costs higher than 2020, as a cut-back of the main pit is undertaken which will provide access to deeper sections of the deposit and increase the life of mine, refer to the Updated Life of Mine Plan for Mako release (see ASX Announcement 20 July 2020).
Activity is focused on extension and identification of oxide satellite operations at Syama and extension of Mako’s mine life.
Non-sustaining capital expenditure is forecast to be US$29 million inclusive of Mako cut back of US$13 million and capitalised exploration expenditure of US$6 million. Sustaining capital expenditure included in the AISC is US$49 million.
Read the article online at: https://www.globalminingreview.com/finance-business/15012021/resolute-mining-provide-production-update/