Resolute Mining Ltd (LSE:RSG) reiterated its gold production forecast for 2021 and said it expects to see improvements in operating and financial results following the implementation of key changes.
The company announced a fall in gold production to 163,118oz in the six months to June 30, from 217,946oz in the same period last year, after improvements in production at its Syama sulphide operations were offset by lower Syama oxide production and the open pit cutback at Mako.
All-in sustaining cost (AISC) rose to US$1,277/oz from US$1,020/oz, reflecting the lower production volumes.
Resolute repeated its 2021 production and cost guidance of 315,000oz-340,000oz at AISC of US$1,290/oz-US$1,365/oz.
Revenue in the first half came in at US$261.3mln, down from US$305.3mln, as gold sales declined to 151,503oz from 212,668oz. The average gold price received increased to $1,723/oz from $1,427/oz.
The company reported EBITDA of US$77.7mln compared with US$101.1mln the year before.
Net debt at the end of June stood at US$219.8mln, down from US$230.4mln at the end of December 2020, with cash and bullion of US$88.8mln.
Resolute said gold production from the sulphide circuit of the Syama gold mine in Mali increased by 25% in the first half, driven by record levels of processing and roaster throughput. However, this was offset by lower processed grade coinciding with an increase in ore mined from the sub-level cave. The grade reduction is expected to be temporary, the company said.
It said the Mako gold mine in Senegal continued to perform to plan, with production lower in accordance with expectations due to a cut-back of the main pit which will provide access to deeper sections of the deposit.
Resolute’s chief executive officer Stuart Gale said: “Our organisation has been through significant change during the first half of 2021 which has seen renewed enthusiasm and focus.
“Operational performance over this period is reflective of this as the Syama underground mine achieved record production in the June quarter which was matched by throughput at both the Syama sulphide and oxide processing circuits. Unfortunately, this performance was offset by lower mined grades at the Syama sulphide and oxide operations.
“We remain focussed on capitalising on our investments, unlocking the significant value within our operations to generate cash and strengthen the balance sheet. With a number of key initiatives progressed during the half and the implementation of significant changes to people, processes and systems, we expect to see improvements to both our operating and financial results.”