PRECIOUS METALS

Wet weather dampens Resolute's quarter

LSE and ASX-listed Resolute Mining has had a softer quarter than management had been hoping, with production of the 76,336 ounces in line with the June period but negatively impacted by above-average rainfall at Syama in Mali.

Syama, Mali

Syama, Mali

All-in sustaining costs were US$1499/oz.

Gold sales of 89,326oz at an average realised gold price of $1738/oz compared to the average spot price of $1791/oz.

Still, while September may have been softer than what had been hoped, guidance for the full year of 315,000-340,000oz at an AISC of $1290-1365/oz was maintained.

Output in the first three quarters totalled about 240,000oz.

Cash and bullion was $41.6 million at quarter's end, with net debt reduced to $212.9 million, including net debt repayments of $53.6 million during the period.

Resolute completed the sale of the Bibiani asset in Ghana last quarter for $90 million, with the first $30 million payment received.

Speaking from Dakar, Resolute CEO Stuart Gale conceded the Resolute mining business is "not quite where we want to be yet".

Gale was at the Mako operation in Senegal this week and travels this weekend to Mali and Resolute's key Syama project.

Capital markets firm Argonaut suggested "costs have been stabilised and reined in and output stabilised on the right side of the ledger".

However, there remains "still a lot of work to do".

Shares in Resolute closed unchanged at A42c in Australia, capitalising the company at $466 million.

The stock was at 80c 12 months ago.

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