Resolute Mining has produced over 110,000 ounces of gold from its gold mines in Africa during the March 2020 quarter, marking record quarterly production for the company.
The Australian-based company owns three gold mines in Africa – Syama in Mali, Mako in Senegal and Bibiani in Ghana.
Syama and Mako gold mines were responsible for nearly 100,000 ounces of Resolute’s quarterly production, with Syama producing 57,531 ounces of gold at an all-in sustaining cost (AISC) of $US1083/ounce ($1706) and Mako producing 42,186 ounces at an AISC of $US694/ounce.
Resolute chief executive John Welborn said the March 2020 quarter was a “turning point” for the business, with the record gold production in Africa and the sale of Ravenswood gold mine in Queensland.
Earlier this month, Resolute Mining sold its 15-years-in-operation Ravenswood mine to a consortium comprising EMR Capital and Golden Energy and Resources for an upfront proceed of $100 million, with potential future upside payments of up to $200 million.
“The milestones achieved during the March 2020 quarter will be significant in generating value for Rosolute. Syama and Mako are performing and have scope to improve. Exciting exploration results are demonstrating the potential for organic growth,” he said.
“The successful completion of the company’s refinancing activities provides the company with a stronger balance sheet and a simplified capital structure. Operational discipline will be rewarded in the current high gold price environment,” he added.
Welborn said his company was looking to refinance the revenue from Ravenswood’s sale on further expanding its operations in Africa.
Resolute’s growth plans include the completion of a new solar hybrid power station at Syama, with potential electricity cost savings of up to 40 per cent for the company.
In March, Resolute updated its 2020 guidance to 430,000 ounces at AISC of $US980/ounce to take into effect the effect of removed production from Ravenswood.
However, the company has maintained its guidance from its African assets, including an asset level guidance of 260,000 ounces at an AISC of US$960/ounce for Syama and 160,000 ounces at an AISC of $US800/ounce for Mako.