Resolute rises from missed guidance after Syama breakdown

The Syama gold mine. Image: Resolute Mining.

Resolute Mining aims to lift its gold production for the 2020 financial year to 500,000 ounces, up from its previous year’s guidance of 400,000 ounces.

The company expects sulphide production from the Syama gold mine in Mali, West Africa to be a strong performer during the 2020 fiscal year.

Resolute slipped off its 2019 financial year guidance with a gold production of 384,731 ounces and a higher all-in sustaining cost (AISC) of $US1090 ($1580) an ounce, exceeding its cost guidance of $US1020 an ounce.

This is reflective of the negative impacts of Syama’s unscheduled repair work to its roaster in the December quarter.

It has cost Resolute significant downtime, reduced gold production and additional unbudgeted expenditure, according to the company.

Resolute anticipates an accelerated production from Syama in the March quarter, now that its roaster is fully operational and running at nameplate capacity.

The company is set to continue working towards its targeted annual production rates of 300,000 ounces at an AISC of $US750 an ounce at Syama.

Resolute also plans to lift the mining rates at the Syama underground mine and add a future high-grade underground mine at the Tabakoroni mine, located 32 kilometres south of the Syama processing plant.

Exceptional high-grade intersections from drilling results have confirmed a large increase in the size and grade of Tabakoroni, according to Resolute.

“Production guidance for 2020 of 500,000 ounces is a significant milestone for Resolute,” company managing director John Welborn said.

“Following completion of the repairs at Syama in late 2019, we have started 2020 with all our operations operating at nameplate capacity and generating positive cashflows.

“Strong operating cashflows, and reduced capital demands, will support a stronger balance sheet and create further opportunities for Resolute’s growth and ambition.”

Resolute has also reached a higher processing capacity of five million tonnes a year at the Ravenswood mine in Queensland, thanks to its completed stage one expansion project.

The company aims to produce 80,000 ounces at an AISC of $US1200 an ounce from Ravenswood in the current financial year.

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