Resolute completes Ravenswood gold mine sale

Queensland has a new largest gold mine in the Ravenswood mine, after Ravenswood Gold completed a $350 million expansion at the site.

Resolute Mining has completed the sale of the Ravenswood gold mine in Queensland to a consortium comprising EMR Capital and Singapore-listed Golden Energy and Resources.

The transaction is valued at $100 million for upfront proceeds, with potential future upside payments of up to $200 million.

Resolute managing director and chief executive John Welborn said the sale allowed the company to focus on its African portfolio.

“Ravenswood has been a strong performer for Resolute for more than 15 years. During this time Resolute has mined and processed over 40 million tonnes of ore and produced almost two million ounces of gold,” Welborn said.

“We are confident Resolute’s legacy, and the interests of all stakeholders in Ravenswood, will be protected and enhanced by the new owners.”

Resolute subsequently updated its 2020 guidance to 430,000 ounces at an all-in sustaining cost (AISC) of $US980 ($1591.90) an ounce.

According to Resolute, this is consistent with previously released guidance for the Syama gold mine (260,000 ounces at an AISC of $US960 an ounce) and the Mako mine (160,000 ounces at an AISC of $US800 an ounce), both in West Africa.

Ravenswood is EMR’s third mining operation in Queensland. The company owns the Capricorn copper mine near Mt Isa, and with partners Adaro and Mitsui, the Kestrel coking coal mine in the Bowen Basin.

Golden Energy and Resources holds gold and coking coal investments in Australia via Westgold Resources and Stanmore Coal.

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