31
January 2024
Q4
2023 & Full-Year 2023 Activities Report
For the Quarter ending 31 December
2023 ('Q4 2023', 'December Quarter' or 'the Quarter')
2023 Highlights
·
Zero LTIs in
2023; TRIFR for year-end of 1.71,
compared to 0.62 at the end of 2022
·
Full-year group
gold production was 330,994 oz (353,069oz in 2022 which included an extra 21koz of residual
gold processed from legacy ponds); Q4 2023 gold poured of 80,307 oz
(Q3 2023: 74,056 oz) driven by improved grades across all
mines
·
Group 2023 All-In
Sustaining Cost (AISC) of $1,470/oz (2022: $1,498/oz); Q4 2023 AISC of $1,480/oz (Q3 2023:
$1,459/oz)
·
2023 Capital
Expenditure of $70.4 million ($66.2
million in 2022) consisting of $40.3 million non-sustaining, $23.9
million sustaining and $6.2 million exploration spend in line with
revised guidance of $70 million (original guidance $88
million)
·
Quarterly capital
expenditure of $19.4 million (Q3
2023: $16.3 million) with non-sustaining capital of $13.5 million,
sustaining capital expenditure of $3.0 million and exploration
spend of $2.9 million
·
Unaudited 2023
revenue of approximately $630 million ($651 million in 2022): Q4 2023 revenue of approximately $155
million generated from gold sales of 79,480oz at an average
realised gold price of $1,954/oz (Q3 2023: 76,524oz at an average
realised gold price of $1,917/oz)
·
Full year 2023
EBITDA of approximately $165 million ($148 million in 2022) driven by higher gold price and lower
costs
·
Full-year 2023
and Q4 2023 operating cash flows of $142.0 million ($90.9 million
for 2022) and $30.8 million ($22.8 million for Q3)
respectively
·
Net Cash of $14.0
million (up from $2.2 million at
Q3), including Cash and Bullion of $85.2 million
2024 Guidance
·
2024 Group
production guidance of 345,000 - 365,000 oz at an AISC of $1,300
-1,400/oz
·
2024 Group
capital expenditure guidance of $115-145 million
split between Syama, Mako and Exploration of
$90-110 million, $15-20 million and $10-15 million
respectively
Note: Unless otherwise
stated, all dollar figures are United States dollars
($).
Resolute Mining Limited (Resolute,
the Company or the Group) (ASX/LSE: RSG), is pleased to present its
Quarterly Activities Report for the period ended 31 December
2023.
Terry Holohan, CEO and Managing Director,
commented,
"In 2023 we
achieved several milestones in our ongoing business turnaround.
During the year we became cash positive, declared a maiden Ore
Reserve at Syama North and approved the first phase of expansion at
Syama funded out of free cash flow. In addition, we discovered
potentially economic gold mineralisation in both Senegal and
Guinea.
The fourth
quarter recovered from the Q2/Q3 2023 production challenges with
grades improving and returning to the design levels across all
operations. In 2023 overall the Syama underground grades were on
average lower than originally expected however improvements were
seen during the latter part of the 4th quarter. The cave flow
model, which has only been in use for two years, is presently
being recalibrated to ensure the life of mine
can be reliably forecasted.
Mako
performed better than expected for the quarter and the mine
exceeded its 117 koz full-year guidance.
For 2024 we
expect group production between 345,000 - 365,000 oz of gold at
between $1,300 - 1,400/oz AISC with continuous improvements
throughout the year. Our 2024 guidance has been updated from
the forecast provided in Q4 2023 due to a larger
expected contribution from Mako and a more conservative
contribution from Syama open pit operations where we will be
accessing ores from several smaller satellite pits as well as
pausing both the oxide and sulphide plants for engineering tie-ins
with the Phase I Expansion, also referred to as the Syama Sulphide
Conversion Project (SSCP), which remains on track for commissioning
in H1 2025.
In
2024 our production guidance for Syama of 205,000-215,000oz is
consistent to that which was achieved in 2023. This includes an
eleven-day shutdown in Q1 for scheduled Roaster and Mill
maintenance and enhancements as well as shutdowns required for
construction of the Phase 1 Expansion project which is expected to
be at full capacity by H2 2025.
At Mako gold
production in 2024 will be between 140,000 - 150,000 oz as we
access the high-grade (>2 g/t) areas of the pit now
accessible due to the $25 million of stripping virtually completed
in 2023. Mako gold production will be weighted towards the second
half of the year (approximately 55%) due to systematic grade
increases as mining progresses through the
orebody.
In 2023
Resolute reduced net debt by $45.6 million and ended the year with
net cash of $14 million.
Our key focus
for 2024 is to continue the sustainable reduction in costs across
the Group, deliver the Syama Phase I Expansion and progress a
near-mine satellite resource to extend the Mako mine beyond
2026."
Investor and analyst conference
call
Resolute will host a conference call for
investors, analysts, and media on Wednesday, 31 January 2024, to
discuss the Company's Quarterly Activities Report for the period
ending 31 December 2023. This call will conclude with a
question-and-answer session.
Conference Call (pre-registration required)
Conference Call: 8:00pm (AEDT, Sydney) /
9:00am (GMT, London)
Pre-Registration Link:
https://www.netroadshow.com/events/login?show=c88118fd&confId=59899
Participants will receive a calendar
invite with dial-in details once the pre-registration process is
complete. A presentation, to accompany the call, will
be available for download on the Company's website:
https://www.rml.com.au/investors/presentations/
Operations Overview
Group Summary
|
Units
|
December
|
September
|
December
|
Full Year
|
Full Year
|
2023
Quarter
|
2023
Quarter
|
2022
Quarter
|
2023
|
2022
|
|
|
|
|
|
|
|
Ore Mined
|
t
|
1,735,284
|
1,412,295
|
1,831,293
|
6,608,501
|
6,846,370
|
Mined Grade
|
g/t
|
2.02
|
1.97
|
2.03
|
2.08
|
1.88
|
|
|
|
|
|
|
|
Ore Processed
|
t
|
1,566,619
|
1,463,007
|
1,536,503
|
5,962,245
|
5,730,792
|
Processed Grade
|
g/t
|
1.87
|
1.90
|
2.10
|
2.06
|
2.11
|
Recovery
|
%
|
85
|
85
|
86
|
85
|
86
|
Gold Poured
|
oz
|
80,307
|
74,056
|
91,777
|
330,994
|
353,069
|
|
|
|
|
|
|
|
Gold Sold
|
oz
|
79,480
|
76,524
|
93,326
|
329,061
|
357,447
|
Average Realised Price
|
$/oz
|
1,954
|
1,917
|
1,817
|
1,920
|
1,819
|
|
|
|
|
|
|
|
Total Capital Expenditure
|
$m
|
16.5
|
14.3
|
11.6
|
64.2
|
66.2
|
Net (Cash)/Debt
|
$m
|
(14.0)
|
(2.2)
|
31.6
|
(14.0)
|
31.6
|
AISC
|
$/oz
|
1,480
|
1,459
|
1,547
|
1,470
|
1,498
|
Table 1: Resolute Group Operational
Performance Summary (Unaudited)
Environmental Social Governance
Resolute's TRIFR as of 31 December
2023 was 1.71, an increase compared to the previous Quarter due to
one recordable injury during the quarter. At year-end the
Group had operated 2.3 years LTI-Free - this being 840 days at
Mako; with Syama operating 1,787 days LTI-Free.
Resolute recorded no significant
environmental incidents, regulatory non-compliances, or grievances
in Q4 2023. We successfully passed our group-wide ISO 14001 &
45001 certifications surveillance audits and completed climate
change risk assessments, where action plans are now being
formulated to engineer our mines to be more robust to off-set the
expected higher ambient temperatures and frequency of major
rainfall events going forward, and human rights risk
assessments.
Syama, Mali
Syama Sulphide
Summary
|
Units
|
December
|
September
|
December
|
Full Year
|
Full Year
|
2023
Quarter
|
2023
Quarter
|
2022
Quarter
|
2023
|
2022
|
|
|
|
|
|
|
|
Ore Mined
|
t
|
668,663
|
574,560
|
665,297
|
2,396,913
|
2,294,680
|
Mined Grade
|
g/t
|
2.45
|
2.32
|
2.74
|
2.62
|
2.59
|
|
|
|
|
|
|
|
Ore Processed
|
t
|
603,297
|
586,166
|
561,475
|
2,264,443
|
2,100,958
|
Processed Grade
|
g/t
|
2.39
|
2.39
|
2.83
|
2.65
|
2.68
|
Recovery
|
%
|
77
|
78
|
79
|
78
|
78
|
Gold Poured
|
oz
|
36,720
|
34,805
|
43,508
|
151,256
|
161,479
|
Gold Sold
|
oz
|
36,300
|
36,016
|
44,313
|
150,137
|
164,582
|
|
|
|
|
|
|
|
Total Capital Expenditure
|
$m
|
8.3
|
6.5
|
6.3
|
28.5
|
36.8
|
AISC
|
$/oz
|
1,398
|
1,401
|
1,400
|
1,390
|
1,410
|
Table 2: Sulphide Production
and Cost Summary (Unaudited)
Total gold poured of 151,256 oz in
2023 was 6% lower than the prior year despite the similar mining
and milling metrics. Gold production in 2022 was positively
impacted by over 21koz of residual gold (GIC) processed from legacy
ponds containing high-grade sulphide concentrate material which had
been largely exhausted by Q2 2023.
As expected, quarterly gold
production increased by 6% to 36,720 oz in Q4 2023 due to higher
tonnes milled while processed grade and recovery rate remained
flat. Ore tonnes processed was 603kt which was a 3% increase
compared to Q3 due to crusher circuit improvements.
The sub-level cave (SLC) underground
operation in 2023 achieved 4% higher production and at a higher
grade than the prior year with mined tonnage of approximately
2.4Mt. This was due to the productivity improvements around the
truck fill and loader operations and the addition of two new trucks
in H2.
Tonnes mined in Q4 increased by 16%,
from Q3, to 669kt. Mined grades also increased significantly from
2.32g/t in Q3 to 2.45g/t in Q4. This was due to the ongoing
development to improve mining directions in existing stopes to
provide more optimal mining of higher-grade material whilst leaving
waste blocks behind.
Yearly capital expenditure of $28.5
million was 23% lower than the prior year due to a management
review of capital requirements at Syama. During Q4 2023 capital
expenditure was $8.3 million, an increase of $1.8 million from the
previous quarter, consisting of $6.7 million of capital items,
mainly made up of items relating to the Syama sulphide expansion
project and other mechanical parts. Additionally, the sulphide
operation incurred $1.6 million of capitalised waste.
The approximate AISC at the Syama
Sulphide of $1,390/oz for 2023 was 1.5% lower than in 2022
($1,410/oz) despite 10koz fewer ounces being produced and 21 koz
being released from GIC in 2022. The decrease in AISC in 2023 is
attributed to the ongoing cost saving initiatives. Q4 2023 AISC
decreased from $1,401/oz to $1,398/oz due to slightly higher gold
production.
Syama Oxide
Summary
|
Units
|
December
|
September
|
December
|
Full Year
|
Full Year
|
2023
Quarter
|
2023
Quarter
|
2022
Quarter
|
2023
|
2022
|
|
|
|
|
|
|
|
Ore Mined
|
t
|
526,993
|
344,478
|
384,996
|
1,843,780
|
1,694,521
|
Mined Grade
|
g/t
|
1.59
|
1.57
|
1.55
|
1.64
|
1.33
|
|
|
|
|
|
|
|
Ore Processed
|
t
|
429,283
|
340,450
|
430,882
|
1,579,581
|
1,579,754
|
Processed Grade
|
g/t
|
1.29
|
1.27
|
1.41
|
1.42
|
1.35
|
Recovery
|
%
|
87
|
86
|
88
|
84
|
89
|
Gold Poured
|
oz
|
15,170
|
11,664
|
17,834
|
59,891
|
62,165
|
Gold Sold
|
oz
|
15,170
|
11,734
|
19,704
|
58,974
|
63,235
|
|
|
|
|
|
|
|
Total Capital Expenditure
|
$m
|
-
|
0.7
|
-
|
7.9
|
8.6
|
AISC
|
$/oz
|
1,452
|
1,478
|
1,693
|
1,631
|
1,801
|
Table 3: Oxide Production and
Cost Summary (Unaudited)
2023 was a challenging year for the Syama oxide
operation as the quality and quantity of the oxide Ore Reserves, as
expected, have been diminishing over the past two years. The
reduction in oxide ore is the rationale for the Phase 1 expansion
to replace these oxide ounces with higher margin sulphides from the
recently discovered high grade (2.9 g/t) Syama North pit from
2025.
During 2023 there was an increase in tonnes
processed due to improvements in the crushing and milling circuits
and the softer nature of the material processed. The decreased
oxide recovery from 2022 was due to pockets of 'transitional' ores
being processed in Q2 2023 from the final cuts in the Tabakoroni
pits containing marginally higher levels of organic
carbon.
During the December quarter, oxide operations
produced 15,170oz, an increase of 30% compared to the prior
quarter, due to higher ore tonnes processed at higher grades while
recovery remained flat. During Q4 ore tonnes mined increased
significantly, as expected, from 344kt to 527kt following the end
of the challenging rainy season where record levels of rainfall
were recorded in single events. Ore tonnes continued to be sourced
mainly from the A21 pit supplemented by the Paysans pit. The mined
grade increased slightly by 2% while recovery remained
flat.
Yearly capital expenditure of $7.9 million was
8% lower than the prior year due to a lower strip ratio resulting
in lower waste capitalised. During Q4 2023 there was no capital
expenditure due to a lower strip ratio (year to date capital
expenditure is made up of mainly waste capitalisation).
The approximate AISC for Syama Oxide in 2023 of
$1,631/oz was 9% lower than in 2022 ($1,801/oz), despite lower
ounces produced, due to the ongoing cost saving initiatives. Q4
2023 AISC decreased from $1,452/oz to $1,478/oz due to higher gold
production and no sustaining capex.
Mako, Senegal
Summary
|
Units
|
December
|
September
|
December
|
Full Year
|
Full Year
|
2023
Quarter
|
2023
Quarter
|
2022
Quarter
|
2023
|
2022
|
|
|
|
|
|
|
|
Ore Mined
|
t
|
539,628
|
493,257
|
781,000
|
2,367,808
|
2,857,169
|
Mined Grade
|
g/t
|
1.89
|
1.84
|
1.68
|
1.89
|
1.79
|
|
|
|
|
|
|
|
Ore Processed
|
t
|
534,039
|
536,391
|
544,146
|
2,118,221
|
2,050,080
|
Processed Grade
|
g/t
|
1.74
|
1.75
|
1.91
|
1.91
|
2.11
|
Recovery
|
%
|
93
|
91
|
92
|
92
|
93
|
Gold Poured
|
oz
|
28,417
|
27,587
|
30,435
|
119,847
|
129,425
|
Gold Sold
|
oz
|
28,010
|
28,774
|
29,309
|
119,950
|
129,630
|
|
|
|
|
|
|
|
Total Capital Expenditure
|
$m
|
8.2
|
7.1
|
5.3
|
27.8
|
20.8
|
AISC
|
$/oz
|
1,483
|
1,407
|
1,520
|
1,373
|
1,318
|
|
|
|
|
|
|
| |
Table 4: Mako Production and
Cost Summary (Unaudited)
The 2023 gold pour of 119,847 oz beat the
117,000 oz guidance. Lower gold production was expected in 2023 due
to the major ($25m) focus on waste stripping. Stage 6 was completed
in Q4 and mining of higher-grade Stage 7 ore commenced in Q4 as
well. In-pit dumping of waste also commenced in Q423, approximately
3 months ahead of schedule, having a positive impact on costs going
forward. In 2024 we expect gold production to be at least 15%
higher to 140,000 - 150,000 oz driven by higher grades (>2 g/t
Au) areas that have been exposed in 2023.
Q4 gold production increased from the prior
quarter to 28,417 oz despite the three-day mill reline shutdown
which was rescheduled from Q3. Ore tonnes processed remained flat
due to the increased throughput of softer felsic material. Recovery
increased from 91% to 93% due to better recovery rates associated
with felsic materials processed and the optimisation of the new (Q3
2023) oxygen plant while processed grade remained flat.
Ore mined for 2023 was 17% lower than in 2022
as the pit cutback was completed. The last portion of stripping is
expected to finish at the end of Q1 2024. During Q4 2023 ore tonnes
mined increased by 9% to 540kt due to being exposed by the major
strip.
2023 capital expenditure of $27.8 million was
34% higher than in 2022 due to $24 million of waste stripping and
purchase of the power plant. In Q4 capital expenditure was $8.2
million (vs $7.1 million in Q3). The amount spent in the quarter
was mainly due to $6.3 million in capitalised waste incurred due to
waste stripping campaign at the Stage 7 phase of the pit as well as
$1.1 million spend on a new engine and cooling system for the
powerhouse to off-set the global warming effects on the generator
efficiencies. Additionally, $0.7 million was spent in relation to
the oxygen plant and sparging system for the CIL, which was
commissioned in the prior quarter, replacing the more expensive
chemical oxidants.
The approximate 2023 AISC of $1,373/oz was
significantly below guidance of $1,470/oz due to cost improvements.
During Q4 2023 the AISC increased to $1,483/oz from $1,407/oz in
the previous quarter. This was in line with expectations, due to
favourable stockpile adjustments that were realised in Q3 2023
reducing the AISC in that period.
Exploration
Total exploration expenditure in 2023 was $18.1
million, of which $6.3 million was capitalised and $11.8 million
was expensed. The division of exploration expenditure between sites
was Mali $11.3 million; Senegal $4.6 million and Guinea $2.2
million.
Total exploration spend for the December
quarter was $7.5 million. This was made up of $2.9 million of
capital mainly focused on drilling at Syama North, and $4.6 million
of exploration expense which was evenly split between exploration
targets in Guinea and near-mine targets in Senegal.
Senegal
Exploration
In 2023 $4.6 million was spent on exploration
in Senegal. This involved RC drilling at Mako and Laminia. In 2023
the Company commenced its first Reverse Circulation drilling
campaign at Tomboronkoto in mid-2023. A total of 54 holes for
8,900 metres was completed with the program ending in October 2023.
This was the first program completed by Resolute on the prospect
and was focused on better defining the gold mineralisation zone identified by previous explorers including
Randgold Resources.
Resolute announced the maiden
Mineral Resource Estimate at the Tomboronkoto Prospect on 24
January 2024 of 10.7Mt grading 1.2g/t Au for 403,000oz was
estimated at a cut-off of 0.5g/t (in-line with the current cut-off
grade used to define Mako's Mineral Resources). Resolute is
pleased with the progress being made in Senegal to extend the life
of the Mako operation.
Mali Exploration
Drilling at the Syama North Project
in Mali continued throughout Q4 in 2023 to extend and upgrade the
open pit potential of the Mineral Resource.
Exploration drilling targeting oxide
mineral resources continued on the Syama and Finkolo exploitation
permits in Q4 with encouraging results from newly identified
prospects at Zozani and Djigui. Follow up drilling at these
prospects will commence in Q1 2024.
In September 2023 Resolute released
an updated Mineral Resource Estimate for Syama North following the
infill diamond and RC drilling campaign conducted in the first half
of 2023. Measured and Indicated Resources increased by 47% to 2.72
million oz grading 3.0g/t, from 1.86 million oz grading
3.0g/t.
The majority of the Mineral Resource
is located within 200m of surface highlighting the open pit
potential of the deposit. Syama North is key to underpinning the
250,000 oz per annum SSCP with high-grade open pit ore.
Guinea Exploration
In 2023 $2.2 million was spent on exploration
activities in Guinea. These included AC drilling at the
Siguiri-Kouroussa permit and RC & DD drilling at the
Niagassola - Mansala prospect.
Diamond drilling commenced at the Mansala
Prospect in Guinea during Q4 in 2023. The drilling is planned
to provide additional geological information on the mineralisation
identified by RC drilling earlier in 2023. Preliminary
results are encouraging and drilling is continuing in Q1
2024. A market announcement detailing the results from this
drilling will be released later in 2024.
Key
Additional Activities in 2023
2023 was a successful year for Resolute, namely
with the large increase in the Measured and Indicated Mineral
Resources at Syama North. The maiden Ore Reserves have underpinned
the approved Syama Phase 1 Expansion project and will underwrite
the next Phase 2 Expansion where the study has
commenced.
Syama Phase I Expansion
During 2023 technical studies were performed
and the approval for long lead items given for the Phase 1
Expansion Project. The project will increase the sulphide
processing capacity to 4.0Mtpa allowing the high-grade Syama North
sulphide resource to be exploited via open pit mining.
The overall objective is to increase
the production profile of Syama to over 250koz per annum and reduce
the cost profile by up to $200/oz.
The production mix, mine design and schedule
continue to be optimised to maximise cash flow over the project
life. Construction is commencing in Q1 2024 with commissioning
scheduled in H1 2025.
Financial Highlights and Balance Sheet
Activities
Annual Cash and Bullion Movements
*Included in Operating Cash flows are $3.4
million of royalties, $4.2 million of VAT and taxes, and movements
in Bullion.
Chart 1: Annual Cash and
Bullion Movements (Unaudited)
Net
Debt Summary
Net cash at 31 December 2023 of $14.0 million
was an $11.8m increase over 30 September 2023 net cash position of
$2.2 million. The Company's operating cash flow after working
capital changes in 2023 was $142.0 million vs $90.9 million in
2022) due to higher gold prices realised, as well as the
positive impact of the ongoing cost
reduction across the group.
Available liquidity of $165.2
($158.0 million in prior quarter) including cash of $67.6 million,
bullion of $17.6 million, and undrawn RCF of $80.0 million. Total
borrowings at 31 December 2023 were $71.2 million, comprising $25.0
million on the Term Loan Facility and $46.2 million on the
overdraft facilities in Mali.
During 2023 Resolute made $55
million in principal repayments ($30 million and $25 million in Q1
and Q3 respectively). $25 million remains outstanding on the Term
Loan portion of the Syndicated Facility Agreement and is due to be
paid in March 2024.
Selected Financial Highlights
Unaudited 2023 revenue of
approximately $630 million (vs $651 million in 2022) with 329,061
oz of gold sold at an average price of approximately $1,920/oz
(2022: $1,819/oz). 2023 revenue is lower due to lower gold
sales but has been partially offset by higher gold
price.
2023 EBITDA of approximately $165
million (vs $148 million in 2022) driven by higher gold price
environment, lower unit costs and, in H1 2023, the reversal of
historic provisions related to the tax exoneration timing dispute
in Senegal resulting in a onetime non-cash benefit of $16.4
million.
Hedging
At 31 December 2023, Resolute's
forward sales commitments were:
|
US Dollar Forward
Sales
|
Forward
Price
($/oz)
|
Delivery
(oz)
|
March 2024
|
$1,955
|
48,500
|
Total
|
$1,939
|
107,500
|
Table 5: Committed Hedging
Forward Sales in US dollars
As well as the above, the Company
has in place 12,000oz of zero cost collars maturing in the March
2024 Quarter. These comprise put options at an average strike price
of $1,600/oz and call options with an average strike price of
$1,873/oz. Resolute's forward sales commitments end in March
2024.
2024 Guidance
For 2024 Resolute expects total
gold production of 345,000 - 365,000oz at an AISC of $1,300 -
1,400/oz. Group total capital expenditure is expected to be between
$115-145 million in 2024 including capitalised exploration
expenditure.
|
Gold Production
(oz)
|
AISC ($/oz)
|
Syama
|
205,000 -
215,000
|
1,400 -
1,500
|
Mako
|
140,000 -
150,000
|
1,100 -
1,200
|
Total
|
345,000 -
365,000
|
1,300 -
1,400
|
Table 6: Summary of 2024
production and cost guidance
(US$ million)
|
Non-
Sustaining
|
Sustaining
|
Total
|
Syama
|
80-90
|
10-20
|
90-110
|
Mako
|
10-15
|
5
|
15-20
|
Exploration
|
-
|
-
|
10-15
|
Total
|
90-105
|
15-25
|
115-145
|
Table 7: Summary of 2024
capital expenditure guidance
Syama Guidance
Production in 2024 from Syama is
expected to be in line with 2023 for both the Sulphide and Oxide
operations. The Company is providing 2024 production guidance of
205,000 - 215,000 oz at an AISC of $1,400 - 1,500/oz. This compares
to 225,000 - 235,000oz at AISC of $1,300 - 1,400/oz provided in the
three-year forecast (published in October 2023) due to; a revised
near term mine plan reflecting marginally lower grades from the
underground mine, as a result of knowledge gained in H2 2023, and
more cautious plant throughput projections during both the wet
season and periods of maintenance activities. Moreover, both the
sulphide and oxide plants will be halted intermittently (on
scheduled planned maintenance shuts) for engineering tie-ins with
the Phase I expansion project expected to be commissioned in H1 2025. Production for Syama sulphide and
oxide is expected to be 155,000 - 160,000oz and 50,000 - 55,000oz
respectively.
Total capital expenditure at Syama
in 2024 is expected to be $90 - 110 million. Which comprises of
approximately $55 million for the Phase I
Expansion (non-sustaining) with the remaining capex relating to
fleet replacement, TSF lifts and waste stripping.
Mako Guidance
Production at Mako for 2024 is
expected to be 140,000 - 150,000 oz at an AISC of $1,100 -
1,200/oz. Production guidance is approximately 20% higher than 2023
production of 119koz due to higher grade ore accessed and processed
from stage 7. Gold production is expected to be weighted towards H2
- approximately 55% of 2024 production - as higher-grade zones are
accessed.
The decrease in AISC in 2024 to
$1,100 - 1,200/oz (2023: $1,373/oz) is due to higher grades and
lower strip ratios which are expected through to the end of 2025.
This is lower than what was provided in the three-year forecast ($1,200-1,300/oz) due to the higher
forecast gold production.
Total capital expenditure at Mako is
expected to be $15-20 million comprised of final waste stripping
and general sustaining expenditure. This is marginally higher than
what was provided in the three-year forecast in October 2023
($10-15 million) due to a change in the mining schedule to bring
production forward resulting in a higher strip ratio in Q1
2024.
Exploration Guidance
The overall Group 2024 exploration
budget is $15-18 million of which $10-15 million is capital
expenditure and the remainder being
operating expenditures.
In Mali, approximately $7 million is
allocated for continued exploration of oxides and sulphides at
Syama North (on the Syama Permit) and exploration on the Finkolo
Permit to the south.
In Senegal, $6 million of
exploration has been budgeted in 2024 with a focus on Tomboronkoto
where a maiden mineral resource estimate has been produced and at
the Bantaco JV. The $4 million budget for Tomboronkoto is to both
infill drill to convert Inferred resources to the Indicated
category and further drilling to expand the resource. At Bantaco
the 2024 budget of $1.5 million will include a 10,000m RC drilling
program, over areas of known outcropping mineralisation. The
remaining budget will be used across other projects in Senegal
including at Laminia.
In Guinea, approximately $2.5
million is budgeted for 2024. The primary aim for 2024 is to
outline an Inferred resource at the Mansala Prospect (Niagassolo
Permit). The target for this is H1 2024.
Updated 3-Year Forecast
Based on continued work in
optimizing mine plans at both sites, Resolute will provide a
revised three-year production and cost forecast in due
course.
About Resolute
Resolute Mining (ASX/LSE: RSG) is an African
gold miner, developer, and explorer with more than 30 years of
experience across Australia and Africa. To date the Company has
produced over nine million ounces of gold. It currently operates
the Syama Gold Mine in Mali and the Mako Gold Mine in Senegal.
Resolute's gold production and cost guidance for 2023 is
330,000-340,000oz at an AISC of $1,480/oz.
Through all its activities, sustainability is
the core value at Resolute. This means that protecting the
environment, providing a safe and productive working environment
for employees, uplifting host communities, and practicing good
corporate governance are non-negotiable priorities. Resolute's
commitment to sustainability and good corporate citizenship has
been cemented through its adoption of and adherence to the
Responsible Gold Mining Principles (RGMPs). This framework, which
sets out clear expectations for consumers, investors, and the gold
supply chain as to what constitutes responsible gold mining, is an
initiative of the World Gold Council of which Resolute has been a
full member since 2017. The Company is on track to reach full
compliance with these RGMPs in 2023.
Appendix
December 2023 Quarter Production and Costs
(unaudited)
|
Units
|
Syama
sulphide
|
Syama oxide
|
Syama Total
|
Mako
|
Group
Total
|
|
|
UG Lateral Development
|
m
|
1,381
|
-
|
1,381
|
-
|
1,381
|
|
UG Vertical Development
|
m
|
-
|
-
|
-
|
-
|
-
|
|
Total UG Development
|
m
|
1,381
|
-
|
1,381
|
-
|
1,381
|
|
UG Ore Mined
|
t
|
668,663
|
-
|
668,663
|
-
|
668,663
|
|
UG Grade Mined
|
g/t
|
2.45
|
-
|
2.45
|
-
|
2.45
|
|
OP Operating Waste
|
BCM
|
-
|
680,337
|
680,337
|
1,993,241
|
2,673,578
|
|
OP Ore Mined
|
BCM
|
-
|
227,170
|
277,170
|
191,094
|
468,264
|
|
OP Grade Mined
|
g/t
|
-
|
1.59
|
1.59
|
1.89
|
1.72
|
|
Total Ore Mined
|
t
|
668,663
|
526,993
|
1,195,656
|
539,628
|
1,735,284
|
|
Total Tonnes Processed
|
t
|
603,297
|
429,283
|
1,032,580
|
534,039
|
1,566,619
|
|
Grade Processed
|
g/t
|
2.39
|
1.29
|
1.94
|
1.74
|
1.87
|
|
Recovery
|
%
|
77
|
87
|
81
|
93
|
85
|
|
Gold Recovered
|
oz
|
35,794
|
15,545
|
51,339
|
27,749
|
79,088
|
|
Gold in Circuit
Drawdown/(Addition)
|
oz
|
926
|
(375)
|
551
|
668
|
1,219
|
|
Gold Poured
|
oz
|
36,720
|
15,170
|
51,890
|
28,417
|
80,307
|
|
Gold Bullion in Metal Account
Movement (Increase)/Decrease
|
oz
|
(420)
|
|
(420)
|
(407)
|
(827)
|
|
Gold Sold
|
oz
|
36,300
|
15,170
|
51,470
|
28,010
|
79,480
|
|
Achieved Gold Price
|
$/oz
|
-
|
-
|
-
|
-
|
1,954
|
|
Mining
|
$/oz
|
459
|
490
|
468
|
662
|
537
|
|
Processing
|
$/oz
|
553
|
602
|
568
|
481
|
537
|
|
Site Administration
|
$/oz
|
137
|
233
|
165
|
128
|
152
|
|
Site Operating Costs
|
$/oz
|
1,149
|
1,325
|
1,201
|
1,271
|
1,226
|
|
Royalties
|
$/oz
|
116
|
116
|
116
|
95
|
110
|
|
By-Product Credits + Corp
Admin
|
$/oz
|
(2)
|
(2)
|
(2)
|
-
|
39
|
|
Total Cash Operating
Costs
|
$/oz
|
1,263
|
1,439
|
1,315
|
1,366
|
1,375
|
|
Sustaining Capital
|
$/oz
|
69
|
-
|
49
|
28
|
41
|
|
Non-cash adjustments
|
$/oz
|
66
|
13
|
51
|
89
|
64
|
|
All-In Sustaining Cost (AISC)
AISC is calculated on gold poured
|
$/oz
|
1,398
|
1,452
|
1,415
|
1,483
|
1,480
|
|
Year-to-date 2023 Production and Costs
(unaudited)
|
Units
|
Syama
sulphide
|
Syama oxide
|
Syama Total
|
Mako
|
Group
Total
|
|
|
UG Lateral Development
|
m
|
5,072
|
-
|
5,072
|
-
|
5,072
|
|
UG Vertical Development
|
m
|
20
|
-
|
20
|
-
|
20
|
|
Total UG Development
|
m
|
5,092
|
-
|
5,092
|
-
|
5,092
|
|
UG Ore Mined
|
t
|
2,396,913
|
-
|
2,396,913
|
-
|
2,396,913
|
|
UG Grade Mined
|
g/t
|
2.62
|
-
|
2.62
|
-
|
2.62
|
|
OP Operating Waste
|
BCM
|
-
|
5,517,797
|
5,517,797
|
7,514,690
|
13,032,487
|
|
OP Ore Mined
|
BCM
|
-
|
929,468
|
929,468
|
836,112
|
1,765,580
|
|
OP Grade Mined
|
g/t
|
-
|
1.64
|
1.63
|
1.89
|
1.76
|
|
Total Ore Mined
|
t
|
2,396,913
|
1,843,780
|
4,240,693
|
2,367,808
|
6,608,501
|
|
Total Tonnes Processed
|
t
|
2,264,443
|
1,579,581
|
3,844,024
|
2,118,221
|
5,962,245
|
|
Grade Processed
|
g/t
|
2.65
|
1.42
|
2.15
|
1.91
|
2.06
|
|
Recovery
|
%
|
78
|
84
|
81
|
92
|
85
|
|
Gold Recovered
|
oz
|
151,358
|
60,773
|
212,131
|
119,820
|
331,951
|
|
Gold in Circuit
Drawdown/(Addition)
|
oz
|
(102)
|
(882)
|
(984)
|
26
|
(957)
|
|
Gold Poured
|
oz
|
151,256
|
59,891
|
211,147
|
119,846
|
330,994
|
|
Gold Bullion in Metal Account
Movement (Increase)/Decrease
|
oz
|
(1,119)
|
(917)
|
(2,036)
|
104
|
(1,933)
|
|
Gold Sold
|
oz
|
150,137
|
58,974
|
209,111
|
119,950
|
329,061
|
|
Achieved Gold Price
|
$/oz
|
|
|
|
|
1,920
|
|
Mining
|
$/oz
|
486
|
541
|
501
|
691
|
570
|
|
Processing
|
$/oz
|
533
|
614
|
556
|
439
|
514
|
|
Site Administration
|
$/oz
|
152
|
280
|
188
|
125
|
165
|
|
Site Operating Costs
|
$/oz
|
1,171
|
1,435
|
1,245
|
1,255
|
1,249
|
|
Royalties
|
$/oz
|
114
|
113
|
114
|
96
|
110
|
|
By-Product Credits + Corp
Admin
|
$/oz
|
(2)
|
(2)
|
(2)
|
-
|
39
|
|
Total Cash Operating
Costs
|
$/oz
|
1,283
|
1,546
|
1,357
|
1,351
|
1,398
|
|
Sustaining Capital
|
$/oz
|
98
|
132
|
107
|
13
|
73
|
|
Non-cash adjustments
|
$/oz
|
9
|
(47)
|
(6)
|
9
|
(1)
|
|
All-In Sustaining Cost (AISC)
AISC is calculated on gold poured
|
$/oz
|
1,390
|
1,631
|
1,458
|
1,373
|
1,470
|
|
ASX Listing Rule 5.23 Mineral
Resources
This announcement contains estimates
of Resolute's mineral resources. The information in this Quarterly
that relates to the mineral resources of Resolute has been
extracted from reports entitled 'Over Three Moz Mineral Resource at
Syama North' announced on 19 January 2023 and is available to view
on Resolute's website (www.rml.com.au) and www.asx.com
(Resolute
Announcement).
For the purposes of ASX Listing Rule
5.23, Resolute confirms that it is not aware of any new information
or data that materially affects the information included in the
Resolute Announcement and, in relation to the estimates of
Resolute's ore reserves and mineral resources, that all material
assumptions and technical parameters underpinning the estimates in
the Resolute Announcement continue to apply and have not materially
changed. Resolute confirms that the form and context in which the
Competent Person's findings are presented have not been materially
modified from that announcement.
ASX Listing Rule 5.19 Production
Targets
The information in this announcement
that relates to production targets of Resolute has been extracted
from the report entitled 'Group Three-Year Forecast and Update to
2023 Guidance' announced on 13 October 2023 and are available to
view on the Company's website (www.rml.com.au) and www.asx.com
(Resolute Production
Announcement).
For the purposes of ASX Listing Rule
5.19, Resolute confirms that all material assumptions underpinning
the production target, or the forecast financial information
derived from the production target, in the Resolute Production
Announcement continue to apply and have not materially
changed.
Cautionary Statement about
Forward-Looking Statements
This announcement contains certain
"forward-looking statements" including statements regarding our
intent, belief, or current expectations with respect to Resolute's
business and operations, market conditions, results of operations
and financial condition, and risk management practices. The words
"likely", "expect", "aim", "should", "could", "may", "anticipate",
"predict", "believe", "plan", "forecast" and other similar
expressions are intended to identify forward-looking statements.
Indications of, and guidance on, future earnings, anticipated
production, life of mine and financial position and performance are
also forward-looking statements. These forward-looking statements
involve known and unknown risks, uncertainties and other factors
that may cause Resolute's actual results, performance and
achievements or industry results to differ materially from any
future results, performance or achievements, or industry results,
expressed or implied by these forward-looking statements. Relevant
factors may include (but are not limited to) changes in commodity
prices, foreign exchange fluctuations and general economic
conditions, increased costs and demand for production inputs, the
speculative nature of exploration and project development,
including the risks of obtaining necessary licences and permits and
diminishing quantities or grades of reserves, political and social
risks, changes to the regulatory framework within which Resolute
operates or may in the future operate, environmental conditions
including extreme weather conditions, recruitment and retention of
personnel, industrial relations issues and litigation.
Forward-looking statements are based
on Resolute's good faith assumptions as to the financial, market,
regulatory and other relevant environments that will exist and
affect Resolute's business and operations in the future. Resolute
does not give any assurance that the assumptions will prove to be
correct. There may be other factors that could cause actual results
or events not to be as anticipated, and many events are beyond the
reasonable control of Resolute. Readers are cautioned not to place
undue reliance on forward-looking statements, particularly in the
significantly volatile and uncertain current economic climate.
Forward-looking statements in this document speak only at the date
of issue. Except as required by applicable laws or regulations,
Resolute does not undertake any obligation to publicly update or
revise any of the forward-looking statements or to advise of any
change in assumptions on which any such statement is based. Except
for statutory liability which cannot be excluded, each of Resolute,
its officers, employees and advisors expressly disclaim any
responsibility for the accuracy or completeness of the material
contained in these forward-looking statements and excludes all
liability whatsoever (including in negligence) for any loss or
damage which may be suffered by any person as a consequence of any
information in forward-looking statements or any error or
omission.
Authorised by Mr Terry
Holohan, Managing Director and Chief Executive
Officer
Contact
Resolute
Matthias O'Toole Howes,
Corporate Development and Investor Relations
Manager
Matthias.otoolehowes@resolutemining.com
+44 203 3017 620
|
Public Relations
Jos Simson, Tavistock
resolute@tavistock.co.uk
+44 207 920 3150
Corporate Brokers
Jennifer Lee, Berenberg
+44 20 3753 3040
Tom Rider, BMO Capital Markets
+44 20 7236 1010
|