Shares in Resolute Mining Ltd (ASX: RSG) climbed more than 6% during Thursday’s session, reaching a high of 34.5 cents several times throughout the trading day.
However, by the close of trade, the Resolute Mining share price had lost some of the ground it bought today finishing at 33 cents, still a lift of 3.13%.
Today, the company released its quarterly activities report for the period ending 31 March 2022. Let’s take a look.
Resolute Mining increases gold production by 2%
Key takeouts from Resolute’s results include:
- Quarterly gold production/poured of 81,770 ounces, an increase of 2% compared to last quarter
- All-in sustaining cost (AISC) $1,383/oz a 4% improvement over the prior quarter
- Quarterly gold sales of 88,773oz at an average realised gold price of $1,846/oz
- Cash and bullion of $103.9 million
- A reduction in net debt of $54.1 million to $174.7 million
- Asset sales proceeds of $43.7 million
What else happened for Resolute this quarter?
The company, which has gold mining and exploration operations in Australia and Africa, says its 2% increase in gold poured last quarter came from strong production across all operations.
Resolute advised that it realised an average gold price of $1,846/oz compared to the average spot price of $1,876/oz during the quarter.
Growth was recognised even with the shutdown of the Syama sulphide circuit in Mali in February and March this year.
Regarding its sulphide circuit, Resolute said performance had “improved, as anticipated following the
shutdown, with higher overall plant availability and throughput achieved during the first few weeks of the
The Syama Oxide operation also saw an 18% increase in production from the last quarter, while the company’s Mako asset in Senegal came in line with expectations.
Meanwhile, the Syama Sulphide operations were flat and produced around 30,500 ounces, at an AISC of $1,365/oz.
Regarding recent geopolitical events in Mali, the company noted:
Resolute continues to monitor the political developments in Mali with operations at Syama continuing as normal with no current impact on production, supply, or employees and contractors’ safety and security. Resolute will continue to monitor and provide updates as appropriate.
Net debt also decreased to $174.7 million at the quarter’s end, and the company also spent $5.2 million on exploration. It has $278 million in additional liquidity through a term loan facility and revolving credit facility.
New leadership for Resolute
Earlier this month, Resolute advised that its COO, Terry Holohan, will step into the role of CEO effective 29 April 2022. The move comes after the resignation of former CEO and managing director Stuart Gale.
Mr Holohan is an experienced mining sector executive with more than forty years in the industry,
including seven years of experience as CEO for two mining companies. Thirty of those years have been spent working in Africa with a range of precious and base metals mining projects.
Mr Holohan was appointed as COO in May 2021 and since then has been responsible for all aspects of
the Company’s operations and projects. He has been instrumental in resetting the operations at the
Company’s Syama mine in Mali, where operations are progressing well and in line with expectations
following the recent planned sulphide plant shutdown.
Resolute Mining share price snapshot
The Resolute Mining share price has faltered in the last 12 months and now rests more than 27% in the red. This year to date, it has fallen 13% and is 8% down over the past week of trading.
The post Why the Resolute Mining share price soared 6% today appeared first on The Motley Fool Australia.
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