Why Resolute shares are on watch after this major quarterly update

Resolute Mining Ltd (ASX: RSG) shares are in the green after the gold producer released its latest quarterly update today.

At the time of writing, the share price is up around 3.5% to $1.49, adding to a solid run in recent weeks. The stock is now up 13% over the past month and has gained over 21% since the start of 2026.

Here’s what stood out.

Production holds steady as pricing supports cash flow

Resolute reported gold sales of 69,352 ounces for the March quarter, with an average realised gold price of $4,858 per ounce, reflecting stronger gold prices over the period.

That flowed through to operating cash flow of $119.8 million for the quarter, with higher prices lifting overall cash generation.

For the full year, guidance remains unchanged, with the result landing broadly in line with expectations.

The company is targeting production of 250,000 to 275,000 ounces, with all-in sustaining costs expected between $2,000 and $2,200 per ounce.

Balance sheet strengthens as cash builds

The balance sheet was one of the key areas of movement in the update.

Net cash increased to $315.4 million at the end of March, up from $209 million at the end of December.

Total liquidity sits at roughly $425 million, which gives the company more flexibility as it moves into a heavier investment phase.

The increase was supported by higher gold prices and solid cash generation across the quarter.

Resource growth builds scale across key projects

Resolute also released an updated mineral resources and ore reserves statement.

Total mineral resources increased 60% to 17.6 million ounces, while ore reserves rose 55% to 6.8 million ounces.

The increase was largely driven by additions at the Doropo and ABC projects in Cote d’Ivoire.

This lifts the overall resource base and supports longer-term development plans.

Drilling across the ABC project continues to return wide zones of gold mineralisation, with extensions confirmed at Kona South.

Many of the reported intersections sit outside current resource models, which leaves room for further growth as drilling continues.

Doropo moves closer to development phase

The project remains on track, with first gold targeted in the second half of 2028.

Planned activities through 2026 include early works, procurement of long-lead items, and site infrastructure development. This includes bulk earthworks, camp construction, and power supply planning.

Foolish takeaway

Resolute’s latest update shows a business tracking steadily on production while moving into its next phase.

Attention is now shifting to Doropo, which is likely to play a bigger role in how the market values the business over time.

From here, it comes down to how Doropo is delivered.

It’s one to watch, but I’d be more interested in a pullback while development work continues to progress.

The post Why Resolute shares are on watch after this major quarterly update appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.