The Resolute Mining Limited (ASX: RSG) share price finished in the red today, adding further to its long-running woes. This follows the release of the gold miner’s quarterly activities report during late October.
At the closing bell, Resolute shares finished the day down 2.44% to 40 cents apiece. That means its shares have now fallen by 6% in the past month, and by more than 30% since early August.
What’s been happening with Resolute Mining?
Investors have smashed the Resolute Mining share price in recent times on the back of weak sentiment in the company.
The spot price of gold has continued to wane over the past 6 months which has left asset-haven investors frustrated. It was only a little more than a year ago that gold cracked the US$2,000 barrier before plummeting thereafter.
Nonetheless, the performance of gold led the company to report a disappointing September quarter update.
At the mining level, ore mined fell to 1.43 million tonnes, an 8% decline over the prior period (June quarter). The grade of gold from mining operations dropped to 1.91 grams per tonne, from 2.03 grams per tonne.
In addition, Resolute produced 76,336 ounces of gold, relatively consistent with the prior comparable period (77,450 tonnes), down 1%.
Gold sold ticked up a notch to 89,326 ounces, up 31% when put against the 68,103 ounces sold in the June quarter.
However, the all-in sustaining cost (ASIC) offset the gains made due to the continued blending of high-cost, low-grade stockpiles. As a result, ASIC came to $1,499 per ounce as opposed to $1,319 per ounce for the 3 months ending June, down 14%.
Overall, the latest performance has continued to have a negative impact on the Resolute Mining share price.
Resolute Mining share price snapshot
Resolute shares have lost almost 50% of their value in the past 12 months. Year to date, the company’s shares have not fared much better, also down roughly 50% on the back of the falling gold spot price.
Based on the current Resolute Mining share price, the company commands a market capitalisation of about $441.55 million, with 1.1 billion shares outstanding.
The post The Resolute Mining (ASX:RSG) share price has plunged 30% since August. What’s going on? 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 Bruce Jackson.
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