30 January 2025
Q4 2024 & Full Year 2024
Activities Report
For the Quarter ending 31 December 2024 ('Q4 2024', 'December Quarter'
or 'the
quarter')
2024 Highlights
• Two lost-time injuries
(LTIs) recorded at Mako and Syama
in October and November respectively; TRIFR for year-end of 2.11,
compared to 1.71 at the end of 2023
• Full-year group gold
production of 340 koz (FY2023: 331 koz) slightly below guidance (345 - 365 koz) due to
lower-than-expected production at Mako; Q4 2024 gold poured of
87,687 oz (Q3 2024: 85,043 oz) driven by a strong quarter from
Syama
• Group 2024 All-In Sustaining
Costs (AISC) of $1,476/oz (2023:
1,470/oz) is above guidance ($1,300 - 1,400/oz) due to lower gold
production at Mako and higher costs in Mali mainly due to changes
in Mining Code; Q4 2024 AISC of $1,568/oz (Q3 2024:
$1,452/oz)
• 2024 Capital Expenditure
(excluding exploration) of $96.3 million (2023: $64.2
million) consisting of $67.1
million non-sustaining including $31.9 million for the Syama
Sulphide Conversion Project (SSCP) and $29.2 million sustaining;
capital expenditure was below guidance ($105 - 130 million) with
deferral of c. $24 million for the SSCP. Q4 capital expenditure of $25.3
million(Q3 2024: $26.6 million)
• 2024 exploration spend of
$20.0 million (2023: $18.1 million) consisting of $14.5 million of capital expenditure and $5.5
million of expenses was above guidance ($16-18 million) as drilling
at Tomboronkoto and Bantaco in Senegal was expedited
• Unaudited 2024 revenue of
approximately $800 million ($631
million in 2023): an average realised gold price of $2,383/oz
versus 2023 of $1,920/oz
• Full-year 2024 unaudited
EBITDA of approximately $310 million (FY2023: $161 million) driven by increased production and
higher average realised gold prices
• Robust 2024 Operating cash
flow generation of over $200 million (operating cash flow, after capital expenditure, exploration
and working capital)
• Net cash of $66.3
million ($145.6 million in Q3
2024), including cash and bullion of $100.5 million and drawn
overdraft balances of $34.2 million. Reduction in cash reflects the
settlement payments in Q4 totalling $160 million to the Government
of Mali
2025 Guidance
• 2025 group
production guidance of 275,000 - 300,000 oz at a Group AISC of
$1,650 - 1,750/oz
• 2025 capital expenditure
guidance of $109 - 126 million split between Syama, Mako and Exploration (including
Tomboronkoto) of $85-95 million, $4-6 million and $20-25 million
respectively
• Mako guidance of 80,000 -
90,000 oz at an AISC $1,300 - 1,400/oz; open pit mining ceasing at the end of in June and gold
production is expected to be weighed towards H1 (c. 60%)
• Syama guidance of 195,000 -
210,000 oz at an AISC $1,700 - 1,800/oz; operating costs impacted by the 2023 Mining Code (by c.
$250/oz increase versus normalized levels)
• Completion of the SSCP
revised to H1 2026 to optimise near
term cash flows and exploit higher return oxide material over
2025
Note: Unless otherwise
stated, all dollar figures are United States dollars ($).
Resolute Mining Limited ABN
39 097 088 689
Level 17, 2 The Esplanade, Perth,
Western Australia 6000 T+61 8 9261 6100 E contact@rml.com.au
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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 2024.
Chris Eger, Acting Chief Executive Officer,
commented,
"From an operational and cash generation perspective 2024 was
one of the strongest years Resolute has had in recent times. The
operations at Syama continue to perform extremely well due to the
improvements that have been put in place over the last several
years. The Mako operation continued to generate substantial cash
flows despite a rain-impacted H2 and lower than expected grades.
Moving into 2025 we expect both operations to continue generating
strong cash flow albeit at lower production levels due to the end
of mining at Mako in Q2 and the commencement of stockpile
processing.
Beyond this strong 2024 operating performance, in November
Resolute signed a memorandum of understanding with the Government
of Mali, expressed as the protocol ("Protocol"). While the
circumstances in Q4 were challenging to Resolute I am grateful to
all our employees who have shown tremendous resilience and
commitment to the business.
The Protocol sets the framework for further detailed
discussions with the Government regarding the long-term future of
Resolute's operations in Mali including migration of the Company's
assets to the 2023 Mining Code. As noted in our 2025 guidance,
together with increasing royalty rates we estimate this will add
around $250 per ounce to Syama's AISC. Despite the challenges
faced, Resolute remains focused on continuing to deliver on the
significant potential of the Syama Gold Mine and is committed to
working collaboratively with the Malian Government together with
all its stakeholders.
On our exploration activities, there was significant progress
across the Group during 2024. The growing Mineral Resource at
Tomboronkoto in Senegal was particularly encouraging and this
remains a key satellite deposit that has the potential of extending
the life of Mako. We are also optimistic about the initial Mineral
Resource Estimate for the Mansala Prospect in Guinea with over
340koz of gold being identified. Another country was also added to
the Company's portfolio of assets with the commencement of drilling
at the La Debo Project in the Ivory Coast.
For 2025 we expect group production to be between 275,000 -
300,000 oz of gold at between $1,650 - 1,750/oz AISC. The lower
production levels forecast in 2025 are a result of lower production
from Mako as open pit mining stops at the end of H1 and lower grade
stockpile material starts to be processed. In Q4 we completed a
strategic review for the Group, and it was decided to revise the
completion date of the SSCP project from 2025 to 2026. Based on the
amount of oxide material remaining, we believe it is more
beneficial to complete the processing of this material before
completing the SSCP. As a result, the business is expected to
produce substantially more cash flow in 2025 than previously
forecasted. At the same time, our 2025 cost guidance has been
significantly impacted as a result of the requirement to adopt the
2023 Mining Code.
Our key focus for 2025 is to i) continue delivering
operationally across the Group, ii) progress a near- mine satellite
resource to extend Mako, iii) continue to create value in Guinea
and the Ivory Coast and
iv) actively manage an increasingly complicated political
landscape."
Webcast and Conference Call
Resolute will host a conference call for investors,
analysts, and media on 30 January 2025, to discuss the Company's
Quarterly Activities Report for the period ending 31 December 2024.
This call will conclude with a question-and-answer session.
Conference Call: 8:00pm
(AEDT, Sydney) / 9:00am (GMT, London)
Webcast registration link: https://brrmedia.news/RSG_Q42024
Those wishing to ask questions as part of the
Q&A should use the conference call facility (please join 5 mins
prior to the start time)
Conference call details:
Dial in
number(s)
|
UK-Wide:
+44 (0) 33 0551 0200
USA
Local: +1 786 697 3501
South
Africa Toll Free: 0 800 980 512
Sydney:
+61 (0) 2 8014 9383
|
Password
(if prompted)
|
Quote
Resolute Mining Q4
2024when prompted by the operator
|
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 2024
Quarter
|
September 2024
Quarter
|
December 2023
Quarter
|
Full Year 2024
|
Full Year 2023
|
Mining
|
|
|
|
|
|
|
Ore
Mined
|
t
|
1,583,820
|
1,368,297
|
1,735,284
|
6,274,965
|
6,608,501
|
Mined
Grade
|
g/t
|
1.93
|
2.06
|
2.02
|
2.06
|
2.08
|
Processing
|
|
|
|
|
|
|
Ore
Processed
|
t
|
1,651,031
|
1,529,134
|
1,566,619
|
6,156,602
|
5,962,245
|
Processed
Grade
|
g/t
|
1.93
|
2.00
|
1.87
|
2.01
|
2.06
|
Recovery
|
%
|
85
|
85
|
85
|
86
|
85
|
Gold
Poured
|
oz
|
87,687
|
85,043
|
80,307
|
339,869
|
330,994
|
Sales
|
|
|
|
|
|
|
Gold
Sold
|
oz
|
83,145
|
95,242
|
79,480
|
335,708
|
329,061
|
Average
Realised Price
|
$/oz
|
2,659
|
2,493
|
1,954
|
2,383
|
1,920
|
Financials
|
|
|
|
|
|
|
Total
Capital Expenditure
|
$m
|
25.3
|
26.6
|
16.5
|
96.3
|
64.2
|
Net
Cash/(Debt)
|
$m
|
66.3
|
145.6
|
14.0
|
66.3
|
14.0
|
AISC
|
$/oz
|
1,568
|
1,452
|
1,480
|
1,476
|
1,470
|
Table 1: Resolute Group
Operational Performance Summary
Environmental and Social Update
Resolute's TRIF as of 31 December 2024 was 2.11
including two Lost Time Injuries, the first of which was reported
by Mako in October 2024 after 1,119 LTI-free days, and the second a
month later at Syama. This compares to the International Council on
Mining and Metals (ICMM) mines average of 2.6 in 2023. Resolute is
committed to creating an injury free workplace with both sites
successfully rolling out a behaviour-based safety program and
hazard identification program.
Resolute recorded no significant environmental
incidents, regulatory non-compliances, or grievances in 2024 and
successfully maintained ISO 14001 & ISO 45001 certification.
External audits were completed against the World Gold Council's
Responsible Gold Mining Principles, the Conflict Free Gold Standard
and all operating Tailings Facilities were reviewed by a Senior
Independent Technical Reviewer with observations incorporated into
existing improvement plans.
The Tomboronkoto Environmental & Social Impact
Assessment surveys are ongoing and Resolute continues to liaise
with relevant Government Authorities in relation to attaining
approvals to support extending the operational life of Mako.
Mali Overview
Over the past couple of years Resolute, along with
other companies within the mining sector, has been meeting with
representatives of the Malian Government to discuss the new 2023
Mining Code as well as settlements of historical fiscal and other
claims.
In November 2024 three employees, including the
Company's CEO at the time, were in Bamako to hold discussions with
the mining and tax authorities regarding general activities related
to Resolute's in- country business practices, and to progress open
claims made against the Company. Resolute was asked to migrate to
the 2023 Mining Code despite having a Mining Convention for its
Syama and Tabakoroni licences until 2029. On 8 November 2024
following the conclusion of these meetings the three Resolute
employees were unexpectedly detained. After further discussions
with Malian Government representatives, on 18 November 2024,
Resolute executed a memorandum of understanding expressed as a
protocol (the "Protocol"), along similar lines to those agreed with
other mining companies in Mali. The three employees were released
on 21 November 2024.
The signing of the Protocol has set the framework
for continued discussions with the Malian Government regarding the
long-term future of the operations in Mali, including migration of
the Company's assets in Mali to the 2023 Mining Code and
maintaining the safety of the Company's employees. The Protocol
also provides that all outstanding claims prior to 31 December 2023
by the Government against the Company, including those related to
tax, customs levies, maintenance and management of offshore
accounts are settled. Pursuant to the Protocol, Resolute made
settlement payments totalling US$160 million to the Government with
the final payment made on 31 December 2024.
Discussions with the Government of Mali are ongoing
to clarify points of the Protocol and Resolute is continuing to
assess its full implication to the Company's activities in Mali.
Throughout the discussions, and since the settlement of the
Protocol, normal operations have been maintained at Syama.
Resolute believes the settlement of the Protocol
should secure the future of, and create certainty for, the Syama
Gold Mine and all its employees. The Company remains proactive in
its working relationship with the Malian Government and remains
committed to Mali and its other stakeholders.
As a result of these developments and the
significant cash outflows, mine sequencing at Syama has been
optimised for near and medium-term cash generation while the
Company assesses its longer-term capital plans. As a result, the
completion date for the SSCP project has been deferred from 2025 to
2026 given the continued availability of existing oxide resources
in 2025.
Mali Mining Code
Resolute continues to engage with the Government of
Mali with respect to the Protocol signed on the 18 November 2024.
As part of this, in 2025 the Syama Mine will migrate to the 2023
Mining Code.
The overall impact of the 2023 Mining Code is
expected to increase AISC by approximately $250/oz from historical
targeted AISC levels of $1,450/oz.
Key changes of the Mining Code include:
•
Increase in corporate income tax from 25% to
30%
•
Removal of fuel duty exoneration (equivalent to
approximately $10-15m per annum of additional operating
costs)
•
The Company's subsidiary will continue to hold an
80% interest in Syama as an ordinary interest. The new structure
will see the Government of Mali's stake held via a 20% preference
share interest
•
Contributions to new local development funds
(Energy, Hydraulic and Transport Infrastructure Construction Fund,
Geological Research, Capacity Building and Training Fund and the
Mining fund for local development) totalling 3.75% of
turnover
•
Royalties to the Government are based on the
sliding scale outlined in the table below:
Spot Gold Price per
Ounce
|
Total Royalty Rate
|
Less than
or equal to US$1,100
|
6%
|
Greater
than US$1,000 and less than or equal to US$1,300
|
6.5%
|
Greater
than US$1,300 and less than or equal to US$1,600
|
7%
|
Greater
than US$1,600 and less than or equal to US$2,000
|
9%
|
Greater
than US$2,000 and less than or equal to US$2,500
|
10.5%
|
Greater
than US$2,500 any increase of US$400 the rate of royalty increased
by 0.5%
|
Rate to be determined
|
Table 2: Mali 2023 Mining Code Royalty Rates
Resolute understands that at the current gold spot
prices between US$2,500 - 2,900/oz the total royalty rate due in
Mali is 11%.
Syama, Mali
Syama gold production for the quarter was 58,884oz
at an AISC of $1,525/oz. The operational performance is set out in
the table below.
|
Summary
|
Units
|
December 2024
Quarter
|
September 2024
Quarter
|
December 2023
Quarter
|
Full Year 2024
|
Full Year 2023
|
Mining
|
Sulphide
|
Ore
Mined
|
t
|
562,996
|
554,221
|
668,663
|
2,400,714
|
2,396,913
|
Mined
Grade
|
g/t
|
2.50
|
2.50
|
2.45
|
2.56
|
2.62
|
Oxide
|
Ore
Mined
|
t
|
248,082
|
111,098
|
526,993
|
806,036
|
1,843,780
|
Mined
Grade
|
g/t
|
1.58
|
1.40
|
1.59
|
1.58
|
1.64
|
Processing
|
Sulphide
|
Ore
Processed
|
t
|
661,208
|
622,620
|
603,297
|
2,404,832
|
2,264,443
|
Processed
Grade
|
g/t
|
2.55
|
2.63
|
2.39
|
2.64
|
2.65
|
Recovery
|
%
|
77
|
78
|
77
|
79
|
78
|
Gold
Poured
|
oz
|
43,863
|
42,878
|
36,720
|
163,379
|
151,256
|
Gold
Sold
|
oz
|
42,247
|
47,776
|
36,300
|
162,032
|
150,137
|
Oxide
|
Ore
Processed
|
t
|
417,768
|
352,933
|
429,283
|
1,522,976
|
1,579,581
|
Processed
Grade
|
g/t
|
1.27
|
1.06
|
1.29
|
1.24
|
1.42
|
Recovery
|
%
|
88
|
84
|
87
|
86
|
84
|
Gold
Poured
|
oz
|
15,021
|
10,113
|
15,170
|
52,555
|
59,891
|
Gold
Sold
|
oz
|
15,021
|
10,113
|
15,170
|
52,555
|
58,974
|
Cost
|
Syama combined
|
Total
Capital Expenditure
|
$m
|
22.5
|
22.6
|
8.3
|
81.1
|
36.4
|
AISC
|
$/oz
|
1,525
|
1,533
|
1,415
|
1,497
|
1,473
|
Table 3: Syama Production and Cost Summary
2024 was a strong year at both the oxide and
sulphide operations. Total gold poured at Syama of 215,934 oz in
2024 was 2% higher than the prior year as both sulphide and oxide
plants maintained high utilisation and milled near nameplate
capacity of 3.93Mt versus 3.84Mt in 2023. As expected, the combined
ore tonnes mined decreased to 3.21Mt (vs 4.24Mt in 2023) due to
approximately 1Mt less oxide ore being mined in 2024. The sub-level
cave underground operation had another productive year in 2024
achieving approximately 2.4Mt of ore mining as it continues to
benefit from productivity improvements from truck fill and loader
operations that were implemented in 2023.
During Q4 the mined and milled tonnages were higher
for both oxides and sulphides. The near doubling in tonnage of
oxide ore mined in Q4 was due to improved access to open pit
production areas after the rainy season. Sulphide gold production
was similar to the prior quarter as a slightly higher sulphide
milling was offset by a 3% lower head grade due to increased feed
from stockpiles. Oxide gold production in Q4 was 49% higher than Q3
due to more ore tonnes mined at a higher grade from the Samogo and
Tellem pits which resulted in a higher head grade at the oxide
plant.
Yearly capital expenditure of $81.1 million
including $31.9 million of expenditure on the SSCP project as well
as $16.0 million of capitalised waste and $33.2 million of capital
projects inclusive of $8.4 million on new underground equipment and
$7.6 million spent on TSF lifts. During Q4 2024 capital expenditure
was $22.5 million consisting of $18.1 million of capital items,
mainly made up of items relating to the SSCP and other mechanical
parts. Additionally, the sulphide operation incurred $4.4 million
of capitalised waste.
The approximate full-year AISC at Syama of $1,497/oz
for 2024 was 1.6% higher than in 2023 ($1,473/oz). The increase in
AISC in 2024 is partly attributed to increased royalty payments as
the base rate increased from August as the gold price exceeded
$2,500/oz. The increase in royalty rate in H2 2024 added
approximately $70/oz to the full-year 2024 AISC. Q4 2024 AISC
decreased from $1,533/oz to $1,525/oz due to higher gold production
partially offsetting the increased royalty rates which are
approximately $100/oz higher than originally anticipated in
2024.
Mako, Senegal
Mako gold production for the quarter was 28,803oz at
an AISC of $1,350oz. The operational performance for Mako is set
out in the table below.
Summary
|
Units
|
December 2024
Quarter
|
September 2024
Quarter
|
December 2023
Quarter
|
Full Year 2024
|
Full Year 2023
|
Mining
|
|
|
|
|
|
|
Ore
Mined
|
t
|
772,742
|
702,978
|
539,628
|
3,068,215
|
2,367,808
|
Mined
Grade
|
g/t
|
1.63
|
1.82
|
1.89
|
1.80
|
1.89
|
Processing
|
|
|
|
|
|
|
Ore
Processed
|
t
|
572,055
|
553,581
|
534,039
|
2,228,793
|
2,118,221
|
Processed
Grade
|
g/t
|
1.69
|
1.89
|
1.74
|
1.86
|
1.91
|
Recovery
|
%
|
92
|
93
|
93
|
93
|
92
|
Gold
Poured
|
oz
|
28,803
|
32,052
|
28,417
|
123,935
|
119,847
|
Gold
Sold
|
oz
|
25,877
|
37,353
|
28,010
|
121,121
|
119,950
|
Financials
|
|
|
|
|
|
|
Total
Capital Expenditure
|
$m
|
2.8
|
4.0
|
8.2
|
15.2
|
27.8
|
AISC
|
$/oz
|
1,350
|
1,125
|
1,483
|
1,244
|
1,373
|
Table 4: Mako Production and Cost Summary
The 2024 gold production of 123,935 oz was higher
than the prior year albeit below guidance predominantly due to
lower-than-expected grades and disruption to mining operations as
the pit flooded during the abnormally heavy rainy season.
During the final quarter, accelerated mining was
continued to ensure mining activities were complete before the 2025
rainy season. The mined ore grade in Q4 was lower than expected and
was partly impacted by continued high water levels in the pit
during the first half of October. This forced a change in mining
sequence to mine the upper benches with lower mineralization
impacting mined and head grades. The average mine grade remains
impacted by the negative grade reconciliation from the grade
control model noted in Q3. The reduced mine grade caused a lower
head grade at the mill resulting in Q4 gold production that was
approximately 10% lower than the prior quarter.
2024 capital expenditure of $15.2 million was 45%
lower than in 2023 primarily due to significantly less waste
stripping. In Q4 capital expenditure was $2.8 million (vs $4.0
million in Q3) consisting of $0.8 million and $2.0 million of
non-sustaining and sustaining respectively. Expenditure included
critical parts for the power generator, pumping equipment that will
be transferred to Syama, and the final Tailings Management Facility
raise.
The approximate full-year 2024 AISC of $1,244/oz was
above guidance ($1,100 - 1,200/oz) due to lower production
levels.
Exploration
Total Group exploration expenditure in Q4 was $3.4
million, with drilling programs continuing in Senegal, Mali and
Guinea throughout the quarter. This was made up of $2.7 million of
capital mainly focused on drilling at Syama North Sulphide,
Tomboronkoto, Bantaco and commencement of drilling in the Ivory
Coast. $0.7 million of exploration expense was mainly spent in
Guinea on the Mansala Prospect ($0.2 million), and in Senegal on
the Sangola project ($0.2 million).
The 2024 total group exploration expenditure
(capital and expensed) of $20.0 million exceeded the original full
year budget of $16-18 million as drill programmes at Tomboronkoto
and Bantaco were expedited.
Senegal Exploration
On 12 September 2024 an updated Mineral Resource
Estimate for Tomboronkoto was published. Total contained gold at
Tomboronkoto is currently 343 koz grading 2.1g/t Au at 1g/t cut off
or 571 koz grading
1.1 g/t at 0.5 g/t cut-off.
The Tomboronkoto deposit is drilled to 150m below
surface and is open down dip. Drilling during Q4 2024 targeted the
extensions of the resource between 150m and 200m below surface.
Preliminary results suggest that the mineralisation is continuous
down dip. Drilling at Tomboronkoto will continue in 2025 in order
to advance studies.
Exploration drilling at Bantaco continued throughout
Q4 2024 with multiple rigs testing the Bantaco prospect.
Mineralisation is hosted within deformed clastic sediments and
andesite and volcano-sediment units and associated with NE trending
shear zones with pyrite and quartz veining. Diamond drilling was
undertaken to improve the geological knowledge of the prospect
area. Structural measurements confirmed NE trending, subvertical to
strongly SE dipping gold mineralisation. Drilling programs will
continue at Bantaco in 2025.
Mali Exploration
Exploration programs in Mali during Q4 concentrated
on sulphide drilling at Syama North and oxide drilling on the
Finkolo Exploitation permit.
An updated Mineral Resource Estimate for Syama North
was completed in Q4 with the model used for the basis of Life of
Mine studies and the 2024 Reserves and Resources Statement.
Reverse Circulation drilling of satellite Oxide
resources on the Finkolo Exploitation Permit continued in Q4.
Mining studies were carried out on the satellite oxide resources at
Finkolo such as Zozani in Q4 to ascertain the economics of the
prospects.
Guinea Exploration
On 12 September 2024 an initial Mineral Resource of
6.6 Mt at a grade of 1.6g/t Au for a total of 343 koz of gold using
a 1g/t cut off Au has been estimated at Mansala.
Ivory Coast Exploration
In Q4 2024, Resolute signed a JV agreement with
JOFEMA Holdings Limited, a local Ivorian company, for the La Debo
project located in southwestern Ivory Coast, approximately 280 km
west of Abidjan. The JV structure is a standard multi-stage earn-in
with Resolute being able to earn up to 100% of the Project.
In 2016, an initial Preliminary Economic Assessment
established a NI 43-101 compliant Inferred Mineral Resource of 400
koz at a grade of 1.3 g/t Au (at 0.3 g/t cut-off). After subsequent
deeper DD drilling in 2022, the resource was increased but was not
reported as NI 43-101 compliant.
Resolute commenced drilling at La Debo in December
2024 with a combined RC and diamond drilling program focussed on
increasing the Mineral Resources of the La Debo prospects. The
drilling is continuing in 2025 with the aim to expand the Mineral
Resources.
Syama Sulphide Conversion
Project
In 2023 the Company commenced the construction of
the SSCP. The Project will increase overall sulphide processing
capacity at Syama by 60% from 2.4Mtpa to 4.0Mtpa by modifying the
oxide comminution circuit and upgrading the roaster. The Project is
important for the long-term future of Syama as oxide resources
deplete and the ore sources become predominantly sulphide.
Importantly, the SSCP will retain operational flexibility by
maintaining the ability to switch back to treat oxide ore.
After revision of available oxides and
prioritisation of cash generation, the Company has taken the
decision to defer the completion of the SSCP to Q2 2026 once the
oxides have been depleted. The revised schedule optimises
nearer-term cash flows by processing the remaining oxides in the
Paysans and Tellem pits throughout 2025 before starting to treat
sulphide material from Syama North. It is expected that the first
two years of sulphide material from Syama north will have a grade
of approximately 2.1 g/t and strip of 10:1. The plan is to start to
introduce sulphide ore into the SSCP plant once the flotation
circuit has been commissioned from Q1 2026. Throughput of sulphide
ore will be ramped up from Q2 2026 with sources being a combination
of sulphide stockpile material and Syama North ore.
Since the beginning of construction, the Project has
no LTIs after approximately 453,000 person-hours worked until the
end of 2024. The total capital expenditure in 2024 on the SSCP was
$31.9 million (below the $55 million guidance).
Construction activities progressed well in 2024 with
the project remaining on budget and on track based on the new
schedule. Key activities in 2024 included:
- Key items
procurement was effectively completed
- All the
critical and long lead items arrived on site and most mechanical
equipment have been delivered
- Long lead
items delivered to site including the ball mill, two crushers and
flotation cells
- Shipment
of the electrical and instrumentation equipment is in progress and
on track
- Majority
of the civils work was completed
- Approximately 65% of the steel work was erected and both the
crushers were installed
In 2025 we are forecasting $30m of capital
expenditure on the SSCP. This will be used to continue construction
of the CCIL circuit, re-crushing circuit and flotation plant. The
plan for 2025 is to complete all civil works for the entire SSCP
and roaster circuit. The electrical, control and instrumentation
(EC&I) installation contractor was mobilised in December 2024
and will start with installation early in January 2025. In Q4 2025
construction of the remaining parts of the SSCP plant (ball mill,
secondary crusher, CCIL tanks, stockpile tunnel, conveyors, roaster
upgrades) will commence.
In 2026 the remaining $35m of capital expenditure is
forecast. The ball mill installation and completion of the
secondary crusher circuit and stockpile area is planned for H1
2026.

Figure 1: Ball mill and
flotation areas in December under construction. The flotation
circuit is now 50% complete, while the ball mill areas is 30%
complete


Figure 3: The milling area
substation is 15% complete

Financial Highlights and Balance Sheet Activities
Annual Cash and Bullion Movements
(US$ million)

Chart 1: 2024 Cash and Bullion Movements
Unaudited 2024 revenue of approximately $800 million
(vs $630 million in 2023) with 336 koz of gold sold at an average
price of approximately $2,383/oz (2023: $1,920/oz). 2024 revenue is
higher due to higher gold sales and a 24% higher gold price.
2024 EBITDA of approximately $310 million (vs $161
million in 2023) driven by higher gold prices.
Operating cash flows were very robust at
approximately $250m driven by stabilized operations and higher
realised gold prices throughout the year. The operating cash flow
was used to pay the final $25 million of principal repayment of the
syndicated debt facilities, increased capex due to SSCP
construction and $160 million of settlement payments to the Malian
Government in Q4. Cash flows in 2024 were boosted by approximately
$33.5 million of receipts from the Ravenswood promissory note.
Other financing costs mainly comprise of $25 million of debt
repayments made in Q1.
Net Debt Summary
Net cash at 31 December 2024 was $66.3 million,
decreasing from $145.6 million net cash position at 30 September
2024. Total borrowings at 31 December 2024 were $34.2 million (Q3
2024: $42.5 million) which are from in-country overdraft facilities
in Mali and Senegal. Over Q4 cash and bullion decreased from $188
million to $101 million as at 31 December 2024.
During the quarter Resolute made three instalments
totalling $160 million as part of the settlement with the
Government of Mali. The last of these payments was made on 31
December 2024 and were made from existing cash resources.
Liquidity Initiatives
Considering recent developments in Mali, Resolute
has revisited its financing initiatives. The previously announced
undrawn senior debt facility signed in September 2024 is no longer
available as the terms and conditions have been breached as a
result of transitioning to the 2023 Mining Code. The primary
purpose of the facility was to provide increased flexibility to
explore growth opportunities. However, Resolute has maintained its
financial flexibility by increasing liquidity available to the
Group through implementation of additional banking facilities and
working capital initiatives.
Specifically, at the end of Q3 2024 Resolute had
access to approximately $55 million of financing facilities. This
is being increased and will provide available liquidity of over
$100 million. The increase is due to a combination of increasing
existing capacity as well as through the introduction of facilities
with new banks.
In 2025, Resolute expects to generate strong cash at
both sites and is expected to continue strengthening its already
healthy balance sheet.
2025 Guidance
For 2025 Resolute expects total Group gold
production of 275,000 - 300,000 oz at an AISC of $1,650 - 1,750/oz.
Group total capital expenditure is expected to be between $109 -
126 million in 2025 including exploration expenditure.
Administration and other corporate expenditure are expected at
approximately $25m.
|
Gold Production (oz)
|
AISC ($/oz)
|
Syama
|
195,000 - 210,000
|
1,700 -
1,800
|
Mako
|
80,000 - 90,000
|
1,300 -
1,400
|
Total1
|
275,000 - 300,000
|
1,650 - 1,750
|
1includes corporate costs
Table 5: Summary of 2025
production and cost guidance
(US$ million)
|
Non-
Sustaining
|
Sustaining
|
Total
|
Syama
|
45 - 50
|
40 - 45
|
85 - 95
|
Mako
|
-
|
4 - 6
|
4 - 6
|
Exploration (including Tomboronkoto)
|
20-25
|
-
|
20-25
|
Total
|
65-75
|
44-51
|
109 - 126
|
Table 5: Summary of 2025
capital expenditure guidance
Syama Guidance
The Company is providing 2025 production guidance of
195,000 - 210,000 oz. Production for Syama sulphide and oxide is
expected to be 150,000 - 160,000 oz and 45,000 - 50,000 oz
respectively.
Previous guidance anticipated the completion of the
SSCP in 2025 with the site focusing on processing the majority of
ore from sulphide material. Initial analysis would have forecasted
production around 210 koz under this scenario for 2025. However,
after a strategic review of operating scenarios based on additional
oxide materials available at Syama the Company has made the
decision to defer the completion of the SSCP to 2026 until most of
the remaining oxide materials are processed. The resulting impact
was a considerable increase in near term cash flows while
maintaining similar production levels.
2025 AISC guidance for Syama is $1,700 - 1,800/oz
and is mainly impacted by the increase in operating costs
associated with the transition to the 2023 Mali Mining Code which
the Company estimates equate to an additional ~$250/oz or around
$175/oz at a Group level.
Total capital expenditure at Syama in 2025 is
expected to be $85 - 95 million. This comprises approximately $30
million for the SSCP (non-sustaining) with the remaining capex
relating to fleet replacement, TSF lifts and waste stripping.
Mako Guidance
Production at Mako for 2025 is expected to be 80,000
- 90,000 oz at an AISC of $1,300 - 1,400/oz. Gold production is
expected to be weighted towards H1 (approximately 60%) as the
remaining ore from the open pit is mined and processed. Stockpile
processing is due to commence from July onwards and is expected to
produce approximately 4-5 koz per month until all stockpile
material is depleted, terminating in H2 2027.
Total capital expenditure in 2025 at Mako is
expected to be $4 - 6 million comprised of general sustaining
expenditure. Resolute is working towards extending the life at Mako
through the development of the Tomboronkoto and Bantaco satellite
deposits.
Exploration Guidance
The overall 2025 exploration budget for the Group is
$20-25 million with the majority being capital expenditure.
In Mali, approximately $3 million is allocated for
continued exploration of oxides and sulphides at Syama North and
exploration on the Finkolo Permit to the south.
In Senegal, approximately $9 million has been
budgeted for exploration in 2025 with a focus on increasing Mineral
Resources at Tomboronkoto, Bantaco and Laminia. At Tomboronkoto
drilling will be undertaken to increase the open pit Mineral
Resources which are the basis for ongoing studies. A drilling
program for geotechnical and metallurgical testwork will also take
place. At Bantaco, existing drill results returned in Q4 will be
followed up by intensive drilling programs in 2025. The remaining
budget will be used across other projects in Senegal.
In Cote d'Ivoire, a total of $3 million is budgeted
for 2025. The primary aim for 2025 is to increase the Mineral
Resources for the La Debo group of prospects. Drilling will largely
be carried out during H1 2025.
Between $4 - 6 million will be allocated to various
studies at Tomboronkoto including village resettlement, tailings
storage facilities and engineering studies.
The proposed approximate timeline for Tomboronkoto
is shown below. Resolute is committed to advancing the Project as
efficiently and responsibly as possible but notes that there may be
delays, unforeseen or otherwise, that could potentially impact the
proposed timeline. The current estimate for development capital
expenditure for the Tomboronkoto Project is between $80-100 million
primarily consisting of village relocation/resettlement, road
diversion, new TSF construction and plant modifications.

Near-Term Perspectives
Following the $160m of payments made to the
Government of Mali during Q4 2024, the near-term focus of the
business has turned to maximizing cash flows across the Group while
maintaining operational flexibility. As a result, the schedule for
the SSCP has been optimised to maximize the return from the
remaining available oxide ore over the next 12-18 months. As the
SSCP ramps up from H1 2026 the expectation is for Syama gold
production to gradually increase to a run rate of 205 - 215koz at a
similar level of AISC to that expected in 2025. Based on current
operating models, production levels would remain in this range as a
result of processing high grade material from Syama North offset by
slightly decreasing grades forecasted in the existing underground
operations. Additional studies are ongoing to review alternative
scenarios that could increase the value and scale of the overall
Syama operation in the medium to longer term.
Mako production is expected to decrease as mining
ceases at the end of H1 2025 with production transitioning to the
processing of stockpile material grading c. 0.9 g/t. As a result,
from the start of 2026 to H2 2027 we forecast Mako to produce
between 4-5 koz per month, although variations in monthly
production are possible due to stockpile grade variations. We
expect this level of production to continue to generate strong cash
flows given there will be no associated mining costs from H2 2025
onwards.
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 2025 is 275,000 -
300,000 oz at an AISC of $1,650 - 1,750/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 was audited as conformant with these RGMPs
in 2024.
Appendix
December 2024 Quarter Production and Costs (unaudited)
December 2024 - Quarter to
date
|
Units
|
Syama
Sulphide
|
Syama Oxide
|
Syama
|
Mako
|
Group
Total
|
UG
Lateral Development
|
m
|
1,282
|
-
|
1,282
|
-
|
1,282
|
UG
Vertical Development
|
m
|
-
|
-
|
-
|
-
|
-
|
Total UG
Development
|
m
|
1,282
|
-
|
1,282
|
-
|
1,282
|
UG Ore
Mined
|
t
|
562,996
|
-
|
562,996
|
-
|
562,996
|
UG Grade
Mined
|
g/t
|
2.50
|
-
|
2.50
|
-
|
2.50
|
OP
Operating Waste
|
BCM
|
-
|
143,080
|
143,080
|
638,553
|
781,613
|
OP Ore
Mined
|
BCM
|
-
|
1,251,929
|
1,251,929
|
227,442
|
1,529,351
|
OP Grade
Mined
|
g/t
|
-
|
1.58
|
1.58
|
1.63
|
1.59
|
Total Ore
Mined
|
t
|
562,996
|
248,082
|
811,078
|
772,742
|
1,583,820
|
Total
Tonnes Processed
|
t
|
661,208
|
417,768
|
1,078,976
|
572,055
|
1,651,031
|
Grade
Processed
|
g/t
|
2.55
|
1.27
|
2.05
|
1.69
|
1.93
|
Recovery
|
%
|
77
|
88
|
81
|
92
|
85
|
Gold
Recovered
|
oz
|
41,849
|
14,940
|
56,789
|
28,579
|
85,368
|
Gold in
Circuit Drawdown/(Addition)
|
oz
|
2,014
|
81
|
2,095
|
224
|
2,319
|
Gold
Produced (Poured)
|
oz
|
43,863
|
15,021
|
58,884
|
28,803
|
87,687
|
Gold
Bullion in Metal Account Movement (Increase)/Decrease
|
oz
|
(1,616)
|
-
|
(1,616)
|
(2,926)
|
(4,542)
|
Gold
Sold
|
oz
|
42,247
|
15,021
|
57,268
|
25,877
|
83,145
|
Achieved
Gold Price
|
$/oz
|
-
|
-
|
-
|
-
|
2,659
|
Cost Summary
|
|
|
|
|
|
|
Mining
|
$/oz
|
461
|
481
|
466
|
477
|
469
|
Processing
|
$/oz
|
497
|
619
|
528
|
438
|
499
|
Site
Administration
|
$/oz
|
135
|
232
|
160
|
172
|
164
|
Site
Operating Costs
|
$/oz
|
1,093
|
1,332
|
1,154
|
1,087
|
1,132
|
Royalties
|
$/oz
|
283
|
283
|
283
|
119
|
233
|
By-Product Credits + Corp Admin
|
$/oz
|
(2)
|
(2)
|
(2)
|
-
|
88
|
Total
Cash Operating Costs
|
$/oz
|
1,374
|
1,613
|
1,435
|
1,206
|
1,453
|
Sustaining Capital + Others
|
$/oz
|
61
|
186
|
93
|
69
|
92
|
Inventory
Adjustments
|
$/oz
|
(43)
|
115
|
(3)
|
75
|
23
|
All-In
Sustaining Cost (AISC) AISC is calculated on gold produced
(poured)
|
$/oz
|
1,392
|
1,914
|
1,525
|
1,350
|
1,568
|
Year-to-date 2024 Production and Costs (unaudited)
2024 - Year to date
|
Units
|
Syama
Sulphide
|
Syama
Oxide
|
Syama Total
|
Mako
|
Group
Total
|
UG
Lateral Development
|
m
|
5,068
|
-
|
5,068
|
-
|
5,068
|
UG
Vertical Development
|
m
|
40
|
-
|
40
|
-
|
40
|
Total UG
Development
|
m
|
5,107
|
-
|
5,107
|
-
|
5,107
|
UG Ore
Mined
|
t
|
2,400,714
|
-
|
2,400,714
|
-
|
2,400,714
|
UG Grade
Mined
|
g/t
|
2.56
|
-
|
2.56
|
-
|
2.56
|
OP
Operating Waste
|
BCM
|
-
|
451,158
|
451,158
|
4,400,428
|
4,851,586
|
OP Ore
Mined
|
BCM
|
-
|
3,429,330
|
3,429,330
|
1,108,690
|
4,538,020
|
OP Grade
Mined
|
g/t
|
-
|
1.58
|
1.58
|
1.80
|
1.63
|
Total Ore
Mined
|
t
|
2,400,714
|
806,036
|
3,206,750
|
3,068,215
|
6,274,965
|
Total
Tonnes Processed
|
t
|
2,404,832
|
1,522,976
|
3,927,808
|
2,228,793
|
6,156,602
|
Grade
Processed
|
g/t
|
2.64
|
1.24
|
2.10
|
1.86
|
2.01
|
Recovery
|
%
|
79
|
86
|
81
|
93
|
86
|
Gold
Recovered
|
oz
|
160,347
|
52,338
|
212,685
|
123,732
|
336,417
|
Gold in
Circuit Drawdown/(Addition)
|
oz
|
3,032
|
217
|
3,249
|
203
|
3,452
|
Gold
Produced (Poured)
|
oz
|
163,379
|
52,555
|
215,934
|
123,935
|
339,869
|
Gold
Bullion in Metal Account Movement (Increase)/Decrease
|
oz
|
(1,347)
|
-
|
(1,347)
|
(2,814)
|
(4,161)
|
Gold
Sold
|
oz
|
162,032
|
52,555
|
214,587
|
121,121
|
335,708
|
Achieved
Gold Price
|
$/oz
|
-
|
-
|
-
|
-
|
2,383
|
Cost Summary
|
|
|
|
|
|
|
Mining
|
$/oz
|
474
|
414
|
460
|
534
|
487
|
Processing
|
$/oz
|
507
|
708
|
556
|
401
|
499
|
Site
Administration
|
$/oz
|
138
|
254
|
166
|
151
|
161
|
Site
Operating Costs
|
$/oz
|
1,119
|
1,376
|
1,182
|
1,086
|
1,147
|
Royalties
|
$/oz
|
205
|
197
|
203
|
116
|
174
|
By-Product Credits + Corp Admin
|
$/oz
|
(2)
|
(2)
|
(2)
|
-
|
66
|
Total
Cash Operating Costs
|
$/oz
|
1,322
|
1,571
|
1,383
|
1,202
|
1,387
|
Sustaining Capital + Others
|
$/oz
|
104
|
162
|
118
|
30
|
87
|
Inventory
Adjustments
|
$/oz
|
(52)
|
147
|
(4)
|
12
|
2
|
All-In
Sustaining Cost (AISC)
AISC is
calculated on gold produced (poured)
|
$/oz
|
1,374
|
1,880
|
1,497
|
1,244
|
1,476
|
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 'Ore Reserves and Mineral Resource Statement'
announced on 8 March 2024 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 'December 2023 Quarterly Activities Report and 2024
Guidance' announced on
31 January 2024 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 Chris Eger,
Acting 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
|