Shares of $200 million ASX-listed gold miner, Resolute Mining Limited (ASX: RSG), soared 10% today following the release of its quarterly activities report earlier in the day.
For the three months ended 31 March 2015, Resolute produced 91,792 ounces of gold at an all-in sustaining cost (AISC) of $918 per ounce, well below the December quarter AISC of $1,154/oz.
Solid production numbers and an average realised price of $1,540/oz, enabled Resolute to generate gross cash flow of $62.7 million, up from $21.7 million. Promisingly the company reaffirmed production guidance of 315,000 oz for the full year at an AISC of $1,125/oz.
It also stated the continuing Ebola threat in Africa has not affected its operations in Mali or Ghana.
At 31 March 2015 Resolute had cash, bullion and liquid assets of $24 million (including $19 million of gold bullion) and total borrowings of $125 million. Its average weighted interest rate payable on the debt at the end of the quarter was 5.8%.
"This has been a pivotal quarter with strong cashflow emerging as a result of record Syama production and significant cost reductions," Resolute CEO, Peter Sullivan said. "It has enabled us to substantially strengthen the balance sheet, which puts us in a good position for the development opportunities ahead."
Resolute and fellow ASX-listed gold miners such as Northern Star Resources Ltd (ASX: NST), EVOLUTION FPO (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) have benefitted from robust US-denominated gold prices and a weakening Australian Dollar (AUDUSD). So far Resolute shares are up 28% in 2015.
