Resolute Mining Limited share price climbs on production update

The Resolute Mining Limited (ASX: RSG) share price has been the stand out performer amongst the gold miners during trade today.

In afternoon trade its shares are up almost 4% to $3.80.

Why have its shares climbed higher?

This morning Resolute provided the market with a production update for FY 2017 and its guidance for the year ahead.

According to today’s release, full-year gold production reached 329,834 ounces. This exceeded both its original production guidance of 300,000 ounces and upgraded guidance of 325,000 ounces.

Furthermore, this was achieved with an all-in sustaining cost of A$1,130 per ounce, which was notably better than its original guidance of A$1,280 per ounce.

The average gold price received was A$1,717 per ounce, meaning Resolute enjoyed a margin of A$587 per ounce.

Unfortunately things aren’t expected to be quite as strong in FY 2018. Management’s guidance for the year ahead is production of 300,000 ounces at an AISC of A$1,280 per ounce.

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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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