Resolute Mining Limited shares just crashed lower

One of the worst performers on the market on Monday was the Resolute Mining Limited (ASX: RSG) share price.

It finished the day 9.5% lower at $1.05, bringing Resolute’s shares within a whisker of their 52-week low. Furthermore, this latest decline means that the gold miner’s shares have lost 45% of their value since peaking at $1.91 last year.

Last week Resolute released its quarterly update which revealed December quarterly gold production of 66,000 ounces at an all-in sustaining cost (AISC) of A$1,392 an ounce. This was a 12.5% quarter-on-quarter drop in production.

However, despite this drop and a challenging first-half, management has reiterated its FY 2018 production guidance of 300,000 ounces at an AISC of A$1,280 an ounce.

But judging by its post-quarterly result share price decline, investors haven’t been overly impressed with this update and may expect the company to fall short of its guidance.

Fellow gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) also dropped lower on Monday, potentially hinting that investors are rotating out of gold amid rising bond yields.

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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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